View Filing Data

Print Document View Excel Document

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Sep. 30, 2018	Nov. 02, 2018
Document And Entity Information
Entity Registrant Name	8X8 INC /DE/
Entity Central Index Key	0001023731
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--03-31
Entity Small Business	false
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		95,371,181
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2019

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2018	Mar. 31, 2018
Current assets:
Cash and cash equivalents	$ 24,677	$ 31,703
Short-term investments	104,232	120,559
Accounts receivable, net	18,870	16,296
Deferred sales commission costs	13,656	0
Other current assets	13,889	10,040
Total current assets	175,324	178,598
Property and equipment, net	42,395	35,732
Intangible assets, net	12,162	11,958
Goodwill	39,495	40,054
Restricted cash	8,100	8,100
Deferred sales commission costs, noncurrent	29,229	0
Other assets	2,927	2,767
Total assets	309,632	277,209
Current liabilities:
Accounts payable	27,649	23,899
Accrued compensation	17,621	17,412
Accrued taxes	12,438	6,367
Deferred revenue	3,354	2,559
Other accrued liabilities	5,200	6,026
Total current liabilities	66,262	56,263
Non-current liabilities	4,007	2,172
Total liabilities	70,269	58,435
Commitments and contingencies (Note 6)
Stockholders' equity:
Preferred stock, $0.001 par value: Authorized: 5,000,000 shares; Issued and outstanding: no shares at September 30, 2018 and 2017	0	0
Common stock, $0.001 par value: Authorized: 200,000,000 shares; Issued and outstanding: 94,772,267 shares and 92,847,354 shares at September 30, 2018 and March 31, 2018 and 2017, respectively	95	93
Additional paid-in capital	445,103	425,790
Accumulated other comprehensive loss	(7,435)	(5,645)
Accumulated deficit	(198,400)	(201,464)
Total stockholders' equity	239,363	218,774
Total liabilities and stockholders' equity	$ 309,632	$ 277,209

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2018	Mar. 31, 2018
Stockholders' equity:
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value per share	$ 0.001	$ 0.001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	94,772,267	92,847,354
Common stock, shares outstanding	94,772,267	92,847,354

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues	$ 85,682	$ 72,483	$ 168,907	$ 141,581
Operating expenses:
Research and development	13,933	8,311	27,043	16,254
Sales and marketing	55,930	41,163	109,235	82,273
General and administrative	16,543	9,616	27,976	18,572
Total operating expenses	107,669	76,945	206,877	151,500
Loss from operations	(21,987)	(4,462)	(37,970)	(9,919)
Other income, net	635	463	1,354	2,515
Loss before income taxes	(21,352)	(3,999)	(36,616)	(7,404)
Provision (benefit) for income taxes	130	(3,453)	221	(4,689)
Net loss	$ (21,482)	$ (546)	$ (36,837)	$ (2,715)
Net loss per share:
Basic and diluted	$ (0.23)	$ (0.01)	$ (0.39)	$ (0.03)
Weighted average common shares outstanding:
Basic and diluted	93,831	91,689	93,449	91,667
Service
Revenue from Contract with Customer, Including Assessed Tax	$ 81,346	$ 68,123	$ 159,467	$ 133,214
Operating expenses:
Cost of Goods and Services Sold	15,866	12,757	30,945	24,419
Product
Revenue from Contract with Customer, Including Assessed Tax	4,336	4,360	9,440	8,367
Operating expenses:
Cost of Goods and Services Sold	$ 5,397	$ 5,098	$ 11,678	$ 9,982

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Statement of Comprehensive Income [Abstract]
Net loss	$ (21,482)	$ (546)	$ (36,837)	$ (2,715)
Other comprehensive income (loss), net of tax
Unrealized gain on investments in securities	149	198	262	225
Foreign currency translation adjustment	(379)	1,192	(2,051)	2,983
Comprehensive income (loss)	$ (21,712)	$ 844	$ (38,626)	$ 493

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net loss	$ (36,837)	$ (2,715)
Adjustments to reconcile net loss to net cash (used in) provided by operating activites:
Depreciation	4,231	3,962
Amortization of intangible assets	2,857	2,815
Amortization of capitalized software	3,749	581
Non-cash lease expenses	2,401	0
Stock-based compensation	19,040	13,008
Deferred income tax benefit	0	(4,862)
Gain on escrow settlement	0	(1,393)
Other	538	761
Changes in assets and liabilities:
Accounts receivable, net	(3,347)	(1,183)
Deferred sales commission costs	(4,675)	0
Other current and noncurrent assets	(1,452)	(3,485)
Accounts payable and accruals	8,131	3,399
Deferred revenue	814	286
Net cash (used in) provided by operating activities	(4,550)	11,174
Cash flows from investing activities:
Purchases of property and equipment	(2,878)	(4,021)
Purchase of business	(2,625)	0
Proceeds from escrow settlement	0	1,393
Capitalized software development costs	(11,386)	(5,203)
Proceeds from maturity of investments	35,455	45,850
Sales of investments	23,604	13,254
Purchase of investments	(42,437)	(57,561)
Net cash used in investing activities	(267)	(6,288)
Cash flows from financing activities:
Capital lease payments	(525)	(616)
Payment of contingent consideration and escrow	0	(150)
Repurchase and tax-related withholding of common stock	(8,183)	(13,842)
Proceeds from issuance of common stock under employee stock plans	6,720	2,788
Net cash used in financing activities	(1,988)	(11,820)
Effect of exchange rate changes on cash	(221)	474
Net decrease in cash and cash equivalents	(7,026)	(6,460)
Cash, cash equivalents, and restricted cash at the beginning of the period	39,803	41,030
Cash, cash equivalents, and restricted cash at the end of the period	32,777	34,570
Supplemental cash flow information
Income taxes paid	250	174
Interest paid	0	16
Property and equipment acquired under capital leases	$ 0	$ 765

DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - Note 1

6 Months Ended

Sep. 30, 2018

Notes to Financial Statements

DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - Note 1

1. DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES

DESCRIPTION OF BUSINESS

A provider of enterprise cloud communications solutions, 8x8, Inc. (8x8 or the Company) helps businesses get their employees, customers and applications more connected and productive worldwide. From one technology platform, the Company offers cloud phone, collaboration, conferencing, contact center, data analytics and other services to business customers on a Software-as-a-Service (SaaS) model. The Company's solutions offer a secure, reliable and simplified approach for businesses to transition their legacy, on-premises communications systems to the cloud. The comprehensive solution, built from owned core cloud technologies, enables 8x8 customers to rely on a single provider for their global communications, contact center and customer support requirements. Combining these services allows customers to eliminate information silos and expose vital, real-time communications data spanning multiple services, applications and devices which, in turn, can improve productivity, business performance and customer experience. The Company's customers are spread across more than 150 countries and range from small businesses to large enterprises with more than 10,000 employees.

BASIS OF PRESENTATION AND CONSOLIDATION

The Company's fiscal year ends on March 31 of each calendar year. Each reference to a fiscal year in these notes to the consolidated financial statements refers to the fiscal year ended March 31 of the calendar year indicated (for example, fiscal 2019 refers to the fiscal year ending March 31, 2019).

The accompanying interim consolidated financial statements are unaudited and have been prepared on substantially the same basis as our annual consolidated financial statements for the fiscal year ended March 31, 2018, with the exception of new revenue recognition guidance discussed in the recently adopted accounting principles section below. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (SEC), regarding interim financial reporting.

In the opinion of the Company's management, these interim consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of our financial position, results of operations, and cash flows for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates.

The March 31, 2018 year-end consolidated balance sheet data in this document were derived from audited consolidated financial statements and does not include all of the disclosures required by U.S. generally accepted accounting principles. These consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements as of and for the fiscal year ended March 31, 2018 and notes thereto included in the Company's fiscal 2018 Annual Report on Form 10-K.

The results of operations and cash flows for the interim periods included in these consolidated financial statements are not necessarily indicative of the results to be expected for any future period or the entire fiscal year.

The consolidated financial statements include the accounts of 8x8 and its subsidiaries. All material intercompany accounts and transactions have been eliminated.

ACQUISITION

In April 2018, the Company entered into an asset purchase agreement with MarianaIQ, Inc. The total aggregate purchase price consisted of cash paid at closing and cash deposited into escrow to be held for fifteen months as security against indemnity claims made by the Company after the closing date. See Note 11 for additional information.

USE OF ESTIMATES

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and equity and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including, but not limited to, those related to bad debts, returns reserve for expected cancellations, income and sales tax liabilities, stock-based compensation, and litigation and other contingencies. The Company bases its estimates on historical experience and on various other assumptions. Actual results could differ from those estimates under different assumptions or conditions.

SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies used in preparation of these consolidated financial statements are disclosed in our Annual Report on Form 10-K for the fiscal year ended March 31, 2018 filed with the SEC on May 30, 2018, and there have been no changes to the Company's significant accounting policies during the three months ended September 30, 2018 except for the accounting policies described below that were updated as a result of adopting Accounting Standards Update (ASU) 2014-9, Revenue from Contracts with Customers: Topic 606 (ASU 2014-9 or ASC 606). ASU 2014-9 also included Subtopic 340-40, Other Assets and Deferred Costs - Contracts with Customers, which sets forth the requirement of deferring incremental costs of obtaining a contract with a customer. All amounts and disclosures set forth herein are in compliance with these standards.

RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS

In May 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-9, which replaces numerous requirements in U.S. GAAP and provide companies with a single revenue recognition model for recognizing revenue from contracts with customers. ASC 606 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates are required with the revenue recognition process than were required under the previous guidance (ASC 605).

