FORM |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification Number) |
(Address of principal executive offices) |
(Registrant's telephone number, including area code) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Large accelerated filer | ☐ | ☒ | ||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
Page | |||||
June 30, 2024 | March 31, 2024 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Short-term investments | |||||||||||
Accounts receivable, net | |||||||||||
Deferred sales commission costs | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Operating lease, right-of-use assets | |||||||||||
Intangible assets, net | |||||||||||
Goodwill | |||||||||||
Restricted cash, non-current | |||||||||||
Deferred sales commission costs, non-current | |||||||||||
Other assets, non-current | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued and other liabilities | |||||||||||
Operating lease liabilities | |||||||||||
Deferred revenue | |||||||||||
Total current liabilities | |||||||||||
Operating lease liabilities, non-current | |||||||||||
Deferred revenue, non-current | |||||||||||
Convertible senior notes, non-current | |||||||||||
Term loan | |||||||||||
Other liabilities, non-current | |||||||||||
Total liabilities | |||||||||||
Stockholders' equity: | |||||||||||
Preferred stock: $ | |||||||||||
Common stock: $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Accumulated deficit | ( | ( | |||||||||
Total stockholders' equity | |||||||||||
Total liabilities and stockholders' equity | $ | $ |
Three Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
Service revenue | $ | $ | |||||||||
Other revenue | |||||||||||
Total revenue | |||||||||||
Cost of service revenue | |||||||||||
Cost of other revenue | |||||||||||
Total cost of revenue | |||||||||||
Gross profit | |||||||||||
Operating expenses: | |||||||||||
Research and development | |||||||||||
Sales and marketing | |||||||||||
General and administrative | |||||||||||
Total operating expenses | |||||||||||
Loss from operations | ( | ( | |||||||||
Other expense, net | ( | ( | |||||||||
Loss before provision for income taxes | ( | ( | |||||||||
Provision for income taxes | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Net loss per share: | |||||||||||
Basic and diluted | $ | ( | $ | ( | |||||||
Weighted average number of shares: | |||||||||||
Basic and diluted |
Three Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
Interest expense | $ | ( | $ | ( | |||||||
Amortization of debt discount and issuance costs | ( | ( | |||||||||
Gain (loss) on warrants remeasurement | ( | ||||||||||
Loss on debt extinguishment | ( | ||||||||||
Loss on foreign exchange | ( | ( | |||||||||
Other income | |||||||||||
Other expenses, net | $ | ( | $ | ( |
Three Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
Net loss | $ | ( | $ | ( | |||||||
Other comprehensive income (loss), net of tax | |||||||||||
Unrealized gain (loss) on investments in securities | ( | ||||||||||
Foreign currency translation adjustment | ( | ||||||||||
Comprehensive loss | $ | ( | $ | ( |
Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total | |||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||
Balance at March 31, 2024 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Issuance of common stock under stock plans, less withholding | ( | — | — | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Unrealized investment loss | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Balance at June 30, 2024 | $ | $ | $ | ( | $ | ( | $ |
Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total | |||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Issuance of common stock under stock plans, less withholding | ( | — | — | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Issuance of common stock under stock plans, less withholding, related to Fuze Acquisition | ( | — | — | ||||||||||||||||||||||||||||||||
Unrealized investment gain | — | — | — | — | |||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | |||||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Three Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
Depreciation | |||||||||||
Amortization of intangible assets | |||||||||||
Amortization of capitalized internal-use software costs | |||||||||||
Amortization of debt discount and issuance costs | |||||||||||
Amortization of deferred sales commission costs | |||||||||||
Allowance for credit losses | |||||||||||
Operating lease expense, net of accretion | |||||||||||
Stock-based compensation expense | |||||||||||
Loss on debt extinguishment | |||||||||||
(Gain) loss on remeasurement of warrants | ( | ||||||||||
Other | ( | ||||||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable, net | ( | ( | |||||||||
Deferred sales commission costs | ( | ( | |||||||||
Other current and non-current assets | ( | ||||||||||
Accounts payable and accruals | ( | ( | |||||||||
Deferred revenue | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property and equipment | ( | ( | |||||||||
Capitalized internal-use software costs | ( | ( | |||||||||
Purchase of investments | ( | ||||||||||
Purchase of cost investment | ( | ||||||||||
Maturities of investments | |||||||||||
Net cash (used in) provided by investing activities | ( | ||||||||||
Cash flows from financing activities: | |||||||||||
Repayment of principal on term loan | ( | ||||||||||
Other financing activities | ( | ||||||||||
Net cash used in financing activities | ( | ( | |||||||||
Effect of exchange rate changes on cash | ( | ||||||||||
Net increase in cash and cash equivalents | |||||||||||
Cash, cash equivalents and restricted cash, beginning of year | |||||||||||
Cash, cash equivalents and restricted cash, end of year | $ | $ |
Three Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
Interest paid | $ | $ | |||||||||
Income taxes paid | $ | $ | |||||||||
Payables and accruals for property and equipment | $ | $ |
June 30, 2024 | June 30, 2023 | ||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Restricted cash, non-current | |||||||||||
Total cash, cash equivalents and restricted cash | $ | $ |
June 30, 2024 | March 31, 2024 | ||||||||||
Contract assets, current (component of Other current assets) | $ | $ | |||||||||
Contract assets, non-current (component of Other assets) | |||||||||||
Deferred revenue, current | |||||||||||
Deferred revenue, non-current |
As of June 30, 2024 | Amortized Costs | Gross Unrealized Gain | Gross Unrealized Loss | Estimated Fair Value | Cash and Cash Equivalents | Restricted Cash (Current) | Short-Term Investments | |||||||||||||||||||||||||||||||||||||
Cash | $ | $ | — | $ | — | $ | $ | $ | $ | — | ||||||||||||||||||||||||||||||||||
Level 1: | ||||||||||||||||||||||||||||||||||||||||||||
Money market funds | ||||||||||||||||||||||||||||||||||||||||||||
Subtotal | ||||||||||||||||||||||||||||||||||||||||||||
Level 2: | ||||||||||||||||||||||||||||||||||||||||||||
Term deposit | ||||||||||||||||||||||||||||||||||||||||||||
Subtotal | ||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | $ | $ | $ |
As of March 31, 2024 | Amortized Costs | Gross Unrealized Gain | Gross Unrealized Loss | Estimated Fair Value | Cash and Cash Equivalents | Restricted Cash (Current & Non-current) | Short-Term Investments | |||||||||||||||||||||||||||||||||||||
Cash | $ | $ | — | $ | — | $ | $ | $ | $ | — | ||||||||||||||||||||||||||||||||||
Level 1: | ||||||||||||||||||||||||||||||||||||||||||||
Money market funds | ||||||||||||||||||||||||||||||||||||||||||||
Subtotal | ||||||||||||||||||||||||||||||||||||||||||||
Level 2: | ||||||||||||||||||||||||||||||||||||||||||||
Term deposit | ||||||||||||||||||||||||||||||||||||||||||||
Commercial paper | ( | |||||||||||||||||||||||||||||||||||||||||||
