0001023731-19-000146 | 10-Q | XBRL Viewer

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Cover Page - shares	6 Months Ended
Cover Page - shares	Sep. 30, 2019	Oct. 21, 2019
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 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		100,225,912
Entity Central Index Key	0001023731
Amendment Flag	false
Current Fiscal Year End Date	--03-31
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2020

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2019	Mar. 31, 2019
Current assets:
Cash and cash equivalents	$ 162,219	$ 276,583
Restricted cash, current	3,459	0
Short-term investments	29,324	69,899
Accounts receivable, net	30,743	20,181
Deferred sales commission costs	18,572	15,601
Other current assets	22,803	15,127
Total current assets	267,120	397,391
Property and equipment, net	64,776	52,835
Operating lease, right-of-use assets	78,147
Intangible assets, net	28,410	11,680
Goodwill	131,879	39,694
Long-term investments	20,448	0
Restricted cash, non-current	15,558	8,100
Deferred sales commission costs, non-current	42,139	33,693
Other assets	18,133	2,965
Total assets	666,610	546,358
Current liabilities:
Accounts payable	42,134	32,280
Accrued compensation	25,847	18,437
Accrued taxes	12,175	13,862
Operating lease liabilities, current	5,292
Deferred revenue	4,270	3,336
Other accrued liabilities	19,329	6,790
Total current liabilities	109,047	74,705
Operating lease liabilities, non-current	75,221
Convertible senior notes, net	222,432	216,035
Other liabilities, non-current	21,033	6,228
Total liabilities	427,733	296,968
Commitments and contingencies (Note 8)
Stockholders' equity:
Common stock	100	96
Additional paid-in capital	575,416	506,949
Accumulated other comprehensive loss	(11,140)	(7,353)
Accumulated deficit	(325,499)	(250,302)
Total stockholders' equity	238,877	249,390
Total liabilities and stockholders' equity	$ 666,610	$ 546,358

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Total revenue	$ 109,517	$ 85,682	$ 206,192	$ 168,907
Cost of revenue and operating expenses:
Research and development	19,434	14,064	37,765	27,114
Sales and marketing	57,895	41,680	111,494	82,175
General and administrative	20,435	20,326	40,042	35,159
Total operating expenses	147,461	107,669	276,689	206,877
Loss from operations	(37,944)	(21,987)	(70,497)	(37,970)
Other (expense) income, net	(2,732)	635	(4,296)	1,354
Loss before provision for income taxes	(40,676)	(21,352)	(74,793)	(36,616)
Provision for income taxes	256	130	404	221
Net loss	$ (40,932)	$ (21,482)	$ (75,197)	$ (36,837)
Net loss per share:
Basic and diluted (in dollars per share)	$ (0.42)	$ (0.23)	$ (0.77)	$ (0.39)
Weighted-average common shares outstanding:
Basic and diluted (in shares)	98,353	93,831	97,356	93,449
Service
Total revenue	$ 104,529	$ 81,346	$ 196,901	$ 159,467
Cost of revenue and operating expenses:
Cost of goods and services sold	43,195	26,202	75,162	50,751
Product
Total revenue	4,988	4,336	9,291	9,440
Cost of revenue and operating expenses:
Cost of goods and services sold	$ 6,502	$ 5,397	$ 12,226	$ 11,678

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Statement of Comprehensive Income [Abstract]
Net loss	$ (40,932)	$ (21,482)	$ (75,197)	$ (36,837)
Other comprehensive loss, net of tax
Unrealized gain (loss) on investments in securities	(3)	149	118	262
Foreign currency translation adjustment	(3,253)	(379)	(3,905)	(2,051)
Comprehensive loss	$ (44,188)	$ (21,712)	$ (78,984)	$ (38,626)

