Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2018 | Jan. 18, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | NEXTGEN HEALTHCARE, INC. | |
Trading Symbol | NXGN | |
Entity Central Index Key | 708,818 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 64,696,913 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Dec. 31, 2018 | Mar. 31, 2018 | |
Current assets: | |||
Cash and cash equivalents | $ 30,054 | $ 28,845 | |
Restricted cash and cash equivalents | 7,389 | 2,373 | |
Accounts receivable, net | 84,360 | 84,962 | |
Contract assets | 11,281 | ||
Inventory | 129 | 180 | |
Income taxes receivable | 6,061 | 8,122 | |
Prepaid expenses and other current assets | 18,505 | 17,180 | |
Total current assets | 157,779 | 141,662 | |
Equipment and improvements, net | 23,169 | 26,795 | |
Capitalized software costs, net | 33,468 | 26,318 | |
Deferred income taxes, net | 6,417 | 9,219 | |
Contract assets, net of current | 3,608 | ||
Intangibles, net | 57,911 | 74,091 | |
Goodwill | 218,771 | 218,875 | |
Other assets | 29,620 | 18,795 | |
Total assets | 530,743 | 515,755 | |
Current liabilities: | |||
Accounts payable | 3,611 | 4,213 | |
Contract liabilities | 50,449 | 54,079 | |
Accrued compensation and related benefits | 24,179 | 27,910 | |
Income taxes payable | 47 | 73 | |
Other current liabilities | 41,610 | 48,317 | |
Total current liabilities | 119,896 | 134,592 | |
Contract liabilities, net of current | 1,173 | ||
Deferred compensation | 5,564 | 6,086 | |
Line of credit | 27,000 | 37,000 | |
Other noncurrent liabilities | 12,913 | 13,494 | |
Total liabilities | 165,373 | 192,345 | |
Commitments and contingencies (Note 14) | |||
Shareholders' equity: | |||
Common stock, $0.01 par value; authorized 100,000 shares; issued and outstanding 64,704 and 63,995 shares at December 31, 2018 and March 31, 2018, respectively | 647 | 640 | |
Additional paid-in capital | 258,311 | 244,462 | |
Accumulated other comprehensive loss | (1,281) | (400) | |
Retained earnings | [1] | 107,693 | 78,708 |
Total shareholders' equity | 365,370 | 323,410 | |
Total liabilities and shareholders' equity | $ 530,743 | $ 515,755 | |
[1] | Includes cumulative effect adjustment related to the adoption of ASC 606, as defined in Note 1. See Note 1 for additional details. |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Dec. 31, 2018 | Mar. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 64,704,000 | 63,995,000 |
Common stock, shares outstanding | 64,704,000 | 63,995,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues: | ||||
Total revenues | $ 130,867 | $ 131,715 | $ 394,388 | $ 395,244 |
Cost of revenue: | ||||
Total cost of revenue | 61,671 | 61,634 | 184,640 | 179,558 |
Gross profit | 69,196 | 70,081 | 209,748 | 215,686 |
Operating expenses: | ||||
Selling, general and administrative | 41,304 | 43,563 | 120,169 | 127,517 |
Research and development costs, net | 20,682 | 20,645 | 61,181 | 60,161 |
Amortization of acquired intangible assets | 1,027 | 1,956 | 3,316 | 6,015 |
Restructuring costs | 130 | 130 | ||
Total operating expenses | 63,013 | 66,294 | 184,666 | 193,823 |
Income from operations | 6,183 | 3,787 | 25,082 | 21,863 |
Interest income | 44 | 15 | 113 | 36 |
Interest expense | (720) | (733) | (2,219) | (2,250) |
Other income (expense), net | (227) | (41) | 384 | (48) |
Income before provision for income taxes | 5,280 | 3,028 | 23,360 | 19,601 |
Provision for income taxes | 456 | 1,487 | 2,794 | 6,134 |
Net income | 4,824 | 1,541 | 20,566 | 13,467 |
Other comprehensive income: | ||||
Foreign currency translation, net of tax | 411 | 222 | (882) | 123 |
Comprehensive income | $ 5,235 | $ 1,763 | $ 19,684 | $ 13,590 |
Net income per share: | ||||
Basic | $ 0.07 | $ 0.02 | $ 0.32 | $ 0.21 |
Diluted | $ 0.07 | $ 0.02 | $ 0.32 | $ 0.21 |
Weighted-average shares outstanding: | ||||
Basic | 64,637 | 63,706 | 64,308 | 63,287 |
Diluted | 64,776 | 63,708 | 64,499 | 63,296 |
Recurring | ||||
Revenues: | ||||
Total revenues | $ 117,446 | $ 118,997 | $ 353,770 | $ 357,616 |
Cost of revenue: | ||||
Total cost of revenue | 47,997 | 49,347 | 143,322 | 145,504 |
Software, Hardware, and Other Non-recurring | ||||
Revenues: | ||||
Total revenues | 13,421 | 12,718 | 40,618 | 37,628 |
Cost of revenue: | ||||
Total cost of revenue | 6,576 | 6,323 | 20,752 | 18,310 |
Amortization of Capitalized Software Costs and Acquired Intangible Assets | ||||
Cost of revenue: | ||||
Total cost of revenue | $ 7,098 | $ 5,964 | $ 20,566 | $ 15,744 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 20,566 | $ 13,467 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 7,721 | 8,017 |
Amortization of capitalized software costs | 7,703 | 4,409 |
Amortization of other intangibles | 16,180 | 17,350 |
Amortization of debt issuance costs | 532 | 807 |
Provision for bad debts | 2,740 | 5,084 |
Provision for inventory obsolescence | 8 | 55 |
Share-based compensation | 11,949 | 8,585 |
Deferred income taxes | 22 | 3,110 |
Excess tax deficiency (benefit) from share-based compensation | (313) | 328 |
Loss on disposal of equipment and improvements | 194 | 150 |
Changes in assets and liabilities, net of amounts acquired: | ||
Accounts receivable | 242 | 960 |
Contract assets | 1,288 | |
Inventory | 43 | (51) |
Accounts payable | (783) | (2,442) |
Contract liabilities | (7,804) | (709) |
Accrued compensation and related benefits | (4,476) | (3,315) |
Income taxes | 2,595 | (1,956) |
Deferred compensation | (522) | (156) |
Other assets and liabilities | (24,606) | 1,559 |
Net cash provided by operating activities | 33,279 | 55,252 |
Cash flows from investing activities: | ||
Additions to capitalized software costs | (14,853) | (13,647) |
Additions to equipment and improvements | (4,108) | (7,606) |
Payments for acquisitions, net of cash acquired | (58,892) | |
Net cash used in investing activities | (18,961) | (80,145) |
Cash flows from financing activities: | ||
Proceeds from line of credit | 26,000 | 50,000 |
Repayments on line of credit | (36,000) | (26,000) |
Proceeds from issuance of shares under employee plans | 4,505 | 4,640 |
Payment of contingent consideration related to acquisitions | (18,817) | |
Payments for taxes related to net share settlement of equity awards | (2,598) | (767) |
Net cash provided by (used in) financing activities | (8,093) | 9,056 |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 6,225 | (15,837) |
Cash, cash equivalents, and restricted cash at beginning of period | 31,218 | 42,589 |
Cash, cash equivalents, and restricted cash at end of period | 37,443 | 26,752 |
Supplemental disclosures of cash flow information: | ||
Cash paid for income taxes | 966 | 5,786 |
Cash refunds from income taxes | 442 | 1,084 |
Cash paid for interest | 1,385 | 1,388 |
Non-cash investing and financing activities: | ||
Unpaid additions to equipment and improvements | $ 181 | $ 138 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Principles of Consolidation. On September 6, 2018, Quality Systems, Inc. changed its corporate name to NextGen Healthcare, Inc. The consolidated financial statements include the accounts of NextGen Healthcare, Inc. and its wholly-owned subsidiaries (collectively, the “Company”). Each of the terms “we,” “us,” or “our” as used herein refers collectively to the Company, unless otherwise stated. All intercompany accounts and transactions have been eliminated. Basis of Presentation. The accompanying unaudited condensed consolidated financial statements as of December 31, 2018 and for the three and nine months ended December 31, 2018 have been prepared in accordance with the requirements of Quarterly Report on Form 10-Q and Article 10 of the Securities and Exchange Commission Regulation S-X and therefore do not include all information and notes which would be presented were such consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These consolidated financial statements should be read in conjunction with the audited consolidated financial statements presented in our Annual Report on Form 10-K for the fiscal year ended March 31, 2018. In the opinion of management, the accompanying consolidated financial statements reflect all adjustments which are necessary for a fair statement of the results of operations and cash flows for the periods presented. The results of operations for such interim periods are not necessarily indicative of results of operations to be expected for the full year. Effective April 1, 2018, we changed the presentation of our consolidated statements of comprehensive income to present revenue and cost of revenue under separate ‘recurring’ captions and ‘software, hardware, and other non-recurring’ captions. Recurring consists of revenue and related cost of revenue for subscription services, support and maintenance, managed services, and electronic data interchange and data services. Software, hardware, and other non-recurring consists of revenue and related cost of revenue, for software licenses, hardware, and other non-recurring services, such as implementation, training, and consulting services. Cost of revenue within recurring and software, hardware, and other non-recurring are reported exclusive of the amortization of capitalized software costs and acquired intangible assets. Amortization of capitalized software costs and acquired intangible assets are now reported in a separate cost of revenue caption. Prior period amounts have been reclassified to conform to current year presentation. Also effective April 1, 2018, prior period amounts previously presented as deferred revenue are now presented as contract liabilities. Prior period balances have not changed. References to amounts in the consolidated financial statement sections are in thousands, except shares and per share data, unless otherwise specified. Significant Accounting Policies . We adopted Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers: Topic 606 , effective on April 1, 2018 using the modified retrospective method (see Note 2). There have been no other material changes to our significant accounting policies from those disclosed in our Annual Report on Form 10-K for the fiscal year ended March 31, 2018. Share-Based Compensation. The following table summarizes total share-based compensation expense included in the consolidated statements of comprehensive income for the three and nine months ended December 31, 2018 and 2017: Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Costs and expenses: Cost of revenue $ 358 $ 259 $ 939 $ 686 Research and development costs 860 557 2,196 1,431 Selling, general and administrative 3,480 2,637 8,814 6,468 Total share-based compensation 4,698 3,453 11,949 8,585 Income tax benefit (1,180 ) (1,080 ) (2,949 ) (2,940 ) Decrease in net income $ 3,518 $ 2,373 $ 9,000 $ 5,645 Recently adopted accounting pronouncements. Recently adopted accounting pronouncements are discussed below or in the notes, where applicable. In March 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-05, Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 In May 2017, FASB issued Accounting Standards Update (“ASU”) 2017-09, Compensation–Stock Compensation (Topic 718): Scope of Modification Accounting In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments. Revenue from Contracts with Customers: Topic 606 Revenue Recognition Recent Accounting Standards Not Yet Adopted. Recent accounting pronouncements requiring implementation in current or future periods are discussed below or in the notes, where applicable. In August 2018, the FASB issued ASU 2018-15, Intangibles–Goodwill and Other–Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework–Changes to the Disclosure Requirements for Fair Value Measurement Fair Value Measurement In January 2017, the FASB issued ASU 2017-04, Intangibles–Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) We expect to implement the new lease guidance, including all related updates, when it becomes effective for us on April 1, 2019 using the cumulative-effect adjustment transition method, which is the additional transition method described within ASU 2018-11, Leases (Topic 842): Targeted Improvements We do not believe that any other recently issued, but not yet effective accounting standards, if adopted, would have a material impact on our consolidated financial statements. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contract with Customer | 2. Revenue from Contracts with Customers Adoption of ASC 606 In May 2014, the FASB issued ASC 606, which supersedes the revenue recognition requirements in and requires entities to recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The new guidance provides a five-step process for determining the amount and timing of revenue recognition and establishes disclosure requirements to enable users of the financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows from contracts with customers. It also provides guidance on the accounting treatment for the incremental costs of obtaining a contract that would not have been incurred had the contract not been obtained. We adopted ASC 606 and all related amendments as of April 1, 2018 using the modified retrospective method for all contracts not completed as of the date of adoption. Results for reporting periods beginning after April 1, 2018 are presented under ASC 606, while prior period comparative information has not been adjusted and continues to be reported under the accounting standards in effect for those prior periods. We have also implemented changes to our processes, policies, and internal controls over financial reporting to address the impacts of the new revenue recognition standard on our consolidated financial statements and related disclosures. The adjustments to reflect the cumulative effect of the changes to the balances of our previously reported consolidated balance sheet as of March 31, 2018 for the adoption of ASC 606 are summarized as follows: As Reported ASC 606 Transition Adjusted March 31, 2018 Adjustments April 1, 2018 ASSETS Accounts receivable, net $ 84,962 $ 2,380 $ 87,342 Contract assets — 13,446 13,446 Prepaid expenses and other current assets 17,180 (223 ) 16,957 Deferred income taxes, net 9,219 (2,884 ) 6,335 Contract assets, net of current — 2,731 2,731 Other assets 18,795 6,679 25,474 LIABILITIES Contract liabilities 54,079 4,174 58,253 Accrued compensation and related benefits 27,910 745 28,655 Other current liabilities 48,317 9,964 58,281 Contract liabilities, net of current 1,173 (1,173 ) — SHAREHOLDERS' EQUITY Retained earnings 78,708 8,419 87,127 We recorded a net increase to retained earnings of $8,419 as of April 1, 2018 due to the cumulative impact of adopting ASC 606, with the impact primarily related to (i) revenue cycle management (“RCM”) and related services revenue whereby revenue recognition may be accelerated under ASC 606 for software, subscriptions, support and maintenance, and professional services included with RCM arrangements as the timing of revenue recognition is based upon the transfer of value of the promised goods or services to our clients, which may occur prior to the time that client collections occur, (ii) the amortization of capitalized direct sales commissions costs over a longer period of time under ASC 606, and (iii) the income tax impact of the cumulative transition adjustment. Further, we recorded reclassifications to present certain unbilled amounts as contract assets and sales returns reserves and certain customer liabilities as other current liabilities, which were both previously recorded within accounts receivables on our consolidated balance sheets We applied the practical expedient permitting the recognition of revenue in the amount to which the entity has a right to invoice based on the actual usage by the customers for our electronic data interchange The adoption of ASC 606 had no transition impact on cash provided by or used in operating, financing or investing activities reported in our consolidated statement of cash flows. The impact of the adoption of ASC 606 on our consolidated balance sheet and consolidated statements of net income and comprehensive income December 31, 2018 As reported under Adjustments due to As disclosed under ASC 606 adoption of ASC 606 ASC 605 ASSETS Accounts receivable, net $ 84,360 $ 1,298 $ 85,658 Contract assets 11,281 (11,281 ) — Income taxes receivable 6,061 1,550 7,611 Prepaid expenses and other current assets 18,505 (2,935 ) 15,570 Deferred income taxes, net 6,417 2,884 9,301 Contract assets, net of current 3,608 (3,608 ) — Other assets 29,620 (6,808 ) 22,812 LIABILITIES Contract liabilities 50,449 235 50,684 Accrued compensation and related benefits 24,179 300 24,479 Other current liabilities 41,610 (7,777 ) 33,833 Contract liabilities, net of current — 910 910 SHAREHOLDERS' EQUITY Retained earnings 107,693 (12,568 ) 95,125 Three Months Ended December 31, 2018 As reported under Adjustments due to As disclosed under ASC 606 adoption of ASC 606 ASC 605 Revenues: Recurring $ 117,446 $ (557 ) $ 116,889 Software, hardware, and other non-recurring 13,421 33 13,454 Total revenue 130,867 (524 ) 130,343 Total cost of revenue 61,671 36 61,707 Gross profit 69,196 (560 ) 68,636 Operating expenses: Selling, general and administrative 41,304 1,050 42,354 Research and development costs, net 20,682 — 20,682 Amortization of acquired intangibles 1,027 — 1,027 Total operating expenses 63,013 1,050 64,063 Income from operations 6,183 (1,610 ) 4,573 Interest and other income, net (903 ) — (903 ) Income before provision for income taxes 5,280 (1,610 ) 3,670 Provision for income taxes 456 (553 ) (97 ) Net income $ 4,824 $ (1,057 ) $ 3,767 Nine Months Ended December 31, 2018 As reported under Adjustments due to As disclosed under ASC 606 adoption of ASC 606 ASC 605 Revenues: Recurring $ 353,770 $ (663 ) $ 353,107 Software, hardware, and other non-recurring 40,618 (704 ) 39,914 Total revenue 394,388 (1,367 ) 393,021 Total cost of revenue 184,640 130 184,770 Gross profit 209,748 (1,497 ) 208,251 Operating expenses: Selling, general and administrative 120,169 4,202 124,371 Research and development costs, net 61,181 — 61,181 Amortization of acquired intangibles 3,316 — 3,316 Total operating expenses 184,666 4,202 188,868 Income from operations 25,082 (5,699 ) 19,383 Interest and other income, net (1,722 ) — (1,722 ) Income before provision for income taxes 23,360 (5,699 ) 17,661 Provision for income taxes 2,794 (1,550 ) 1,244 Net income $ 20,566 $ (4,149 ) $ 16,417 As of December 31, 2018, the reported balances include the cumulative effect adjustments of adopting ASC 606. Revenue Recognition and Performance Obligations We generate revenue from sales of licensing rights and