Revenue

12 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

The Company offers a comprehensive suite of products delivered on its open and extensible cloud-based platform that enable organizations to collect, store, and analyze massive amounts of data in real time so they can better operate their applications and infrastructure and improve their digital customer experience. The Company generates revenue from subscription-based arrangements and usage-based arrangements that allow customers to access its products and/or platform.

Revenue from subscription-based arrangements is recognized on a ratable basis over the contractual subscription period of the arrangement beginning when or as control of the promised goods or services is transferred to the customer.

Beginning in the second quarter of fiscal 2021, the Company started offering usage-based pricing to its customers. Customers have the option to be charged upon their incurred usage in arrears (“Pay as You Go”), or they may commit to a minimum spend over their contracted period. Revenue related to Pay as You Go contracts are recognized based on the customers’ actual usage. Revenue related to commitment contracts are recognized on a ratable basis over the contract period including an estimate of usage above the minimum commitment. Usage above minimum commitment is estimated by looking at usage in previous months and other factors and projecting out for the rest of the contract. The estimated usage-based revenues are constrained to the amount the Company expects to be entitled to receive in exchange for providing access to its platform. Deferred revenue consists of billings or payments received in advance of revenue being recognized.

Disaggregation of Revenue

For disaggregated revenue by geography, refer to Note 16—Revenue by Geographic Location.

Contract Balances

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 March 31, 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 $1.5 million and $2.5 million as of March 31, 2022 and March 31, 2021, respectively. The Company has no asset impairment charges related to contract assets for the periods presented. 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):

	March 31, 2022		March 31, 2021
Deferred revenue, beginning of period	$	375,268	$	316,327
Contributions from contract asset	(1,017)		2,446
Billings	810,132		724,143
Revenue recognized	(785,521)		(667,648)
Deferred revenue, end of period	$	398,862	$	375,268

For the fiscal years ended March 31, 2022 and 2021, approximately 47% of total revenue recognized was from the deferred revenue balances at the beginning of each period.

For the fiscal year ended March 31, 2022, the Company recognized $9.8 million in revenue from performance obligations satisfied in prior periods. The amount recognized during the fiscal year ended March 31, 2021 from performance obligations satisfied in prior periods was immaterial.

Contract Acquisition Costs

The Company capitalizes certain contract acquisition costs primarily consisting of commissions. The balances of deferred costs to obtain customer contracts were $34.5 million and $68.8 million as of March 31, 2022 and March 31, 2021, respectively. In the fiscal years ended March 31, 2022 and 2021, amortization from amounts capitalized was $36.6 million and $38.3 million, respectively. In the fiscal years ended March 31, 2022 and 2021, amounts expensed as incurred were $62.7 million and $14.5 million, respectively. The Company had no impairment loss in relation to costs capitalized.

Remaining Performance Obligations

The Company’s contracts with customers generally include one main performance obligation, which is access to its SaaS-based products and platform. Within the main performance obligation, each service is generally considered a distinct stand-ready obligation that is recognized over the contract term based on the passage of time. As of March 31, 2022, the aggregate unrecognized transaction price of remaining performance obligations was $706.1 million. The Company expects to recognize more than 96% of the balance as revenue in the 24 months following March 31, 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.