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Common Stock and Stockholders' Equity
 12 Months Ended
Mar. 31, 2022
Equity [Abstract]  
Common Stock and Stockholders' Equity Common Stock and Stockholders’ Equity
Common stock reserved for issuance—The Company had reserved shares of common stock for future issuance pursuant to equity plans as follows (in thousands):
 As of March 31,
 20222021
Common stock options outstanding1,663 2,718 
RSUs outstanding3,351 3,293 
PSUs outstanding320 112 
Available for future stock option, RSU, and PSU grants13,904 12,281 
Available for future employee stock purchase plan awards2,988 2,702 
22,226 21,106 
Employee Stock Purchase Plan—The Company’s board of directors adopted, and the Company’s stockholders approved, the Company’s 2014 Employee Stock Purchase Plan (the “ESPP”), which became effective in December 2014. The ESPP initially reserved and authorized the issuance of up to 1,000,000 shares of common stock. The ESPP provides that the number of shares reserved and available for issuance under the ESPP automatically increases each April, beginning on April 1, 2015, by the lesser of 500,000 shares, 1% of the number of the Company’s common stock shares issued and outstanding on the immediately preceding March 31, or such lesser number of shares as determined by the Company’s board of directors. For the fiscal years ended March 31, 2022, 2021, and 2020, 0.2 million shares, 0.3 million shares, and 0.3 million shares of common stock were purchased under the ESPP, respectively, and a total of $4.2 million, $5.5 million, and $5.3 million of stock-based compensation expense was recorded, respectively. As of March 31, 2022, 2,987,542 shares of common stock were available for issuance under the ESPP.
2008 Equity Incentive Plan—The Company’s board of directors adopted, and the Company’s stockholders approved, the 2008 Equity Incentive Plan, or the 2008 Plan, in February 2008. The 2008 Plan was terminated in connection with the Company’s initial public offering (“IPO”), and accordingly, no shares are available for future issuance under this plan. The 2008 Plan continues to govern outstanding awards granted thereunder.
2014 Equity Incentive Plan—The Company’s board of directors adopted, and the Company’s stockholders approved, the Company’s 2014 Equity Incentive Plan (the “2014 Plan”), which became effective in December 2014. The 2014 Plan serves as the successor to the Company’s 2008 Plan. The 2014 Plan initially reserved and authorized the issuance of 5,000,000 shares of the Company’s common stock. Additionally, shares not issued or subject to outstanding grants under the 2008 Plan upon its termination became available under the 2014 Plan, resulting in a total of 5,184,878 available shares under the 2014 Plan as of the effective date of the 2014 Plan. Pursuant to the terms of the 2014 Plan, any shares subject to outstanding stock options or other stock awards under the 2008 Plan that (i) expire or terminate for any reason prior to exercise or settlement, (ii) are forfeited because of the failure to meet a contingency or condition required to vest such shares or otherwise return to the Company or (iii) are reacquired, withheld (or not issued) to satisfy a tax withholding obligation in connection with an award or to satisfy the purchase price or exercise price of a stock award will become available for issuance pursuant to awards granted under the 2014 Plan. The 2014 Plan provides that the number of shares reserved and available for issuance under the plan automatically increases each April 1, beginning on April 1, 2015, by 5% of the outstanding number of shares of the Company’s common stock shares issued and outstanding on the immediately preceding March 31, or such lesser number of shares as determined by the Company’s board of directors. As of March 31, 2022, there were 13,904,194 shares available for issuance under the 2014 Plan.
The following table summarizes the Company’s stock option, restricted stock unit (“RSU”), and performance unit (“PSU”) award activities for the fiscal year ended March 31, 2022 (in thousands, except exercise price, contractual term and fair value information):
 Options OutstandingRSUs OutstandingPSUs Outstanding
 Number of SharesWeighted-
Average
Exercise
Price		Weighted-Average Remaining Contractual Term (in years)Aggregate Intrinsic ValueNumber of
Shares		Weighted-
Average Grant
Date Fair Value		Weighted-
Average Remaining Contractual Term (in years)		Aggregate
Intrinsic
Value		Number of
Shares		Weighted-
Average Grant
Date Fair Value		Weighted-
Average Remaining Contractual Term (in years)		Aggregate
Intrinsic
Value
Outstanding—April 1, 20212,718 $50.55 6.2$48,064 3,293 $67.76 2.8$202,459 112 $99.05 2.0$6,884 
Granted (1)— — 2,710 69.94 241 82.89 
Exercised/vested(848)37.56 39,003 (1,472)67.32 (33)99.05 
Canceled/forfeited(207)70.77 (1,180)66.83 — 
Outstanding - March 31, 20221,663 $54.66 5.6$31,436 3,351 $70.04 2.6$224,096 320 $86.88 1.8$21,430 
Options vested and expected to vest - March 31, 20221,662 $54.65 5.6$31,436 
Options vested and exercisable - March 31, 20221,310 $50.66 5.0$30,233 
RSUs and PSUs expected to vest - March 31, 20223,173 $69.54 $212,235 305 $87.00 $20,370 
(1) The above table includes 241,398 performance unit awards and does not include any time-based restricted stock issued as consideration for an acquisition which are further detailed in the table below.