subscriptions to our software solutions, hardware and third-party software products, support and maintenance, managed services (formerly referred to as revenue cycle management and related services), EDI, and other non-recurring services, including implementation, training, and consulting services. Our contracts with customers may include multiple performance obligations that consist of various combinations of our software solutions and related services, which are generally capable of being distinct and accounted for as separate performance obligations. The total transaction price is allocated to each performance obligation within an arrangement based on estimated standalone selling prices. Revenue is recognized when control of the promised goods or services is transferred to our customers in an amount that reflects the consideration that we expect to be entitled to in exchange for those goods or services. We expect that the new revenue guidance in ASC 606 will result in additional complexity to our revenue recognition, including the use of an increased amount of significant judgments and estimates, particularly as it relates to our RCM services revenue. We exclude sales tax from the measurement of the transaction price and The following table presents our revenues disaggregated by our major revenue categories and by occurrence: Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Recurring revenues: Subscription services $ 30,035 $ 26,596 $ 87,618 $ 78,959 Support and maintenance 39,714 40,362 120,556 123,171 Managed services 24,251 28,903 74,048 86,040 Electronic data interchange and data services 23,446 23,136 71,548 69,446 Total recurring revenues 117,446 118,997 353,770 357,616 Software, hardware, and other non-recurring revenues: Software license and hardware 9,217 7,759 26,013 24,032 Other non-recurring services 4,204 4,959 14,605 13,596 Total software, hardware and other non-recurring revenues 13,421 12,718 40,618 37,628 Total revenues $ 130,867 $ 131,715 $ 394,388 $ 395,244 Recurring revenues consists of subscription services, support and maintenance, managed services, and EDI and data services. Software, hardware, and other non-recurring consists of revenue from sales of software license and hardware and certain non-recurring services, such as implementation, training, and consulting performed for clients who use our products. Generally, we recognize revenue under ASC 606 for our most significant performance obligations as follows: Subscription services. Performance obligations involving subscription services, which include annual licenses, are satisfied over time as the customer simultaneously receives and consumes the benefits of the services throughout the contract period. We recognize revenue related to these services ratably over the respective noncancelable contract term. Support and maintenance. Performance obligations involving support and maintenance are satisfied over time as the customer simultaneously receives and consumes the benefits of the maintenance services provided. Our support and maintenance services may consist of separate performance obligations, such as unspecified upgrades or enhancements and technical support, which are considered stand-ready in nature and can be offered at various points during the service period. Since the efforts associated with the combined support and maintenance services are rendered concurrently and provided evenly throughout the service period, we consider the series of support and maintenance services to be a single performance obligation. Therefore, we recognize revenue related to these services ratably over the respective noncancelable contract term. Managed services. Managed services consist primarily of RCM and related services, but also includes transcription services and certain other recurring services. Performance obligations associated with RCM services are satisfied over time as the customer simultaneously receives and consumes the benefits of the services executed throughout the contract period. The majority of service fees under our RCM arrangements are variable consideration contingent upon collections by our clients. We estimate the variable consideration which we expect to be entitled to over the noncancelable contract term associated with our RCM service arrangements. The estimate of variable consideration included in the transaction price typically involves estimating the amounts we will ultimately collect on behalf of our clients and the relative fee we charge that is generally calculated as a percentage of those collections. Inputs to these estimates include, but are not limited to, historical service fees and collections amounts, timing of historical collections relative to the timing of when claims are submitted by our clients to their respective payers, macroeconomic trends, and anticipated changes in the number of providers. Significant judgement is required when estimating the total transaction price based on the variable consideration. We may apply certain constraints, when appropriate and permitted under ASC 606, to our estimates around our variable consideration in order to ensure that our estimates do not pose a risk of significantly misstating our revenue in any reporting period. RCM and related services may not be rendered evenly over the contract period as the timing of services are based on customer collections, which may vary throughout the service period. We recognize revenue for RCM based on the amount of collections received throughout the contract term as it most closely depicts our efforts to transfer our service obligations to the customer. Performance obligations related to the transcription services and other recurring services are generally satisfied as the corresponding services are provided and revenue is recognized as such services are rendered. Electronic data interchange and data services. Performance obligations related to EDI and other transaction processing services are satisfied at the point in time the services are rendered. The transfer of control occurs when the transaction processing services are delivered and the customer receives the benefits from the services provided. Software license and hardware. Software license and hardware are considered point-in-time performance obligations as control is transferred to customers upon the delivery of the software license and hardware. Our software licenses are considered functional licenses, and revenue recognition generally occurs on the date of contract execution as the customer is provided with immediate access to the license. We generally determine the amount of consideration allocated to the software license performance obligation using the residual approach, except for certain RCM arrangements where the amount allocated to the software license performance obligation is determined based on estimated relative standalone selling prices. For hardware, we recognize revenue upon transfer of such hardware or devices to the customer. Other non-recurring services. Performance obligations related to other non-recurring services, including implementation, training, and consulting services, are generally satisfied as the corresponding services are provided. Once the services have been provided to the customer, the transfer of control has occurred. Therefore, we recognize revenue as such services are rendered. Transaction Price Allocated to Remaining Performance Obligations As of December 31, 2018, the aggregate amount of transaction price related to remaining unsatisfied or partially unsatisfied performance obligations over the respective noncancelable contract term was approximately $456,000, of which we expect to recognize approximately 9% as services are rendered or goods are delivered , 4 Contract Balances Contract balances result from the timing differences between our revenue recognition, invoicing, and cash collections. Such contract balances include accounts receivables, contract assets and liabilities, and other customer deposits and liabilities balances. Accounts receivable includes invoiced amounts where the right to receive payment is unconditional and only subject to the passage of time. Contract assets include amounts where revenue recognized exceeds the amount invoiced to the customer and the right to payment is not solely subject to the passage of time. Contract assets are generally associated with our sales of software licenses, but may also be associated with other performance obligations such as subscription services, support and maintenance, annual licenses, and professional services, where control has been transferred to our customers but the associated payments are based on future customer collections (in the case of our RCM service arrangements) or based on future milestone payment due dates. In such instances, the revenue recognized may exceed the amount invoiced to the customer and such balances are included in contract assets since our right to receive payment is not unconditional, but rather is conditional upon customer collections or the continued functionality of the software and our ongoing support and maintenance obligations. Contract liabilities consist mainly of fees invoiced or paid by our clients for which the associated services have not been performed and revenues have not been recognized. Contract assets and contract liabilities are reported in a net position on an individual contract basis at the end of each reporting period. Contract assets are classified as current or long-term on our consolidated balance sheets based on the timing of when we expect to complete the related performance obligations and invoice the customer. Contract liabilities are classified as current on our consolidated balance sheets since the revenue recognition associated to the related customer payments and invoicing is expected to occur within the next 12 months. Our contracts with customers do not include any major financing components. Costs to Obtain or Fulfill a Contract ASC 606 requires the capitalization of all incremental costs of obtaining a contract with a customer to the extent that such costs are directly related to a contract and expected to be recoverable. Our sales commissions and related sales incentives are considered incremental costs requiring capitalization. Capitalized contract costs are amortized to expense utilizing a method that is consistent with the transfer of the related goods or services to the customer. The amortization period ranges from less than one year up to eight years, based on the period over which the related goods and services are transferred, including consideration of the expected customer renewals and the related useful lives of the products. Capitalized commissions costs were $15,753 as of December 31, 2018, of which $3,770 is current and included as prepaid expenses and other current assets and $11,983 is long-term and included within other assets on our consolidated balance sheets, based on the expected timing of expense recognition. During the three months and nine months ended December 31, 2018, we recognized $1,414 and $4,278, respectively, of commissions expense primarily related to the amortization of capitalized commissions costs, which is included as a selling, general and administrative expense in the consolidated statement of comprehensive income. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements The following tables set forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis at December 31, 2018 and March 31, 2018: Balance At Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Unobservable Inputs December 31, 2018 (Level 1) (Level 2) (Level 3) ASSETS Cash and cash equivalents (1) $ 30,054 $ 30,054 $ — $ — Restricted cash and cash equivalents 7,389 7,389 — — $ 37,443 $ 37,443 $ — $ — Balance At Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Unobservable Inputs March 31, 2018 (Level 1) (Level 2) (Level 3) ASSETS Cash and cash equivalents (1) $ 28,845 $ 28,845 $ — $ — Restricted cash and cash equivalents 2,373 2,373 — — $ 31,218 $ 31,218 $ — $ — (1) Cash equivalents consist primarily of money market funds. We believe that the fair value of other financial assets and liabilities, including accounts receivable, accounts payable, and line of credit, approximate their respective carrying values due to their nominal credit risk. Non-Recurring Fair Value Measurements We have certain assets, including goodwill and other intangible assets, which are measured at fair value on a non-recurring basis and are adjusted to fair value only if an impairment charge is recognized. The categorization of the framework used to measure fair value of the assets is considered to be within the Level 3 valuation hierarchy due to the subjective nature of the unobservable inputs used. |
Business Combinations
Business Combinations | 9 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Business Combinations | 4. Business Combinations On January 31, 2018, we completed the acquisition of Inforth Technologies, LLC ("Inforth") pursuant to the Membership Interest Purchase Agreement, dated January 31, 2018. Headquartered in Traverse City, MI, Inforth was one of our premier clinical content and technical services partners specializing in comprehensive solutions for physician practices. The purchase price of Inforth totaled $4,337 and was funded by cash flows from operations. The purchase price allocation of the Inforth acquisition is considered final. On August 16, 2017, we completed the acquisition of EagleDream Health, Inc. ("EagleDream") pursuant to the Agreement and Plan of Merger (the “Merger Agreement"), dated July 31, 2017. Headquartered in Rochester, NY, EagleDream is a cloud-based analytics company that drives meaningful insight across clinical, financial and administrative data to optimize practice performance. The purchase price totaled $25,609, which included certain working capital and other customary adjustments. The acquisition was partially funded by a draw against our revolving credit agreement (see Note 8). The purchase price allocation of the EagleDream acquisition is considered final. On April 14, 2017, we completed our acquisition of Entrada, Inc. ("Entrada") pursuant to the terms of the Agreement and Plan of Merger, dated April 11, 2017 (the "Agreement"). Based in Nashville, TN, Entrada is a leading provider of cloud-based solutions that are reshaping the way care is delivered by leveraging the power of mobile whenever and wherever care happens. Entrada’s best-in-class mobile application integrates with multiple clinical platforms and all major electronic health record systems. Entrada enables organizations to maximize their existing technology investments while simultaneously enhancing physician and staff productivity. The acquisition of Entrada and its cloud-based, mobile application is part of our commitment to deliver systematic solutions that meet its clients' transforming work requirements to become increasingly nimble and mobile. The purchase price totaled $33,958, which included working capital and other customary adjustments. The acquisition was primarily funded by a draw against our revolving credit agreement (see Note 8). The purchase price allocation of the Entrada acquisition is considered final. We accounted for the acquisitions noted above as purchase business combinations using the acquisition method of accounting. The purchase price allocated to the tangible and intangible assets acquired and liabilities assumed is based on their estimated fair values as of the acquisition date. Goodwill represents the excess of the purchase price over the net identifiable assets acquired and liabilities assumed. Goodwill primarily represents, among other factors, the value of synergies expected to be realized and the assemblage of all assets that enable us to create new client relationships, neither of which qualify as separate amortizable intangible assets. Goodwill arising from the acquisition of Inforth is considered deductible for tax purposes, and goodwill arising from the acquisitions of EagleDream and Entrada are not deductible for tax purposes. The final purchase price for the acquisitions of Inforth, EagleDream and Entrada are summarized as follows: Inforth EagleDream Entrada Purchase Price Purchase Price Purchase Price Initial purchase price $ 4,000 $ 26,000 $ 34,000 Settlement of pre-existing net liabilities 337 — — Working capital and other adjustments — (391 ) (42 ) Total purchase price $ 4,337 $ 25,609 $ 33,958 Fair value of the net tangible assets acquired and liabilities assumed: Acquired cash and cash equivalents $ 25 $ 573 $ 102 Accounts receivable 6 217 1,836 Prepaid expense and other current assets — 20 145 Equipment and improvements — — 163 Capitalized software costs — — 364 Deferred income tax asset — — 117 Accounts payable — (115 ) (639 ) Accrued compensation and related benefits (49 ) (691 ) (120 ) Deferred revenues — (394 ) (234 ) Deferred income tax liability — (1,707 ) — Other liabilities (22 ) (122 ) (444 ) Total net tangible assets acquired and liabilities assumed (40 ) (2,219 ) 1,290 Fair value of identifiable intangible assets acquired: Goodwill 1,177 14,428 17,268 Software technology 3,200 12,800 10,500 Customer relationships — 600 3,300 Trade name — — 1,600 Total identifiable intangible assets acquired 4,377 27,828 32,668 Total purchase price $ 4,337 $ 25,609 $ 33,958 We recorded $3,200 of Inforth intangible assets related to software technology, which is being amortized over 5 years. We recorded $13,400 of EagleDream intangible assets related to customer relationships and software technology, which are being amortized over 8 years and 5 years, respectively. The weighted average amortization period for the acquired EagleDream intangible assets is 5.1 years. We recorded $15,400 of Entrada intangible assets related to customer relationships, trade names, and software technology, which are being amortized over 10 years, 5 years, and 5 years, respectively. The weighted average amortization period for the acquired Entrada intangible assets is 6.1 years. The revenues, earnings, and pro forma effects of the Inforth, EagleDream, and Entrada acquisitions would not have been material to our results of operations, individually and in aggregate, and are therefore not presented. |
Goodwill
