0001023731-20-000049 | 10-K | XBRL Viewer

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Cover Page - USD ($) $ in Billions	12 Months Ended
Cover Page - USD ($) $ in Billions	Mar. 31, 2020	May 15, 2020	Sep. 30, 2019
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Mar. 31, 2020
Document Transition Report	false
Entity File Number	000-21783
Entity Registrant Name	8x8, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	77-0142404
Entity Address, Address Line One	675 Creekside Way
Entity Address, City or Town	Campbell
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95008
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 Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
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 Public Float			$ 1.6
Entity Common Stock, Shares Outstanding		103,642,454
Documents Incorporated by Reference	DOCUMENTS INCORPORATED BY REFERENCE Items 10, 11, 12, 13 and 14 of Part III incorporate information by reference from the Proxy Statement to be filed within 120 days of March 31, 2020 for the 2020 Annual Meeting of Stockholders.
Entity Central Index Key	0001023731
Amendment Flag	false
Current Fiscal Year End Date	--03-31
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2020

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2020	Mar. 31, 2019
Current assets:
Cash and cash equivalents	$ 137,394	$ 276,583
Restricted cash, current	10,376	0
Short-term investments	33,458	69,899
Accounts receivable, net	37,811	20,181
Deferred sales commission costs, current	22,444	15,601
Other current assets	35,679	15,127
Total current assets	277,162	397,391
Property and equipment, net	94,382	52,835
Operating lease, right-of-use assets	78,963
Intangible assets, net	24,001	11,680
Goodwill	128,300	39,694
Restricted cash, non-current	8,641	8,100
Long-term investments	16,083	0
Deferred sales commission costs, non-current	53,307	33,693
Other assets	19,802	2,965
Total assets	700,641	546,358
Current liabilities:
Accounts payable	40,261	32,280
Accrued compensation	22,656	18,437
Accrued taxes	10,251	13,862
Operating lease liabilities, current	5,875
Deferred revenue	7,105	3,336
Other accrued liabilities	37,277	6,790
Total current liabilities	123,425	74,705
Operating lease liabilities, non-current	92,452
Convertible senior notes, net	291,537	216,035
Other liabilities, non-current	2,496	6,228
Total liabilities	509,910	296,968
Commitments and contingencies (Note 7)
Stockholders' equity:
Preferred stock, $0.001 par value, Authorized: 5,000,000 shares Issued and outstanding: none at March 31, 2020 and 2019	0	0
Common stock, $0.001 par value, Authorized: 200,000,000 shares Issued and outstanding: 103,178,621 shares and 96,119,888 shares at March 31, 2020 and 2019, respectively	103	96
Additional paid-in capital	625,474	506,949
Accumulated other comprehensive loss	(12,176)	(7,353)
Accumulated deficit	(422,670)	(250,302)
Total stockholders' equity	190,731	249,390
Total liabilities and stockholders' equity	$ 700,641	$ 546,358

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2020	Mar. 31, 2019
Stockholders' equity:
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value per share (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	103,178,621	96,119,888
Common stock, shares outstanding (in shares)	103,178,621	96,119,888

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2018
Total revenue	$ 446,237	$ 352,586	$ 296,500
Operating expenses:
Research and development	77,790	62,063	36,405
Sales and marketing	240,013	177,976	133,945
General and administrative	87,025	72,208	51,851
Impairment of goodwill, intangible assets and equipment	0	0	9,469
Total operating expenses	606,056	442,219	338,396
Loss from operations	(159,819)	(89,633)	(41,896)
Other income (expense), net	(11,717)	1,463	3,693
Loss before provision for income taxes	(171,536)	(88,170)	(38,203)
Provision for income taxes	832	569	66,294
Net loss	$ (172,368)	$ (88,739)	$ (104,497)
Net loss per share:
Basic and diluted (in dollars per share)	$ (1.72)	$ (0.94)	$ (1.14)
Weighted average number of shares:
Basic and diluted (in shares)	99,999	94,533	92,017
Service revenue
Total revenue	$ 414,078	$ 325,305	$ 275,767
Operating expenses:
Cost of revenue	145,013	86,122	69,266
Other revenue
Total revenue	32,159	27,281	20,733
Operating expenses:
Cost of revenue	$ 56,215	$ 43,850	$ 37,460

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Net loss	$ (172,368)	$ (88,739)	$ (104,497)
Other comprehensive income (loss), net of tax
Unrealized gains (losses) on investments	(203)	473	(259)
Foreign currency translation adjustment	(4,620)	(2,181)	4,256
Comprehensive loss	$ (177,191)	$ (90,447)	$ (100,500)

- Definition

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

+ References + Details

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Beginning balance (in shares) at Mar. 31, 2017		91,500,091
Beginning balance at Mar. 31, 2017	$ 288,601	$ 91	$ 412,762	$ (9,642)	$ (114,610)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under stock plans, less withholding (in shares)		2,709,990
Issuance of common stock under stock plans, less withholding	2,182	$ 3	2,179
Repurchases of common stock (in shares)		(1,362,727)
Repurchases of common stock	(17,934)	$ (1)	(17,933)
Stock-based compensation expense	28,782		28,782
Unrealized investment gain (loss)	(259)			(259)
Foreign currency translation adjustment	4,256			4,256
Net loss	(104,497)				(104,497)
Ending balance (in shares) at Mar. 31, 2018		92,847,354
Ending 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 (in shares)		3,272,534
Issuance of common stock under stock plans, less withholding	4,486	$ 3	4,483
Stock-based compensation expense	45,548		45,548
Unrealized investment gain (loss)	473			473
Foreign currency translation adjustment	(2,181)			(2,181)
Equity component of convertible senior notes, net of issuance costs	31,128		31,128
Net loss	(88,739)				(88,739)
Ending balance (in shares) at Mar. 31, 2019		96,119,888
Ending 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 (in shares)		4,452,267
Issuance of common stock under stock plans, less withholding	7,777	$ 4	7,773
Issuance of common stock related to acquisition (in shares)		2,606,466
Issuance of common stock related to acquisition	35,840	$ 3	35,837
Stock-based compensation expense	71,821		71,821
Unrealized investment gain (loss)	(203)			(203)
Foreign currency translation adjustment	(4,620)			(4,620)
Equity component of convertible senior notes, net of issuance costs	3,094		3,094
Net loss	(172,368)				(172,368)
Ending balance (in shares) at Mar. 31, 2020		103,178,621
Ending balance at Mar. 31, 2020	$ 190,731	$ 103	$ 625,474	$ (12,176)	$ (422,670)

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities:
Net loss	$ (172,368)	$ (88,739)	$ (104,497)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation	9,360	8,748	8,171
Amortization of intangibles	8,842	6,175	5,033
Impairment of goodwill and long-lived assets	0	0	9,469
Amortization of capitalized software	19,025	9,748	2,513
Amortization of debt discount and issuance costs	14,045	1,355	0
Amortization of deferred sales commission costs	19,541	14,204	0
Provision for doubtful accounts	3,479	1,115	839
Operating lease expense, net of accretion	14,971
Non-cash lease expense	0	4,802	0
Stock-based compensation expense	70,878	44,508	29,176
Deferred income tax expense	0	0	66,273
Gain on escrow settlement	0	0	(1,393)
Other	3,522	178	(162)
Changes in assets and liabilities:
Accounts receivable	(12,737)	(5,393)	(2,402)
Deferred sales commission costs	(46,421)	(25,286)	0
Other current and non-current assets	(33,137)	(4,337)	(3,149)
Accounts payable and accruals	2,159	17,252	11,860
Deferred revenue	4,936	802	310
Net cash (used in) provided by operating activities	(93,905)	(14,868)	22,041
Cash flows from investing activities:
Purchases of property and equipment	(35,834)	(9,096)	(9,178)
Cost of capitalized software	(31,573)	(25,622)	(12,486)
Proceeds from escrow settlement	0	0	1,393
Purchases of investments	(42,223)	(54,127)	(115,224)
Sales of investments	36,515	54,642	27,841
Proceeds from maturities of investments	25,950	50,700	100,382
Acquisition of businesses, net of cash acquired	(59,129)	(5,625)	0
Net cash (used in) provided by investing activities	(106,294)	10,872	(7,272)
Cash flows from financing activities:
Finance lease payments	(315)
Finance lease payments		(949)	(1,079)
Payment of contingent consideration	0	0	(150)
Repurchase of common stock, including for withholding taxes	(6,550)	(7,823)	(22,440)
Proceeds from issuance of common stock under employee stock plans	14,330	12,202	7,229
Purchases of capped calls	(9,288)	(33,724)	0
Net proceeds from issuance of convertible senior notes	73,918	279,532	0
Net cash provided by (used in) financing activities	72,095	249,238	(16,440)
Effect of exchange rate changes on cash	(168)	(362)	444
Net increase (decrease) in cash, cash equivalents and restricted cash	(128,272)	244,880	(1,227)
Cash, cash equivalents and restricted cash, beginning of year	284,683	39,803	41,030
Cash, cash equivalents and restricted cash, end of year	156,411	284,683	39,803
Supplemental and non-cash disclosures:
Right-of-use assets obtained in exchange for new and modified operating lease liabilities	79,100
Interest paid	1,553	0	36
Income taxes paid	934	356	38
Equipment acquired under capital leases	0	68	765
Reconciliation Of Cash, Cash Equivalents And Restricted Cash [Abstract]
Total cash, cash equivalents and restricted cash	$ 156,411	$ 39,803	$ 41,030

THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES

THE COMPANY

8x8, Inc. ("8x8" or the "Company") was incorporated in California in February 1987 and was reincorporated in Delaware in December 1996.

The Company is a leading cloud provider of enterprise Software-as-a-Service ("SaaS") communications solutions that enable businesses of all sizes to communicate faster and smarter across voice, video meetings, chat and contact centers, transforming both employee and customer experiences with communications that work simply, integrate seamlessly, and perform reliably. From one proprietary cloud technology platform, customers have access to unified communications, team collaboration, video conferencing, contact center, data and analytics, and other services. Since fiscal 2004, substantially all revenue has been generated from the sale of communications services and related hardware. Prior to fiscal 2003, the Company's main business was Voice over Internet Protocol semiconductors.

The Company's fiscal year ends on March 31 of each calendar year. Each reference to a fiscal year in these Notes to 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 ended March 31, 2020).

Acquisitions

In April 2018, the Company entered into an asset purchase agreement with MarianaIQ, Inc., pursuant to which the Company purchased technology and other assets to strengthen the artificial intelligence and machine learning capabilities of the Company's X Series product suite.

In October 2018, the Company entered into an asset purchase agreement with Atlassian Corporation PLC for the purchase of the Jitsi video collaboration technology ("Jitsi"). Jitsi extends the Company's cloud technology platform with scalable video routing and interoperability capabilities built on industry standards such as WebRTC.

In July 2019, the Company entered into a share purchase agreement with Wavecell Pte. Ltd, an Asia-based provider of communication platform as a service ("CPaaS") solutions. This acquisition of an enterprise-class API solution extends 8x8’s technology advantage as a fully-owned, cloud technology platform with UCaaS, CCaaS, VCaaS, and 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.

See Note 13, " ACQUISITIONS" in the Notes to Consolidated Financial Statements for further discussion.

PRINCIPLES OF CONSOLIDATION

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

Income Statement Reporting Reclassifications

During the fourth quarter of fiscal 2020, the Company determined that presenting service revenue as revenue from the Company's core subscription services would provide transparency and clarity to the users of the financial statements. As such, the Company reclassified certain revenue and cost of revenue on its consolidated statement of operations for the full year fiscal 2020, and the comparative fiscal years 2019 and 2018. The reclassifications did not have any impact on total revenue, consolidated net loss, or cash flows for any of the fiscal years presented. Professional services revenue and cost of professional services revenue previously reported in service revenue and cost of service revenue are now reported in other revenue and cost of other revenue. Product revenue and cost of product revenue are also now reported in other revenue and cost of other revenue. In addition, other immaterial expense reclassifications were made to our fiscal 2019 consolidated statement of operations to improve comparability; these reclassifications do not affect consolidated net loss, or cash flows for any of the fiscal years presented.

During the fourth quarter of fiscal 2019, the Company reclassified certain expenses on its Consolidated Statement of Operations to provide additional clarity and insights in light of strategic and organizational changes impacting its channel, marketing and support activities. The reclassifications were made to cost of revenue, sales and marketing expenses, research and development expenses, and general and administrative expenses for the full year fiscal 2019 and the comparative fiscal year 2018. These reclassifications did not have any impact on total revenue, consolidated net loss, or cash flows for any of the fiscal years presented.

USE OF ESTIMATES

The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles generally ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and equity and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and

the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including, but not limited to, those related to bad debts, returns reserve for expected cancellations, fair value of and/or potential impairment of goodwill and intangible assets, capitalization of internally developed software, benefit period for deferred commissions, stock-based compensation, incremental borrowing rate used to calculate operating lease liabilities, income and sales tax liabilities, convertible senior notes fair value, litigation, and other contingencies. The Company bases its estimates on known facts and circumstances, historical experience, and various other assumptions. Actual results could differ from those estimates under different assumptions or conditions.

REVENUE RECOGNITION

As described below, significant management judgments and estimates must be made and used in connection with the revenue recognized in any accounting period. Material differences may result in the amount and timing of our revenue for any period if our management made different judgments or utilized different estimates.

We recognize service revenue, mainly from subscription services to its cloud-based voice, call center, video, and collaboration solutions using the five-step model as prescribed by ASU No. 2014-09, Revenue from Contracts with Customers (ASC 606), as amended: Topic 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.

We identify 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 we expect 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. We generally bill our customers on a monthly basis. Contracts typically range from annual to multi-year agreements with payment terms of net 30 days or less. We occasionally allow a 30-day period to cancel a subscription and return products shipped for a full refund.

When a contract with a customer is signed, the Company assesses whether collection of the fees under the arrangement is probable. The Company maintains a revenue reserve for potential credits to be issued.

The Company records reductions to revenue for estimated sales returns and customer credits at the time the related revenue is recognized. Sales returns and customer credits are estimated based on its historical experience, current trends and its expectations regarding future experience. The Company monitors the accuracy of its sales reserve estimates by reviewing actual returns and credits and adjusts them for its future expectations to determine the adequacy of its current and future reserve needs. If actual future returns and credits differ from past experience, additional reserves may be required.

When the Company's services do not meet certain service level commitments, customers are entitled to receive service credits, and in certain cases, refunds, each representing a form of variable consideration. The Company historically has not experienced any significant incidents affecting the defined levels of reliability and performance as required by our subscription contracts. Accordingly, the amount of any estimated refunds related to these agreements in the consolidated financial statements is not material during the periods presented.

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 until the end of the contractual period. Payments received in advance of subscription services being rendered are recorded as deferred revenue; revenue recognized for services rendered in advance of payments received are recorded as contract assets. Usage fees, when bundled, are billed in advance and recognized over time on a ratable basis over the contractual subscription term, which is usually the monthly contractual billing period. Non-bundled usage fees are recognized as actual usage occurs.

