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Share-based Compensation
 9 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [Abstract]  
Share-based Compensation Share-based Compensation
Amended and Restated 2019 Equity Incentive Plan
In July 2019, the Company’s board of directors (the “Board”), upon the recommendation of the compensation committee of the board of directors, adopted the 2019 Equity Incentive Plan, as amended and restated (the “2019 Plan”) which was subsequently approved by the Company’s shareholders and was later amended and restated by the Board in January 2021.
The Company initially reserved 52,000,000 shares of common stock, or the Initial Limit, for the issuance of awards under the 2019 Plan. The 2019 Plan provides that the number of shares reserved and available for issuance under the plan will automatically increase each April 1, beginning on April 1, 2020, by 4% of the outstanding number of shares of the Company’s common stock on the immediately preceding March 31 or such lesser number determined by the compensation committee. This number is subject to adjustment in the event of a stock split, stock dividend or other change in the Company’s capitalization. As of December 31, 2021, 37,834,512 shares of common stock were available for future issuance under the 2019 Plan.
Stock options
The following table summarizes activity for stock options during the period ended December 31, 2021:
Number of Options
Weighted Average
Exercise Price
Weighted Average Remaining Contractual Term Aggregate Intrinsic Value
(in thousands)(per share)(years)(in thousands)
Balance, March 31, 20218,393 $21.31 8.6$226,438 
Granted115 52.86 
Exercised(1,170)20.22 
Forfeited(244)25.05 
Balance, December 31, 20217,094 $21.87 7.8$272,958 
Options vested and expected to vest at December 31, 20217,094 $21.87 7.8$272,958 
Options vested and exercisable at December 31, 20212,674 $19.68 7.7$108,749 
As of December 31, 2021, the total unrecognized compensation expense related to non-vested stock options is $37.0 million and is expected to be recognized over a weighted average period of 1.9 years. The Company recognized $5.6 million and $4.5 million of share-based compensation expense related to stock options for the three months ended December 31, 2021 and 2020, respectively, and $14.9 million and $12.3 million of share-based compensation expense related to stock options for the nine months ended December 31, 2021 and 2020, respectively.
Restricted shares and units
The following table provides a summary of the changes in the number of restricted stock awards (“RSAs”) and restricted stock units (“RSUs”) for the period ended December 31, 2021:
Number of
 RSAs
Weighted Average
Grant Date Fair Value
Number of RSUsWeighted Average
Grant Date Fair Value
(in thousands)(per share)(in thousands)(per share)
Balance, March 31, 2021728 $16.00 3,041 $24.44 
Granted— — 3,269 51.29 
Vested(440)16.00 (1,049)24.24 
Forfeited(19)16.00 (232)33.51 
Balance, December 31, 2021269 $16.00 5,029 $41.52 
RSUs outstanding as of December 31, 2021 were comprised of 4.0 million RSUs with only service conditions and 1.0 million RSUs with both service and performance conditions (“PSUs”).
During the three and nine months ended December 31, 2021, the Company granted PSUs to certain key employees that generally vest in three equal installments, with one-third of the PSUs eligible to vest on each of the first three anniversaries of the date of grant (the “Incentive PSUs”). The number of shares that may be earned pursuant to the Incentive PSUs is subject to the Company’s achievement of specific company metrics, and provided that the executive officer remains employed by the Company through the applicable vesting date. No Incentive PSUs will vest with respect to any year if the Company fails to achieve 95% of the applicable target for that year, and the overall number of shares that may be issued pursuant to the Incentive PSUs with respect to any year shall not exceed 150% of the target award for such year. The Incentive PSUs are not carried forward from year to year; if the Incentive PSUs are not earned in any given year, they are terminated for that year.
During the three and nine months ended December 31, 2021, the Company granted PSUs to certain key employees that vest 25% one year after the grant date and the remaining 75% vest ratably on a quarterly basis over the following three years (the “Annual PSUs”). The number of shares that may be earned pursuant to the Annual PSUs is based on specific company metrics related to the Company’s fiscal year ending March 31, 2022. No Annual PSUs will be earned with respect to any metric if the applicable “threshold” percentage of the specific metric is not achieved, and the overall number of shares that may be earned shall not exceed 150% of the target award. Once the Annual PSUs are earned, they are then also subject to time-based vesting, with 25% of the earned Annual PSUs vesting on the first anniversary of the grant date, and with the remaining 75% vesting in twelve equal quarterly installments over the following three years, and provided that the executive officer remains employed by the Company through the applicable vesting date.
Compensation expense for the PSUs are measured using the fair value at the date of grant and recorded over their respective vesting periods under the graded-vesting attribution method and may be adjusted over the vesting period based on interim estimates of performance against the pre-set objectives.
As of December 31, 2021, the total unrecognized compensation expense related to unvested restricted stock awards is $3.2 million and is expected to be recognized over a weighted average period of 0.8 years. As of December 31, 2021, the total unrecognized compensation expense related to unvested restricted stock units is $180.6 million and is expected to be recognized over a weighted average period of 2.5 years. The Company recognized $20.3 million and $9.6 million of share-based compensation expense related to restricted shares and units for the three months ended December 31, 2021 and 2020, respectively, and $53.4 million and $28.3 million of share-based compensation expense related to restricted shares and units for the nine months ended December 31, 2021 and 2020, respectively.
Employee Stock Purchase Plan
In July 2019, the board of directors adopted, and the Company’s shareholders approved, the 2019 Employee Stock Purchase Plan (“ESPP”). The Company expects to offer, sell and issue shares of common stock under this ESPP from time to time based on various factors and conditions, although the Company is under no obligation to sell any shares under this ESPP. The ESPP provides for six-month offering periods beginning May 15 and November 15 of each year, and each offering period will consist of six-month purchase periods. On each purchase date, eligible employees will purchase shares of the Company’s common stock at a price per share equal to 85% of the lesser of (1) the fair market value of the Company’s common stock on the offering date or (2) the fair market value of the Company’s common stock on the purchase date. For the nine months ended December 31, 2021, 371,740 shares of common stock were purchased under the ESPP. As of December 31, 2021, 11,187,354 shares of common stock were available for future issuance under the ESPP.
As of December 31, 2021, there was approximately $2.3 million of unrecognized share-based compensation related to the ESPP that is expected to be recognized over the remaining term of the current offering period. The Company recognized $1.2 million and $1.5 million of share-based compensation expense related to the ESPP for the three months ended December 31, 2021 and 2020, respectively, and $3.6 million and $2.5 million of share-based compensation expense related to the ESPP for the nine months ended December 31, 2021 and 2020, respectively.
Share-based compensation
The following table summarizes the components of total share-based compensation expense included in the condensed consolidated financial statements for each period presented (in thousands):
Three Months Ended December 31,Nine Months Ended December 31,
2021202020212020
Cost of revenue$3,405 $2,066 $9,542 $5,430 
Research and development5,908 3,259 15,331 8,666 
Sales and marketing9,267 6,480 26,487 18,007 
General and administrative8,543 3,783 20,590 10,988 
Total share-based compensation$27,123 $15,588 $71,950 $43,091