Subtotal | ( | |||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | $ | $ | ( | $ | $ | $ | $ |
June 30, 2024 | March 31, 2024 | ||||||||||
Estimated fair value of detachable warrants | $ | $ | |||||||||
Unobservable inputs: | |||||||||||
Stock volatility | % | % | |||||||||
Risk-free rate | % | % | |||||||||
Expected term |
June 30, 2024 | March 31, 2024 | ||||||||||
Trade accounts receivable | $ | $ | |||||||||
Unbilled trade accounts receivable | |||||||||||
Less: allowance for credit losses | ( | ( | |||||||||
Less: allowance for sales reserves | ( | ( | |||||||||
Total accounts receivable, net | $ | $ |
Three Months Ended June 30, 2024 | Year Ended March 31, 2024 | ||||||||||||||||||||||
Credit Losses | Sales Reserves | Credit Losses | Sales Reserves | ||||||||||||||||||||
Beginning balance | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Release (reserve) | ( | ( | ( | ||||||||||||||||||||
Write-offs | |||||||||||||||||||||||
Ending balance | $ | ( | $ | ( | $ | ( | $ | ( |
June 30, 2024 | March 31, 2024 | ||||||||||
Prepaid expense | $ | $ | |||||||||
Contract assets, current | |||||||||||
Other current assets | |||||||||||
Total other current assets | $ | $ |
June 30, 2024 | March 31, 2024 | ||||||||||
Accrued compensation | $ | $ | |||||||||
Accrued taxes | |||||||||||
Other accrued liabilities | |||||||||||
Total accrued and other liabilities | $ | $ |
June 30, 2024 | March 31, 2024 | ||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||||||||||
Developed technology | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Customer relationships | ( | ( | |||||||||||||||||||||||||||||||||
Trade names and domains | ( | ( | |||||||||||||||||||||||||||||||||
Total acquired identifiable intangible assets | $ | $ | ( | $ | $ | $ | ( | $ |
Remainder of 2025 | $ | ||||
2026 | |||||
2027 | |||||
2028 | |||||
2029 and thereafter | |||||
Total | $ |
Balance as of March 31, 2024 | $ | ||||
Foreign currency translation | ( | ||||
Balance as of June 30, 2024 | $ |
Three Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
Operating lease expense | $ | $ | |||||||||
Variable lease expense | $ | $ |
June 30, 2024 | June 30, 2023 | ||||||||||
Cash outflows from operating leases | $ | $ | |||||||||
Right-of-use assets obtained in exchange for operating lease obligations | $ | $ |
June 30, 2024 | March 31, 2024 | ||||||||||
Weighted average remaining lease term | |||||||||||
Weighted average discount rate |
Remainder of 2025 | $ | ||||
2026 | |||||
2027 | |||||
2028 | |||||
2029 | |||||
Thereafter | |||||
Total lease payments | |||||
Less: imputed interest | ( | ||||
Present value of lease liabilities | $ |
June 30, 2024 | March 31, 2024 | ||||||||||
Principal | $ | $ | |||||||||
Unamortized debt discount and issuance costs | ( | ( | |||||||||
Net carrying amount | $ | $ |
Three Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
Contractual interest expense | $ | $ | |||||||||
Amortization of debt discount and issuance costs | |||||||||||
Total interest expense | $ | $ |
June 30, 2024 | March 31, 2024 | ||||||||||
Principal | $ | $ | |||||||||
Unamortized debt discount and issuance costs | ( | ( | |||||||||
Net carrying amount | $ | $ |
Three Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
Contractual interest expense | $ | $ | |||||||||
Amortization of debt discount and issuance costs | |||||||||||
Total interest expense | $ | $ |
Three Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
Cost of service revenue | $ | $ | |||||||||
Cost of other revenue | |||||||||||
Research and development | |||||||||||
Sales and marketing | |||||||||||
General and administrative | |||||||||||
Total | $ | $ |
Number of Shares | Weighted Average Grant Date Fair Value | Weighted Average Remaining Contractual Term (in Years) | |||||||||||||||
Balance as of March 31, 2024 | $ | ||||||||||||||||
Granted | |||||||||||||||||
Vested and released | ( | ||||||||||||||||
Forfeited | ( | ||||||||||||||||
Balance as of June 30, 2024 | $ |
Number of Shares | Weighted Average Grant Date Fair Value | Weighted Average Remaining Contractual Term (in Years) | |||||||||||||||
Balance as of March 31, 2024 | $ | ||||||||||||||||
Forfeited | ( | ||||||||||||||||
Balance as of June 30, 2024 | $ |
Three Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
Net loss | $ | ( | $ | ( | |||||||
Weighted average common shares outstanding - basic and diluted | |||||||||||
Net loss per share - basic and diluted | $ | ( | $ | ( |
Three Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
Stock options | |||||||||||
Restricted stock units and Performance stock units | |||||||||||
Potential shares attributable to the ESPP | |||||||||||
Total anti-dilutive shares |
Three Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
United States | $ | $ | |||||||||
United Kingdom | |||||||||||
Other International | |||||||||||
Total revenue | $ | $ |
June 30, 2024 | March 31, 2024 | ||||||||||
United States | $ | $ | |||||||||
International | |||||||||||
Total property and equipment, net | $ | $ |
Fiscal Year 2025 | Fiscal Year 2024 | ||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||
(In thousands, except percentages) | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | ||||||||||||||||||||||||
Service revenue | $ | 172,801 | $ | 172,490 | $ | 175,069 | $ | 177,782 | $ | 175,238 | |||||||||||||||||||
% of Total Revenue | 97.0 | % | 96.1 | % | 96.7 | % | 96.1 | % | 95.6 | % | |||||||||||||||||||
Gross profit | $ | 120,960 | $ | 122,444 | $ | 124,846 | $ | 127,897 | $ | 128,613 | |||||||||||||||||||
% of Total Revenue | 67.9 | % | 68.2 | % | 69.0 | % | 69.1 | % | 70.2 | % | |||||||||||||||||||
Loss from operations | $ | (1,374) | $ | (14,219) | $ | (9,391) | $ | (2,583) | $ | (1,410) | |||||||||||||||||||
% of Total Revenue | (0.8) | % | (7.9) | % | (5.2) | % | (1.4) | % | (0.8) | % | |||||||||||||||||||
Net loss | $ | (10,290) | $ | (23,591) | $ | (21,222) | $ | (7,452) | $ | (15,327) | |||||||||||||||||||
% of Total Revenue | (5.8) | % | (13.1) | % | (11.7) | % | (4.0) | % | (8.4) | % | |||||||||||||||||||
Net cash provided by operating activities | $ | 18,148 | $ | 12,653 | $ | 22,396 | $ | 17,463 | $ | 26,473 |
Three Months Ended June 30, | |||||||||||||||||||||||
(In thousands, except percentages) | 2024 | 2023 | Change | ||||||||||||||||||||
Service revenue | $ | 172,801 | $ | 175,238 | $ | (2,437) | (1.4) | % | |||||||||||||||
Percentage of total revenue | 97.0 | % | 95.6 | % |
Three Months Ended June 30, | |||||||||||||||||||||||
(In thousands, except percentages) | 2024 | 2023 | Change | ||||||||||||||||||||
Other revenue | $ | 5,346 | $ | 8,049 | $ | (2,703) | (33.6) | % | |||||||||||||||
Percentage of total revenue | 3.0 | % | 4.4 | % |
Three Months Ended June 30, | |||||||||||||||||||||||
(In thousands, except percentages) | 2024 | 2023 | Change | ||||||||||||||||||||
Cost of service revenue | $ | 49,496 | $ | 46,276 | $ | 3,220 | 7.0 | % | |||||||||||||||
Percentage of service revenue | 28.6 | % | 26.4 | % |
Three Months Ended June 30, | |||||||||||||||||||||||
(In thousands, except percentages) | 2024 | 2023 | Change | ||||||||||||||||||||
Cost of other revenue | $ | 7,691 | $ | 8,398 | $ | (707) | (8.4) | % | |||||||||||||||
Percentage of other revenue | 143.9 | % | 104.3 | % |
Three Months Ended June 30, | |||||||||||||||||||||||
(In thousands, except percentages) | 2024 | 2023 | Change | ||||||||||||||||||||
Research and development | $ | 32,137 | $ | 35,292 | $ | (3,155) | (8.9) | % | |||||||||||||||
Percentage of total revenue | 18.0 | % | 19.3 | % |
Three Months Ended June 30, | |||||||||||||||||||||||
(In thousands, except percentages) | 2024 | 2023 | Change | ||||||||||||||||||||
Sales and marketing | $ | 67,106 | $ | 68,505 | $ | (1,399) | (2.0) | % | |||||||||||||||
Percentage of total revenue | 37.7 | % | 37.4 | % |
