View Filing Data

Summary of Significant Accounting Policies

Correction of an Immaterial Error in Previously Issued Financial Statements

Subsequent to the issuance of the financial statements for the year ended March 31, 2018 and for the interim periods in fiscal 2019, the Company concluded that the Statement of Operations for fiscal 2018 and the interim periods contained an immaterial error related to the classification of legal fees related to intellectual property as Research and Development expenses and not General and Administrative expenses. These immaterial errors have been corrected for the comparative period shown by reclassifying $858 and $1,555 from Research and Development expense to General and Administrative expense for the three and six months ended September 30, 2018. This immaterial error did not have any impact on our financial position, net loss or cash flow.

Recently Issued Accounting Standards

Leases

In February 2016, the Financial Accounting Standards Board (“FASB”) issued accounting standards update (“ASU”) No. 2016-02, Leases. Under the new guidance, the Company is required to recognize a lease liability and a right-of-use asset for leases. The Company adopted the new guidance on April 1, 2019 using the optional transition method, which allows for the prospective application of the standard, and as a result, the Company did not record an adjustment to retained earnings. In addition, the Company elected the package of practical expedients, for all of its leases, permitted under the transition guidance within the standard, which allowed the Company to carry forward its historical lease classification, to not reassess prior conclusions related to initial direct costs and to not reassess whether any expired or existing contracts are or contain leases. The Company also elected the lessee practical expedient to combine lease and non-lease components for new leases and modified leases. The Company also made an accounting policy election in accordance with the new standard to apply accounting similar to ASC 840 to short-term leases, which are defined as leases that have a term of twelve months or less. The new guidance does not have any impact on the Statement of Operations or Statement of Cash Flows.

Credit Losses on Financial Instruments

In June 2016, the FASB issued ASU 2016-13 “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (ASU 2016-13). The standard amends guidance on the impairment of financial instruments. The ASU estimates credit losses based on expected losses and provides for a simplified accounting model for purchased financial assets with credit deterioration. The standard requires a modified retrospective basis adoption through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The amendments of this ASU are effective for the Company's fiscal 2021. The Company is currently assessing the impact the adoption of ASU 2016-13 will have on the financial statements.

There have been no other additional significant changes in the Company’s accounting policies during the six months ended September 30, 2019 as compared to the significant accounting policies described in its Annual Report on Form 10-K for the year ended March 31, 2019 and to the changes disclosed above.

Concentration of Credit Risk

The Company grants credit to customers in a wide variety of industries worldwide and generally does not require collateral. Credit losses relating to these customers have been minimal.

Sales through the Company’s distribution agreement with Arrow Enterprise Computing Solutions, Inc. (“Arrow”) totaled 37% and 36% of total revenues for the six months ended September 30, 2019 and 2018, respectively. Arrow accounted for 31% of total accounts receivable as of September 30, 2019 and 38% of total accounts receivable as of March 31, 2019.

Fair Value of Financial Instruments

The carrying amounts of the Company’s cash and cash equivalents, accounts receivable and accounts payable approximate their fair values due to the short-term maturity of these instruments. The Company’s cash equivalents balance consists primarily of money market funds. The Company’s short-term investments balance consists of U.S. Treasury Bills with maturities of one year or less. The Company accounts for its short-term investments as held to maturity.

The following table summarizes the composition of the Company’s financial assets measured at fair value at September 30, 2019 and March 31, 2019:



September 30, 2019	Level 1		Level 2	Level 3	Total
Cash equivalents	$	—	—	—	$	—
Short-term investments	$	—	97,619	—	$	97,619



March 31, 2019	Level 1		Level 2	Level 3	Total
Cash equivalents	$	102,702	—	—	$	102,702
Short-term investments	$	—	131,937	—	$	131,937

Revenue

6 Months Ended

Sep. 30, 2019

Revenue

The Company derives revenues from two primary sources: software and products, and services. Software and products revenue includes the Company's software and integrated appliances that combine the Company's software with hardware. Services include customer support (software updates and technical support), consulting, assessment and design services, installation services and customer education. A typical contract includes both licenses and services.

Historically, the Company’s software licenses typically provide for a perpetual right to use the Company’s software. The Company also sells term-based software licenses that expire, which are referred to as subscription arrangements. The Company does not customize its software and installation services are not required. The software is delivered before related services are provided and is functional without professional services, updates and technical support. The Company has concluded that its software license is functional intellectual property that is distinct as the user can benefit from the software on its own. Software revenue is typically recognized when the software is delivered and/or made available for download as this is the point the user of the software can direct the use of, and obtain substantially all of the remaining benefits from the functional intellectual property. The Company does not recognize software revenue related to the renewal of subscription software licenses earlier than the beginning of the subscription period.

Services revenue includes revenue from customer support and other professional services. Customer support includes software updates on a when-and-if-available basis, telephone support, integrated web-based support and bug fixes or patches. The Company sells its customer support contracts as a percentage of net software purchases the support is related to. Customer support revenue is recognized ratably over the term of the customer support agreement, which is typically one year.

The Company’s other professional services include consulting, assessment and design services, installation services and customer education. Customer education services include courses taught by the Company’s instructors or third-party contractors. Revenue related to other professional services and customer education services is typically recognized as the services are performed.

Most of the Company’s contracts with customers contain multiple performance obligations. For these contracts, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. Standalone selling prices of software and appliances are typically estimated using the residual approach. Standalone selling prices of services are typically estimated based on observable transactions when these services are sold on a standalone basis.

The Company’s typical performance obligations include the following:



Performance Obligation	When Performance Obligation is Typically Satisfied	When Payment is Typically Due	How Standalone Selling Price is Typically Estimated
Software and Products Revenue
Software Licenses	Upon shipment or made available for download (point in time)	Within 90 days of shipment except for certain subscription licenses which are paid for over time	Residual approach
Appliances	When control of the appliances passes to the customer; typically upon delivery	Within 90 days of delivery	Residual approach
Customer Support Revenue
Software Updates	Ratably over the course of the support contract (over time)	At the beginning of the contract period	Observable in renewal transactions
Customer Support	Ratably over the course of the support contract (over time)	At the beginning of the contract period	Observable in renewal transactions
Professional Services
Other Professional Services (except for education services)	As work is performed (over time)	Within 90 days of services being performed	Observable in transactions without multiple performance obligations
Education Services	When the class is taught (point in time)	Within 90 days of services being performed	Observable in transactions without multiple performance obligations

Disaggregation of Revenue

The Company disaggregates revenue from contracts with customers into the nature of the products and services and geographical regions. The geographic regions that are tracked are the Americas (United States, Canada, Latin America), EMEA (Europe, Middle East, Africa) and APAC (Australia, New Zealand, Southeast Asia, China). The Company operates in one segment.



	Three Months Ended September 30, 2019
	Americas		EMEA		APAC		Total
Software and Products Revenue	$	35,863	$	21,440	$	11,292	$	68,595
Customer Support Revenue	57,864		21,906		10,233		90,003
Professional Services	4,430		2,680		1,874		8,984
Total Revenue	$	98,157	$	46,026	$	23,399	$	167,582



	Three Months Ended September 30, 2018
	Americas		EMEA		APAC		Total
Software and Products Revenue	$	41,376	$	17,526	$	10,602	$	69,504
Customer Support Revenue	59,675		20,443		9,489		89,607
Professional Services	5,489		2,705		1,773		9,967
Total Revenue	$	106,540	$	40,674	$	21,864	$	169,078



	Six Months Ended September 30, 2019
	Americas		EMEA		APAC		Total
Software and Products Revenue	$	67,084	$	42,815	$	22,370	$	132,269
Customer Support Revenue	115,594		43,573		20,318		179,485
Professional Services	9,296		5,362		3,373		18,031
Total Revenue	$	191,974	$	91,750	$	46,061	$	329,785



	Six Months Ended September 30, 2018
	Americas		EMEA		APAC		Total
Software and Products Revenue	$	83,492	$	39,551	$	21,511	$	144,554
Customer Support Revenue	120,101		40,802		19,110		180,013
Professional Services	11,274		5,931		3,483		20,688
Total Revenue	$	214,867	$	86,284	$	44,104	$	345,255

Information about Contract Balances

Amounts collected in advance of services being provided are accounted for as deferred revenue. Nearly all of the Company's deferred revenue balance is related to services revenue, primarily customer support contracts.

In certain contracts the Company allows customers to pay for term-based, or subscription, software licenses and products over the term of the license. Amounts recognized as revenue in excess of amounts billed are recorded as unbilled receivables. Unbilled receivables which are anticipated to be invoiced in the next twelve months are included in Accounts receivable on the consolidated balance sheet. Long term unbilled receivables are included in Other assets. The opening and closing balances of the Company’s accounts receivable, unbilled receivables, and deferred revenues are as follows:



	Accounts Receivable			Unbilled Receivable (current)			Unbilled Receivable (long-term)		Deferred Revenue (current)			Deferred Revenue (long-term)
Opening Balance as of March 31, 2019	$	161,570		$	15,266		$	7,216	$	238,439		$	99,257
Increase/(decrease), net	(48,377		)	(866		)	727		(11,507		)	(4,846		)
Ending Balance as of September 31, 2019	$	113,193		$	14,400		$	7,943	$	226,932		$	94,411

The decrease in accounts receivable is primarily a result of a concentration of customer support renewals in the second half of the prior year, a decrease in software and products revenue relative to the fourth quarter of the prior year and improved linearity in software and products revenue relative to the fourth quarter. The decrease in deferred revenue is primarily the result of a strengthening of the U.S. dollar and a decrease in deferred customer support revenue related to software and products revenue transactions and customer support renewals relative to the fourth quarter of fiscal 2019.