- 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		777
Stock-based compensation expense	9,304		9,304
Unrealized investment gain	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, 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]
Foreign currency translation adjustment	(2,051)
Net loss	(36,837)
Ending balance (shares) at Sep. 30, 2018		95,091,118
Ending balance at Sep. 30, 2018	239,364	$ 94	445,104	(7,434)	(198,400)
Beginning balance (shares) at Jun. 30, 2018		93,250,731
Beginning balance at Jun. 30, 2018	251,842	$ 93	435,871	(7,204)	(176,918)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under stock plans, less withholding (shares)		1,840,387
Issuance of common stock under stock plans, less withholding	(595)	$ 1	(596)
Stock-based compensation expense	9,829		9,829
Unrealized investment gain	149			149
Foreign currency translation adjustment	(379)			(379)
Net loss	(21,482)				(21,482)
Ending balance (shares) at Sep. 30, 2018		95,091,118
Ending balance at Sep. 30, 2018	239,364	$ 94	445,104	(7,434)	(198,400)
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	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)
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]
Foreign currency translation adjustment	(3,905)
Net loss	(75,197)
Ending balance (shares) at Sep. 30, 2019		99,808,688
Ending balance at Sep. 30, 2019	238,877	$ 100	575,416	(11,140)	(325,499)
Beginning balance (shares) at Jun. 30, 2019		96,571,196
Beginning balance at Jun. 30, 2019	230,147	$ 97	522,501	(7,884)	(284,567)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under stock plans, less withholding (shares)		1,761,483
Issuance of common stock under stock plans, less withholding	(788)	$ 2	(790)
Stock-based compensation expense	17,867		17,867
Issuance of common stock related to acquisitions (shares)		1,476,009
Issuance of common stock related to acquisitions	35,839	$ 1	35,838
Unrealized investment gain	(3)			(3)
Foreign currency translation adjustment	(3,253)			(3,253)
Net loss	(40,932)				(40,932)
Ending balance (shares) at Sep. 30, 2019		99,808,688
Ending balance at Sep. 30, 2019	$ 238,877	$ 100	$ 575,416	$ (11,140)	$ (325,499)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net loss	$ (75,197)	$ (36,837)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	4,599	4,231
Amortization of intangible assets	3,827	2,857
Amortization of capitalized software	8,242	3,749
Amortization of debt discount and issuance costs	6,397	0
Amortization of deferred sales commission costs	8,718	6,664
Operating lease expense, net of accretion	6,234
Non-cash lease expenses		2,401
Stock-based compensation	30,988	19,040
Other	1,634	538
Changes in assets and liabilities:
Accounts receivable, net	(2,563)	(3,347)
Deferred sales commission costs	(20,498)	(11,339)
Other current and non-current assets	(17,418)	(1,452)
Accounts payable and accruals	(400)	8,131
Deferred revenue	922	814
Net cash used in operating activities	(44,515)	(4,550)
Cash flows from investing activities:
Purchases of property and equipment	(7,138)	(2,878)
Purchase of businesses	(58,741)	(2,625)
Capitalized software development costs	(14,339)	(11,386)
Proceeds from maturities of investments	8,545	35,455
Proceeds from sales of investments	30,639	23,604
Purchases of investments	(18,890)	(42,437)
Net cash used in investing activities	(59,924)	(267)
Cash flows from financing activities:
Finance lease payments	(227)
Finance lease payments		(525)
Tax-related withholding of common stock	(5,426)	(8,183)
Proceeds from issuance of common stock under employee stock plans	6,134	6,720
Net cash provided by (used in) financing activities	481	(1,988)
Effect of exchange rate changes on cash	511	(221)
Net decrease in cash and cash equivalents, and restricted cash	(103,447)	(7,026)
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	181,236	32,777
Supplemental cash flow information
Income taxes paid	361	250
Interest paid	647	$ 0
Right of use assets obtained in exchange for new operating lease liabilities	$ 62,832

DESCRIPTION OF BUSINESS	6 Months Ended
DESCRIPTION OF BUSINESS	Sep. 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, contact center, video meetings, messaging, and communication APIs, 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, communication APIs, 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	6 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Sep. 30, 2019
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	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 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. 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, 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 and six months ended September 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 of 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 Company does not have significant finance lease right-of-use assets or liabilities. 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 7. 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. In June 2016, the FASB issued ASU 2016‑13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments, which changes the impairment model for most financial assets. The new model uses a forward‑looking expected loss method, which will generally result in earlier recognition of allowances for losses. In November 2018, the FASB issued ASU 2018‑19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, which clarifies that receivables arising from operating leases are not within the scope of Topic 326, Financial Instruments—Credit Losses. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, which clarifies treatment of certain credit losses. In May 2019, the FASB issued ASU 2019-05, Financial Instruments — Credit Losses (Topic 326): Targeted Transition Relief, which permits an entity, upon adoption of ASU 2016-13, to irrevocably elect the fair value option (on an instrument-by-instrument basis) for eligible financial assets measured at amortized cost basis. These ASUs are effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted. The Company is currently assessing the impact of this pronouncement to its condensed consolidated financial statements.

REVENUE RECOGNITION

6 Months Ended

Sep. 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, collaboration and communication APIs 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 for our UCaaS and CCaaS offerings, either bundled or not bundled, are recognized as

revenue when earned. Usage fees for our CPaaS offerings are typically invoiced monthly in arrears and recognized as revenues when earned. 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 13 for more information.

Contract Balances

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



	September 30, 2019
Accounts receivable, net	$	30,743
Contract assets	$	13,490
Deferred revenue - current	$	4,270
Deferred revenue - non-current	$	43

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



	September 30, 2019		March 31, 2019		$ Change
Contract assets	$	13,490	$	5,717	$	7,773
Deferred revenue	$	4,313	$	3,342	$	971

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 $2.8 million were recognized during the six months ended September 30, 2019, a portion of which were included in the deferred revenues balance at the beginning of the period, which was offset by additional deferrals during the period.

Remaining Performance Obligations

The Company's subscription terms typically range from one to four years. Contract revenue as of September 30, 2019 that has not yet been recognized was approximately $220.0 million. This excludes contracts with an original expected length of one year or less. The Company expects to recognize revenue on most of the remaining performance obligation over the next 36 months.

FAIR VALUE MEASUREMENTS

6 Months Ended

Sep. 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 September 30, 2019	Costs		Gain		Loss			Fair Value		Equivalents		Investments		Investments
Cash	$	25,673	$	—	$	—		$	25,673	$	25,673	$	—	$	—
Level 1:
Money market funds	132,551		—		—			132,551		132,551		—		—
Treasury securities	6,578		7		(5		)	6,580		—		—		6,580
Subtotal	164,802		7		(5		)	164,804		158,224		—		6,580
Level 2:
Corporate bonds	37,858		123		(3		)	37,978		—		24,110		13,868
Commercial paper	5,592		—		—			5,592		3,995		1,597		—
Municipal securities	2,099		19		—			2,118		—		2,118		—
Agency bonds	1,499		—		—			1,499		—		1,499		—
Subtotal	47,048		142		(3		)	47,187		3,995		29,324		13,868
Total assets	$	211,850	$	149	$	(8	)	$	211,991	$	162,219	$	29,324	$	20,448



	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 bonds	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

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 notes, 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 records these investments in long-term investments in accordance with the contractual maturity dates.