The new standard permits the use of either the full retrospective or modified retrospective transition method. The Company adopted the new standard effective April 1, 2018 using the modified retrospective method. Under the modified retrospective method, the comparative periods' information is not restated and continues to be reported under the accounting standards in effect in those prior periods. Instead, on April 1, 2018, the Company recognized the cumulative effect of initially applying ASC 606 as an adjustment to the opening balance of accumulated deficit and the corresponding balance sheet accounts, which resulted in a net decrease to accumulated deficit of $39.9 million. The impact on the Company's opening balances primarily relates to the capitalization of additional commission costs under ASC 606 in the amount of $38.2 million. Under ASC 605, the Company expensed all commission costs as incurred. Under ASC 606, the Company defers all incremental commission costs to obtain the contract and amortizes these costs over a benefit period of five years. The remaining $1.7 million impact of adopting the standard relates to revenue being recognized earlier under ASC 606 than it would have been under ASC 605, which resulted in a contract asset as of the adoption date.

See Note 2 for additional disclosure on the impact of adopting this standard.

RECENT ACCOUNTING PRONOUNCEMENTS

In February 2016, the FASB issued ASU 2016-2, Leases (Topic 842), along with amendments issued in 2018, which requires companies to generally recognize on the balance sheet operating and financing lease liabilities and corresponding right-of-use assets. The update also requires qualitative and quantitative disclosures designed to assess the amount, timing, and uncertainty of cash flows arising from leases. The update requires the use of a modified retrospective transition approach, which includes a number of optional practical expedients that entities may elect to apply. This amendment is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements.

In June 2018, the FASB issued ASU 2018-7, Compensation-Stock Compensation (Topic 718), which now provides guidance for share-based payments to non-employees, resulting in alignment in accounting for employees and non-employees. The amendment is effective for public companies with fiscal years beginning after December 15, 2018. Early adoption is permitted. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), which makes modifications to disclosure requirements on fair value measurements. The amendment is effective for public companies with fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements.

In August 2018, the FASB issued 2018-15, Intangibles-Goodwill and Other-Internal Use Software (Subtopic 350-40), which reduces complexity for the accounting for the accounting for costs of implementing a cloud computing service arrangement. The amendment is effective for public companies with fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements.

REVENUE RECOGNITION - Note 2

6 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

REVENUE RECOGNITION - Note 2

2. REVENUE RECOGNITION

Revenue Recognition under ASC 606

The Company recognizes service revenue, mainly from subscription services to its cloud-based voice, call center, video and collaboration solutions using the five-step model as prescribed by ASC 606:

• Identification of the contract, or contracts, with a customer;
• Identification of the performance obligations in the contract;
• Determination of the transaction price;
• Allocation of the transaction price to the performance obligations in the contract; and
• Recognition of revenue when or as, the Company satisfies a performance obligation.

The Company identifies performance obligations in contracts with customers, which may include subscription services and related usage, product revenue and professional services. The transaction price is determined based on the amount the Company expects to be entitled to in exchange for transferring the promised services or products to the customer. The transaction price in the contract is allocated to each distinct performance obligation in an amount that represents the relative amount of consideration expected to be received in exchange for satisfying each performance obligation. Revenue is recognized when performance obligations are satisfied. Revenues are recorded based on the transaction price excluding amounts collected on behalf of third parties such as sales and telecommunication taxes, which are collected on behalf of and remitted to governmental authorities. The Company usually bills its customers on a monthly basis. Contracts typically range from annual to multi-year agreements with payment terms of net 30 days or less. The Company occasionally allows a 30-day period to cancel a subscription and return products shipped for a full refund.

Judgments and Estimates

The estimation of variable consideration for each performance obligation requires the Company to make subjective judgments. The Company has service-level agreements with customers warranting defined levels of uptime reliability and performance. Customers may get credits or refunds if the Company fails to meet such levels. If the services do not meet certain criteria, fees are subject to adjustment or refund representing a form of variable consideration. The Company may impose minimum revenue commitments (MRC) on its customers at the inception of the contract. Thus, in estimating variable consideration for each of these performance obligations, the Company assesses both the probability of MRC occurring and the collectability of the MRC, of which both represent a form of variable consideration.

The Company enters into contracts with customers that regularly include promises to transfer multiple services and products, such as subscriptions, products, and professional services. For arrangements with multiple services, the Company evaluates whether the individual services qualify as distinct performance obligations. In its assessment of whether a service is a distinct performance obligation, the Company determines whether the customer can benefit from the service on its own or with other readily available resources, and whether the service is separately identifiable from other services in the contract. This evaluation requires the Company to assess the nature of each individual service offering and how the services are provided in the context of the contract, including whether the services are significantly integrated, highly interrelated, or significantly modify each other, which may require judgment based on the facts and circumstances of the contract.

When agreements involve multiple distinct performance obligations, the Company allocates arrangement consideration to all performance obligations at the inception of an arrangement based on the relative standalone selling prices (SSP) of each performance obligation. Usage fees deemed to be variable consideration meet the allocation exception for variable consideration. Where the Company has standalone sales data for its performance obligations which are indicative of the price at which the Company sells a promised good or service separately to a customer, such data is used to establish SSP. In instances where standalone sales data is not available for a particular performance obligation, the Company estimates SSP by the use of observable market and cost-based inputs. The Company continues to review the factors used to establish list price and will adjust standalone selling price methodologies as necessary on a prospective basis.

Service Revenue

Service revenue from subscriptions to the Company's cloud-based technology platform is recognized over time on a ratable basis over the contractual subscription term beginning on the date that the platform is made available to the customer. Payments received in advance of subscription services being rendered are recorded as a deferred revenue. Usage fees, either bundled or not bundled, are recognized when the Company has a right to invoice. Professional services for configuration, system integration, optimization, customer training and/or education are primarily billed on a fixed-fee basis and are performed by the Company directly or, alternatively, customers may also choose to perform these services themselves or engage their own third-party service providers. Professional services revenue is recognized over time, generally as customer sites go live.

When a contract with a customer is signed, the Company assesses whether collection of the fees under the arrangement is probable. The Company estimates the amount to reserve for uncollectible amounts based on the aging of the contract balance, current and historical customer trends, and communications with its customers. These reserves are recorded as operating expenses against the contract asset (Accounts Receivable). In the normal course of business, the Company records revenue reductions for customer credits.

Product Revenue

The Company recognizes product revenue for telephony equipment at a point in time, when transfer of control has occurred, which is generally upon shipment. Sales returns are recorded as a reduction to revenue estimated based on historical experience.

Contract Assets

Contract assets are recorded for those parts of the contract consideration not yet invoiced but for which the performance obligations are completed. The revenue is recognized when the customer receives services or equipment for a reduced consideration at the onset of an arrangement, for example when the initial month's services or equipment are discounted. Contract assets are included in other current or non-current assets in the consolidated balance sheets, depending on if their reduction is recognized during the succeeding 12-month period or beyond.

Deferred Revenue

Deferred revenues represent billings or payments received in advance of revenue recognition and is recognized upon transfer of control. Balances consist primarily of annual plan subscription services and professional and training services not yet provided as of the balance sheet date. Deferred revenues that will be recognized during the succeeding 12-month period are recorded as current deferred revenues in the consolidated balance sheets, with the remainder recorded as other non-current liabilities in the consolidated balance sheets.

Costs to Obtain a Customer Contract

Sales commissions and related expenses are considered incremental and recoverable costs of acquiring customer contracts. These costs are capitalized as other current or non-current assets and amortized on a straight-line basis over the anticipated benefit period, which is five years. The benefit period was estimated by taking into consideration the length of customer contracts, technology lifecycle, and other factors. This amortization expense is recorded in sales and marketing expense within the Company's consolidated statement of operations.

Practical Expedients

The new guidance under ASC 340-40, Other Assets and Deferred Costs - Contracts with Customers, sets forth the requirement of deferring incremental costs of obtaining a contract, typically sales commissions, that were expensed as incurred under the previous guidance. The Company applies a practical expedient that permits to apply Subtopic 340-40 to a portfolio of contracts, instead of on a contract-by-contract basis, as they are similar in their characteristics, and the financial statement effects of applying Subtopic 340-40 to that portfolio would not differ materially from applying it to the individual contracts within that portfolio.

Impact of Adopting ASC 606

The Company recognized the cumulative effect of initially applying ASC 606 as an adjustment to retained earnings in the consolidated balance sheet as of April 1, 2018 (in thousands).

			Adjustments
	Balance at		Due to			Balance at
	March 31, 2018		ASC 606			April 1, 2018
Current assets:
Deferred sales commission costs	$	-	$	11,234	$		11,234
Other current assets	$	10,040	$	1,725	$		11,765
Non-current assets:
Deferred sales commission costs	$	-	$	26,942	$		26,942
Stockholders' Equity
Accumulated deficit	$	(201,464)	$	39,901	$		(161,563)

The following tables summarize the impact of the ASC 606 adoption on the Company's consolidated financial statements for the quarter ended September 30, 2018.