The amount of revenue recognized in fiscal 2020 that was included in the March 31, 2019 balance of deferred revenue was $68,273 and $156,185 for the three and six months ended September 30, 2019, respectively. The vast majority of this revenue consists of customer support arrangements. The amount of software and products revenue recognized in the three and six months ended September 30, 2019 related to performance obligations from prior periods was not significant.

Remaining Performance Obligations

In addition to the amounts included in deferred revenue as of September 30, 2019, $26,543 of revenue may be recognized from remaining performance obligations, of which $3,090 was related to software and products. The Company expects the majority of this software and products revenue to be recognized next quarter. The vast majority of the services revenue is related to other professional services which may be recognized over the next twelve months but is contingent upon a number of factors, including customers’ needs and schedules.

Net Income per Common Share	6 Months Ended
Net Income per Common Share	Sep. 30, 2019
Earnings Per Share [Abstract]
Net Income per Common Share	Net Income per Common Share The diluted weighted average shares outstanding exclude outstanding stock options, restricted stock units, performance restricted stock units and shares to be purchased under the employee stock purchase plan totaling 4,780 and 1,024 for the three months ended September 30, 2019 and 2018, respectively, and 4,810 and 5,874 for the six months ended September 30, 2019 and 2018, because the effect would have been anti-dilutive.

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies From time to time, the Company is subject to claims in legal proceedings arising in the normal course of business. The Company does not believe that it is currently party to any pending legal action that could reasonably be expected to have a material adverse effect on its business or operating results.

Capitalization	6 Months Ended
Capitalization	Sep. 30, 2019
Equity [Abstract]
Capitalization	Capitalization As of September 30, 2019, $159,974 remained in the Company's current stock repurchase authorization which expires on March 31, 2020.

Stock Plans

6 Months Ended

Sep. 30, 2019

Restructuring and Related Activities [Abstract]

Stock Plans

The following table presents the stock-based compensation expense included in Cost of services revenue, Sales and marketing, Research and development, General and administrative and Restructuring expenses for the three and six months ended September 30, 2019 and 2018. Stock-based compensation is attributable to stock options, restricted stock units, performance based awards and the employee stock purchase plan.



	Three Months Ended September 30,				Six Months Ended September 30,
	2019		2018		2019		2018
Cost of services revenue	$	698	$	756	$	1,388	$	1,512
Sales and marketing	7,359		9,071		15,005		18,595
Research and development	2,011		2,274		4,004		4,489
General and administrative	4,184		5,345		8,237		9,944
Restructuring	605		304		973		1,214
Stock-based compensation expense	$	14,857	$	17,750	$	29,607	$	35,754

As of September 30, 2019, there was $72,944 of unrecognized stock-based compensation expense related to non-vested stock option and restricted stock unit awards that is expected to be recognized over a weighted average period of 1.75 years. The Company accounts for forfeitures as they occur. To the extent that awards are forfeited, stock-based compensation will be different from the Company’s current estimate.

Restricted Stock Units

Restricted stock unit activity for the six months ended September 30, 2019 is as follows:



Non-vested Restricted Stock Units	Number of Awards		Weighted Average Grant Date Fair Value
Non-vested as of March 31, 2019	1,831		$	62.58
Awarded	508		48.17
Vested	(475	)	60.66
Forfeited	(127	)	63.86
Non-vested as of September 30, 2019	1,737		$	58.75

The weighted average fair value of restricted stock units awarded was $43.39 and $48.17 per unit during the three and six months ended September 30, 2019, and $67.41 and $71.11 per unit during the three and six months ended September 30, 2018. The weighted average fair value of awards includes the awards with a market condition described below.

Performance Based Awards

In the six months ended September 30, 2019, the Company granted 88 performance restricted stock units ("PSU") to certain executives. Vesting of these awards is contingent upon i) the Company meeting certain company-wide revenue and non-GAAP performance goals (performance-based) in fiscal 2020 and ii) the Company's customary service periods. The awards vest over three years and have a maximum potential to vest at 200% (176 shares) based on actual fiscal 2020 performance. The related stock-based compensation expense is determined based on the value of the underlying shares on the date of grant and is recognized over the vesting term using the accelerated method. During the interim financial periods, management estimates the probable number of PSU’s that would vest until the ultimate achievement of the performance goals is known. The awards are included in the restricted stock unit table.

Awards with a Market Condition

In the six months ended September 30, 2019, the Company granted 88 market performance stock units to certain executives. The vesting of these awards is contingent upon the Company meeting certain total shareholder return ("TSR") levels as compared to the Russell 3000 market index over the next three years. The awards vest in three annual tranches and have a maximum potential to vest at 200% (176 shares) based on TSR performance. The related stock-based compensation expense is determined based on the estimated fair value of the underlying shares on the date of grant and is recognized using the accelerated method over the vesting term. The estimated fair value was calculated using a Monte Carlo simulation model. The fair value of the awards granted during the six months ended September 30, 2019 was $48.26 per unit. The awards are included in the restricted stock unit table.

Income Taxes	6 Months Ended
Income Taxes	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesIncome tax expense was $2,571 in the six months ended September 30, 2019 compared to an expense of $3,912 in the six months ended September 30, 2018. In fiscal 2018 the Company determined that it was more likely than not that it will not realize the benefits of its gross deferred tax assets and therefore recorded a valuation allowance to reduce the carrying value of these gross deferred tax assets, net of the impact of the reversal of taxable temporary differences, to zero. The Company’s position remains unchanged as of the period ending September 30, 2019. The tax expense for the six months ended September 30, 2019 relates primarily to current foreign taxes.

Restructuring

6 Months Ended

Sep. 30, 2019

Restructuring

In fiscal 2019, the Company initiated a restructuring plan to increase efficiency in its sales, marketing and distribution functions as well as reduce costs across all functional areas. During the quarter, the Company incurred total restructuring charges of $12,851. These restructuring charges relate primarily to severance and related costs associated with headcount reductions and lease abandonment charges associated with three office leases. These charges include $605 of stock-based compensation related to modifications of existing unvested awards granted to certain employees impacted by the restructuring plan.

The activity in the Company’s restructuring accruals for the three and six months ended September 30, 2019 and 2018 is summarized as follows:



	Three Months Ended September 30,
	2019			2018
Balance at June 30	$	2,218		$	3,319
Restructuring charges⁽¹⁾	11,737			494
Payments	(3,597		)	(2,050		)
Accrual reversals	—			—
Balance at September 30	$	10,358		$	1,763



	Six Months Ended September 30,
	2019			2018
Balance at March 31	$	1,089		$	—
Restructuring charges⁽¹⁾	14,880			8,389
Payments	(5,611		)	(6,626		)
Accrual reversals	—			—
Balance at September 30	$	10,358		$	1,763

(1) Restructuring charges of $11,737 and $14,880 in the tables above do not include restructuring charges for one of the Company's leases in the amount of $1,114 and three in the amount of $2,050 for the three and six months ended September 30, 2019, respectively. Under the new lease standard (ASC 842) the Company is now required to account for the impairment as charge to the Statement of Operations and a reduction in the carrying amount of the right-of-use asset.

As of September 30, 2019, the outstanding restructuring accruals primarily relate to future severance payments.

Leases

6 Months Ended

Sep. 30, 2019

Leases

The Company’s lease liabilities relate primarily to operating leases for its global office infrastructure. These operating leases expire at various dates through fiscal 2026. The Company records lease liabilities at the present value of the lease payments not yet paid, discounted at the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term. As the Company's leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

The Company recognizes operating lease costs over the estimated term of the lease, which includes options to extend lease terms that are reasonably certain of being exercised, starting when possession of the property is taken from the landlord. When a lease contains a predetermined fixed escalation of the minimum rent, the Company recognizes the related operating lease cost on a straight-line basis over the lease term.

In addition, certain of the Company’s lease agreements include variable lease payments, such as estimated tax and maintenance charges. These variable lease payments are excluded from minimum lease payments and are included in the determination of lease cost when it is probable that the expense has been incurred and the amount can be reasonably estimated.

As of September 30, 2019, the Company did not have any finance leases.

Net lease cost recognized on our Condensed Consolidated Statement of Operations is summarized as follows:



	Three Months Ended September 30, 2019		Six Months Ended September 30, 2019
Operating Lease Cost	$	2,302	$	4,843
Short-term Lease Cost	118		237
Variable Lease Cost	507		749
Net Lease Cost	$	2,927	$	5,829

As of September 30, 2019, the maturities of lease liabilities based on the total minimum lease commitment amount including options to extend lease terms that are reasonably certain of being exercised are as follows:



Remainder of FY 2020	$	3,856
FY 2021	7,241
FY 2022	4,227
FY 2023	1,964
FY 2024	1,362
Thereafter	1,714
Total Minimum Lease Payments	$	20,364
Less: Imputed Interest	(2,046		)
Present value of operating lease liabilities	$	18,318
Less: Current Portion of operating lease liabilities	7,832
Long-term operating lease liabilities	$	10,486

During the three and six months ended September 30, 2019, additions of operating lease assets were $3,705 and $5,305, respectively. As of September 30, 2019 the minimum lease commitment amount for operating leases signed but not yet commenced, was immaterial.