As of September 30, 2019, the estimated fair value of the Company's outstanding convertible senior notes (the Notes) was $302.7 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

BUSINESS COMBINATION

6 Months Ended

Sep. 30, 2019

Business Combinations [Abstract]

BUSINESS COMBINATION

BUSINESS COMBINATIONS

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”). This acquisition extends 8x8’s technology advantage as a fully-owned, cloud technology platform with unified communications ("UCaaS"), contact center ("CCaaS"), video ("VCaaS") and platform communication APIs ("CPaaS") solutions able to natively offer pre-packaged communications, contact center and video solutions and open APIs to embed these and other communications into an organization’s core business processes.

The total fair value of the purchase consideration of approximately $117.1 million was comprised of approximately $72.8 million in cash and $44.3 million in shares of common stock of the Company, of which approximately $10.4 million in cash and $8.5 million in equity have been heldback to cover potential indemnity claims made by the Company after the closing date. One-third of these heldback amounts are eligible to be released in twelve months from the date of acquisition and the remainder in eighteen months from the date of the acquisition. The heldback cash of $3.5 million and $6.9 million are recorded in restricted cash, current and restricted cash, non-current, respectively and other accrued liabilities and other liabilities, non-current, respectively, in the Company's condensed consolidated balance sheet. The holdback of $8.5 million in equity is included in other liabilities, non-current in the Company's condensed consolidated balance sheet. Additionally, in connection with the acquisition, the Company issued $13.2 million in time-based restricted stock awards and $6.6 million in performance based restricted stock awards all of which vest over the next three years, and which the Company will expense over the same such period.

The major classes of assets and liabilities to which the Company has preliminarily allocated the fair value of purchase consideration were as follows (in thousands):



	July 17, 2019
Cash	$	4,473
Accounts receivable	9,438
Intangible assets	21,010
Other assets	787
Goodwill	94,584
Accounts payable	(13,072		)
Deferred revenue	(90		)
Total consideration	$	117,130

The Company will continue to collect information and reevaluate the estimates and assumptions and will record any adjustments to the Company’s preliminary estimates provided that the Company is within the measurement period. The goodwill recognized was primarily attributed to increased synergies that are expected to be achieved from the integration of Wavecell and is not expected to be deductible for income tax purposes. The Company determined the fair values of intangible assets acquired and liabilities assumed with the assistance of third-party valuation consultants. Based on this valuation, the intangible assets acquired are preliminarily (in thousands):



	Fair Value		Useful life (in Years)
Trade and domain names	$	990	3
Developed technology	13,830		7
Customer relationships	6,190		7
Total intangible assets	$	21,010

The Company incurred costs related to this acquisition of approximately $1.6 million during the six months ended September 30, 2019. All acquisition related costs were expensed as incurred and have been recorded in general and administrative expenses in the accompanying consolidated statements of operations.

The revenue and earnings of the acquired business have been included in the Company’s results since the acquisition date and are not material to the Company’s condensed consolidated financial results. Pro forma results of operations for this acquisition have not been presented, as the financial impact to the Company’s condensed consolidated financial statements is not material.

INTANGIBLE ASSETS AND GOODWILL

6 Months Ended

Sep. 30, 2019

Intangible Assets, Net (Including Goodwill) [Abstract]

INTANGIBLE ASSETS AND GOODWILL

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



	September 30, 2019							March 31, 2019
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Developed technology	$	33,466	$	(12,706	)	$	20,760	$	25,702	$	(15,409	)	$	10,293
Customer relationships	11,293		(4,534		)	6,759		9,467		(8,080		)	1,387
Trade and domain names	972		(81		)	891		2,108		(2,108		)	—
Total acquired identifiable intangible assets	$	45,731	$	(17,321	)	$	28,410	$	37,277	$	(25,597	)	$	11,680

During the six months ended September 30, 2019 the Company wrote off approximately $11.3 million of fully amortized intangible assets and the corresponding accumulated amortization.

At September 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	$	4,603
2021	6,673
2022	4,896
2023	3,116
2024	2,807
Thereafter	6,315
Total	$	28,410

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
Additions due to acquisitions	94,584
Foreign currency translation	(2,399		)
Balance at September 30, 2019	$	131,879

RIGHT-OF-USE ASSETS AND LEASES

6 Months Ended

Sep. 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 2030. 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. Variable lease payments are not included in the lease payments to measure the lease liability and are expensed as incurred. The Company’s leases have remaining terms of one to eleven 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. The following table provides balance sheet information related to leases as of September 30, 2019 (in thousands):



	September 30, 2019
Assets
Operating lease, right-of-use assets	$	78,147

Liabilities
Operating lease liabilities, current	$	5,292
Operating lease liabilities, non-current	75,221
Total operating lease liabilities	$	80,513

During the three and six months ended September 30, 2019, operating lease expense was approximately $4.2 million and $6.2 million, respectively. Variable lease cost and short-term lease cost were immaterial during the three and six months ended September 30, 2019.

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



Weighted average remaining lease term	9.1 years
Weighted average discount rate	4.0%
Cash paid for amounts included in the measurement of lease liabilities	$	4,487
Operating cash flow from operating leases	$	4,487

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



Remaining 2020	$	5,298
2021	8,103
2022	13,768
2023	11,189
2024	11,224
Thereafter	68,839
Total lease payments	$	118,421
Less: imputed interest	(22,486		)
Less: lease incentives receivable	(15,422		)
Present value of lease liabilities	$	80,513

The Company has an operating lease for an office space that has not yet commenced and as such, have not yet been recognized on the Company's condensed consolidated balance sheet as of September 30, 2019. The contractual obligation for this lease is $2.2 million.

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 September 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.

On July 3, 2019, the Company entered into a lease for a new company headquarters to rent 177,815 square feet of office space as the sole tenant in a new five-story office building located in Campbell, California.

