0001023731-19-000079 | 10-Q | XBRL Viewer

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Cover Page - shares	3 Months Ended
Cover Page - shares	Jun. 30, 2019	Jul. 24, 2019
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2019
Document Transition Report	false
Entity File Number	000-21783
Entity Registrant Name	8X8 INC /DE/
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	77-0142404
Entity Address, Address Line One	2125 O'Nel Drive
Entity Address, City or Town	San Jose
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95131
City Area Code	408
Local Phone Number	727-1885
Title of 12(b) Security	COMMON STOCK, PAR VALUE $.001 PER SHARE
Trading Symbol	EGHT
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		99,287,508
Entity Central Index Key	0001023731
Amendment Flag	false
Current Fiscal Year End Date	--03-31
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2020

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2019	Mar. 31, 2019
Current assets:
Cash and cash equivalents	$ 269,025	$ 276,583
Short-term investments	27,486	69,899
Accounts receivable, net	23,361	20,181
Deferred sales commission costs	16,815	15,601
Other current assets	20,441	15,127
Total current assets	357,128	397,391
Property and equipment, net	57,717	52,835
Operating lease, right-of-use assets	18,058
Intangible assets, net	10,125	11,680
Goodwill	39,403	39,694
Long-term investments	21,667	0
Restricted cash	8,100	8,100
Deferred sales commission costs, non-current	36,843	33,693
Other assets	9,452	2,965
Total assets	558,493	546,358
Current liabilities:
Accounts payable	32,723	32,280
Accrued compensation	22,088	18,437
Accrued taxes	11,602	13,862
Operating lease liabilities, current	7,063
Deferred revenue	4,088	3,336
Other accrued liabilities	11,270	6,790
Total current liabilities	88,834	74,705
Operating lease liabilities, non-current	12,044
Convertible senior notes, net	219,208	216,035
Other liabilities, non-current	8,260	6,228
Total liabilities	328,346	296,968
Commitments and contingencies (Note 7)
Stockholders' equity:
Common stock	97	96
Additional paid-in capital	522,501	506,949
Accumulated other comprehensive loss	(7,884)	(7,353)
Accumulated deficit	(284,567)	(250,302)
Total stockholders' equity	230,147	249,390
Total liabilities and stockholders' equity	$ 558,493	$ 546,358

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Total revenue	$ 96,675	$ 83,225
Cost of revenue and operating expenses:
Research and development	18,331	13,050
Sales and marketing	53,599	40,495
General and administrative	19,607	14,833
Total operating expenses	129,228	99,208
Loss from operations	(32,553)	(15,983)
Other (expense) income, net	(1,564)	719
Loss before provision for income taxes	(34,117)	(15,264)
Provision for income taxes	148	91
Net loss	$ (34,265)	$ (15,355)
Net loss per share:
Basic and diluted (in dollars per share)	$ (0.36)	$ (0.16)
Weighted-average common shares outstanding:
Basic and diluted (in shares)	96,429	93,064
Service
Total revenue	$ 92,372	$ 78,121
Cost of revenue and operating expenses:
Cost of goods and services sold	31,967	24,549
Product
Total revenue	4,303	5,104
Cost of revenue and operating expenses:
Cost of goods and services sold	$ 5,724	$ 6,281

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Statement of Comprehensive Income [Abstract]
Net loss	$ (34,265)	$ (15,355)
Other comprehensive loss, net of tax
Unrealized gain on investments in securities	121	113
Foreign currency translation adjustment	(652)	(1,672)
Comprehensive loss	$ (34,796)	$ (16,914)

- Definition

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

+ References + Details

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit
Beginning balance (shares) at Mar. 31, 2018		92,847,354
Beginning balance at Mar. 31, 2018	$ 218,774	$ 93	$ 425,790	$ (5,645)	$ (201,464)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under stock plans, less withholding (shares)		403,377
Issuance of common stock under stock plans, less withholding	777	$ 0	777
Stock-based compensation expense	9,304		9,304
Unrealized investment gain (loss)	113			113
Foreign currency translation adjustment	(1,672)			(1,672)
Net loss	(15,355)				(15,355)
Ending balance (shares) at Jun. 30, 2018		93,250,731
Ending balance at Jun. 30, 2018	251,842	$ 93	435,871	(7,204)	(176,918)
Beginning balance (shares) at Mar. 31, 2019		96,119,888
Beginning balance at Mar. 31, 2019	249,390	$ 96	506,949	(7,353)	(250,302)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under stock plans, less withholding (shares)		451,308
Issuance of common stock under stock plans, less withholding	1,494	$ 1	1,493
Stock-based compensation expense	14,059		14,059
Unrealized investment gain (loss)	121			121
Foreign currency translation adjustment	(652)			(652)
Net loss	(34,265)				(34,265)
Ending balance (shares) at Jun. 30, 2019		96,571,196
Ending balance at Jun. 30, 2019	$ 230,147	$ 97	$ 522,501	$ (7,884)	$ (284,567)

- Definition

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

+ References + Details

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities:
Net loss	$ (34,265)	$ (15,355)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation	2,325	2,061
Amortization of intangible assets	1,524	1,432
Amortization of capitalized software	3,805	1,685
Amortization of debt discount and issuance costs	3,173	0
Amortization of deferred sales commission costs	4,189	3,253
Operating lease expense, net of accretion	2,085
Non-cash lease expenses		1,200
Stock-based compensation	13,597	8,911
Other	1,026	372
Changes in assets and liabilities:
Accounts receivable, net	(3,765)	(1,497)
Deferred sales commission costs	(8,707)	(5,052)
Other current and non-current assets	(5,740)	(419)
Accounts payable and accruals	(588)	3,905
Deferred revenue	832	293
Net cash (used in) provided by operating activities	(20,509)	789
Cash flows from investing activities:
Purchases of property and equipment	(1,984)	(1,223)
Purchase of businesses	0	(2,625)
Capitalized software development costs	(7,738)	(5,112)
Proceeds from maturities of investments	4,600	18,400
Proceeds from sales of investments	29,793	11,914
Purchases of investments	(13,500)	(19,534)
Net cash provided by investing activities	11,171	1,820
Cash flows from financing activities:
Finance lease payments	(130)
Finance lease payments		(277)
Tax-related withholding of common stock	(23)	(229)
Proceeds from issuance of common stock under employee stock plans	1,520	1,007
Net cash provided by financing activities	1,367	501
Effect of exchange rate changes on cash	413	(256)
Net (decrease) increase in cash and cash equivalents, and restricted cash	(7,558)	2,854
Cash, cash equivalents, and restricted cash at the beginning of the period	284,683	39,803
Cash, cash equivalents, and restricted cash at the end of the period	277,125	42,657
Supplemental cash flow information
Income taxes paid	$ 218	$ 127