As of September 30, 2019, the weighted-average remaining operating lease term was 3.35 years and the weighted-average discount rate was 4% for operating leases recognized in the Condensed Consolidated Balance Sheet.

Subsequent Events	6 Months Ended
Subsequent Events	Sep. 30, 2019
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On September 3, 2019, a wholly owned subsidiary of the Company, entered into a definitive purchase agreement to acquire substantially all the assets of Hedvig, Inc., a California based software-defined storage (SDS) innovator for total consideration of approximately $225 million, subject to customary transaction adjustments, which includes the purchase price and ongoing employee retention in the form of cash and stock-based compensation. The transaction closed on October 1, 2019. As the transaction occurred subsequent to period-end, the Company is still evaluating the purchase price allocation of the transaction but expects the primary assets acquired to be intangible assets and goodwill. Acquired tangible assets and assumed liabilities are expected to be immaterial. The allocation is expected to be finalized during the third quarter of fiscal 2020.

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2019
Accounting Policies [Abstract]
Basis of Presentation	The consolidated financial statements as of September 30, 2019 and for the three and six months ended September 30, 2019 and 2018 are unaudited, and in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the results for the interim periods. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the financial statements and notes in the Company’s Annual Report on Form 10-K for fiscal 2019. The results reported in these financial statements should not necessarily be taken as indicative of results that may be expected for the entire fiscal year.
Use of Estimates	The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make judgments and estimates that affect the amounts reported in the Company’s consolidated financial statements and the accompanying notes. The Company bases its estimates and judgments on historical experience and on various other assumptions that it believes are reasonable under the circumstances. The amounts of assets and liabilities reported in the Company’s balance sheets and the amounts of revenues and expenses reported for each of its periods presented are affected by estimates and assumptions, which are used for, but not limited to, the accounting for revenue recognition, income taxes and related reserves, stock-based compensation and accounting for research and development costs. Actual results could differ from those estimates.
Recently Issued Accounting Standards	Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued accounting standards update (“ASU”) No. 2016-02, Leases. Under the new guidance, the Company is required to recognize a lease liability and a right-of-use asset for leases. The Company adopted the new guidance on April 1, 2019 using the optional transition method, which allows for the prospective application of the standard, and as a result, the Company did not record an adjustment to retained earnings. In addition, the Company elected the package of practical expedients, for all of its leases, permitted under the transition guidance within the standard, which allowed the Company to carry forward its historical lease classification, to not reassess prior conclusions related to initial direct costs and to not reassess whether any expired or existing contracts are or contain leases. The Company also elected the lessee practical expedient to combine lease and non-lease components for new leases and modified leases. The Company also made an accounting policy election in accordance with the new standard to apply accounting similar to ASC 840 to short-term leases, which are defined as leases that have a term of twelve months or less. The new guidance does not have any impact on the Statement of Operations or Statement of Cash Flows. Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13 “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (ASU 2016-13). The standard amends guidance on the impairment of financial instruments. The ASU estimates credit losses based on expected losses and provides for a simplified accounting model for purchased financial assets with credit deterioration. The standard requires a modified retrospective basis adoption through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The amendments of this ASU are effective for the Company's fiscal 2021. The Company is currently assessing the impact the adoption of ASU 2016-13 will have on the financial statements. There have been no other additional significant changes in the Company’s accounting policies during the six months ended September 30, 2019 as compared to the significant accounting policies described in its Annual Report on Form 10-K for the year ended March 31, 2019 and to the changes disclosed above.
Concentration of Credit Risk	The Company grants credit to customers in a wide variety of industries worldwide and generally does not require collateral. Credit losses relating to these customers have been minimal.
Fair Value of Financial Instruments	The carrying amounts of the Company’s cash and cash equivalents, accounts receivable and accounts payable approximate their fair values due to the short-term maturity of these instruments. The Company’s cash equivalents balance consists primarily of money market funds. The Company’s short-term investments balance consists of U.S. Treasury Bills with maturities of one year or less. The Company accounts for its short-term investments as held to maturity.
Revenue	The Company derives revenues from two primary sources: software and products, and services. Software and products revenue includes the Company's software and integrated appliances that combine the Company's software with hardware. Services include customer support (software updates and technical support), consulting, assessment and design services, installation services and customer education. A typical contract includes both licenses and services. Historically, the Company’s software licenses typically provide for a perpetual right to use the Company’s software. The Company also sells term-based software licenses that expire, which are referred to as subscription arrangements. The Company does not customize its software and installation services are not required. The software is delivered before related services are provided and is functional without professional services, updates and technical support. The Company has concluded that its software license is functional intellectual property that is distinct as the user can benefit from the software on its own. Software revenue is typically recognized when the software is delivered and/or made available for download as this is the point the user of the software can direct the use of, and obtain substantially all of the remaining benefits from the functional intellectual property. The Company does not recognize software revenue related to the renewal of subscription software licenses earlier than the beginning of the subscription period. Services revenue includes revenue from customer support and other professional services. Customer support includes software updates on a when-and-if-available basis, telephone support, integrated web-based support and bug fixes or patches. The Company sells its customer support contracts as a percentage of net software purchases the support is related to. Customer support revenue is recognized ratably over the term of the customer support agreement, which is typically one year. The Company’s other professional services include consulting, assessment and design services, installation services and customer education. Customer education services include courses taught by the Company’s instructors or third-party contractors. Revenue related to other professional services and customer education services is typically recognized as the services are performed. Most of the Company’s contracts with customers contain multiple performance obligations. For these contracts, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. Standalone selling prices of software and appliances are typically estimated using the residual approach. Standalone selling prices of services are typically estimated based on observable transactions when these services are sold on a standalone basis. Amounts collected in advance of services being provided are accounted for as deferred revenue. Nearly all of the Company's deferred revenue balance is related to services revenue, primarily customer support contracts. In certain contracts the Company allows customers to pay for term-based, or subscription, software licenses and products over the term of the license. Amounts recognized as revenue in excess of amounts billed are recorded as unbilled receivables. Unbilled receivables which are anticipated to be invoiced in the next twelve months are included in Accounts receivable on the consolidated balance sheet. Long term unbilled receivables are included in Other assets.
Leases	The Company’s lease liabilities relate primarily to operating leases for its global office infrastructure. These operating leases expire at various dates through fiscal 2026. The Company records lease liabilities at the present value of the lease payments not yet paid, discounted at the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term. As the Company's leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company recognizes operating lease costs over the estimated term of the lease, which includes options to extend lease terms that are reasonably certain of being exercised, starting when possession of the property is taken from the landlord. When a lease contains a predetermined fixed escalation of the minimum rent, the Company recognizes the related operating lease cost on a straight-line basis over the lease term. In addition, certain of the Company’s lease agreements include variable lease payments, such as estimated tax and maintenance charges. These variable lease payments are excluded from minimum lease payments and are included in the determination of lease cost when it is probable that the expense has been incurred and the amount can be reasonably estimated.

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Sep. 30, 2019

Financial Assets Measured at Fair Value

The following table summarizes the composition of the Company’s financial assets measured at fair value at September 30, 2019 and March 31, 2019:



September 30, 2019	Level 1		Level 2	Level 3	Total
Cash equivalents	$	—	—	—	$	—
Short-term investments	$	—	97,619	—	$	97,619



March 31, 2019	Level 1		Level 2	Level 3	Total
Cash equivalents	$	102,702	—	—	$	102,702
Short-term investments	$	—	131,937	—	$	131,937

Revenue (Tables)

6 Months Ended

Sep. 30, 2019

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction

The Company’s typical performance obligations include the following:



Performance Obligation	When Performance Obligation is Typically Satisfied	When Payment is Typically Due	How Standalone Selling Price is Typically Estimated
Software and Products Revenue
Software Licenses	Upon shipment or made available for download (point in time)	Within 90 days of shipment except for certain subscription licenses which are paid for over time	Residual approach
Appliances	When control of the appliances passes to the customer; typically upon delivery	Within 90 days of delivery	Residual approach
Customer Support Revenue
Software Updates	Ratably over the course of the support contract (over time)	At the beginning of the contract period	Observable in renewal transactions
Customer Support	Ratably over the course of the support contract (over time)	At the beginning of the contract period	Observable in renewal transactions
Professional Services
Other Professional Services (except for education services)	As work is performed (over time)	Within 90 days of services being performed	Observable in transactions without multiple performance obligations
Education Services	When the class is taught (point in time)	Within 90 days of services being performed	Observable in transactions without multiple performance obligations

Disaggregation of Revenue



	Three Months Ended September 30, 2019
	Americas		EMEA		APAC		Total
Software and Products Revenue	$	35,863	$	21,440	$	11,292	$	68,595
Customer Support Revenue	57,864		21,906		10,233		90,003
Professional Services	4,430		2,680		1,874		8,984
Total Revenue	$	98,157	$	46,026	$	23,399	$	167,582