Other Revenue

Other revenue comprises primarily product revenue and professional services 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. Professional services for deployment, 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 as services are performed or upon completion of the deployment.

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 assets or other assets in the Company's 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 are 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 deferred revenues, current in the consolidated balance sheets, with the remainder recorded as other liabilities, non-current in the Company's consolidated balance sheets.

Deferred Sales Commission Costs

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

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

CASH, CASH EQUIVALENTS, AND INVESTMENTS

The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.

At March 31, 2020 and 2019, all investments were classified as available-for-sale and reported at fair value, based either upon quoted prices in active markets, quoted prices in less active markets, or quoted market prices for similar investments, with unrealized gains and losses, net of related tax, if any, included in other comprehensive income (loss) and disclosed as a

separate component of stockholders' equity. Realized gains and losses on sales of all such investments are reported within the caption of other income (expense), net in the consolidated statements of operations and computed using the specific identification method. The Company classifies its investments as current based on the nature of the investments and their availability for use in current operations. The Company's investments in marketable securities are monitored on a periodic basis for impairment. In the event the carrying value of an investment exceeds its fair value and the decline in value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis for the investment is established. These available-for-sale investments are primarily held in the custody of two major financial institutions.

ACCOUNTS RECEIVABLE ALLOWANCE

The Company estimates the amount of uncollectible accounts receivable at the end of each reporting period based on the aging of the receivable balance, current and historical customer trends, and communications with its customers. Amounts are written off after considerable collection efforts have been made and the amounts are determined to be uncollectible.

OPERATING LEASE, RIGHT-OF-USE ASSETS, AND LEASE LIABILITIES

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 10 years. Some of the leases include a Company option to extend the lease term for less than 12 months 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 Company's consolidated balance sheets, and the expense for these short-term leases is recognized on a straight-line basis over the lease term.

PROPERTY AND EQUIPMENT

Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method. Estimated useful lives of three years are used for equipment, software and software development costs, and five years for furniture and fixtures. Amortization of leasehold improvements is computed using the shorter of the remaining facility lease term or the estimated useful life of the improvements.

Maintenance, repairs, and ordinary replacements are charged to expense. Expenditures for improvements that extend the physical or economic life of the property are capitalized. Gains or losses on the disposition of property and equipment are recorded in the consolidated statements of operations.

Construction in progress primarily relates to costs to acquire or internally develop software for internal use not fully completed as of March 31, 2020 and 2019.

ACCOUNTING FOR LONG-LIVED ASSETS

The Company reviews the recoverability of its long-lived assets, such as property and equipment, right-of-use assets, definite lived intangibles or capitalized software, when events or changes in circumstances occur that indicate that the carrying value of the asset or asset group may not be recoverable. Examples of such events could include a significant disposal of a portion of such assets, an adverse change in the market involving the business employing the related asset or a significant change in the operation or use of an asset. The assessment of possible impairment is based on the Company's ability to recover the carrying value of the asset or asset group from the expected future cash flows (undiscounted and without interest charges) of the related operations. If these cash flows are less than the carrying value of such asset or asset group, an impairment loss is recognized for the difference between estimated fair value and carrying value. The measurement of impairment requires management to estimate the fair value of long-lived assets and asset groups through future cash flows.

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill represents the excess fair value of consideration transferred over the fair value of net assets acquired in business combinations. Goodwill and intangible assets with indefinite useful lives are not amortized but are tested annually for impairment and more often if there is an indicator of impairment.

For the year ended March 31, 2018, the Company had determined that it had three reporting units and allocated goodwill to the reporting units for the purposes of its annual impairment test. For the year ended March 31, 2019, the Company has determined it had one reporting unit. The change in reporting units resulted from the following events:


•	As of April 1, 2018, the Company's DXI operations no longer operated on a standalone basis and was integrated into the Company's existing United Kingdom operations, and


•	During the third fiscal quarter of 2019, the Company assessed it had only one Chief Operating Decision Maker, who reviewed financial results on a consolidated basis.

Following the acquisition of Wavecell in the second quarter of fiscal 2020, the Company considered whether the Chief Operating Decision Maker changed the manner in which financial results were reviewed. Financial results continue to be presented on a consolidated basis, and do not present separately the revenues and costs related to Wavecell on a stand-alone basis. As such, for the year ended March 31, 2020, the Company continued to conclude it had one reporting unit.

The Company performs testing for impairment of goodwill on an annual basis, or as events occur or circumstances change that would more likely than not reduce the fair value of the Company’s single reporting unit below its carrying amount. Goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value. The Company conducted its annual impairment test of goodwill in the fourth quarter of fiscal 2020 and fiscal 2019 and determined that no adjustment to the carrying value of goodwill was required.

Intangible assets, consisting of acquired developed technology, domain names, and customer relationships, acquired in a business combination are initially measured at fair value and were determined to have definite lives. Thereafter, intangible assets are amortized on a straight-line basis over their estimated useful lives. Amortization expense related to developed technology is included in cost of revenue. Amortization expense related to customer relationships and domain names are included in sales and marketing expense. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate an asset’s carrying value may not be recoverable.

CONVERTIBLE SENIOR NOTES

In accounting for the issuance of the convertible senior notes (the "Notes"), the Company separated the Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of similar debt instruments that do not have associated convertible features. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the respective Notes. The equity component is not remeasured as long as it continues to meet the condition for equity classification. The excess of the principal amount of the liability component over its carrying amount (“debt discount”) is amortized to interest expense over the term of the Notes.

The Company allocated the issuance costs incurred to the liability and equity components of the Notes based on their relative fair values. Issuance costs attributable to the liability component were recorded as a reduction to the liability portion of the Notes and are being amortized to interest expense over the term of the Notes. Issuance costs attributable to the equity component, representing the conversion option, were netted with the equity component in stockholders' equity.

RESEARCH & DEVELOPMENT AND SOFTWARE DEVELOPMENT COSTS

Software developed or obtained for internal use in accordance with ASC 350-40, Internal-Use Software (ASC 350-40), is capitalized during the application development stage. In accordance with authoritative guidance, the Company begins to capitalize costs to develop software when preliminary development efforts are successfully completed, management has authorized and committed project funding, and it is probable that the project will be completed, and the software will be used as intended. Once the project has been completed, these costs are amortized to cost of service revenue on a straight-line basis over the estimated useful life of the related asset, generally estimated to be three years. Costs incurred prior to meeting these criteria together with costs incurred for training and maintenance are expensed as incurred and recorded in research and development expense on the Company's Consolidated Statements of Operations. The Company classifies software development costs associated with the development of the Company's products and services as property and equipment.

ADVERTISING COSTS

Advertising costs are expensed as incurred and were $32.2 million, $25.0 million and $14.5 million for the years ended March 31, 2020, 2019 and 2018, respectively.

FOREIGN CURRENCY TRANSLATION

The Company has determined that the functional currency of each of its foreign subsidiaries are the subsidiary's local currency. The Company believes that this most appropriately reflects the current economic facts and circumstances of the Company's subsidiaries' operations. The assets and liabilities of the subsidiaries are translated at the applicable exchange rate as of the end of the balance sheet period, and revenue and expenses are translated at an average rate over the period presented. Resulting currency translation adjustments are recorded as a component of accumulated other comprehensive income or loss within the stockholder's equity.

SEGMENT INFORMATION

The Company has determined the chief executive officer is its chief operating decision maker. The chief executive officer reviews financial information presented on a consolidated basis for purposes of assessing performance and making decisions on how to allocate resources. The Company has determined that it operates in a single reportable segment.

CONCENTRATIONS

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents, investments and trade accounts receivable. The Company has cash equivalents and investment policies that limit the amount of credit exposure to any one financial institution and restrict placement of these funds to financial institutions evaluated as highly credit-worthy. The Company has not experienced any material losses relating to its investments.

The Company sells its products to customers and distributors. The Company performs credit evaluations of its customers' financial condition and generally does not require collateral from its customers. As of and for the fiscal years ending March 31, 2020 and 2019, no customer accounted for more than 10% of accounts receivable or revenues.

The Company purchases all of its hardware products from suppliers that manufacture the hardware directly, and from their distributors. The inability of any supplier to fulfill supply requirements of the Company could materially impact future operating results, financial position or cash flows.

The Company also relies primarily on third-party network service providers to provide telephone numbers and PSTN call termination and origination services for its customers. If these service providers failed to perform their obligations to the Company, such failure could materially impact future operating results, financial position and cash flows.

FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal market or the most advantageous market in which it would transact.

The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. Observable inputs are inputs that reflect the assumptions market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the factors that market participants would use in valuing the asset or liability developed based on the best information available in the circumstances.

The standard establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value by requiring that the most observable inputs be used when available. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows:


•	Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

•

Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets).


•	Level 3 applies to assets or liabilities for which fair value is derived from valuation techniques in which one or more significant inputs are unobservable, including the Company's own assumptions.

The estimated fair value of financial instruments is determined by the Company using available market information and valuation methodologies considered to be appropriate. The carrying amounts of the Company's cash and cash equivalents, accounts receivable and accounts payable approximate their fair values due to their short maturities. The Company's investments are recorded at fair value and convertible senior notes payable are recorded at net carrying value.

See Note 8, "CONVERTIBLE SENIOR NOTES AND CAPPED CALL" in the Notes to Consolidated Financial Statement for the carrying amount the Company's the Notes, which are not recorded at fair value as of March 31, 2020 or 2019. See Note 3, "FAIR VALUE MEASUREMENTS" in the Notes to Consolidated Financial Statement for the estimated fair value of the Company's convertible senior notes.

ACCOUNTING FOR STOCK-BASED COMPENSATION

The Company accounts for the fair value of restricted stock units (“RSUs”) using the closing market price of the Company’s common stock on the date of grant. For new-hire grants and annual refresh grants, one-third of the RSUs typically vest on the first anniversary of grant date, and remainder vest on a one-eighth basis quarterly over the subsequent two years.

Stock-based compensation cost for RSUs is measured at the grant date based on the estimated fair value of the award and is recognized as expense over the requisite service period (generally the vesting period), net of estimated forfeitures.

The Company estimates the fair value of the rights to acquire stock under its 1996 Employee Stock Purchase Plan (the “ESPP”) using the Black-Scholes option pricing formula. The ESPP provides for consecutive six-month offering periods and the Company uses its own historical volatility data in the valuation of shares that are purchased under the ESPP.

To value option grants, the Company uses the Black-Scholes option valuation model. Fair value determined using the Black-Scholes option valuation model varies based on assumptions used for the expected stock prices volatility, expected life, risk-free interest rates and future dividend payments. The Company used the historical volatility of its stock over a period equal to the expected life of the options. The expected life assumptions represent the weighted-average period stock-based awards are expecting to remain outstanding. These expected life assumptions were established through the review of historical exercise behavior of stock-based award grants with similar vesting periods. The risk-free interest rates were based on the closing market bid yields of actively traded U.S. treasury securities in the over-the-counter market for the expected term equal to the expected term of the option. The dividend yield assumption is based on the Company's history of not paying dividends.

The Company issued performance stock units ("PSUs") to a group of executives with vesting that is contingent on both market performance and continued service during the fiscal year ended March 31, 2020:

•

These PSUs vest (1) 50% on September 17, 2021 and (2) 50% on September 17, 2022, in each case subject to the performance of the Company's common stock relative to the Russell 2000 Index (the benchmark) during the period from grant date through such vesting date. A 2x multiplier will be applied to the total shareholder returns (the "TSR"), such that the number of shares earned will increase or decrease by 2% of the target numbers, for each 1% of positive or negative relative TSR. In the event the Company's common stock performance is below negative 30% relative to the benchmark, no shares will be issued. In no event will the number of shares issued in each tranche exceed 200% of the target for that tranche.

The Company issued PSUs to a group of executives with vesting that is contingent on both market performance and continued service during the fiscal year ended March 31, 2019:

•

These PSUs vest (1) 50% on October 23, 2020 and (2) 50% on October 23, 2021, in each case subject to the performance of the Company's common stock relative to the Russell 2000 Index (the benchmark) during the period from grant date through such vesting date. A 2x multiplier will be applied to the TSR, such that the number of shares earned will increase or decrease by 2% of the target numbers, for each 1% of positive or negative relative TSR. In the event the Company's common stock performance is below negative 30% relative to the benchmark, no shares will be issued. In no event will the number of shares issued in each tranche exceed 200% of the target for that tranche.

The Company issued PSUs to a group of executives with vesting that is contingent on both market performance and continued service during the fiscal year ended March 31, 2018:

•

These PSUs vest (1) 50% on September 19, 2019 and (2) 50% on September 19, 2020, in each case subject to the performance of the Company's common stock relative to the Russell 2000 Index (the benchmark) during the period from grant date through such vesting date. A 2x multiplier will be applied to the TSR, such that the number of shares earned will increase or decrease by 2% of the target numbers, for each 1% of positive or negative relative TSR. In the event the Company's common stock performance is below negative 30%, relative to the benchmark, no shares will be issued. In no event will the number of shares issued in each tranche exceed 200% of the target for that tranche.

To value these market-based PSUs under the Equity Compensation Plans, the Company used a Monte Carlo simulation model on the date of grant. Fair value determined using the Monte Carlo simulation model varies based on the assumptions used for the expected stock price volatility, the correlation coefficient between the Company and the Nasdaq Composite Index, risk-free interest rates, and future dividend payments.

RESEARCH AND DEVELOPMENT COSTS

Research and development expenses consist primarily of personnel, consulting and equipment costs necessary for the Company to conduct development and engineering efforts. Research and development costs are expensed as incurred.

COMPREHENSIVE INCOME (LOSS)

Comprehensive income (loss), as defined, includes all changes in equity (net assets) during a period. The difference between net income (loss) and comprehensive income (loss) is due to foreign currency translation adjustments and unrealized gains or losses on investments classified as available-for-sale.

NET INCOME (LOSS) PER SHARE

Basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders (numerator) by the weighted average number of vested, unrestricted common shares outstanding during the period (denominator). Diluted net income (loss) per share is computed on the basis of the weighted average number of shares of common stock plus the effect of

dilutive potential common shares outstanding during the period using the treasury stock method unless their effect is anti-dilutive. Dilutive potential common shares include outstanding stock options, ESPP, RSUs and PSUs.

The Company would include the dilutive effects of the Notes (see Note 8, "CONVERTIBLE SENIOR NOTES AND CAPPED CALL" in the Notes to Consolidated Financial Statement) in the calculation of diluted net income per common share if the average market price is above the conversion price. Upon conversion of the Notes, it is the Company’s intention to pay cash equal to the lesser of the aggregate principal amount or the conversion value of the Notes being converted, therefore, only the conversion spread relating to the Notes would be included in the Company’s diluted earnings per share calculation unless their effect is anti-dilutive.

RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS

In February 2016, the FASB issued ASU 2016-2, Leases (Topic 842) (“ASU 2016-02”), along with amendments issued in 2018, which requires companies to generally recognize on the balance sheet operating and financing lease liabilities and corresponding right-of-use assets. Effective April 1, 2019, the Company adopted ASU 2016-02 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 certain 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 not to 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. See Note 6, "LEASES" in the Notes to Consolidated Financial Statements for additional information on leases.