DESCRIPTION OF BUSINESS	3 Months Ended
DESCRIPTION OF BUSINESS	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS	DESCRIPTION OF BUSINESS 8x8, Inc. ("8x8" or the "Company") was incorporated in California in February 1987 and was reincorporated in Delaware in December 1996. The unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company conducts its operations through one reportable segment. The Company is a leading cloud provider of enterprise Software-as-a-Service (SaaS) communications solutions, that enable businesses of all sizes to communicate faster and smarter across voice, video meetings, chat and contact centers, transforming both employee and customer experiences with communications that work simply, integrate seamlessly, and perform reliably. From one proprietary cloud technology platform, customers have access to unified communications, team collaboration, video conferencing, contact center, data and analytics and other services. Since fiscal 2004, substantially all revenue has been generated from the sale of communications services and related hardware. Prior to fiscal 2003, the Company's main business was Voice over Internet Protocol semiconductors.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Jun. 30, 2019
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	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 condensed consolidated financial statements refers to the fiscal year ended March 31 of the calendar year indicated (for example, fiscal 2020 refers to the fiscal year ending March 31, 2020). The accompanying interim condensed consolidated financial statements are unaudited and have been prepared on substantially the same basis as our annual consolidated financial statements for the fiscal year ended March 31, 2019 with the exception of new lease accounting 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 U.S. generally accepted accounting principles ("GAAP") have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"), regarding interim financial reporting. In the opinion of the Company's management, these interim condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of our financial position, results of operations, and cash flows for the periods presented. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates. The March 31, 2019 year-end condensed consolidated balance sheet data in this document were derived from audited consolidated financial statements and does not include all of the disclosures required by GAAP. These condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements as of and for the fiscal year ended March 31, 2019 and notes thereto included in the Company's fiscal 2019 Annual Report on Form 10-K. The results of operations and cash flows for the interim periods included in these condensed consolidated financial statements are not necessarily indicative of the results to be expected for any future period or the entire fiscal year. The condensed consolidated financial statements include the accounts of 8x8 and its subsidiaries. All material intercompany accounts and transactions have been eliminated. USE OF ESTIMATES The preparation of the condensed 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 condensed 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. RECLASSIFICATIONS AND OTHER CHANGES Certain prior year amounts in the statement of cash flows have been reclassified to conform with current year presentation. SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies used in preparation of these condensed consolidated financial statements are disclosed in our Annual Report on Form 10-K for the fiscal year ended March 31, 2019 filed with the SEC on May 21, 2019, and there have been no changes to the Company's significant accounting policies during the three months ended June 30, 2019 except for the accounting policies described below that were updated as a result of adopting Accounting Standards Update ("ASU") 2016-02, Leases. All amounts and disclosures set forth herein are in compliance with this standard. RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS Effective April 1, 2019, the Company adopted ASU No. 2016-02 (“ASU 2016-02”), Leases using the modified retrospective transition approach utilizing the effective date as the date of initial application. ASU 2016-02 establishes a new lease accounting model for leases, which requires lessees to recognize right-of-use assets and lease liabilities on the balance sheet, but lease expense will be recognized on the income statement in a manner similar to previous requirements. Prior years presented have not been adjusted for ASU 2016-02 and continue to be reported in accordance with our historical accounting policy. The new standard provides a number of optional practical expedients in transition. The Company has elected the package of practical expedients permitted under the new lease standard, which among other things, allows the carryforward the historical lease classification. As a result, there was no impact to opening retained earnings. The new standard also provides a practical expedient for an entity’s ongoing accounting. The Company has elected such practical expedient to not separate lease and non-lease components for all leases. It also made an accounting policy election to not recognize right-of-use assets and lease liabilities on the balance sheet for leases with a term of 12 months or less and will recognize lease payments as an expense on a straight-line basis over the lease term. The adoption of the new lease standard resulted in the recognition of right-of-use assets and lease liabilities of approximately $20.0 million and $21.4 million, respectively, for existing operating leases. The adoption of the new lease standard did not have a material impact on the Company's accumulated deficit as of April 1, 2019. For additional information on leases and the impact of the new lease standard, refer to Note 6. RECENT ACCOUNTING PRONOUNCEMENTS In August 2018, the Financial Accounting Standards Board ("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 condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal Use Software (Subtopic 350-40), which reduces complexity 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 condensed consolidated financial statements.

REVENUE RECOGNITION

3 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

Revenue Recognition

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 receive 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 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 as the services are rendered.

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 condensed consolidated balance sheets, depending on if their reduction will be recognized during the succeeding twelve-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 twelve-month period are recorded as current deferred revenues in the condensed consolidated balance sheets, with the remainder recorded as other non-current liabilities in the condensed consolidated balance sheets.

Costs to Obtain a Customer Contract

Sales commissions and related expenses are considered incremental and recoverable costs of acquiring customer contracts. These costs are capitalized as 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 condensed consolidated statement of operations.

Disaggregation of Revenue

The Company disaggregates its revenue by geographic region. See Note 12 for more information.

Contract Balances

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



	June 30, 2019
Accounts receivable, net	$	23,361
Contract assets	$	9,375
Deferred revenue - current	$	4,088
Deferred revenue - non-current	$	67

Changes in the contract assets and the deferred revenue balances during the three months ended June 30, 2019 are as follows (in thousands):



	June 30, 2019		March 31, 2019		$ Change
Contract assets	$	9,375	$	5,717	$	3,658
Deferred revenue	$	4,155	$	3,342	$	813

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. Revenues of $2.7 million recognized during the three months ended June 30, 2019, were included in the deferred revenues balance at the beginning of the period, which was offset by additional deferrals during the period.

FAIR VALUE MEASUREMENTS

3 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

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



	Amortized		Gross Unrealized		Gross Unrealized			Estimated		Cash and Cash		Short-Term		Long-Term
As of June 30, 2019	Costs		Gain		Loss			Fair Value		Equivalents		Investments		Investments
Cash	$	23,533	$	—	$	—		$	23,533	$	23,533	$	—	$	—
Level 1:
Money market funds	240,905		—		—			240,905		240,905		—		—
Treasury securities	2,910		2		—			2,912		—		—		2,912
Subtotal	267,348		2		—			267,350		264,438		—		2,912
Level 2:
Corporate bonds	40,128		122		(3		)	40,247		—		23,613		16,634
Commercial paper	6,176		—		(2		)	6,174		4,587		1,587		—
Municipal securities	2,098		23		—			2,121		—		—		2,121
Agency bond	2,289		—		(3		)	2,286		—		2,286		—
Subtotal	50,691		145		(8		)	50,828		4,587		27,486		18,755
Total assets	$	318,039	$	147	$	(8	)	$	318,178	$	269,025	$	27,486	$	21,667