Goodwill | 9 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | 5. Goodwill We test goodwill for impairment annually during our first fiscal quarter, referred to as the annual test date. We will also test for impairment between annual test dates if an event occurs or circumstances change that would indicate the carrying amount may be impaired. We have not identified any events or circumstances as of December 31, 2018 that would require an interim goodwill impairment test. We do not amortize goodwill as it has been determined to have an indefinite useful life. The carrying amount of goodwill as of December 31, 2018 was $218,771, which reflects the acquisitions of Entrada, EagleDream and Inforth (see Note 4). The carrying amount of goodwill as of March 31, 2018 was $218,875. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 6. Intangible Assets Our definite-lived intangible assets, other than capitalized software development costs, are summarized as follows, and reflects the acquisitions of Entrada, EagleDream and Inforth (see Note 4): December 31, 2018 Customer Software Relationships Technology Total Gross carrying amount $ 54,450 $ 94,310 $ 148,760 Accumulated amortization (38,847 ) (52,002 ) (90,849 ) Net intangible assets $ 15,603 $ 42,308 $ 57,911 March 31, 2018 Customer Software Relationships Technology Total Gross carrying amount $ 54,450 $ 94,310 $ 148,760 Accumulated amortization (35,531 ) (39,138 ) (74,669 ) Net intangible assets $ 18,919 $ 55,172 $ 74,091 Amortization expense related to customer relationships and contracts recorded as operating expenses in the consolidated statements of comprehensive income was $1,028 and $1,956 for the three months ended December 31, 2018 and 2017, respectively. Amortization expense related to software technology recorded as cost of revenue was $4,288 and $4,127 for the three months ended December 31, 2018 and 2017, respectively. Amortization expense related to customer relationships and contracts recorded as operating expenses in the consolidated statements of comprehensive income was $3,317 and $6,015 for the nine months ended December 31, 2018 and 2017, respectively. Amortization expense related to software technology recorded as cost of revenue was $12,863 and $11,335 for the nine months ended December 31, 2018 and 2017, respectively. The following table summarizes the remaining estimated amortization of definite-lived intangible assets as of December 31, 2018: Estimated Remaining Amortization Expense Operating Expense Cost of Revenue Total For the year ended March 31, 2019 (remaining three months) $ 1,028 $ 4,288 $ 5,316 2020 3,460 17,151 20,611 2021 2,803 13,268 16,071 2022 2,273 5,480 7,753 2023 1,866 1,761 3,627 2024 and beyond 4,173 360 4,533 Total $ 15,603 $ 42,308 $ 57,911 |
Capitalized Software Costs
Capitalized Software Costs | 9 Months Ended |
Dec. 31, 2018 | |
Research And Development [Abstract] | |
Capitalized Software Costs | 7. Capitalized Software Costs Our capitalized software costs are summarized as follows: December 31, 2018 March 31, 2018 Gross carrying amount $ 51,760 $ 50,361 Accumulated amortization (18,292 ) (24,043 ) Net capitalized software costs $ 33,468 $ 26,318 During the nine months ended December 31, 2018, we retired $13,453 of fully amortized capitalized software costs that are no longer being utilized by our client base. Amortization expense related to capitalized software costs was $2,811 and $1,838 for the three months ended December 31, 2018 and 2017, respectively, and is recorded as cost of revenue in the consolidated statements of comprehensive income. Amortization expense related to capitalized software costs was $7,703 and $4,409 for the nine months ended December 31, 2018 and 2017, respectively. The following table presents the remaining estimated amortization of capitalized software costs as of December 31, 2018. The estimated amortization is comprised of (i) amortization of released products and (ii) the expected amortization for products that are not yet available for sale based on their estimated economic lives and projected general release dates. For the year ended March 31, 2019 (remaining three months) $ 4,900 2020 15,400 2021 8,800 2022 4,368 Total $ 33,468 |
Line of Credit
Line of Credit | 9 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Line of Credit | 8. Line of Credit On March 29, 2018, we entered into a $300,000 amended and restated revolving credit agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A., as administrative agent, U.S. Bank National Association, as syndication agent, and certain other agents and lenders. The Credit Agreement replaces our prior . also includes a $100,000 accordion feature that provides us with the ability to obtain up to $400,000 in the aggregate of revolving credit commitments and/or term loans upon satisfaction of certain conditions. The Credit Agreement matures on March 29, 2023 and the full balance of the revolving loans and all other obligations under the agreement must be paid at that time. In addition, we are required to prepay the revolving loan balance if at any time the aggregate principal amount outstanding under the Credit Agreement exceeds the aggregate commitments thereunder. The Credit Agreement is secured by substantially all of our existing and future property. The revolving loans under the Credit Agreement will be available for letters of credit, permitted acquisitions, working capital and general corporate purposes. As of December 31, 2018, we had $27,000 in outstanding loans and $273,000 of unused credit under the Credit Agreement. As of March 31, 2018, we had $37,000 in outstanding loans under the Credit Agreement. Interest expense related to the Credit Agreement was $516 and $463 for the three months ended December 31, 2018 and 2017, respectively. Amortization of deferred debt issuance costs was $177 and $269 for the three months ended December 31, 2018 and 2017, respectively. Interest expense related to the Credit Agreement was $1,657 and $1,390 for the nine months ended December 31, 2018 and 2017, respectively. Amortization of deferred debt issuance costs was $532 and $807 for the nine months ended December 31, 2018 and 2017, respectively. |
Composition of Certain Financia
Composition of Certain Financial Statement Captions | 9 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Composition of Certain Financial Statement Captions | 9. Composition of Certain Financial Statement Captions Subsequent to the adoption of ASC 606 as of April 1, 2018, accounts receivable includes billed amounts where the right to receive payment is unconditional and only subject to the passage of time, and sales return reserves are now classified as other current liabilities on our consolidated balance sheets. As of March 31, 2018, accounts receivable may include amounts invoiced for undelivered products and services at each period end. Undelivered products and services are included as a component of the contract liabilities balance on the accompanying consolidated balance sheets. December 31, 2018 March 31, 2018 Accounts receivable, gross $ 88,934 $ 94,358 Sales return reserve — (5,520 ) Allowance for doubtful accounts (4,574 ) (3,876 ) Accounts receivable, net $ 84,360 $ 84,962 Inventory is comprised of computer systems and components. Prepaid expenses and other current assets are summarized as follows: December 31, 2018 March 31, 2018 Prepaid expenses $ 13,603 $ 13,865 Capitalized commissions costs 3,770 2,828 Other current assets 1,132 487 Prepaid expenses and other current assets $ 18,505 $ 17,180 Equipment and improvements are summarized as follows: December 31, 2018 March 31, 2018 Computer equipment $ 28,205 $ 27,347 Internal-use software 17,136 15,804 Furniture and fixtures 10,966 11,432 Leasehold improvements 15,725 16,016 Equipment and improvements, gross 72,032 70,599 Accumulated depreciation and amortization (48,863 ) (43,804 ) Equipment and improvements, net $ 23,169 $ 26,795 Other assets are summarized as follows: December 31, 2018 March 31, 2018 Capitalized commission costs $ 11,983 $ 1,394 Deposits 5,594 4,666 Debt issuance costs 3,011 3,544 Other noncurrent assets 9,032 9,191 Other assets $ 29,620 $ 18,795 Accrued compensation and related benefits are summarized as follows: December 31, 2018 March 31, 2018 Payroll, bonus and commission $ 15,203 $ 18,120 Vacation 8,976 9,790 Accrued compensation and related benefits $ 24,179 $ 27,910 Other current and noncurrent liabilities are summarized as follows: December 31, 2018 March 31, 2018 Sales returns reserves and other customer liabilities (1) $ 7,777 $ — Care services liabilities 7,389 2,373 Customer credit balances and deposits 3,879 4,287 Accrued hosting costs 3,775 1,600 Accrued employee benefits and withholdings 2,777 1,636 Accrued self insurance expense 2,416 2,145 Accrued consulting and outside services 2,278 4,428 Accrued EDI expense 1,982 2,310 Accrued outsourcing costs 1,759 2,898 Deferred rent 1,389 1,594 Accrued royalties 917 1,400 Sales tax payable 539 499 Remaining lease obligations 524 672 Accrued legal expense 293 1,793 Accrued securities litigation settlement — 19,000 Other accrued expenses 3,916 1,682 Other current liabilities $ 41,610 $ 48,317 Deferred rent $ 9,427 $ 9,902 Uncertain tax positions 2,690 2,419 Remaining lease obligations 607 962 Other liabilities 189 211 Other noncurrent liabilities $ 12,913 $ 13,494 (1) Subsequent to the adoption of ASC 606 as of April 1, 2018, sales return reserves and certain customer liabilities, which were previously recorded within accounts receivable, are now classified as other current liabilities on our consolidated balance sheets. |
Income Taxes
Income Taxes | 9 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The provision for income taxes in the three months ended December 31, 2018 and 2017 was $456 and $1,487, respectively. The effective tax rates were 8.6% and 49.1% for the three months ended December 31, 2018 and 2017, respectively. The decrease in the effective tax rate for the three months ended December 31, 2018 compared to the prior year periods was primarily due to the reduction of the federal corporate tax rate from 35% to 21% effective January 1, 2018, enacted by new tax reform legislation, as described further below. The decrease in the effective tax rate was also due to an increased benefit from research and development credits and increased net benefits from discrete items and SAB 118 tax reform adjustments, partially offset by the elimination of the domestic manufacturer deduction, effective April 1, 2018. The provision for income taxes in the nine months ended December 31, 2018 and 2017 was $2,794 and $6,134, respectively. The effective tax rates were 12.0% and 31.3% for the nine months ended December 31, 2018 and 2017, respectively. The decrease in the effective tax rate for the nine months ended December 31, 2018 compared to the prior year periods was primarily due to reduction of the federal corporate tax rate from 35% to 21% effective January 1, 2018, and other changes enacted by new tax reform legislation, including an increased net benefit from discrete items and SAB 118 tax reform adjustments, partially offset by the elimination of the domestic manufacturer deduction, effective April 1, 2018. The deferred tax assets and liabilities are presented net in the accompanying consolidated balance sheets as noncurrent. We expect to receive the full benefit of the deferred tax assets recorded, with the exception of certain state credits, and state net operating loss carryforwards, for which we have recorded a valuation allowance. Uncertain tax positions We had liabilities of $2,690 and $2,419 for unrecognized tax benefits related to various federal, state and local income tax matters as of December 31, 2018 and March 31, 2018, respectively. If recognized, this amount would reduce our effective tax rate. We are no longer subject to United States federal income tax examinations for tax years before fiscal year ended 2014. With a few exceptions, we are no longer subject to state or local income tax examinations for tax years before fiscal year ended 2014. We do not anticipate the total unrecognized tax benefits to significantly change due to the settlement of audits or the expiration of statute of limitations within the next twelve months. United States Tax Reform On December 22, 2017, the President of the United States signed and enacted into law H.R. 1 (the “Tax Reform”). This new tax legislation, effective for tax years beginning on or after January 1, 2018, except for certain provisions, resulted in significant changes to existing United States tax law, including various provisions, such as • Establishes a flat corporate income tax rate of 21% on United States earnings • Imposes a one-time tax on unremitted cumulative non- United States earnings of foreign subsidiaries (“Transition Tax”) • Imposes a new minimum tax on certain non- United States earnings, irrespective of the territorial system of taxation, and generally allows for the repatriation of future earnings of foreign subsidiaries without incurring additional United States taxes by transitioning to a territorial system of taxation (Global Intangible Low-Taxed Income or “GILTI Tax”) • Subjects certain payments made by a United States company to a related foreign company to certain minimum taxes and related US deduction of foreign activities (Base Erosion Anti-Abuse Tax, or “BEAT” and Foreign Derived Intangible Income Deduction or “FDII”) • Eliminates certain prior tax incentives for manufacturing in the United States and creates an incentive for United States companies to sell, lease or license goods and services abroad by allowing for a reduction in taxes owed on earnings related to such sales • Allows the cost of investments in certain depreciable assets acquired and placed in service after September 27, 2017 to be immediately expensed • Reduces deductions with respect to certain compensation paid to specified executive officers We are subject to the provisions of FASB Accounting Standards Codification 740-10, Income Taxes The Tax Reform also required a one-time Transition Tax based on total post-1986 foreign cumulative earnings and profits previously deferred from United States federal taxation, which was reasonably estimated and recorded as a one-time income tax expense of $1,381 at March 31, 2018. During the three months ended December 31, 2018, we completed our accounting analysis of the cumulative foreign earnings and transitional tax liability under the Tax Reform. The three months ended December 31, 2018 included a net reduction of $793 to the provisional transition tax amounts previously reported under SAB 118. The net reduction of Transition Tax was due primarily to the utilization of additional foreign tax credits. We filed our corporate tax returns during the quarter and utilized available net operating losses to fully offset the Transition Tax. Due to the complexities involved in accounting for the enactment of the Tax Reform, SAB 118 allowed us to record provisional amounts in earnings for the year ended March 31, 2018 and nine months ended December 31, 2018. SAB 118 provides that where reasonable estimates can be made, the provisional accounting should be based on such estimates and when no reasonable estimate can be made, the provisional accounting may be based on the tax law in effect before the Tax Reform. SAB 118 allowed a measurement period of up to one year from the enactment date to identify Tax Reform impacts. During the three months ended December 31, 2018, we completed our analysis of the Tax Reform on our consolidated financial statements and recorded a net tax benefit in the December 31, 2018 tax provision. Additionally, our United States tax returns for the period ended March 31, 2018 were filed in December 2018 and any changes to the tax positions for temporary differences compared to the estimates used resulted in an adjustment of the estimated tax expense recorded as of March 31, 2018. As a result, our accounting for the final income tax effects of the Tax Reform has been finalized and the measurement period under SAB 118 ended during the three months ended December 31, 2018. Despite the completion of our accounting for the Tax Reform under SAB 118, many aspects of the law remain unclear and we expect ongoing guidance to be issued at both the federal and state levels. We will continue to monitor and assess the impact of any new developments. The Tax Reform also includes a GILTI Tax, requiring inclusion of certain non-United States earnings effective April 1, 2018. The GILTI inclusion has been estimated and included in the effective tax rate used for the tax provision recorded at December 31, 2018. There are substantial uncertainties in the interpretations of GILTI and other related new tax reform, BEAT and FDII, we will continue to evaluate the impact of the GILTI provisions under the Tax Reform which are complex and subject to continuing regulatory interpretation by the United States Internal Revenue Service. We are required to make an accounting policy election of either (1) treating taxes due on future United States inclusions in taxable income related to GILTI as a current period expense when incurred or (2) factoring such amounts into our measurement of deferred taxes. We made an accounting policy election to account for GILTI as a component of tax expense in the period in which we are subject and therefore will not provide any deferred tax impacts of GILTI in our consolidated financial statements. We have concluded on the policy of tax law ordering for reflecting the realization of the net operating losses related to GILTI as a permanent adjustment. The BEAT provisions eliminate the deduction of certain base-erosion payments made to related foreign corporations and impose a minimum tax if greater than regular tax. We presently do not expect to be subject to the minimum tax imposed by the BEAT provisions. The Tax Reform legislation includes various other provisions with effective dates beginning April 1, 2018 and beyond. For other changes that impact business related income, exclusions, deductions and credits with effective dates for our fiscal year beginning April 1, 2018, we will continue to account for those items based on our existing accounting under ASC 740 and the provisions of the tax laws that were in effect immediately prior to the enactment of the Tax Reform. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 11. Earnings per Share The dual presentation of “basic” and “diluted” earnings per share is provided below. Share amounts below are in thousands. Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Earnings per share — Basic: Net income $ 4,824 $ 1,541 $ 20,566 $ 13,467 Weighted-average shares outstanding — Basic 64,637 63,706 64,308 63,287 Net income per common share — Basic $ 0.07 $ 0.02 $ 0.32 $ 0.21 Earnings per share — Diluted: Net income $ 4,824 $ 1,541 $ 20,566 $ 13,467 Weighted-average shares outstanding 64,637 63,706 64,308 63,287 Effect of potentially dilutive securities 139 2 191 9 Weighted-average shares outstanding — Diluted 64,776 63,708 64,499 63,296 Net income per common share — Diluted $ 0.07 $ 0.02 $ 0.32 $ 0.21 The computation of diluted net income per share does not include 2,532 and 3,228 options to acquire shares of common stock for the three months ended December 31, 2018 and December 31, 2017, respectively, because their inclusion would have an anti-dilutive effect on net income per share. The computation of diluted net income per share does not include 1,913 and 2,785 options to acquire shares of common stock for the nine months ended December 31, 2018 and December 31, 2017, respectively, because their inclusion would have an anti-dilutive effect on net income per share. |