RECENT ACCOUNTING PRONOUNCEMENTS NOT YET EFFECTIVE

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), which enhances and simplifies various aspects of the income tax accounting guidance, including requirements such as tax basis step-up in goodwill obtained in a transaction that is not a business combination, ownership changes in investments, and interim-period accounting for enacted changes in tax law. The amendment will be effective for public companies with fiscal years beginning after December 15, 2020, which is fiscal 2022 for the Company; early adoption is permitted. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), which makes modifications to disclosure requirements on fair value measurements. The amendment is effective for public companies with fiscal years beginning after December 15, 2019, which is fiscal 2021 for the Company; early adoption is permitted. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements.

In August 2018, the FASB issued ASU 2018-15, 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, which is fiscal 2021 for the Company; early adoption is permitted. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements.

In June 2016, the FASB issued ASU 2016‑13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments, further amended by ASU 2018-19 issued in November 2019, ASU 2019-04 issued in April 2019, ASU 2019-05 issued in May 2019, ASU 2019-10 issued in November 2019, and ASU 2019-11 issued in November 2019, which replaces the existing impairment model with a forward-looking expected loss method. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes will result in more timely recognition of credit losses. These ASUs are effective for annual and interim periods beginning after December 15, 2019, which is fiscal 2021 for the Company; early adoption is permitted. The Company does not expect the adoption of this standard to have a material impact on the Company’s consolidated financial statements.

REVENUE RECOGNITION

12 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

Disaggregation of Revenue

The Company disaggregates its revenue by geographic region. See Note 12, "GEOGRAPHICAL INFORMATION" in the Notes to Consolidated Financial Statements for more information.

Contract Balances

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



	March 31, 2020		March 31, 2019
Accounts receivable, net	$	37,811	$	20,181
Contract assets, current	$	10,425	$	5,717
Contract assets, non-current	$	13,698	$	—
Deferred revenue, current	$	7,105	$	3,336
Deferred revenue, non-current	$	1,119	$	6

Contract assets, current, contract assets, non-currents, and deferred revenue, non-current are recorded in other current assets, other assets, and other liabilities, non-current, respectively.

Changes in the contract assets and the deferred revenue balances during the year ended March 31, 2020 are as follows (in thousands):



	March 31, 2020		March 31, 2019		$ Change
Contract assets	$	24,123	$	5,717	$	18,406
Deferred revenue	$	8,224	$	3,342	$	4,882

The change in contract assets was primarily driven by the recognition of revenue that has not yet been billed. The increase in deferred revenue was due to billings in advance of performance obligations being satisfied. During the year ended March 31, 2020, the Company recognized revenues of approximately $3.0 million that was included in deferred revenue at the beginning of the year.

Remaining Performance Obligations

The Company's subscription terms typically range from one to five years. Contract revenue as of March 31, 2020 that has not yet been recognized was approximately $270.0 million. This excludes contracts with an original expected length of one year or less. The Company expects to recognize revenue on the vast majority of the remaining performance obligation over the next 36 months.

FAIR VALUE MEASUREMENTS

12 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

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



As of March 31, 2020	Amortized Costs		Gross Unrealized Gain		Gross Unrealized Loss			Estimated Fair Value		Cash and Cash Equivalents		Short-Term Investments		Long-Term Investments
Cash	$	21,002	$	—	$	—		$	21,002	$	21,002	$	—	$	—
Level 1:
Money market funds	110,796		—		—			110,796		110,796		—		—
Treasuries	6,192		116		—			6,308		—		—		6,308
Subtotal	137,990		116		—			138,106		131,798		—		6,308
Level 2:
Commercial paper	14,979		6		—			14,985		5,596		9,389		—
Corporate debt	34,153		32		(341		)	33,844		—		24,069		9,775
Subtotal	49,132		38		(341		)	48,829		5,596		33,458		9,775
Total assets	$	187,122	$	154	$	(341	)	$	186,935	$	137,394	$	33,458	$	16,083



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

As of March 31, 2020, the estimated fair value of the Company's Notes was $309.6 million, which was determined based on the closing price for the Notes on the last trading day of the reporting period and is considered to be Level 2 in the fair value hierarchy due to limited trading activity of the Notes.

- 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

FINANCIAL STATEMENT COMPONENTS

12 Months Ended

Mar. 31, 2020

Property, Plant and Equipment [Abstract]

FINANCIAL STATEMENT COMPONENTS

Property and equipment consisted of the following (in thousands):



	March 31,
	2020			2019
Computer equipment	$	38,105		$	34,706
Software development costs	77,635			39,131
Software licenses	1,569			9,713
Leasehold improvements	31,706			6,286
Furniture and fixtures	5,485			2,324
Construction in progress	13,852			10,071
	168,352			102,231
Less: accumulated depreciation and amortization	(73,970		)	(49,396		)
Total property and equipment, net	$	94,382		$	52,835

Depreciation and amortization expense related to property and equipment was $28.4 million, $18.5 million, and $10.7 million for the years ended March 31, 2020, 2019 and 2018, respectively.

Other current asset consisted of the following (in thousands):



	March 31,
	2020		2019
Prepaid expense	$	14,489	$	7,891
Contract assets, current	10,425		5,717
Receivable related to lease assignment	6,853		—
Other current assets	3,912		1,519
Total other current assets	$	35,679	$	15,127

Other current liabilities consisted of the following (in thousands):



	March 31,
	2020		2019
Liability related to lease assignment	$	8,969	$	—
Acquisition-related holdback cash and shares	18,864		—
Accrued liabilities	9,444		6,790
Total other current liabilities	$	37,277	$	6,790

INTANGIBLE ASSETS, GOODWILL AND OTHER ASSETS

12 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS, GOODWILL AND OTHER ASSETS

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



	March 31, 2020							March 31, 2019
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Technology	$	33,932	$	(16,312	)	$	17,620	$	25,702	$	(15,409	)	$	10,293
Customer relationships	11,409		(5,412		)	5,997		9,467		(8,080		)	1,387
Trade names and domains	983		(599		)	384		2,108		(2,108		)	—
In-process research and development	—		—			—		95		(95		)	—
Total acquired identifiable intangible assets	$	46,324	$	(22,323	)	$	24,001	$	37,372	$	(25,692	)	$	11,680

As of March 31, 2020, the weighted average remaining useful life for technology, customer relationship, and trade names and domains was 4.9 years, 5.8 years, and 0.1 years, respectively.

Amortization expense for related intangible assets was $8.8 million, $6.2 million, and $5.0 million for the years ended March 31, 2020, 2019 and 2018, respectively.

During the year ended March 31, 2020, the Company wrote off approximately $11.3 million of fully amortized intangible assets and the corresponding accumulated amortization.

At March 31, 2020, annual amortization of definite lived intangible assets, based upon existing intangible assets and current useful lives, is estimated to be the following (in thousands):



	Amount
2021	$	6,871
2022	4,708
2023	3,156
2024	2,851
2025 and thereafter	6,415
Total	$	24,001

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



	Total
Balance at March 31, 2018	$	40,054
Additions due to acquisitions	500
Foreign currency translation	(860		)
Balance at March 31, 2019	39,694
Additions due to acquisitions	91,060
Foreign currency translation	(2,454		)
Balance at March 31, 2020	$	128,300

Deferred Sales Commission Costs

Amortization of deferred sales commission costs for the year ended March 31, 2020 and 2019 was $19.5 million and $14.2 million, respectively. Prior to the adoption of ASC 606, the Company did not defer sales commission costs. There were no material write-offs relative to the costs capitalized for the year ended March 31, 2020 and 2019.

LEASES

12 Months Ended

Mar. 31, 2020

Leases [Abstract]

LEASES

Operating Leases

The following table provides balance sheet information related to operating leases as of March 31, 2020 (in thousands):



	March 31, 2020
Assets
Operating lease, right-of-use assets	$	78,963

Liabilities
Operating lease liabilities, current	$	5,875
Operating lease liabilities, non-current	92,452
Total operating lease liabilities	$	98,327

During the year ended March 31, 2020, operating lease expense was approximately $15.0 million. Variable lease and short-term lease costs were $1.6 million during the year ended March 31, 2020.

The following table presents supplemental information for the year ended March 31, 2020 (in thousands, except for weighted average remaining lease term and discount rate):



Weighted average remaining lease term	8.9 years
Weighted average discount rate	4.0		%
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow from operating leases	$	9,856

The following table presents maturity of lease liabilities under the Company's non-cancellable operating leases as of March 31, 2020 (in thousands):



2021	$	9,765
2022	16,270
2023	15,237
2024	11,722
2025	11,386
Thereafter	58,078
Total lease payments	$	122,458
Less: imputed interest	(21,522		)
Less: lease incentives receivable	(2,609		)
Present value of lease liabilities	$	98,327

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 that started 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.

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. Lease incentive received by the Company included a full rent abatement during the first 12 months of the lease term and 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. Upon obtaining full access to the

leased property during the second quarter of fiscal 2020, the Company recognized an operating lease right-of-use asset of $56.8 million and operating lease liability of $56.1 million.

Lease Assignment

In the fourth quarter of fiscal 2018, the Company entered into a 132-month lease agreement (the "Agreement") with CAP Phase I, a Delaware limited liability company (the "Landlord"), to rent approximately 162,000 square feet of office space in a new building in San Jose, California. The lease term began on January 1, 2019. On April 30, 2019, due to the Company's rapid growth and greater than anticipated future space needs, the Company entered into an assignment and assumption (the "Assignment") of the Agreement with the Landlord, and Roku Inc., a Delaware corporation ("Roku"), whereby the Company assigned to Roku the Agreement. Pursuant to the Assignment, the Company expects to be released from all of its obligations under the lease and related standby letter of credit by the end of the Company’s fiscal year ending March 31, 2022, or shortly thereafter. The Company also expects to receive the reimbursement of base rent and direct expenses from Roku in the fourth quarter of fiscal 2021 in accordance with the Assignment.

The obligations related to the Agreement is not included in the right-of-use asset or lease liabilities as of March 31, 2020. The remaining obligations related to the Assignment of $9.0 million and the termination fee of $0.8 million are recorded in other accrued liabilities and other liabilities, non-current, respectively, in the Company's consolidated balance sheet. The expected receivable of $6.9 million is recorded in other current assets in the Company's consolidated balance sheet.

COMMITMENTS AND CONTINGENCIES	12 Months Ended
COMMITMENTS AND CONTINGENCIES	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Guarantees Indemnifications In the normal course of business, the Company may agree to indemnify other parties, including customers, lessors and parties to other transactions with the Company, with respect to certain matters such as breaches of representations or covenants or intellectual property infringement or other claims made by third parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. In addition, the Company has entered into indemnification agreements with its officers and directors. It is not possible to determine the maximum potential amount of the Company's exposure under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material impact on the Company's operating results, financial position or cash flows. Under some of these agreements, however, the Company's potential indemnification liability might not have a contractual limit. Operating Leases The Company's lease obligations consist of the Company's principal facility and various leased facilities under operating lease agreements. See Notes 6, "LEASES" in the Notes to Consolidated Financial Statements for more information on the Company's leases and the future minimum lease payments. Purchase Obligation The Company's purchase obligations include contracts with third-party customer support vendors and third-party network service providers. These contracts include minimum monthly commitments and the requirements to maintain the service level for several months. The total contractual minimum commitments were approximately $4.2 million at March 31, 2020. Legal Proceedings The Company may be involved in various claims, lawsuits, investigations and other proceedings, including intellectual property, commercial, regulatory compliance, securities and employment matters that arise in the normal course of business. 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. The Company believes it has recorded adequate provisions for any such lawsuits, claims and proceedings and, as of March 31, 2020, it was not reasonably possible that a material loss had been incurred in excess of the amounts recognized in the Consolidated Financial Statements. Based on its experience, the Company believes that damage amounts claimed in these matters are not meaningful indicators of potential liability. Some of the matters pending against the Company involve potential compensatory, punitive or treble damage claims or sanctions, that, if granted, could require the Company to pay damages or make other expenditures in amounts that could have a material adverse effect on its Consolidated Financial Statements. Given the inherent uncertainties of litigation, the ultimate outcome of the ongoing matters described herein cannot be predicted with certainty. While litigation is inherently unpredictable, the Company believes it has valid defenses with respect to the legal matters pending against it. Nevertheless, the Consolidated Financial Statements could be materially adversely affected in a particular period by the resolution of one or more of these contingencies. State and Local Taxes and Surcharges From time to time, the Company has received inquiries from a number of state and local taxing agencies with respect to the remittance of sales, use, telecommunications, excise, and income taxes. Several jurisdictions currently are conducting tax audits of the Company's records. The Company collects or has accrued for taxes that it believes are required to be remitted. The amounts that have been remitted have historically been within the accruals established by the Company. The Company adjusts its accrual when facts relating to specific exposures warrant such adjustment. During the second quarter of fiscal 2019, the Company conducted a periodic review of the taxability of its services and determined that certain services may be subject to sales, use, telecommunications or other similar indirect taxes in certain jurisdictions. Accordingly, the Company recorded contingent indirect tax liabilities. As of March 31, 2020 and 2019, the Company had accrued contingent indirect tax liabilities of $4.5 million and $8.0 million, respectively.

CONVERTIBLE SENIOR NOTES AND CAPPED CALL

12 Months Ended

Mar. 31, 2020

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 "Initial Notes") due 2024 in a private placement, including the exercise in full of the initial purchasers' option to purchase additional notes. The Initial 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 Initial 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.

In November 2019, the Company issued an additional $75 million aggregate principal amount of 0.50% convertible senior notes (the "Additional Notes" and together with the Initial Notes, the "Notes") due 2024 in a registered offering under the same indenture as the Initial Notes. The total net proceeds from the Additional Notes, after deducting initial purchase discounts, debt issuance costs and costs of the capped call transactions described below, were approximately $64.6 million. The Additional Notes constitute a further issuance of, and form a single series with, the Company’s outstanding 0.50% convertible senior notes due 2024 issued in February 2019 in the aggregate principal amount of $287.5 million. Immediately after giving effect to the issuance of the Additional Notes, the Company has $362.5 million aggregate principal amount of convertible senior notes. The Additional 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 February 1, 2020. The Notes will mature on February 1, 2024, unless earlier repurchased, redeemed, or converted.

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.

Prior to the close of business on the business day immediately preceding October 1, 2023, the Notes will be convertible only under the following circumstances:

At any time during any calendar quarter commencing after the fiscal quarter ending on June 30, 2019 (and only during such calendar quarter), if the last reported sale price of the Common Stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day;


2.	During the five business day period immediately after any ten consecutive trading day period (the measurement period), if the trading price per $1,000 principal amount of the Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the common stock on each such trading day and the conversion rate on each such trading day;


3.	If the Company calls any or all of the Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or


4.	Upon the occurrence of specified corporate events (as set forth in the indenture governing the Notes).

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 year ended March 31, 2020, 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.