Selected Consolidated Balance Sheet Line Items (in thousands):

	September 30, 2018
					(As Reported)
	ASC 605		Adjustments		ASC 606
Current assets:
Deferred sales commission costs	$	-	$	13,656	$	13,656
Other current assets	$	12,107	$	1,782	$	13,889
Non-current assets:
Deferred sales commission costs	$	-	$	29,229	$	29,229
Stockholders' Equity
Accumulated deficit	$	(243,067)	$	44,667	$	(198,400)

Selected Consolidated Statement of Operations Line Items (in thousands, except per share amounts):

		Three Months Ended September 30, 2018						Six Months Ended September 30, 2018
						(As Reported)						(As Reported)
		ASC 605		Adjustments		ASC 606		ASC 605		Adjustments		ASC 606
Service revenue	$	81,543	$	(197)	$	81,346	$	159,785	$	(318)	$	159,467
Product revenue		4,176		160		4,336		9,187		253		9,440
Total revenue	$	85,719	$	(37)	$	85,682	$	168,972	$	(65)	$	168,907
Operating expenses:
Sales and marketing	$	58,806	$	(2,876)	$	55,930	$	113,910	$	(4,675)	$	109,235
Loss from operations	$	(24,826)	$	2,839	$	(21,987)	$	(42,580)	$	4,610	$	(37,970)
Net loss	$	(24,321)	$	2,839	$	(21,482)	$	(41,447)	$	4,610	$	(36,837)
Net loss per share:
Basic and diluted	$	(0.26)	$	0.03	$	(0.23)	$	(0.44)	$	0.05	$	(0.39)

Selected Consolidated Statements of Cash Flows Line Items (in thousands):

	September 30, 2018
					(As Reported)
	ASC 605		Adjustments		ASC 606
Net loss	$	(41,447)	$	4,610	$	(36,837)
Deferred sales commission costs	$	-	$	(4,675)	$	(4,675)
Other current and noncurrent assets	$	(1,517)	$	65	$	(1,452)
Net cash provided by operating activities	$	(4,550)	$	-	$	(4,550)

Disaggregation of Revenue

The Company disaggregates its revenue by geographic region. See Note 10 for more information.

Contract Balances

The following table provides information about receivables, contract assets and deferred revenues from contracts with customers (in thousands):

		September 30, 2018
Accounts receivable, net	$	18,870
Other current assets	$	1,782
Deferred revenue - current	$	3,354
Deferred revenue - noncurrent	$	11

Changes in the contract assets and the deferred revenue balances during the six months ended September 30, 2018 are as follows (in thousands):

	April 1, 2018		September 30, 2018		$ Change
Other current assets	$	1,725	$	1,782	$	57
Deferred revenue	$	2,578	$	3,364	$	786

The change in contract assets was primarily driven by the recognition of revenue that has not yet been billed. The increase in deferred revenues was due to billings in advance of performance obligations being satisfied. During the three and six months ended September 30, 2018, $1.8 million and $3.2 million, respectively, of revenue recognized was included in the deferred revenues balance at the beginning of the period, which was offset by additional deferrals during the period.

Remaining Performance Obligations

The Company's subscription terms typically range from one to four years. Contract revenue as of September 30, 2018, that has not yet been recognized was approximately $140 million. This excludes contracts with an original expected length of one year or less. The Company expects to recognize revenue on the vast majority of the remaining performance obligation over the next 24 months.

FAIR VALUE MEASUREMENTS - Note 3

6 Months Ended

Sep. 30, 2018

Cash and Cash Equivalents [Abstract]

FAIR VALUE MEASUREMENTS - Note 3

3. FAIR VALUE MEASUREMENTS

Cash, cash equivalents, and available-for-sale investments (in thousands):

				Gross		Gross				Cash and
		Amortized		Unrealized		Unrealized		Estimated		Cash		Short-Term
As of September 30, 2018		Costs		Gain		Loss		Fair Value		Equivalents		Investments
Cash	$	16,585	$	-	$	-	$	16,585	$	16,585	$	-
Level 1:
Money market funds		8,092		-		-		8,092		8,092		-
Subtotal		24,677		-		-		24,677		24,677		-
Level 2:
Commercial paper		3,178		-		-		3,178		-		3,178
Corporate debt		69,575		19		(132)		69,462		-		69,462
Municipal securities		5,501		3		-		5,504		-		5,504
Asset backed securities		21,960		6		(59)		21,907		-		21,907
Agency bond		4,221		-		(40)		4,181		-		4,181
Subtotal		104,435		28		(231)		104,232		-		104,232
Total assets	$	129,112	$	28	$	(231)	$	128,909	$	24,677	$	104,232

				Gross		Gross				Cash and
		Amortized		Unrealized		Unrealized		Estimated		Cash		Short-Term
As of March 31, 2018		Costs		Gain		Loss		Fair Value		Equivalents		Investments
Cash	$	16,499	$	-	$	-	$	16,499	$	16,499	$	-
Level 1:
Money market funds		15,204		-		-		15,204		15,204		-
Subtotal		31,703		-		-		31,703		31,703		-
Level 2:
Commercial paper		13,254		-		(8)		13,246		-		13,246
Corporate debt		70,631		6		(296)		70,341		-		70,341
Municipal securities		3,385		3		(1)		3,387		-		3,387
Asset backed securities		27,063		1		(119)		26,945		-		26,945
Agency bond		4,183		-		(35)		4,148		-		4,148
International government securities		2,497		-		(5)		2,492		-		2,492
Subtotal		121,013		10		(464)		120,559		-		120,559
Total assets	$	152,716	$	10	$	(464)	$	152,262	$	31,703	$	120,559

Contractual maturities of investments as of September 30, 2018 are set forth below (in thousands):

		Estimated
		Fair Value
Due within one year	$	49,792
Due after one year		54,440
Total	$	104,232

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

INTANGIBLE ASSETS - Note 4

6 Months Ended

Sep. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS - Note 4

4. INTANGIBLE ASSETS

The carrying value of intangible assets consisted of the following (in thousands):

		September 30, 2018						March 31, 2018
		Gross				Net		Gross				Net
		Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
		Amount		Amortization		Amount		Amount		Amortization		Amount
Technology	$	22,902	$	(12,755)	$	10,147	$	19,702	$	(10,535)	$	9,167
Customer relationships		9,464		(7,639)		1,825		9,776		(7,366)		2,410
Trade names/domains		2,108		(1,918)		190		2,108		(1,727)		381
In-process research and development		95		(95)		-		95		(95)		-
Total acquired identifiable intangible assets	$	34,569	$	(22,407)	$	12,162	$	31,681	$	(19,723)	$	11,958

At September 30, 2018, annual amortization of intangible assets, based upon our existing intangible assets and current useful lives, is estimated to be the following (in thousands):

		Amount
Remaining 2019	$	2,699
2020		4,716
2021		2,753
2022		1,766
2023		228
Total	$	12,162

GOODWILL - Note 5

6 Months Ended

Sep. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL - Note 5

5. GOODWILL

The following table provides a summary of the changes in the carrying amounts of goodwill by reporting segment (in thousands):

		Americas		Europe		Total
Balance at March 31, 2018	$	27,309	$	12,745	$	40,054
Additions due to acquisition		300		-		300
Foreign currency translation		-		(859)		(859)
Balance at September 30, 2018	$	27,609	$	11,886	$	39,495

COMMITMENTS AND CONTINGENCIES - Note 6

6 Months Ended

Sep. 30, 2018

Notes to Financial Statements

COMMITMENTS AND CONTINGENCIES - Note 6

6. COMMITMENTS AND CONTINGENCIES

Facility and Equipment Leases

The Company leases its headquarter's office space in San Jose, California, and also leases office space under non-cancelable operating leases in various domestic and international locations. During the first quarter of fiscal 2019, as it took control of its new corporate headquarters to begin the build out, the Company began to record additional rent expenses on a straight-line basis. Total rent expense for the three and six months ended September 30, 2018 was $2.6 million and $5.3 million, respectively. Total rent expense for the three and six months ended September 30, 2017 was $1.4 million and $2.8 million, respectively. Future minimum annual lease payments as of September 30, 2018 were as follows (in thousands):

		Amount
Remaining 2019	$	2,937
2020		6,918
2021		8,936
2022		8,826
2023		8,335
Thereafter		54,678
Total	$	90,630

The Company has entered into a series of noncancelable capital lease agreements for data center and office equipment bearing interest at various rates.

Other Commitments, Indemnifications and Contingencies

From time to time, the Company receives inquiries from various state and municipal taxing agencies with respect to the remittance of sales, use, telecommunications, excise, and income taxes. Several jurisdictions currently are conducting tax audits of the Company's records. The Company collects or has accrued for taxes that it believes are required to be remitted. The amounts that have been remitted have historically been within the accruals established by the Company. The Company adjusts its accrual when facts relating to specific exposures warrant such adjustment.

During the second quarter of fiscal 2019, the Company determined that additional sales taxes were probable of being assessed and estimable in multiple states as a result of preliminary findings from current sales and use tax audits. As a result, the Company estimated an incremental sales tax liability of $4.6 million, which was recorded as general and administrative expense in the consolidated statements of operations in the second quarter of fiscal 2019.

Legal Proceedings

The Company, from time to time, is involved in various legal claims or litigation, including patent infringement claims that can arise in the normal course of the Company's operations. Pending or future litigation could be costly, could cause the diversion of management's attention and could upon resolution, have a material adverse effect on the Company's business, results of operations, financial condition and cash flows.

