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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2023
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________to _________
Commission file number: 001-38312
_________________
8x8_RedSquare_Logo_RGB_130x130.jpg
8x8, INC.
(Exact name of Registrant as Specified in its Charter)
_________________
Delaware77-0142404
(State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification Number)
675 Creekside Way
Campbell, CA 95008
(Address of principal executive offices)
(408) 727-1885
(Registrant's telephone number, including area code)
_________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
COMMON STOCK, PAR VALUE $0.001 PER SHAREEGHTNasdaq Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file reports), and (2) has been subject to such filing requirements for the past 90 days.    ☒ Yes    ☐ No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes  ☒     No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes       No    ☒
The number of shares of the Registrant's Common Stock outstanding as of October 23, 2023 was 122,163,547.


8X8, INC.
INDEX TO QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED SEPTEMBER 30, 2023
Page

1

Forward-Looking Statements and Risk Factors
Statements contained in this quarterly report on Form 10-Q, or this "Quarterly Report", regarding our expectations, beliefs, estimates, intentions or strategies are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. For example, words such as "may," "will," "should," "estimates," "predicts," "potential," "continue," "strategy," "believes," "anticipates," "plans," "expects," "intends," and similar expressions are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding: industry trends; our number of customers; service revenue; cost of service revenue; research and development expenses; reducing unit costs and improving gross profit margin, or driving sustainable growth and increasing profitability and cash flow; new debt and interest expense; hiring of employees; sales and marketing expenses; general and administrative expenses in future periods; and the impact of foreign currency exchange rate and interest rate fluctuations. You should not place undue reliance on these forward-looking statements. Actual results and trends may differ materially from historical results and those projected in any such forward-looking statements depending on a variety of factors. These factors include, but are not limited to:
the impact of economic downturns on us and our customers;
the impact of cost increases and general inflationary pressures, as well as supply chain shortages and disruptions, on our operating expenses;
customer cancellations and rate of customer churn;
ongoing volatility and conflict in the political and economic environment, including Russia’s invasion of Ukraine and any macro-economic impact that it may have;
customer acceptance and demand for our new and existing cloud communication and collaboration services and features, including voice, contact center, video, messaging, and communication application programming interfaces;
competitive market pressures, and any changes in the competitive dynamics of the markets in which we compete;
the quality and reliability of our services;
our ability to scale our business;
customer acquisition costs;
our reliance on a network of channel partners to provide substantial new customer demand;
timing and extent of improvements in operating results from increased spending in marketing, sales, and research and development;
the amount and timing of costs associated with recruiting, training, and integrating new employees and retaining existing employees;
our reliance on infrastructure of third-party network service providers;
risk of failure in our physical infrastructure;
risk of defects or bugs in our software;
risk of cybersecurity breaches;
our ability to maintain the compatibility of our software with third-party applications and mobile platforms;
continued compliance with industry standards and regulatory and privacy requirements, globally;
introduction and adoption of our cloud software solutions in markets outside of the United States;
risks that any reduction in spending may not achieve the desired result or may result in a reduction in revenue;
risks relating to the acquisition and integration of businesses we have acquired or may acquire in the future, including most recently, Fuze, Inc.;
risks related to the fluctuations in the value of the United States Dollar and other currencies that underlie our business transactions;
risks related to our substantial amount of indebtedness, which could have important consequences to our business;
potential future intellectual property infringement claims and other litigation that could adversely impact our business and operating results; and
the current instability in the banking system, which could adversely impact our operations and operating results.
Please refer to the "Risk Factors" section of our annual report on Form 10-K for the fiscal year ended March 31, 2023 (the "Form 10-K") and subsequent Securities and Exchange Commission ("SEC") filings for additional factors that could materially affect our financial performance. All forward-looking statements included in this Quarterly Report are based on information available to us on the date hereof, and we assume no obligation to update any such forward-looking statements. Readers are urged to carefully review and consider the various disclosures made in this Quarterly Report, which attempts to advise interested parties of the risks and factors that may affect our business, financial condition, results of operations and prospects.
Our fiscal year ends on March 31 of each calendar year. Each reference to a fiscal year in this Quarterly Report refers to the fiscal year ended March 31 of the calendar year indicated (for example, fiscal 2024 refers to the fiscal year ended March 31, 2024). Unless the context requires otherwise, references to "we," "us," "our," "8x8," and the "Company" refer to 8x8, Inc. and its consolidated subsidiaries.
2

PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements
8X8, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands, except share and per share amounts)
September 30, 2023March 31, 2023
ASSETS
Current assets:
Cash and cash equivalents$144,030 $111,400 
Restricted cash, current521 511 
Short-term investments4,744 26,228 
Accounts receivable, net of allowance for expected credit losses of $3,036 and $3,644
  as of September 30, 2023 and March 31, 2023, respectively
61,063 62,307 
Deferred sales commission costs, current37,610 38,048 
Other current assets33,967 34,630 
Total current assets281,935 273,124 
Property and equipment, net53,508 57,871 
Operating lease, right-of-use assets50,396 52,444 
Intangible assets, net96,914 107,112 
Goodwill265,732 266,863 
Restricted cash, non-current462 818 
Deferred sales commission costs, non-current60,440 67,644 
Other assets, non-current14,336 15,934 
Total assets$823,723 $841,810 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable$49,391 $46,802 
Accrued compensation21,793 29,614 
Accrued taxes35,854 29,570 
Operating lease liabilities, current11,623 11,504 
Deferred revenue, current33,223 34,909 
Convertible senior notes, current63,153 62,932 
Other accrued liabilities14,053 14,556 
Total current liabilities229,090 229,887 
Operating lease liabilities, non-current61,926 65,623 
Deferred revenue, non-current10,231 10,615 
Convertible senior notes197,303 196,821 
Term loan210,303 231,993 
Other liabilities, non-current4,460 6,965 
Total liabilities 713,313 741,904 
Commitments and contingencies (Note 5)
Stockholders' equity:
Preferred stock: $0.001 par value, 5,000,000 shares authorized, none issued and
  outstanding as of September 30, 2023 and March 31, 2023
  
Common stock: $0.001 par value, 300,000,000 shares authorized, 121,858,602 shares and 114,659,255 shares issued and outstanding as of September 30, 2023 and March 31, 2023, respectively
122 115 
Additional paid-in capital941,493 905,635 
Accumulated other comprehensive loss(15,509)(12,927)
Accumulated deficit(815,696)(792,917)
Total stockholders' equity110,410 99,906 
Total liabilities and stockholders' equity$823,723 $841,810 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
3

8X8, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands except per share amounts)
 Three Months Ended September 30,Six Months Ended September 30,
 2023202220232022
Service revenue$177,782 $178,556 $353,020 $357,717 
Other revenue7,217 8,833 15,266 17,292 
Total revenue184,999 187,389 368,286 375,009 
Operating expenses:
Cost of service revenue49,144 51,038 95,420 104,585 
Cost of other revenue7,958 11,000 16,356 24,126 
Research and development34,207 36,019 69,499 70,974 
Sales and marketing68,687 80,487 137,191 164,014 
General and administrative27,586 33,835 53,812 63,054 
Total operating expenses187,582 212,379 372,278 426,753 
Loss from operations(2,583)(24,990)(3,992)(51,744)
Other (expense) income, net(5,258)13,950 (17,732)15,066 
Loss before (benefit from) provision for income taxes(7,841)(11,040)(21,724)(36,678)
Provision (benefit) for income taxes(389)599 1,055 1,004 
Net loss$(7,452)$(11,639)$(22,779)$(37,682)
Net loss per share: 
Basic and diluted$(0.06)$(0.10)$(0.19)$(0.32)
Weighted average number of shares:
Basic and diluted120,757 116,013 118,778 117,857 
OTHER (EXPENSE) INCOME, NET DETAILS
(Unaudited, in thousands)
Three Months Ended September 30,Six Months Ended September 30,
2023202220232022
Interest expense$(8,929)$(4,883)$(17,899)$(5,508)
Amortization of debt discount and issuance costs(1,132)(1,169)(2,240)(2,000)
Gain on warrants remeasurement2,781 1,293 2,531 1,293 
Gain (loss) on debt extinguishment 16,106 (1,766)16,106 
Gain on foreign exchange1,565 2,124 761 4,600 
Other income457 479 881 575 
Other (expense) income, net$(5,258)$13,950 $(17,732)$15,066 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
4

8X8, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Unaudited, in thousands)
 Three Months Ended September 30,Six Months Ended September 30,
2023202220232022
Net loss$(7,452)$(11,639)$(22,779)$(37,682)
Other comprehensive income (loss), net of tax
Unrealized gain (loss) on investments in securities7 (5)297 (99)
Foreign currency translation adjustment(4,320)(8,548)(2,879)(16,932)
Comprehensive loss$(11,765)$(20,192)$(25,361)$(54,713)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
5