Three Months Ended June 30, | |||||||||||||||||||||||
(In thousands, except percentages) | 2024 | 2023 | Change | ||||||||||||||||||||
General and administrative | $ | 23,091 | $ | 26,226 | $ | (3,135) | (12.0) | % | |||||||||||||||
Percentage of total revenue | 13.0 | % | 14.3 | % |
Three Months Ended June 30, | |||||||||||||||||||||||
(In thousands, except percentages) | 2024 | 2023 | Change | ||||||||||||||||||||
Other expense, net | $ | (8,240) | $ | (12,473) | $ | 4,233 | (33.9) | % | |||||||||||||||
Percentage of total revenue | (4.6) | % | (6.8) | % |
Three Months Ended June 30, | |||||||||||||||||||||||
(In thousands, except percentages) | 2024 | 2023 | Change | ||||||||||||||||||||
Provision for income taxes | $ | 676 | $ | 1,444 | $ | (768) | (53.2) | % | |||||||||||||||
Percentage of total revenue | 0.4 | % | 0.8 | % |
(In thousands) | June 30, 2024 | March 31, 2024 | |||||||||
Cash and cash equivalents | $ | 130,764 | $ | 116,262 | |||||||
Restricted cash, current1 | 461 | 356 | |||||||||
Short-term investments | — | 1,048 | |||||||||
Restricted cash, non-current1 | — | 105 | |||||||||
Total | $ | 131,225 | $ | 117,771 |
Three Months Ended June 30, | |||||||||||
(In thousands) | 2024 | 2023 | |||||||||
Net cash provided by operating activities | $ | 18,148 | $ | 26,473 | |||||||
Net cash (used in) provided by investing activities | (3,130) | 6,792 | |||||||||
Net cash used in financing activities | (352) | (25,000) | |||||||||
Effect of exchange rate changes on cash | (164) | 2,218 | |||||||||
Net increase in cash and cash equivalents | $ | 14,502 | $ | 10,483 |
Incorporated by Reference | |||||||||||||||||
Exhibit Number | Exhibit Description | Company Form | Filing Date | Exhibit Number | Filed Herewith | ||||||||||||
3.1 | 8-K | 7/13/2022 | 3.1 | ||||||||||||||
3.2 | 8-K | 7/28/2015 | 3.2 | ||||||||||||||
10.1 | 8-K | 7/15/2024 | 10.1 | ||||||||||||||
31.1 | X | ||||||||||||||||
31.2 | X | ||||||||||||||||
32.1 | X | ||||||||||||||||
32.2 | X | ||||||||||||||||
101 | The following materials from 8x8, Inc.'s Quarterly Report on Form 10-Q for the three months ended June 30, 2024, formatted in Inline XBRL: (i) Condensed Consolidated Balance Sheets as of June 30, 2024 and March 31, 2024, (ii) Condensed Consolidated Statements of Operations for the three months ended June 30, 2024 and 2023, (iii) Condensed Consolidated Statements of Comprehensive Loss for the three months ended June 30, 2024 and 2023, (iv) Condensed Consolidated Statements of Stockholders’ Equity as of June 30, 2024 and 2023, (v) Condensed Consolidated Statements of Cash Flows for the three months ended June 30, 2024 and 2023, and (vi) Notes to Consolidated Financial Statements, tagged as blocks of text and including detailed tags XBRL Instance Document | X |
8x8, Inc. | ||||||||
/s/ Suzy Seandel | ||||||||
Suzy Seandel | ||||||||
Chief Accounting Officer | ||||||||
(Principal Accounting Officer and Duly Authorized Officer) |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Jun. 30, 2024 |
Mar. 31, 2024 |
---|---|---|
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) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 127,962,761 | 125,193,573 |
Common stock, shares outstanding (in shares) | 127,962,761 | 125,193,573 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (10,290) | $ (15,327) |
Other comprehensive income (loss), net of tax | ||
Unrealized gain (loss) on investments in securities | (5) | 290 |
Foreign currency translation adjustment | (354) | 1,441 |
Comprehensive loss | $ (10,649) | $ (13,596) |
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES |
3 Months Ended |
---|---|
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES | 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 trades under the symbol "EGHT" on the Nasdaq Global Select Market. The Company is a leading Software-as-a-Service ("SaaS") provider of contact center, voice, video, chat, and enterprise-class API solutions powered by one global cloud communications platform. 8x8 empowers workforces worldwide by connecting individuals and teams, so they can collaborate faster and work smarter from anywhere. 8x8 provides real-time business analytics and intelligence, giving its customers unique insights across all interactions and channels on its platform, so they can support a distributed and hybrid working model while delighting their end-customers and accelerating their business. A majority of all revenue is generated from communication services subscriptions and platform usage. The Company also generates revenue from sales of hardware and professional services, which are complementary to the delivery of its integrated technology platform. BASIS OF PRESENTATION AND CONSOLIDATION The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. Accordingly, certain information and disclosures normally included in the Company's annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements as of and for the fiscal year ended March 31, 2024 and notes thereto included in the Form 10-K. There were no material changes during the three months ended June 30, 2024 to the Company's significant accounting policies as described in the Form 10-K. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company conducts its operations through one reportable segment. In the opinion of the Company's management, these condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of the Company's financial position, results of operations and cash flows for the periods presented. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for any subsequent quarter or for the entire year ending March 31, 2025. CHANGE IN REPORTING PRESENTATION Historically, cost of revenue and cost of other revenue have been presented within operating expenses. During the fourth quarter of fiscal 2024, the Company made voluntary changes in accounting presentation and reclassified prior period amounts to conform to current year presentation to separately state cost of revenue, cost of other revenue and recognize gross profit on the Company's condensed consolidated statement of operations. USE OF ESTIMATES The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and equity, 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 current expected credit losses, returns reserve for expected cancellations, fair value of and/or potential impairment of goodwill and value and useful life of long-lived assets (including intangible assets, right-of-use assets and cost investments), capitalized internal-use software costs, 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 and warrant 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. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires disclosure of incremental segment information on an annual and interim basis. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and requires retrospective application to all prior periods presented in the financial statements. The Company is currently evaluating the impact that this guidance will have on the presentation of its condensed consolidated financial statements and accompanying notes. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands disclosures in an entity’s income tax rate reconciliation table and disclosures regarding cash taxes paid both in the U.S. and foreign jurisdictions. The update will be effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the impact that this guidance will have on the presentation of its condensed consolidated financial statements and accompanying notes. There have been no other recent accounting pronouncements, changes in accounting pronouncements or recently adopted accounting guidance during the three months ended June 30, 2024 that are of significance or potential significance to us.