	Amortized		Gross Unrealized		Gross Unrealized			Estimated		Cash and Cash		Short-Term
As of March 31, 2019	Costs		Gain		Loss			Fair Value		Equivalents		Investments
Cash	$	25,364	$	—	$	—		$	25,364	$	25,364	$	—
Level 1:
Money market funds	251,219		—		—			251,219		251,219		—
Subtotal	276,583		—		—			276,583		276,583		—
Level 2:
Corporate debt	46,516		51		(29		)	46,538		—		46,538
Municipal securities	5,511		17		—			5,528		—		5,528
Asset backed securities	13,596		9		(17		)	13,588		—		13,588
Agency bond	4,260		—		(15		)	4,245		—		4,245
Subtotal	69,883		77		(61		)	69,899		—		69,899
Total assets	$	346,466	$	77	$	(61	)	$	346,482	$	276,583	$	69,899

Contractual maturities of investments as of June 30, 2019 are set forth below (in thousands):



	Estimated
	Fair Value
Due within one year	$	27,486
Due after one year	21,667
Total	$	49,153

Historically, the Company had maintained all investments as short-term investments on its balance sheet, as the Company could liquidate these investments at any time and did not limit its liquidation of investments by contractual maturity date. Given the recent issuance of the convertible senior note, and the associated increased cash, cash equivalents and investment balances. The Company expects to hold certain investments for at least 12-months from the reporting date and will record these investments in either short-term or long-term investments in alignment with the contractual maturity dates.

As of June 30, 2019, the estimated fair value of the Company's outstanding convertible senior notes (the Notes) was $219.2 million. The fair value of the Notes was determined based on the closing price for the Notes on the last trading day of the reporting period and is considered as Level 2 in the fair value hierarchy.

- 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 AND GOODWILL

3 Months Ended

Jun. 30, 2019

Intangible Assets, Net (Including Goodwill) [Abstract]

INTANGIBLE ASSETS AND GOODWILL

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



	June 30, 2019							March 31, 2019
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Technology	$	19,894	$	(10,911	)	$	8,983	$	25,702	$	(15,409	)	$	10,293
Customer relationships	6,125		(4,983		)	1,142		9,467		(8,080		)	1,387
Total acquired identifiable intangible assets	$	26,019	$	(15,894	)	$	10,125	$	37,277	$	(25,597	)	$	11,680

At June 30, 2019, 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 2020	$	4,573
2021	3,557
2022	1,766
2023	229
Total	$	10,125

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



	Total
Balance at March 31, 2019	$	39,694
Foreign currency translation	(291		)
Balance at June 30, 2019	$	39,403

RIGHT-OF-USE ASSETS AND LEASES

3 Months Ended

Jun. 30, 2019

Leases [Abstract]

RIGHT-OF-USE ASSETS AND LEASES

The Company primarily leases facilities for office and data center space under non-cancellable operating leases for its U.S. and international locations that expire at various dates through 2026. For leases with a term greater than 12 months, the Company recognizes a right-of-use asset and a lease liability based on the present value of lease payments over the lease term. The Company’s leases have remaining terms of one to seven years and some of the leases include a Company option to extend the lease term for one to five years, or more, which if reasonably certain to exercise, the Company includes in the determination of lease payments. The lease agreements do not contain any material residual value guarantees or material restrictive covenants.

As most of the Company's leases do not provide a readily determinable implicit rate, the Company uses the incremental borrowing rate at lease commencement, which was determined using a portfolio approach, based on the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. The Company uses the implicit rate when a rate is readily determinable. Operating lease expense is recognized on a straight-line basis over the lease term.

Leases with an initial term of 12 months or less are not recognized on the balance sheet and the expense for these short-term leases is recognized on a straight-line basis over the lease term. Common area maintenance fees (or CAMs) and other charges related to these leases continue to be expensed as incurred. Short-term lease expense was not material to the Company’s condensed consolidated statements of operations for the three months ended June 30, 2019. Variable lease payments are not included in the lease payments to measure the lease liability and are expensed as incurred.

The following table provides the components of the Company's lease right-of-use assets and liabilities as of June 30, 2019 (in thousands):



	June 30, 2019
Assets
Operating lease, right-of-use assets	$	18,058

Liabilities
Operating lease liabilities, current	$	7,063
Operating lease liabilities, non-current	12,044
Total operating lease liabilities	$	19,107

During the three months ended June 30, 2019, operating lease expense was approximately $2.1 million. Variable lease cost and short-term lease cost were immaterial during the three months ended June 30, 2019.

The following table presents supplemental information for the three months ended June 30, 2019 (in thousands, except for weighted average):



Weighted average remaining lease term	3.9 years
Weighted average discount rate	4.0%
Cash paid for amounts included in the measurement of lease liabilities	$	2,252
Operating cash flow from operating leases	$	2,252

The following table presents maturity of lease liabilities under the Company's non-cancelable operating leases as of June 30, 2019 (in thousands):



Remaining 2020	$	6,008
2021	5,666
2022	4,275
2023	1,381
2024	1,111
Thereafter	2,221
Total lease payments	$	20,662
Less: imputed interest	(1,555		)
Present value of lease liabilities	$	19,107

As of June 30, 2019, the Company does not have any additional operating leases that have not yet commenced and as such, have not yet been recognized on the Company’s condensed condensed consolidated balance sheet.

The Company's lease agreement (the "Agreement") with CAP Phase I, a Delaware limited liability company (the "Landlord") for the Coleman property is not included in the right-of-use assets and operating lease liabilities as of June 30, 2019. On April 30, 2019, the Company entered into an assignment and assumption of the Company's previously executed lease agreement with the Landlord, and Roku Inc., a Delaware corporation ("Roku"), whereby the Company assigned to Roku this lease that had been executed between the Company and the Landlord on January 23, 2018. Pursuant to the Agreement, the Company expects to be released from all of its obligations under the Lease and related standby letter of credit by the end of the Company’s fiscal year ending March 31, 2022 or shortly thereafter. The Company has entered into a new lease for its headquarters in Campbell, California, see note 13.

COMMITMENTS AND CONTINGENCIES	3 Months Ended
COMMITMENTS AND CONTINGENCIES	Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES 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 from its customers 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 accrued taxes when facts relating to specific exposures warrant such adjustment. Legal Proceedings The Company, from time to time may be involved in a variety of claims, lawsuits, investigations and other proceedings, including patent infringement claims, employment litigation, regulatory compliance matters and contractual disputes, that can arise in the normal course of the Company's operations. Litigation is inherently unpredictable and subject to significant uncertainties, and there can be no assurances that favorable final outcomes will be obtained. Future litigation could be costly to defend, could impose significant burdens on employees and 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.

CONVERTIBLE SENIOR NOTES AND CAPPED CALL

3 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

CONVERTIBLE SENIOR NOTES AND CAPPED CALL

Convertible Senior Notes

In February 2019, the Company issued $287.5 million aggregate principal amount of 0.50% convertible senior notes (the "Notes") due 2024 in a private placement, including the exercise in full of the initial purchasers' option to purchase additional notes. The Notes are senior unsecured obligations of the Company and interest is payable semiannually in arrears on February 1 and August 1 of each year, beginning on August 1, 2019. The Notes will mature on February 1, 2024, unless earlier repurchased, redeemed, or converted. The total net proceeds from the debt offering, after deducting initial purchase discounts, debt issuance costs, and costs of the capped call transactions described below, were approximately $245.8 million.