	Three Months Ended September 30, 2018
	Americas		EMEA		APAC		Total
Software and Products Revenue	$	41,376	$	17,526	$	10,602	$	69,504
Customer Support Revenue	59,675		20,443		9,489		89,607
Professional Services	5,489		2,705		1,773		9,967
Total Revenue	$	106,540	$	40,674	$	21,864	$	169,078



	Six Months Ended September 30, 2019
	Americas		EMEA		APAC		Total
Software and Products Revenue	$	67,084	$	42,815	$	22,370	$	132,269
Customer Support Revenue	115,594		43,573		20,318		179,485
Professional Services	9,296		5,362		3,373		18,031
Total Revenue	$	191,974	$	91,750	$	46,061	$	329,785



	Six Months Ended September 30, 2018
	Americas		EMEA		APAC		Total
Software and Products Revenue	$	83,492	$	39,551	$	21,511	$	144,554
Customer Support Revenue	120,101		40,802		19,110		180,013
Professional Services	11,274		5,931		3,483		20,688
Total Revenue	$	214,867	$	86,284	$	44,104	$	345,255

Contract with Customer, Asset and Liability

The opening and closing balances of the Company’s accounts receivable, unbilled receivables, and deferred revenues are as follows:



	Accounts Receivable			Unbilled Receivable (current)			Unbilled Receivable (long-term)		Deferred Revenue (current)			Deferred Revenue (long-term)
Opening Balance as of March 31, 2019	$	161,570		$	15,266		$	7,216	$	238,439		$	99,257
Increase/(decrease), net	(48,377		)	(866		)	727		(11,507		)	(4,846		)
Ending Balance as of September 31, 2019	$	113,193		$	14,400		$	7,943	$	226,932		$	94,411

Stock Plans (Tables)

6 Months Ended

Sep. 30, 2019

Schedule of Stock-Based Compensation Expense



	Three Months Ended September 30,				Six Months Ended September 30,
	2019		2018		2019		2018
Cost of services revenue	$	698	$	756	$	1,388	$	1,512
Sales and marketing	7,359		9,071		15,005		18,595
Research and development	2,011		2,274		4,004		4,489
General and administrative	4,184		5,345		8,237		9,944
Restructuring	605		304		973		1,214
Stock-based compensation expense	$	14,857	$	17,750	$	29,607	$	35,754

Schedule of Restricted Stock Unit Activity

Restricted stock unit activity for the six months ended September 30, 2019 is as follows:



Non-vested Restricted Stock Units	Number of Awards		Weighted Average Grant Date Fair Value
Non-vested as of March 31, 2019	1,831		$	62.58
Awarded	508		48.17
Vested	(475	)	60.66
Forfeited	(127	)	63.86
Non-vested as of September 30, 2019	1,737		$	58.75

Restructuring (Tables)

6 Months Ended

Sep. 30, 2019

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs

The activity in the Company’s restructuring accruals for the three and six months ended September 30, 2019 and 2018 is summarized as follows:



	Three Months Ended September 30,
	2019			2018
Balance at June 30	$	2,218		$	3,319
Restructuring charges⁽¹⁾	11,737			494
Payments	(3,597		)	(2,050		)
Accrual reversals	—			—
Balance at September 30	$	10,358		$	1,763



	Six Months Ended September 30,
	2019			2018
Balance at March 31	$	1,089		$	—
Restructuring charges⁽¹⁾	14,880			8,389
Payments	(5,611		)	(6,626		)
Accrual reversals	—			—
Balance at September 30	$	10,358		$	1,763

Leases (Tables)

6 Months Ended

Sep. 30, 2019

Net Lease Cost Recognized on Condensed Consolidated Statement of Operations

Net lease cost recognized on our Condensed Consolidated Statement of Operations is summarized as follows:



	Three Months Ended September 30, 2019		Six Months Ended September 30, 2019
Operating Lease Cost	$	2,302	$	4,843
Short-term Lease Cost	118		237
Variable Lease Cost	507		749
Net Lease Cost	$	2,927	$	5,829

Maturities of Lease Liabilities



Remainder of FY 2020	$	3,856
FY 2021	7,241
FY 2022	4,227
FY 2023	1,964
FY 2024	1,362
Thereafter	1,714
Total Minimum Lease Payments	$	20,364
Less: Imputed Interest	(2,046		)
Present value of operating lease liabilities	$	18,318
Less: Current Portion of operating lease liabilities	7,832
Long-term operating lease liabilities	$	10,486

Summary of Significant Accounting Policies - Correction of an Immaterial Error in Previously Issued Financial Statements (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Research and development	$ 23,227	$ 23,649	$ 46,807	$ 47,746
General and administrative	$ 24,753	24,862	$ 47,260	48,101
Immaterial error related to classification of legal fees related to intellectual property
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Research and development		(858)		(1,555)
General and administrative		$ 858		$ 1,555

Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) - Customer Concentration Risk - Arrow	3 Months Ended	6 Months Ended
	Mar. 31, 2019	Sep. 30, 2019	Sep. 30, 2018
Revenue
Concentration Risk [Line Items]
Concentration risk percentage		37.00%	36.00%
Accounts receivable
Concentration Risk [Line Items]
Concentration risk percentage	38.00%	31.00%

Summary of Significant Accounting Policies - Summary of Fair Value of Financial Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Mar. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	$ 0	$ 102,702
Short-term investments	97,619	131,937
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	102,702
Short-term investments	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Short-term investments	97,619	131,937
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Short-term investments	$ 0	$ 0

Revenue - Additional Information (Details) $ in Thousands	3 Months Ended	6 Months Ended
Revenue - Additional Information (Details) $ in Thousands	Sep. 30, 2019 USD ($)	Sep. 30, 2019 USD ($) revenue_source segment
Revenue from Contract with Customer [Abstract]
Sources of primary revenue \| revenue_source		2
Customer support agreement term		1 year
Number of operating segments \| segment		1
Revenue recognized in period, included in opening deferred revenue balance	$ 68,273	$ 156,185
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue expected to be recognized from remaining performance obligations	26,543	26,543
Software and Products Revenue
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue expected to be recognized from remaining performance obligations	$ 3,090	$ 3,090

Revenue - Performance Obligations (Details)	6 Months Ended
Revenue - Performance Obligations (Details)	Sep. 30, 2019
Software, licenses
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation, expected payment terms	90 days
Software, appliances
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation, expected payment terms	90 days
Professional Services, other
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation, expected payment terms	90 days
Professional Services, education services
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation, expected payment terms	90 days

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Disaggregation of Revenue [Line Items]
Total Revenue	$ 167,582	$ 169,078	$ 329,785	$ 345,255
Americas
Disaggregation of Revenue [Line Items]
Total Revenue	98,157	106,540	191,974	214,867
EMEA
Disaggregation of Revenue [Line Items]
Total Revenue	46,026	40,674	91,750	86,284
APAC
Disaggregation of Revenue [Line Items]
Total Revenue	23,399	21,864	46,061	44,104
Software and Products Revenue
Disaggregation of Revenue [Line Items]
Total Revenue	68,595	69,504	132,269	144,554
Software and Products Revenue \| Americas
Disaggregation of Revenue [Line Items]
Total Revenue	35,863	41,376	67,084	83,492
Software and Products Revenue \| EMEA
Disaggregation of Revenue [Line Items]
Total Revenue	21,440	17,526	42,815	39,551
Software and Products Revenue \| APAC
Disaggregation of Revenue [Line Items]
Total Revenue	11,292	10,602	22,370	21,511
Customer Support Revenue
Disaggregation of Revenue [Line Items]
Total Revenue	90,003	89,607	179,485	180,013
Customer Support Revenue \| Americas
Disaggregation of Revenue [Line Items]
Total Revenue	57,864	59,675	115,594	120,101
Customer Support Revenue \| EMEA
Disaggregation of Revenue [Line Items]
Total Revenue	21,906	20,443	43,573	40,802
Customer Support Revenue \| APAC
Disaggregation of Revenue [Line Items]
Total Revenue	10,233	9,489	20,318	19,110
Professional Services
Disaggregation of Revenue [Line Items]
Total Revenue	8,984	9,967	18,031	20,688
Professional Services \| Americas
Disaggregation of Revenue [Line Items]
Total Revenue	4,430	5,489	9,296	11,274
Professional Services \| EMEA
Disaggregation of Revenue [Line Items]
Total Revenue	2,680	2,705	5,362	5,931
Professional Services \| APAC
Disaggregation of Revenue [Line Items]
Total Revenue	$ 1,874	$ 1,773	$ 3,373	$ 3,483