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REVENUE RECOGNITION |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUE RECOGNITION | REVENUE RECOGNITION Disaggregation of Revenue Contract Balances The following table provides amounts of contract assets and deferred revenue from contracts with customers (in thousands):
Contract assets are recorded for contract consideration not yet invoiced but for which the performance obligations are completed. Contract assets, net of allowances for credit losses, 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. The allowance applied to our contract assets as of March 31, 2024 and 2023 and the activity in this account, including the current-period provision for expected credit losses for the three months ended June 30, 2024 and 2023, were not material. The change in contract assets was primarily driven by obligations that were completed during the quarter that the Company had not yet been invoiced for. During the three months ended June 30, 2024 and 2023, the Company recognized revenues of approximately $15.5 million and $16.9 million that were included in deferred revenue at the beginning of the fiscal year, respectively. Remaining Performance Obligations The Company's subscription terms typically range from to five years. Contract revenue from the remaining performance obligations that had not yet been recognized as of June 30, 2024 was approximately $780.0 million. This amount excludes contracts with an original expected length of less than one year. The Company expects to recognize revenue on approximately 86% of the remaining performance obligations over the next 24 months and approximately 14% over the remainder of the subscription period. Deferred Sales Commission Costs Amortization of deferred sales commission costs for the three months ended June 30, 2024 and 2023 was approximately $9.8 million and $10.0 million, respectively.
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FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Cash, cash equivalents, and available-for-sale investments were as follows (in thousands):
To support its current operations, the Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.The restricted cash component of the money market funds is comprised of letters of credit securing leases for certain office facilities. The Company uses the Black-Scholes option-pricing valuation model to value its detachable warrants from inception and at each reporting period. During the three months ended June 30, 2024, the Company used historical volatility to determine the fair value of the warrants liability due to the low trading volume and moneyness assessment as of June 30, 2024. Changes in the fair values of the detachable warrants liability are recorded as loss on warrants remeasurement within Other (expense) income, net in the condensed consolidated statements of operations. The following table presents additional information about valuation techniques and inputs used for the detachable warrants (see Note 8, Convertible Senior Notes and Term Loan) that are measured at fair value and categorized within Level 3 as of June 30, 2024 and March 31, 2024 (dollars in thousands):
As of June 30, 2024 and March 31, 2024, the estimated fair value of the Company’s convertible senior notes due in 2028 was $154.9 million and $161.7 million, respectively (see Note 8, Convertible Senior Notes and Term Loan). The fair value of the convertible senior notes was determined based on the closing price of each of the securities on the last trading day of the reporting period, and each is Level 2 in the fair value hierarchy due to limited trading activity of the debt instruments. As of June 30, 2024 and March 31, 2024, the carrying value of the Company’s Term Loan approximates its estimated fair value.
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FINANCIAL STATEMENT COMPONENTS |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCIAL STATEMENT COMPONENTS | FINANCIAL STATEMENT COMPONENTS Accounts receivable, net consisted of the following (in thousands):
Allowance for credit losses and sales reserves consisted of the following (in thousands):
Other current assets consisted of the following (in thousands):
Accrued and other liabilities consisted of the following (in thousands):
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INTANGIBLE ASSETS AND GOODWILL |
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INTANGIBLE ASSETS AND GOODWILL | INTANGIBLE ASSETS AND GOODWILL The carrying value of intangible assets consisted of the following (in thousands):
As of June 30, 2024, the weighted average remaining useful lives for developed technology and customer relationships were 1.3 years and 6.5 years, respectively. The annual amortization of the Company's intangible assets, based upon existing intangible assets and current useful lives, is estimated to be as follows (in thousands):
The following table provides a summary of the changes in the carrying amounts of goodwill (in thousands):
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LEASES |
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LEASES | LEASES The components of lease expense were as follows:
The supplemental cash flow information related to leases was as follows:
The Company entered into a lease agreement commencing in April 2024 for approximately 7,700 square feet of existing international office space in Singapore over a -year term. As of June 30, 2024, the Company has recorded a right-of-use asset and right-of-use liability of $1.8 million, respectively, on the Condensed Consolidated Balance Sheets. Short-term lease expense was immaterial during the years ended June 30, 2024 and 2023. The following table presents supplemental lease information:
The following table presents maturity of lease liabilities under the Company's non-cancellable operating leases as of June 30, 2024:
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COMMITMENTS AND CONTINGENCIES |
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Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES 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 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 may 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. During the three months ended June 30, 2024, a material international operating lease commenced related to an international office building. See Note 6, Leases, in the Company's Annual Report on Form 10-K for more information on the Company's leases and the future minimum lease payments. Purchase Obligations 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. During the three months ended June 30, 2024, there have been no material changes to our purchase obligations from those disclosed in Note 7, Commitments and Contingencies in the notes to the consolidated financial statements included in our Form 10-K. Legal Proceedings The Company may be involved in various claims, lawsuits, investigations, and other legal proceedings, including intellectual property, commercial, regulatory compliance, securities, and employment matters that arise in the normal course of business. The Company determines whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated. The Company regularly evaluates current information to determine whether any accruals should be adjusted and whether new accruals are required. Actual claims could settle or be adjudicated against the Company in the future for materially different amounts than the Company has accrued due to the inherently unpredictable nature of litigation. Legal costs are expensed as incurred. The Company believes it has recorded adequate provisions for any such lawsuits and claims and proceedings as of June 30, 2024. 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, and 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 amounts 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. The Company periodically reviews 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. A similar review was performed on the taxability of services provided by Fuze, Inc., and it was 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 June 30, 2024 and March 31, 2024, the Company had accrued contingent indirect tax liabilities of $13.3 million and $19.2 million, respectively. FCC Investigation of 8x8, Inc. and Fuze, Inc. On November 17, 2023, the Company received a letter of inquiry from the Enforcement Bureau of the Federal Communications Commission (the “FCC”) requesting certain information and supporting documents related to an investigation of potential violations by 8x8 and Fuze in connection with certain prior period regulatory filings and payments. The Company has cooperated with the FCC in this matter and responded to the letter of inquiry. If the FCC were to pursue separate action against the Company, the FCC could seek to fine or impose regulatory penalties or civil liability on the Company. The Company received a Universal Service Administrative Company ("USAC") letter dated February 1, 2024 rejecting Fuze’s previously filed 499-A returns for calendar years 2021 and 2022 and informing the Company that USAC would apply the safe harbor to Fuze revenues for those years for assessing Universal Service Fund ("USF") payments. The Company subsequently received an invoice from USAC dated March 22, 2024 in the amount of $14.9 million for additional USF fees owed for those calendar years by Fuze, Inc. The Company has since refiled the 499-A returns for calendar years 2021 and 2022 for Fuze, Inc. and recorded an additional liability of $5.6 million, which the Company paid on April 12, 2024. The Company submitted an appeal to USAC of the remaining amount of the invoice dated March 22, 2024 on April 15, 2024. USAC notified the Company on May 8, 2024 that it accepted the revised 499-A filings for calendar years 2021 and 2022 for Fuze, Inc. The FCC's investigation of this matter is ongoing and the Company continues to cooperate with the FCC regarding it.