Share-Based Awards
Share-Based Awards | 9 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Awards | 12. Share-Based Awards Employee Stock Option and Incentive Plans In October 2005, our shareholders approved a stock option and incentive plan (the “2005 Plan”) under which 4,800,000 shares of common stock were reserved for the issuance of awards, including incentive stock options and non-qualified stock options, stock appreciation rights, restricted stock, unrestricted stock, restricted stock units, performance shares, performance units (including performance options) and other share-based awards. The 2005 Plan provides that our employees and directors may, at the discretion of the Board of Directors ("Board") or a duly designated compensation committee, be granted certain share-based awards. In the case of option awards granted under the 2005 Plan, the exercise price of each option is determined based on the date of grant and expire no later than 10 years from the date of grant. Awards granted pursuant to the 2005 Plan are subject to the vesting schedule or performance metrics set forth in the agreements pursuant to which they are granted. Upon a change of control of our Company, as such term is defined in the 2005 Plan, awards under the 2005 Plan will fully vest under certain circumstances. The 2005 Plan expired on May 25, 2015. As of December 31, 2018, there were 360,820 outstanding options under the 2005 Plan. In August 2015, our shareholders approved a stock option and incentive plan (the “2015 Plan”) under which 11,500,000 shares of common stock were reserved for the issuance of awards, including incentive stock options and non-qualified stock options, stock appreciation rights, restricted stock awards and restricted stock unit awards, performance stock awards and other share-based awards. In August 2017, our shareholders approved an amendment to our 2015 Equity Incentive Plan, (the “Amended 2015 Plan”), to, among other items, increase the number of shares of common stock reserved for issuance thereunder by 6,000,000. The Amended 2015 Plan provides that our employees and directors may, at the discretion of the Board of Directors or a duly designated compensation committee, be granted certain share-based awards. In the case of option awards granted under the Amended 2015 Plan, the exercise price of each option is determined based on the date of grant and expire no later than 10 years from the date of grant. Awards granted pursuant to the Amended 2015 Plan are subject to the vesting schedule or performance metrics set forth in the agreements pursuant to which they are granted. Upon a change of control of our Company, as such term is defined in the Amended 2015 Plan, awards under the Amended 2015 Plan will fully vest under certain circumstances. As of December 31, 2018, there were 3,210,955 outstanding options, 1,871,428 outstanding shares of restricted stock awards, 55,415 outstanding shares of performance stock awards, and 6,590,965 shares available for future grant under the Amended 2015 Plan. The following table summarizes the stock option transactions during the nine months ended December 31, 2018: Weighted- Weighted- Average Average Aggregate Exercise Remaining Intrinsic Employee Stock Options Summary Number of Price Contractual Value Shares per Share Life (years) (in thousands) Outstanding, April 1, 2018 3,670,170 $ 15.51 6.2 $ 766 Granted 326,130 $ 16.40 7.0 $ 2 Exercised (199,095 ) $ 16.05 4.3 $ 924 Forfeited/Canceled (223,030 ) $ 20.97 4.4 Expired (2,400 ) $ 28.15 Outstanding, December 31, 2018 3,571,775 $ 15.32 5.8 $ 3,295 Vested and expected to vest, December 31, 2018 3,206,949 $ 15.38 5.7 $ 2,972 Exercisable, December 31, 2018 1,377,170 $ 16.22 5.0 $ 1,349 We utilize the Black-Scholes valuation model for estimating the fair value of share-based compensation with the following assumptions: Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Expected term 6.1 years 5.6 - 6.1 years 6.1 - 6.3 years 5.6 - 6.1 years Expected volatility 34.6% 37.0% - 37.5% 34.6% - 36.8% 37.0% - 37.7% Expected dividends -% -% -% -% Risk-free rate 3.1% 2.1% - 2.2% 2.8% - 3.1% 1.9% - 2.2% The weighted-average grant date fair value of stock options granted during the nine months ended December 31, 2018 and 2017 was $7.18 and $5.59 per share, respectively. During the nine months ended December 31, 2018, a total of 326,130 options to purchase shares of common stock were granted under the Amended 2015 Plan at an exercise price equal to the market price of our common stock on the date of grant, as summarized below: Option Grant Date Number of Shares Exercise Price Vesting Terms (1) Expiration May 30, 2018 241,130 $ 16.83 Four Years June 1, 2026 August 3, 2018 60,000 $ 21.27 Four Years August 3, 2026 November 2, 2018 25,000 $ 15.09 Four Years November 2, 2026 Fiscal year 2019 grants 326,130 (1) Options vest in equal annual installments on each grant anniversary date commencing one year following the date of grant. Non-vested stock option award activity during the nine months ended December 31, 2018 is summarized as follows: Weighted- Average Grant-Date Non-Vested Stock Option Award Summary Number of Fair Value Shares per Share Outstanding, April 1, 2018 2,657,005 $ 5.18 Granted 326,130 7.18 Vested (650,150 ) 5.13 Forfeited/Canceled (138,380 ) 5.61 Outstanding, December 31, 2018 2,194,605 $ 5.46 As of December 31, 2018, $9,928 of total unrecognized compensation costs related to stock options is expected to be recognized over a weighted-average period of 2.5 years. This amount does not include the cost of new options that may be granted in future periods or any changes in our forfeiture percentage. The total fair value of options vested during the nine months ended December 31, 2018 and 2017 was $3,335 and $2,154, respectively. Restricted stock awards activity during the nine months ended December 31, 2018 is summarized as follows: Weighted- Average Grant-Date Restricted Stock Number of Fair Value Shares per Share Outstanding, April 1, 2018 1,820,910 $ 14.52 Granted 859,345 18.15 Vested (516,505 ) 14.85 Canceled (292,322 ) 14.66 Outstanding, December 31, 2018 1,871,428 $ 16.07 Share-based compensation expense related to restricted stock awards was $3,168 and $2,333 for the three months ended December 31, 2018 and 2017, respectively. Share-based compensation expense related to restricted stock awards was $7,921 and $6,079 for the nine months ended December 31, 2018 and 2017, respectively. The weighted-average grant date fair value for the restricted stock awards was estimated using the market price of the common stock on the date of grant. The fair value of the restricted stock awards is amortized on a straight-line basis over the vesting period, which is generally between one to three years. As of December 31, 2018, $23,305 of total unrecognized compensation costs related to restricted stock awards is expected to be recognized over a weighted-average period of 1.8 years. This amount does not include the cost of new restricted stock awards that may be granted in future periods. On December 29, 2016, the Compensation Committee of the Board granted 123,082 performance stock awards to certain executive officers, of which 55,415 shares are currently outstanding. The performance stock awards vest in four equal increments on each of the first four anniversaries of the grant date, subject in each case to the executive officer’s continued service and achievement of certain Company performance goals, including strong Company stock price performance. Share-based compensation expense related to the performance stock awards was $74 and $215 for the three and nine months ended December 31, 2018, respectively. On October 23, 2018, the Compensation Committee of the Board approved 248,140 performance stock unit awards to be granted to certain executives and non-executive members of the executive leadership team, which vest only in the event certain performance goals are achieved and with continuous service through the date the goals are certified. Approximately 34% of the performance stock units are tied to our cumulative 3-year total shareholder return, 33% are tied to our fiscal year 2021 revenue, and 33% are tied to our fiscal year 2021 adjusted earnings per share goals, each as specifically defined in the equity award agreements. The number of shares to be issued may vary between 50% and 200% of the number of performance stock units depending on performance, and no such shares will be issued if threshold performance is not achieved. Share-based compensation expense related to the performance stock unit awards was $230 for the three months ended December 31, 2018. Employee Share Purchase Plan On August 11, 2014, our shareholders approved an Employee Share Purchase Plan (the “Purchase Plan”) under which 4,000,000 shares of common stock were reserved for future grant. The Purchase Plan allows eligible employees to purchase shares through payroll deductions of up to 15% of total base salary at a price equal to 90% of the lower of the fair market values of the shares as of the beginning or the end of the corresponding offering period. Any shares purchased under the Purchase Plan are subject to a six-month holding period. Employees are limited to purchasing no more than 1,500 shares on any single purchase date and no more than $25,000 in total fair market value of shares during any one calendar year. As of December 31, 2018, we have issued 436,015 shares under the Purchase Plan and 3,563,985 shares are available for future issuance. Share-based compensation expense recorded for the employee share purchase plan was $123 and $88 for the three months ended December 31, 2018 and 2017, respectively. Share-based compensation expense recorded for the employee share purchase plan was $355 and $265 for the nine months ended December 31, 2018 and 2017, respectively. |
Concentration of Credit Risk
Concentration of Credit Risk | 9 Months Ended |
Dec. 31, 2018 | |
Risks And Uncertainties [Abstract] | |
Concentration of Credit Risk | 13. Concentration of Credit Risk We had cash deposits at United States banks and financial institutions which exceeded federally insured limits at December 31, 2018. We are exposed to credit loss for amounts in excess of insured limits in the event of non-performance by the institutions; however, we do not anticipate non-performance by these institutions. |
Commitments, Guarantees and Con
Commitments, Guarantees and Contingencies | 9 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments, Guarantees and Contingencies | 14. Commitments, Guarantees and Contingencies Commitments and Guarantees Our software license agreements include a performance guarantee that our software products will substantially operate as described in the applicable program documentation for a period of 365 days after delivery. To date, we have not incurred any significant costs associated with our performance guarantee or other related warranties and do not expect to incur significant warranty costs in the future. Therefore, no accrual has been made for potential costs associated with these warranties. Certain arrangements also include performance guarantees related to response time, availability for operational use, and other performance-related guarantees. Certain arrangements also include penalties in the form of maintenance credits should the performance of the software fail to meet the performance guarantees. To date, we have not incurred any significant costs associated with these warranties and do not expect to incur significant warranty costs in the future. Therefore, no accrual has been made for potential costs associated with these warranties. We have historically offered short-term rights of return in certain sales arrangements. If we are able to estimate returns for these types of arrangements and all other criteria for revenue recognition have been met, revenue is recognized and these arrangements are recorded in the consolidated financial statements. If we are unable to estimate returns for these types of arrangements, revenue is not recognized in the consolidated financial statements until the rights of return expire, provided also, that all other criteria of revenue recognition have been met. Our standard sales agreements contain an indemnification provision pursuant to which we shall indemnify, hold harmless, and reimburse the indemnified party for losses suffered or incurred by the indemnified party in connection with any United States patent, any copyright or other intellectual property infringement claim by any third-party with respect to our software. As we have not incurred any significant costs to defend lawsuits or settle claims related to these indemnification agreements, we believe that our estimated exposure on these agreements is currently minimal. Accordingly, we have no liabilities recorded for these indemnification obligations. Hussein Litigation On October 7, 2013, a complaint was filed against our Company and certain of our officers and directors in the Superior Court of the State of California for the County of Orange, captioned Ahmed D. Hussein v. Sheldon Razin, Steven Plochocki, Quality Systems, Inc. and Does 1-10, inclusive, No. 30-2013-00679600-CU-NP-CJC, by Ahmed Hussein, a former director and significant shareholder of our Company. We filed a demurrer to the complaint, which the Court granted on April 10, 2014. An amended complaint was filed on April 25, 2014. The amended complaint generally alleges fraud and deceit, constructive fraud, negligent misrepresentation and breach of fiduciary duty in connection with statements made to our shareholders regarding our financial condition and projected future performance. The amended complaint seeks actual damages, exemplary and punitive damages and costs. We filed a demurrer to the amended complaint. On July 29, 2014, the Court sustained the demurrer with respect to the breach of fiduciary duty claim, and overruled the demurrer with respect to the fraud and deceit claims. On August 28, 2014, we filed an answer and also filed a cross-complaint against Hussein, alleging that he breached fiduciary duties owed to the Company, Mr. Razin and Mr. Plochocki. Mr. Razin and Mr. Plochocki have dismissed their claims against Hussein, leaving QSI as the sole plaintiff in the cross-complaint. On June 26, 2015, we filed a motion for summary judgment with respect to Hussein’s claims, which the Court granted on September 16, 2015, dismissing all of Hussein’s claims against us. On September 23, 2015, Hussein filed an application for reconsideration of the Court's summary judgment order, which the Court denied. Hussein filed a renewed application for reconsideration of the Court’s summary judgment order on August 3, 2017. The Court again denied Hussein’s application. On October 28, 2015, May 9, 2016, and August 5, 2016, Hussein filed a motion for summary judgment, motion for summary adjudication, and motion for judgment on the pleadings, respectively, seeking to dismiss our cross-complaint. The Court denied each motion. Trial on our cross-complaint began June 12, 2017. On July 26, 2017, the Court issued a statement of decision granting Hussein’s motion for judgment on our cross-complaint. Final judgment over Hussein’s claims and our cross-claims was entered on January 9, 2018. Hussein has noticed his appeal of the order granting summary judgment over his claims, and we noticed a cross-appeal on the court’s statement of decision granting Hussein’s motion for judgment on our cross-complaint. Briefing on the cross-appeals was completed in fall 2018 and hearings on the cross-appeals will be held in spring 2019. At this time, we are unable to estimate the probability or the amount of liability, if any, related to this claim. Federal Securities Class Action On November 19, 2013, a putative class action complaint was filed on behalf of the shareholders of our Company other than the defendants against us and certain of our officers and directors in the United States District Court for the Central District of California by one of our shareholders. After the Court appointed lead plaintiffs and lead counsel for this action, and recaptioned the action In re Quality Systems, Inc. Securities Litigation, No. 8:13-cv-01818-CJC-JPR, lead plaintiffs filed an amended complaint on April 7, 2014. The amended complaint, which is substantially similar to the litigation described above under the caption “Hussein Litigation,” generally alleges that statements made to our shareholders regarding our financial condition and projected future performance were false and misleading in violation of Section 10(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and that the individual defendants are liable for such statements because they are controlling persons under Section 20(a) of the Exchange Act. The complaint seeks compensatory damages, court costs and attorneys' fees. We filed a motion to dismiss the amended complaint on June 20, 2014, which the Court granted on October 20, 2014, dismissing the complaint with prejudice. Plaintiffs filed a motion for reconsideration of the Court's order, which the Court denied on January 5, 2015. On January 30, 2015, Plaintiffs filed a notice of appeal to the United States Court of Appeals for the Ninth Circuit, captioned In re Quality Systems, Inc. Securities Litigation, No. 15-55173. On July 28, 2017, the Ninth Circuit issued a decision reversing and remanding the District Court's order on our motion to dismiss. On September 5, 2017, we filed a petition for rehearing en banc, which was denied on September 29, 2017. On January 26, 2018, we filed a petition for a writ of certiorari with the Supreme Court of the United States. The Supreme Court ordered the plaintiffs to file a response to the petition, which they filed on March 22, 2018. On May 10, 2018, the parties