8X8, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(Unaudited, in thousands)
 Common StockAdditional
Paid-in
Capital
Accumulated
Other
Comprehensive
Loss
Accumulated
Deficit
Total
 SharesAmount
Balance as of March 31, 2023114,659 $115 $905,635 $(12,927)$(792,917)$99,906 
Issuance of common stock under stock plans,
less withholding
3,535 3 (3)— —  
Stock-based compensation expense— — 18,559 — — 18,559 
Issuance of common stock under stock plans, less withholding, related to Fuze acquisition1,038 1 (1)— —  
Unrealized investment loss— — — 290 — 290 
Foreign currency translation adjustment— — — 1,441 — 1,441 
Net loss— — — — (15,327)(15,327)
Balance as of June 30, 2023119,232 $119 $924,190 $(11,196)$(808,244)$104,869 
Issuance of common stock under stock plans,
less withholding
1,784 2 (2)— —  
ESPP share issuance843 1 2,365 2,366 
Stock-based compensation expense— — 14,940 — — 14,940 
Issuance of common stock under stock plans, less withholding, related to Fuze acquisition
Unrealized investment loss— — — 7 — 7 
Foreign currency translation adjustment— — — (4,320)— (4,320)
Net loss— — — — (7,452)(7,452)
Balance as of September 30, 2023121,859 $122 $941,493 $(15,509)$(815,696)$110,410 
 Common StockAdditional
Paid-in
Capital
Accumulated
Other
Comprehensive
Loss
Accumulated
Deficit
Total
 SharesAmount
Balance as of March 31, 2022117,863 $118 $956,599 $(7,913)$(766,438)$182,366 
Adjustment related to adoption of ASU 2020-06— — (92,832)— 46,672 (46,160)
Issuance of common stock under stock plans, less withholding1,796 2 63 — — 65 
Stock-based compensation expense— — 31,807 — — 31,807 
Unrealized investment loss— — — (94)— (94)
Foreign currency translation adjustment— — (35)(8,384)— (8,419)
Net loss— — — — (26,043)(26,043)
Balance as of June 30, 2022119,659 $120 $895,602 $(16,391)$(745,809)$133,522 
Issuance of common stock under stock plans,
  less withholding
1,047 1 (1)— —  
ESPP share issuance419 1,648 1,648 
Stock-based compensation expense— — 24,936 — — 24,936 
Shares repurchase    (10,695)(11)(60,203)— — (60,214)
Shares issued for debt issuance    1,015 1 5,081 — — 5,082 
Unrealized investment loss(5)(5)
Foreign currency translation adjustment— — — (8,548)— (8,548)
Net loss— — — — (11,639)(11,639)
Balance as of September 30, 2022111,445 $111 $867,063 $(24,944)$(757,448)$84,782 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
6

8X8, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
 Six Months Ended September 30,
20232022
Cash flows from operating activities:  
Net loss$(22,779)$(37,682)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation4,090 5,624 
Amortization of intangible assets10,198 10,723 
Amortization of capitalized internal-use software costs10,061 11,494 
Amortization of debt discount and issuance costs2,240 2,000 
Amortization of deferred sales commission costs20,099 18,839 
Allowance for credit losses993 1,781 
Operating lease expense, net of accretion5,109 5,925 
Impairment of right-of-use assets     2,424 
Stock-based compensation expense32,717 52,435 
Loss (gain) on debt extinguishment1,766 (16,106)
Gain on remeasurement of warrants(2,531)(1,293)
Other52 (192)
Changes in assets and liabilities:
Accounts receivable299 (4,579)
Deferred sales commission costs(12,068)(13,834)
Other current and non-current assets(1,306)1,223 
Accounts payable and accruals(2,934)(14,733)
Deferred revenue(2,070)(4,367)
Net cash provided by operating activities43,936 19,682 
Cash flows from investing activities:
Purchases of property and equipment(1,558)(1,845)
Capitalized internal-use software costs(7,442)(4,328)
Purchases of investments(6,174)(27,669)
Sales of investments  8,296 
Maturities of investments 27,909 36,641 
Acquisition of businesses, net of cash acquired (1,250)
Net cash provided by investing activities12,735 9,845 
Cash flows from financing activities:
Proceeds from issuance of common stock under employee stock plans2,365 1,713 
Repayment of principal on term loan(25,000) 
Net proceeds from term loan 232,861 
Repayment and exchange of convertible senior notes     (190,553)
Repurchase of common stock     (60,214)
Net cash used in financing activities(22,635)(16,193)
Effect of exchange rate changes on cash(1,752)(12,207)
Net increase in cash, cash equivalents and restricted cash32,284 1,127 
Cash, cash equivalents and restricted cash, beginning of year112,729 100,714 
Cash, cash equivalents and restricted cash, end of year$145,013 $101,841 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
7

8X8, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
(Unaudited, in thousands)
Supplemental disclosures of cash flow information:
Six Months Ended September 30,
20232022
Interest paid17,799 4,654 
Income taxes paid3,118 1,167 
Warrants issued in connection with term loan 5,915 
Shares issued in connection with term loan and convertible senior notes 5,082 
Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets:
 As of September 30,
20232022
Cash and cash equivalents$144,030 $100,512 
Restricted cash, current521 511 
Restricted cash, non-current462 818 
Total cash, cash equivalents and restricted cash$145,013 $101,841 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
8