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, with the base rent rate adjusted to fair market value at that time. The Company recognized an operating lease right-of-use asset and operating lease liability during second quarter of fiscal 2020, when the Company was given full access to the leased property.

Base rent is approximately $0.7 million 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 paid to the landlord a security deposit in the amount of $2.0 million, which may be drawn down in the event the Company defaults under the lease. This new lease increased our operating lease right-of-use assets by $56.8 million and our operating lease liabilities by $56.1 million.

COMMITMENTS AND CONTINGENCIES	6 Months Ended
COMMITMENTS AND CONTINGENCIES	Sep. 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. The Company accrues a liability when management believes information available prior to the issuance of the financial statements indicates it is probable a loss has been incurred as of the date of the financial statements and the amount of loss can be reasonably estimated. The Company adjusts its accruals to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular case. Legal costs are expensed as incurred. As of September 30, 2019, the Company has not recorded any provisions for any such lawsuits, claims and proceedings and believes it is not probable that a loss had been incurred. Litigation is inherently unpredictable and subject to significant uncertainties. While there can be no assurances that favorable final outcomes will be obtained, the Company believes it has valid defenses with respect to legal matters pending against it. 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

6 Months Ended

Sep. 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 per 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 and six months ended September 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):



	September 30, 2019			March 31, 2019
Principal	$	287,500		$	287,500
Unamortized debt discount	(64,532		)	(70,876		)
Unamortized issuance costs	(536		)	(589		)
Net carrying amount	$	222,432		$	216,035

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



	Three Months Ended September 30, 2019		Six Months Ended September 30, 2019
Contractual interest expense	$	360	$	719
Amortization of debt discount	3,198		$	6,344
Amortization of issuance costs	27		$	53
Total interest expense	$	3,585	$	7,116

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

6 Months Ended

Sep. 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 September 30,				Six Months Ended September 30,
	2019		2018		2019		2018
Cost of service revenue	$	1,939	$	1,379	$	3,670	$	2,405
Research and development	4,217		2,823		8,081		5,017
Sales and marketing	5,340		2,206		9,261		4,604
General and administrative	5,895		3,721		9,976		7,014
Total	$	17,391	$	10,129	$	30,988	$	19,040



	Six Months Ended September 30,
	2019			2018
Stock options outstanding at the beginning of the period:	3,114			3,998
Options granted	—			195
Options exercised	(287		)	(574		)
Options canceled and forfeited	(39		)	(97		)
Options outstanding at the end of the period:	2,788			3,522
Weighted-average fair value of grants during the period	$	—		$	8.47
Total intrinsic value of options exercised during the period	$	3,726		$	8,525
Weighted-average remaining recognition period at period-end (in years)	2.32			2.52

Stock awards outstanding at the beginning of the period:	7,820			5,939
Stock awards granted	5,123			2,112
Stock awards vested	(1,945		)	(1,720		)
Stock awards canceled and forfeited	(663		)	(433		)
Stock awards outstanding at the end of the period:	10,335			5,898
Weighted-average fair value of grants during the period	$	22.35		$	22.01
Weighted-average remaining recognition period at period-end (in years)	2.28			2.44
Total unrecognized compensation expense at period-end	$	129,136		$	79,121

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 September 30, 2019 was approximately $7.1 million. There were no stock repurchases under the 2017 Repurchase Plan during the three and six months ended September 30, 2019.

INCOME TAXES	6 Months Ended
INCOME TAXES	Sep. 30, 2019
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXESThe Company's effective tax rate was -0.6% for the three months ended September 30, 2019 and 2018, and -0.5% and -0.6% for the six months ended September 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

6 Months Ended

Sep. 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 September 30,						Six Months Ended September 30,
	2019			2018			2019			2018
Numerator:
Net loss available to common stockholders	$	(40,932	)	$	(21,482	)	$	(75,197	)	$	(36,837	)
Denominator:
Common shares - basic and diluted	98,353			93,831			97,356			93,449
Net loss per share
Basic and diluted	$	(0.42	)	$	(0.23	)	$	(0.77	)	$	(0.39	)

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 September 30,		Six Months Ended September 30,
	2019	2018	2019	2018
Stock options	2,788	3,496	2,788	3,496
Stock awards	10,334	5,854	10,334	5,854
Contingently issuable shares (hold-back shares)	350	—	350	—
Potential shares to be issued from ESPP	387	360	387	360
Total anti-dilutive shares	13,859	9,710	13,859	9,710

GEOGRAPHICAL INFORMATION

6 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

GEOGRAPHICAL INFORMATION

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



	Three Months Ended September 30,				Six Months Ended September 30,
	2019		2018		2019		2018
Revenue by geographic area:
United States	85,428		74,361		168,676		146,083
International	24,089		11,321		37,516		22,824
	$	109,517	$	85,682	$	206,192	$	168,907



	September 30, 2019		March 31, 2019
Property and equipment by geographic area:
Americas (principally US)	$	58,574	$	45,639
Europe (principally UK)	6,202		7,196
	$	64,776	$	52,835

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Sep. 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 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.

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, 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.

Recently Adopted Accounting Pronouncements, Recent Accounting Pronouncements

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 of 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 Company does not have significant finance lease right-of-use assets or liabilities. 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 7.

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


•	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.