STOCK-BASED COMPENSATION - Note 7

6 Months Ended

Sep. 30, 2018

Equity [Abstract]

STOCK-BASED COMPENSATION - Note 7

7. STOCK-BASED COMPENSATION

The following tables summarize information pertaining to the stock-based compensation expense from stock options and stock awards (in thousands, except weighted-average grant-date fair value and recognition period):

		Three Months Ended				Six Months Ended
		September 30,				September 30,
		2018		2017		2018		2017
Cost of service revenue	$	638	$	473	$	1,096	$	864
Cost of product revenue		-		-		-		-
Research and development		2,823		1,314		5,017		2,651
Sales and marketing		3,826		2,568		7,672		5,215
General and administrative		2,842		2,302		5,255		4,278
Total	$	10,129	$	6,657	$	19,040	$	13,008

		Six Months Ended
		September 30,
		2018		2017
Stock options outstanding at the beginning of the period:		3,998		4,462
Options granted		195		229
Options exercised		(574)		(329)
Options canceled and forfeited		(97)		(134)
Options outstanding at the end of the period:		3,522		4,228
Weighted-average fair value of grants during the period	$	8.47	$	5.28
Total intrinsic value of options exercised during the period	$	8,525	$	3,537
Weighted-average remaining recognition period at period-end (in years)		2.52		1.95

Stock awards outstanding at the beginning of the period:		5,939		4,950
Stock awards granted		2,112		2,446
Stock awards vested		(1,720)		(1,225)
Stock awards canceled and forfeited		(433)		(272)
Stock awards outstanding at the end of the period:		5,898		5,899
Weighted-average fair value of grants during the period	$	22.01	$	14.09
Weighted-average remaining recognition period at period-end (in years)		2.44		2.75

Total unrecognized compensation expense at period-end	$	79,121	$	63,323

Stock Repurchases

In May 2017, the Company's board of directors authorized the Company to purchase up to $25.0 million of its common stock from time to time under the 2017 Repurchase Plan (the "2017 Plan"). The 2017 Plan expires when the maximum purchase amount is reached, or upon the earlier revocation or termination by the board of directors. The remaining amount available under the 2017 Plan at September 30, 2018 was approximately $7.1 million. There were no stock repurchases under the 2017 Plan during the six months period ended September 30, 2018.

INCOME TAXES - Note 8

6 Months Ended

Sep. 30, 2018

Notes to Financial Statements

INCOME TAXES - Note 8

8. INCOME TAXES

The Company's effective tax rate was (1)% and 86% for the three months ended September 30, 2018 and 2017, respectively. The effective tax rate is calculated by dividing the income tax provision by net income (loss) before income tax expense. The difference in the effective tax rate and the U.S. federal statutory rate was due primarily to the change in pretax profitability, and geographic mix of profits and losses and the full valuation allowance recorded during the third quarter of fiscal year 2018.

NET LOSS PER SHARE - Note 9

6 Months Ended

Sep. 30, 2018

Notes to Financial Statements

NET LOSS PER SHARE - Note 9

9. NET LOSS PER SHARE

The following table summarizes the computation of basic and diluted net loss per share (in thousands, except share and per share data):

		Three Months Ended				Six Months Ended
		September 30,				September 30,
		2018		2017		2018		2017
Numerator:
Net loss available to common stockholders	$	(21,482)	$	(546)	$	(36,837)	$	(2,715)

Denominator:
Common shares - basic and diluted		93,831		91,689		93,449		91,667

Net loss per share
Basic and diluted	$	(0.23)	$	(0.01)	$	(0.39)	$	(0.03)

The following shares attributable to outstanding stock options and stock awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive (in thousands):

	Three Months Ended		Six Months Ended
	September 30,		September 30,
	2018	2017	2018	2017
Stock options	3,522	4,228	3,522	4,228
Stock awards	5,897	5,899	5,897	5,899
Total anti-dilutive shares	9,419	10,127	9,419	10,127

SEGMENT REPORTING AND GEOGRAPHICAL INFORMATION - Note 10

6 Months Ended

Sep. 30, 2018

Segment Reporting [Abstract]

SEGMENT REPORTING - Note 10

10. SEGMENT REPORTING AND GEOGRAPHICAL INFORMATION

The Company manages its operations primarily on a geographic basis. The Company's reportable segments are the Americas and Europe. The Americas segment is primarily North America. The Europe segment is primarily the United Kingdom.

The following tables set forth the segment and geographic information for each period (in thousands):

		Revenue for the
		Three Months Ended				Six Months Ended
		September 30,				September 30,
		2018		2017		2018		2017
Americas (principally US)	$	77,100	$	65,121	$	151,965	$	127,526
Europe (principally UK)		8,582		7,362		16,942		14,055
	$	85,682	$	72,483	$	168,907	$	141,581

Revenues are attributed to each segment based on the ordering location of the customer or ship to location. For the three and six months ended September 30, 2018 and 2017, inter-segment revenues of approximately $6.5 million and $13.1 million, and $4.4 million and $6.9 million respectively, were eliminated in consolidation, and have been excluded from the table above.

		Depreciation and Amortization for the
		Three Months Ended				Six Months Ended
		September 30,				September 30,
		2018		2017		2018		2017
Americas (principally US)	$	4,665	$	2,336	$	8,972	$	4,869
Europe (principally UK)		994		1,295		1,865		2,489
	$	5,659	$	3,631	$	10,837	$	7,358

		Net Income (Loss) for the
		Three Months Ended				Six Months Ended
		September 30,				September 30,
		2018		2017		2018		2017
Americas (principally US)	$	(21,237)	$	970	$	(35,586)	$	1,379
Europe (principally UK)		(245)		(1,516)		(1,251)		(4,094)
	$	(21,482)	$	(546)	$	(36,837)	$	(2,715)

		September 30, 2018				March 31, 2018
		Total		Property and		Total		Property and
		Assets		Equipment, net		Assets		Equipment, net
Americas (principally US)	$	265,373	$	34,958	$	240,099	$	27,270
Europe (principally UK)		44,259		7,437		37,110		8,462
	$	309,632	$	42,395	$	277,209	$	35,732

ACQUISITIONS - Note 11

6 Months Ended

Sep. 30, 2018

Business Combinations [Abstract]

ACQUISITIONS - Note 11

11. ACQUISITIONS

MarianaIQ

On April 12, 2018, the Company entered into an Asset Purchase Agreement with MarianaIQ Inc. (MarianaIQ) for the purchase of certain assets of MarianaIQ. The total aggregate purchase price consisted of cash paid to MarianaIQ at closing, and cash to be held in escrow by the Company for fifteen months, as security against indemnity claims asserted by the Company after the closing date. The escrow amount is recorded as other accrued liabilities on the consolidated balance sheets as of September 30, 2018.

The Company recorded the acquired developed technology as an identifiable intangible asset with an estimated useful life of two years. The fair value of the technology was based on estimates and assumptions made by management using a cost approach method. The intangible asset is amortized on a straight-line basis over two years.

The excess of the consideration transferred over the aggregate fair value of the asset acquired was recorded as goodwill. The amount of goodwill recognized was primarily attributable to the expected contributions of the entity to the overall corporate strategy in addition to the acquired workforce.

The preliminary fair values of the assets acquired are as follows (in thousands):

		Fair Value
Assets acquired:
Intangible assets	$	3,200
Net identifiable assets acquired		3,200
Goodwill		300
Total consideration transferred	$	3,500

MarianaIQ did not contribute materially to revenue or net loss for the period of acquisition to September 30, 2018. Goodwill recognized upon acquisition is expected to be deductible for income tax purposes and is included in the Americas reporting unit (see Note 5). Total acquisition costs were immaterial.

SUBSEQUENT EVENTS - Note 12

6 Months Ended

Sep. 30, 2018

Subsequent Events [Abstract]

SUBSEQUENT EVENTS - Note 12

12. SUBSEQUENT EVENTS

On October 26, 2018, the Company entered into an Asset Purchase Agreement with Atlassian Corporation Plc. (Atlassian) through which the Company purchased certain assets from Atlassian relating to the Jitsi open source video communications technology (Jitsi). The Company intends to integrate Jitsi's video collaboration capabilities into 8x8's technology platform to further enhance the Company's video and X Series platform offerings.