8X8, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — UNAUDITED
1. THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES
THE COMPANY
8x8, Inc. ("8x8" or the "Company") was incorporated in California in February 1987 and was reincorporated in Delaware in December 1996. The Company trades under the symbol "EGHT" on the Nasdaq Global Select Market.
The Company is a leading Software-as-a-Service ("SaaS") provider of contact center, voice, video, chat, and enterprise-class API solutions powered by one global cloud communications platform. 8x8 empowers workforces worldwide by connecting individuals and teams, so they can collaborate faster and work smarter from anywhere. 8x8 provides real-time business analytics and intelligence, giving its customers unique insights across all interactions and channels on its platform, so they can support a distributed and hybrid working model while delighting their end-customers and accelerating their business. A majority of all revenue is generated from communication services subscriptions and platform usage. The Company also generates revenue from sales of hardware and professional services, which are complementary to the delivery of its integrated technology platform.
BASIS OF PRESENTATION AND CONSOLIDATION
The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. Accordingly, certain information and disclosures normally included in the Company's annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements as of and for the fiscal year ended March 31, 2023 and notes thereto included in the Form 10-K. There were no material changes during the three and six months ended September 30, 2023 to the Company's significant accounting policies as described in the Form 10-K.
The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company conducts its operations through one reportable segment.
In the opinion of the Company's management, these condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of the Company's financial position, results of operations and cash flows for the periods presented. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for any subsequent quarter or for the entire year ending March 31, 2024.
USE OF ESTIMATES
The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and equity, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including, but not limited to, those related to current expected credit losses, returns reserve for expected cancellations, fair value of and/or potential impairment of goodwill and value and useful life of long-lived assets (including intangible assets and right-of-use assets), capitalized internal-use software costs, benefit period for deferred commissions, stock-based compensation, incremental borrowing rate used to calculate operating lease liabilities, income and sales tax liabilities, convertible senior notes fair value, litigation, and other contingencies. The Company bases its estimates on known facts and circumstances, historical experience, and various other assumptions. Actual results could differ from those estimates under different assumptions or conditions.
RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS
There were no recent accounting pronouncements that were applicable to the Company adopted during the six months ended September 30, 2023.
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED
Recent accounting pronouncements that may be applicable to the Company are not expected to have a material impact on its present or future financial statements.
9

2. REVENUE RECOGNITION
Disaggregation of Revenue
The Company disaggregates its revenue by geographic region. See Note 10. Geographical Information.
Contract Balances
The following table provides amounts of receivables, contract assets, and deferred revenue from contracts with customers (in thousands):
 September 30, 2023March 31, 2023
Accounts receivable, net$61,063 $62,307 
Contract assets, current (component of Other current assets)
11,317 11,581 
Contract assets, non-current (component of Other assets)
9,639 11,141 
Deferred revenue, current33,223 34,909 
Deferred revenue, non-current10,231 10,615 
The change in contract assets was primarily driven by billing customers for amounts that had previously been recognized in revenue but not yet billed. The decrease in deferred revenue was due to reduced billings done in advance of performance obligations being satisfied. During the six months ended September 30, 2023, the Company recognized revenues of approximately $28.6 million that were included in deferred revenue at the beginning of the fiscal year.
Remaining Performance Obligations
The Company's subscription terms typically range from one to five years. Contract revenue from the remaining performance obligations that had not yet been recognized as of September 30, 2023 was approximately $780.0 million. This amount excludes contracts with an original expected length of less than one year. The Company expects to recognize revenue on approximately 86% of the remaining performance obligations over the next 24 months and approximately 14% over the remainder of the subscription period.
For purposes of this disclosure, the Company excludes contracts with an original expected length of less than one year. Since the new and renewal contracts entered into with customers are generally for terms of one year or longer, updating this disclosure to include contracts with a term of one year or more presents a more appropriate measure of the Company's remaining performance obligations.
Deferred Sales Commission Costs
Amortization of deferred sales commission costs for the three months ended September 30, 2023 and 2022 was approximately $10.1 million and $9.6 million, respectively, and $20.1 million and $18.8 million during the six months ended September 30, 2023 and 2022, respectively. There were no material write-offs during the three and six months ended September 30, 2023 and 2022.
3. FAIR VALUE MEASUREMENTS
Cash, cash equivalents, and available-for-sale investments were as follows (in thousands):
As of September 30, 2023Amortized
Costs
Gross
Unrealized
Gain
Gross
Unrealized
Loss
Estimated
Fair Value
Cash and
Cash
Equivalents
Restricted Cash
(Current & Non-current)
Short-Term
Investments
Cash$70,729 $— $— $70,729 $70,729 $ $— 
Level 1:
Money market funds64,070   64,070 63,087 983  
Treasury securities599   599   599 
Subtotal135,398   135,398 133,816 983 599 
Level 2:
Term deposit
10,214   10,214 10,214   
Commercial paper4,146  (1)4,145  4,145 
Subtotal14,360  (1)14,359 10,214  4,145 
Total assets$149,758 $ $(1)$149,757 $144,030 $983 $4,744 
10