Judgments and Estimates

Service Revenue

Product Revenue

Contract Assets

Deferred Revenue

Costs to Obtain a Customer Contract

REVENUE RECOGNITION (Tables)

6 Months Ended

Sep. 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):



	September 30, 2019
Accounts receivable, net	$	30,743
Contract assets	$	13,490
Deferred revenue - current	$	4,270
Deferred revenue - non-current	$	43

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



	September 30, 2019		March 31, 2019		$ Change
Contract assets	$	13,490	$	5,717	$	7,773
Deferred revenue	$	4,313	$	3,342	$	971

FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Sep. 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 September 30, 2019	Costs		Gain		Loss			Fair Value		Equivalents		Investments		Investments
Cash	$	25,673	$	—	$	—		$	25,673	$	25,673	$	—	$	—
Level 1:
Money market funds	132,551		—		—			132,551		132,551		—		—
Treasury securities	6,578		7		(5		)	6,580		—		—		6,580
Subtotal	164,802		7		(5		)	164,804		158,224		—		6,580
Level 2:
Corporate bonds	37,858		123		(3		)	37,978		—		24,110		13,868
Commercial paper	5,592		—		—			5,592		3,995		1,597		—
Municipal securities	2,099		19		—			2,118		—		2,118		—
Agency bonds	1,499		—		—			1,499		—		1,499		—
Subtotal	47,048		142		(3		)	47,187		3,995		29,324		13,868
Total assets	$	211,850	$	149	$	(8	)	$	211,991	$	162,219	$	29,324	$	20,448



	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 bonds	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

- 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

BUSINESS COMBINATION (Tables)

6 Months Ended

Sep. 30, 2019

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The major classes of assets and liabilities to which the Company has preliminarily allocated the fair value of purchase consideration were as follows (in thousands):



	July 17, 2019
Cash	$	4,473
Accounts receivable	9,438
Intangible assets	21,010
Other assets	787
Goodwill	94,584
Accounts payable	(13,072		)
Deferred revenue	(90		)
Total consideration	$	117,130

Schedule of Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination

The Company determined the fair values of intangible assets acquired and liabilities assumed with the assistance of third-party valuation consultants. Based on this valuation, the intangible assets acquired are preliminarily (in thousands):



	Fair Value		Useful life (in Years)
Trade and domain names	$	990	3
Developed technology	13,830		7
Customer relationships	6,190		7
Total intangible assets	$	21,010

INTANGIBLE ASSETS AND GOODWILL (Tables)

6 Months Ended

Sep. 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):



	September 30, 2019							March 31, 2019
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Developed technology	$	33,466	$	(12,706	)	$	20,760	$	25,702	$	(15,409	)	$	10,293
Customer relationships	11,293		(4,534		)	6,759		9,467		(8,080		)	1,387
Trade and domain names	972		(81		)	891		2,108		(2,108		)	—
Total acquired identifiable intangible assets	$	45,731	$	(17,321	)	$	28,410	$	37,277	$	(25,597	)	$	11,680

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

At September 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	$	4,603
2021	6,673
2022	4,896
2023	3,116
2024	2,807
Thereafter	6,315
Total	$	28,410

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
Additions due to acquisitions	94,584
Foreign currency translation	(2,399		)
Balance at September 30, 2019	$	131,879

RIGHT-OF-USE ASSETS AND LEASES (Tables)

6 Months Ended

Sep. 30, 2019

Leases [Abstract]

Assets and Liabilities, Leases

The following table provides balance sheet information related to leases as of September 30, 2019 (in thousands):



	September 30, 2019
Assets
Operating lease, right-of-use assets	$	78,147

Liabilities
Operating lease liabilities, current	$	5,292
Operating lease liabilities, non-current	75,221
Total operating lease liabilities	$	80,513

Lease, Cost

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



Weighted average remaining lease term	9.1 years
Weighted average discount rate	4.0%
Cash paid for amounts included in the measurement of lease liabilities	$	4,487
Operating cash flow from operating leases	$	4,487

Lessee, Operating Leases, Liability, Maturity

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



Remaining 2020	$	5,298
2021	8,103
2022	13,768
2023	11,189
2024	11,224
Thereafter	68,839
Total lease payments	$	118,421
Less: imputed interest	(22,486		)
Less: lease incentives receivable	(15,422		)
Present value of lease liabilities	$	80,513

CONVERTIBLE SENIOR NOTES AND CAPPED CALL (Tables)

6 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Convertible Debt

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



	September 30, 2019			March 31, 2019
Principal	$	287,500		$	287,500
Unamortized debt discount	(64,532		)	(70,876		)
Unamortized issuance costs	(536		)	(589		)
Net carrying amount	$	222,432		$	216,035

Interest Income and Interest Expense Disclosure

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



	Three Months Ended September 30, 2019		Six Months Ended September 30, 2019
Contractual interest expense	$	360	$	719
Amortization of debt discount	3,198		$	6,344
Amortization of issuance costs	27		$	53
Total interest expense	$	3,585	$	7,116

STOCK-BASED COMPENSATION (Tables)

6 Months Ended

Sep. 30, 2019

Share-based Payment Arrangement [Abstract]

Schedule of Stock Option Expense and Activity



	Three Months Ended September 30,				Six Months Ended September 30,
	2019		2018		2019		2018
Cost of service revenue	$	1,939	$	1,379	$	3,670	$	2,405
Research and development	4,217		2,823		8,081		5,017
Sales and marketing	5,340		2,206		9,261		4,604
General and administrative	5,895		3,721		9,976		7,014
Total	$	17,391	$	10,129	$	30,988	$	19,040



	Six Months Ended September 30,
	2019			2018
Stock options outstanding at the beginning of the period:	3,114			3,998
Options granted	—			195
Options exercised	(287		)	(574		)
Options canceled and forfeited	(39		)	(97		)
Options outstanding at the end of the period:	2,788			3,522
Weighted-average fair value of grants during the period	$	—		$	8.47
Total intrinsic value of options exercised during the period	$	3,726		$	8,525
Weighted-average remaining recognition period at period-end (in years)	2.32			2.52