reached an agreement-in-principle to resolve the action for $19,000, and on May 11, 2018, the parties requested that the Supreme Court stay any decision regarding whether to hear the Company’s petition for a writ of certiorari, pending the parties’ ongoing settlement negotiations. On July 16, 2018, the parties signed a definitive settlement agreement resolving this matter and submitted it to the Court for approval. On July 30, 2018, the Court granted preliminary approval of the settlement and granted final approval on November 19, 2018. The matter is now concluded. Under the terms of this agreement, the settlement was partially funded by certain of the Company’s insurance carriers, and defendants continued to deny any liability or wrongdoing. The settlement does not resolve the Hussein Litigation or the Shareholder Derivative Litigation. Shareholder Derivative Litigation On January 24, 2014, a complaint was filed against our Company and certain of our officers and current and former directors in the United States District Court for the Central District of California, captioned Timothy J. Foss, derivatively on behalf of himself and all others similarly situated, vs. Craig A. Barbarosh, George H. Bristol, James C. Malone, Peter M. Neupert, Morris Panner, D. Russell Pflueger, Steven T. Plochocki, Sheldon Razin, Lance E. Rosenzweig and Quality Systems, Inc., No. SACV14-00110-DOC-JPPx, by Timothy J. Foss, a purported shareholder of ours. The complaint arises from the same allegations described above under the captions “Hussein Litigation” and “Federal Securities Class Action” and generally alleges breach of fiduciary duties, abuse of control and gross mismanagement by our directors, in addition to unjust enrichment and insider selling by individual directors. The complaint seeks compensatory damages, restitution and disgorgement of all profits, court costs, attorneys’ fees and implementation of enhanced corporate governance procedures. The matter was stayed pending the Ninth Circuit’s decision in the appeal described above under the caption, “Federal Securities Class Action.” This stay now has been lifted and Defendants filed a motion to dismiss on February 2, 2018. On July 25, 2018, the Court dismissed the complaint with prejudice. The time within which Foss could appeal the dismissal has expired so this matter is now concluded. On September 28, 2017, a complaint was filed against our Company and certain of our current and former officers and directors in the United States District Court for the Central District of California, captioned Kusumam Koshy, derivatively on behalf of Quality Systems Inc. vs. Craig Barbarosh, George H. Bristol, James C. Malone, Peter M. Neupert, Morris Panner, D. Russell Pflueger, Steven T. Plochocki, Sheldon Razin, Lance E. Rosenzweig, Paul A. Holt, and Quality Systems, Inc., No. 8:17-cv-01694, by Kusumam Koshy, a purported shareholder of ours. The complaint alleges breach of fiduciary duties and abuse of control, as well as unjust enrichment and insider selling by individual directors arising out of the allegations described above under the captions “Hussein Litigation” and “Federal Securities Class Action,” QSI’s adoption of revised indemnification agreements, and the resignation of certain officers of the Company. The complaint seeks restitution and disgorgement, court costs and attorneys’ fees, and enhanced corporate governance reforms and internal control procedures. On January 12, 2018, Defendants filed a motion to dismiss the derivative complaint. On July 25, 2018, the Court dismissed the complaint with prejudice. On August 24, 2018, the plaintiff filed a notice of appeal to the United States Court of Appeals for the Ninth Circuit. We believe that the plaintiff’s appeal is without merit and intend to defend against it vigorously. At this time, we are unable to estimate the probability or the amount of liability, if any, related to this claim. Other Regulatory Matters In April 2017, we received a request for documents and information from the United States Attorney's Office for the District of Vermont pursuant to a Civil Investigative Demand (“CID”). The CID relates to an investigation concerning the certification we obtained for our software under the United States Department of Health and Human Services' Electronic Health Record Incentive Program. We have provided documents and information in response to that CID. On December 11, 2017, we received a subpoena from the United States Department of Justice in connection with the same matter seeking among other things records relating to (a) data used to determine objectives and measures under the Meaningful Use (MU) and the Physician Quality Reporting System (PQRS) programs, (b) EHR software code used in certifying the 2014 EHR software and information, and (c) payments provided for the referral of EHR business. We continue to respond to this CID and subpoena and intend to cooperate fully with the government, including responding to any future requests. Requests and investigations of this nature may lead to future requests for information and ultimately the assertion of claims or the commencement of legal proceedings against us, as well as other material liabilities. In addition, our responses to these and any future requests require time and effort, which can result in additional cost to us. At this time, we are unable to estimate the probability or the amount of liability, if any, related to this matter. Given the highly-regulated nature of our industry, we may, from time to time, be subject to subpoenas, requests for information, or investigations from various government agencies. It is our practice to respond to such matters in a cooperative, thorough and timely manner. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation. On September 6, 2018, Quality Systems, Inc. changed its corporate name to NextGen Healthcare, Inc. The consolidated financial statements include the accounts of NextGen Healthcare, Inc. and its wholly-owned subsidiaries (collectively, the “Company”). Each of the terms “we,” “us,” or “our” as used herein refers collectively to the Company, unless otherwise stated. All intercompany accounts and transactions have been eliminated. |
Basis of Presentation | Basis of Presentation. The accompanying unaudited condensed consolidated financial statements as of December 31, 2018 and for the three and nine months ended December 31, 2018 have been prepared in accordance with the requirements of Quarterly Report on Form 10-Q and Article 10 of the Securities and Exchange Commission Regulation S-X and therefore do not include all information and notes which would be presented were such consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These consolidated financial statements should be read in conjunction with the audited consolidated financial statements presented in our Annual Report on Form 10-K for the fiscal year ended March 31, 2018. In the opinion of management, the accompanying consolidated financial statements reflect all adjustments which are necessary for a fair statement of the results of operations and cash flows for the periods presented. The results of operations for such interim periods are not necessarily indicative of results of operations to be expected for the full year. Effective April 1, 2018, we changed the presentation of our consolidated statements of comprehensive income to present revenue and cost of revenue under separate ‘recurring’ captions and ‘software, hardware, and other non-recurring’ captions. Recurring consists of revenue and related cost of revenue for subscription services, support and maintenance, managed services, and electronic data interchange and data services. Software, hardware, and other non-recurring consists of revenue and related cost of revenue, for software licenses, hardware, and other non-recurring services, such as implementation, training, and consulting services. Cost of revenue within recurring and software, hardware, and other non-recurring are reported exclusive of the amortization of capitalized software costs and acquired intangible assets. Amortization of capitalized software costs and acquired intangible assets are now reported in a separate cost of revenue caption. Prior period amounts have been reclassified to conform to current year presentation. Also effective April 1, 2018, prior period amounts previously presented as deferred revenue are now presented as contract liabilities. Prior period balances have not changed. References to amounts in the consolidated financial statement sections are in thousands, except shares and per share data, unless otherwise specified. |
Share-Based Compensation | Share-Based Compensation. The following table summarizes total share-based compensation expense included in the consolidated statements of comprehensive income for the three and nine months ended December 31, 2018 and 2017: Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Costs and expenses: Cost of revenue $ 358 $ 259 $ 939 $ 686 Research and development costs 860 557 2,196 1,431 Selling, general and administrative 3,480 2,637 8,814 6,468 Total share-based compensation 4,698 3,453 11,949 8,585 Income tax benefit (1,180 ) (1,080 ) (2,949 ) (2,940 ) Decrease in net income $ 3,518 $ 2,373 $ 9,000 $ 5,645 |
Recent Accounting Standards | Recently adopted accounting pronouncements. Recently adopted accounting pronouncements are discussed below or in the notes, where applicable. In March 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-05, Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 In May 2017, FASB issued Accounting Standards Update (“ASU”) 2017-09, Compensation–Stock Compensation (Topic 718): Scope of Modification Accounting In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments. Revenue from Contracts with Customers: Topic 606 Revenue Recognition Recent Accounting Standards Not Yet Adopted. Recent accounting pronouncements requiring implementation in current or future periods are discussed below or in the notes, where applicable. In August 2018, the FASB issued ASU 2018-15, Intangibles–Goodwill and Other–Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework–Changes to the Disclosure Requirements for Fair Value Measurement Fair Value Measurement In January 2017, the FASB issued ASU 2017-04, Intangibles–Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) We expect to implement the new lease guidance, including all related updates, when it becomes effective for us on April 1, 2019 using the cumulative-effect adjustment transition method, which is the additional transition method described within ASU 2018-11, Leases (Topic 842): Targeted Improvements We do not believe that any other recently issued, but not yet effective accounting standards, if adopted, would have a material impact on our consolidated financial statements. |
Revenue Recognition | Adoption of ASC 606 In May 2014, the FASB issued ASC 606, which supersedes the revenue recognition requirements in and requires entities to recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The new guidance provides a five-step process for determining the amount and timing of revenue recognition and establishes disclosure requirements to enable users of the financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows from contracts with customers. It also provides guidance on the accounting treatment for the incremental costs of obtaining a contract that would not have been incurred had the contract not been obtained. We adopted ASC 606 and all related amendments as of April 1, 2018 using the modified retrospective method for all contracts not completed as of the date of adoption. Results for reporting periods beginning after April 1, 2018 are presented under ASC 606, while prior period comparative information has not been adjusted and continues to be reported under the accounting standards in effect for those prior periods. We have also implemented changes to our processes, policies, and internal controls over financial reporting to address the impacts of the new revenue recognition standard on our consolidated financial statements and related disclosures. Recurring revenues consists of subscription services, support and maintenance, managed services, and EDI and data services. Software, hardware, and other non-recurring consists of revenue from sales of software license and hardware and certain non-recurring services, such as implementation, training, and consulting performed for clients who use our products. Generally, we recognize revenue under ASC 606 for our most significant performance obligations as follows: Subscription services. Performance obligations involving subscription services, which include annual licenses, are satisfied over time as the customer simultaneously receives and consumes the benefits of the services throughout the contract period. We recognize revenue related to these services ratably over the respective noncancelable contract term. Support and maintenance. Performance obligations involving support and maintenance are satisfied over time as the customer simultaneously receives and consumes the benefits of the maintenance services provided. Our support and maintenance services may consist of separate performance obligations, such as unspecified upgrades or enhancements and technical support, which are considered stand-ready in nature and can be offered at various points during the service period. Since the efforts associated with the combined support and maintenance services are rendered concurrently and provided evenly throughout the service period, we consider the series of support and maintenance services to be a single performance obligation. Therefore, we recognize revenue related to these services ratably over the respective noncancelable contract term. Managed services. Managed services consist primarily of RCM and related services, but also includes transcription services and certain other recurring services. Performance obligations associated with RCM services are satisfied over time as the customer simultaneously receives and consumes the benefits of the services executed throughout the contract period. The majority of service fees under our RCM arrangements are variable consideration contingent upon collections by our clients. We estimate the variable consideration which we expect to be entitled to over the noncancelable contract term associated with our RCM service arrangements. The estimate of variable consideration included in the transaction price typically involves estimating the amounts we will ultimately collect on behalf of our clients and the relative fee we charge that is generally calculated as a percentage of those collections. Inputs to these estimates include, but are not limited to, historical service fees and collections amounts, timing of historical collections relative to the timing of when claims are submitted by our clients to their respective payers, macroeconomic trends, and anticipated changes in the number of providers. Significant judgement is required when estimating the total transaction price based on the variable consideration. We may apply certain constraints, when appropriate and permitted under ASC 606, to our estimates around our variable consideration in order to ensure that our estimates do not pose a risk of significantly misstating our revenue in any reporting period. RCM and related services may not be rendered evenly over the contract period as the timing of services are based on customer collections, which may vary throughout the service period. We recognize revenue for RCM based on the amount of collections received throughout the contract term as it most closely depicts our efforts to transfer our service obligations to the customer. Performance obligations related to the transcription services and other recurring services are generally satisfied as the corresponding services are provided and revenue is recognized as such services are rendered. Electronic data interchange and data services. Performance obligations related to EDI and other transaction processing services are satisfied at the point in time the services are rendered. The transfer of control occurs when the transaction processing services are delivered and the customer receives the benefits from the services provided. Software license and hardware. Software license and hardware are considered point-in-time performance obligations as control is transferred to customers upon the delivery of the software license and hardware. Our software licenses are considered functional licenses, and revenue recognition generally occurs on the date of contract execution as the customer is provided with immediate access to the license. We generally determine the amount of consideration allocated to the software license performance obligation using the residual approach, except for certain RCM arrangements where the amount allocated to the software license performance obligation is determined based on estimated relative standalone selling prices. For hardware, we recognize revenue upon transfer of such hardware or devices to the customer. Other non-recurring services. Performance obligations related to other non-recurring services, including implementation, training, and consulting services, are generally satisfied as the corresponding services are provided. Once the services have been provided to the customer, the transfer of control has occurred. Therefore, we recognize revenue as such services are rendered. |
Revenue Recognition and Performance Obligations | Revenue Recognition and Performance Obligations We generate revenue from sales of licensing rights and subscriptions to our software solutions, hardware and third-party software products, support and maintenance, managed services (formerly referred to as revenue cycle management and related services), EDI, and other non-recurring services, including implementation, training, and consulting services. Our contracts with customers may include multiple performance obligations that consist of various combinations of our software solutions and related services, which are generally capable of being distinct and accounted for as separate performance obligations. The total transaction price is allocated to each performance obligation within an arrangement based on estimated standalone selling prices. Revenue is recognized when control of the promised goods or services is transferred to our customers in an amount that reflects the consideration that we expect to be entitled to in exchange for those goods or services. We expect that the new revenue guidance in ASC 606 will result in additional complexity to our revenue recognition, including the use of an increased amount of significant judgments and estimates, particularly as it relates to our RCM services revenue. We exclude sales tax from the measurement of the transaction price and |