Each $1,000 principal amount of the Notes is initially convertible into 38.9484 shares of the Company’s common stock, par value $0.001, which is equivalent to an initial conversion price of approximately $25.68 share. The conversion rate is subject to adjustment upon the occurrence of certain specified events but will not be adjusted for any accrued and unpaid interest. In addition, upon the occurrence of certain corporate events that occur prior to the maturity date or following the Company's issuance of a notice of redemption, in each case as described in the Indenture, the Company will, in certain circumstances, increase the conversion rate for a holder that elects to convert its Notes in connection with such a corporate event or during the relevant redemption period.

The Notes will be convertible at certain times and upon the occurrence of certain events in the future. Further, on or after October 1, 2023, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their Notes, regardless of the foregoing circumstances.

Upon conversion, the Company will satisfy its conversion obligation by paying or delivering, as the case may be, cash, shares of common stock, or a combination of cash and shares of common stock, at the Company's election. The Company’s current intent is to settle the principal amount of the Notes in cash upon conversion.

During the three months ended June 30, 2019, the conditions allowing holders of the Notes to convert were not met.

The Company may not redeem the Notes prior to February 4, 2022. On or after February 4, 2022, the Company may redeem for cash all or part of the Notes, at the redemption price equal to 100% of the principal amount thereof, plus accrued and unpaid interest, if the last reported sale price of the common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides a redemption notice. If a fundamental change (as defined in the indenture governing the notes) occurs at any time, holders of Notes may require the Company to repurchase for cash all or any portion of their Notes at a repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date.

The Notes are senior unsecured obligations and will rank senior in right of payment to any of the Company’s indebtedness that is expressly subordinated in right of payment to the Notes; equal in right of payment with the Company’s existing and future liabilities that are not so subordinated; effectively junior in right of payment to any of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all indebtedness and other liabilities (including trade payables) of current or future subsidiaries of the Company.

The net carrying amount of the liability component of the Notes was as follows (in thousands):



	June 30, 2019			March 31, 2019
Principal	$	287,500		$	287,500
Unamortized debt discount	(67,730		)	(70,876		)
Unamortized issuance costs	(562		)	(589		)
Net carrying amount	$	219,208		$	216,035

Interest expense related to the Notes was as follows (in thousands):



	Three Months Ended June 30, 2019
Contractual interest expense	$	359
Amortization of debt discount	3,146
Amortization of issuance costs	26
Total interest expense	$	3,531

Capped Call

In connection with the pricing of the Notes, the Company entered into privately negotiated capped call transactions ("Capped Calls") with certain counterparties. The Capped Calls each have an initial strike price of approximately $25.68 per share, subject to certain adjustments, which corresponds to the initial conversion price of the Notes. The Capped Calls have initial cap prices of $39.50 per share, subject to certain adjustments. The Capped Calls are expected to partially offset the potential dilution to the Company’s Common Stock upon any conversion of the Notes, with such offset subject to a cap based on the cap price. The Capped Calls cover, subject to anti-dilution adjustments, approximately 11.2 million shares of the Company’s Common Stock. The Capped Calls are subject to adjustment upon the occurrence of specified extraordinary events affecting the Company, including merger events, tender offers and announcement events. In addition, the Capped Calls are subject to certain specified additional disruption events that may give rise to a termination of the Capped Calls, including nationalization, insolvency or delisting, changes in law, failures to deliver, insolvency filings and hedging disruptions. For accounting purposes, the Capped Calls are separate transactions, and not part of the terms of the Notes. As these transactions meet certain accounting criteria, the Capped Calls are recorded in stockholders' equity and are not accounted for as derivatives. The cost of $33.7 million incurred to purchase the Capped Calls was recorded as a reduction to additional paid-in capital and will not be remeasured.

STOCK-BASED COMPENSATION

3 Months Ended

Jun. 30, 2019

Share-based Payment Arrangement [Abstract]

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 June 30,
	2019		2018
Cost of service revenue	$	1,731	$	1,026
Research and development	3,864		2,194
Sales and marketing	3,921		2,398
General and administrative	4,081		3,293
Total	$	13,597	$	8,911



	Three Months Ended June 30,
	2019			2018
Stock options outstanding at the beginning of the period:	3,114			3,998
Options granted	—			81
Options exercised	(124		)	(115		)
Options canceled and forfeited	(16		)	(73		)
Options outstanding at the end of the period:	2,974			3,891
Weighted-average fair value of grants during the period	$	—		$	8.57
Total intrinsic value of options exercised during the period	$	1,402		$	1,186
Weighted-average remaining recognition period at period-end (in years)	2.46			2.35

Stock awards outstanding at the beginning of the period:	7,820			5,939
Stock awards granted	1,147			948
Stock awards vested	(329		)	(299		)
Stock awards canceled and forfeited	(445		)	(168		)
Stock awards outstanding at the end of the period:	8,193			6,420
Weighted-average fair value of grants during the period	$	22.40		$	22.20
Weighted-average remaining recognition period at period-end (in years)	2.11			2.40
Total unrecognized compensation expense at period-end	$	109,422		$	67,025

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 (the "2017 Repurchase Plan"). The 2017 Repurchase 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 Repurchase Plan at June 30, 2019 was approximately $7.1 million. There were no stock repurchases under the 2017 Repurchase Plan during the three month period ended June 30, 2019.

INCOME TAXES	3 Months Ended
INCOME TAXES	Jun. 30, 2019
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXESThe Company's effective tax rate was -0.4% and -0.6% for the three months ended June 30, 2019 and 2018, respectively. The difference in the effective tax rate and the U.S. federal statutory rate was primarily due to the full valuation allowance the Company continues to maintain against its deferred tax assets. The effective tax rate is calculated by dividing the income tax provision by net loss before income tax expense.