Stock awards outstanding at the beginning of the period:	7,820			5,939
Stock awards granted	5,123			2,112
Stock awards vested	(1,945		)	(1,720		)
Stock awards canceled and forfeited	(663		)	(433		)
Stock awards outstanding at the end of the period:	10,335			5,898
Weighted-average fair value of grants during the period	$	22.35		$	22.01
Weighted-average remaining recognition period at period-end (in years)	2.28			2.44
Total unrecognized compensation expense at period-end	$	129,136		$	79,121

NET LOSS PER SHARE (Tables)

6 Months Ended

Sep. 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 September 30,						Six Months Ended September 30,
	2019			2018			2019			2018
Numerator:
Net loss available to common stockholders	$	(40,932	)	$	(21,482	)	$	(75,197	)	$	(36,837	)
Denominator:
Common shares - basic and diluted	98,353			93,831			97,356			93,449
Net loss per share
Basic and diluted	$	(0.42	)	$	(0.23	)	$	(0.77	)	$	(0.39	)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share



	Three Months Ended September 30,		Six Months Ended September 30,
	2019	2018	2019	2018
Stock options	2,788	3,496	2,788	3,496
Stock awards	10,334	5,854	10,334	5,854
Contingently issuable shares (hold-back shares)	350	—	350	—
Potential shares to be issued from ESPP	387	360	387	360
Total anti-dilutive shares	13,859	9,710	13,859	9,710

GEOGRAPHICAL INFORMATION (Tables)

6 Months Ended

Sep. 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 September 30,				Six Months Ended September 30,
	2019		2018		2019		2018
Revenue by geographic area:
United States	85,428		74,361		168,676		146,083
International	24,089		11,321		37,516		22,824
	$	109,517	$	85,682	$	206,192	$	168,907



	September 30, 2019		March 31, 2019
Property and equipment by geographic area:
Americas (principally US)	$	58,574	$	45,639
Europe (principally UK)	6,202		7,196
	$	64,776	$	52,835

DESCRIPTION OF BUSINESS (Details)	6 Months Ended
DESCRIPTION OF BUSINESS (Details)	Sep. 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	Sep. 30, 2019	Apr. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease, right-of-use assets	$ 78,147
Present value of lease liabilities	$ 80,513
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) $ in Millions	6 Months Ended
REVENUE RECOGNITION - Narrative (Details) $ in Millions	Sep. 30, 2019 USD ($)
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract with customer, revenue recognized	$ 2.8
Revenue, remaining performance obligation, amount	$ 220.0
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	Sep. 30, 2019	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
Accounts receivable, net	$ 30,743	$ 20,181
Contract assets	13,490	5,717
Deferred revenue - current	4,270	$ 3,336
Deferred revenue - non-current	$ 43

REVENUE RECOGNITION - Changes in Contract Balances (Details) - USD ($) $ in Thousands	6 Months Ended
	Sep. 30, 2019	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
Contract assets	$ 13,490	$ 5,717
Change in other current assets	7,773
Change in deferred revenue	971
Deferred revenue	$ 4,313	$ 3,342

REVENUE RECOGNITION - Remaining Performance Obligation (Details)	Sep. 30, 2019
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	36 months

FAIR VALUE MEASUREMENTS - Fair Value Measurements (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Mar. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 162,219	$ 276,583
Accumulated gross unrealized gain, before tax	149	77
Accumulated gross unrealized loss, before tax	(8)	(61)
Cash, cash equivalents and debt securities available-for-sale, amortized cost	211,850	346,466
Cash, cash equivalents and debt securities available-for-sale	211,991	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	7
Accumulated gross unrealized loss, before tax	(5)
Cash, cash equivalents and debt securities available-for-sale, amortized cost	164,802
Cash, cash equivalents and debt securities available-for-sale	164,804
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized cost	47,048	69,883
Accumulated gross unrealized gain, before tax	142	77
Accumulated gross unrealized loss, before tax	(3)	(61)
Debt securities, available-for-sale	47,187	69,899
Treasury securities \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized cost	6,578
Accumulated gross unrealized gain, before tax	7
Accumulated gross unrealized loss, before tax	(5)
Debt securities, available-for-sale	6,580
Corporate bonds \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized cost	37,858	46,516
Accumulated gross unrealized gain, before tax	123	51
Accumulated gross unrealized loss, before tax	(3)	(29)
Debt securities, available-for-sale	37,978	46,538
Commercial paper \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized cost	5,592
Accumulated gross unrealized gain, before tax	0
Accumulated gross unrealized loss, before tax	0
Debt securities, available-for-sale	5,592
Municipal securities \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized cost	2,099	5,511
Accumulated gross unrealized gain, before tax	19	17
Accumulated gross unrealized loss, before tax	0	0
Debt securities, available-for-sale	2,118	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 bonds \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized cost	1,499	4,260
Accumulated gross unrealized gain, before tax	0	0
Accumulated gross unrealized loss, before tax	0	(15)
Debt securities, available-for-sale	1,499	4,245
Cash
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	25,673	25,364
Cash and cash equivalents, fair value	25,673	25,364
Money market funds \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	132,551	251,219
Cash and cash equivalents, fair value	132,551	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	162,219
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	158,224
Cash and Cash Equivalents \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	3,995
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	3,995
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	25,673
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	132,551
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	29,324
Short-term Investments \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	29,324	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	24,110	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	1,597
Short-term Investments \| Municipal securities \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	2,118	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 bonds \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	1,499	$ 4,245
Long-term Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash, cash equivalents and debt securities available-for-sale	20,448
Long-term Investments \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	6,580
Long-term Investments \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	13,868
Long-term Investments \| Treasury securities \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	6,580
Long-term Investments \| Corporate bonds \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	13,868
Long-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
Long-term Investments \| Municipal securities \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	0
Long-term Investments \| Agency bonds \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	$ 0