PSUs granted under the 2014 Plan are contingent upon the achievement of pre-determined market and service conditions. The number of shares of common stock to be issued at vesting will range from 0% to 200% of the target number based on the Company’s total shareholder return (“TSR”) relative to the performance of peer companies for each measurement period, over a one-year, two-year cumulative, and three-year cumulative period. If these market conditions are not met but service conditions are met, the PSUs will not vest; however, any stock-based compensation expense recognized to date will not be reversed. The Company uses a Monte Carlo simulation model to determine the fair value of its PSUs and recognizes expense using the accelerated attribution method over the requisite service period. The PSUs presented in the table above were calculated based on 100% expected achievement. In April 2022, subsequent to the year-end, 129,991 PSUs had vested.
The weighted-average grant-date fair value of options granted during the fiscal years ended March 31, 2022, 2021, and 2020 was $0.00, $26.51, and $30.67, respectively. Intrinsic value of options exercised during the fiscal years ended March 31, 2022, 2021, and 2020 was $39.0 million, $20.6 million, and $23.8 million, respectively. The total fair value of RSUs vested during the fiscal years ended March 31, 2022, 2021, and 2020 was $99.3 million, $107.1 million, and $63.3 million, respectively.
Aggregate intrinsic value for options, RSUs, and PSUs outstanding represents the difference between the closing stock price of the Company’s common stock and the exercise price of outstanding, in-the-money awards. The Company’s closing stock price as reported on the New York Stock Exchange as of March 31, 2022, the last trading day of fiscal 2022, was $66.88.
The following table summarizes the time-based restricted stock issued as consideration for an acquisition during the fiscal years ended March 31, 2022, 2021, and 2020:
Fiscal Years Ending March 31,
Number of Shares of Time-Based Restricted Stock Granted as Consideration for Acquisitions
2020
—
2021
736,469 (1)
2022
199,492 (2)
(1) These shares were issued in connection with the Pixie Labs acquisition, which included a holdback arrangement with certain employees of Pixie Labs. These shares are subject to the recipients’ continued service and will be recognized as stock-based compensation expense over the vesting periods, which range from 18 months to 37 months from the closing date of the acquisition.
(2) These shares were issued in connection with the CodeStream acquisition, which included a holdback arrangement with certain employees of CodeStream. These shares are subject to the recipients’ continued service and will be recognized as stock-based compensation expense over the vesting periods, which range from 18 months to 42 months from the closing date of the acquisition.
Employee Stock Options and ESPP Valuation—The Company estimates the fair value of stock options and ESPP shares on the date of grant using the Black-Scholes option-pricing model. Each of the Black-Scholes inputs is subjective and generally requires significant judgments to determine. The assumptions used to estimate the fair value of stock options granted and ESPP shares to be issued during the fiscal years ended March 31, 2022, 2021, and 2020 were as follows:
Stock Options:   
 Fiscal Year Ended March 31,
 202220212020
Expected term (years)066
Expected volatility
0 - 0%
44 - 46%
41 - 42%
Risk-free interest rate
0.00 - 0.00%
0.34 - 0.76%
1.45 - 3.06%
Dividend yield———
ESPP:   
 Fiscal Year Ended March 31,
 202220212020
Expected term (years)0.50.50.5
Expected volatility
38 - 76%
55 - 76%
33 - 60%
Risk-free interest rate
0.05 - 0.72%
0.06 - 0.12%
1.56 - 1.86%
Dividend yield———
Risk-Free Interest Rate
The Company bases the risk-free interest rate used in the Black-Scholes option-pricing model on the implied yield available on U.S. Treasury zero-coupon issues with an equivalent expected term of the options for each option group.
Expected Term
The Company determines the expected term based on the average period the stock options are expected to remain outstanding generally calculated as the midpoint of the stock options vesting term and contractual expiration period. The Company estimates the expected term for ESPP shares using the purchase period of 6 months.
Expected Volatility
Beginning in April 2020, the expected volatility for options granted is based on the historical volatility of the Company’s common stock. The expected volatility for options granted prior to April 2020 was based on the historical volatilities of our publicly traded peer group. The Company uses historical volatility data when valuing ESPP shares.
Dividend Yield
The expected dividend assumption is based on the Company’s current expectations about its anticipated dividend policy.        
Stock-Based Compensation Expense—Aggregate stock-based compensation expense for employees and nonemployees was $153.0 million, $135.1 million, and $99.5 million for the fiscal years ended March 31, 2022, 2021, and 2020, respectively. Cost of revenue, research and development, sales and marketing, and general and administrative expenses were as follows (in thousands):
 Fiscal Year Ended March 31,
 202220212020
Cost of revenue$5,042 $5,939 $5,303 
Research and development48,355 40,964 31,703 
Sales and marketing48,986 54,695 43,548 
General and administrative (1)
50,656 33,545 18,982 
Total stock-based compensation expense (2)
$153,039 $135,143 $99,536 
(1) Includes $9.6 million acceleration of share-based payment expense for the fiscal year ended March 31, 2022, for one of the Company’s executives due to his departure at the end of June 2021.
(2) Includes $0.5 million expense for the fiscal year ended March 31, 2022, due to the restructuring activities commenced in the first quarter of fiscal 2022. Refer to Note 18. Restructuring for more information.
As of March 31, 2022, unrecognized stock-based compensation cost related to outstanding unvested stock options was $9.8 million, which is expected to be recognized over a weighted-average period of approximately 1.8 years. As of March 31, 2022, unrecognized stock-based compensation cost related to outstanding unvested stock units was $251.7 million, which is expected to be recognized over a weighted-average period of approximately 2.5 years. As of March 31, 2022, unrecognized stock-based compensation cost related to PSUs was $10.0 million, which is expected to be recognized over a weighted-average period of approximately 1.8 years.