Common Stock and Stockholders' Equity

9 Months Ended

Dec. 31, 2015

Equity [Abstract]

Common Stock and Stockholders' Equity

7. Common Stock and Stockholders’ Equity

Common stock authorized — Upon the completion of the IPO, the Company’s certificate of incorporation was amended and restated to increase the amount of common stock authorized for issuance from 55,000,000 to 100,000,000 common shares with a par value of $0.001 per share.

Employee Stock Purchase Plan — The Company’s board of directors adopted, and the Company’s stockholders approved, the Company’s 2014 Employee Stock Purchase Plan (the “ESPP”), which became effective in December 2014. The ESPP initially reserved and authorized the issuance of up to 1,000,000 shares of common stock. The ESPP provides that the number of shares reserved and available for issuance under the ESPP will automatically increase each April, beginning on April 1, 2015, by the lesser of 500,000 shares, 1% of the number of the Company’s common stock shares issued and outstanding on the immediately preceding March 31, or such lesser number of shares as determined by the Company’s board of directors. As of December 31, 2015, there were 1,471,169 shares available for issuance under the ESPP. The first offering period under the ESPP commenced on August 15, 2015. For the nine months ended December 31, 2015, no shares of common stock were purchased under the ESPP.

2008 Equity Incentive Plan — The Company’s board of directors adopted the 2008 Equity Incentive Plan (the “2008 Plan”) in February 2008. The 2008 Plan was terminated in connection with the IPO, and accordingly, no shares are available for future issuance under this plan. The 2008 Plan continues to govern outstanding awards granted thereunder.

2014 Equity Incentive Plan — The Company’s board of directors adopted, and the Company’s stockholders approved, the Company’s 2014 Equity Incentive Plan (the “2014 Plan”), which became effective in December 2014. The 2014 Plan serves as the successor to the Company’s 2008 Plan. The 2014 Plan initially reserved and authorized the issuance of 5,000,000 shares of the Company’s common stock. Additionally, shares not issued or subject to outstanding grants under the 2008 Plan upon its termination became available under the 2014 Plan, resulting in a total of 5,184,878 available shares under the 2014 Plan as of the effective date of the 2014 Plan. Pursuant to the terms of the 2014 Plan, any shares subject to outstanding stock options or other stock awards under the 2008 Plan that (i) expire or terminate for any reason prior to exercise or settlement, (ii) are forfeited because of the failure to meet a contingency or condition required to vest such shares or otherwise return to the Company or (iii) are reacquired, withheld (or not issued) to satisfy a tax withholding obligation in connection with an award or to satisfy the purchase price or exercise price of a stock award will become available for issuance pursuant to awards granted under the 2014 Plan. The 2014 Plan provides that the number of shares reserved and available for issuance under the plan will automatically increase each April 1, beginning on April 1, 2015, by 5% of the outstanding number of shares of the Company’s common stock shares issued and outstanding on the immediately preceding March 31, or such lesser number of shares as determined by the Company board of directors. As of December 31, 2015, there were 6,526,991 shares available for issuance under the 2014 Plan.

The following table summarizes the Company’s stock option and RSU award activities for the nine months ended December 31, 2015 (in thousands, except per share information):

	Options Outstanding									RSUs Outstanding
						Weighted- Average Remaining Contractual Term (in years)							Weighted- Average Grant Date Fair Value		Weighted- Average Remaining Contractual Term (in years)
	Number of Shares			Weighted- Average Exercise Price				Aggregate Intrinsic Value		Number of Shares							Aggregate Intrinsic Value
Outstanding - April 1, 2015		9,422		$	10.08		7.9	$	231,964		723		$	23.87		3.5	$	25,098
Stock options granted		621			32.92
RSUs granted											1,008			33.48
Stock options exercised		(1,921	)		5.49				56,534
RSUs vested											(123	)		25.07
Stock options canceled/forfeited		(545	)		15.77
RSUs canceled/forfeited											(107	)		26.97
Outstanding - December 31, 2015		7,577		$	12.71		6.7	$	179,964		1,501		$	30.01		3.3	$	54,682

Restricted Stock Awards—The Company granted restricted stock awards to two directors for an aggregate of 100,000 shares of its common stock in August 2013 and 40,000 shares of common stock in May 2014, each of which vests over four years, subject to the continued service relationship with the Company, or become fully vested upon a change of control. The grant date fair value of the restricted stock awards was $0.9 million or $9.37 per share for awards granted in August 2013, and $0.7 million or $16.93 per share for awards granted in May 2014. Stock-based compensation expense recognized related to these restricted stock awards was $0.1 million for each of the three months ended December 31, 2015 and 2014, respectively, and $0.3 million for each of the nine months ended December 31, 2015 and 2014, respectively. The Company recognizes the expense using a straight-line basis over the requisite service periods of the award. As of December 31, 2015, 83,332 shares were vested.

Stock Options Granted to Nonemployees—The Company granted 12,069 shares and 60,175 shares to nonemployee consultants during the three months ended December 31, 2015 and 2014, respectively, and 23,676 shares and 110,175 shares to nonemployee consultants during the nine months ended December 31, 2015 and 2014, respectively. The Company recorded stock-based compensation expense of $0.2 million and $0.3 million for the three months ended December 31, 2015 and 2014, respectively, and $0.7 million and $0.4 million for the nine months ended December 31, 2015 and 2014, respectively.

Stock-Based Compensation Expense—Stock-based compensation expense for both employees and nonemployees was $6.4 million and $3.4 million for the three months ended December 31, 2015 and 2014, respectively, and $16.6 million and $7.6 million for the nine months ended December 31, 2015 and 2014, respectively. Stock-based compensation expense attributed to cost of revenue, research and development, sales and marketing, and general and administrative expenses were as follows (in thousands):

	Three Months Ended December 31,				Nine Months Ended December 31,
	2015		2014		2015		2014
Cost of revenue	$	333	$	166	$	893	$	359
Research and development		1,684		721		4,223		1,178
Sales and marketing		2,588		1,474		6,634		3,378
General and administrative		1,751		1,065		4,853		2,677
Total stock-based compensation expense	$	6,356	$	3,426	$	16,603	$	7,592

As of December 31, 2015, unrecognized stock-based compensation cost related to outstanding unvested stock options was $33.6 million, which is expected to be recognized over a weighted-average period of approximately 2.5 years. As of December 31, 2015, unrecognized stock-based compensation cost related to outstanding unvested stock awards was $44.4 million, which is expected to be recognized over a weighted-average period of approximately 3.1 years.