FAIR VALUE MEASUREMENTS - Narrative (Details) $ in Millions	Sep. 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	$ 302.7

BUSINESS COMBINATION - Narrative (Details) - USD ($) shares in Thousands, $ in Millions		6 Months Ended
	Jul. 17, 2019	Sep. 30, 2019	Sep. 30, 2018
Business Acquisition [Line Items]
Stock awards granted (in shares)		5,123	2,112
Wavecell Pte. Ltd.
Business Acquisition [Line Items]
Acquisition costs		$ 1.6
Business combination, consideration transferred	$ 117.1
Payments to acquire business	72.8
Business combination, value of stock issued	44.3
Cash held back to cover indemnity claims	10.4
Equity held back to cover indemnity claims	$ 8.5
Wavecell Pte. Ltd. \| Time-Based Restricted Stock Awards
Business Acquisition [Line Items]
Stock awards granted (in shares)	13,200
Wavecell Pte. Ltd. \| Performance-Based Restricted Stock Awards
Business Acquisition [Line Items]
Stock awards granted (in shares)	6,600
Vesting period	3 years
Restricted Cash, Current And Other Accrued Liabilities \| Wavecell Pte. Ltd.
Business Acquisition [Line Items]
Cash held back to cover indemnity claims	$ 3.5
Restricted Cash, Noncurrent And Other Liabilities, Noncurrent \| Wavecell Pte. Ltd.
Business Acquisition [Line Items]
Cash held back to cover indemnity claims	$ 6.9

BUSINESS COMBINATION - Allocation of the Fair Value of Purchase Consideration (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jul. 17, 2019	Mar. 31, 2019
Business Acquisition [Line Items]
Goodwill	$ 131,879		$ 39,694
Wavecell Pte. Ltd.
Business Acquisition [Line Items]
Cash		$ 4,473
Accounts receivable		9,438
Intangible assets		21,010
Other assets		787
Goodwill		94,584
Accounts payable		(13,072)
Deferred revenue		(90)
Total consideration		$ 117,130

BUSINESS COMBINATION - Fair Value Intangible Assets Acquired (Details) - Wavecell Pte. Ltd. $ in Thousands	Jul. 17, 2019 USD ($)
Business Acquisition [Line Items]
Total intangible assets	$ 21,010
Trade and domain names
Business Acquisition [Line Items]
Total intangible assets	$ 990
Useful life (in Years)	3 years
Trade and domain names
Business Acquisition [Line Items]
Total intangible assets	$ 13,830
Useful life (in Years)	7 years
Customer relationships
Business Acquisition [Line Items]
Total intangible assets	$ 6,190
Useful life (in Years)	7 years

INTANGIBLE ASSETS AND GOODWILL - Carrying Value of Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Sep. 30, 2019	Mar. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 45,731	$ 37,277
Accumulated Amortization	(17,321)	(25,597)
Net Carrying Amount	28,410	11,680
Full amortized intangible assets written off	11,300
Developed technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	33,466	25,702
Accumulated Amortization	(12,706)	(15,409)
Net Carrying Amount	20,760	10,293
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	11,293	9,467
Accumulated Amortization	(4,534)	(8,080)
Net Carrying Amount	6,759	1,387
Trade and domain names
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	972	2,108
Accumulated Amortization	(81)	(2,108)
Net Carrying Amount	$ 891	$ 0

INTANGIBLE ASSETS AND GOODWILL - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Mar. 31, 2019
Intangible Assets, Net (Including Goodwill) [Abstract]
Remaining 2020	$ 4,603
2021	6,673
2022	4,896
2023	3,116
2024	2,807
Thereafter	6,315
Net Carrying Amount	$ 28,410	$ 11,680

INTANGIBLE ASSETS AND GOODWILL - Summary of Changes in Goodwill (Details) $ in Thousands	6 Months Ended
	Sep. 30, 2019 USD ($)
Goodwill [Roll Forward]
Balance at March 31, 2019	$ 39,694
Additions due to acquisitions	94,584
Foreign currency translation	(2,399)
Balance at September 30, 2019	$ 131,879

RIGHT-OF-USE ASSETS AND LEASES - Narrative (Details) $ in Millions		3 Months Ended	6 Months Ended
	Jul. 03, 2019 USD ($) ft² term story	Sep. 30, 2019 USD ($)	Sep. 30, 2019 USD ($)
Lessee, Lease, Description [Line Items]
Term of contract	132 months
Renewal term	5 years
Operating lease expense		$ 4.2	$ 6.2
Amount of lease not yet commenced		$ 2.2	$ 2.2
Number of renewal terms \| term	2
Base rent	$ 0.7
Annual percentage increase in base rent	3.00%
Tenant improvements	$ 15.4
Security deposit	2.0
Increase in operating lease right-of-use asset	56.8
Increase in operating lease liability	$ 56.1
Minimum
Lessee, Lease, Description [Line Items]
Term of contract		1 year	1 year
Renewal term		1 year	1 year
Maximum
Lessee, Lease, Description [Line Items]
Term of contract		11 years	11 years
Renewal term		5 years	5 years
Property Held Under Operating Lease
Lessee, Lease, Description [Line Items]
Area of real estate property \| ft²	177,815
Number of building stories \| story	5