Non-Recurring Fair Value Measurements | Non-Recurring Fair Value Measurements We have certain assets, including goodwill and other intangible assets, which are measured at fair value on a non-recurring basis and are adjusted to fair value only if an impairment charge is recognized. The categorization of the framework used to measure fair value of the assets is considered to be within the Level 3 valuation hierarchy due to the subjective nature of the unobservable inputs used. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Stock-Based Compensation Expense | The following table summarizes total share-based compensation expense included in the consolidated statements of comprehensive income for the three and nine months ended December 31, 2018 and 2017: Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Costs and expenses: Cost of revenue $ 358 $ 259 $ 939 $ 686 Research and development costs 860 557 2,196 1,431 Selling, general and administrative 3,480 2,637 8,814 6,468 Total share-based compensation 4,698 3,453 11,949 8,585 Income tax benefit (1,180 ) (1,080 ) (2,949 ) (2,940 ) Decrease in net income $ 3,518 $ 2,373 $ 9,000 $ 5,645 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Schedule of Revenues Disaggregated by Major Revenue Categories and by Occurrence | The following table presents our revenues disaggregated by our major revenue categories and by occurrence: Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Recurring revenues: Subscription services $ 30,035 $ 26,596 $ 87,618 $ 78,959 Support and maintenance 39,714 40,362 120,556 123,171 Managed services 24,251 28,903 74,048 86,040 Electronic data interchange and data services 23,446 23,136 71,548 69,446 Total recurring revenues 117,446 118,997 353,770 357,616 Software, hardware, and other non-recurring revenues: Software license and hardware 9,217 7,759 26,013 24,032 Other non-recurring services 4,204 4,959 14,605 13,596 Total software, hardware and other non-recurring revenues 13,421 12,718 40,618 37,628 Total revenues $ 130,867 $ 131,715 $ 394,388 $ 395,244 |
Adoption of ASC 606 | |
Summary of Impact of Topic 606 on Financial Statements | The adjustments to reflect the cumulative effect of the changes to the balances of our previously reported consolidated balance sheet as of March 31, 2018 for the adoption of ASC 606 are summarized as follows: As Reported ASC 606 Transition Adjusted March 31, 2018 Adjustments April 1, 2018 ASSETS Accounts receivable, net $ 84,962 $ 2,380 $ 87,342 Contract assets — 13,446 13,446 Prepaid expenses and other current assets 17,180 (223 ) 16,957 Deferred income taxes, net 9,219 (2,884 ) 6,335 Contract assets, net of current — 2,731 2,731 Other assets 18,795 6,679 25,474 LIABILITIES Contract liabilities 54,079 4,174 58,253 Accrued compensation and related benefits 27,910 745 28,655 Other current liabilities 48,317 9,964 58,281 Contract liabilities, net of current 1,173 (1,173 ) — SHAREHOLDERS' EQUITY Retained earnings 78,708 8,419 87,127 The impact of the adoption of ASC 606 on our consolidated balance sheet and consolidated statements of net income and comprehensive income December 31, 2018 As reported under Adjustments due to As disclosed under ASC 606 adoption of ASC 606 ASC 605 ASSETS Accounts receivable, net $ 84,360 $ 1,298 $ 85,658 Contract assets 11,281 (11,281 ) — Income taxes receivable 6,061 1,550 7,611 Prepaid expenses and other current assets 18,505 (2,935 ) 15,570 Deferred income taxes, net 6,417 2,884 9,301 Contract assets, net of current 3,608 (3,608 ) — Other assets 29,620 (6,808 ) 22,812 LIABILITIES Contract liabilities 50,449 235 50,684 Accrued compensation and related benefits 24,179 300 24,479 Other current liabilities 41,610 (7,777 ) 33,833 Contract liabilities, net of current — 910 910 SHAREHOLDERS' EQUITY Retained earnings 107,693 (12,568 ) 95,125 Three Months Ended December 31, 2018 As reported under Adjustments due to As disclosed under ASC 606 adoption of ASC 606 ASC 605 Revenues: Recurring $ 117,446 $ (557 ) $ 116,889 Software, hardware, and other non-recurring 13,421 33 13,454 Total revenue 130,867 (524 ) 130,343 Total cost of revenue 61,671 36 61,707 Gross profit 69,196 (560 ) 68,636 Operating expenses: Selling, general and administrative 41,304 1,050 42,354 Research and development costs, net 20,682 — 20,682 Amortization of acquired intangibles 1,027 — 1,027 Total operating expenses 63,013 1,050 64,063 Income from operations 6,183 (1,610 ) 4,573 Interest and other income, net (903 ) — (903 ) Income before provision for income taxes 5,280 (1,610 ) 3,670 Provision for income taxes 456 (553 ) (97 ) Net income $ 4,824 $ (1,057 ) $ 3,767 Nine Months Ended December 31, 2018 As reported under Adjustments due to As disclosed under ASC 606 adoption of ASC 606 ASC 605 Revenues: Recurring $ 353,770 $ (663 ) $ 353,107 Software, hardware, and other non-recurring 40,618 (704 ) 39,914 Total revenue 394,388 (1,367 ) 393,021 Total cost of revenue 184,640 130 184,770 Gross profit 209,748 (1,497 ) 208,251 Operating expenses: Selling, general and administrative 120,169 4,202 124,371 Research and development costs, net 61,181 — 61,181 Amortization of acquired intangibles 3,316 — 3,316 Total operating expenses 184,666 4,202 188,868 Income from operations 25,082 (5,699 ) 19,383 Interest and other income, net (1,722 ) — (1,722 ) Income before provision for income taxes 23,360 (5,699 ) 17,661 Provision for income taxes 2,794 (1,550 ) 1,244 Net income $ 20,566 $ (4,149 ) $ 16,417 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities on a Recurring Basis | The following tables set forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis at December 31, 2018 and March 31, 2018: Balance At Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Unobservable Inputs December 31, 2018 (Level 1) (Level 2) (Level 3) ASSETS Cash and cash equivalents (1) $ 30,054 $ 30,054 $ — $ — Restricted cash and cash equivalents 7,389 7,389 — — $ 37,443 $ 37,443 $ — $ — Balance At Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Unobservable Inputs March 31, 2018 (Level 1) (Level 2) (Level 3) ASSETS Cash and cash equivalents (1) $ 28,845 $ 28,845 $ — $ — Restricted cash and cash equivalents 2,373 2,373 — — $ 31,218 $ 31,218 $ — $ — (1) Cash equivalents consist primarily of money market funds. |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The final purchase price for the acquisitions of Inforth, EagleDream and Entrada are summarized as follows: Inforth EagleDream Entrada Purchase Price Purchase Price Purchase Price Initial purchase price $ 4,000 $ 26,000 $ 34,000 Settlement of pre-existing net liabilities 337 — — Working capital and other adjustments — (391 ) (42 ) Total purchase price $ 4,337 $ 25,609 $ 33,958 Fair value of the net tangible assets acquired and liabilities assumed: Acquired cash and cash equivalents $ 25 $ 573 $ 102 Accounts receivable 6 217 1,836 Prepaid expense and other current assets — 20 145 Equipment and improvements — — 163 Capitalized software costs — — 364 Deferred income tax asset — — 117 Accounts payable — (115 ) (639 ) Accrued compensation and related benefits (49 ) (691 ) (120 ) Deferred revenues — (394 ) (234 ) Deferred income tax liability — (1,707 ) — Other liabilities (22 ) (122 ) (444 ) Total net tangible assets acquired and liabilities assumed (40 ) (2,219 ) 1,290 Fair value of identifiable intangible assets acquired: Goodwill 1,177 14,428 17,268 Software technology 3,200 12,800 10,500 Customer relationships — 600 3,300 Trade name — — 1,600 Total identifiable intangible assets acquired 4,377 27,828 32,668 Total purchase price $ 4,337 $ 25,609 $ 33,958 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Other than Capitalized Software Development Costs | Our definite-lived intangible assets, other than capitalized software development costs, are summarized as follows, and reflects the acquisitions of Entrada, EagleDream and Inforth (see Note 4): December 31, 2018 Customer Software Relationships Technology Total Gross carrying amount $ 54,450 $ 94,310 $ 148,760 Accumulated amortization (38,847 ) (52,002 ) (90,849 ) Net intangible assets $ 15,603 $ 42,308 $ 57,911 March 31, 2018 Customer Software Relationships Technology Total Gross carrying amount $ 54,450 $ 94,310 $ 148,760 Accumulated amortization (35,531 ) (39,138 ) (74,669 ) Net intangible assets $ 18,919 $ 55,172 $ 74,091 |
Estimated Amortization of Intangible Assets with Determinable Lives | The following table summarizes the remaining estimated amortization of definite-lived intangible assets as of December 31, 2018: Estimated Remaining Amortization Expense Operating Expense Cost of Revenue Total For the year ended March 31, 2019 (remaining three months) $ 1,028 $ 4,288 $ 5,316 2020 3,460 17,151 20,611 2021 2,803 13,268 16,071 2022 2,273 5,480 7,753 2023 1,866 1,761 3,627 2024 and beyond 4,173 360 4,533 Total $ 15,603 $ 42,308 $ 57,911 |
Capitalized Software Costs (Tab
Capitalized Software Costs (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Research And Development [Abstract] | |
Capitalized Software Development Costs | Our capitalized software costs are summarized as follows: December 31, 2018 March 31, 2018 Gross carrying amount $ 51,760 $ 50,361 Accumulated amortization (18,292 ) (24,043 ) Net capitalized software costs $ 33,468 $ 26,318 |
Estimated Amortization of Capitalized Software Costs | The following table presents the remaining estimated amortization of capitalized software costs as of December 31, 2018. The estimated amortization is comprised of (i) amortization of released products and (ii) the expected amortization for products that are not yet available for sale based on their estimated economic lives and projected general release dates. For the year ended March 31, 2019 (remaining three months) $ 4,900 2020 15,400 2021 8,800 2022 4,368 Total $ 33,468 |
Composition of Certain Financ_2
Composition of Certain Financial Statement Captions (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Accounts Receivable | Subsequent to the adoption of ASC 606 as of April 1, 2018, accounts receivable includes billed amounts where the right to receive payment is unconditional and only subject to the passage of time, and sales return reserves are now classified as other current liabilities on our consolidated balance sheets. As of March 31, 2018, accounts receivable may include amounts invoiced for undelivered products and services at each period end. Undelivered products and services are included as a component of the contract liabilities balance on the accompanying consolidated balance sheets. December 31, 2018 March 31, 2018 Accounts receivable, gross $ 88,934 $ 94,358 Sales return reserve — (5,520 ) Allowance for doubtful accounts (4,574 ) (3,876 ) Accounts receivable, net $ 84,360 $ 84,962 |
Summary of Prepaid Expense and Other Current Assets | Prepaid expenses and other current assets are summarized as follows: December 31, 2018 March 31, 2018 Prepaid expenses $ 13,603 $ 13,865 Capitalized commissions costs 3,770 2,828 Other current assets 1,132 487 Prepaid expenses and other current assets $ 18,505 $ 17,180 |
Summary of Equipment and Improvements | Equipment and improvements are summarized as follows: December 31, 2018 March 31, 2018 Computer equipment $ 28,205 $ 27,347 Internal-use software 17,136 15,804 Furniture and fixtures 10,966 11,432 Leasehold improvements 15,725 16,016 Equipment and improvements, gross 72,032 70,599 Accumulated depreciation and amortization (48,863 ) (43,804 ) Equipment and improvements, net $ 23,169 $ 26,795 |
Summary of Other Assets | Other assets are summarized as follows: December 31, 2018 March 31, 2018 Capitalized commission costs $ 11,983 $ 1,394 Deposits 5,594 4,666 Debt issuance costs 3,011 3,544 Other noncurrent assets 9,032 9,191 Other assets $ 29,620 $ 18,795 |
Summary of Accrued Compensation and Related Benefits | Accrued compensation and related benefits are summarized as follows: December 31, 2018 March 31, 2018 Payroll, bonus and commission $ 15,203 $ 18,120 Vacation 8,976 9,790 Accrued compensation and related benefits $ 24,179 $ 27,910 |
Summary of Other Current and Noncurrent Liabilities | Other current and noncurrent liabilities are summarized as follows: December 31, 2018 March 31, 2018 Sales returns reserves and other customer liabilities (1) $ 7,777 $ — Care services liabilities 7,389 2,373 Customer credit balances and deposits 3,879 4,287 Accrued hosting costs 3,775 1,600 Accrued employee benefits and withholdings 2,777 1,636 Accrued self insurance expense 2,416 2,145 Accrued consulting and outside services 2,278 4,428 Accrued EDI expense 1,982 2,310 Accrued outsourcing costs 1,759 2,898 Deferred rent 1,389 1,594 Accrued royalties 917 1,400 Sales tax payable 539 499 Remaining lease obligations 524 672 Accrued legal expense 293 1,793 Accrued securities litigation settlement — 19,000 Other accrued expenses 3,916 1,682 Other current liabilities $ 41,610 $ 48,317 Deferred rent $ 9,427 $ 9,902 Uncertain tax positions 2,690 2,419 Remaining lease obligations 607 962 Other liabilities 189 211 Other noncurrent liabilities $ 12,913 $ 13,494 (1) Subsequent to the adoption of ASC 606 as of April 1, 2018, sales return reserves and certain customer liabilities, which were previously recorded within accounts receivable, are now classified as other current liabilities on our consolidated balance sheets. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Weighted Average Shares Outstanding for Basic and Diluted Net Income Per Share | The dual presentation of “basic” and “diluted” earnings per share is provided below. Share amounts below are in thousands. Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Earnings per share — Basic: Net income $ 4,824 $ 1,541 $ 20,566 $ 13,467 Weighted-average shares outstanding — Basic 64,637 63,706 64,308 63,287 Net income per common share — Basic $ 0.07 $ 0.02 $ 0.32 $ 0.21 Earnings per share — Diluted: Net income $ 4,824 $ 1,541 $ 20,566 $ 13,467 Weighted-average shares outstanding 64,637 63,706 64,308 63,287 Effect of potentially dilutive securities 139 2 191 9 Weighted-average shares outstanding — Diluted 64,776 63,708 64,499 63,296 Net income per common share — Diluted $ 0.07 $ 0.02 $ 0.32 $ 0.21 |
Share Based Awards (Tables)
Share Based Awards (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity | The following table summarizes the stock option transactions during the nine months ended December 31, 2018: Weighted- Weighted- Average Average Aggregate Exercise Remaining Intrinsic Employee Stock Options Summary Number of Price Contractual Value Shares per Share Life (years) (in thousands) Outstanding, April 1, 2018 3,670,170 $ 15.51 6.2 $ 766 Granted 326,130 $ 16.40 7.0 $ 2 Exercised (199,095 ) $ 16.05 4.3 $ 924 Forfeited/Canceled (223,030 ) $ 20.97 4.4 Expired (2,400 ) $ 28.15 Outstanding, December 31, 2018 3,571,775 $ 15.32 5.8 $ 3,295 Vested and expected to vest, December 31, 2018 3,206,949 $ 15.38 5.7 $ 2,972 Exercisable, December 31, 2018 1,377,170 $ 16.22 5.0 $ 1,349 |
Schedule of Assumptions Used in Black-Scholes Model to Estimate Fair Value of Stock Awards | We utilize the Black-Scholes valuation model for estimating the fair value of share-based compensation with the following assumptions: Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Expected term 6.1 years 5.6 - 6.1 years 6.1 - 6.3 years 5.6 - 6.1 years Expected volatility 34.6% 37.0% - 37.5% 34.6% - 36.8% 37.0% - 37.7% Expected dividends -% -% -% -% Risk-free rate 3.1% 2.1% - 2.2% 2.8% - 3.1% 1.9% - 2.2% |
Summary of Stock Options Granted | During the nine months ended December 31, 2018, a total of 326,130 options to purchase shares of common stock were granted under the Amended 2015 Plan at an exercise price equal to the market price of our common stock on the date of grant, as summarized below: Option Grant Date Number of Shares Exercise Price Vesting Terms (1) Expiration May 30, 2018 241,130 $ 16.83 Four Years June 1, 2026 August 3, 2018 60,000 $ 21.27 Four Years August 3, 2026 November 2, 2018 25,000 $ 15.09 Four Years November 2, 2026 Fiscal year 2019 grants 326,130 (1) Options vest in equal annual installments on each grant anniversary date commencing one year following the date of grant. |
Schedule of Employee Stock Options and Performance Based Awards by Non-vested Stock Options | Non-vested stock option award activity during the nine months ended December 31, 2018 is summarized as follows: Weighted- Average Grant-Date Non-Vested Stock Option Award Summary Number of Fair Value Shares per Share Outstanding, April 1, 2018 2,657,005 $ 5.18 Granted 326,130 7.18 Vested (650,150 ) 5.13 Forfeited/Canceled (138,380 ) 5.61 Outstanding, December 31, 2018 2,194,605 $ 5.46 |
Summary of Restricted Stock Awards Activity | Restricted stock awards activity during the nine months ended December 31, 2018 is summarized as follows: Weighted- Average Grant-Date Restricted Stock Number of Fair Value Shares per Share Outstanding, April 1, 2018 1,820,910 $ 14.52 Granted 859,345 18.15 Vested (516,505 ) 14.85 Canceled (292,322 ) 14.66 Outstanding, December 31, 2018 1,871,428 $ 16.07 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Costs and expenses: | ||||
Total share-based compensation | $ 4,698 | $ 3,453 | $ 11,949 | $ 8,585 |
Income tax benefit | (1,180) | (1,080) | (2,949) | (2,940) |
Decrease in net income | 3,518 | 2,373 | 9,000 | 5,645 |
Cost of Revenue | ||||
Costs and expenses: | ||||
Total share-based compensation | 358 | 259 | 939 | 686 |
Research and Development Costs | ||||
Costs and expenses: | ||||
Total share-based compensation | 860 | 557 | 2,196 | 1,431 |
Selling, General and Administrative | ||||
Costs and expenses: | ||||
Total share-based compensation | $ 3,480 | $ 2,637 | $ 8,814 | $ 6,468 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
ASU 2016-18 | ||
Accounting Policies [Line Items] | ||
Net cash provided by operating activities | $ 5,016 | $ (1,523) |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Summary of Adjustments to Reflect Cumulative Effect of Changes to Balances of Previously Reported Consolidated Balance Sheet for Adoption of ASC 606 (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Apr. 01, 2018 | Mar. 31, 2018 | |
ASSETS | ||||
Accounts receivable, net | $ 84,360 | $ 84,962 | ||
Contract assets | 11,281 | |||
Prepaid expenses and other current assets | 18,505 | 17,180 | ||
Deferred income taxes, net | 6,417 | 9,219 | ||