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2018
Notes to Financial Statements
Fiscal Period	The Company's fiscal year ends on March 31 of each calendar year. Each reference to a fiscal year in these notes to the consolidated financial statements refers to the fiscal year ended March 31 of the calendar year indicated (for example, fiscal 2019 refers to the fiscal year ending March 31, 2019).
Use of Estimates	The accompanying interim consolidated financial statements are unaudited and have been prepared on substantially the same basis as our annual consolidated financial statements for the fiscal year ended March 31, 2018, with the exception of new revenue recognition guidance discussed in the recently adopted accounting principles section below. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (SEC), regarding interim financial reporting.
Basis of Presentation	The March 31, 2018 year-end consolidated balance sheet data in this document were derived from audited consolidated financial statements and does not include all of the disclosures required by U.S. generally accepted accounting principles. These consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements as of and for the fiscal year ended March 31, 2018 and notes thereto included in the Company's fiscal 2018 Annual Report on Form 10-K. The results of operations and cash flows for the interim periods included in these consolidated financial statements are not necessarily indicative of the results to be expected for any future period or the entire fiscal year. The significant accounting policies used in preparation of these consolidated financial statements are disclosed in our Annual Report on Form 10-K for the fiscal year ended March 31, 2018 filed with the SEC on May 30, 2018, and there have been no changes to the Company's significant accounting policies during the three months ended September 30, 2018 except for the accounting policies described below that were updated as a result of adopting Accounting Standards Update (ASU) 2014-9, Revenue from Contracts with Customers: Topic 606 (ASU 2014-9 or ASC 606). ASU 2014-9 also included Subtopic 340-40, Other Assets and Deferred Costs - Contracts with Customers, which sets forth the requirement of deferring incremental costs of obtaining a contract with a customer. All amounts and disclosures set forth herein are in compliance with these standards.
Acquisition	*ACQUISITION* In April 2018, the Company entered into an asset purchase agreement with MarianaIQ, Inc. The total aggregate purchase price consisted of cash paid at closing and cash deposited into escrow to be held for fifteen months as security against indemnity claims made by the Company after the closing date. See Note 11 for additional information.
Principles of Consolidation	*PRINCIPLES OF CONSOLIDATION* The consolidated financial statements include the accounts of 8x8 and its subsidiaries. All material intercompany accounts and transactions have been eliminated.
Recently Adopted Accounting Pronouncements	*RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS* In May 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-9, which replaces numerous requirements in U.S. GAAP and provide companies with a single revenue recognition model for recognizing revenue from contracts with customers. ASC 606 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates are required with the revenue recognition process than were required under the previous guidance (ASC 605). The new standard permits the use of either the full retrospective or modified retrospective transition method. The Company adopted the new standard effective April 1, 2018 using the modified retrospective method. Under the modified retrospective method, the comparative periods' information is not restated and continues to be reported under the accounting standards in effect in those prior periods. Instead, on April 1, 2018, the Company recognized the cumulative effect of initially applying ASC 606 as an adjustment to the opening balance of accumulated deficit and the corresponding balance sheet accounts, which resulted in a net decrease to accumulated deficit of $39.9 million. The impact on the Company's opening balances primarily relates to the capitalization of additional commission costs under ASC 606 in the amount of $38.2 million. Under ASC 605, the Company expensed all commission costs as incurred. Under ASC 606, the Company defers all incremental commission costs to obtain the contract and amortizes these costs over a benefit period of five years. The remaining $1.7 million impact of adopting the standard relates to revenue being recognized earlier under ASC 606 than it would have been under ASC 605, which resulted in a contract asset as of the adoption date. See Note 2 for additional disclosure on the impact of adopting this standard.
Recent Accounting Pronouncements	*RECENT ACCOUNTING PRONOUNCEMENTS* In February 2016, the FASB issued ASU 2016-2, Leases (Topic 842), along with amendments issued in 2018, which requires companies to generally recognize on the balance sheet operating and financing lease liabilities and corresponding right-of-use assets. The update also requires qualitative and quantitative disclosures designed to assess the amount, timing, and uncertainty of cash flows arising from leases. The update requires the use of a modified retrospective transition approach, which includes a number of optional practical expedients that entities may elect to apply. This amendment is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements. In June 2018, the FASB issued ASU 2018-7, Compensation-Stock Compensation (Topic 718), which now provides guidance for share-based payments to non-employees, resulting in alignment in accounting for employees and non-employees. The amendment is effective for public companies with fiscal years beginning after December 15, 2018. Early adoption is permitted. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), which makes modifications to disclosure requirements on fair value measurements. The amendment is effective for public companies with fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements. In August 2018, the FASB issued 2018-15, Intangibles-Goodwill and Other-Internal Use Software (Subtopic 350-40), which reduces complexity for the accounting for the accounting for costs of implementing a cloud computing service arrangement. The amendment is effective for public companies with fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements.
Revenue recognition	*Revenue Recognition under ASC 606* The Company recognizes service revenue, mainly from subscription services to its cloud-based voice, call center, video and collaboration solutions using the five-step model as prescribed by ASC 606: • Identification of the contract, or contracts, with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when or as, the Company satisfies a performance obligation. The Company identifies performance obligations in contracts with customers, which may include subscription services and related usage, product revenue and professional services. The transaction price is determined based on the amount the Company expects to be entitled to in exchange for transferring the promised services or products to the customer. The transaction price in the contract is allocated to each distinct performance obligation in an amount that represents the relative amount of consideration expected to be received in exchange for satisfying each performance obligation. Revenue is recognized when performance obligations are satisfied. Revenues are recorded based on the transaction price excluding amounts collected on behalf of third parties such as sales and telecommunication taxes, which are collected on behalf of and remitted to governmental authorities. The Company usually bills its customers on a monthly basis. Contracts typically range from annual to multi-year agreements with payment terms of net 30 days or less. The Company occasionally allows a 30-day period to cancel a subscription and return products shipped for a full refund. *Judgments and Estimates* The estimation of variable consideration for each performance obligation requires the Company to make subjective judgments. The Company has service-level agreements with customers warranting defined levels of uptime reliability and performance. Customers may get credits or refunds if the Company fails to meet such levels. If the services do not meet certain criteria, fees are subject to adjustment or refund representing a form of variable consideration. The Company may impose minimum revenue commitments (MRC) on its customers at the inception of the contract. Thus, in estimating variable consideration for each of these performance obligations, the Company assesses both the probability of MRC occurring and the collectability of the MRC, of which both represent a form of variable consideration. The Company enters into contracts with customers that regularly include promises to transfer multiple services and products, such as subscriptions, products, and professional services. For arrangements with multiple services, the Company evaluates whether the individual services qualify as distinct performance obligations. In its assessment of whether a service is a distinct performance obligation, the Company determines whether the customer can benefit from the service on its own or with other readily available resources, and whether the service is separately identifiable from other services in the contract. This evaluation requires the Company to assess the nature of each individual service offering and how the services are provided in the context of the contract, including whether the services are significantly integrated, highly interrelated, or significantly modify each other, which may require judgment based on the facts and circumstances of the contract. When agreements involve multiple distinct performance obligations, the Company allocates arrangement consideration to all performance obligations at the inception of an arrangement based on the relative standalone selling prices (SSP) of each performance obligation. Usage fees deemed to be variable consideration meet the allocation exception for variable consideration. Where the Company has standalone sales data for its performance obligations which are indicative of the price at which the Company sells a promised good or service separately to a customer, such data is used to establish SSP. In instances where standalone sales data is not available for a particular performance obligation, the Company estimates SSP by the use of observable market and cost-based inputs. The Company continues to review the factors used to establish list price and will adjust standalone selling price methodologies as necessary on a prospective basis. *Service Revenue* Service revenue from subscriptions to the Company's cloud-based technology platform is recognized over time on a ratable basis over the contractual subscription term beginning on the date that the platform is made available to the customer. Payments received in advance of subscription services being rendered are recorded as a deferred revenue. Usage fees, either bundled or not bundled, are recognized when the Company has a right to invoice. Professional services for configuration, system integration, optimization, customer training and/or education are primarily billed on a fixed-fee basis and are performed by the Company directly or, alternatively, customers may also choose to perform these services themselves or engage their own third-party service providers. Professional services revenue is recognized over time, generally as customer sites go live. When a contract with a customer is signed, the Company assesses whether collection of the fees under the arrangement is probable. The Company estimates the amount to reserve for uncollectible amounts based on the aging of the contract balance, current and historical customer trends, and communications with its customers. These reserves are recorded as operating expenses against the contract asset (Accounts Receivable). In the normal course of business, the Company records revenue reductions for customer credits. *Product Revenue* The Company recognizes product revenue for telephony equipment at a point in time, when transfer of control has occurred, which is generally upon shipment. Sales returns are recorded as a reduction to revenue estimated based on historical experience. *Contract Assets* Contract assets are recorded for those parts of the contract consideration not yet invoiced but for which the performance obligations are completed. The revenue is recognized when the customer receives services or equipment for a reduced consideration at the onset of an arrangement, for example when the initial month's services or equipment are discounted. Contract assets are included in other current or non-current assets in the consolidated balance sheets, depending on if their reduction is recognized during the succeeding 12-month period or beyond. *Deferred Revenue* Deferred revenues represent billings or payments received in advance of revenue recognition and is recognized upon transfer of control. Balances consist primarily of annual plan subscription services and professional and training services not yet provided as of the balance sheet date. Deferred revenues that will be recognized during the succeeding 12-month period are recorded as current deferred revenues in the consolidated balance sheets, with the remainder recorded as other non-current liabilities in the consolidated balance sheets. *Costs to Obtain a Customer Contract* Sales commissions and related expenses are considered incremental and recoverable costs of acquiring customer contracts. These costs are capitalized as other current or non-current assets and amortized on a straight-line basis over the anticipated benefit period, which is five years. The benefit period was estimated by taking into consideration the length of customer contracts, technology lifecycle, and other factors. This amortization expense is recorded in sales and marketing expense within the Company's consolidated statement of operations. *Practical Expedients* The new guidance under ASC 340-40, Other Assets and Deferred Costs - Contracts with Customers, sets forth the requirement of deferring incremental costs of obtaining a contract, typically sales commissions, that were expensed as incurred under the previous guidance. The Company applies a practical expedient that permits to apply Subtopic 340-40 to a portfolio of contracts, instead of on a contract-by-contract basis, as they are similar in their characteristics, and the financial statement effects of applying Subtopic 340-40 to that portfolio would not differ materially from applying it to the individual contracts within that portfolio.

Revenue Recognition (Tables)

6 Months Ended

Sep. 30, 2018

Revenue Recognition

Schedule of impacts of adopting ASC 606

The Company recognized the cumulative effect of initially applying ASC 606 as an adjustment to retained earnings in the consolidated balance sheet as of April 1, 2018 (in thousands).

			Adjustments
	Balance at		Due to			Balance at
	March 31, 2018		ASC 606			April 1, 2018
Current assets:
Deferred sales commission costs	$	-	$	11,234	$		11,234
Other current assets	$	10,040	$	1,725	$		11,765
Non-current assets:
Deferred sales commission costs	$	-	$	26,942	$		26,942
Stockholders' Equity
Accumulated deficit	$	(201,464)	$	39,901	$		(161,563)

The following tables summarize the impact of the ASC 606 adoption on the Company's consolidated financial statements for the quarter ended September 30, 2018.