In accounting for the issuance of the Notes, the Company separated the Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of similar debt instruments, which do not have an associated convertible feature. The carrying amount of the equity component representing the conversion option for the Initial Notes and the Additional Notes was $64.9 million and $12.4 million, respectively, and was determined by deducting the fair value of the liability component from the par value of the Notes. The equity component is not remeasured as long as it continues to meet the condition for equity classification. The excess of the principal amounts of the liability components over the carrying amounts (“debt discount”) in connection with the Initial Notes and Additional Notes are amortized to interest expense at the effective interest rates of 6.5% and 5.3%, respectively, over the terms of the Notes.

The Company allocated the total issuance cost incurred to the liability and equity components of the Notes based on their relative value. Issuance costs attributable to the liability component of $0.6 million for each Initial Notes and Additional Notes were recorded as additional reduction to the liability portion of the Notes and are being amortized to interest expense over the terms of the Notes. Issuance costs attributable to the equity component were netted with the equity component in stockholders’ equity.

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



	March 31, 2020			March 31, 2019
Principal	$	362,500		$	287,500
Unamortized debt discount	(69,987		)	(70,876		)
Unamortized issuance costs	(976		)	(589		)
Net carrying amount	$	291,537		$	216,035

Unamortized debt discount and issuance costs will be amortized over the remaining life of the Notes, which is approximately 46 months.

The following table sets forth total interest expense recognized related to the Notes (in thousands):



	Years Ended March 31,
	2020		2019
Contractual interest expense	$	1,572	$	156
Amortization of debt discount	13,901		1,343
Amortization of issuance costs	145		11
Total interest expense	$	15,618	$	1,510

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 14.1 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 in connection with the Initial Notes and $9.3 million in connection with the Additional Notes were recorded as a reduction to additional paid-in capital and will not be remeasured.

The net impact to the Company’s stockholders’ equity, included in additional paid-in capital, relating to the issuance of the Initial and Additional Notes was as follows (in thousands):



	Additional Notes			Initial Notes
Conversion option	$	12,810		$	66,700
Payments for capped call transactions	(9,288		)	(33,724		)
Issuance costs	(428		)	(1,848		)
Total	$	3,094		$	31,128

STOCKHOLDERS' EQUITY

12 Months Ended

Mar. 31, 2020

Equity [Abstract]

STOCKHOLDERS' EQUITY

2006 Stock Plan

In May 2006, the Company's board of directors approved the 2006 Stock Plan ("2006 Plan"). The Company's stockholders subsequently adopted the 2006 Plan in September 2006, which became effective in October 2006. The Company reserved 7,000,000 shares of the Company's common stock for issuance under this plan. The 2006 Plan provides for granting incentive stock options to employees and non-statutory stock options to employees, directors or consultants. The stock option price of incentive stock options granted may not be less than the fair market value on the effective date of the grant. Other types of options and awards under the 2006 Plan may be granted at any price approved by the administrator, which generally will be the compensation committee of the board of directors. Options generally vest over four years and expire ten years after grant. In 2009, the 2006 Plan was amended to provide for the granting of stock purchase rights. The 2006 Plan expired in May 2016. As of March 31, 2020, there are no shares available for future grants under the 2006 Plan.

2012 Equity Incentive Plan

In June 2012, the Company's board of directors approved the 2012 Equity Incentive Plan ("2012 Plan"). The Company's stockholders subsequently adopted the 2012 Plan in July 2012, which became effective in August 2012. The Company reserved 4,100,000 shares of the Company's common stock for issuance under this plan. In August 2014, 2016, 2018 and 2019, the 2012 Plan was amended to allow for an additional 6,800,000, 4,500,000, 16,300,000 and 12,000,000 shares reserved for issuance, respectively. The 2012 Plan provides for granting incentive stock options to employees and non-statutory stock options to employees, directors or consultants, and granting of stock appreciation rights, restricted stock, restricted stock units and performance units, qualified performance-based awards and stock grants. The stock option price of incentive stock options granted may not be less than the fair market value on the effective date of the grant. Other types of options and awards under the 2012 Plan may be granted at any price approved by the administrator, which generally will be the compensation committee of the board of directors. Options, restricted stock and restricted stock units generally vest over three or four years and expire ten years after grant. The 2012 Plan expires in June 2029. As of March 31, 2020, 17.7 million shares remained available under the 2012 Plan.

2013 New Employee Inducement Incentive Plan

In September 2013, the Company's board of directors approved the 2013 New Employee Inducement Incentive Plan ("2013 Plan"). The Company reserved 1,000,000 shares of the Company's common stock for issuance under this plan. In November 2014, the 2013 Plan was amended to allow for an additional 1,200,000 shares reserved for issuance. In July 2015, the Plan was amended to allow for an additional 1,200,000 shares reserved for issuance. In connection with its approval of the August 2016 amendments to the 2012 Plan, the Board of Directors has approved the suspension of future grants under the 2013 Plan, which became effective immediately upon stockholder approval of the proposed 2012 Plan amendments in August 2016. In addition, the 2013 Plan was amended to reduce the number of shares reserved for issuance under the 2013 Plan to the number of shares that are then subject to outstanding awards under the 2013 Plan, leaving no shares available for future grant. The 2013 Plan provided for granting non-statutory stock options, stock appreciation rights, restricted stock, restricted stock and performance units and stock grants solely to newly hired employees as a material inducement to accepting employment with the Company. Options were granted at market value on the grant date under the 2013 Plan, unless determined otherwise at the time of grant by the administrator, which generally will be the compensation committee of the board of directors. Grants generally vest over four years and expire ten years after grant.

2017 New Employee Inducement Incentive Plan

In October 2017, the Company's board of directors approved the 2017 New Employee Inducement Incentive Plan ("2017 Plan"). The Company reserved 1,000,000 shares of the Company's common stock for issuance under this plan. In January 2018, the

2017 Plan was amended to allow for an additional 1,500,000 shares reserved for issuance. The 2017 Plan provides for granting non-statutory stock options, stock appreciation rights, restricted stock, and performance units and stock grants solely to newly hired employees as a material inducement to accepting employment with the Company. Options are granted at market value on the grant date under the 2017 Plan, unless determined otherwise at the time of grant by the administrator, which generally will be the compensation committee of the board of directors. Grants generally vest over three years and expire ten years after grant. As of March 31, 2020, 0.5 million shares remained available under the 2017 plan.

Stock-Based Compensation

The following table summarizes stock-based compensation expense (in thousands):



	Years Ended March 31,
	2020		2019		2018
Cost of service revenue	$	5,330	$	3,752	$	2,636
Cost of other revenue	3,051		1,775		1,341
Research and development	19,712		12,313		6,625
Sales and marketing	20,205		11,951		6,630
General and administrative	22,580		14,717		11,944
Total	$	70,878	$	44,508	$	29,176

Stock Options, Stock Purchase Right and Restricted Stock Unit Activity

Stock option activities under all the Company's stock option plans during the years ended March 31, 2020, 2019 and 2018 are summarized as follows:



	Number of Shares		Weighted Average Exercise Price Per Share
Outstanding at March 31, 2017	4,462,412		7.52
Granted	609,135		14.95
Exercised	(773,897	)	3.95
Canceled/Forfeited	(299,365	)	13.05
Outstanding at March 31, 2018	3,998,285		8.93
Granted	236,799		21.65
Exercised	(759,884	)	7.70
Canceled/Forfeited	(361,129	)	15.41
Outstanding at March 31, 2019	3,114,071		9.45
Granted	—		—
Exercised	(785,281	)	8.77
Canceled/Forfeited	(54,527	)	17.01
Outstanding at March 31, 2020	2,274,263		9.50

Vested and expected to vest March 31, 2020	2,255,616		9.42
Exercisable at March 31, 2020	2,115,696

The total intrinsic value of options exercised in the years ended March 31, 2020, 2019 and 2018 was $10.1 million, $10.0 million and $9.0 million, respectively.

Stock purchase right activities during the years ended March 31, 2020, 2019 and 2018 are summarized as follows:



	Number of Shares		Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Term (in Years)
Balance at March 31, 2017	11,370		$	8.10	1.09
Granted	—		—
Vested and released	(6,395	)	8.26
Forfeited	—		—
Balance at March 31, 2018	4,975		8.10		1.09
Granted	—		—
Vested and released	(4,625	)	7.88
Forfeited	(350	)	7.88
Balance at March 31, 2019 and 2020	—		—		0.00

There were no activities related to stock purchase right during the year ended March 31, 2020.

Activities related to PSUs and RSUs during the years ended March 31, 2020, 2019 and 2018 are summarized as follows:



	Number of Shares		Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Term (in Years)
Balance at March 31, 2017	4,939,050		$	11.57	1.55
Granted	3,481,870		14.41
Vested and released	(1,833,038	)	10.27
Forfeited	(652,339	)	12.73
Balance at March 31, 2018	5,935,543		13.51		1.60
Granted	5,726,787		19.77
Vested and released	(2,399,371	)	12.87
Forfeited	(1,442,471	)	16.85
Balance at March 31, 2019	7,820,488		17.68		1.35
Granted	6,431,505		20.62
Vested and released	(3,443,335	)	17.02
Forfeited	(1,617,343	)	19.06
Balance at March 31, 2020	9,191,315				1.89

As of March 31, 2020, there was $122.1 million of total unrecognized compensation cost related to stock options, PSUs and RSUs, which is expected to be recognized over a weighted average period of approximately 1.9 years.

1996 Employee Stock Purchase Plan

The Company's 1996 Stock Purchase Plan ("Employee Stock Purchase Plan") was adopted in June 1996 and became effective upon the closing of the Company's initial public offering in July 1997. Under the Employee Stock Purchase Plan, 500,000 shares of common stock were initially reserved for issuance. At the start of each fiscal year, the number of shares of common stock subject to the Employee Stock Purchase Plan increases so that 500,000 shares remain available for issuance. In May 2006, the Company's board of directors approved a ten-year extension of the Employee Stock Purchase Plan. Stockholders approved a ten-year extension of the Employee Stock Purchase Plan at the 2006 Annual Meeting of Stockholders held September 18, 2006. The Board of Directors approved a second ten-year extension in May 2017. Stockholders approved the second ten-year extension in August 2017. As a result of these extensions, the Employee Stock Purchase Plan is effective until August 2027. During fiscal 2020, 2019 and 2018, approximately 0.6 million, 0.5 million and 0.4 million shares, respectively, were issued under the Employee Stock Purchase Plan.

The Employee Stock Purchase Plan permits eligible employees to purchase common stock through payroll deductions at a price equal to 85% of the fair market value of the common stock at the beginning of each one-year offering period or the end of a six month purchase period, whichever is lower. When the Employee Stock Purchase Plan was reinstated in fiscal 2005, the offering period was reduced from two years to one year. The contribution amount may not exceed ten percent of an employee's base

compensation, including commissions, but not including bonuses and overtime wages. Commencing with the purchase period beginning in August 2020, the contribution amount may not exceed twenty percent of an employee's base compensation, including commissions and standard incentive cash bonuses, but not including non-standard bonuses and overtime wages. In the event of a merger of the Company with or into another corporation or the sale of all or substantially all of the assets of the Company, the Employee Stock Purchase Plan provides that a new exercise date will be set for each purchase right under the plan which exercise date will occur before the date of the merger or asset sale.

As of March 31, 2020, there was approximately $1.1 million of unrecognized compensation cost related to employee stock purchases. This cost is expected to be recognized over a weighted average period of 0.5 years.

Assumptions Used to Calculate Stock-Based Compensation Expense

The fair value of each of the Company's option grants has been estimated on the date of grant using the Black-Scholes pricing model with the following assumptions:



	Years Ended March 31,
	2020	2019	2018
Expected volatility	—%	41%	41%
Expected dividend yield	—	—	—
Risk-free interest rate	0	2.5% to 3.0%	1.8% to 2.4%
Weighted average expected term (in years)	N/A	4.5 years	4.8 years

Weighted average fair value of options granted	$—	$8.19	$5.70

The Company did not grant any stock options during fiscal 2020.

The estimated fair value of stock purchase rights granted under the Employee Stock Purchase Plan was estimated using the Black-Scholes pricing model with the following weighted-average assumptions:



	Years Ended March 31,
	2020	2019	2018
Expected volatility	32%	41%	40%
Expected dividend yield	—	—	—
Risk-free interest rate	1.79%	2.43%	1.33%
Weighted average expected term (in years)	0.7 years	0.8 years	0.8 years

Weighted average fair value of rights granted	$5.66	$5.74	$4.10

Stock Repurchases

In May 2017, the Company's board of directors authorized the Company to purchase $25.0 million of its common stock from time to time under the 2017 Repurchase Plan (the "2017 Plan"). The 2017 Plan expires when the maximum purchase amount is reached, or upon the earlier revocation or termination by the board of directors. The remaining amount available under the 2017 Plan at March 31, 2020 was approximately $7.1 million.

INCOME TAXES

12 Months Ended

Mar. 31, 2020

Income Tax Disclosure [Abstract]

INCOME TAXES

The Tax Cuts and Jobs Act ("Tax Act") was enacted on December 22, 2017. Among numerous provisions, the Tax Act reduces the U.S. federal corporate tax rate from 35% to 21%, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, and creates new taxes on certain foreign sourced earnings.

The Company remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21%. Accordingly, deferred tax assets were adjusted down by about $23 million in the period ended December 31, 2017. However, because the Company recorded a full valuation allowance during the year ended December 31, 2018, the decrease in deferred tax assets from the tax rate change was fully offset by a corresponding decrease in valuation allowance, and therefore, resulted in no impact to the tax expense.

The one-time transition tax is based on the Company's total post-1986 earnings and profits for which U.S. income taxes have been previously deferred. The Company recorded no one-time transition tax liability for its foreign subsidiaries as the Company's calculations concluded it does not have any untaxed foreign accumulated earnings as of the measurement date. The Company has made an accounting policy election to treat Global Intangible Low-Taxed Income (“GILTI”) as a current period cost.

In response to the Tax Act, the SEC staff issued guidance on accounting for the tax effects of the Tax Act. The guidance provides a one-year measurement period for companies to complete the accounting. As of March 31, 2019, the Company has completed its analysis and recorded no adjustments.

For the years ended March 31, 2020, 2019 and 2018, the Company recorded a provision for income taxes of approximately $0.8 million, $0.6 million, and $66.3 million, respectively. The components of the consolidated provision for income taxes for fiscal 2020, 2019 and 2018 consisted of the following (in thousands):



	March 31,
Current:	2020		2019		2018
Federal	$	—	$	—	$	(395	)
State	185		291		256
Foreign	647		278		185
Total current tax provision	832		569		46
Deferred
Federal	—		—		59,837
State	—		—		6,664
Foreign	—		—		(253		)
Total deferred tax provision	—		—		66,248
Income tax provision	$	832	$	569	$	66,294

The Company's income (loss) from continuing operations before income taxes included $9.0 million, $0.2 million, and $(19.7) million of foreign subsidiary income for the fiscal years ended March 31, 2020, 2019 and 2018, respectively. The Company is permanently reinvesting the earnings of its profitable foreign subsidiaries. The Company intends to reinvest these profits in expansion of overseas operations. If the Company were to remit these earnings, the tax impact would be immaterial.