As of March 31, 2023Amortized
Costs
Gross
Unrealized
Gain
Gross
Unrealized
Loss
Estimated
Fair Value
Cash and
Cash
Equivalents
Restricted Cash
(Current & Non-current)
Short-Term
Investments
Cash$95,828 $— $— $95,828 $95,828 $ $— 
Level 1:
Money market funds8,935   8,935 8,935   
Treasury securities1,599 4 (1)1,602   1,602 
Subtotal106,362 4 (1)106,365 104,763  1,602 
Level 2:
Certificate of deposit1,329   1,329  1,329  
Commercial paper8,610  (2)8,608 6,637  1,971 
Corporate debt22,625 55 (25)22,655   22,655 
Subtotal32,564 55 (27)32,592 6,637 1,329 24,626 
Total assets$138,926 $59 $(28)$138,957 $111,400 $1,329 $26,228 
The restricted cash component of the money market funds is comprised of letters of credit securing leases for certain office facilities.
The Company considers its investments available to support its current operations and has classified investments in debt securities as available-for-sale securities. The Company does not intend to sell any of its investments that are in unrealized loss positions and, as of September 30, 2023, has determined that it is not more likely than not that it will be required to sell any of these investments before recovery of the entire amortized cost basis.
The Company regularly reviews the changes to the rating of its securities at the individual security level by rating agencies and reasonably monitors the surrounding economic conditions to assess the risk of expected credit losses. As of September 30, 2023, the Company did not record any allowance for credit losses on its investments.
The Company uses the Black-Scholes option-pricing valuation model to value its detachable warrants from inception and at each reporting period. Changes in the fair values of the detachable warrants liability are recorded as loss on warrants remeasurement within Other (expense) income, net in the condensed consolidated statements of operations.
The following table presents additional information about valuation techniques and inputs used for the detachable warrants (see Note 6, Convertible Senior Notes and Term Loan) that are measured at fair value and categorized within Level 3 as of September 30, 2023 and March 31, 2023 (dollars in thousands):
September 30, 2023March 31, 2023
Estimated fair value of detachable warrants$2,966 $5,497 
Unobservable inputs:
Stock volatility80.0%67.2%
Risk-free rate4.7%3.6%
Expected term3.9 years4.4 years
As of September 30, 2023 and March 31, 2023, the estimated fair value of the Company's convertible senior notes due in 2024 was $60.2 million and $57.3 million, respectively, and the estimated fair value of the Company’s convertible senior notes due in 2028 was $192.0 million and $183.0 million, respectively (see Note 6, Convertible Senior Notes and Term Loan). The fair value of the convertible senior notes was determined based on the closing price of each of the securities on the last trading day of the reporting period, and each is considered to be Level 2 in the fair value hierarchy due to limited trading activity of the debt instruments. As of September 30, 2023 and March 31, 2023, the carrying value of the Company’s Term Loan approximates its estimated fair value.
11

4. INTANGIBLE ASSETS AND GOODWILL
The carrying value of intangible assets consisted of the following (in thousands):
 September 30, 2023March 31, 2023
Gross
Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Technology$46,448 $(32,582)$13,866 $46,461 $(28,361)$18,100 
Customer relationships105,824 (22,776)83,048 105,836 (16,824)89,012 
Trade names and domains582 (582) 584 (584) 
Total acquired identifiable intangible assets$152,854 $(55,940)$96,914 $152,881 $(45,769)$107,112 
As of September 30, 2023, the weighted average remaining useful lives for technology and customer relationships were 1.9 years and 7.2 years, respectively.
The annual amortization of the Company's intangible assets, based upon existing intangible assets and current useful lives, is estimated to be as follows (in thousands):
 Amount
Remainder of 2024$10,198 
202519,095 
202613,896 
202711,757 
202811,044 
Thereafter30,924 
Total$96,914 
The following table provides a summary of the changes in the carrying amounts of goodwill (in thousands):
 Amount
Balance as of March 31, 2023$266,863 
Foreign currency translation(1,131)
Balance as of September 30, 2023$265,732 
5. COMMITMENTS AND CONTINGENCIES
Indemnifications
In the normal course of business, the Company may agree to indemnify other parties, including customers, lessors, and parties to other transactions with the Company with respect to certain matters, such as breaches of representations or covenants or intellectual property infringement or other claims made by third parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. In addition, the Company has entered into indemnification agreements with its officers and directors.
It is not possible to determine the maximum potential amount of the Company's exposure under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material impact on the Company's operating results, financial position, or cash flows. Under some of these agreements, however, the Company's potential indemnification liability may not have a contractual limit.
Operating Leases
The Company's lease obligations consist of the Company's principal facility and various leased facilities under operating lease agreements. No material leases were executed during the three months ended September 30, 2023. See Note 5. Leases in the Company's Form 10-K for more information on the Company's leases and the future minimum lease payments.
Purchase Obligations
The Company's purchase obligations include contracts with third-party customer support vendors and third-party network service providers. These contracts include minimum monthly commitments and the requirements to maintain the service level for several months.
During the six months ended September 30, 2023, the Company entered into a $28.1 million noncancellable three-year hosting service contract. Under this agreement, $3.8 million remains due during fiscal year 2024, $10.0 million will be due during fiscal 2025, and $10.5 million will be due during fiscal 2026.
12


