Goodwill and Purchased Intangibles Assets

6 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Purchased Intangibles Assets

Goodwill and Purchased Intangibles Assets

In September 2022, the Company acquired all of the equity interests in K2. As of the closing of the acquisition, the estimated fair value of the acquired developed technology and goodwill was $7.4 million and $8.6 million, respectively. Refer to Note 2 — Business Combinations for more information.

The changes in the carrying amount of goodwill for the six months ended September 30, 2022 consisted of the following (in thousands):

Goodwill as of March 31, 2022	$	163,677
Goodwill acquired	8,621
Goodwill as of September 30, 2022	$	172,298

Purchased intangible assets subject to amortization as of September 30, 2022 consisted of the following (in thousands):

	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Developed technology	$	34,900	$	(16,447)	$	18,453

Purchased intangible assets subject to amortization as of March 31, 2022 consisted of the following (in thousands):

	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Developed technology	$	27,500	$	(11,864)	$	15,636

Amortization expense of purchased intangible assets was $2.3 million and $1.7 million for the three months ended September 30, 2022 and 2021, respectively, and $4.6 million and $3.4 million for the six months ended September 30, 2022 and 2021, respectively, and is included in cost of revenue on the Company’s condensed consolidated statements of operations.

Estimated future amortization expense as of September 30, 2022 was as follows (in thousands):

Fiscal Years Ending March 31,	Estimated Future Amortization Expense
2023 (remaining six months)	$	5,650
2024	7,100
2025	4,470
Thereafter	1,233
	$	18,453