Deferred tax assets and (liabilities) were comprised of the following (in thousands):



	March 31,
	2020			2019
Deferred tax assets
Net operating loss carryforwards	$	109,734		$	61,740
Research and development and other credit carryforwards	19,413			15,573
Stock-based compensation	10,343			9,006
Reserves and allowances	3,974			5,697
Lease liability	24,492			—
Fixed assets and intangibles	5,314			2,709
Gross deferred tax assets	173,270			94,725
Valuation allowance	(115,435		)	(65,948		)
Total deferred tax assets	$	57,835		$	28,777
Deferred tax liabilities
Deferred sales commissions	(21,608		)	(12,221		)
Convertible debt	(16,626		)	(16,556		)
Lease asset	(19,601		)	—
Net deferred taxes	$	—		$	—

The Company assesses the realizability of deferred tax assets based on the available evidence, including a history of taxable income and estimates of future taxable income. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that all or some portion of deferred tax assets will not be realized. For the year ended March 31, 2020, the Company continues to maintain a full valuation allowance against its deferred tax assets as it considered the cumulative losses in recent periods to be substantial negative evidence. At March 31, 2020, management determined that a valuation allowance of approximately $115.4 million was needed compared with approximately $65.9 million as of March 31, 2019.

At March 31, 2020, the Company had federal net operating loss carryforwards related to fiscal 2019 and 2020 of approximately $280.5 million, which carryforward indefinitely, and had carry-forwards related to prior years of $156.3 million, which begin to expire in 2021. As of March 31, 2020, the Company has state net operating loss carry-forwards of $203.7 million, which expire at

various dates between 2029 and 2037. In addition, at March 31, 2020, the Company had research and development credit carryforwards for federal and California tax reporting purposes of approximately $12.9 million and $14.1 million, respectively. The federal income tax credit carryforwards will expire at various dates between 2022 and 2037, while the California income tax credits will carry forward indefinitely. A reconciliation of the Company's provision (benefit) for income taxes to the amounts computed using the statutory U.S. federal income tax rate is as follows (in thousands):



	Years Ended March 31,
	2020			2019			2018
Tax benefit at statutory rate	$	(36,163	)	$	(18,441	)	$	(11,790	)
State income taxes before valuation allowance, net of federal effect	(7,680		)	(3,612		)	(1,042		)
Foreign tax rate differential	(1,422		)	71			(1,188		)
Research and development credits	(3,892		)	(3,744		)	(2,189		)
Change in valuation allowance	51,741			30,558			56,663
Compensation/option differences	(6,584		)	(7,277		)	(4,965		)
Non-deductible compensation	3,017			1,200			1,132
Tax Act rate change impact	—			—			22,630
Foreign loss not benefited	107			159			6,847
Other	1,708			1,655			196
Total income tax provision (benefit)	$	832		$	569		$	66,294

For the fiscal year ended March 31, 2020 and 2019, the statutory federal rate of 21% was used. For the fiscal year ended March 31, 2018, a blended statutory U.S. federal income tax rate of 34% for 9 months and 21% for 3 months was used.

The Company recognizes the tax benefit from uncertain tax positions if it is more likely than not that the tax positions will be sustained on examination by the tax authorities, based on the technical merits of the position. The tax benefit is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):



	Unrecognized Tax Benefits
	2020		2019		2018
Balance at beginning of year	$	5,033	$	3,980	$	3,331
Gross increases - tax position in prior period	—		17		—
Gross increases - tax position related to the current year	1,082		1,036		649
Balance at end of year	$	6,115	$	5,033	$	3,980

At March 31, 2020, the Company had unrecognized tax benefits of $6.1 million, all of which, if recognized, would favorably affect the company's effective tax rate. The Company does not expect its unrecognized tax benefits to change significantly over the next 12 months.

The Company's policy for recording interest and penalties associated with tax examinations is to record such items as a component of operating expense income before taxes. During the fiscal years ended March 31, 2020, 2019 and 2018, the Company did not recognize any interest or penalties related to unrecognized tax benefits.

Utilization of the Company's net operating loss and tax credit carryforwards can become subject to a substantial annual limitation due to the ownership change limitations provided by Section 382 of the Internal Revenue Code and similar state provisions. Such an annual limitation could result in the expiration or elimination of the net operating loss and tax credit carryforwards before utilization. The Company has performed an analysis of its changes in ownership under Section 382 of the Internal Revenue Code. The Company currently believes that the Section 382 limitation will not limit utilization of the carryforwards prior to their expiration, with the exception of certain acquired loss and tax credit carryforwards.

The Company files U.S. federal and state income tax returns in jurisdictions with varying statutes of limitations. The Company is currently under examination by the Illinois Department of Revenue for the fiscal years ended March 31, 2016 and 2017. The outcome of the ongoing examination is currently unknown. The tax years fiscal 2000 through fiscal 2020 generally remain subject to examination by federal and most state tax authorities.

NET LOSS PER SHARE

12 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

NET LOSS PER SHARE

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



	Years Ended March 31,
	2020			2019			2018
Numerator:
Net loss available to common stockholders	$	(172,368	)	$	(88,739	)	$	(104,497	)

Denominator:
Denominator for basic and diluted calculation	99,999			94,533			92,017

Net loss per share - basic and diluted	$	(1.72	)	$	(0.94	)	$	(1.14	)

The following table summarizes the potentially dilutive common shares that were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive (in thousands):



	Years Ended March 31,
	2020	2019	2018
Stock options	2,274	3,114	3,998
Restricted stock units	9,191	7,820	5,940
Potential shares to be issued from ESPP	582	473	475
Total anti-dilutive shares	12,047	11,407	10,413

Given the average market price at the end of fiscal 2020 was below the conversion price of the Notes, no such shares were included in the potentially dilutive share count.

GEOGRAPHICAL INFORMATION

12 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

GEOGRAPHICAL INFORMATION

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



	Revenue for the Years Ended March 31,
	2020		2019		2018
United States	$	350,368	$	304,378	$	266,034
International	95,869		48,208		30,466
Total revenue	$	446,237	$	352,586	$	296,500



	Property and Equipment as of March 31,
	2020		2019
United States	$	87,673	$	45,639
International	6,709		7,196
Total property and equipment, net	$	94,382	$	52,835

ACQUISITIONS

12 Months Ended

Mar. 31, 2020

Business Combinations [Abstract]

ACQUISITIONS

MarianaIQ

On April 12, 2018, the Company entered into an Asset Purchase Agreement with MarianaIQ Inc. ("MarianaIQ") for the purchase of certain assets of MarianaIQ to strengthen the artificial intelligence and machine learning capabilities of the Company's X Series product suite.

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

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

MarianaIQ did not contribute materially to revenue or net loss for the period of acquisition to March 31, 2020. Goodwill recognized upon acquisition is deductible for income tax purposes.

Jitsi

On October 29, 2018, the Company entered into an Asset Purchase Agreement with Atlassian Corporation PLC (Atlassian) through which the Company purchased certain assets from Atlassian relating to the Jitsi open source video communications technology ("Jitsi"). The Company intends to integrate Jitsi's video collaboration capabilities into the Company's technology platform to further enhance the Company's video and X Series platform offerings.

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

Jitsi did not contribute materially to revenue or net loss for the period of acquisition to March 31, 2020. Goodwill recognized upon acquisition is deductible for income tax purposes.

Wavecell

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 Transaction extends 8x8’s technology advantage as a fully-owned, cloud technology platform with UCaaS, CCaaS, VCaaS, and 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 held back to cover potential indemnity claims made by the Company after the closing date. One-third of these holdback amounts are eligible to be released in 12 months from the date of the Transaction and the remainder in 18 months from the date of the Transaction. The holdback cash of $10.4 million is recorded in restricted cash, current and other accrued liabilities, respectively, in the Company's consolidated balance sheet. The holdback of $8.5 million in equity is recorded in other accrued liabilities in the Company's consolidated balance sheet. Additionally, in connection with the Transaction, 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 three years from the Transaction. As of March 31, 2020, the total unrecognized compensation cost related to these awards was approximately $15.1 million, which is expected to be recognized over the next 2.3 years.

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	91,060
Accounts payable	(9,548		)
Deferred revenue	(90		)
Total consideration	$	117,130

The acquisition has been accounted for as a business combination under the acquisition method and, accordingly, the total purchase price is allocated to the tangible and intangible assets acquired and the liabilities assumed based on their estimated fair value on the acquisition date. The fair value of assets acquired and liabilities assumed from the acquisition of Wavecell is based on a preliminary valuation and, as such, the Company's estimates and allocations to certain assets, liabilities, and tax estimates are subject to change within the measurement period as additional information becomes available. 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 preliminary value of the acquired intangible assets acquired are as follows (in thousands):



	Fair Value		Useful life (in Years)
Trade and domain names	$	990	0.8
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 $1.8 million during the year ended March 31, 2020. 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 consolidated financial results. Pro forma results of operations for this acquisition have not been presented, as the financial impact to the Company’s consolidated financial statements is not material.

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

12 Months Ended

Mar. 31, 2020

Quarterly Financial Information Disclosure [Abstract]

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

In thousands, except per share data amounts:



	Quarters Ended
	March 31, 2020			Dec. 31, 2019			Sept. 30, 2019			June 30, 2019			March 31, 2019			Dec. 31, 2018			Sept. 30, 2018			June 30, 2018
Total revenues	$	121,478		$	118,567		109,517			$	96,675		$	93,767		$	89,912		$	85,682		$	83,225
Gross profit	63,857			62,348			59,820			58,984			59,174			56,962			54,083			52,395
Loss from operations	(46,154		)	(43,168		)	(37,944		)	(32,553		)	(27,425		)	(24,238		)	(21,987		)	(15,983		)
Net income (loss)	(50,100		)	(47,071		)	(40,932		)	(34,265		)	(28,131		)	(23,771		)	(21,482		)	(15,355		)
Net income (loss) per share:
Basic and diluted	$	(0.49	)	$	(0.47	)	$	(0.42	)	$	(0.36	)	$	(0.29	)	$	(0.25	)	$	(0.23	)	$	(0.16	)

SCHEUDLE II

12 Months Ended

Mar. 31, 2020

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

SCHEDULE II

VALUATION AND QUALIFYING ACCOUNTS

(in thousands)



Description	Balance at Beginning of Year		Additions Charged to Expenses		Deductions (a)			Balance at End of Year
Total Allowance for Doubtful Accounts:
Year ended March 31, 2018:	$	954	$	250	$	(300	)	$	904
Year ended March 31, 2019:	$	904	$	1,115	$	(1,155	)	$	864
Year ended March 31, 2020:	$	864	$	3,067	$	(825	)	$	3,106

(a) The deductions related to allowance for doubtful accounts represent accounts receivable which are written off.

THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

The Company

8x8, Inc. ("8x8" or the "Company") was incorporated in California in February 1987 and was reincorporated in Delaware in December 1996.

Fiscal Period

Acquisitions

Principles of Consolidation

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

Reclassifications

Use of Estimates

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

Other Revenue

Other revenue comprises primarily product revenue and professional services revenue.

Contract Assets

Deferred Revenue

Deferred Sales Commission Costs

Cash, Cash Equivalents and Investments

The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.

Accounts Receivable Allowance

Operating Lease, Right-Of-Use Assets and Lease Liabilities

Property and Equipment

Construction in progress primarily relates to costs to acquire or internally develop software for internal use not fully completed as of March 31, 2020 and 2019.

Accounting for Long-Lived Assets

Goodwill and Other Intangible Assets


•	As of April 1, 2018, the Company's DXI operations no longer operated on a standalone basis and was integrated into the Company's existing United Kingdom operations, and


•	During the third fiscal quarter of 2019, the Company assessed it had only one Chief Operating Decision Maker, who reviewed financial results on a consolidated basis.

Convertible Senior Notes

Research & Development and Software Development Costs

Advertising Costs

Advertising costs are expensed as incurred

Foreign Currency Translation

Segment Information

Concentrations

Fair Values of Financial Instruments


•	Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

•


•	Level 3 applies to assets or liabilities for which fair value is derived from valuation techniques in which one or more significant inputs are unobservable, including the Company's own assumptions.

Accounting for Stock-Based Compensation

•

The Company issued PSUs to a group of executives with vesting that is contingent on both market performance and continued service during the fiscal year ended March 31, 2019:

•

The Company issued PSUs to a group of executives with vesting that is contingent on both market performance and continued service during the fiscal year ended March 31, 2018:

•

Research and Development Costs

Comprehensive Income (Loss)

Net Income (Loss) Per Share

Recently Adopted Accounting Pronouncements, Recent Accounting Pronouncements Not Yet Effective

RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS

RECENT ACCOUNTING PRONOUNCEMENTS NOT YET EFFECTIVE

Guarantees

Indemnifications

In the normal course of business, the Company may agree to indemnify other parties, including customers, lessors and parties to other transactions with the Company, with respect to certain matters such as breaches of representations or covenants or intellectual property infringement or other claims made by third parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. In addition, the Company has entered into indemnification agreements with its officers and directors.

It is not possible to determine the maximum potential amount of the Company's exposure under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material impact on the Company's operating results, financial position or cash flows. Under some of these agreements, however, the Company's potential indemnification liability might not have a contractual limit.

REVENUE RECOGNITION (Tables)

12 Months Ended

Mar. 31, 2020

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):



	March 31, 2020		March 31, 2019
Accounts receivable, net	$	37,811	$	20,181
Contract assets, current	$	10,425	$	5,717
Contract assets, non-current	$	13,698	$	—
Deferred revenue, current	$	7,105	$	3,336
Deferred revenue, non-current	$	1,119	$	6

Contract assets, current, contract assets, non-currents, and deferred revenue, non-current are recorded in other current assets, other assets, and other liabilities, non-current, respectively.