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CONVERTIBLE SENIOR NOTES AND TERM LOAN |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONVERTIBLE SENIOR NOTES AND TERM LOAN | CONVERTIBLE SENIOR NOTES AND TERM LOAN 2022 Term Loan and Warrants As of June 30, 2024 and March 31, 2024, the Company had $225.0 million of principal amount outstanding in a senior secured term loan facility (the “2022 Term Loan”) under a term loan credit agreement (the “2022 Credit Agreement”) entered into on August 3, 2022 with Wilmington Savings Fund Society, FSB, as administrative agent, and certain affiliates of Francisco Partners (“FP”). The 2022 Term Loan matures on August 3, 2027 and bears interest at an annual rate equal to the term Standard Overnight Financing Rate ("Term SOFR") (subject to a floor of 1.00% and a credit spread adjustment of 0.10%), plus a margin of 6.50%. As of June 30, 2024, the debt discount and debt issuance costs are amortized to interest expense over the term of the 2022 Term Loan at an effective interest rate of 11.9%. Mandatory prepayments of the 2022 Term Loan are required to be made upon the occurrence of certain events, including, without limitation, (i) sales of certain assets, (ii) receipt of certain casualty and condemnation awards proceeds, and (iii) the incurrence of non-permitted indebtedness, subject to certain thresholds and reinvestment rights. Voluntary prepayments are permitted at any time, subject to certain prepayment premiums. On May 9, 2023, the Company voluntarily prepaid without penalty $25.0 million of principal amount outstanding and $0.2 million of accrued interest on the 2022 Term Loan. The prepayment penalty of 2% on additional early prepayment of principal expired August 3, 2024. This payment had no impact on the Company's compliance with the 2022 Term Loan covenants. As of June 30, 2024, the Company was in compliance with all covenants set forth in the 2022 Credit Agreement. The obligations under the 2022 Credit Agreement are guaranteed by the Company’s wholly-owned subsidiaries, subject to certain customary exceptions, and secured by a perfected security interest in substantially all of the Company’s tangible and intangible assets, as well as substantially all of the tangible and intangible assets of the guarantors. In connection with the 2022 Credit Agreement, the Company issued detachable warrants (the “Warrants”) to affiliates of FP to purchase an aggregate of 3.1 million shares of the Company’s common stock with a five-year term and an exercise price of $7.15 per share (subject to adjustment) that represents a 27.5% premium over the closing price per share of the Company’s common stock on August 3, 2022. The Warrants are classified as liabilities measured at fair value during each reporting period as the Warrants contain certain terms that could result in cash settlement as a result of events outside of the Company’s control. As of June 30, 2024 and March 31, 2024, the fair value of the Warrants was $1.6 million and $3.3 million, respectively, and was recorded within other liabilities, non-current on the condensed consolidated balance sheets. The subsequent changes in fair value were recorded through Other income (expense), net on the Company’s consolidated statement of operations. See Note 3, Fair Value Measurements, for further details. The following table presents the net carrying amount of the 2022 Term Loan (in thousands):
Interest expense recognized related to the 2022 Term Loan was as follows (in thousands):
2028 Notes As of June 30, 2024 and March 31, 2024, the Company had $201.9 million aggregate principal amount of 4.00% convertible senior notes due 2028 (the “2028 Notes”), with debt issuance costs of approximately $5.6 million, of which 50% was paid in the form of shares of the Company's common stock. The 2028 Notes are senior obligations of the Company that accrue interest, payable semi-annually in arrears on February 1 and August 1 of each year. The 2028 Notes will mature on February 1, 2028, unless earlier converted, redeemed or repurchased. As of June 30, 2024, the Company was in compliance with all covenants set forth in the indenture governing the 2028 Notes. The debt discount and debt issuance costs are amortized to interest expense over the term of the 2028 Notes at an effective interest rate of 4.70%. The following table presents the net carrying amount of the 2028 Notes (in thousands):
Interest expense recognized related to the 2028 Notes was as follows (in thousands):
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STOCK-BASED COMPENSATION AND STOCKHOLDERS' EQUITY |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION AND STOCKHOLDERS' EQUITY | STOCK-BASED COMPENSATION AND STOCKHOLDERS' EQUITY The Company accounts for stock-based compensation through the measurement and recognition of compensation expense for share-based payment awards made to employees, directors or consultants over the related requisite service period, including stock appreciation rights, restricted stock, restricted stock units ("RSUs") and performance stock units ("PSUs"), qualified performance-based awards, and stock grants (all issuable under the Company's equity incentive plans). The Company reserved 8.0 million shares of the Company's common stock for issuance under the 2022 Equity Incentive Plan (the "2022 Plan") plus the number of shares subject to awards that were outstanding under the 2012 Equity Incentive Plan (the "2012 Plan") as of 12:01 a.m. Pacific Time on June 22, 2022 (the “Prior Plan Expiration Time”), to the extent that, after the Prior Plan Expiration Time, such shares would have recycled back to the 2012 Plan in connection with the awards’ expiration, termination, cancellation, forfeiture, or repurchase, as described further below, and in each case, subject to adjustment upon certain changes in the Company’s capitalization. The 2022 Plan provides for the granting of 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 cannot be less than the fair market value on the effective date of the grant. Options, restricted stock, and restricted stock units generally vest over or four years and expire ten years after the grant. As of June 30, 2024, 0.3 million shares remained available for future grants under the 2022 Plan. Stock-Based Compensation The following table presents stock-based compensation expense (in thousands):
Restricted Stock Units The following table presents the RSU activity (shares in thousands):
As of June 30, 2024, there was $33.4 million of total unrecognized compensation cost related to RSUs, which is expected to be recognized over a weighted average of 1.76 years. Performance Stock Units PSUs are issued to a group of executives and generally time vest over periods ranging from to three years from the grant date; vesting is generally also contingent upon achievement of applicable performance metrics or strategic objectives. Vesting of performance-based stock units granted can be tied to our total shareholder return, as measured relative to specified market indices during the applicable performance periods and be contingent upon continued service. The related stock-based compensation expense is recognized over the requisite service period and accounts for the probability that we will satisfy the performance measures or strategic objectives. The following table presents the PSU activity (shares in thousands):
Total unrecognized compensation cost related to PSUs was $2.6 million as of June 30, 2024, which is expected to be recognized over a weighted average of 1.30 years. Employee Stock Purchase Plan ("ESPP") As of June 30, 2024, there was approximately $1.2 million of unrecognized compensation cost related to employee stock purchases. This cost is expected to be recognized over a weighted average period of 0.1 years. As of June 30, 2024, a total of 2.7 million shares were available for issuance under the ESPP.