NET LOSS PER SHARE

3 Months Ended

Jun. 30, 2019

Earnings Per Share [Abstract]

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 June 30,
	2019			2018
Numerator:
Net loss available to common stockholders	$	(34,265	)	$	(15,355	)
Denominator:
Common shares - basic and diluted	96,429			93,064
Net loss per share
Basic and diluted	$	(0.36	)	$	(0.16	)

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 June 30,
	2019	2018
Stock options	2,974	3,891
Stock awards	8,188	6,420
Potential shares to be issued from ESPP	636	620
Total anti-dilutive shares	11,798	10,931

GEOGRAPHICAL INFORMATION

3 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

GEOGRAPHICAL INFORMATION

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



	Three Months Ended June 30,
	2019		2018
Revenue by geographic area:
Americas (principally US)	$	86,736	$	74,865
Europe (principally UK)	9,939		8,360
	$	96,675	$	83,225



	June 30, 2019		March 31, 2019
Property and equipment by geographic area:
Americas (principally US)	$	50,866	$	45,639
Europe (principally UK)	6,851		7,196
	$	57,717	$	52,835

SUBSEQUENT EVENTS	3 Months Ended
SUBSEQUENT EVENTS	Jun. 30, 2019
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS New Company Headquarters On July 3, 2019, the Company entered into a lease for a new company headquarters to rent approximately 177,815 square feet of office space as the sole tenant in a new five-story office building located at 675 Creekside Way, Campbell, CA 95008. The Company plans to move to this new location by March 31, 2020. The lease is for a 132-month term, anticipated to begin on January 1, 2020. The Company has the option to extend the lease for two additional five-year terms, on substantially the same terms and conditions as the prior term, but with the base rent rate adjusted to fair market value at that time. Base rent is approximately $657,900 per month for the first 12 months of the lease, with the rate increasing by approximately 3% on each anniversary of the lease. The Company is responsible for paying its share of building and common area expenses. The Company is entitled to full rent abatement during the first 12 months of the lease term. The Company is also entitled to a tenant improvement allowance of approximately $15.4 million. The Company will pay to the landlord a security deposit in the amount of approximately $2 million, which may be drawn down in the event the Company defaults under the lease. Wavecell Acquisition On July 17, 2019, the Company entered into a Share Purchase Agreement (the “Share Purchase Agreement”) with Wavecell Pte. Ltd., a corporation incorporated under the laws of the Republic of Singapore (“Wavecell”), the equity holders of Wavecell (collectively, the “Sellers”), and Qualgro Partners Pte. Ltd., in its capacity as the representative of the equity holders of Wavecell. Pursuant to the Share Purchase Agreement, the Company acquired all of the outstanding shares and other equity interests of Wavecell (the “Transaction”) for total consideration of approximately $125 million, comprised of approximately $69.0 million in cash and $56 million in shares of common stock of the Company. The Transaction is subject to customary purchase price adjustments and escrow and holdback arrangements as provided in the Share Purchase Agreement. Upon the closing of the Transaction, Wavecell became a wholly-owned subsidiary of the Company. The Share Purchase Agreement contains representations, warranties and covenants customary for acquisitions of this type. 8x8 issued an aggregate of 2,628,761 shares of its common stock in connection with the closing of the Transaction, including certain shares for employee retention purposes subject to vesting based on time-based and performance-based criteria for Wavecell employees.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Jun. 30, 2019
Accounting Policies [Abstract]
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 condensed consolidated financial statements refers to the fiscal year ended March 31 of the calendar year indicated (for example, fiscal 2020 refers to the fiscal year ending March 31, 2020).
Basis of Presentation	The accompanying interim condensed consolidated financial statements are unaudited and have been prepared on substantially the same basis as our annual consolidated financial statements for the fiscal year ended March 31, 2019 with the exception of new lease accounting 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 U.S. generally accepted accounting principles ("GAAP") have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"), regarding interim financial reporting. In the opinion of the Company's management, these interim condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of our financial position, results of operations, and cash flows for the periods presented. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates. The March 31, 2019 year-end condensed consolidated balance sheet data in this document were derived from audited consolidated financial statements and does not include all of the disclosures required by GAAP. These condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements as of and for the fiscal year ended March 31, 2019 and notes thereto included in the Company's fiscal 2019 Annual Report on Form 10-K. The results of operations and cash flows for the interim periods included in these condensed consolidated financial statements are not necessarily indicative of the results to be expected for any future period or the entire fiscal year.
Principles of Consolidation	The condensed consolidated financial statements include the accounts of 8x8 and its subsidiaries. All material intercompany accounts and transactions have been eliminated.
Use of Estimates	The preparation of the condensed 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 condensed 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.
Reclassifications and Other Changes	RECLASSIFICATIONS AND OTHER CHANGES Certain prior year amounts in the statement of cash flows have been reclassified to conform with current year presentation.
Accounting Policies and Pronouncements	RECENT ACCOUNTING PRONOUNCEMENTS In August 2018, the Financial Accounting Standards Board ("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 condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal Use Software (Subtopic 350-40), which reduces complexity 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 condensed consolidated financial statements.
Revenue Recognition	Revenue Recognition 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 receive 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 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 as the services are rendered. 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 condensed consolidated balance sheets, depending on if their reduction will be recognized during the succeeding twelve-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 twelve-month period are recorded as current deferred revenues in the condensed consolidated balance sheets, with the remainder recorded as other non-current liabilities in the condensed consolidated balance sheets. Costs to Obtain a Customer Contract Sales commissions and related expenses are considered incremental and recoverable costs of acquiring customer contracts. These costs are capitalized as 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 condensed consolidated statement of operations.

REVENUE RECOGNITION (Tables)

3 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

Contract Balances

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



	June 30, 2019
Accounts receivable, net	$	23,361
Contract assets	$	9,375
Deferred revenue - current	$	4,088
Deferred revenue - non-current	$	67

Changes in the contract assets and the deferred revenue balances during the three months ended June 30, 2019 are as follows (in thousands):



	June 30, 2019		March 31, 2019		$ Change
Contract assets	$	9,375	$	5,717	$	3,658
Deferred revenue	$	4,155	$	3,342	$	813

FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

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



	Amortized		Gross Unrealized		Gross Unrealized			Estimated		Cash and Cash		Short-Term		Long-Term
As of June 30, 2019	Costs		Gain		Loss			Fair Value		Equivalents		Investments		Investments
Cash	$	23,533	$	—	$	—		$	23,533	$	23,533	$	—	$	—
Level 1:
Money market funds	240,905		—		—			240,905		240,905		—		—
Treasury securities	2,910		2		—			2,912		—		—		2,912
Subtotal	267,348		2		—			267,350		264,438		—		2,912
Level 2:
Corporate bonds	40,128		122		(3		)	40,247		—		23,613		16,634
Commercial paper	6,176		—		(2		)	6,174		4,587		1,587		—
Municipal securities	2,098		23		—			2,121		—		—		2,121
Agency bond	2,289		—		(3		)	2,286		—		2,286		—
Subtotal	50,691		145		(8		)	50,828		4,587		27,486		18,755
Total assets	$	318,039	$	147	$	(8	)	$	318,178	$	269,025	$	27,486	$	21,667



	Amortized		Gross Unrealized		Gross Unrealized			Estimated		Cash and Cash		Short-Term
As of March 31, 2019	Costs		Gain		Loss			Fair Value		Equivalents		Investments
Cash	$	25,364	$	—	$	—		$	25,364	$	25,364	$	—
Level 1:
Money market funds	251,219		—		—			251,219		251,219		—
Subtotal	276,583		—		—			276,583		276,583		—
Level 2:
Corporate debt	46,516		51		(29		)	46,538		—		46,538
Municipal securities	5,511		17		—			5,528		—		5,528
Asset backed securities	13,596		9		(17		)	13,588		—		13,588
Agency bond	4,260		—		(15		)	4,245		—		4,245
Subtotal	69,883		77		(61		)	69,899		—		69,899
Total assets	$	346,466	$	77	$	(61	)	$	346,482	$	276,583	$	69,899