Changes in the contract assets and the deferred revenue balances during the year ended March 31, 2020 are as follows (in thousands):



	March 31, 2020		March 31, 2019		$ Change
Contract assets	$	24,123	$	5,717	$	18,406
Deferred revenue	$	8,224	$	3,342	$	4,882

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements

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



As of March 31, 2020	Amortized Costs		Gross Unrealized Gain		Gross Unrealized Loss			Estimated Fair Value		Cash and Cash Equivalents		Short-Term Investments		Long-Term Investments
Cash	$	21,002	$	—	$	—		$	21,002	$	21,002	$	—	$	—
Level 1:
Money market funds	110,796		—		—			110,796		110,796		—		—
Treasuries	6,192		116		—			6,308		—		—		6,308
Subtotal	137,990		116		—			138,106		131,798		—		6,308
Level 2:
Commercial paper	14,979		6		—			14,985		5,596		9,389		—
Corporate debt	34,153		32		(341		)	33,844		—		24,069		9,775
Subtotal	49,132		38		(341		)	48,829		5,596		33,458		9,775
Total assets	$	187,122	$	154	$	(341	)	$	186,935	$	137,394	$	33,458	$	16,083



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

- 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

FINANCIAL STATEMENT COMPONENTS (Tables)

12 Months Ended

Mar. 31, 2020

Property, Plant and Equipment [Abstract]

Components of Property, Plant and Equipment

Property and equipment consisted of the following (in thousands):



	March 31,
	2020			2019
Computer equipment	$	38,105		$	34,706
Software development costs	77,635			39,131
Software licenses	1,569			9,713
Leasehold improvements	31,706			6,286
Furniture and fixtures	5,485			2,324
Construction in progress	13,852			10,071
	168,352			102,231
Less: accumulated depreciation and amortization	(73,970		)	(49,396		)
Total property and equipment, net	$	94,382		$	52,835

Schedule of Other Current Assets

Other current asset consisted of the following (in thousands):



	March 31,
	2020		2019
Prepaid expense	$	14,489	$	7,891
Contract assets, current	10,425		5,717
Receivable related to lease assignment	6,853		—
Other current assets	3,912		1,519
Total other current assets	$	35,679	$	15,127

Other Current Liabilities

Other current liabilities consisted of the following (in thousands):



	March 31,
	2020		2019
Liability related to lease assignment	$	8,969	$	—
Acquisition-related holdback cash and shares	18,864		—
Accrued liabilities	9,444		6,790
Total other current liabilities	$	37,277	$	6,790

INTANGIBLE ASSETS, GOODWILL AND OTHER ASSETS (Tables)

12 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Acquired Finite-Lived Intangible Assets by Major Class

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



	March 31, 2020							March 31, 2019
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Technology	$	33,932	$	(16,312	)	$	17,620	$	25,702	$	(15,409	)	$	10,293
Customer relationships	11,409		(5,412		)	5,997		9,467		(8,080		)	1,387
Trade names and domains	983		(599		)	384		2,108		(2,108		)	—
In-process research and development	—		—			—		95		(95		)	—
Total acquired identifiable intangible assets	$	46,324	$	(22,323	)	$	24,001	$	37,372	$	(25,692	)	$	11,680

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

At March 31, 2020, annual amortization of definite lived intangible assets, based upon existing intangible assets and current useful lives, is estimated to be the following (in thousands):



	Amount
2021	$	6,871
2022	4,708
2023	3,156
2024	2,851
2025 and thereafter	6,415
Total	$	24,001

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, 2018	$	40,054
Additions due to acquisitions	500
Foreign currency translation	(860		)
Balance at March 31, 2019	39,694
Additions due to acquisitions	91,060
Foreign currency translation	(2,454		)
Balance at March 31, 2020	$	128,300

LEASES (Tables)

12 Months Ended

Mar. 31, 2020

Leases [Abstract]

Assets and Liabilities, Leases

The following table provides balance sheet information related to operating leases as of March 31, 2020 (in thousands):



	March 31, 2020
Assets
Operating lease, right-of-use assets	$	78,963

Liabilities
Operating lease liabilities, current	$	5,875
Operating lease liabilities, non-current	92,452
Total operating lease liabilities	$	98,327

Lease, Cost

The following table presents supplemental information for the year ended March 31, 2020 (in thousands, except for weighted average remaining lease term and discount rate):



Weighted average remaining lease term	8.9 years
Weighted average discount rate	4.0		%
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow from operating leases	$	9,856

Lessee, Operating Leases, Liability, Maturity

The following table presents maturity of lease liabilities under the Company's non-cancellable operating leases as of March 31, 2020 (in thousands):



2021	$	9,765
2022	16,270
2023	15,237
2024	11,722
2025	11,386
Thereafter	58,078
Total lease payments	$	122,458
Less: imputed interest	(21,522		)
Less: lease incentives receivable	(2,609		)
Present value of lease liabilities	$	98,327

CONVERTIBLE SENIOR NOTES AND CAPPED CALL (Tables)

12 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Convertible Debt

The net impact to the Company’s stockholders’ equity, included in additional paid-in capital, relating to the issuance of the Initial and Additional Notes was as follows (in thousands):



	Additional Notes			Initial Notes
Conversion option	$	12,810		$	66,700
Payments for capped call transactions	(9,288		)	(33,724		)
Issuance costs	(428		)	(1,848		)
Total	$	3,094		$	31,128

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



	March 31, 2020			March 31, 2019
Principal	$	362,500		$	287,500
Unamortized debt discount	(69,987		)	(70,876		)
Unamortized issuance costs	(976		)	(589		)
Net carrying amount	$	291,537		$	216,035

Interest Income and Interest Expense Disclosure

The following table sets forth total interest expense recognized related to the Notes (in thousands):



	Years Ended March 31,
	2020		2019
Contractual interest expense	$	1,572	$	156
Amortization of debt discount	13,901		1,343
Amortization of issuance costs	145		11
Total interest expense	$	15,618	$	1,510

STOCKHOLDERS' EQUITY (Tables)

12 Months Ended

Mar. 31, 2020

Equity [Abstract]

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs

The following table summarizes stock-based compensation expense (in thousands):



	Years Ended March 31,
	2020		2019		2018
Cost of service revenue	$	5,330	$	3,752	$	2,636
Cost of other revenue	3,051		1,775		1,341
Research and development	19,712		12,313		6,625
Sales and marketing	20,205		11,951		6,630
General and administrative	22,580		14,717		11,944
Total	$	70,878	$	44,508	$	29,176

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

Stock option activities under all the Company's stock option plans during the years ended March 31, 2020, 2019 and 2018 are summarized as follows:



	Number of Shares		Weighted Average Exercise Price Per Share
Outstanding at March 31, 2017	4,462,412		7.52
Granted	609,135		14.95
Exercised	(773,897	)	3.95
Canceled/Forfeited	(299,365	)	13.05
Outstanding at March 31, 2018	3,998,285		8.93
Granted	236,799		21.65
Exercised	(759,884	)	7.70
Canceled/Forfeited	(361,129	)	15.41
Outstanding at March 31, 2019	3,114,071		9.45
Granted	—		—
Exercised	(785,281	)	8.77
Canceled/Forfeited	(54,527	)	17.01
Outstanding at March 31, 2020	2,274,263		9.50

Vested and expected to vest March 31, 2020	2,255,616		9.42
Exercisable at March 31, 2020	2,115,696

Stock purchase right activities during the years ended March 31, 2020, 2019 and 2018 are summarized as follows:



	Number of Shares		Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Term (in Years)
Balance at March 31, 2017	11,370		$	8.10	1.09
Granted	—		—
Vested and released	(6,395	)	8.26
Forfeited	—		—
Balance at March 31, 2018	4,975		8.10		1.09
Granted	—		—
Vested and released	(4,625	)	7.88
Forfeited	(350	)	7.88
Balance at March 31, 2019 and 2020	—		—		0.00

Activities related to PSUs and RSUs during the years ended March 31, 2020, 2019 and 2018 are summarized as follows:



	Number of Shares		Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Term (in Years)
Balance at March 31, 2017	4,939,050		$	11.57	1.55
Granted	3,481,870		14.41
Vested and released	(1,833,038	)	10.27
Forfeited	(652,339	)	12.73
Balance at March 31, 2018	5,935,543		13.51		1.60
Granted	5,726,787		19.77
Vested and released	(2,399,371	)	12.87
Forfeited	(1,442,471	)	16.85
Balance at March 31, 2019	7,820,488		17.68		1.35
Granted	6,431,505		20.62
Vested and released	(3,443,335	)	17.02
Forfeited	(1,617,343	)	19.06
Balance at March 31, 2020	9,191,315				1.89

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The fair value of each of the Company's option grants has been estimated on the date of grant using the Black-Scholes pricing model with the following assumptions:



	Years Ended March 31,
	2020	2019	2018
Expected volatility	—%	41%	41%
Expected dividend yield	—	—	—
Risk-free interest rate	0	2.5% to 3.0%	1.8% to 2.4%
Weighted average expected term (in years)	N/A	4.5 years	4.8 years

Weighted average fair value of options granted	$—	$8.19	$5.70

Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions

The estimated fair value of stock purchase rights granted under the Employee Stock Purchase Plan was estimated using the Black-Scholes pricing model with the following weighted-average assumptions:



	Years Ended March 31,
	2020	2019	2018
Expected volatility	32%	41%	40%
Expected dividend yield	—	—	—
Risk-free interest rate	1.79%	2.43%	1.33%
Weighted average expected term (in years)	0.7 years	0.8 years	0.8 years

Weighted average fair value of rights granted	$5.66	$5.74	$4.10

INCOME TAXES (Tables)

12 Months Ended

Mar. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

he components of the consolidated provision for income taxes for fiscal 2020, 2019 and 2018 consisted of the following (in thousands):



	March 31,
Current:	2020		2019		2018
Federal	$	—	$	—	$	(395	)
State	185		291		256
Foreign	647		278		185
Total current tax provision	832		569		46
Deferred
Federal	—		—		59,837
State	—		—		6,664
Foreign	—		—		(253		)
Total deferred tax provision	—		—		66,248
Income tax provision	$	832	$	569	$	66,294

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and (liabilities) were comprised of the following (in thousands):



	March 31,
	2020			2019
Deferred tax assets
Net operating loss carryforwards	$	109,734		$	61,740
Research and development and other credit carryforwards	19,413			15,573
Stock-based compensation	10,343			9,006
Reserves and allowances	3,974			5,697
Lease liability	24,492			—
Fixed assets and intangibles	5,314			2,709
Gross deferred tax assets	173,270			94,725
Valuation allowance	(115,435		)	(65,948		)
Total deferred tax assets	$	57,835		$	28,777
Deferred tax liabilities
Deferred sales commissions	(21,608		)	(12,221		)
Convertible debt	(16,626		)	(16,556		)
Lease asset	(19,601		)	—
Net deferred taxes	$	—		$	—

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the Company's provision (benefit) for income taxes to the amounts computed using the statutory U.S. federal income tax rate is as follows (in thousands):



	Years Ended March 31,
	2020			2019			2018
Tax benefit at statutory rate	$	(36,163	)	$	(18,441	)	$	(11,790	)
State income taxes before valuation allowance, net of federal effect	(7,680		)	(3,612		)	(1,042		)
Foreign tax rate differential	(1,422		)	71			(1,188		)
Research and development credits	(3,892		)	(3,744		)	(2,189		)
Change in valuation allowance	51,741			30,558			56,663
Compensation/option differences	(6,584		)	(7,277		)	(4,965		)
Non-deductible compensation	3,017			1,200			1,132
Tax Act rate change impact	—			—			22,630
Foreign loss not benefited	107			159			6,847
Other	1,708			1,655			196
Total income tax provision (benefit)	$	832		$	569		$	66,294

Summary of Income Tax Contingencies

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):



	Unrecognized Tax Benefits
	2020		2019		2018
Balance at beginning of year	$	5,033	$	3,980	$	3,331
Gross increases - tax position in prior period	—		17		—
Gross increases - tax position related to the current year	1,082		1,036		649
Balance at end of year	$	6,115	$	5,033	$	3,980

NET LOSS PER SHARE (Tables)

12 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

Net Income Per Share

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



	Years Ended March 31,
	2020			2019			2018
Numerator:
Net loss available to common stockholders	$	(172,368	)	$	(88,739	)	$	(104,497	)

Denominator:
Denominator for basic and diluted calculation	99,999			94,533			92,017

Net loss per share - basic and diluted	$	(1.72	)	$	(0.94	)	$	(1.14	)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share



	Years Ended March 31,
	2020	2019	2018
Stock options	2,274	3,114	3,998
Restricted stock units	9,191	7,820	5,940
Potential shares to be issued from ESPP	582	473	475
Total anti-dilutive shares	12,047	11,407	10,413

GEOGRAPHICAL INFORMATION (Tables)

12 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

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



	Revenue for the Years Ended March 31,
	2020		2019		2018
United States	$	350,368	$	304,378	$	266,034
International	95,869		48,208		30,466
Total revenue	$	446,237	$	352,586	$	296,500

Long-lived Assets by Geographic Areas



	Property and Equipment as of March 31,
	2020		2019
United States	$	87,673	$	45,639
International	6,709		7,196
Total property and equipment, net	$	94,382	$	52,835

ACQUISITIONS (Tables)

12 Months Ended

Mar. 31, 2020

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	91,060
Accounts payable	(9,548		)
Deferred revenue	(90		)
Total consideration	$	117,130

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

The preliminary value of the acquired intangible assets acquired are as follows (in thousands):



	Fair Value		Useful life (in Years)
Trade and domain names	$	990	0.8
Developed technology	13,830		7
Customer relationships	6,190		7
Total intangible assets	$	21,010

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)

12 Months Ended

Mar. 31, 2020

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Data (Unaudited)

In thousands, except per share data amounts:



	Quarters Ended
	March 31, 2020			Dec. 31, 2019			Sept. 30, 2019			June 30, 2019			March 31, 2019			Dec. 31, 2018			Sept. 30, 2018			June 30, 2018
Total revenues	$	121,478		$	118,567		109,517			$	96,675		$	93,767		$	89,912		$	85,682		$	83,225
Gross profit	63,857			62,348			59,820			58,984			59,174			56,962			54,083			52,395
Loss from operations	(46,154		)	(43,168		)	(37,944		)	(32,553		)	(27,425		)	(24,238		)	(21,987		)	(15,983		)
Net income (loss)	(50,100		)	(47,071		)	(40,932		)	(34,265		)	(28,131		)	(23,771		)	(21,482		)	(15,355		)
Net income (loss) per share:
Basic and diluted	$	(0.49	)	$	(0.47	)	$	(0.42	)	$	(0.36	)	$	(0.29	)	$	(0.25	)	$	(0.23	)	$	(0.16	)

THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ in Thousands	12 Months Ended
	Mar. 31, 2020 USD ($) reporting_unit	Mar. 31, 2019 USD ($) reporting_unit	Mar. 31, 2018 USD ($)	Jul. 03, 2019	Apr. 01, 2019 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Capitalized contract cost, amortization period	5 years
Term of contract			132 months	132 months
Renewal term				12 months
Number of reporting units \| reporting_unit	1	3
Advertising expense	$ 32,200	$ 25,000	$ 14,500
Operating lease, right-of-use assets	78,963
Present value of lease liabilities	$ 98,327
Share-based Compensation Award, Tranche One \| Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	33.33%
Vesting period	1 year
Share-based Compensation Award, Tranche One \| Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	50.00%	50.00%	50.00%
Share-based Compensation Award, Tranche Two \| Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	2 years
Share-based Compensation Award, Tranche Two \| Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	50.00%	50.00%	50.00%
Percentage increase (decrease) in shares earned per 1% change in total shareholder returns	2.00%	2.00%	2.00%
Minimum percentage of common stock performance	(30.00%)	(30.00%)	(30.00%)
Maximum percentage of number of shares issued per tranche	200.00%	200.00%	200.00%
Equipment
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Property, plant and equipment, useful life	3 years
Software and Software Development Costs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Property, plant and equipment, useful life	3 years
Furniture and fixtures
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Property, plant and equipment, useful life	5 years
Computer Software, Intangible Asset
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Finite-lived intangible asset, useful life	3 years
Accounting Standards Update 2016-02
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Operating lease, right-of-use assets					$ 20,000
Present value of lease liabilities					$ 21,400
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term of contract	1 year
Renewal term	12 months
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term of contract	10 years
Renewal term	5 years