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INCOME TAXES |
3 Months Ended |
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Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company's effective tax rate was (7.0)% and (10.4)% for the three months ended June 30, 2024 and 2023, respectively. The difference in the effective tax rate and the U.S. federal statutory rate was primarily due to the full valuation allowance the Company maintains against its deferred tax assets after adjusting for the impact of certain provisions enacted under the Tax Cuts and Jobs Act, current tax liabilities of profitable foreign subsidiaries subject to different local income tax rates, and state taxes in the United States. The effective tax rate is calculated by dividing the provision for income taxes by the loss before provision for income taxes.
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NET LOSS PER SHARE |
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NET LOSS PER SHARE | 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 per share data):
As the Company was in a loss position for all periods presented, basic net loss per share is equivalent to diluted net loss per share for all periods, as the inclusion of all potential shares of common stock outstanding would have been anti-dilutive. The following potentially weighted-average common shares were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive (shares in thousands):
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GEOGRAPHICAL INFORMATION |
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GEOGRAPHICAL INFORMATION | GEOGRAPHICAL INFORMATION The following tables set forth the geographic information for each period (in thousands):
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RELATED PARTY TRANSACTIONS |
3 Months Ended |
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Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONSThe Company has been doing business with an outside sales and marketing vendor since December 2017, which became a related party in July 2022 when a member of the Company's board of directors joined the vendor's board of directors. The Company has a two-year contract with this vendor valued at $1.4 million and paid $0.2 million during the three months ended June 30, 2024 |
SUBSEQUENT EVENTS |
3 Months Ended |
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Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Delayed Draw Term Loan On July 11, 2024, the Company entered into a new term loan credit agreement with Wells Fargo Bank, National Association, as administrative agent, and the lenders thereto (the “2024 Credit Agreement”). The 2024 Credit Agreement establishes a delayed draw term loan facility in an aggregate principal amount of up to $200 million maturing on August 15, 2027. Loans made under the delayed draw term loan facility will bear interest at an annual rate equal to Term SOFR, plus a margin of either 2.50%, 2.75% or 3.00% based on the consolidated total net leverage ratio of the Company and its subsidiaries. The initial margin will be 3.00% for the fiscal quarter ending September 30, 2024. Once fully drawn upon, the annual principal repayments of $22.5 million in fiscal year 2025, $37.5 million in fiscal year 2026, and $47.5 million in fiscal year 2027 are required, and the remaining $92.5 million principal is due before or upon maturity in fiscal year 2028. These annualized repayments will be made in quarterly installments. The obligations under the 2024 Credit Agreement will be guaranteed by the Company’s wholly-owned subsidiaries, subject to certain customary exceptions, and, concurrent with any borrowing of delayed draw term loans under the 2024 Credit Agreement, will be secured by a perfected security interest in substantially all of the Company’s tangible and intangible assets, as well as substantially all of the tangible and intangible assets of the guarantors. Mandatory prepayments of the delayed draw term loan facility are required to be made upon the occurrence of certain events, including, without limitation, (i) sales of certain assets, (ii) receipt of certain casualty and condemnation awards proceeds, and (iii) the incurrence of non-permitted indebtedness, subject to certain thresholds and reinvestment rights. Voluntary prepayments are permitted at any time without premium or penalty, subject to certain customary break funding payments. The 2024 Credit Agreement contains a consolidated interest coverage ratio financial covenant, a maximum consolidated total net leverage ratio financial covenant and a maximum consolidated secured leverage ratio financial covenant and contains affirmative and negative covenants customary for transactions of this type, including limitations with respect to share repurchases, indebtedness, liens, investments, dividends, disposition of assets, change in business, and transactions with affiliates. Delayed Draw Term Loan Drawdown and 2022 Term Loan Extinguishment The funding of loans under the 2024 Credit Agreement occurred on August 5, 2024. The Company used the proceeds plus $29 million from existing cash balances, to fund the prepayment of the entire $225 million principal outstanding plus accrued interest and fees under the 2022 Term Loan and terminated the 2022 Credit Agreement. As a result of the debt extinguishment, the recognition of any unamortized debt discount and issuance costs of the 2022 Term Loan within other expense, net, in the consolidated statement of operations will be assessed by the Company.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | |
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Jun. 30, 2024 |
Jun. 30, 2023 |
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Pay vs Performance Disclosure | ||
Net loss | $ (10,290) | $ (15,327) |
Insider Trading Arrangements |
3 Months Ended |
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Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES (Policies) |
3 Months Ended |
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Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | BASIS OF PRESENTATION AND CONSOLIDATION The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. Accordingly, certain information and disclosures normally included in the Company's annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements as of and for the fiscal year ended March 31, 2024 and notes thereto included in the Form 10-K. There were no material changes during the three months ended June 30, 2024 to the Company's significant accounting policies as described in the Form 10-K. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company conducts its operations through one reportable segment. In the opinion of the Company's management, these condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of the Company's financial position, results of operations and cash flows for the periods presented. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for any subsequent quarter or for the entire year ending March 31, 2025. CHANGE IN REPORTING PRESENTATION Historically, cost of revenue and cost of other revenue have been presented within operating expenses. During the fourth quarter of fiscal 2024, the Company made voluntary changes in accounting presentation and reclassified prior period amounts to conform to current year presentation to separately state cost of revenue, cost of other revenue and recognize gross profit on the Company's condensed consolidated statement of operations.
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Use of Estimates | USE OF ESTIMATES The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and equity, 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 current expected credit losses, returns reserve for expected cancellations, fair value of and/or potential impairment of goodwill and value and useful life of long-lived assets (including intangible assets, right-of-use assets and cost investments), capitalized internal-use software costs, 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 and warrant 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.
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Recently Issued Accounting Pronouncements Not Yet Adopted | RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires disclosure of incremental segment information on an annual and interim basis. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and requires retrospective application to all prior periods presented in the financial statements. The Company is currently evaluating the impact that this guidance will have on the presentation of its condensed consolidated financial statements and accompanying notes. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands disclosures in an entity’s income tax rate reconciliation table and disclosures regarding cash taxes paid both in the U.S. and foreign jurisdictions. The update will be effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the impact that this guidance will have on the presentation of its condensed consolidated financial statements and accompanying notes. There have been no other recent accounting pronouncements, changes in accounting pronouncements or recently adopted accounting guidance during the three months ended June 30, 2024 that are of significance or potential significance to us.
