Joint Venture

12 Months Ended

Mar. 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

Joint Venture

Joint Venture

On July 13, 2018, the Company entered into an agreement with Japan Cloud Computing L.P. (“JCC”) and M30 LLC (collectively, the Investors) to engage in the investment, organization, management, and operation of New Relic K.K., a Japanese subsidiary of the Company that is focused on the sale of the Company’s products and services in Japan. On August 21, 2018, the investors initially contributed approximately $3.6 million (396,000,000 Japanese Yen) in exchange for 40% of the outstanding common stock of New Relic K.K. On August 21, 2019, the Company and Investors additionally contributed approximately $1.5 million (156,000,000 Japanese Yen) and approximately $1.0 million (104,000,000 Japanese Yen), respectively, to subscribe to additional shares. As of March 31, 2022, the Company owned approximately 60% of the outstanding common stock in New Relic K.K.

All of the common stock held by the Investors may be callable by the Company or puttable by the Investors upon certain contingent events. Should the call or put option be exercised, the redemption value would be determined based on a prescribed formula derived from the discrete revenues of New Relic K.K. and the Company and may be settled, at the Company’s discretion, with Company stock or cash. As a result of the put right available to the redeemable non-controlling interest holders in the future, the redeemable non-controlling interest in New Relic K.K. is classified outside of permanent equity in the Company’s consolidated balance sheet as of March 31, 2022, and the balance is reported at the greater of the initial carrying amount adjusted for the redeemable non-controlling interest’s share of earnings or losses, or its estimated

redemption value. Accordingly, the Company adjusted the redeemable non-controlling interest by $18.6 million at March 31, 2022.

The following table summarizes the activity in the redeemable non-controlling interest for the period indicated below:

	March 31, 2022		March 31, 2021		March 31, 2020
Balance, beginning of period	$	3,389	$	1,669	$	2,733
Investment by redeemable non-controlling interest	—		—		978
Net loss attributable to redeemable non-controlling interest	(282)		(1,421)		(2,042)
Adjustment to redeemable non-controlling interest	18,579		3,141		—
Balance, end of period	$	21,686	$	3,389	$	1,669