Revenue - Opening and Closing Balances of Accounts Receivable, Unbilled Receivables, and Deferred Revenues (Details) $ in Thousands	6 Months Ended
	Sep. 30, 2019 USD ($)
Accounts Receivable [Roll Forward]
Opening Balance as of March 31, 2019	$ 161,570
Increase/(decrease), net	(48,377)
Ending Balance as of September 31, 2019	113,193
Unbilled Receivable (current) [Roll Forward]
Opening Balance as of March 31, 2019	15,266
Increase/(decrease), net	(866)
Ending Balance as of September 31, 2019	14,400
Unbilled Receivable (long-term) [Roll Forward]
Opening Balance as of March 31, 2019	7,216
Increase/(decrease), net	727
Ending Balance as of September 31, 2019	7,943
Deferred Revenue (current) [Roll Forward]
Opening Balance as of March 31, 2019	238,439
Increase/(decrease), net	(11,507)
Ending Balance as of September 31, 2019	226,932
Deferred Revenue (long-term) [Roll Forward]
Opening Balance as of March 31, 2019	99,257
Increase/(decrease), net	(4,846)
Ending Balance as of September 31, 2019	$ 94,411

Net Income per Common Share - Additional Information (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation (in shares)	4,780	1,024	4,810	5,874

Capitalization - Additional Information (Details) $ in Thousands	Sep. 30, 2019 USD ($)
Common stock repurchase program
Class of Stock [Line Items]
Remaining amount available under share repurchase program	$ 159,974

Stock Plans - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 14,857	$ 17,750	$ 29,607	$ 35,754
Cost of services revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	698	756	1,388	1,512
Sales and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	7,359	9,071	15,005	18,595
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	2,011	2,274	4,004	4,489
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	4,184	5,345	8,237	9,944
Restructuring
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 605	$ 304	$ 973	$ 1,214

Stock Plans - Additional Information (Details) - Stock options and restricted stock units $ in Thousands	6 Months Ended
	Sep. 30, 2019 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense, net of estimated forfeitures	$ 72,944
Weighted average period awards are expected to be recognized	1 year 9 months

Stock Plans - Restricted Stock Unit Activity (Details) - Restricted stock units - $ / shares shares in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Number of Awards
Non-vested (in shares) as of March 31, 2019			1,831
Awarded (in shares)			508
Vested (in shares)			(475)
Forfeited (in shares)			(127)
Non-vested (in shares) as of June 30, 2019	1,737		1,737
Weighted Average Grant Date Fair Value
Non-vested (in dollars per share) as of March 31, 2019			$ 62.58
Awarded (in dollars per share)	$ 43.39	$ 67.41	48.17	$ 71.11
Vested (in dollars per share)			60.66
Forfeited (in dollars per share)			63.86
Non-vested (in dollars per share) as of June 30, 2019	$ 58.75		$ 58.75

Stock Plans - Restricted Stock Units Additional Information (Details) - $ / shares	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average fair value, units awarded (in dollars per share)	$ 43.39	$ 67.41	$ 48.17	$ 71.11

Stock Plans - Performance-based and Market-based Awards (Details) shares in Thousands	6 Months Ended
	Sep. 30, 2019 tranche $ / shares shares
PSU
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awarded (in shares)	88
Service period	3 years
Maximum potential to vest (as a percentage)	200.00%
Maximum potential to vest (in shares)	176
Market performance shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awarded (in shares)	88
Service period	3 years
Maximum potential to vest (as a percentage)	200.00%
Maximum potential to vest (in shares)	176
Number of annual tranches \| tranche	3
Weighted average fair value, units awarded (in dollars per share) \| $ / shares	$ 48.26

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 476	$ 1,263	$ 2,571	$ 3,912
Deferred tax assets	$ 0		$ 0

Restructuring - Additional Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2019 USD ($) contract	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($) contract	Sep. 30, 2018 USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring charges incurred	$ 12,851	$ 494	$ 16,930	$ 8,389
Operating lease impairment loss, number of leases \| contract	1		3
Stock-Based Compensation
Restructuring Cost and Reserve [Line Items]
Restructuring charges incurred	$ 605

Restructuring - Activity in Restructuring Accruals (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2019 USD ($) contract	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($) contract	Sep. 30, 2018 USD ($)
Restructuring Reserve [Roll Forward]
Operating lease impairment loss, number of leases \| contract	1		3
Lease impairment loss, excluded from restructuring charges	$ 1,114		$ 2,050
Severance & payroll related charges
Restructuring Reserve [Roll Forward]
Balance at beginning of period	2,218	$ 3,319	1,089	$ 0
Restructuring charges	11,737	494	14,880	8,389
Payments	(3,597)	(2,050)	(5,611)	(6,626)
Accrual reversals	0	0	0	0
Balance at end of period	$ 10,358	$ 1,763	$ 10,358	$ 1,763

Leases - Net Lease Costs Recognized (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Leases [Abstract]
Operating Lease Cost	$ 2,302	$ 4,843
Short-term Lease Cost	118	237
Variable Lease Cost	507	749
Net Lease Cost	$ 2,927	$ 5,829

Leases - Maturities of Lease Liabilities (Details) $ in Thousands	Sep. 30, 2019 USD ($)
Leases [Abstract]
Remainder of FY 2020	$ 3,856
FY 2021	7,241
FY 2022	4,227
FY 2023	1,964
FY 2024	1,362
Thereafter	1,714
Total Minimum Lease Payments	20,364
Less: Imputed Interest	(2,046)
Present value of operating lease liabilities	18,318
Current portion of operating lease liabilities	7,832
Long-term operating lease liabilities	$ 10,486

Leases - Additional Information (Details) $ in Thousands	3 Months Ended	6 Months Ended
Leases - Additional Information (Details) $ in Thousands	Sep. 30, 2019 USD ($)	Sep. 30, 2019 USD ($)
Leases [Abstract]
Additions of operating lease assets	$ 3,705	$ 5,305
Weighted-average remaining operating lease term	3 years 4 months 6 days	3 years 4 months 6 days
Weighted-average discount rate, operating leases	4.00%	4.00%

Subsequent Events - Additional Information (Details) $ in Millions	Oct. 01, 2019 USD ($)
Hedvig, Inc. \| Subsequent Event
Subsequent Event [Line Items]
Total consideration	$ 225

Cover Page - shares	6 Months Ended
Cover Page - shares	Sep. 30, 2019	Oct. 25, 2019
Cover page.
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Entity Registrant Name	Commvault Systems, Inc.
Entity Central Index Key	0001169561
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Current Fiscal Year End Date	--03-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		45,711,386
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Title of 12(b) Security	Common Stock
Trading Symbol	CVLT
Security Exchange Name	NASDAQ
Entity File Number	1-33026
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	22-3447504
Entity Address, Address Line One	1 Commvault Way
Entity Address, City or Town	Tinton Falls
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07724
City Area Code	732
Local Phone Number	870-4000
Document Quarterly Report	true
Document Transition Report	false

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2019	Mar. 31, 2019
Current assets:
Cash and cash equivalents	$ 377,625	$ 327,992
Short-term investments	97,619	130,338
Trade accounts receivable	127,593	176,836
Other current assets	21,916	19,836
Total current assets	624,753	655,002
Property and equipment, net	118,022	122,716
Operating lease assets	16,255
Deferred commissions cost	31,364	33,619
Other assets	11,372	11,116
Total assets	801,766	822,453
Current liabilities:
Accounts payable	1,744	2,186
Accrued liabilities	83,601	85,721
Current portion of operating lease liabilities	7,832
Deferred revenue	226,932	238,439
Total current liabilities	320,109	326,346
Deferred revenue, less current portion	94,411	99,257
Deferred tax liabilities, net	2,230	2,594
Long-term operating lease liabilities	10,486
Other liabilities	2,416	2,953
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value: 50,000 shares authorized, no shares issued and outstanding	0	0
Common stock, $0.01 par value: 250,000 shares authorized, 45,409 shares and 45,582 shares issued and outstanding at September 30, 2019 and March 31, 2019, respectively	452	454
Additional paid-in capital	916,899	887,907
Accumulated deficit	(532,504)	(485,490)
Accumulated other comprehensive loss	(12,733)	(11,568)
Total stockholders’ equity	372,114	391,303
Total liabilities and stockholders’ equity	$ 801,766	$ 822,453

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2019	Mar. 31, 2019
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	250,000,000	250,000,000
Common stock, shares issued (in shares)	45,409,000	45,582,000
Common stock, shares outstanding (in shares)	45,409,000	45,582,000

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenues:
Total revenues	$ 167,582	$ 169,078	$ 329,785	$ 345,255
Cost of revenues:
Total cost of revenues	31,241	26,873	59,961	54,479
Gross margin	136,341	142,205	269,824	290,776
Operating expenses:
Sales and marketing	80,960	89,494	168,345	187,110
Research and development	23,227	23,649	46,807	47,746
General and administrative	24,753	24,862	47,260	48,101
Restructuring	12,851	494	16,930	8,389
Depreciation and amortization	2,719	2,700	5,325	5,233
Total operating expenses	144,510	141,199	284,667	296,579
Income (loss) from operations	(8,169)	1,006	(14,843)	(5,803)
Interest income	1,561	1,148	3,484	2,039
Income (loss) before income taxes	(6,608)	2,154	(11,359)	(3,764)
Income tax expense	476	1,263	2,571	3,912
Net income (loss)	$ (7,084)	$ 891	$ (13,930)	$ (7,676)
Net income (loss) per common share:
Basic (in dollars per share)	$ (0.16)	$ 0.02	$ (0.31)	$ (0.17)
Diluted (in dollars per share)	$ (0.16)	$ 0.02	$ (0.31)	$ (0.17)
Weighted average common shares outstanding:
Basic (in shares)	45,277	45,880	45,363	45,666
Diluted (in shares)	45,277	47,798	45,363	45,666
Software and products
Revenues:
Total revenues	$ 68,595	$ 69,504	$ 132,269	$ 144,554
Cost of revenues:
Total cost of revenues	8,831	5,049	14,861	9,169
Services
Revenues:
Total revenues	98,987	99,574	197,516	200,701
Cost of revenues:
Total cost of revenues	$ 22,410	$ 21,824	$ 45,100	$ 45,310