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Indemnifications | 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 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 may not have a contractual limit.
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REVENUE RECOGNITION (Tables) |
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Contract Balances | The following table provides amounts of contract assets and deferred revenue from contracts with customers (in thousands):
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FAIR VALUE MEASUREMENTS (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value Measurements | Cash, cash equivalents, and available-for-sale investments were as follows (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Assumptions Used in Determination of Fair Value | The following table presents additional information about valuation techniques and inputs used for the detachable warrants (see Note 8, Convertible Senior Notes and Term Loan) that are measured at fair value and categorized within Level 3 as of June 30, 2024 and March 31, 2024 (dollars in thousands):
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FINANCIAL STATEMENT COMPONENTS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Receivable | Accounts receivable, net consisted of the following (in thousands):
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Schedule of Allowance for Credit Loss | Allowance for credit losses and sales reserves consisted of the following (in thousands):
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Schedule of Other Current Assets | Other current assets consisted of the following (in thousands):
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Schedule of Accrued and Other Liabilities | Accrued and other liabilities consisted of the following (in thousands):
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INTANGIBLE ASSETS AND GOODWILL (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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):
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The annual amortization of the Company's intangible assets, based upon existing intangible assets and current useful lives, is estimated to be as follows (in thousands):
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Schedule of Goodwill | The following table provides a summary of the changes in the carrying amounts of goodwill (in thousands):
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LEASES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Lease Cost and Supplemental Cash Flow and Lease Information | The components of lease expense were as follows:
The supplemental cash flow information related to leases was as follows:
The following table presents supplemental lease information:
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Schedule of Maturity of Lease Liabilities | The following table presents maturity of lease liabilities under the Company's non-cancellable operating leases as of June 30, 2024:
|
CONVERTIBLE SENIOR NOTES AND TERM LOAN (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Carrying Amount | The following table presents the net carrying amount of the 2022 Term Loan (in thousands):
The following table presents the net carrying amount of the 2028 Notes (in thousands):
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Schedule of Interest Expense | Interest expense recognized related to the 2022 Term Loan was as follows (in thousands):
Interest expense recognized related to the 2028 Notes was as follows (in thousands):
|
STOCK-BASED COMPENSATION AND STOCKHOLDERS' EQUITY (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table presents stock-based compensation expense (in thousands):
|
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Disclosure of Share-Based Compensation Arrangements By Share-Based Payment Award | The following table presents the RSU activity (shares in thousands):
The following table presents the PSU activity (shares in thousands):
|
NET LOSS PER SHARE (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of 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 per share data):
|
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following potentially weighted-average common shares were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive (shares in thousands):
|
GEOGRAPHICAL INFORMATION (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | The following tables set forth the geographic information for each period (in thousands):
|
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Schedule of Long-lived Assets by Geographic Area |
|
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES (Details) |
3 Months Ended |
---|---|
Jun. 30, 2024
segment
| |
Accounting Policies [Abstract] | |
Number of reportable segments | 1 |
REVENUE RECOGNITION - Contract Balances (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Mar. 31, 2024 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Contract assets, current (component of Other current assets) | $ 10,143 | $ 9,453 |
Contract assets, non-current (component of Other assets) | 7,617 | 7,879 |
Deferred revenue, current | 33,701 | 34,325 |
Deferred revenue, non-current | $ 7,659 | $ 7,810 |
FAIR VALUE MEASUREMENTS - Summary of Assumptions Used in Determination of Fair Value (Details) $ in Thousands |
Jun. 30, 2024
USD ($)
yr
|
Mar. 31, 2024
USD ($)
yr
|
---|---|---|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of the warrants | $ | $ 1,574 | $ 3,321 |
Stock volatility | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Warrant, measurement input | 0.727 | 0.872 |
Risk-free rate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Warrant, measurement input | 0.045 | 0.043 |
Expected term | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Warrants and rights outstanding, term | 3 years 1 month 6 days | 3 years 4 months 24 days |
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Mar. 31, 2024 |
---|---|---|
Level 2 | 2028 Notes | Convertible debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | $ 154.9 | $ 161.7 |
FINANCIAL STATEMENT COMPONENTS - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Mar. 31, 2024 |
Mar. 31, 2023 |
---|---|---|---|
Property, Plant and Equipment [Abstract] | |||
Trade accounts receivable | $ 56,360 | $ 59,757 | |
Unbilled trade accounts receivable | 6,505 | 4,470 | |
Less: allowance for credit losses | (1,894) | (2,746) | $ (3,644) |
Less: allowance for sales reserves | (1,766) | (2,502) | $ (3,218) |
Total accounts receivable, net | $ 59,205 | $ 58,979 |
FINANCIAL STATEMENT COMPONENTS - Schedule of Allowance for Credit Loss (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2024 |
Mar. 31, 2024 |
|
Credit Losses | ||
Beginning balance | $ (2,746) | $ (3,644) |
Release (reserve) | 550 | (1,969) |
Write-offs | 302 | 2,867 |
Ending balance | (1,894) | (2,746) |
Sales Reserves | ||
Beginning balance | (2,502) | (3,218) |
Release (reserve) | (439) | (3,581) |
Write-offs | 1,175 | 4,297 |
Ending balance | $ (1,766) | $ (2,502) |
FINANCIAL STATEMENT COMPONENTS - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Mar. 31, 2024 |
---|---|---|
Property, Plant and Equipment [Abstract] | ||
Prepaid expense | $ 15,780 | $ 18,172 |
Contract assets, current | 10,143 | 9,453 |
Other current assets | 6,800 | 7,633 |
Total other current assets | $ 32,723 | $ 35,258 |
FINANCIAL STATEMENT COMPONENTS - Schedule of Accrued and Other Liabilities (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Mar. 31, 2024 |
---|---|---|
Property, Plant and Equipment [Abstract] | ||
Accrued compensation | $ 20,753 | $ 19,550 |