Contractual Maturity of Investments

Contractual maturities of investments as of June 30, 2019 are set forth below (in thousands):



	Estimated
	Fair Value
Due within one year	$	27,486
Due after one year	21,667
Total	$	49,153

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

INTANGIBLE ASSETS AND GOODWILL (Tables)

3 Months Ended

Jun. 30, 2019

Intangible Assets, Net (Including Goodwill) [Abstract]

Carrying Value of Intangible Assets

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



	June 30, 2019							March 31, 2019
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Technology	$	19,894	$	(10,911	)	$	8,983	$	25,702	$	(15,409	)	$	10,293
Customer relationships	6,125		(4,983		)	1,142		9,467		(8,080		)	1,387
Total acquired identifiable intangible assets	$	26,019	$	(15,894	)	$	10,125	$	37,277	$	(25,597	)	$	11,680

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

At June 30, 2019, 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 2020	$	4,573
2021	3,557
2022	1,766
2023	229
Total	$	10,125

Schedule of Goodwill

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



	Total
Balance at March 31, 2019	$	39,694
Foreign currency translation	(291		)
Balance at June 30, 2019	$	39,403

RIGHT-OF-USE ASSETS AND LEASES (Tables)

3 Months Ended

Jun. 30, 2019

Leases [Abstract]

Assets and Liabilities, Lessee

The following table provides the components of the Company's lease right-of-use assets and liabilities as of June 30, 2019 (in thousands):



	June 30, 2019
Assets
Operating lease, right-of-use assets	$	18,058

Liabilities
Operating lease liabilities, current	$	7,063
Operating lease liabilities, non-current	12,044
Total operating lease liabilities	$	19,107

Lease, Cost

The following table presents supplemental information for the three months ended June 30, 2019 (in thousands, except for weighted average):



Weighted average remaining lease term	3.9 years
Weighted average discount rate	4.0%
Cash paid for amounts included in the measurement of lease liabilities	$	2,252
Operating cash flow from operating leases	$	2,252

Lessee, Operating Lease, Liability, Maturity

The following table presents maturity of lease liabilities under the Company's non-cancelable operating leases as of June 30, 2019 (in thousands):



Remaining 2020	$	6,008
2021	5,666
2022	4,275
2023	1,381
2024	1,111
Thereafter	2,221
Total lease payments	$	20,662
Less: imputed interest	(1,555		)
Present value of lease liabilities	$	19,107

CONVERTIBLE SENIOR NOTES AND CAPPED CALL (Tables)

3 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Convertible Debt

The net carrying amount of the liability component of the Notes was as follows (in thousands):



	June 30, 2019			March 31, 2019
Principal	$	287,500		$	287,500
Unamortized debt discount	(67,730		)	(70,876		)
Unamortized issuance costs	(562		)	(589		)
Net carrying amount	$	219,208		$	216,035

Interest Income and Interest Expense Disclosure

Interest expense related to the Notes was as follows (in thousands):



	Three Months Ended June 30, 2019
Contractual interest expense	$	359
Amortization of debt discount	3,146
Amortization of issuance costs	26
Total interest expense	$	3,531

STOCK-BASED COMPENSATION (Tables)

3 Months Ended

Jun. 30, 2019

Share-based Payment Arrangement [Abstract]

Schedule of Stock Option Expense and Activity



	Three Months Ended June 30,
	2019		2018
Cost of service revenue	$	1,731	$	1,026
Research and development	3,864		2,194
Sales and marketing	3,921		2,398
General and administrative	4,081		3,293
Total	$	13,597	$	8,911



	Three Months Ended June 30,
	2019			2018
Stock options outstanding at the beginning of the period:	3,114			3,998
Options granted	—			81
Options exercised	(124		)	(115		)
Options canceled and forfeited	(16		)	(73		)
Options outstanding at the end of the period:	2,974			3,891
Weighted-average fair value of grants during the period	$	—		$	8.57
Total intrinsic value of options exercised during the period	$	1,402		$	1,186
Weighted-average remaining recognition period at period-end (in years)	2.46			2.35

Stock awards outstanding at the beginning of the period:	7,820			5,939
Stock awards granted	1,147			948
Stock awards vested	(329		)	(299		)
Stock awards canceled and forfeited	(445		)	(168		)
Stock awards outstanding at the end of the period:	8,193			6,420
Weighted-average fair value of grants during the period	$	22.40		$	22.20
Weighted-average remaining recognition period at period-end (in years)	2.11			2.40
Total unrecognized compensation expense at period-end	$	109,422		$	67,025

NET LOSS PER SHARE (Tables)

3 Months Ended

Jun. 30, 2019

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

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 June 30,
	2019			2018
Numerator:
Net loss available to common stockholders	$	(34,265	)	$	(15,355	)
Denominator:
Common shares - basic and diluted	96,429			93,064
Net loss per share
Basic and diluted	$	(0.36	)	$	(0.16	)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share



	Three Months Ended June 30,
	2019	2018
Stock options	2,974	3,891
Stock awards	8,188	6,420
Potential shares to be issued from ESPP	636	620
Total anti-dilutive shares	11,798	10,931

GEOGRAPHICAL INFORMATION (Tables)

3 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

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



	Three Months Ended June 30,
	2019		2018
Revenue by geographic area:
Americas (principally US)	$	86,736	$	74,865
Europe (principally UK)	9,939		8,360
	$	96,675	$	83,225



	June 30, 2019		March 31, 2019
Property and equipment by geographic area:
Americas (principally US)	$	50,866	$	45,639
Europe (principally UK)	6,851		7,196
	$	57,717	$	52,835

DESCRIPTION OF BUSINESS (Details)	3 Months Ended
DESCRIPTION OF BUSINESS (Details)	Jun. 30, 2019 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Apr. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease, right-of-use assets	$ 18,058
Present value of lease liabilities	$ 19,107
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease, right-of-use assets		$ 20,000
Present value of lease liabilities		$ 21,400

REVENUE RECOGNITION - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2019	Apr. 01, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract with customer, revenue recognized	$ 2.7
Revenue, remaining performance obligation, amount	$ 190.0
Revenue, remaining performance obligation, expected timing of satisfaction, period	36 months
Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Deferred commission costs, amortization period		5 years
Minimum
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
subscription term	1 year
Maximum
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
subscription term	4 years

REVENUE RECOGNITION - Contract Balances (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
Accounts receivable, net	$ 23,361	$ 20,181
Contract assets	9,375	5,717
Deferred revenue - current	4,088	$ 3,336
Deferred revenue - non-current	$ 67