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (7,084)	$ 891	$ (13,930)	$ (7,676)
Other comprehensive loss:
Foreign currency translation adjustment	(1,138)	(1,151)	(1,165)	(6,320)
Comprehensive loss	$ (8,222)	$ (260)	$ (15,095)	$ (13,996)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid – In Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Mar. 31, 2018		45,118
Beginning balance at Mar. 31, 2018	$ 404,064	$ 450	$ 782,764	$ (373,678)	$ (5,472)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	35,754		35,754
Share issuances related to stock-based compensation (in shares)		1,483
Share issuances related to stock-based compensation	29,626	$ 14	29,612
Repurchase of common stock (in shares)		(567)
Repurchase of common stock	(38,303)	$ (6)	(4,508)	(33,789)
Net income (loss)	(7,676)			(7,676)
Other comprehensive loss	(6,320)				(6,320)
Ending balance (in shares) at Sep. 30, 2018		46,034
Ending balance at Sep. 30, 2018	417,145	$ 458	843,622	(415,143)	(11,792)
Beginning balance (in shares) at Jun. 30, 2018		45,580
Beginning balance at Jun. 30, 2018	396,715	$ 454	811,271	(404,369)	(10,641)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	17,750		17,750
Share issuances related to stock-based compensation (in shares)		655
Share issuances related to stock-based compensation	16,228	$ 6	16,222
Repurchase of common stock (in shares)		(201)
Repurchase of common stock	(13,288)	$ (2)	(1,621)	(11,665)
Net income (loss)	891			891
Other comprehensive loss	(1,151)				(1,151)
Ending balance (in shares) at Sep. 30, 2018		46,034
Ending balance at Sep. 30, 2018	417,145	$ 458	843,622	(415,143)	(11,792)
Beginning balance (in shares) at Mar. 31, 2019		45,582
Beginning balance at Mar. 31, 2019	391,303	$ 454	887,907	(485,490)	(11,568)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	29,607		29,607
Share issuances related to stock-based compensation (in shares)		657
Share issuances related to stock-based compensation	6,325	$ 6	6,319
Repurchase of common stock (in shares)		(830)
Repurchase of common stock	(40,026)	$ (8)	(6,934)	(33,084)
Net income (loss)	(13,930)			(13,930)
Other comprehensive loss	(1,165)				(1,165)
Ending balance (in shares) at Sep. 30, 2019		45,409
Ending balance at Sep. 30, 2019	372,114	$ 452	916,899	(532,504)	(12,733)
Beginning balance (in shares) at Jun. 30, 2019		45,077
Beginning balance at Jun. 30, 2019	359,817	$ 449	896,383	(525,420)	(11,595)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	14,857		14,857
Share issuances related to stock-based compensation (in shares)		332
Share issuances related to stock-based compensation	5,662	$ 3	5,659
Repurchase of common stock (in shares)
Repurchase of common stock	0
Net income (loss)	(7,084)			(7,084)
Other comprehensive loss	(1,138)				(1,138)
Ending balance (in shares) at Sep. 30, 2019		45,409
Ending balance at Sep. 30, 2019	$ 372,114	$ 452	$ 916,899	$ (532,504)	$ (12,733)

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities
Net loss	$ (13,930)	$ (7,676)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	6,054	6,072
Noncash stock-based compensation	29,607	35,754
Deferred income taxes	0	(273)
Amortization of deferred commissions cost	8,730	8,916
Impairment of operating lease assets	2,050
Changes in operating assets and liabilities:
Trade accounts receivable	45,625	21,495
Operating lease assets and liabilities, net	42
Other current assets and Other assets	(1,796)	4,884
Deferred commissions cost	(6,962)	(8,866)
Accounts payable	(425)	(382)
Accrued liabilities	(1,015)	(13,736)
Deferred revenue	(12,079)	(3,796)
Other liabilities	(782)	138
Net cash provided by operating activities	55,119	42,530
Cash flows from investing activities
Purchase of short-term investments	(32,800)	(65,519)
Proceeds from maturity of short-term investments	65,519	66,237
Purchase of property and equipment	(1,457)	(3,998)
Net cash provided by (used in) investing activities	31,262	(3,280)
Cash flows from financing activities
Repurchase of common stock	(40,026)	(38,303)
Proceeds from stock-based compensation plans	6,325	29,626
Net cash used in financing activities	(33,701)	(8,677)
Effects of exchange rate — changes in cash	(3,047)	(8,176)
Net increase in cash and cash equivalents	49,633	22,397
Cash and cash equivalents at beginning of period	327,992	330,784
Cash and cash equivalents at end of period	$ 377,625	$ 353,181

Basis of Presentation	6 Months Ended
Basis of Presentation	Sep. 30, 2019
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation Commvault Systems, Inc. and its subsidiaries (“Commvault” or the “Company”) is a provider of data and information management software applications and related services. The Company develops, markets and sells a suite of software applications and services, primarily in North America, Europe, Australia and Asia, that provides its customers with data protection solutions supporting all major operating systems, applications, and databases on virtual and physical servers, NAS shares, cloud-based infrastructures, and mobile devices; management through a single console; multiple protection methods including backup and archive, snapshot management, replication, and content indexing for eDiscovery; efficient storage management using deduplication for disk, tape and cloud; integration with the industry's top storage arrays; complete virtual infrastructure management supporting multiple hypervisors; security capabilities to limit access to critical data; policy based data management; and an end-user experience that allows them to protect, find and recover their own data using common tools such as web browsers, Microsoft Outlook and File Explorer. The Company also sells appliances that integrate the Company's software with hardware and address a wide-range of business needs and use cases, ranging from support for remote or branch offices with limited IT staff up to large corporate data centers. The Company also provides its customers with a broad range of professional and customer support services. The consolidated financial statements as of September 30, 2019 and for the three and six months ended September 30, 2019 and 2018 are unaudited, and in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the results for the interim periods. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the financial statements and notes in the Company’s Annual Report on Form 10-K for fiscal 2019. The results reported in these financial statements should not necessarily be taken as indicative of results that may be expected for the entire fiscal year. The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make judgments and estimates that affect the amounts reported in the Company’s consolidated financial statements and the accompanying notes. The Company bases its estimates and judgments on historical experience and on various other assumptions that it believes are reasonable under the circumstances. The amounts of assets and liabilities reported in the Company’s balance sheets and the amounts of revenues and expenses reported for each of its periods presented are affected by estimates and assumptions, which are used for, but not limited to, the accounting for revenue recognition, income taxes and related reserves, stock-based compensation and accounting for research and development costs. Actual results could differ from those estimates.

Summary of Significant Accounting Policies

6 Months Ended

Sep. 30, 2019

Summary of Significant Accounting Policies

Correction of an Immaterial Error in Previously Issued Financial Statements

Recently Issued Accounting Standards

Concentration of Credit Risk

The Company grants credit to customers in a wide variety of industries worldwide and generally does not require collateral. Credit losses relating to these customers have been minimal.

Fair Value of Financial Instruments

The following table summarizes the composition of the Company’s financial assets measured at fair value at September 30, 2019 and March 31, 2019:



September 30, 2019	Level 1		Level 2	Level 3	Total
Cash equivalents	$	—	—	—	$	—
Short-term investments	$	—	97,619	—	$	97,619



March 31, 2019	Level 1		Level 2	Level 3	Total
Cash equivalents	$	102,702	—	—	$	102,702
Short-term investments	$	—	131,937	—	$	131,937

Revenue

6 Months Ended

Sep. 30, 2019

Revenue

The Company’s typical performance obligations include the following:



Performance Obligation	When Performance Obligation is Typically Satisfied	When Payment is Typically Due	How Standalone Selling Price is Typically Estimated
Software and Products Revenue
Software Licenses	Upon shipment or made available for download (point in time)	Within 90 days of shipment except for certain subscription licenses which are paid for over time	Residual approach
Appliances	When control of the appliances passes to the customer; typically upon delivery	Within 90 days of delivery	Residual approach
Customer Support Revenue
Software Updates	Ratably over the course of the support contract (over time)	At the beginning of the contract period	Observable in renewal transactions
Customer Support	Ratably over the course of the support contract (over time)	At the beginning of the contract period	Observable in renewal transactions
Professional Services
Other Professional Services (except for education services)	As work is performed (over time)	Within 90 days of services being performed	Observable in transactions without multiple performance obligations
Education Services	When the class is taught (point in time)	Within 90 days of services being performed	Observable in transactions without multiple performance obligations