Accrued taxes | 35,927 | 44,096 |
Other accrued liabilities | 18,689 | 14,456 |
Total accrued and other liabilities | $ 75,369 | $ 78,102 |
INTANGIBLE ASSETS AND GOODWILL - Schedule Of Intangibles (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Mar. 31, 2024 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 152,862 | $ 152,865 |
Accumulated Amortization | (71,244) | (66,148) |
Total | 81,618 | 86,717 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 46,452 | 46,454 |
Accumulated Amortization | (38,938) | (36,823) |
Total | 7,514 | 9,631 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 105,826 | 105,827 |
Accumulated Amortization | (31,722) | (28,741) |
Total | 74,104 | 77,086 |
Trade names and domains | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 584 | 584 |
Accumulated Amortization | (584) | (584) |
Total | $ 0 | $ 0 |
INTANGIBLE ASSETS AND GOODWILL - Narrative (Details) |
Jun. 30, 2024 |
---|---|
Developed technology | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, remaining amortization period | 1 year 3 months 18 days |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, remaining amortization period | 6 years 6 months |
INTANGIBLE ASSETS AND GOODWILL - Schedule of Future Amortization of Intangibles (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Mar. 31, 2024 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2025 | $ 13,997 | |
2026 | 13,895 | |
2027 | 11,757 | |
2028 | 11,044 | |
2029 and thereafter | 30,925 | |
Total | $ 81,618 | $ 86,717 |
INTANGIBLE ASSETS AND GOODWILL - Changes in Carrying Amount of Goodwill by Location (Details) $ in Thousands |
3 Months Ended |
---|---|
Jun. 30, 2024
USD ($)
| |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 266,574 |
Foreign currency translation | (175) |
Goodwill, ending balance | $ 266,399 |
LEASES - Operating Lease Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Leases [Abstract] | ||
Operating lease expense | $ 3,165 | $ 2,507 |
Variable lease expense | $ 1,081 | $ 1,121 |
LEASES - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Leases [Abstract] | ||
Cash outflows from operating leases | $ 3,742 | $ 3,640 |
Right-of-use assets obtained in exchange for operating lease obligations | $ 1,954 | $ 0 |
LEASES - Supplemental lease Information (Details) |
Jun. 30, 2024 |
Mar. 31, 2024 |
---|---|---|
Leases [Abstract] | ||
Weighted average remaining lease term | 5 years 10 months 24 days | 6 years 2 months 12 days |
Weighted average discount rate | 4.50% | 4.30% |
LEASES - Narrative (Details) $ in Thousands |
Jun. 30, 2024
USD ($)
|
Apr. 30, 2024
ft²
|
Mar. 31, 2024
USD ($)
|
---|---|---|---|
Lessee, Lease, Description [Line Items] | |||
Operating lease, right-of-use assets | $ 35,933 | $ 35,924 | |
Operating lease liabilities | 11,564 | $ 11,295 | |
Singapore office lease | |||
Lessee, Lease, Description [Line Items] | |||
Area of real estate property | ft² | 7,700 | ||
Lease term | 3 years | ||
Operating lease, right-of-use assets | 1,800 | ||
Operating lease liabilities | $ 1,800 |
LEASES - Maturity of Lease Liabilities (Details) $ in Thousands |
Jun. 30, 2024
USD ($)
|
---|---|
Leases [Abstract] | |
Remainder of 2025 | $ 10,698 |
2026 | 13,381 |
2027 | 12,050 |
2028 | 10,634 |
2029 | 10,476 |
Thereafter | 18,433 |
Total lease payments | 75,672 |
Less: imputed interest | (8,929) |
Present value of lease liabilities | $ 66,743 |
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions |
Mar. 22, 2024 |
Jun. 30, 2024 |
Mar. 31, 2024 |
---|---|---|---|
Lessee, Lease, Description [Line Items] | |||
USF fees | $ 14.9 | ||
Additional liability | $ 5.6 | ||
State and local taxes and surcharges | |||
Lessee, Lease, Description [Line Items] | |||
Accrued contingent indirect tax liabilities | $ 13.3 | $ 19.2 |
CONVERTIBLE SENIOR NOTES AND TERM LOAN - Carrying Amount (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Mar. 31, 2024 |
---|---|---|
Loans payable | Term Loan | ||
Debt Instrument [Line Items] | ||
Principal | $ 225,000 | $ 225,000 |
Unamortized debt discount and issuance costs | (12,282) | (13,106) |
Net carrying amount | 212,718 | 211,894 |
Convertible debt | 2028 Notes | ||
Debt Instrument [Line Items] | ||
Principal | 201,914 | 201,914 |
Unamortized debt discount and issuance costs | (3,881) | (4,118) |
Net carrying amount | $ 198,033 | $ 197,796 |
CONVERTIBLE SENIOR NOTES AND TERM LOAN - Interest Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Debt Instrument [Line Items] | ||
Amortization of debt discount and issuance costs | $ 1,062 | $ 1,108 |
Term Loan | Convertible debt | ||
Debt Instrument [Line Items] | ||
Contractual interest expense | 6,855 | 6,879 |
Amortization of debt discount and issuance costs | 824 | 775 |
Total interest expense | 7,679 | 7,654 |
2028 Notes | Convertible debt | ||
Debt Instrument [Line Items] | ||
Contractual interest expense | 2,039 | 2,014 |
Amortization of debt discount and issuance costs | 238 | 227 |
Total interest expense | $ 2,277 | $ 2,241 |
CONVERTIBLE SENIOR NOTES AND TERM LOAN - 2028 Notes (Details) - 2028 Notes - Convertible debt - USD ($) $ in Thousands |
Jun. 30, 2024 |
Mar. 31, 2024 |
---|---|---|
Debt Instrument [Line Items] | ||
Debt instrument, face value | $ 201,914 | $ 201,914 |
Debt instrument, effective interest rate | 4.00% | 4.00% |
Debt issuance costs, net | $ 5,600 | $ 5,600 |
Debt issuance costs, percentage paid in common stock | 50.00% | 50.00% |
Debt instrument, interest rate | 4.70% |
INCOME TAXES (Details) |
3 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | (7.00%) | (10.40%) |
NET LOSS PER SHARE - Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Earnings Per Share [Abstract] | ||
Net loss, basic | $ (10,290) | $ (15,327) |
Net loss, diluted | $ (10,290) | $ (15,327) |
Weighted average common shares outstanding - basic (in shares) | 125,999 | 116,777 |
Weighted average common shares outstanding - diluted (in shares) | 125,999 | 116,777 |
Net loss per share: | ||
Basic (in dollars per share) | $ (0.08) | $ (0.13) |
Diluted (in dollars per share) | $ (0.08) | $ (0.13) |
NET LOSS PER SHARE - Schedule of Antidilutive Awards (Details) - shares shares in Thousands |
3 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares (in shares) | 11,208 | 11,422 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares (in shares) | 358 | 649 |
Restricted stock units and Performance stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares (in shares) | 8,545 | 9,885 |
Potential shares attributable to the ESPP | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares (in shares) | 2,305 | 888 |
GEOGRAPHICAL INFORMATION (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Mar. 31, 2024 |
|
Segment Reporting Information [Line Items] | |||
Revenue | $ 178,147 | $ 183,287 | |
Property and equipment, net | 51,400 | $ 53,181 | |
United States | |||
Segment Reporting Information [Line Items] | |||
Revenue | 122,858 | 130,383 | |
Property and equipment, net | 48,559 | 49,992 | |
United Kingdom | |||
Segment Reporting Information [Line Items] | |||
Revenue | 29,206 | 29,840 | |
Other International | |||
Segment Reporting Information [Line Items] | |||
Revenue | 26,083 | $ 23,064 | |
Property and equipment, net | $ 2,841 | $ 3,189 |
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Related Party Transaction [Line Items] | ||
Related party transaction, amounts of transaction | $ 1,400 | |
Sales and marketing | $ 67,106 | $ 68,505 |
Related party | ||
Related Party Transaction [Line Items] | ||
Contract service period | 2 years | |
Sales and marketing | $ 200 |
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