Selected Consolidated Balance Sheet Line Items (in thousands):

	September 30, 2018
					(As Reported)
	ASC 605		Adjustments		ASC 606
Current assets:
Deferred sales commission costs	$	-	$	13,656	$	13,656
Other current assets	$	12,107	$	1,782	$	13,889
Non-current assets:
Deferred sales commission costs	$	-	$	29,229	$	29,229
Stockholders' Equity
Accumulated deficit	$	(243,067)	$	44,667	$	(198,400)

Selected Consolidated Statement of Operations Line Items (in thousands, except per share amounts):

		Three Months Ended September 30, 2018						Six Months Ended September 30, 2018
						(As Reported)						(As Reported)
		ASC 605		Adjustments		ASC 606		ASC 605		Adjustments		ASC 606
Service revenue	$	81,543	$	(197)	$	81,346	$	159,785	$	(318)	$	159,467
Product revenue		4,176		160		4,336		9,187		253		9,440
Total revenue	$	85,719	$	(37)	$	85,682	$	168,972	$	(65)	$	168,907
Operating expenses:
Sales and marketing	$	58,806	$	(2,876)	$	55,930	$	113,910	$	(4,675)	$	109,235
Loss from operations	$	(24,826)	$	2,839	$	(21,987)	$	(42,580)	$	4,610	$	(37,970)
Net loss	$	(24,321)	$	2,839	$	(21,482)	$	(41,447)	$	4,610	$	(36,837)
Net loss per share:
Basic and diluted	$	(0.26)	$	0.03	$	(0.23)	$	(0.44)	$	0.05	$	(0.39)

Selected Consolidated Statements of Cash Flows Line Items (in thousands):

	September 30, 2018
					(As Reported)
	ASC 605		Adjustments		ASC 606
Net loss	$	(41,447)	$	4,610	$	(36,837)
Deferred sales commission costs	$	-	$	(4,675)	$	(4,675)
Other current and noncurrent assets	$	(1,517)	$	65	$	(1,452)
Net cash provided by operating activities	$	(4,550)	$	-	$	(4,550)

Schedule of contract assets and liabilities

The following table provides information about receivables, contract assets and deferred revenues from contracts with customers (in thousands):

		September 30, 2018
Accounts receivable, net	$	18,870
Other current assets	$	1,782
Deferred revenue - current	$	3,354
Deferred revenue - noncurrent	$	11

Changes in the contract assets and the deferred revenues balances during the six months ended September 30, 2018 are as follows (in thousands):

	April 1, 2018		September 30, 2018		$ Change
Other current assets	$	1,725	$	1,782	$	57
Deferred revenue	$	2,578	$	3,364	$	786

FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Sep. 30, 2018

Fair Value Measurements

Fair Value Measurements, Recurring and Nonrecurring (Tables)

Cash, cash equivalents, and available-for-sale investments (in thousands):

				Gross		Gross				Cash and
		Amortized		Unrealized		Unrealized		Estimated		Cash		Short-Term
As of September 30, 2018		Costs		Gain		Loss		Fair Value		Equivalents		Investments
Cash	$	16,585	$	-	$	-	$	16,585	$	16,585	$	-
Level 1:
Money market funds		8,092		-		-		8,092		8,092		-
Subtotal		24,677		-		-		24,677		24,677		-
Level 2:
Commercial paper		3,178		-		-		3,178		-		3,178
Corporate debt		69,575		19		(132)		69,462		-		69,462
Municipal securities		5,501		3		-		5,504		-		5,504
Asset backed securities		21,960		6		(59)		21,907		-		21,907
Agency bond		4,221		-		(40)		4,181		-		4,181
Subtotal		104,435		28		(231)		104,232		-		104,232
Total assets	$	129,112	$	28	$	(231)	$	128,909	$	24,677	$	104,232

				Gross		Gross				Cash and
		Amortized		Unrealized		Unrealized		Estimated		Cash		Short-Term
As of March 31, 2018		Costs		Gain		Loss		Fair Value		Equivalents		Investments
Cash	$	16,499	$	-	$	-	$	16,499	$	16,499	$	-
Level 1:
Money market funds		15,204		-		-		15,204		15,204		-
Subtotal		31,703		-		-		31,703		31,703		-
Level 2:
Commercial paper		13,254		-		(8)		13,246		-		13,246
Corporate debt		70,631		6		(296)		70,341		-		70,341
Municipal securities		3,385		3		(1)		3,387		-		3,387
Asset backed securities		27,063		1		(119)		26,945		-		26,945
Agency bond		4,183		-		(35)		4,148		-		4,148
International government securities		2,497		-		(5)		2,492		-		2,492
Subtotal		121,013		10		(464)		120,559		-		120,559
Total assets	$	152,716	$	10	$	(464)	$	152,262	$	31,703	$	120,559

Contractual maturities of investments as of September 30, 2018 are set forth below (in thousands):

		Estimated
		Fair Value
Due within one year	$	49,792
Due after one year		54,440
Total	$	104,232

Intangible Assets (Tables)

6 Months Ended

Sep. 30, 2018

Intangible Assets

Carrying values of intangible assets

The carrying value of intangible assets consisted of the following (in thousands):

		September 30, 2018						March 31, 2018
		Gross				Net		Gross				Net
		Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
		Amount		Amortization		Amount		Amount		Amortization		Amount
Technology	$	22,902	$	(12,755)	$	10,147	$	19,702	$	(10,535)	$	9,167
Customer relationships		9,464		(7,639)		1,825		9,776		(7,366)		2,410
Trade names/domains		2,108		(1,918)		190		2,108		(1,727)		381
In-process research and development		95		(95)		-		95		(95)		-
Total acquired identifiable intangible assets	$	34,569	$	(22,407)	$	12,162	$	31,681	$	(19,723)	$	11,958

Finite-lived intangible assets - future amortization expense

At September 30, 2018, annual amortization of intangible assets, based upon our existing intangible assets and current useful lives, is estimated to be the following (in thousands):

		Amount
Remaining 2019	$	2,699
2020		4,716
2021		2,753
2022		1,766
2023		228
Total	$	12,162

Goodwill (Tables)

6 Months Ended

Sep. 30, 2018

Goodwill Tables Abstract

Carrying amounts of goodwill

The following table provides a summary of the changes in the carrying amounts of goodwill by reporting segment (in thousands):

		Americas		Europe		Total
Balance at March 31, 2018	$	27,309	$	12,745	$	40,054
Additions due to acquisition		300		-		300
Foreign currency translation		-		(859)		(859)
Balance at September 30, 2018	$	27,609	$	11,886	$	39,495

Commitments And Contingencies (Tables)

6 Months Ended

Sep. 30, 2018

Commitments And Contingencies

Future minimum annual operating lease payments

Future minimum annual lease payments as of September 30, 2018 were as follows (in thousands):

		Amount
Remaining 2019	$	2,937
2020		6,918
2021		8,936
2022		8,826
2023		8,335
Thereafter		54,678
Total	$	90,630

Distribution of Stock-Based Compensation Plan Expense (Tables)

6 Months Ended

Sep. 30, 2018

Distribution Of Stock-based Compensation Plan Expense

Schedule Of Stock-Based Compensation Expense By Statement Of Operations Line Item

		Three Months Ended				Six Months Ended
		September 30,				September 30,
		2018		2017		2018		2017
Cost of service revenue	$	638	$	473	$	1,096	$	864
Cost of product revenue		-		-		-		-
Research and development		2,823		1,314		5,017		2,651
Sales and marketing		3,826		2,568		7,672		5,215
General and administrative		2,842		2,302		5,255		4,278
Total	$	10,129	$	6,657	$	19,040	$	13,008

Stock-Based Compensation And Employee Purchase Plan (Tables)

6 Months Ended

Sep. 30, 2018

Option Grants

Disclosure Of Share-Based Compensation Arrangements By Share-Based Payment Award

		Six Months Ended
		September 30,
		2018		2017
Stock options outstanding at the beginning of the period:		3,998		4,462
Options granted		195		229
Options exercised		(574)		(329)
Options canceled and forfeited		(97)		(134)
Options outstanding at the end of the period:		3,522		4,228
Weighted-average fair value of grants during the period	$	8.47	$	5.28
Total intrinsic value of options exercised during the period	$	8,525	$	3,537
Weighted-average remaining recognition period at period-end (in years)		2.52		1.95

Stock Awards

Disclosure Of Share-Based Compensation Arrangements By Share-Based Payment Award

			Six Months Ended
			September 30,
			2018			2017

Stock awards outstanding at the beginning of the period:		5,939		4,950
Stock awards granted		2,112		2,446
Stock awards vested		(1,720)		(1,225)
Stock awards canceled and forfeited		(433)		(272)
Stock awards outstanding at the end of the period:		5,898		5,899
Weighted-average fair value of grants during the period	$	22.01	$	14.09
Weighted-average remaining recognition period at period-end (in years)		2.44		2.75

Total unrecognized compensation expense at period-end	$	79,121	$	63,323

Net Income (Loss) Per Share (Tables)

6 Months Ended

Sep. 30, 2018

Net Income Loss Per Share

Net Income (Loss) Per Share

The following is a reconciliation of the weighted average number of common shares outstanding used in calculating basic and diluted net loss per share (in thousands, except share and per share data):

		Three Months Ended				Six Months Ended
		September 30,				September 30,
		2018		2017		2018		2017
Numerator:
Net loss available to common stockholders	$	(21,482)	$	(546)	$	(36,837)	$	(2,715)

Denominator:
Common shares - basic and diluted		93,831		91,689		93,449		91,667

Net loss per share:
Basic and diluted	$	(0.23)	$	(0.01)	$	(0.39)	$	(0.03)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

	Three Months Ended		Six Months Ended
	September 30,		September 30,
	2018	2017	2018	2017
Stock options	3,522	4,228	3,522	4,228
Stock awards	5,897	5,899	5,897	5,899
Total anti-dilutive shares	9,419	10,127	9,419	10,127

Segment Information (Tables)

6 Months Ended

Sep. 30, 2018

Segment Information

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas

The following tables set forth the segment and geographic information for each period (in thousands):