REVENUE RECOGNITION - Narrative (Details) $ in Millions	12 Months Ended
REVENUE RECOGNITION - Narrative (Details) $ in Millions	Mar. 31, 2020 USD ($)
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract with customer, liability, revenue recognized	$ 3.0
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	5 years

REVENUE RECOGNITION - Contract Balances (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
Accounts receivable, net	$ 37,811	$ 20,181
Contract assets, current	10,425	5,717
Contract assets, non-current	13,698	0
Deferred revenue, current	7,105	3,336
Deferred revenue, non-current	$ 1,119	$ 6

REVENUE RECOGNITION - Changes in Contract Balances (Details) - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
Contract assets	$ 24,123	$ 5,717
Change in contract assets	18,406
Deferred revenue	8,224	$ 3,342
Change in deferred revenue	$ 4,882

REVENUE RECOGNITION - Remaining Performance Obligation (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 $ in Millions	Mar. 31, 2020 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 270.0
Revenue, remaining performance obligation, expected timing of satisfaction, period	36 months

FAIR VALUE MEASUREMENTS - Cash, Cash Equivalents and Investments with Hierarchy (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 137,394	$ 276,583	$ 31,703
Accumulated gross unrealized gain, before tax	154	77
Accumulated gross unrealized loss, before tax	(341)	(61)
Cash, cash equivalents and debt securities available-for-sale, amortized cost	187,122	346,466
Cash, cash equivalents and debt securities available-for-sale	186,935	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 disclosure		276,583
Accumulated gross unrealized gain, before tax	116
Cash, cash equivalents and debt securities available-for-sale, amortized cost	137,990
Cash, cash equivalents and debt securities available-for-sale	138,106
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Costs	49,132	69,883
Accumulated gross unrealized gain, before tax	38	77
Accumulated gross unrealized loss, before tax	(341)	(61)
Debt securities, available-for-sale	48,829	69,899
Treasuries \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Costs	6,192
Accumulated gross unrealized gain, before tax	116
Debt securities, available-for-sale	6,308
Commercial paper \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Costs	14,979
Accumulated gross unrealized gain, before tax	6
Accumulated gross unrealized loss, before tax	0
Debt securities, available-for-sale	14,985
Corporate debt \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Costs	34,153	46,516
Accumulated gross unrealized gain, before tax	32	51
Accumulated gross unrealized loss, before tax	(341)	(29)
Debt securities, available-for-sale	33,844	46,538
Municipal securities \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Costs		5,511
Accumulated gross unrealized gain, before tax		17
Accumulated gross unrealized loss, before tax		0
Debt securities, available-for-sale		5,528
Asset backed securities \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Costs		13,596
Accumulated gross unrealized gain, before tax		9
Accumulated gross unrealized loss, before tax		(17)
Debt securities, available-for-sale		13,588
Agency bond \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Costs		4,260
Accumulated gross unrealized gain, before tax		0
Accumulated gross unrealized loss, before tax		(15)
Debt securities, available-for-sale		4,245
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	137,394
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	131,798
Cash and Cash Equivalents \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	5,596
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	5,596
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	33,458
Short-Term Investments \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	33,458	69,899
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	9,389
Short-Term Investments \| Corporate debt \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	24,069	46,538
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		5,528
Short-Term Investments \| Asset backed securities \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale		13,588
Short-Term Investments \| Agency bond \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale		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	16,083
Long-Term Investments \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	6,308
Long-Term Investments \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	9,775
Long-Term Investments \| Treasuries \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	6,308
Long-Term Investments \| Corporate debt \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	9,775
Cash
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	21,002	25,364
Cash and cash equivalents, fair value disclosure	21,002	25,364
Cash \| Cash and Cash Equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	21,002	25,364
Money market funds \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	110,796	251,219
Cash and cash equivalents, fair value disclosure	110,796	251,219
Money market funds \| Cash and Cash Equivalents \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 110,796	$ 251,219

FAIR VALUE MEASUREMENTS - Narrative (Details) $ in Millions	Mar. 31, 2020 USD ($)
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible debt, fair value	$ 309.6

FINANCIAL STATEMENT COMPONENTS - Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Mar. 31, 2019
Property, Plant and Equipment [Line Items]
Gross	$ 168,352	$ 102,231
Less: accumulated depreciation and amortization	(73,970)	(49,396)
Net	94,382	52,835
Computer equipment
Property, Plant and Equipment [Line Items]
Gross	38,105	34,706
Software development costs
Property, Plant and Equipment [Line Items]
Gross	77,635	39,131
Software licenses
Property, Plant and Equipment [Line Items]
Gross	1,569	9,713
Leasehold improvements
Property, Plant and Equipment [Line Items]
Gross	31,706	6,286
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Gross	5,485	2,324
Construction in progress
Property, Plant and Equipment [Line Items]
Gross	$ 13,852	$ 10,071

FINANCIAL STATEMENT COMPONENTS - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2018
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 28.4	$ 18.5	$ 10.7

FINANCIAL STATEMENT COMPONENTS - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Mar. 31, 2019
Property, Plant and Equipment [Abstract]
Prepaid expense	$ 14,489	$ 7,891
Contract assets, current	10,425	5,717
Receivable related to lease assignment	6,853	0
Other current assets	3,912	1,519
Total other current assets	$ 35,679	$ 15,127

FINANCIAL STATEMENT COMPONENTS - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Mar. 31, 2019
Property, Plant and Equipment [Abstract]
Liability related to lease assignment	$ 8,969	$ 0
Acquisition-related holdback cash and shares	18,864	0
Accrued liabilities	9,444	6,790
Total other current liabilities	$ 37,277	$ 6,790

INTANGIBLE ASSETS, GOODWILL AND OTHER ASSETS - Schedule Of Intangibles (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Mar. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 46,324	$ 37,372
Accumulated Amortization	(22,323)	(25,692)
Net Carrying Amount	24,001	11,680
Technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	33,932	25,702
Accumulated Amortization	(16,312)	(15,409)
Net Carrying Amount	17,620	10,293
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	11,409	9,467
Accumulated Amortization	(5,412)	(8,080)
Net Carrying Amount	5,997	1,387
Trade names and domains
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	983	2,108
Accumulated Amortization	(599)	(2,108)
Net Carrying Amount	384	0
In-process research and development
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	0	95
Accumulated Amortization	0	(95)
Net Carrying Amount	$ 0	$ 0

INTANGIBLE ASSETS, GOODWILL AND OTHER ASSETS - Narrative (Details) - USD ($)	12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Amortization of intangibles	$ 8,842,000	$ 6,175,000	$ 5,033,000
Fully amortized intangible asset written off	11,300,000
Capitalized contract cost, amortization	19,500,000	14,200,000
Capitalized contract cost, impairment loss	$ 0	$ 0
Technology
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, remaining amortization period	4 years 10 months 24 days
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, remaining amortization period	5 years 9 months 18 days
Trade names and domains
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, remaining amortization period	1 month 6 days

INTANGIBLE ASSETS, GOODWILL AND OTHER ASSETS - Schedule Of Future Amortization Of Intangibles (Details) $ in Thousands	Mar. 31, 2020 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2021	$ 6,871
2022	4,708
2023	3,156
2024	2,851
2025 and thereafter	6,415
Total	$ 24,001

INTANGIBLE ASSETS, GOODWILL AND OTHER ASSETS - Changes in Carrying Amount of Goodwill by Location (Details) - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 39,694	$ 40,054
Additions due to acquisitions	91,060	500
Foreign currency translation	(2,454)	(860)
Goodwill, ending balance	$ 128,300	$ 39,694

LEASES - Components of Lease Right-of-Use Assets and Liabilities (Details) $ in Thousands	Mar. 31, 2020 USD ($)
Assets
Operating lease, right-of-use assets	$ 78,963
Liabilities
Operating lease liabilities, current	5,875
Operating lease liabilities, non-current	92,452
Total operating lease liabilities	$ 98,327

LEASES - Narrative (Details) $ in Thousands		12 Months Ended
LEASES - Narrative (Details) $ in Thousands	Jul. 03, 2019 USD ($) ft² term story	Mar. 31, 2020 USD ($)	Mar. 31, 2019 USD ($)	Mar. 31, 2018 ft²
Leases [Abstract]
Operating lease cost		$ 15,000
Variable lease, cost		1,600
Area of real estate property \| ft²	177,815			162,000
Number of building stories \| story	5
Term of contract	132 months			132 months
Number of renewal terms \| term	2
Base rent	$ 700
Renewal term	12 months
Annual percentage increase in base rent	3.00%
Tenant improvements	$ 15,400
Security deposit	2,000
Increase in operating lease right-of-use asset	56,800
Increase in operating lease liability	$ 56,100
Liability related to lease assignment		8,969	$ 0
Termination fee		800
Receivable related to lease assignment		$ 6,853	$ 0

LEASES - Supplemental Information (Details) $ in Thousands	12 Months Ended
LEASES - Supplemental Information (Details) $ in Thousands	Mar. 31, 2020 USD ($)
Leases [Abstract]
Weighted average remaining lease term	8 years 10 months 24 days
Weighted average discount rate	4.00%
Operating cash flow from operating leases	$ 9,856

LEASES - Maturity of Lease Liabilities (Details) $ in Thousands	Mar. 31, 2020 USD ($)
Leases [Abstract]
2021	$ 9,765
2022	16,270
2023	15,237
2024	11,722
2025	11,386
Thereafter	58,078
Total lease payments	122,458
Less: imputed interest	(21,522)
Less: lease incentives receivable	(2,609)
Present value of lease liabilities	$ 98,327

COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2020	Mar. 31, 2019
State and Local Taxes and Surcharges
Lessee, Lease, Description [Line Items]
Accrued contingent indirect tax liabilities	$ 4.5	$ 8.0
Third-Party Customer Support Commitments
Lessee, Lease, Description [Line Items]
Other commitment	$ 4.2

CONVERTIBLE SENIOR NOTES AND CAPPED CALL - Narrative (Details) $ / shares in Units, shares in Millions	1 Months Ended		12 Months Ended
	Nov. 30, 2019 USD ($)	Feb. 28, 2019 USD ($) day $ / shares shares	Mar. 31, 2020 USD ($) $ / shares	Dec. 01, 2019 USD ($)	Mar. 31, 2019 USD ($) $ / shares
Debt Instrument [Line Items]
Common stock, par value per share (in dollars per share) \| $ / shares			$ 0.001		$ 0.001
Debt issuance costs, net		$ 600,000
Convertible Debt \| Convertible Senior Notes
Debt Instrument [Line Items]
Debt instrument, face value		$ 287,500,000	$ 362,500,000		$ 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) \| $ / shares		$ 0.001
Debt instrument, convertible, conversion price (in dollars per share) \| $ / shares		$ 25.68
Debt instrument, convertible, threshold trading days \| day		20
Debt instrument, convertible, threshold consecutive trading days \| day		30
Debt instrument, convertible, threshold percentage of stock price trigger		130.00%
Debt instrument, convertible, measurement period \| day		5
Debt instrument, convertible, threshold consecutive trading days preceding measurement period \| day		10
Debt instrument, threshold percentage of sales price per share		98.00%
Debt instrument, redemption price, percentage		100.00%
Debt instrument, strike price per share (in dollars per share) \| $ / shares		$ 25.68
Debt instrument, initial cap price per share (in dollars per share) \| $ / shares		$ 39.50
Convertible Debt \| Additional Notes
Debt Instrument [Line Items]
Debt instrument, face value	$ 75,000,000
Debt instrument, interest rate	0.50%
Proceeds from issuance of debt	$ 64,600,000
Conversion option		$ 12,400,000
Debt instrument, effective interest rate		5.30%
Payments for capped call transactions		$ 9,300,000	9,288,000
Convertible Debt \| Initial Notes
Debt Instrument [Line Items]
Debt instrument, face value		$ 287,500,000
Debt instrument, interest rate		0.50%
Conversion option		$ 64,900,000
Debt instrument, effective interest rate		6.50%
Payments for capped call transactions		$ 33,700,000	$ 33,724,000
Convertible Debt \| Aggregate Notes
Debt Instrument [Line Items]
Debt instrument, face value				$ 362,500,000
Call Option \| Convertible Debt \| Convertible Senior Notes
Debt Instrument [Line Items]
Option indexed to issuer's equity, indexed shares (in shares) \| shares		14.1

CONVERTIBLE SENIOR NOTES AND CAPPED CALL - Carrying Amount of the Liability Component (Details) - Convertible Debt - Convertible Senior Notes - USD ($)	Mar. 31, 2020	Mar. 31, 2019	Feb. 28, 2019
Debt Instrument [Line Items]
Principal	$ 362,500,000	$ 287,500,000	$ 287,500,000
Unamortized debt discount	(69,987,000)	(70,876,000)
Unamortized issuance costs	(976,000)	(589,000)
Net carrying amount	$ 291,537,000	$ 216,035,000

CONVERTIBLE SENIOR NOTES AND CAPPED CALL - Interest Expense (Details) - Convertible Debt - Convertible Senior Notes - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Debt Instrument [Line Items]
Contractual interest expense	$ 1,572	$ 156
Amortization of debt discount	13,901	1,343
Amortization of issuance costs	145	11
Total interest expense	$ 15,618	$ 1,510

CONVERTIBLE SENIOR NOTES AND CAPPED CALL - Net Impact to Stockholders' Equity (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Feb. 28, 2019	Mar. 31, 2020	Mar. 31, 2019
Debt Instrument [Line Items]
Total		$ 3,094	$ 31,128
Convertible Debt \| Additional Notes
Debt Instrument [Line Items]
Conversion option		12,810
Payments for capped call transactions	$ (9,300)	(9,288)
Issuance costs		(428)
Total		3,094
Convertible Debt \| Initial Notes
Debt Instrument [Line Items]
Conversion option		66,700
Payments for capped call transactions	$ (33,700)	(33,724)
Issuance costs		(1,848)
Total		$ 31,128

STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($)				1 Months Ended			12 Months Ended
STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($)	Sep. 18, 2006	Jan. 01, 2005	Dec. 31, 2004	Aug. 31, 2017	May 31, 2017	May 31, 2006	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2018	Aug. 31, 2020	Aug. 31, 2019	Aug. 31, 2018	Jun. 30, 2018	Oct. 31, 2017	Aug. 31, 2016	Jul. 31, 2015	Nov. 30, 2014	Aug. 31, 2014	Sep. 30, 2013	Jun. 30, 2012	Jun. 30, 1996
2017 Repurchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock repurchase program, authorized amount					$ 25,000,000.0
Stock repurchase program, remaining authorized repurchase amount							$ 7,100,000
2006 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares reserved for future issuance (in shares)						7,000,000
Vesting period							4 years
Expiration period							10 years
Number of shares available for future grant (in shares)							0
2012 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares reserved for future issuance (in shares)																				4,100,000
Expiration period							10 years
Number of shares available for future grant (in shares)							17,700,000
Number of additional shares reserved for future issuance (in shares)											12,000,000	16,300,000			4,500,000			6,800,000
2013 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares reserved for future issuance (in shares)																			1,000,000
Vesting period							4 years
Expiration period							10 years
Number of shares available for future grant (in shares)							0
Number of additional shares reserved for future issuance (in shares)																1,200,000	1,200,000
2017 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares reserved for future issuance (in shares)														1,000,000
Vesting period							3 years
Expiration period							10 years
Number of shares available for future grant (in shares)							500,000
Number of additional shares reserved for future issuance (in shares)													1,500,000
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total intrinsic value of options exercised							$ 10,100,000	$ 10,000,000.0	$ 9,000,000.0
Unamortized stock-based compensation expense							$ 122,100,000
Weighted average period of recognition for unrecognized compensation expense							1 year 10 months 24 days
Employee Stock \| Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares reserved for future issuance (in shares)							500,000														500,000
Unamortized stock-based compensation expense							$ 1,100,000
Weighted average period of recognition for unrecognized compensation expense							6 months
Term of extension	10 years			10 years	10 years	10 years
Value of shares issued under employee stock purchase plan							$ 600,000	$ 500,000	$ 400,000
Percentage of market value price of common stock under Employee Stock Purchase Plan							85.00%
Duration of offering period		1 year	2 years
Duration of purchase period		6 months
Maximum contribution percentage amount of employee's base compensation							10.00%
Minimum \| Restricted Stock Units (RSUs) \| 2012 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period							3 years
Maximum \| Restricted Stock Units (RSUs) \| 2012 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period							4 years
Forecast \| Employee Stock \| Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum contribution percentage amount of employee's base compensation										20.00%

STOCKHOLDERS' EQUITY - Stock-Based Compensation Expense By Statement Of Operations (Details) - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based employee compensation expense	$ 70,878	$ 44,508	$ 29,176
Research and Development Expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based employee compensation expense	19,712	12,313	6,625
Selling and Marketing Expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based employee compensation expense	20,205	11,951	6,630
General and Administrative Expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based employee compensation expense	22,580	14,717	11,944
Service \| Cost of Sales
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based employee compensation expense	5,330	3,752	2,636
Other revenue \| Cost of Sales
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based employee compensation expense	$ 3,051	$ 1,775	$ 1,341

STOCKHOLDERS' EQUITY - Option Activity (Details) - $ / shares	12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2018
Number of Shares
Outstanding, beginning balance (in shares)	3,114,071	3,998,285	4,462,412
Granted (in shares)	0	236,799	609,135
Exercised (in shares)	(785,281)	(759,884)	(773,897)
Canceled/forfeited (in shares)	(54,527)	(361,129)	(299,365)
Outstanding, ending balance (in shares)	2,274,263	3,114,071	3,998,285
Vested and expected to vest, end of period (in shares)	2,255,616
Exercisable, end of period (in shares)	2,115,696
Weighted Average Exercise Price Per Share
Outstanding, beginning balance (in dollars per share)	$ 9.45	$ 8.93	$ 7.52
Granted (in dollars per share)	0	21.65	14.95
Exercised (in dollars per share)	8.77	7.70	3.95
Canceled/Forfeited (in dollars per share)	17.01	15.41	13.05
Outstanding, ending balance (in dollars per share)	9.50	$ 9.45	$ 8.93
Vested and expected to vest, ending balance (in dollars per share)	9.42
Exercisable, end of period (in dollars per share)

STOCKHOLDERS' EQUITY - Stock Purchase Right and Restricted Stock Unit Activity (Details) - $ / shares	12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2017
Stock Purchase Right
Number of Shares
Beginning balance (in shares)	0	4,975	11,370
Granted (in shares)		0	0
Vested and released (in shares)		(4,625)	(6,395)
Forfeited (in shares)		(350)	0
Ending balance (in shares)		0	4,975	11,370
Weighted Average Grant Date Fair Value
Beginning balance (in dollars per share)	$ 0	$ 8.10	$ 8.10
Granted (in dollars per share)		0	0
Vested and released (in dollars per share)		7.88	8.26
Forfeited (in dollars per share)		7.88	0
Ending balance (in dollars per share)		$ 0	$ 8.10	$ 8.10
Weighted Average Remaining Contractual Term (in Years)		0 years	1 year 1 month 2 days	1 year 1 month 2 days
Performance Stock Units And Restricted Stock Units
Number of Shares
Beginning balance (in shares)	7,820,488	5,935,543	4,939,050
Granted (in shares)	6,431,505	5,726,787	3,481,870
Vested and released (in shares)	(3,443,335)	(2,399,371)	(1,833,038)
Forfeited (in shares)	(1,617,343)	(1,442,471)	(652,339)
Ending balance (in shares)	9,191,315	7,820,488	5,935,543	4,939,050
Weighted Average Grant Date Fair Value
Beginning balance (in dollars per share)	$ 17.68	$ 13.51	$ 11.57
Granted (in dollars per share)	20.62	19.77	14.41
Vested and released (in dollars per share)	17.02	12.87	10.27
Forfeited (in dollars per share)	19.06	16.85	12.73
Ending balance (in dollars per share)		$ 17.68	$ 13.51	$ 11.57
Weighted Average Remaining Contractual Term (in Years)	1 year 10 months 20 days	1 year 4 months 6 days	1 year 7 months 6 days	1 year 6 months 18 days

STOCKHOLDERS' EQUITY - Assumptions Used In Black-Scholes Model (Details) - $ / shares	12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2018
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	0.00%	41.00%	41.00%
Expected dividend yield	0.00%	0.00%	0.00%
Risk-free interest rate, minimum	0.00%	2.50%	1.80%
Risk-free interest rate, maximum	0.00%	3.00%	2.40%
Weighted average expected term (in years)		4 years 6 months	4 years 9 months 18 days
Weighted average fair value of options granted (in dollars per share)	$ 0	$ 8.19	$ 5.70
Stock Purchase Right
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	32.00%	41.00%	40.00%
Expected dividend yield	0.00%	0.00%	0.00%
Risk-free interest rate	1.79%	2.43%	1.33%
Weighted average expected term (in years)	21 days	24 days	24 days
Weighted average fair value of options granted (in dollars per share)	$ 5.66	$ 5.74	$ 4.10

INCOME TAXES - Narrative (Details) - USD ($)	3 Months Ended	9 Months Ended	12 Months Ended
INCOME TAXES - Narrative (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2017	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2017
Income Tax Contingency [Line Items]
Deferred tax asset adjustment due to change in enacted tax rate	$ 23,000,000		$ 0	$ 0	$ 22,630,000
Provision for income taxes			832,000	569,000	66,294,000
Undistributed earnings (losses) of foreign subsidiaries			9,000,000.0	200,000	(19,700,000)
Deferred tax assets, valuation allowance			115,435,000	65,948,000
Federal tax rate		34.00%
Unrecognized tax benefits			6,115,000	5,033,000	3,980,000	$ 3,331,000
Accrued penalties and interest			0	$ 0	$ 0
Internal Revenue Service (IRS)
Income Tax Contingency [Line Items]
Research tax credit carryforwards			12,900,000
State and Local Jurisdiction
Income Tax Contingency [Line Items]
Operating loss carryforwards			203,700,000
Research tax credit carryforwards			14,100,000
Tax Year 2019 And 2020
Income Tax Contingency [Line Items]
Operating loss carryforwards			280,500,000
Tax Years Prior To 2019
Income Tax Contingency [Line Items]
Operating loss carryforwards			$ 156,300,000

INCOME TAXES - Income Tax Provision (Details) - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2018
Current:
Federal	$ 0	$ 0	$ (395)
State	185	291	256
Foreign	647	278	185
Total current tax provision	832	569	46
Deferred
Federal	0	0	59,837
State	0	0	6,664
Foreign	0	0	(253)
Total deferred tax provision	0	0	66,248
Total income tax provision (benefit)	$ 832	$ 569	$ 66,294

INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Mar. 31, 2019
Deferred tax assets
Net operating loss carryforwards	$ 109,734	$ 61,740
Research and development and other credit carryforwards	19,413	15,573
Stock-based compensation	10,343	9,006
Reserves and allowances	3,974	5,697
Lease liability	24,492
Fixed assets and intangibles	5,314	2,709
Gross deferred tax assets	173,270	94,725
Valuation allowance	(115,435)	(65,948)
Total deferred tax assets	57,835	28,777
Deferred tax liabilities
Deferred sales commissions	(21,608)	(12,221)
Convertible debt	(16,626)	(16,556)
Lease asset	(19,601)
Net deferred taxes	$ 0	$ 0

INCOME TAXES - Reconciliation of Taxes Provided to Federal Statutory Rate (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2017	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Tax benefit at statutory rate		$ (36,163)	$ (18,441)	$ (11,790)
State income taxes before valuation allowance, net of federal effect		(7,680)	(3,612)	(1,042)
Foreign tax rate differential		(1,422)	71	(1,188)
Research and development credits		(3,892)	(3,744)	(2,189)
Change in valuation allowance		51,741	30,558	56,663
Compensation/option differences		(6,584)	(7,277)	(4,965)
Non-deductible compensation		3,017	1,200	1,132
Tax Act rate change impact	$ 23,000	0	0	22,630
Foreign loss not benefited		107	159	6,847
Other		1,708	1,655	196
Total income tax provision (benefit)		$ 832	$ 569	$ 66,294

INCOME TAXES - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2018
Reconciliation of Unrecognized Tax Benefits [Roll Forward]
Balance at beginning of year	$ 5,033	$ 3,980	$ 3,331
Gross increases - tax position in prior period	0	17	0
Gross increases - tax position related to the current year	1,082	1,036	649
Balance at end of year	$ 6,115	$ 5,033	$ 3,980

NET LOSS PER SHARE - Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2018
Numerator:
Net loss available to common stockholders	$ (50,100)	$ (47,071)	$ (40,932)	$ (34,265)	$ (28,131)	$ (23,771)	$ (21,482)	$ (15,355)	$ (172,368)	$ (88,739)	$ (104,497)
Denominator:
Denominator for basic and diluted calculation (in shares)									99,999	94,533	92,017
Net loss per share - basic and diluted (in dollars per share)	$ (0.49)	$ (0.47)	$ (0.42)	$ (0.36)	$ (0.29)	$ (0.25)	$ (0.23)	$ (0.16)	$ (1.72)	$ (0.94)	$ (1.14)

- 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 - Schedule of Antidilutive Awards (Details) - shares shares in Thousands	12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares	12,047	11,407	10,413
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares	2,274	3,114	3,998
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares	9,191	7,820	5,940
Potential shares to be issued from ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares	582	473	475

GEOGRAPHICAL INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
GEOGRAPHICAL INFORMATION (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2018
Segment Reporting Information [Line Items]
Revenue	$ 121,478	$ 118,567	$ 109,517	$ 96,675	$ 93,767	$ 89,912	$ 85,682	$ 83,225	$ 446,237	$ 352,586	$ 296,500
Property and equipment, net	94,382				52,835				94,382	52,835
United States
Segment Reporting Information [Line Items]
Revenue									350,368	304,378	266,034
Property and equipment, net	87,673				45,639				87,673	45,639
International
Segment Reporting Information [Line Items]
Revenue									95,869	48,208	$ 30,466
Property and equipment, net	$ 6,709				$ 7,196				$ 6,709	$ 7,196

ACQUISITIONS - Narrative (Details) - USD ($) $ in Millions				12 Months Ended
ACQUISITIONS - Narrative (Details) - USD ($) $ in Millions	Jul. 17, 2019	Oct. 29, 2018	Apr. 12, 2018	Mar. 31, 2020
Wavecell Pte. Ltd.
Business Acquisition [Line Items]
Business combination, consideration transferred	$ 117.1
Payments to acquire businesses, gross	72.8
Business combination, consideration transferred, equity interests issued and issuable	$ 44.3
Vesting period	3 years
Business combination, acquisition related costs				$ 1.8
Unamortized stock-based compensation expense				$ 15.1
Weighted average period of recognition for unrecognized compensation expense				2 years 3 months 18 days
Developed technology \| MarianaIQ
Business Acquisition [Line Items]
Useful life (in Years)			2 years
Finite-lived intangible assets, remaining amortization period			2 years
Developed technology \| Jitsi
Business Acquisition [Line Items]
Useful life (in Years)		2 years
Finite-lived intangible assets, remaining amortization period		2 years
Developed technology \| Wavecell Pte. Ltd.
Business Acquisition [Line Items]
Useful life (in Years)	7 years
Restricted Cash, Current And Other Accrued Liabilities \| Wavecell Pte. Ltd.
Business Acquisition [Line Items]
Business combination, indemnification assets, cash held back	$ 10.4
Other Accrued Liabilities, Current \| Wavecell Pte. Ltd.
Business Acquisition [Line Items]
Business combination, indemnification assets, equity held back	8.5
Time-Based Restricted Stock Awards \| Wavecell Pte. Ltd.
Business Acquisition [Line Items]
Business combination, consideration transferred, equity interests issued and issuable	13.2
Performance-Based Restricted Stock Awards \| Wavecell Pte. Ltd.
Business Acquisition [Line Items]
Business combination, consideration transferred, equity interests issued and issuable	$ 6.6

ACQUISITIONS - Allocation of the Fair Value of Purchase Consideration (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Jul. 17, 2019	Mar. 31, 2019	Mar. 31, 2018
Business Acquisition [Line Items]
Goodwill	$ 128,300		$ 39,694	$ 40,054
Wavecell Pte. Ltd.
Business Acquisition [Line Items]
Cash		$ 4,473
Accounts receivable		9,438
Intangible assets		21,010
Other assets		787
Goodwill		91,060
Accounts payable		(9,548)
Deferred revenue		(90)
Total consideration		$ 117,130

ACQUISITIONS - 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)	9 months 18 days
Developed technology
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

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2018
Quarterly Financial Information Disclosure [Abstract]
Total revenue	$ 121,478	$ 118,567	$ 109,517	$ 96,675	$ 93,767	$ 89,912	$ 85,682	$ 83,225	$ 446,237	$ 352,586	$ 296,500
Gross profit	63,857	62,348	59,820	58,984	59,174	56,962	54,083	52,395
Loss from operations	(46,154)	(43,168)	(37,944)	(32,553)	(27,425)	(24,238)	(21,987)	(15,983)	(159,819)	(89,633)	(41,896)
Net income (loss)	$ (50,100)	$ (47,071)	$ (40,932)	$ (34,265)	$ (28,131)	$ (23,771)	$ (21,482)	$ (15,355)	$ (172,368)	$ (88,739)	$ (104,497)
Net income (loss) per share:
Basic and diluted (in dollars per share)	$ (0.49)	$ (0.47)	$ (0.42)	$ (0.36)	$ (0.29)	$ (0.25)	$ (0.23)	$ (0.16)	$ (1.72)	$ (0.94)	$ (1.14)

- Definition

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

+ References + Details

SCHEDULE II (Details) - Total Allowance for Doubtful Accounts - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2018
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Year	$ 864	$ 904	$ 954
Additions Charged to Expenses	3,067	1,115	250
Deductions	(825)	(1,155)	(300)
Balance at End of Year	$ 3,106	$ 864	$ 904

Label	Element	Value
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 17,643,000
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	39,901,000
Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	17,643,000
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 39,901,000