Contract assets, net of current | 3,608 | |||
Other assets | 29,620 | 18,795 | ||
LIABILITIES | ||||
Contract liabilities | 50,449 | 54,079 | ||
Accrued compensation and related benefits | 24,179 | 27,910 | ||
Other current liabilities | 41,610 | 48,317 | ||
Contract liabilities, net of current | 1,173 | |||
Shareholders' equity: | ||||
Retained earnings | [1] | 107,693 | $ 78,708 | |
Adoption of ASC 606 | ||||
ASSETS | ||||
Accounts receivable, net | $ 87,342 | |||
Contract assets | 13,446 | |||
Prepaid expenses and other current assets | 16,957 | |||
Deferred income taxes, net | 6,335 | |||
Contract assets, net of current | 2,731 | |||
Other assets | 25,474 | |||
LIABILITIES | ||||
Contract liabilities | 58,253 | |||
Accrued compensation and related benefits | 28,655 | |||
Other current liabilities | 58,281 | |||
Shareholders' equity: | ||||
Retained earnings | 87,127 | |||
Adoption of ASC 606 | ASC 606 Transition Adjustments | ||||
ASSETS | ||||
Accounts receivable, net | 1,298 | 2,380 | ||
Contract assets | (11,281) | 13,446 | ||
Prepaid expenses and other current assets | (2,935) | (223) | ||
Deferred income taxes, net | 2,884 | (2,884) | ||
Contract assets, net of current | (3,608) | 2,731 | ||
Other assets | (6,808) | 6,679 | ||
LIABILITIES | ||||
Contract liabilities | 235 | 4,174 | ||
Accrued compensation and related benefits | 300 | 745 | ||
Other current liabilities | (7,777) | 9,964 | ||
Contract liabilities, net of current | 910 | (1,173) | ||
Shareholders' equity: | ||||
Retained earnings | $ (12,568) | $ 8,419 | ||
[1] | Includes cumulative effect adjustment related to the adoption of ASC 606, as defined in Note 1. See Note 1 for additional details. |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2018 | Apr. 01, 2018 | Mar. 31, 2018 | ||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Retained earnings | [1] | $ 107,693 | $ 107,693 | $ 78,708 | |
Capitalized commission costs | 15,753 | ||||
Commission expenses | 1,414 | 4,278 | |||
Prepaid Expenses And Other Current Assets | |||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Capitalized commission costs | 3,770 | ||||
Other Noncurrent Assets | |||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Capitalized commission costs | 11,983 | ||||
Accounting Standards Update 2014-09 | |||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Retained earnings | $ 87,127 | ||||
Accounting Standards Update 2014-09 | ASC 606 Transition Adjustments | |||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Retained earnings | (12,568) | (12,568) | $ 8,419 | ||
Revenue, Remaining Performance Obligation, Amount | $ 456,000 | $ 456,000 | |||
Percentage of revenue expected to recognize as services rendered and goods delivered | 9.00% | 9.00% | |||
Percentage of revenue expected to recognize over next 12 months | 46.00% | 46.00% | |||
[1] | Includes cumulative effect adjustment related to the adoption of ASC 606, as defined in Note 1. See Note 1 for additional details. |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Summary of Impact of Adoption of ASC 606 on Consolidated Balance Sheet and Consolidated Statements of Net Income and Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Apr. 01, 2018 | Mar. 31, 2018 | ||
ASSETS | |||||||
Accounts receivable, net | $ 84,360 | $ 84,360 | $ 84,962 | ||||
Contract assets | 11,281 | 11,281 | |||||
Income taxes receivable | 6,061 | 6,061 | 8,122 | ||||
Prepaid expenses and other current assets | 18,505 | 18,505 | 17,180 | ||||
Deferred income taxes, net | 6,417 | 6,417 | 9,219 | ||||
Contract assets, net of current | 3,608 | 3,608 | |||||
Other assets | 29,620 | 29,620 | 18,795 | ||||
LIABILITIES | |||||||
Contract liabilities | 50,449 | 50,449 | 54,079 | ||||
Accrued compensation and related benefits | 24,179 | 24,179 | 27,910 | ||||
Other current liabilities | 41,610 | 41,610 | 48,317 | ||||
Contract liabilities, net of current | 1,173 | ||||||
Shareholders' equity: | |||||||
Retained earnings | [1] | 107,693 | 107,693 | $ 78,708 | |||
Revenues: | |||||||
Total revenues | 130,867 | $ 131,715 | 394,388 | $ 395,244 | |||
Total cost of revenue | 61,671 | 61,634 | 184,640 | 179,558 | |||
Gross profit | 69,196 | 70,081 | 209,748 | 215,686 | |||
Operating expenses: | |||||||
Selling, general and administrative | 41,304 | 43,563 | 120,169 | 127,517 | |||
Research and development costs, net | 20,682 | 20,645 | 61,181 | 60,161 | |||
Amortization of acquired intangible assets | 1,027 | 1,956 | 3,316 | 6,015 | |||
Total operating expenses | 63,013 | 66,294 | 184,666 | 193,823 | |||
Income from operations | 6,183 | 3,787 | 25,082 | 21,863 | |||
Interest and other income, net | (903) | (1,722) | |||||
Income before provision for income taxes | 5,280 | 3,028 | 23,360 | 19,601 | |||
Provision for income taxes | 456 | 1,487 | 2,794 | 6,134 | |||
Net income | 4,824 | $ 1,541 | 20,566 | $ 13,467 | |||
Recurring | |||||||
Revenues: | |||||||
Total revenues | 117,446 | 353,770 | |||||
Software, Hardware, and Other Non-recurring | |||||||
Revenues: | |||||||
Total revenues | 13,421 | 40,618 | |||||
Adoption of ASC 606 | |||||||
ASSETS | |||||||
Accounts receivable, net | $ 87,342 | ||||||
Contract assets | 13,446 | ||||||
Prepaid expenses and other current assets | 16,957 | ||||||
Deferred income taxes, net | 6,335 | ||||||
Contract assets, net of current | 2,731 | ||||||
Other assets | 25,474 | ||||||
LIABILITIES | |||||||
Contract liabilities | 58,253 | ||||||
Accrued compensation and related benefits | 28,655 | ||||||
Other current liabilities | 58,281 | ||||||
Shareholders' equity: | |||||||
Retained earnings | 87,127 | ||||||
Adoption of ASC 606 | ASC 606 Transition Adjustments | |||||||
ASSETS | |||||||
Accounts receivable, net | 1,298 | 1,298 | 2,380 | ||||
Contract assets | (11,281) | (11,281) | 13,446 | ||||
Income taxes receivable | 1,550 | 1,550 | |||||
Prepaid expenses and other current assets | (2,935) | (2,935) | (223) | ||||
Deferred income taxes, net | 2,884 | 2,884 | (2,884) | ||||
Contract assets, net of current | (3,608) | (3,608) | 2,731 | ||||
Other assets | (6,808) | (6,808) | 6,679 | ||||
LIABILITIES | |||||||
Contract liabilities | 235 | 235 | 4,174 | ||||
Accrued compensation and related benefits | 300 | 300 | 745 | ||||
Other current liabilities | (7,777) | (7,777) | 9,964 | ||||
Contract liabilities, net of current | 910 | 910 | (1,173) | ||||
Shareholders' equity: | |||||||
Retained earnings | (12,568) | (12,568) | $ 8,419 | ||||
Revenues: | |||||||
Total revenues | (524) | (1,367) | |||||
Total cost of revenue | 36 | 130 | |||||
Gross profit | (560) | (1,497) | |||||
Operating expenses: | |||||||
Selling, general and administrative | 1,050 | 4,202 | |||||
Total operating expenses | 1,050 | 4,202 | |||||
Income from operations | (1,610) | (5,699) | |||||
Income before provision for income taxes | (1,610) | (5,699) | |||||
Provision for income taxes | (553) | (1,550) | |||||
Net income | (1,057) | (4,149) | |||||
Adoption of ASC 606 | ASC 606 Transition Adjustments | Recurring | |||||||
Revenues: | |||||||
Total revenues | (557) | (663) | |||||
Adoption of ASC 606 | ASC 606 Transition Adjustments | Software, Hardware, and Other Non-recurring | |||||||
Revenues: | |||||||
Total revenues | 33 | (704) | |||||
Adoption of ASC 606 | Calculated under Revenue Guidance in Effect before Topic 606 | |||||||
ASSETS | |||||||
Accounts receivable, net | 85,658 | 85,658 | |||||
Income taxes receivable | 7,611 | 7,611 | |||||
Prepaid expenses and other current assets | 15,570 | 15,570 | |||||
Deferred income taxes, net | 9,301 | 9,301 | |||||
Other assets | 22,812 | 22,812 | |||||
LIABILITIES | |||||||
Contract liabilities | 50,684 | 50,684 | |||||
Accrued compensation and related benefits | 24,479 | 24,479 | |||||
Other current liabilities | 33,833 | 33,833 | |||||
Contract liabilities, net of current | 910 | 910 | |||||
Shareholders' equity: | |||||||
Retained earnings | 95,125 | 95,125 | |||||
Revenues: | |||||||
Total revenues | 130,343 | 393,021 | |||||
Total cost of revenue | 61,707 | 184,770 | |||||
Gross profit | 68,636 | 208,251 | |||||
Operating expenses: | |||||||
Selling, general and administrative | 42,354 | 124,371 | |||||
Research and development costs, net | 20,682 | 61,181 | |||||
Amortization of acquired intangible assets | 1,027 | 3,316 | |||||
Total operating expenses | 64,063 | 188,868 | |||||
Income from operations | 4,573 | 19,383 | |||||
Interest and other income, net | (903) | (1,722) | |||||
Income before provision for income taxes | 3,670 | 17,661 | |||||
Provision for income taxes | (97) | 1,244 | |||||
Net income | 3,767 | 16,417 | |||||
Adoption of ASC 606 | Calculated under Revenue Guidance in Effect before Topic 606 | Recurring | |||||||
Revenues: | |||||||
Total revenues | 116,889 | 353,107 | |||||
Adoption of ASC 606 | Calculated under Revenue Guidance in Effect before Topic 606 | Software, Hardware, and Other Non-recurring | |||||||
Revenues: | |||||||
Total revenues | $ 13,454 | $ 39,914 | |||||
[1] | Includes cumulative effect adjustment related to the adoption of ASC 606, as defined in Note 1. See Note 1 for additional details. |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Schedule of Revenues Disaggregated by Major Revenue Categories and by Occurrence (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | $ 130,867 | $ 131,715 | $ 394,388 | $ 395,244 |
Subscription Services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | 30,035 | 26,596 | 87,618 | 78,959 |
Support And Maintenance | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | 39,714 | 40,362 | 120,556 | 123,171 |
Managed Services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | 24,251 | 28,903 | 74,048 | 86,040 |
Electronic Data Interchange And Data Services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | 23,446 | 23,136 | 71,548 | 69,446 |
Recurring | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | 117,446 | 118,997 | 353,770 | 357,616 |
Software License and Hardware | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | 9,217 | 7,759 | 26,013 | 24,032 |
Other Non-recurring Services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | 4,204 | 4,959 | 14,605 | 13,596 |
Software, Hardware, and Other Non-recurring | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | $ 13,421 | $ 12,718 | $ 40,618 | $ 37,628 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Assets and Liabilities on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2018 | Mar. 31, 2018 | |
Carrying Value | |||
ASSETS | |||
Cash and cash equivalents | [1] | $ 30,054 | $ 28,845 |
Restricted cash and cash equivalents | 7,389 | 2,373 | |
Total | 37,443 | 31,218 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value | |||
ASSETS | |||
Cash and cash equivalents | [1] | 30,054 | 28,845 |
Restricted cash and cash equivalents | 7,389 | 2,373 | |
Total | 37,443 | 31,218 | |
Significant Other Observable Inputs (Level 2) | Fair Value | |||
ASSETS | |||
Cash and cash equivalents | [1] | 0 | 0 |
Restricted cash and cash equivalents | 0 | 0 | |
Total | 0 | 0 | |
Unobservable Inputs (Level 3) | Fair Value | |||
ASSETS | |||
Cash and cash equivalents | [1] | 0 | 0 |
Restricted cash and cash equivalents | 0 | 0 | |
Total | $ 0 | $ 0 | |
[1] | Cash equivalents consist primarily of money market funds. |
Business Combinations - Additio
Business Combinations - Additional Information (Details) - USD ($) $ in Thousands | Jan. 31, 2018 | Aug. 16, 2017 | Apr. 14, 2017 | Dec. 31, 2018 |
Inforth Technologies, LLC | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, effective date of acquisition | Jan. 31, 2018 | |||
Business acquisition, date of acquisition agreement | Jan. 31, 2018 | |||
Total purchase price | $ 4,337 | |||
Finite-lived intangible assets acquired | $ 3,200 | |||
Inforth Technologies, LLC | Computer Software, Intangible Asset | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible asset, useful life | 5 years | |||
EagleDream Health | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, effective date of acquisition | Aug. 16, 2017 | |||
Business acquisition, date of acquisition agreement | Jul. 31, 2017 | |||
Total purchase price | $ 25,609 | |||
Finite-lived intangible assets acquired | $ 13,400 | |||
Acquired finite-lived intangible assets, weighted average useful life | 5 years 1 month 6 days | |||
EagleDream Health | Computer Software, Intangible Asset | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible asset, useful life | 5 years | |||
EagleDream Health | Customer Relationships | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible asset, useful life | 8 years | |||
Entrada | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, effective date of acquisition | Apr. 14, 2017 | |||
Business acquisition, date of acquisition agreement | Apr. 11, 2017 | |||
Total purchase price | $ 33,958 | |||
Finite-lived intangible assets acquired | $ 15,400 | |||
Acquired finite-lived intangible assets, weighted average useful life | 6 years 1 month 6 days | |||
Entrada | Computer Software, Intangible Asset | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible asset, useful life | 5 years | |||
Entrada | Customer Relationships | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible asset, useful life | 10 years | |||
Entrada | Trade Names | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible asset, useful life | 5 years |
Business Combinations - Summary
Business Combinations - Summary of Purchase Price Allocation (Details) - USD ($) $ in Thousands | Jan. 31, 2018 | Aug. 16, 2017 | Apr. 14, 2017 | Dec. 31, 2018 | Mar. 31, 2018 |
Fair value of identifiable intangible assets acquired: | |||||
Goodwill | $ 218,771 | $ 218,875 | |||
Inforth Technologies, LLC | |||||
Business Acquisition [Line Items] | |||||
Initial purchase price | $ 4,000 | ||||
Settlement of pre-existing net liabilities | 337 | ||||
Total purchase price | 4,337 | ||||
Fair value of the net tangible assets acquired and liabilities assumed: | |||||
Acquired cash and cash equivalents | 25 | ||||
Accounts receivable | 6 | ||||
Accrued compensation and related benefits | (49) | ||||
Other liabilities | (22) | ||||
Total net tangible assets acquired and liabilities assumed | (40) | ||||
Fair value of identifiable intangible assets acquired: | |||||
Goodwill | 1,177 | ||||
Total identifiable intangible assets acquired | 4,377 | ||||
Total purchase price | 4,337 | ||||
EagleDream Health | |||||
Business Acquisition [Line Items] | |||||
Initial purchase price | $ 26,000 | ||||
Working capital and other adjustments | (391) | ||||
Total purchase price | 25,609 | ||||
Fair value of the net tangible assets acquired and liabilities assumed: | |||||
Acquired cash and cash equivalents | 573 | ||||
Accounts receivable | 217 | ||||
Prepaid expense and other current assets | 20 | ||||
Accounts payable | (115) | ||||
Accrued compensation and related benefits | (691) | ||||
Deferred revenues | (394) | ||||
Deferred income tax liability | (1,707) | ||||
Other liabilities | (122) | ||||
Total net tangible assets acquired and liabilities assumed | (2,219) | ||||
Fair value of identifiable intangible assets acquired: | |||||
Goodwill | 14,428 | ||||
Total identifiable intangible assets acquired | 27,828 | ||||
Total purchase price | 25,609 | ||||
Entrada | |||||
Business Acquisition [Line Items] | |||||
Initial purchase price | $ 34,000 | ||||
Working capital and other adjustments | (42) | ||||
Total purchase price | 33,958 | ||||
Fair value of the net tangible assets acquired and liabilities assumed: | |||||
Acquired cash and cash equivalents | 102 | ||||
Accounts receivable | 1,836 | ||||
Prepaid expense and other current assets | 145 | ||||
Equipment and improvements | 163 | ||||
Capitalized software costs | 364 | ||||
Deferred income tax asset | 117 | ||||
Accounts payable | (639) | ||||
Accrued compensation and related benefits | (120) | ||||
Deferred revenues | (234) | ||||
Other liabilities | (444) | ||||
Total net tangible assets acquired and liabilities assumed | 1,290 | ||||
Fair value of identifiable intangible assets acquired: | |||||
Goodwill | 17,268 | ||||
Total identifiable intangible assets acquired | 32,668 | ||||
Total purchase price | 33,958 | ||||
Computer Software, Intangible Asset | Inforth Technologies, LLC | |||||
Fair value of identifiable intangible assets acquired: | |||||
Total identifiable intangible assets acquired | $ 3,200 | ||||
Computer Software, Intangible Asset | EagleDream Health | |||||
Fair value of identifiable intangible assets acquired: | |||||
Total identifiable intangible assets acquired | 12,800 | ||||
Computer Software, Intangible Asset | Entrada | |||||
Fair value of identifiable intangible assets acquired: | |||||
Total identifiable intangible assets acquired | 10,500 | ||||
Customer Relationships | EagleDream Health | |||||
Fair value of identifiable intangible assets acquired: | |||||
Total identifiable intangible assets acquired | $ 600 | ||||
Customer Relationships | Entrada | |||||
Fair value of identifiable intangible assets acquired: | |||||
Total identifiable intangible assets acquired | 3,300 | ||||
Trade Names | Entrada | |||||
Fair value of identifiable intangible assets acquired: | |||||
Total identifiable intangible assets acquired | $ 1,600 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Mar. 31, 2018 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 218,771 | $ 218,875 |
Intangible Assets - Intangible
Intangible Assets - Intangible Assets, Other than Capitalized Software Development Costs (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Mar. 31, 2018 |
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 148,760 | $ 148,760 |
Accumulated amortization | (90,849) | (74,669) |
Net intangible assets | 57,911 | 74,091 |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 54,450 | 54,450 |
Accumulated amortization | (38,847) | (35,531) |
Net intangible assets | 15,603 | 18,919 |
Computer Software, Intangible Asset | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 94,310 | 94,310 |
Accumulated amortization | (52,002) | (39,138) |
Net intangible assets | $ 42,308 | $ 55,172 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite Lived Intangible Assets [Line Items] | ||||
Amortization of other intangibles | $ 16,180 | $ 17,350 | ||
Customer Relations and Contracts | Operating Expense | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Amortization of other intangibles | $ 1,028 | $ 1,956 | 3,317 | 6,015 |
Computer Software, Intangible Asset | Cost of Revenue | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Amortization of other intangibles | $ 4,288 | $ 4,127 | $ 12,863 | $ 11,335 |
Intangible Assets - Estimated A