		Revenue for the
		Three Months Ended				Six Months Ended
		September 30,				September 30,
		2018		2017		2018		2017
Americas (principally US)	$	77,100	$	65,121	$	151,965	$	127,526
Europe (principally UK)		8,582		7,362		16,942		14,055
	$	85,682	$	72,483	$	168,907	$	141,581

		September 30, 2018				March 31, 2018
		Total		Property and		Total		Property and
		Assets		Equipment, net		Assets		Equipment, net
Americas (principally US)	$	265,373	$	34,958	$	240,099	$	27,270
Europe (principally UK)		44,259		7,437		37,110		8,462
	$	309,632	$	42,395	$	277,209	$	35,732

Schedule of Segment Reporting Information, by Segment

		Depreciation and Amortization for the
		Three Months Ended				Six Months Ended
		September 30,				September 30,
		2018		2017		2018		2017
Americas (principally US)	$	4,665	$	2,336	$	8,972	$	4,869
Europe (principally UK)		994		1,295		1,865		2,489
	$	5,659	$	3,631	$	10,837	$	7,358

		Net Income (Loss) for the
		Three Months Ended				Six Months Ended
		September 30,				September 30,
		2018		2017		2018		2017
Americas (principally US)	$	(21,237)	$	970	$	(35,586)	$	1,379
Europe (principally UK)		(245)		(1,516)		(1,251)		(4,094)
	$	(21,482)	$	(546)	$	(36,837)	$	(2,715)

Acquisition (Tables)

6 Months Ended

Sep. 30, 2018

Acquisition Tables Abstract

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

The preliminary fair values of the assets acquired are as follows (in thousands):

		Fair Value
Assets acquired:
Intangible assets	$	3,200
Net identifiable assets acquired		3,200
Goodwill		300
Total consideration transferred	$	3,500

Description of the Business (Narrative) (Details)	6 Months Ended
Description of the Business (Narrative) (Details)	Sep. 30, 2018
Description Of Business Narrative
Fiscal Year End Date	--03-31
Number of countries in which customer are spread	150

Description of the Business (Acquisitions Narrative) (Details)	1 Months Ended
	Apr. 30, 2018
Description Of Business Acquisitions Narrative
Effective date of purchase agreement	Apr. 30, 2018
Business Acquisition, Description of Acquired Entity	<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">In April 2018, the Company entered into an asset purchase agreement with MarianaIQ, Inc. The total aggregate purchase price consisted of cash paid at closing and cash deposited into escrow to be held for fifteen months as security against indemnity claims made by the Company after the closing date. See Note 11 for additional information.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p>

Revenue Recognition - Summary of Impact of ASC 606 (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Mar. 31, 2018
Service revenue	$ 81,346		$ 159,467
Product revenue	4,336		9,440
Total revenue	85,682	$ 72,483	168,907	$ 141,581
Operating expenses:
Sales and marketing	55,930	41,163	109,235	82,273
Loss from operations	(21,987)	(4,462)	(37,970)	(9,919)
Net loss	$ (21,482)	$ (546)	$ (36,837)	$ (2,715)
Net loss per share:
Basic and diluted	$ (0.23)	$ (0.01)	$ (0.39)	$ (0.03)
Current assets:
Deferred sales commission costs	$ 13,656		$ 13,656		$ 11,234
Other current assets	13,889		13,889		11,765
Non-current assets:
Deferred sales commission costs	29,229		29,229		26,942
Stockholders' equity:
Accumulated deficit	(198,400)		(198,400)		(161,563)
Cash Flow Line Items
Net loss	(21,482)	$ (546)	(36,837)	$ (2,715)
Deferred sales commission costs			(4,675)	0
Other current and noncurrent assets			(1,452)
Net cash provided by operating activities			(4,550)	$ 11,174
ASC 605 \| Previous
Service revenue	81,543		159,785
Product revenue	4,176		9,187
Total revenue	85,719		168,972
Operating expenses:
Sales and marketing	58,806		113,910
Loss from operations	(24,826)		(42,580)
Net loss	$ (24,321)		$ (41,447)
Net loss per share:
Basic and diluted	$ (0.26)		$ (0.44)
Current assets:
Deferred sales commission costs					0
Other current assets					10,040
Non-current assets:
Deferred sales commission costs					0
Stockholders' equity:
Accumulated deficit					(201,464)
Cash Flow Line Items
Net loss	$ (24,321)		$ (41,447)
Deferred sales commission costs			0
Other current and noncurrent assets			(1,517)
Net cash provided by operating activities			(4,550)
ASC 606 \| Adjustment
Service revenue	(197)		(318)
Product revenue	160		253
Total revenue	(37)		(65)
Operating expenses:
Sales and marketing	(2,876)		(4,675)
Loss from operations	2,839		4,610
Net loss	$ 2,839		$ 4,610
Net loss per share:
Basic and diluted	$ 0.03		$ 0.05
Current assets:
Deferred sales commission costs	$ 13,656		$ 13,656		11,234
Other current assets	1,782		1,782		1,725
Non-current assets:
Deferred sales commission costs	29,229		29,229		26,942
Stockholders' equity:
Accumulated deficit	44,667		44,667		$ 39,901
Cash Flow Line Items
Net loss	2,839		4,610
Deferred sales commission costs			(4,675)
Other current and noncurrent assets			65
Net cash provided by operating activities			0
ASC 605 \| Previous
Current assets:
Deferred sales commission costs	0		0
Other current assets	12,017		12,017
Non-current assets:
Deferred sales commission costs	0		0
Stockholders' equity:
Accumulated deficit	$ (243,067)		$ (243,067)

Revenue Recognition - Contract Balances with Contract Customers (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Mar. 31, 2018
Accounts receivable	$ 18,870	$ 16,296
Other current assets	1,782	1,725
Deferred revenue - current	3,354	$ 2,559
Contracts with Customers
Accounts receivable	18,870
Other current assets	1,782
Deferred revenue - current	3,354
Deferred revenue - noncurrent	$ 11

Revenue Recognition - Schedule of Changes in Contract Assets and Deferred Revenues (Details) - USD ($) $ in Thousands	6 Months Ended
	Sep. 30, 2018	Mar. 31, 2018
Contractors [Abstract]
Other current assets	$ 1,782	$ 1,725
Change in other current assets	57
Deferred revenue	3,364	$ 2,578
Change in deferred revenue	$ 786

Revenue Recognition - Estimated Revenue Expected to be Recognized in Future for Performance Obligations (Narrative) (Details) $ in Millions	Sep. 30, 2018 USD ($)
Revenue Recognition - Estimated Revenue Expected To Be Recognized In Future For Performance Obligations Narrative
Revenue, Remaining Performance Obligation	$ 140
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	2 years

Cash, Cash Equivalents and Investments with Hierarchy (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Mar. 31, 2018
Amortized Costs	$ 129,112	$ 152,716
Gross Unrealized Gains	28	10
Gross Unrealized Loss	(231)	(464)
Estimated Fair Value	128,909	152,262
Cash and cash equivalents	24,677	31,703
Short-term marketable investments	104,232	120,559
Aavailable-for-sale investments due within one year	49,792
Aavailable-for-sale investments due after one year	54,440
Level 1
Amortized Costs	24,677	31,073
Gross Unrealized Gains	0	0
Gross Unrealized Loss	0	0
Estimated Fair Value	24,677	31,073
Cash and cash equivalents	24,677	31,073
Short-term marketable investments	0	0
Level 2
Amortized Costs	104,435	121,013
Gross Unrealized Gains	28	10
Gross Unrealized Loss	(231)	(464)
Estimated Fair Value	104,232	120,559
Cash and cash equivalents	0	0
Short-term marketable investments	104,232	120,559
Cash
Amortized Costs	16,585	16,499
Gross Unrealized Gains	0	0
Gross Unrealized Loss	0	0
Estimated Fair Value	16,585	16,499
Cash and cash equivalents	16,585	16,499
Short-term marketable investments	0	0
Money Market Funds \| Level 1
Amortized Costs	8,092	15,204
Gross Unrealized Gains	0	0
Gross Unrealized Loss	0	0
Estimated Fair Value	8,092	15,204
Cash and cash equivalents	8,092	15,204
Short-term marketable investments	0	0
Commercial Paper \| Level 2
Amortized Costs	3,178	13,254
Gross Unrealized Gains	0	0
Gross Unrealized Loss	0	(8)
Estimated Fair Value	3,178	13,246
Cash and cash equivalents	0	0
Short-term marketable investments	3,178	13,246
Corporate Debt \| Level 2
Amortized Costs	69,575	70,631
Gross Unrealized Gains	19	6
Gross Unrealized Loss	(132)	(296)
Estimated Fair Value	69,462	70,341
Cash and cash equivalents	0	0
Short-term marketable investments	69,462	70,341
Municipal Securities \| Level 2
Amortized Costs	5,501	3,385
Gross Unrealized Gains	3	3
Gross Unrealized Loss	0	(1)
Estimated Fair Value	5,504	3,387
Cash and cash equivalents	0	0
Short-term marketable investments	5,504	3,387
Asset-backed Securities \| Level 2
Amortized Costs	21,960	27,063
Gross Unrealized Gains	6	1
Gross Unrealized Loss	(59)	(119)
Estimated Fair Value	21,907	26,945
Cash and cash equivalents	0	0
Short-term marketable investments	21,907	26,945
Agency Bond \| Level 2
Amortized Costs	4,221	4,183
Gross Unrealized Gains	0	0
Gross Unrealized Loss	(40)	(35)
Estimated Fair Value	4,181	4,148
Cash and cash equivalents	0	0
Short-term marketable investments	$ 4,181	4,148
International Government Securities \| Level 2
Amortized Costs		2,497
Gross Unrealized Gains		0
Gross Unrealized Loss		(5)
Estimated Fair Value		2,492
Cash and cash equivalents		0
Short-term marketable investments		$ 2,492