RIGHT-OF-USE ASSETS AND LEASES - Components of Lease Right-of-Use Assets and Liabilities (Details) $ in Thousands	Sep. 30, 2019 USD ($)
Assets
Operating lease, right-of-use assets	$ 78,147
Liabilities
Operating lease liabilities, current	5,292
Operating lease liabilities, non-current	75,221
Total operating lease liabilities	$ 80,513

RIGHT-OF-USE ASSETS AND LEASES - Supplemental Information (Details) $ in Thousands	6 Months Ended
	Sep. 30, 2019 USD ($)
Leases [Abstract]
Weighted average remaining lease term	9 years 1 month 6 days
Weighted average discount rate	4.00%
Operating cash flow from operating leases	$ 4,487

RIGHT-OF-USE ASSETS AND LEASES - Maturity of Lease Liabilities (Details) $ in Thousands	Sep. 30, 2019 USD ($)
Leases [Abstract]
Remaining 2020	$ 5,298
2021	8,103
2022	13,768
2023	11,189
2024	11,224
Thereafter	68,839
Total lease payments	118,421
Less: imputed interest	(22,486)
Less: lease incentives receivable	(15,422)
Present value of lease liabilities	$ 80,513

CONVERTIBLE SENIOR NOTES AND CAPPED CALL - Narrative (Details) $ / shares in Units, shares in Millions	1 Months Ended
	Feb. 28, 2019 USD ($) day $ / shares shares	Sep. 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 ($)	Sep. 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	(64,532,000)	(70,876,000)
Unamortized issuance costs	(536,000)	(589,000)
Net carrying amount	$ 222,432,000	$ 216,035,000

CONVERTIBLE SENIOR NOTES AND CAPPED CALL - Interest Expense (Details) - Convertible Debt - Convertible Senior Notes - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Debt Instrument [Line Items]
Contractual interest expense	$ 360	$ 719
Amortization of debt discount	3,198	6,344
Amortization of issuance costs	27	53
Total interest expense	$ 3,585	$ 7,116

STOCK-BASED COMPENSATION - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 17,391	$ 10,129	$ 30,988	$ 19,040
Cost of service revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	1,939	1,379	3,670	2,405
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	4,217	2,823	8,081	5,017
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	5,340	2,206	9,261	4,604
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 5,895	$ 3,721	$ 9,976	$ 7,014

STOCK-BASED COMPENSATION - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Sep. 30, 2019	Sep. 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	195
Options exercised (in shares)	(287)	(574)
Options canceled and forfeited (in shares)	(39)	(97)
Options outstanding at the end of the period (in shares)	2,788	3,522
Weighted-average fair value of grants during the period (in dollars per share)	$ 0	$ 8.47
Total intrinsic value of options exercised during the period	$ 3,726	$ 8,525
Weighted-average remaining recognition period at period-end (in years)	2 years 3 months 25 days	2 years 6 months 7 days
Stock Award Rollforward
Stock awards outstanding at the beginning of the period (in shares)	7,820	5,939
Stock awards granted (in shares)	5,123	2,112
Stock awards vested (in shares)	(1,945)	(1,720)
Stock awards canceled and forfeited (in shares)	(663)	(433)
Stock awards outstanding at the end of the period: (in shares)	10,335	5,898
Weighted-average fair value of grants during the period (in dollars per share)	$ 22.35	$ 22.01
Weighted-average remaining recognition period at period-end (in years)	2 years 3 months 10 days	2 years 5 months 8 days
Total unrecognized compensation expense at period-end	$ 129,136	$ 79,121

STOCK-BASED COMPENSATION - Narrative (Details) - 2017 Repurchase Plan - USD ($)	3 Months Ended	6 Months Ended
	Sep. 30, 2019	Sep. 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	$ 7,100,000
Stock repurchased during period (in shares)	0	0

INCOME TAXES (Details)	3 Months Ended		6 Months Ended
INCOME TAXES (Details)	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Effective income tax rate	(0.60%)	(0.60%)	(0.50%)	(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				6 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Sep. 30, 2018	Jun. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Numerator:
Net loss available to common stockholders	$ (40,932)	$ (34,265)	$ (21,482)	$ (15,355)	$ (75,197)	$ (36,837)
Denominator:
Common shares - basic and diluted (in shares)	98,353		93,831		97,356	93,449
Net loss per share
Basic and diluted (in dollars per share)	$ (0.42)		$ (0.23)		$ (0.77)	$ (0.39)

- 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		6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of anti-dilutive shares (in shares)	13,859	9,710	13,859	9,710
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of anti-dilutive shares (in shares)	2,788	3,496	2,788	3,496
Stock awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of anti-dilutive shares (in shares)	10,334	5,854	10,334	5,854
Contingently issuable shares (hold-back shares)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of anti-dilutive shares (in shares)	350	0	350	0
Potential shares to be issued from ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of anti-dilutive shares (in shares)	387	360	387	360

GEOGRAPHICAL INFORMATION - Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Segment Reporting Information [Line Items]
Total revenue	$ 109,517	$ 85,682	$ 206,192	$ 168,907
United States
Segment Reporting Information [Line Items]
Total revenue	85,428	74,361	168,676	146,083
International
Segment Reporting Information [Line Items]
Total revenue	$ 24,089	$ 11,321	$ 37,516	$ 22,824

GEOGRAPHICAL INFORMATION - PPE (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Mar. 31, 2019
Segment Reporting Information [Line Items]
Property and equipment, net	$ 64,776	$ 52,835
Americas (principally US)
Segment Reporting Information [Line Items]
Property and equipment, net	58,574	45,639
Europe (principally UK)
Segment Reporting Information [Line Items]
Property and equipment, net	$ 6,202	$ 7,196

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