Fair Value Measurements

9 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements

3. Fair Value Measurements

The following tables present information about the Company’s financial assets measured at fair value on a recurring basis as of December 31, 2015 and March 31, 2015 based on the three-tier fair value hierarchy (in thousands):

	Fair Value Measurements as of
	December 31, 2015
	Level 1		Level 2		Level 3		Total
Description:
Money market funds	$	36,117	$	—	$	—	$	36,117
Corporate notes and bonds		—		25,359		—		25,359
U.S. treasury securities		2,289		—		—		2,289
U.S. government agencies		—		97,285		—		97,285
Restricted cash - money market funds		8,023		—		—		8,023
Total	$	46,429	$	122,644	$	—	$	169,073
Included in cash and cash equivalents							$	41,945
Included in short-term investments							$	119,105
Included in restricted cash							$	8,023
	Fair Value Measurements as of
	March 31, 2015
	Level 1		Level 2		Level 3		Total
Description:
Money market funds	$	56,455	$	—	$	—	$	56,455
Certificates of deposit		—		1,800		—		1,800
Commercial paper		—		30,288		—		30,288
Corporate notes and bonds		—		38,715		—		38,715
U.S. treasury securities		500		—		—		500
U.S. government agencies		—		33,199		—		33,199
Restricted cash - money market funds		4,623		—		—		4,623
Total	$	61,578	$	104,002	$	—	$	165,580
Included in cash and cash equivalents							$	65,454
Included in short-term investments							$	95,503
Included in restricted cash							$	4,623

There were no transfers between fair value measurement levels during the three and nine months ended December 31, 2015.

In September 2015, the Company executed a $3.4 million letter of credit in connection with a lease signed in June 2015. The cash collateralized letter of credit is classified as restricted cash on the condensed consolidated balance sheet as of December 31, 2015.

Level 3 instruments in prior periods consisted solely of the Company’s preferred stock warrant liability. Prior to the IPO, outstanding warrants to purchase shares of the Company’s Series A and Series D convertible preferred stock were classified as other liabilities. The initial liability recorded was adjusted for changes in the fair values of the Company’s preferred stock warrants during each reporting period and was recorded as a component of other income (expense), net in the statement of operations. The Company estimated the fair values of these warrants using the Black-Scholes option-pricing model, based on the inputs for the estimated fair value of the underlying convertible preferred stock at the valuation measurement date, the remaining contractual term of the warrant, risk-free interest rates, expected dividend rates and expected volatility of the price of the underlying convertible preferred stock. These estimates were based on subjective assumptions. During the three and nine months ended December 31, 2014, the Company recognized charges in the amount of $0.3 million and $82,000, respectively, which were recorded as other expense in the Company’s condensed consolidated statements of operations. Upon the closing of the IPO in December 2014, the Company ceased recording any further related periodic fair value adjustments.

Gross unrealized gains or losses for cash equivalents and available-for-sale marketable securities as of December 31, 2015 and March 31, 2015 were not material. As of December 31, 2015 and March 31, 2015, there were no securities that were in an unrealized loss position for more than 12 months.

The following table classifies the Company’s available-for-sale short-term investments by contractual maturities as of December 31, 2015 and March 31, 2015 (in thousands):

	December 31, 2015		March 31, 2015
Due in one year	$	92,793	$	53,287
Due in one to two years		26,312		42,216
Total	$	119,105	$	95,503

For certain other financial instruments, including accounts receivable, accounts payable and other current liabilities, the carrying amounts approximate their fair value due to the relatively short maturity of these balances.