REVENUE RECOGNITION - Changes in Contract Balances (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2019	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
Contract assets	$ 9,375	$ 5,717
Deferred revenue	4,155	$ 3,342
Change in other current assets	3,658
Change in deferred revenue	$ 813

FAIR VALUE MEASUREMENTS - Fair Value Measurements (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Mar. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 269,025	$ 276,583
Accumulated gross unrealized gain, before tax	147	77
Accumulated gross unrealized loss, before tax	(8)	(61)
Debt securities, available-for-sale	49,153
Cash, cash equivalents and debt securities available-for-sale, amortized cost	318,039	346,466
Cash, cash equivalents and debt securities available-for-sale	318,178	346,482
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents		276,583
Cash and cash equivalents, fair value		276,583
Accumulated gross unrealized gain, before tax	2
Accumulated gross unrealized loss, before tax	0
Cash, cash equivalents and debt securities available-for-sale, amortized cost	267,348
Cash, cash equivalents and debt securities available-for-sale	267,350
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized cost	50,691	69,883
Accumulated gross unrealized gain, before tax	145	77
Accumulated gross unrealized loss, before tax	(8)	(61)
Debt securities, available-for-sale	50,828	69,899
Treasury securities \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized cost	2,910
Accumulated gross unrealized gain, before tax	2
Accumulated gross unrealized loss, before tax	0
Debt securities, available-for-sale	2,912
Corporate bonds \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized cost	40,128	46,516
Accumulated gross unrealized gain, before tax	122	51
Accumulated gross unrealized loss, before tax	(3)	(29)
Debt securities, available-for-sale	40,247	46,538
Commercial paper \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized cost	6,176
Accumulated gross unrealized gain, before tax	0
Accumulated gross unrealized loss, before tax	(2)
Debt securities, available-for-sale	6,174
Commercial paper \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized cost	2,098	5,511
Accumulated gross unrealized gain, before tax	23	17
Accumulated gross unrealized loss, before tax	0	0
Debt securities, available-for-sale	2,121	5,528
Asset backed securities \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized cost		13,596
Accumulated gross unrealized gain, before tax		9
Accumulated gross unrealized loss, before tax		(17)
Debt securities, available-for-sale		13,588
Agency bond \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized cost	2,289	4,260
Accumulated gross unrealized gain, before tax	0	0
Accumulated gross unrealized loss, before tax	(3)	(15)
Debt securities, available-for-sale	2,286	4,245
Cash
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	23,533	25,364
Cash and cash equivalents, fair value	23,533	25,364
Money market funds \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	240,905	251,219
Cash and cash equivalents, fair value	240,905	251,219
Cash and Cash Equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents		276,583
Cash, cash equivalents and debt securities available-for-sale	269,025
Cash and Cash Equivalents \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents		276,583
Cash, cash equivalents and debt securities available-for-sale	264,438
Cash and Cash Equivalents \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	4,587
Cash and Cash Equivalents \| Commercial paper \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	4,587
Cash and Cash Equivalents \| Cash
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents		25,364
Cash and cash equivalents, fair value	23,533
Cash and Cash Equivalents \| Money market funds \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents		251,219
Cash and cash equivalents, fair value	240,905
Short-term Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale		69,899
Cash, cash equivalents and debt securities available-for-sale	27,486
Short-term Investments \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	27,486	69,899
Short-term Investments \| Corporate bonds \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	23,613	46,538
Short-term Investments \| Commercial paper \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	1,587
Short-term Investments \| Commercial paper \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	0	5,528
Short-term Investments \| Asset backed securities \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale		13,588
Short-term Investments \| Agency bond \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	2,286	$ 4,245
Long-term Debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash, cash equivalents and debt securities available-for-sale	21,667
Long-term Debt \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	2,912
Long-term Debt \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	18,755
Long-term Debt \| Treasury securities \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	2,912
Long-term Debt \| Corporate bonds \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	16,634
Long-term Debt \| Commercial paper \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	0
Long-term Debt \| Commercial paper \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	2,121
Long-term Debt \| Agency bond \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	$ 0

FAIR VALUE MEASUREMENTS - Contractual Maturity of Investments (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Fair Value Disclosures [Abstract]
Due within one year	$ 27,486
Due after one year	21,667
Total	$ 49,153

FAIR VALUE MEASUREMENTS - Narrative (Details) $ in Millions	Jun. 30, 2019 USD ($)
Convertible Debt \| Convertible Senior Notes \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt instrument, fair value	$ 219.2

INTANGIBLE ASSETS AND GOODWILL - Carrying Value of Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Mar. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 26,019	$ 37,277
Accumulated Amortization	(15,894)	(25,597)
Net Carrying Amount	10,125	11,680
Technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	19,894	25,702
Accumulated Amortization	(10,911)	(15,409)
Net Carrying Amount	8,983	10,293
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	6,125	9,467
Accumulated Amortization	(4,983)	(8,080)
Net Carrying Amount	$ 1,142	$ 1,387

INTANGIBLE ASSETS AND GOODWILL - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Mar. 31, 2019
Intangible Assets, Net (Including Goodwill) [Abstract]
Remaining 2020	$ 4,573
2021	3,557
2022	1,766
2023	229
Net Carrying Amount	$ 10,125	$ 11,680

INTANGIBLE ASSETS AND GOODWILL - Summary of Changes in Goodwill (Details) $ in Thousands	3 Months Ended
	Jun. 30, 2019 USD ($)
Goodwill [Roll Forward]
Balance at March 31, 2019	$ 39,694
Foreign currency translation	(291)
Balance at June 30, 2019	$ 39,403

RIGHT-OF-USE ASSETS AND LEASES - Narrative (Details) $ in Millions	3 Months Ended
	Jun. 30, 2019 USD ($)
Lessee, Lease, Description [Line Items]
Operating lease expense	$ 2.1
Minimum
Lessee, Lease, Description [Line Items]
Term of contract	1 year
Renewal term	1 year
Maximum
Lessee, Lease, Description [Line Items]
Term of contract	7 years
Renewal term	5 years

RIGHT-OF-USE ASSETS AND LEASES - Components of Lease Right-of-Use Assets and Liabilities (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Assets
Operating lease, right-of-use assets	$ 18,058
Liabilities
Operating lease liabilities, current	7,063
Operating lease liabilities, non-current	12,044
Total operating lease liabilities	$ 19,107

RIGHT-OF-USE ASSETS AND LEASES - Supplemental Information (Details) $ in Thousands	3 Months Ended
	Jun. 30, 2019 USD ($)
Leases [Abstract]
Weighted average remaining lease term	3 years 10 months 24 days
Weighted average discount rate	4.00%
Operating cash flow from operating leases	$ 2,252

RIGHT-OF-USE ASSETS AND LEASES - Maturity of Lease Liabilities (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Leases [Abstract]
Remaining 2020	$ 6,008
2021	5,666
2022	4,275
2023	1,381
2024	1,111
Thereafter	2,221
Total lease payments	20,662
Less: imputed interest	(1,555)
Present value of lease liabilities	$ 19,107