Legal Proceedings
The Company may be involved in various claims, lawsuits, investigations, and other legal proceedings, including intellectual property, commercial, regulatory compliance, securities, and employment matters that arise in the normal course of business. The Company determines whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated. The Company regularly evaluates current information to determine whether any accruals should be adjusted and whether new accruals are required. Actual claims could settle or be adjudicated against the Company in the future for materially different amounts than the Company has accrued due to the inherently unpredictable nature of litigation. Legal costs are expensed as incurred.
The Company believes it has recorded adequate provisions for any such lawsuits and claims and proceedings as of September 30, 2023. The Company believes that damage amounts claimed in these matters are not meaningful indicators of potential liability. Some of the matters pending against the Company involve potential compensatory, punitive, or treble damage claims or sanctions, that, if granted, could require the Company to pay damages or make other expenditures in amounts that could have a material adverse effect on its consolidated financial statements. Given the inherent uncertainties of litigation, the ultimate outcome of the ongoing matters described herein cannot be predicted, and the Company believes it has valid defenses with respect to the legal matters pending against it. Nevertheless, the consolidated financial statements could be materially adversely affected in a particular period by the resolution of one or more of these contingencies.
State and Local Taxes and Surcharges
From time to time, the Company has received inquiries from a number of state and local taxing agencies with respect to the remittance of sales, use, telecommunications, excise, and income taxes. Several jurisdictions currently are conducting tax audits of the Company's records. The Company collects or has accrued amounts for taxes that it believes are required to be remitted. The amounts that have been remitted have historically been within the accruals established by the Company. The Company adjusts its accrual when facts relating to specific exposures warrant such adjustment. During the second quarter of fiscal 2019, the Company conducted a periodic review of the taxability of its services and determined that certain services may be subject to sales, use, telecommunications or other similar indirect taxes in certain jurisdictions. A similar review was performed on the taxability of services provided by Fuze, Inc., and it was determined that certain services may be subject to sales, use, telecommunications or other similar indirect taxes in certain jurisdictions. Accordingly, the Company recorded contingent indirect tax liabilities. As of September 30, 2023 and March 31, 2023, the Company had accrued contingent indirect tax liabilities of $15.1 million and $13.5 million, respectively.
6. CONVERTIBLE SENIOR NOTES AND TERM LOAN
2024 Notes
As of both September 30, 2023 and March 31, 2023, the Company had $63.3 million aggregate principal amount of 0.50% convertible senior notes due 2024 (the "2024 Notes") in a private placement, including the exercise in full of the initial purchasers' option to purchase additional notes. In August 2022, the Company used the proceeds from the issuance of the Term Loan (as defined below) to fund the cash portion of an exchange of the Company’s approximately $403.8 million aggregate principal amount of the 2024 Notes for cash plus approximately $201.9 million aggregate principal amount of the 2028 Notes (as defined below), and the concurrent repurchase of approximately $60.0 million of the Company’s common stock with the counterparties to such exchange.
The 2024 Notes are senior unsecured obligations of the Company, and interest is payable semiannually in arrears on February 1 and August 1 of each year. The Notes will mature on February 1, 2024, unless earlier repurchased, redeemed, or converted. During the three months ended September 30, 2023, the conditions allowing holders of the 2024 Notes to convert were not met. As of September 30, 2023, the Company was in compliance with all covenants set forth in the indenture governing the 2024 Notes.
The following table presents the net carrying amount and fair value of the liability component of the 2024 Notes (in thousands):
September 30, 2023March 31, 2023
Principal$63,295 $63,295 
Unamortized debt discount and issuance costs(142)(363)
Net carrying amount$63,153 $62,932 
The debt discount and debt issuance costs are amortized to interest expense over the term of the 2024 Notes at an effective interest rate of 1.2%.
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Interest expense recognized related to the 2024 Notes was as follows (in thousands):
Three Months Ended September 30,Six Months Ended September 30,
 2023202220232022
Contractual interest expense$80 $350 $159 $975 
Amortization of debt discount and issuance costs109 633 216 1,464 
Total interest expense$189 $983 $375 $2,439 
Term Loan and Warrants
As of September 30, 2023 and March 31, 2023, the Company had $225.0 million and $250.0 million, respectively, of principal amount outstanding in a senior secured term loan facility (the “Term Loan”) under a term loan credit agreement (the “Credit Agreement”) entered into on August 3, 2022 with Wilmington Savings Fund Society, FSB, as administrative agent, and certain affiliates of Francisco Partners (“FP”). The Term Loan matures on August 3, 2027 and bears interest at an annual rate equal to the term Standard Overnight Financing Rate ("Term SOFR") (subject to a floor of 1.00% and a credit spread adjustment of 0.10%), plus a margin of 6.50%. As of September 30, 2023, the effective interest rate for the Term Loan was 11.9%.