Intangible Assets Schedule Of Intangibles (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Mar. 31, 2018
Gross Carrying Amount	$ 34,569	$ 31,681
Accumulated Amortization	(22,407)	(19,723)
Net Carrying Amount	12,162	11,958
Technology
Gross Carrying Amount	22,902	19,702
Accumulated Amortization	(12,755)	(10,535)
Net Carrying Amount	10,147	9,167
Customer relationships
Gross Carrying Amount	9,464	9,776
Accumulated Amortization	(7,639)	(7,366)
Net Carrying Amount	1,825	2,410
Trade names/domains
Gross Carrying Amount	2,108	2,108
Accumulated Amortization	(1,918)	(1,727)
Net Carrying Amount	190	381
In-process research and development
Gross Carrying Amount	95	95
Accumulated Amortization	(95)	(95)
Net Carrying Amount	$ 0	$ 0

Intangible Assets Schedule Of Future Amortization Of Intangibles (Details) $ in Thousands	Sep. 30, 2018 USD ($)
Intangible Assets Schedule Of Future Amortization Of Intangibles
Remaining 2019	$ 2,699
2020	4,716
2021	2,753
2022	1,766
2023	228
Total	$ 12,162

Changes in Carrying Amount of Goodwill by Location (Detail) $ in Thousands	6 Months Ended
	Sep. 30, 2018 USD ($)
Goodwill, beginning balance	$ 40,054
Additions due to acquisitions	300
Foreign currency translation	(859)
Goodwill, ending balance	39,495
Americas
Goodwill, beginning balance	27,309
Additions due to acquisitions	300
Foreign currency translation	0
Goodwill, ending balance	27,609
Europe
Goodwill, beginning balance	12,745
Additions due to acquisitions	0
Foreign currency translation	(859)
Goodwill, ending balance	$ 11,886

Commitments and Contingencies (Operating Leases) (Details) $ in Thousands	Sep. 30, 2018 USD ($)
Year ending March 31:
Remaining 2019	$ 2,937
2020	6,918
2021	8,936
2022	8,826
2023	8,335
Thereafter	54,678
Total	$ 90,630

Commitments and Contingencies (Operating Leases Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Commitments And Contingencies Operating Leases Narrative
Rent expense	$ 2.6	$ 1.4	$ 5.3	$ 2.8

Stock-based Compensation Stock-Based Compensation Expense By Statement Of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Stock-based employee compensation expense related to employee stock options and employee stock purchases, pre tax	$ 10,129	$ 6,657	$ 19,040	$ 13,008
Cost of service revenue
Stock-based employee compensation expense related to employee stock options and employee stock purchases, pre tax	638	473	1,096	864
Cost of product revenue
Stock-based employee compensation expense related to employee stock options and employee stock purchases, pre tax	0	0	0	0
Research and development
Stock-based employee compensation expense related to employee stock options and employee stock purchases, pre tax	2,823	1,314	5,017	2,651
Sales and marketing
Stock-based employee compensation expense related to employee stock options and employee stock purchases, pre tax	3,826	2,568	7,672	5,215
General and administrative
Stock-based employee compensation expense related to employee stock options and employee stock purchases, pre tax	$ 2,842	$ 2,302	$ 5,255	$ 4,278

Stock-based Compensation Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Stock-based Compensation Option Activity
Balance at beginning of period	3,998	4,462
Granted	195	229
Exercised	(574)	(329)
Cancelled/forfeited	(97)	(134)
Balance at end of period	3,522	4,228
Weighted-average exercise price of options granted during period	$ 8.47	$ 5.28
Total intrinsic value of options exercised during the period	$ 8,525	$ 3,537
Weighted Average Remaining recognition period in years	2 years 187 days	1 year 342 days

Stock-based Compensation Stock Awards Activity (Details) - $ / shares shares in Thousands	6 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Stock-based Compensation Stock Awards Activity
Balance at beginning of period	5,939	4,950
Granted	2,112	2,446
Vested	(1,720)	(1,225)
Canceled and forfeited	(433)	(272)
Balance at end of period	5,898	5,899
Weighted-average grant date fair market value of restricted stock rights granted	$ 22.01	$ 14.09
Weighted-average remaining contractual term, in years, ending balance	2 years 158 days	2 years 270 days

Stock-based Compensation (Narrative) (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017
Stock-based Compensation Narrative
Total unrecognized compensation expense related to stock awards	$ 79,121	$ 63,323

Stock Repurchases 2017 (Narrative) (Details) - USD ($)	6 Months Ended
Stock Repurchases 2017 (Narrative) (Details) - USD ($)	Sep. 30, 2018	Mar. 31, 2018
Stock Repurchases 2017 Narrative
Stock repurchased and retired during period, shares	0
Stock repurchased and retired during period, value	$ 0
Stock repurchase program, authorized amount		$ 25,000,000
Stock repurchase program, remaining authorized repurchase amount		$ 7,100,000

Income Taxes (Narrative) (Details)	6 Months Ended
Income Taxes (Narrative) (Details)	Sep. 30, 2018	Sep. 30, 2017
Effective Income Tax Rate, Percent	(1.00%)	86.00%

Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Numerator:
Net loss available to common stockholders	$ (21,482)	$ (546)	$ (36,837)	$ (2,715)
Denominator:
Common shares - basic and diluted	93,831	91,689	93,449	91,667
Net loss per share:
Basic and diluted	$ (0.23)	$ (0.01)	$ (0.39)	$ (0.03)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Net Income (Loss) Per Share (Options and Awards Excluded) (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Anti-dilutive shares	9,419	10,127	9,419	10,127
Stock options
Anti-dilutive shares	3,522	4,228	3,522	4,228
Stock awards
Anti-dilutive shares	5,897	5,899	5,897	5,899

Segment Reporting Revenue and Property and Equipment by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Mar. 31, 2018
Net revenue	$ 85,682	$ 72,483	$ 168,907	$ 141,581
Depreciation and amortization expense	5,659	3,631	10,837	7,358
Net income (loss)	(21,482)	(546)	(36,837)	(2,715)
Intersegment revenues eliminated in consolidation	6,500	4,400	13,100	6,900
Total assets	309,632		309,632		$ 277,209
Property and equipments, net	42,395		42,395		35,732
Americas
Net revenue	77,100	65,121	151,965	127,526
Depreciation and amortization expense	4,665	2,336	8,972	4,869
Net income (loss)	(21,237)	970	(35,586)	1,379
Total assets	265,373		265,373		240,099
Property and equipments, net	34,958		34,958		27,270
Europe
Net revenue	8,582	7,362	16,942	14,055
Depreciation and amortization expense	994	1,295	1,865	2,489
Net income (loss)	(245)	$ (1,516)	(1,251)	$ (4,094)
Total assets	44,259		44,259		37,110
Property and equipments, net	$ 7,437		$ 7,437		$ 8,462

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Acquisitions (Details) - USD ($) $ in Thousands	1 Months Ended	6 Months Ended
Acquisitions (Details) - USD ($) $ in Thousands	Apr. 30, 2018	Sep. 30, 2018
Assets acquired:
Goodwill		$ 300
Business Acquisition, Description of Acquired Entity	<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">In April 2018, the Company entered into an asset purchase agreement with MarianaIQ, Inc. The total aggregate purchase price consisted of cash paid at closing and cash deposited into escrow to be held for fifteen months as security against indemnity claims made by the Company after the closing date. See Note 11 for additional information.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p>
MarianaIQ
Assets acquired:
Intangible assets		3,200
Goodwill	$ 300
Net identifiable assets acquired		3,200
Total consideration transferred		$ 3,500
Cash	2,600
Contingent payments	900
Total purchase price	$ 3,500
Business Acquisition, Name of Acquired Entity	MarianaIQ Inc.
Business Acquisition, Description of Acquired Entity	<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><i>MarianaIQ</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">On April 12, 2018, the Company entered into an Asset Purchase Agreement (the "Agreement") with MarianaIQ Inc. (MarianaIQ) for the purchase of certain assets of MarianaIQ. The total aggregate purchase price consisted of cash paid to MarianaIQ at closing, and cash to be held in escrow by the Company for fifteen months, as security against indemnity claims asserted by the Company after the closing date. The escrow amount is recorded as other accrued liabilities on the consolidated balance sheets as of September 30, 2018.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></p>
Business Combination, Assets and Liabilities, Description	<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">The Company recorded the acquired developed technology as an identifiable intangible asset with an estimated useful life of two years. The fair value of the technology was based on estimates and assumptions made by management using a cost approach method. The intangible asset is amortized on a straight-line basis over two years.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">The excess of the consideration transferred over the aggregate fair value of the asset acquired was recorded as goodwill. The amount of goodwill recognized was primarily attributable to the expected contributions of the entity to the overall corporate strategy in addition to the acquired workforce.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">MarianaIQ did not contribute materially to revenue or net loss for the period of acquisition to September 30, 2018. Goodwill recognized upon acquisition is expected to be deductible for income tax purposes and is included in the Americas reporting unit (see Note 5). Total acquisition costs were immaterial.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p>

Subsequent Events (Narrative) (Details)	6 Months Ended
Subsequent Events (Narrative) (Details)	Sep. 30, 2018
Subsequent Events Narrative
Subsequent Event, Description	<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">On October 26, 2018, the Company entered into an Asset Purchase Agreement with Atlassian Corporation Plc. (Atlassian) through which the Company purchased certain assets from Atlassian relating to the Jitsi open source video communications technology (Jitsi). The Company intends to integrate Jitsi's video collaboration capabilities into 8x8's technology platform to further enhance the Company's video and X Series platform offerings.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>