Disaggregation of Revenue



	Three Months Ended September 30, 2019
	Americas		EMEA		APAC		Total
Software and Products Revenue	$	35,863	$	21,440	$	11,292	$	68,595
Customer Support Revenue	57,864		21,906		10,233		90,003
Professional Services	4,430		2,680		1,874		8,984
Total Revenue	$	98,157	$	46,026	$	23,399	$	167,582



	Three Months Ended September 30, 2018
	Americas		EMEA		APAC		Total
Software and Products Revenue	$	41,376	$	17,526	$	10,602	$	69,504
Customer Support Revenue	59,675		20,443		9,489		89,607
Professional Services	5,489		2,705		1,773		9,967
Total Revenue	$	106,540	$	40,674	$	21,864	$	169,078



	Six Months Ended September 30, 2019
	Americas		EMEA		APAC		Total
Software and Products Revenue	$	67,084	$	42,815	$	22,370	$	132,269
Customer Support Revenue	115,594		43,573		20,318		179,485
Professional Services	9,296		5,362		3,373		18,031
Total Revenue	$	191,974	$	91,750	$	46,061	$	329,785



	Six Months Ended September 30, 2018
	Americas		EMEA		APAC		Total
Software and Products Revenue	$	83,492	$	39,551	$	21,511	$	144,554
Customer Support Revenue	120,101		40,802		19,110		180,013
Professional Services	11,274		5,931		3,483		20,688
Total Revenue	$	214,867	$	86,284	$	44,104	$	345,255

Information about Contract Balances



	Accounts Receivable			Unbilled Receivable (current)			Unbilled Receivable (long-term)		Deferred Revenue (current)			Deferred Revenue (long-term)
Opening Balance as of March 31, 2019	$	161,570		$	15,266		$	7,216	$	238,439		$	99,257
Increase/(decrease), net	(48,377		)	(866		)	727		(11,507		)	(4,846		)
Ending Balance as of September 31, 2019	$	113,193		$	14,400		$	7,943	$	226,932		$	94,411

Remaining Performance Obligations

Net Income per Common Share	6 Months Ended
Net Income per Common Share	Sep. 30, 2019
Earnings Per Share [Abstract]
Net Income per Common Share	Net Income per Common Share The diluted weighted average shares outstanding exclude outstanding stock options, restricted stock units, performance restricted stock units and shares to be purchased under the employee stock purchase plan totaling 4,780 and 1,024 for the three months ended September 30, 2019 and 2018, respectively, and 4,810 and 5,874 for the six months ended September 30, 2019 and 2018, because the effect would have been anti-dilutive.

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies From time to time, the Company is subject to claims in legal proceedings arising in the normal course of business. The Company does not believe that it is currently party to any pending legal action that could reasonably be expected to have a material adverse effect on its business or operating results.

Capitalization	6 Months Ended
Capitalization	Sep. 30, 2019
Equity [Abstract]
Capitalization	Capitalization As of September 30, 2019, $159,974 remained in the Company's current stock repurchase authorization which expires on March 31, 2020.

Stock Plans

6 Months Ended

Sep. 30, 2019

Restructuring and Related Activities [Abstract]

Stock Plans



	Three Months Ended September 30,				Six Months Ended September 30,
	2019		2018		2019		2018
Cost of services revenue	$	698	$	756	$	1,388	$	1,512
Sales and marketing	7,359		9,071		15,005		18,595
Research and development	2,011		2,274		4,004		4,489
General and administrative	4,184		5,345		8,237		9,944
Restructuring	605		304		973		1,214
Stock-based compensation expense	$	14,857	$	17,750	$	29,607	$	35,754

Restricted Stock Units

Restricted stock unit activity for the six months ended September 30, 2019 is as follows:



Non-vested Restricted Stock Units	Number of Awards		Weighted Average Grant Date Fair Value
Non-vested as of March 31, 2019	1,831		$	62.58
Awarded	508		48.17
Vested	(475	)	60.66
Forfeited	(127	)	63.86
Non-vested as of September 30, 2019	1,737		$	58.75

Performance Based Awards

Awards with a Market Condition

Income Taxes	6 Months Ended
Income Taxes	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesIncome tax expense was $2,571 in the six months ended September 30, 2019 compared to an expense of $3,912 in the six months ended September 30, 2018. In fiscal 2018 the Company determined that it was more likely than not that it will not realize the benefits of its gross deferred tax assets and therefore recorded a valuation allowance to reduce the carrying value of these gross deferred tax assets, net of the impact of the reversal of taxable temporary differences, to zero. The Company’s position remains unchanged as of the period ending September 30, 2019. The tax expense for the six months ended September 30, 2019 relates primarily to current foreign taxes.

Restructuring

6 Months Ended

Sep. 30, 2019

Restructuring

The activity in the Company’s restructuring accruals for the three and six months ended September 30, 2019 and 2018 is summarized as follows:



	Three Months Ended September 30,
	2019			2018
Balance at June 30	$	2,218		$	3,319
Restructuring charges⁽¹⁾	11,737			494
Payments	(3,597		)	(2,050		)
Accrual reversals	—			—
Balance at September 30	$	10,358		$	1,763



	Six Months Ended September 30,
	2019			2018
Balance at March 31	$	1,089		$	—
Restructuring charges⁽¹⁾	14,880			8,389
Payments	(5,611		)	(6,626		)
Accrual reversals	—			—
Balance at September 30	$	10,358		$	1,763

As of September 30, 2019, the outstanding restructuring accruals primarily relate to future severance payments.

Leases

6 Months Ended

Sep. 30, 2019

Leases

As of September 30, 2019, the Company did not have any finance leases.

Net lease cost recognized on our Condensed Consolidated Statement of Operations is summarized as follows:



	Three Months Ended September 30, 2019		Six Months Ended September 30, 2019
Operating Lease Cost	$	2,302	$	4,843
Short-term Lease Cost	118		237
Variable Lease Cost	507		749
Net Lease Cost	$	2,927	$	5,829



Remainder of FY 2020	$	3,856
FY 2021	7,241
FY 2022	4,227
FY 2023	1,964
FY 2024	1,362
Thereafter	1,714
Total Minimum Lease Payments	$	20,364
Less: Imputed Interest	(2,046		)
Present value of operating lease liabilities	$	18,318
Less: Current Portion of operating lease liabilities	7,832
Long-term operating lease liabilities	$	10,486

Subsequent Events	6 Months Ended
Subsequent Events	Sep. 30, 2019
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On September 3, 2019, a wholly owned subsidiary of the Company, entered into a definitive purchase agreement to acquire substantially all the assets of Hedvig, Inc., a California based software-defined storage (SDS) innovator for total consideration of approximately $225 million, subject to customary transaction adjustments, which includes the purchase price and ongoing employee retention in the form of cash and stock-based compensation. The transaction closed on October 1, 2019. As the transaction occurred subsequent to period-end, the Company is still evaluating the purchase price allocation of the transaction but expects the primary assets acquired to be intangible assets and goodwill. Acquired tangible assets and assumed liabilities are expected to be immaterial. The allocation is expected to be finalized during the third quarter of fiscal 2020.