On May 9, 2023, the Company voluntarily prepaid $25.0 million of principal amount outstanding and $0.2 million of accrued interest on the Term Loan. This payment had no impact on the Company's compliance with the Term Loan covenants. As of September 30, 2023, the Company was in compliance with all covenants set forth in the credit agreement governing the Term Loan.
The obligations under the Credit Agreement will be guaranteed by the Company’s wholly-owned subsidiaries, subject to certain customary exceptions, and secured by a perfected security interest in substantially all of the Company’s tangible and intangible assets, as well as substantially all of the tangible and intangible assets of the guarantors.
In connection with the Credit Agreement, the Company issued detachable warrants (the “Warrants”) to affiliates of FP to purchase an aggregate of 3.1 million shares of the Company’s common stock with a five-year term and an exercise price of $7.15 per share (subject to adjustment) that represents a 27.5% premium over the closing price per share of the Company’s common stock on August 3, 2022. The Warrants are classified as liabilities measured at fair value during each reporting period as the Warrants contain certain terms that could result in cash settlement as a result of events outside of the Company’s control. As of September 30, 2023 and March 31, 2023, the fair value of the Warrants was $3.0 million and $5.5 million, respectively, and was recorded within other liabilities, non-current on the condensed consolidated balance sheets.
The following table presents the net carrying amount of the Term Loan (in thousands):
September 30, 2023March 31, 2023
Principal$225,000 $250,000 
Unamortized debt discount and issuance costs(14,697)(18,007)
Net carrying amount$210,303 $231,993 
Interest expense recognized related to the Term Loans was as follows (in thousands):
Three Months Ended September 30,Six Months Ended September 30,
 2023202220232022
Contractual interest expense$6,592 $3,209 $13,471 $3,209 
Amortization of debt discount and issuance costs768 434 1,542 434 
Total interest expense$7,360 $3,643 $15,013 $3,643 
2028 Notes
As of September 30, 2023 and March 31, 2023, the Company had $201.9 million aggregate principal amount of 4.00% convertible senior notes due 2028 (the “2028 Notes”), with debt issuance costs of approximately $5.6 million, of which 50% was paid in the form of shares of the Company's common stock.
The 2028 Notes are senior obligations of the Company that accrue interest, payable semi-annually in arrears on February 1 and August 1 of each year. The 2028 Notes will mature on February 1, 2028, unless earlier converted, redeemed or repurchased. As of September 30, 2023, the Company was in compliance with all covenants set forth in the indenture governing the 2028 Notes.
The debt discount and debt issuance costs are amortized to interest expense over the term of the 2028 Notes at an effective interest rate of 4.7%.
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The following table presents the net carrying amount of the 2028 Notes (in thousands):
September 30, 2023March 31, 2023
Principal$201,914 $201,914 
Unamortized debt discount and issuance costs(4,611)(5,093)
Net carrying amount$197,303 $196,821 
Interest expense recognized related to the 2028 Notes was as follows (in thousands):
Three Months Ended September 30,Six Months Ended September 30,
2023202220232022
Contractual interest expense$2,036 $1,106 $4,050 $1,106 
Amortization of debt discount and issuance costs255 102 482 102 
Total interest expense$2,291 $1,208 $4,532 $1,208 
7. STOCK-BASED COMPENSATION AND STOCKHOLDERS' EQUITY
The Company accounts for stock-based compensation through the measurement and recognition of compensation expense for share-based payment awards made to employees, directors or consultants over the related requisite service period, including stock appreciation rights, restricted stock, restricted stock units ("RSUs") and performance stock units ("PSUs"), qualified performance-based awards, and stock grants (all issuable under the Company's equity incentive plans).
The Company reserved 8.0 million shares of the Company's common stock for issuance under the 2022 Equity Incentive Plan (the "2022 Plan") plus the number of shares subject to awards that were outstanding under the 2012 Equity Incentive Plan (the "2012 Plan") as of 12:01 a.m. Pacific Time on June 22, 2022 (the “Prior Plan Expiration Time”), to the extent that, after the Prior Plan Expiration Time, such shares would have recycled back to the 2012 Plan in connection with the awards’ expiration, termination, cancellation, forfeiture, or repurchase, as described further below, and in each case, subject to adjustment upon certain changes in the Company’s capitalization. The 2022 Plan provides for the granting of incentive stock options to employees and non-statutory stock options to employees, directors or consultants, and granting of stock appreciation rights, restricted stock, restricted stock units and performance units, qualified performance-based awards, and stock grants. The stock option price of incentive stock options granted cannot be less than the fair market value on the effective date of the grant. Options, restricted stock, and restricted stock units generally vest over three or four years and expire ten years after the grant. As of September 30, 2023, 1,952,177 shares remained available for future grants under the 2022 Plan.