Intangible Assets - Estimated Amortization of Intangible Assets with Determinable Lives (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Mar. 31, 2018 |
Finite Lived Intangible Assets [Line Items] | ||
2019 (remaining three months) | $ 5,316 | |
2,020 | 20,611 | |
2,021 | 16,071 | |
2,022 | 7,753 | |
2,023 | 3,627 | |
2024 and beyond | 4,533 | |
Net intangible assets | 57,911 | $ 74,091 |
Operating Expense | ||
Finite Lived Intangible Assets [Line Items] | ||
2019 (remaining three months) | 1,028 | |
2,020 | 3,460 | |
2,021 | 2,803 | |
2,022 | 2,273 | |
2,023 | 1,866 | |
2024 and beyond | 4,173 | |
Net intangible assets | 15,603 | |
Cost of Revenue | ||
Finite Lived Intangible Assets [Line Items] | ||
2019 (remaining three months) | 4,288 | |
2,020 | 17,151 | |
2,021 | 13,268 | |
2,022 | 5,480 | |
2,023 | 1,761 | |
2024 and beyond | 360 | |
Net intangible assets | $ 42,308 |
Capitalized Software Costs - Ca
Capitalized Software Costs - Capitalized Software Development Costs (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Mar. 31, 2018 |
Research And Development [Abstract] | ||
Gross carrying amount | $ 51,760 | $ 50,361 |
Accumulated amortization | (18,292) | (24,043) |
Net capitalized software costs | $ 33,468 | $ 26,318 |
Capitalized Software Costs - Ad
Capitalized Software Costs - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Research And Development [Abstract] | ||||
Retired fully amortized capitalized software costs | $ 13,453 | $ 13,453 | ||
Amortization of capitalized software costs | $ 2,811 | $ 1,838 | $ 7,703 | $ 4,409 |
Capitalized Software Costs - Es
Capitalized Software Costs - Estimated Amortization of Capitalized Software Costs (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Mar. 31, 2018 |
Finite Lived Intangible Assets [Line Items] | ||
2019 (remaining three months) | $ 5,316 | |
2,020 | 20,611 | |
2,021 | 16,071 | |
2,022 | 7,753 | |
Total | 57,911 | $ 74,091 |
Capitalized Software Costs | ||
Finite Lived Intangible Assets [Line Items] | ||
2019 (remaining three months) | 4,900 | |
2,020 | 15,400 | |
2,021 | 8,800 | |
2,022 | 4,368 | |
Total | $ 33,468 |
Line of Credit - Additional Inf
Line of Credit - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2018 | Mar. 29, 2018 | Jan. 04, 2016 | |
Line Of Credit Facility [Line Items] | |||||||
Line of credit | $ 27,000,000 | $ 27,000,000 | $ 37,000,000 | ||||
Remaining borrowing capacity | 273,000,000 | 273,000,000 | |||||
Interest expense | 516,000 | $ 463,000 | 1,657,000 | $ 1,390,000 | |||
Amortization of debt issuance costs | 177,000 | $ 269,000 | 532,000 | $ 807,000 | |||
Revolving Credit Facility | |||||||
Line Of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 400,000,000 | $ 400,000,000 | $ 300,000,000 | $ 250,000,000 | |||
Credit agreement maturity date | Mar. 29, 2023 | ||||||
Additional borrowing capacity | 100,000,000 | ||||||
Letter of Credit | |||||||
Line Of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | 10,000,000 | ||||||
Swing-Line Loans | |||||||
Line Of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 10,000,000 |
Composition of Certain Financ_3
Composition of Certain Financial Statement Captions - Summary of Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Mar. 31, 2018 |
Accounts Receivable Net Current [Abstract] | ||
Accounts receivable, gross | $ 88,934 | $ 94,358 |
Sales return reserve | (5,520) | |
Allowance for doubtful accounts | (4,574) | (3,876) |
Accounts receivable, net | $ 84,360 | $ 84,962 |
Composition of Certain Financ_4
Composition of Certain Financial Statement Captions - Summary of Prepaid Expense and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Mar. 31, 2018 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Prepaid expenses | $ 13,603 | $ 13,865 |
Capitalized commissions costs | 3,770 | 2,828 |
Other current assets | 1,132 | 487 |
Prepaid expenses and other current assets | $ 18,505 | $ 17,180 |
Composition of Certain Financ_5
Composition of Certain Financial Statement Captions - Summary of Equipment and Improvements (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Mar. 31, 2018 |
Property Plant And Equipment [Line Items] | ||
Equipment and improvements, gross | $ 72,032 | $ 70,599 |
Accumulated depreciation and amortization | (48,863) | (43,804) |
Equipment and improvements, net | 23,169 | 26,795 |
Computer Equipment | ||
Property Plant And Equipment [Line Items] | ||
Equipment and improvements, gross | 28,205 | 27,347 |
Internal-Use Software | ||
Property Plant And Equipment [Line Items] | ||
Equipment and improvements, gross | 17,136 | 15,804 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Equipment and improvements, gross | 10,966 | 11,432 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Equipment and improvements, gross | $ 15,725 | $ 16,016 |
Composition of Certain Financ_6
Composition of Certain Financial Statement Captions - Summary of Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Mar. 31, 2018 |
Other Assets Noncurrent Disclosure [Abstract] | ||
Capitalized commission costs | $ 11,983 | $ 1,394 |
Deposits | 5,594 | 4,666 |
Debt issuance costs | 3,011 | 3,544 |
Other noncurrent assets | 9,032 | 9,191 |
Other assets | $ 29,620 | $ 18,795 |
Composition of Certain Financ_7
Composition of Certain Financial Statement Captions - Summary of Accrued Compensation and Related Benefits (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Mar. 31, 2018 |
Employee Related Liabilities Current [Abstract] | ||
Payroll, bonus and commission | $ 15,203 | $ 18,120 |
Vacation | 8,976 | 9,790 |
Accrued compensation and related benefits | $ 24,179 | $ 27,910 |
Composition of Certain Financ_8
Composition of Certain Financial Statement Captions - Summary of Other Current and Noncurrent Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Mar. 31, 2018 |
Other Liabilities [Abstract] | ||
Sales returns reserves and other customer liabilities | $ 7,777 | |
Care services liabilities | 7,389 | $ 2,373 |
Customer credit balances and deposits | 3,879 | 4,287 |
Accrued hosting costs | 3,775 | 1,600 |
Accrued employee benefits and withholdings | 2,777 | 1,636 |
Accrued self insurance expense | 2,416 | 2,145 |
Accrued consulting and outside services | 2,278 | 4,428 |
Accrued EDI expense | 1,982 | 2,310 |
Accrued outsourcing costs | 1,759 | 2,898 |
Deferred rent | 1,389 | 1,594 |
Accrued royalties | 917 | 1,400 |
Sales tax payable | 539 | 499 |
Remaining lease obligations | 524 | 672 |
Accrued legal expense | 293 | 1,793 |
Accrued securities litigation settlement | 19,000 | |
Other accrued expenses | 3,916 | 1,682 |
Other current liabilities | 41,610 | 48,317 |
Deferred rent | 9,427 | 9,902 |
Uncertain tax positions | 2,690 | 2,419 |
Remaining lease obligations | 607 | 962 |
Other liabilities | 189 | 211 |
Other noncurrent liabilities | $ 12,913 | $ 13,494 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | |||||
Provision for income taxes | $ 456 | $ 1,487 | $ 2,794 | $ 6,134 | |
Effective tax rate (as a percentage) | 8.60% | 49.10% | 12.00% | 31.30% | |
Federal corporate tax rate | 21.00% | 35.00% | 21.00% | 35.00% | |
Liability for unrecognized tax benefits | $ 2,419 | $ 2,690 | $ 2,690 | ||
Period within which the company does not anticipate total unrecognized tax benefits to change | within the next twelve months | ||||
Tax effect from change in tax rate | $ (231) | ||||
Income tax expense due to tax reform | $ 1,381 | ||||
Tax effect from change in tax rate | $ (793) | $ (793) |
Earnings Per Share - Weighted A
Earnings Per Share - Weighted Average Shares Outstanding for Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings per share — Basic: | ||||
Net income | $ 4,824 | $ 1,541 | $ 20,566 | $ 13,467 |
Weighted-average shares outstanding — Basic | 64,637 | 63,706 | 64,308 | 63,287 |
Net income per common share — Basic | $ 0.07 | $ 0.02 | $ 0.32 | $ 0.21 |
Earnings per share — Diluted: | ||||
Net income | $ 4,824 | $ 1,541 | $ 20,566 | $ 13,467 |
Weighted-average shares outstanding — Basic | 64,637 | 63,706 | 64,308 | 63,287 |
Effect of potentially dilutive securities | 139 | 2 | 191 | 9 |
Weighted-average shares outstanding — Diluted | 64,776 | 63,708 | 64,499 | 63,296 |
Net income per common share — Diluted | $ 0.07 | $ 0.02 | $ 0.32 | $ 0.21 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | ||||
Options excluded from the computation of diluted net income per share | 2,532 | 3,228 | 1,913 | 2,785 |
Share Based Awards - Additional
Share Based Awards - Additional Information (Details) - USD ($) | Oct. 23, 2018 | Dec. 29, 2016 | Aug. 11, 2014 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2018 | Aug. 31, 2015 | Oct. 31, 2005 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Outstanding stock options | 3,571,775 | 3,571,775 | 3,670,170 | |||||||
Weighted-average grant date fair value per share of stock options | $ 7.18 | $ 5.59 | ||||||||
Fair value of options vested | $ 3,335,000 | $ 2,154,000 | ||||||||
Total share-based compensation | $ 4,698,000 | $ 3,453,000 | $ 11,949,000 | 8,585,000 | ||||||
Percentage of performance stock units tied to 3-year total shareholder return | 34.00% | |||||||||
Percentage of performance stock units tied to fiscal year 2021 revenue | 33.00% | |||||||||
Percentage performance stock units tied to fiscal year 2021 adjusted earnings per share goals | 33.00% | |||||||||
Employee Stock Options | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Outstanding stock options | 3,210,955 | 3,210,955 | ||||||||
Total unrecognized compensation costs | $ 9,928,000 | $ 9,928,000 | ||||||||
Stock option recognized over weighted average period (in years) | 2 years 6 months | |||||||||
Restricted Stock | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Share-based compensation arrangement by share-based payment award, non-option equity instruments, outstanding, number | 1,871,428 | 1,871,428 | 1,820,910 | |||||||
Stock option recognized over weighted average period (in years) | 1 year 9 months 18 days | |||||||||
Total share-based compensation | $ 3,168,000 | 2,333,000 | $ 7,921,000 | 6,079,000 | ||||||
Total unrecognized compensation costs | 23,305,000 | $ 23,305,000 | ||||||||
Share-based compensation arrangement by share-based payment award, options, grants in period, net of forfeitures | 859,345 | |||||||||
Restricted Stock | Minimum | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Vesting period | 1 year | |||||||||
Restricted Stock | Maximum | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Vesting period | 3 years | |||||||||
Performance Shares | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Number of shares granted | 123,082 | |||||||||
Total share-based compensation | 74,000 | $ 215,000 | ||||||||
Vesting period | 4 years | |||||||||
Performance Stock Unit Awards | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Total share-based compensation | $ 230,000 | |||||||||
Share-based compensation arrangement by share-based payment award, options, grants in period, net of forfeitures | 248,140 | |||||||||
Percentage of shares issued, minimum | 50.00% | |||||||||
Percentage of shares issued, maximum | 200.00% | |||||||||
2005 Employee Stock Option and Incentive Plan | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Common stock reserved for issuance | 4,800,000 | |||||||||
Outstanding stock options | 360,820 | 360,820 | ||||||||
2005 Employee Stock Option and Incentive Plan | Employee Stock Options | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Expiration period (in years) | 10 years | |||||||||
Share-based compensation award plan , expiration date | May 25, 2015 | |||||||||
2015 Plan | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Common stock reserved for issuance | 6,000,000 | 6,000,000 | ||||||||
Common stock reserved | 11,500,000 | |||||||||
Shares available for future grant | 6,590,965 | 6,590,965 | ||||||||
2015 Plan | Employee Stock Options | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Expiration period (in years) | 10 years | |||||||||
Number of shares granted | 326,130 | |||||||||
2015 Plan | Performance Shares | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Share-based compensation arrangement by share-based payment award, non-option equity instruments, outstanding, number | 55,415 | 55,415 | ||||||||
Share-based compensation arrangement by share-based payment award, non-option equity instruments, outstanding, number | 55,415 | 55,415 | ||||||||
Employee Share Purchase Plan | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Common stock reserved for issuance | 4,000,000 | 3,563,985 | 3,563,985 | |||||||
Total share-based compensation | $ 123,000 | $ 88,000 | $ 355,000 | $ 265,000 | ||||||
Maximum percentage of gross payroll deduction | 15.00% | |||||||||
Purchase price as a percentage of fair market value | 90.00% | |||||||||
Maximum shares purchase in a single transaction | 1,500 | |||||||||
Maximum amount purchased in a calendar year | $ 25,000 | |||||||||
Shares issued | 436,015 | 436,015 |
Share Based Awards - Summary of
Share Based Awards - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of Shares, Outstanding, Beginning | 3,670,170 | |
Number of Shares, Granted | 326,130 | |
Number of Shares, Exercised | (199,095) | |
Number of Shares, Forfeited/Canceled | (223,030) | |
Number of Shares, Expired | (2,400) | |
Number of Shares, Outstanding, Ending | 3,571,775 | 3,670,170 |
Vested and expected to vest, December 31, 2018 | 3,206,949 | |
Exercisable, December 31, 2018 | 1,377,170 | |
Weighted- Average Exercise Price per Share | ||
Weighted-Average Exercise Price per Share, Outstanding, Beginning | $ 15.51 | |
Weighted-Average Exercise Price per Share, Granted | 16.40 | |
Weighted-Average Exercise Price per Share, Exercised | 16.05 | |
Weighted-Average Exercise Price per Share, Forfeited/Cancelled | 20.97 | |
Weighted-Average Exercise Price per Share, Expired | 28.15 | |
Weighted-Average Exercise Price per Share, Outstanding, Ending | 15.32 | $ 15.51 |
Vested and expected to vest, December 31, 2018 (in dollars per share) | 15.38 | |
Exercisable, December 31, 2018 (in dollars per share) | $ 16.22 | |
Weighted- Average Remaining Contractual Life (years) | ||
Outstanding | 5 years 9 months 18 days | 6 years 2 months 12 days |
Granted | 7 years | |
Exercised | 4 years 3 months 19 days | |
Forfeited/Canceled | 4 years 4 months 24 days | |
Vested and expected to vest, December 31, 2018 | 5 years 8 months 12 days | |
Exercisable, December 31, 2018 | 5 years | |
Aggregate Intrinsic Value | ||
Outstanding | $ 3,295 | $ 766 |
Granted | 2 | |
Exercised | 924 | |
Vested and expected to vest, December 31, 2018 | 2,972 | |
Exercisable, December 31, 2018 | $ 1,349 |
Share Based Awards - Schedule o
Share Based Awards - Schedule of Assumptions Used in Black-Scholes Model to Estimate Fair Value of Stock Awards (Details) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term | 6 years 1 month 6 days | |||
Expected volatility | 34.60% | |||
Expected volatility, minimum | 37.00% | 34.60% | 37.00% | |
Expected volatility, maximum | 37.50% | 36.80% | 37.70% | |
Risk-free rate | 3.10% | |||
Risk-free rate, minimum | 2.10% | 2.80% | 1.90% | |
Risk-free rate, maximum | 2.20% | 3.10% | 2.20% | |
Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term | 5 years 7 months 6 days | 6 years 1 month 6 days | 5 years 7 months 6 days | |
Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term | 6 years 1 month 6 days | 6 years 3 months 18 days | 6 years 1 month 6 days |
Share Based Awards - Summary _2
Share Based Awards - Summary of Stock Options By Grant Date (Details) | 9 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Exercise Price Granted (in USD per share) | $ / shares | $ 16.40 |
2015 Plan | Employee Stock Options | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of shares granted | shares | 326,130 |
2015 Plan | Employee Stock Options | May 30, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of shares granted | shares | 241,130 |
Exercise Price Granted (in USD per share) | $ / shares | $ 16.83 |
Vesting period | 4 years |
Expiration | Jun. 1, 2026 |
2015 Plan | Employee Stock Options | August 3, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of shares granted | shares | 60,000 |
Exercise Price Granted (in USD per share) | $ / shares | $ 21.27 |
Vesting period | 4 years |
Expiration | Aug. 3, 2026 |
2015 Plan | Employee Stock Options | November 2, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of shares granted | shares | 25,000 |
Exercise Price Granted (in USD per share) | $ / shares | $ 15.09 |
Vesting period | 4 years |
Expiration | Nov. 2, 2026 |
Share Based Awards - Summary _3
Share Based Awards - Summary of Non-vested Stock Option (Details) - $ / shares | 9 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | ||
Non-Vested Number of Shares, Beginning Balance | 2,657,005 | |
Non-Vested Number of Shares Granted | 326,130 | |
Non-Vested Number of Shares Vested | (650,150) | |
Non-Vested Number of Shares Forfeited | (138,380) | |
Non-Vested Number of Shares, Ending Balance | 2,194,605 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Weighted-Average Grant-Date Fair Value per Share, Nonvested, Beginning | $ 5.18 | |
Weighted-Average Grant-Date Fair Value per Share, Granted | 7.18 | $ 5.59 |
Weighted-Average Grant-Date Fair Value per Share, Vested | 5.13 | |
Weighted-Average Grant-Date Fair Value per Share, Forfeited | 5.61 | |
Weighted-Average Grant-Date Fair Value per Share, Nonvested, Ending | $ 5.46 |
Share Based Awards - Summary _4
Share Based Awards - Summary of Restricted Stock Awards Activity (Details) - Restricted Stock | 9 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |
Number of Shares Outstanding Beginning Balance | shares | 1,820,910 |
Granted | shares | 859,345 |
Vested | shares | (516,505) |
Canceled | shares | (292,322) |
Number of Shares Outstanding Ending Balance | shares | 1,871,428 |
Weighted Average Grant-Date Fair Value per Share, Beginning of Period | $ / shares | $ 14.52 |
Weighted Average Grant-Date Fair Value per Share, Granted | $ / shares | 18.15 |
Weighted Average Grant-Date Fair Value per Share, Vested | $ / shares | 14.85 |
Weighted Average Grant-Date Fair Value per Share, Canceled | $ / shares | 14.66 |
Weighted Average Grant-Date Fair Value per Share, End of Period | $ / shares | $ 16.07 |
Commitments, Guarantees and C_2
Commitments, Guarantees and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | May 10, 2018 | Dec. 31, 2018 |
Disclosure Of Commitments And Contingencies [Line Items] | ||
Applicable program documentation period | 365 days | |
Federal Securities Class Action | ||
Disclosure Of Commitments And Contingencies [Line Items] | ||
Amount payable under settlement agreement | $ 19,000 |