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2019
Accounting Policies [Abstract]
Basis of Presentation	The consolidated financial statements as of September 30, 2019 and for the three and six months ended September 30, 2019 and 2018 are unaudited, and in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the results for the interim periods. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the financial statements and notes in the Company’s Annual Report on Form 10-K for fiscal 2019. The results reported in these financial statements should not necessarily be taken as indicative of results that may be expected for the entire fiscal year.
Use of Estimates	The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make judgments and estimates that affect the amounts reported in the Company’s consolidated financial statements and the accompanying notes. The Company bases its estimates and judgments on historical experience and on various other assumptions that it believes are reasonable under the circumstances. The amounts of assets and liabilities reported in the Company’s balance sheets and the amounts of revenues and expenses reported for each of its periods presented are affected by estimates and assumptions, which are used for, but not limited to, the accounting for revenue recognition, income taxes and related reserves, stock-based compensation and accounting for research and development costs. Actual results could differ from those estimates.
Recently Issued Accounting Standards	Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued accounting standards update (“ASU”) No. 2016-02, Leases. Under the new guidance, the Company is required to recognize a lease liability and a right-of-use asset for leases. The Company adopted the new guidance on April 1, 2019 using the optional transition method, which allows for the prospective application of the standard, and as a result, the Company did not record an adjustment to retained earnings. In addition, the Company elected the package of practical expedients, for all of its leases, permitted under the transition guidance within the standard, which allowed the Company to carry forward its historical lease classification, to not reassess prior conclusions related to initial direct costs and to not reassess whether any expired or existing contracts are or contain leases. The Company also elected the lessee practical expedient to combine lease and non-lease components for new leases and modified leases. The Company also made an accounting policy election in accordance with the new standard to apply accounting similar to ASC 840 to short-term leases, which are defined as leases that have a term of twelve months or less. The new guidance does not have any impact on the Statement of Operations or Statement of Cash Flows. Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13 “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (ASU 2016-13). The standard amends guidance on the impairment of financial instruments. The ASU estimates credit losses based on expected losses and provides for a simplified accounting model for purchased financial assets with credit deterioration. The standard requires a modified retrospective basis adoption through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The amendments of this ASU are effective for the Company's fiscal 2021. The Company is currently assessing the impact the adoption of ASU 2016-13 will have on the financial statements. There have been no other additional significant changes in the Company’s accounting policies during the six months ended September 30, 2019 as compared to the significant accounting policies described in its Annual Report on Form 10-K for the year ended March 31, 2019 and to the changes disclosed above.
Concentration of Credit Risk	The Company grants credit to customers in a wide variety of industries worldwide and generally does not require collateral. Credit losses relating to these customers have been minimal.
Fair Value of Financial Instruments	The carrying amounts of the Company’s cash and cash equivalents, accounts receivable and accounts payable approximate their fair values due to the short-term maturity of these instruments. The Company’s cash equivalents balance consists primarily of money market funds. The Company’s short-term investments balance consists of U.S. Treasury Bills with maturities of one year or less. The Company accounts for its short-term investments as held to maturity.
Revenue	The Company derives revenues from two primary sources: software and products, and services. Software and products revenue includes the Company's software and integrated appliances that combine the Company's software with hardware. Services include customer support (software updates and technical support), consulting, assessment and design services, installation services and customer education. A typical contract includes both licenses and services. Historically, the Company’s software licenses typically provide for a perpetual right to use the Company’s software. The Company also sells term-based software licenses that expire, which are referred to as subscription arrangements. The Company does not customize its software and installation services are not required. The software is delivered before related services are provided and is functional without professional services, updates and technical support. The Company has concluded that its software license is functional intellectual property that is distinct as the user can benefit from the software on its own. Software revenue is typically recognized when the software is delivered and/or made available for download as this is the point the user of the software can direct the use of, and obtain substantially all of the remaining benefits from the functional intellectual property. The Company does not recognize software revenue related to the renewal of subscription software licenses earlier than the beginning of the subscription period. Services revenue includes revenue from customer support and other professional services. Customer support includes software updates on a when-and-if-available basis, telephone support, integrated web-based support and bug fixes or patches. The Company sells its customer support contracts as a percentage of net software purchases the support is related to. Customer support revenue is recognized ratably over the term of the customer support agreement, which is typically one year. The Company’s other professional services include consulting, assessment and design services, installation services and customer education. Customer education services include courses taught by the Company’s instructors or third-party contractors. Revenue related to other professional services and customer education services is typically recognized as the services are performed. Most of the Company’s contracts with customers contain multiple performance obligations. For these contracts, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. Standalone selling prices of software and appliances are typically estimated using the residual approach. Standalone selling prices of services are typically estimated based on observable transactions when these services are sold on a standalone basis. Amounts collected in advance of services being provided are accounted for as deferred revenue. Nearly all of the Company's deferred revenue balance is related to services revenue, primarily customer support contracts. In certain contracts the Company allows customers to pay for term-based, or subscription, software licenses and products over the term of the license. Amounts recognized as revenue in excess of amounts billed are recorded as unbilled receivables. Unbilled receivables which are anticipated to be invoiced in the next twelve months are included in Accounts receivable on the consolidated balance sheet. Long term unbilled receivables are included in Other assets.
Leases	The Company’s lease liabilities relate primarily to operating leases for its global office infrastructure. These operating leases expire at various dates through fiscal 2026. The Company records lease liabilities at the present value of the lease payments not yet paid, discounted at the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term. As the Company's leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company recognizes operating lease costs over the estimated term of the lease, which includes options to extend lease terms that are reasonably certain of being exercised, starting when possession of the property is taken from the landlord. When a lease contains a predetermined fixed escalation of the minimum rent, the Company recognizes the related operating lease cost on a straight-line basis over the lease term. In addition, certain of the Company’s lease agreements include variable lease payments, such as estimated tax and maintenance charges. These variable lease payments are excluded from minimum lease payments and are included in the determination of lease cost when it is probable that the expense has been incurred and the amount can be reasonably estimated.

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Sep. 30, 2019

Financial Assets Measured at Fair Value

The following table summarizes the composition of the Company’s financial assets measured at fair value at September 30, 2019 and March 31, 2019:



September 30, 2019	Level 1		Level 2	Level 3	Total
Cash equivalents	$	—	—	—	$	—
Short-term investments	$	—	97,619	—	$	97,619



March 31, 2019	Level 1		Level 2	Level 3	Total
Cash equivalents	$	102,702	—	—	$	102,702
Short-term investments	$	—	131,937	—	$	131,937

Revenue (Tables)

6 Months Ended

Sep. 30, 2019

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction

The Company’s typical performance obligations include the following:



Performance Obligation	When Performance Obligation is Typically Satisfied	When Payment is Typically Due	How Standalone Selling Price is Typically Estimated
Software and Products Revenue
Software Licenses	Upon shipment or made available for download (point in time)	Within 90 days of shipment except for certain subscription licenses which are paid for over time	Residual approach
Appliances	When control of the appliances passes to the customer; typically upon delivery	Within 90 days of delivery	Residual approach
Customer Support Revenue
Software Updates	Ratably over the course of the support contract (over time)	At the beginning of the contract period	Observable in renewal transactions
Customer Support	Ratably over the course of the support contract (over time)	At the beginning of the contract period	Observable in renewal transactions
Professional Services
Other Professional Services (except for education services)	As work is performed (over time)	Within 90 days of services being performed	Observable in transactions without multiple performance obligations
Education Services	When the class is taught (point in time)	Within 90 days of services being performed	Observable in transactions without multiple performance obligations

Disaggregation of Revenue



	Three Months Ended September 30, 2019
	Americas		EMEA		APAC		Total
Software and Products Revenue	$	35,863	$	21,440	$	11,292	$	68,595
Customer Support Revenue	57,864		21,906		10,233		90,003
Professional Services	4,430		2,680		1,874		8,984
Total Revenue	$	98,157	$	46,026	$	23,399	$	167,582



	Three Months Ended September 30, 2018
	Americas		EMEA		APAC		Total
Software and Products Revenue	$	41,376	$	17,526	$	10,602	$	69,504
Customer Support Revenue	59,675		20,443		9,489		89,607
Professional Services	5,489		2,705		1,773		9,967
Total Revenue	$	106,540	$	40,674	$	21,864	$	169,078



	Six Months Ended September 30, 2019
	Americas		EMEA		APAC		Total
Software and Products Revenue	$	67,084	$	42,815	$	22,370	$	132,269
Customer Support Revenue	115,594		43,573		20,318		179,485
Professional Services	9,296		5,362		3,373		18,031
Total Revenue	$	191,974	$	91,750	$	46,061	$	329,785



	Six Months Ended September 30, 2018
	Americas		EMEA		APAC		Total
Software and Products Revenue	$	83,492	$	39,551	$	21,511	$	144,554
Customer Support Revenue	120,101		40,802		19,110		180,013
Professional Services	11,274		5,931		3,483		20,688
Total Revenue	$	214,867	$	86,284	$	44,104	$	345,255

Contract with Customer, Asset and Liability

The opening and closing balances of the Company’s accounts receivable, unbilled receivables, and deferred revenues are as follows:



	Accounts Receivable			Unbilled Receivable (current)			Unbilled Receivable (long-term)		Deferred Revenue (current)			Deferred Revenue (long-term)
Opening Balance as of March 31, 2019	$	161,570		$	15,266		$	7,216	$	238,439		$	99,257
Increase/(decrease), net	(48,377		)	(866		)	727		(11,507		)	(4,846		)
Ending Balance as of September 31, 2019	$	113,193		$	14,400		$	7,943	$	226,932		$	94,411

Stock Plans (Tables)

6 Months Ended

Sep. 30, 2019

Schedule of Stock-Based Compensation Expense



	Three Months Ended September 30,				Six Months Ended September 30,
	2019		2018		2019		2018
Cost of services revenue	$	698	$	756	$	1,388	$	1,512
Sales and marketing	7,359		9,071		15,005		18,595
Research and development	2,011		2,274		4,004		4,489
General and administrative	4,184		5,345		8,237		9,944
Restructuring	605		304		973		1,214
Stock-based compensation expense	$	14,857	$	17,750	$	29,607	$	35,754

Schedule of Restricted Stock Unit Activity

Restricted stock unit activity for the six months ended September 30, 2019 is as follows:



Non-vested Restricted Stock Units	Number of Awards		Weighted Average Grant Date Fair Value
Non-vested as of March 31, 2019	1,831		$	62.58
Awarded	508		48.17
Vested	(475	)	60.66
Forfeited	(127	)	63.86
Non-vested as of September 30, 2019	1,737		$	58.75

Restructuring (Tables)

6 Months Ended

Sep. 30, 2019

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs

The activity in the Company’s restructuring accruals for the three and six months ended September 30, 2019 and 2018 is summarized as follows:



	Three Months Ended September 30,
	2019			2018
Balance at June 30	$	2,218		$	3,319
Restructuring charges⁽¹⁾	11,737			494
Payments	(3,597		)	(2,050		)
Accrual reversals	—			—
Balance at September 30	$	10,358		$	1,763



	Six Months Ended September 30,
	2019			2018
Balance at March 31	$	1,089		$	—
Restructuring charges⁽¹⁾	14,880			8,389
Payments	(5,611		)	(6,626		)
Accrual reversals	—			—
Balance at September 30	$	10,358		$	1,763

Leases (Tables)

6 Months Ended

Sep. 30, 2019