Accounts Receivable, Deferred Revenue and Performance Obligations

6 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Accounts Receivable, Deferred Revenue and Performance Obligations

Contract Acquisition CostsThe Company capitalizes certain contract acquisition costs primarily consisting of commissions. The balances of deferred costs to obtain customer contracts were $24.3 million and $34.5 million as of September 30, 2022 and March 31, 2022, respectively. In the three months ended September 30, 2022 and 2021, amortization from amounts capitalized was $6.5 million and $9.6 million, respectively. In the six months ended September 30, 2022 and 2021, amortization from amounts capitalized was $13.7 million and $19.8 million, respectively. In the three months ended September 30, 2022 and 2021, amounts expensed as incurred were $14.0 million and $15.4 million, respectively. In the six months ended September 30, 2022 and 2021, amounts expensed as incurred were $28.5 million and $29.5 million, respectively. The Company had no impairment loss in relation to costs capitalized.Accounts Receivable, Deferred Revenue and Performance Obligations

In a response to the COVID-19 pandemic, the Company performed additional procedures to evaluate the creditworthiness of its customers and assess collectability of accounts. Using a current expected credit loss model, the Company determined that, while there may be a delay in collections due to the downturn in economic activity, there has not been a material impact to the risk of credit loss on accounts receivables as of September 30, 2022.

The Company receives payments from customers based upon billing cycles. As the Company performs under customer contracts, its right to consideration that is unconditional is considered to be accounts receivable. If the Company’s right to consideration for such performance is contingent upon a future event or satisfaction of additional performance obligations, the amount of revenues the Company has recognized in excess of the amount it has billed to the customer is considered to be a contract asset. Contract assets were $4.2 million and $1.5 million as of September 30, 2022 and March 31, 2022, respectively. Deferred revenue represents consideration received from customers in excess of revenues recognized.

The following table presents the changes to the Company’s deferred revenue (in thousands):

	Three Months Ended September 30,				Six Months Ended September 30,
	2022		2021		2022		2021
Deferred revenue, beginning of period	$	332,956	$	317,502	$	398,862	$	375,268
Contributions from contract asset	565		99		1,699		1,640
Billings	178,677		150,339		328,096		271,516
Revenue recognized	(226,912)		(195,694)		(443,371)		(376,178)
Deferred revenue, end of period	$	285,286	$	272,246	$	285,286	$	272,246

For the three and six months ended September 30, 2022 and 2021, the majority of revenue recognized was from the deferred revenue balances at the beginning of each period.

For the three and six months ended September 30, 2022, the Company recognized $7.9 million and $9.8 million, respectively, in revenue from performance obligations satisfied in prior periods. For the three and six months ended September 30, 2021, the Company recognized $9.7 million and $7.9 million, respectively, in revenue from performance obligations satisfied in prior periods.

The aggregate unrecognized transaction price of remaining performance obligations as of September 30, 2022 and 2021 was $602.3 million and $597.2 million, respectively. The Company expects to recognize more than 95% of the balance as revenue in the 24 months following September 30, 2022 and the remainder thereafter. The aggregate balance of remaining performance obligations represents contracted revenue that has not yet been recognized and does not include contract amounts which are cancellable by the customer and amounts associated with optional renewal periods.