CONVERTIBLE SENIOR NOTES AND CAPPED CALL - Narrative (Details) $ / shares in Units, shares in Millions	1 Months Ended	12 Months Ended
	Feb. 28, 2019 USD ($) day $ / shares shares	Mar. 31, 2018 USD ($)	Jun. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)
Debt Instrument [Line Items]
Debt instrument, strike price per share (in dollars per share)	$ 25.68
Payments for capped call transactions \| $		$ 33,700,000
Convertible Debt \| Convertible Senior Notes
Debt Instrument [Line Items]
Debt instrument, face value \| $	$ 287,500,000		$ 287,500,000	$ 287,500,000
Debt instrument, interest rate	0.50%
Proceeds from issuance of debt \| $	$ 245,800,000
Debt instrument, convertible, conversion ratio	0.0389484
Common stock, par value per share (in dollars per share)	$ 0.001
Debt instrument, convertible, conversion price (in dollars per share)	$ 25.68
Debt instrument, redemption price, percentage	100.00%
Debt instrument, convertible, threshold percentage of stock price trigger	130.00%
Debt instrument, convertible, threshold trading days \| day	20
Debt instrument, convertible, threshold consecutive trading days \| day	30
Debt instrument, initial cap price per share (in dollars per share)	$ 39.50
Convertible Debt \| Convertible Senior Notes \| Call Option
Debt Instrument [Line Items]
Option indexed to issuer's equity, indexed shares (in shares) \| shares	11.2

CONVERTIBLE SENIOR NOTES AND CAPPED CALL - Carrying Amount of the Liability Component (Details) - Convertible Debt - Convertible Senior Notes - USD ($)	Jun. 30, 2019	Mar. 31, 2019	Feb. 28, 2019
Debt Instrument [Line Items]
Principal	$ 287,500,000	$ 287,500,000	$ 287,500,000
Unamortized debt discount	(67,730,000)	(70,876,000)
Unamortized issuance costs	(562,000)	(589,000)
Net carrying amount	$ 219,208,000	$ 216,035,000

CONVERTIBLE SENIOR NOTES AND CAPPED CALL - Interest Expense (Details) - Convertible Debt - Convertible Senior Notes $ in Thousands	3 Months Ended
	Jun. 30, 2019 USD ($)
Debt Instrument [Line Items]
Contractual interest expense	$ 359
Amortization of debt discount	3,146
Amortization of issuance costs	26
Total interest expense	$ 3,531

STOCK-BASED COMPENSATION - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 13,597	$ 8,911
Cost of service revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	1,731	1,026
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	3,864	2,194
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	3,921	2,398
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 4,081	$ 3,293

STOCK-BASED COMPENSATION - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Stock Option Rollforward
Stock options outstanding at the beginning of the period (in shares)	3,114	3,998
Options granted (in shares)	0	81
Options exercised (in shares)	(124)	(115)
Options canceled and forfeited (in shares)	(16)	(73)
Options outstanding at the end of the period (in shares)	2,974	3,891
Weighted-average fair value of grants during the period (in dollars per share)	$ 0	$ 8.57
Total intrinsic value of options exercised during the period	$ 1,402	$ 1,186
Weighted-average remaining recognition period at period-end (in years)	2 years 5 months 15 days	2 years 4 months 6 days
Stock Award Rollforward
Stock awards outstanding at the beginning of the period (in shares)	7,820	5,939
Stock awards granted (in shares)	1,147	948
Stock awards vested (in shares)	(329)	(299)
Stock awards canceled and forfeited (in shares)	(445)	(168)
Stock awards outstanding at the end of the period: (in shares)	8,193	6,420
Weighted-average fair value of grants during the period (in dollars per share)	$ 22.40	$ 22.20
Weighted-average remaining recognition period at period-end (in years)	2 years 1 month 9 days	2 years 4 months 24 days
Total unrecognized compensation expense at period-end	$ 109,422	$ 67,025

STOCK-BASED COMPENSATION - Narrative (Details) - 2017 Repurchase Plan - USD ($)	3 Months Ended
	Jun. 30, 2019	May 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized repurchase amount		$ 25,000,000.0
Remaining authorized repurchase amount	$ 7,100,000
Stock repurchased during period (in shares)	0

INCOME TAXES (Details)	3 Months Ended
INCOME TAXES (Details)	Jun. 30, 2019	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Effective income tax rate	(0.40%)	(0.60%)

NET LOSS PER SHARE - Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Numerator:
Net loss available to common stockholders	$ (34,265)	$ (15,355)
Denominator:
Common shares - basic and diluted (in shares)	96,429	93,064
Net loss per share
Basic and diluted (in dollars per share)	$ (0.36)	$ (0.16)

- Definition

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

+ References + Details

NET LOSS PER SHARE - Antidilutive Securities (Details) - shares shares in Thousands	3 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of anti-dilutive shares	11,798	10,931
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of anti-dilutive shares	2,974	3,891
Stock awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of anti-dilutive shares	8,188	6,420
Potential shares to be issued from ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of anti-dilutive shares	636	620

GEOGRAPHICAL INFORMATION - Revenues (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Segment Reporting Information [Line Items]
Total revenue	$ 96,675	$ 83,225
Americas (principally US)
Segment Reporting Information [Line Items]
Total revenue	86,736	74,865
Europe (principally UK)
Segment Reporting Information [Line Items]
Total revenue	$ 9,939	$ 8,360

GEOGRAPHICAL INFORMATION - PPE (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Mar. 31, 2019
Segment Reporting Information [Line Items]
Property and equipment, net	$ 57,717	$ 52,835
Americas (principally US)
Segment Reporting Information [Line Items]
Property and equipment, net	50,866	45,639
Europe (principally UK)
Segment Reporting Information [Line Items]
Property and equipment, net	$ 6,851	$ 7,196

SUBSEQUENT EVENTS SUBSEQUENT EVENTS (Details) - Subsequent Event	Jul. 17, 2019 USD ($) shares	Jul. 03, 2019 USD ($) ft² term story
Subsequent Event [Line Items]
Term of contract		132 months
Number of renewal terms \| term		2
Renewal term		5 years
Base rent		$ 657,900
Annual percentage increase in base rent		3.00%
Tenant improvements		$ 15,400,000
Security deposit		$ 2,000,000
Wayecell Pte. Ltd.
Subsequent Event [Line Items]
Business combination, consideration transferred	$ 125,000,000
Payments to acquire business	69,000,000.0
Business combination, value of stock issued	$ 56,000,000
Business acquisition, number of shares issued (in shares) \| shares	2,628,761
Property Held Under Operating Lease
Subsequent Event [Line Items]
Area of real estate property \| ft²		177,815
Number of building stories \| story		5

Label	Element	Value
Accounting Standards Update 2016-09 [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 39,901,000
Accounting Standards Update 2016-09 [Member] \| Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 39,901,000