Stock-Based Compensation
The following table presents stock-based compensation expense (in thousands):
 Three Months Ended September 30,Six Months Ended September 30,
 2023202220232022
Cost of service revenue$1,137 $2,436 $2,823 $5,100 
Cost of other revenue459 925 854 2,036 
Research and development5,415 7,711 13,048 15,755 
Sales and marketing3,917 6,809 8,566 14,917 
General and administrative3,592 6,740 7,426 14,627 
Total$14,520 $24,621 $32,717 $52,435 
Restricted Stock Units
The following table presents the RSU activity (shares in thousands):
Number of
Shares
Weighted
Average Grant
Date Fair Value
Weighted Average
Remaining Contractual
Term (in Years)
Balance as of March 31, 202312,993 $8.56 1.84
Granted6,497 3.95 
Vested and released(5,318)8.53 
Forfeited(1,204)7.30 
Balance as of September 30, 202312,968 $6.38 2.06
As of September 30, 2023, there was $56.1 million of total unrecognized compensation cost related to RSUs, which is expected to be recognized over a weighted average of 2.06 years.
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Performance Stock Units
PSUs are issued to a group of executives and generally time vest over periods ranging from one to three years from the grant date; vesting is generally also contingent upon achievement of applicable performance metrics or strategic objectives. Vesting of performance-based stock units granted can be tied to our total shareholder return, as measured relative to specified market indices during the applicable performance periods and be contingent upon continued service. The related stock-based compensation expense is recognized over the requisite service period, taking into account the probability that we will satisfy the performance measures or strategic objectives.
The following table presents the PSU activity (shares in thousands):
Number of
Shares
Weighted
Average Grant
Date Fair Value
Weighted Average
Remaining Contractual
Term (in Years)
Balance as of March 31, 2023624 $11.30 1.45
Granted2,023 1.23 
Forfeited(116)21.83 
Balance as of September 30, 20232,531 2.77 3.12
Total unrecognized compensation cost related to PSUs was $11.5 million as of September 30, 2023, which is expected to be recognized over a weighted average of 3.12 years.
Employee Stock Purchase Plan ("ESPP")
As of September 30, 2023, there was approximately $2.5 million of unrecognized compensation cost related to employee stock purchases. This cost is expected to be recognized over a weighted average period of 0.6 years. In July 2022, the Company added 3.6 million shares to the ESPP for future issuances, and, as of September 30, 2023, a total of 2.4 million shares were available for issuance under the ESPP.
8. INCOME TAXES
The Company's effective tax rate was 5.0% and (5.4)% for the three months ended September 30, 2023 and 2022, respectively. The difference in the effective tax rate and the U.S. federal statutory rate was primarily due to the full valuation allowance the Company maintains against its deferred tax assets after adjusting for the impact of certain provisions enacted under the Tax Cuts and Jobs Act, current tax liabilities of profitable foreign subsidiaries subject to different local income tax rates, and state taxes in the United States. The effective tax rate is calculated by dividing the provision for income taxes by the loss before provision for income taxes.
9. NET LOSS PER SHARE
The following is a reconciliation of the weighted average number of common shares outstanding used in calculating basic and diluted net loss per share (in thousands, except per share data):
 Three Months Ended September 30,Six Months Ended September 30,
 2023202220232022
Net loss$(7,452)$(11,639)$(22,779)$(37,682)
Weighted average common shares outstanding - basic and diluted120,757 116,013 118,778 117,857 
Net loss per share - basic and diluted$(0.06)$(0.10)$(0.19)$(0.32)
As the Company was in a loss position for all periods presented, basic net loss per share is equivalent to diluted net loss per share for all periods, as the inclusion of all potential shares of common stock outstanding would have been anti-dilutive. The following potentially weighted-average common shares were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive (shares in thousands):
 Three Months Ended September 30,Six Months Ended September 30,
 2023202220232022
Stock options601 811 625 787 
Restricted stock units and Performance stock units10,855 15,895 9,878 8,804 
Potential shares attributable to the ESPP1,129 751 626 512 
Total anti-dilutive shares12,585 17,457 11,129 10,103 
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10. GEOGRAPHICAL INFORMATION
The following tables set forth the geographic information for each period (in thousands):
Three Months Ended September 30,Six Months Ended September 30,
 2023202220232022
United States$131,124 $136,532 $261,506 $272,652 
International53,875 50,857 106,780 102,357 
Total revenue$184,999 $187,389 $368,286 $375,009 
 September 30, 2023March 31, 2023
United States$50,035 $54,191 
International3,473 3,680 
Total property and equipment, net$53,508 $57,871 
11. RELATED PARTY TRANSACTIONS
The Company has been doing business with an outside sales and marketing vendor since December 2017, which became a related party in July 2022 when a member of the Company's board of directors joined the vendor's board of directors. The Company has a two-year contract with this vendor valued at $1.4 million and paid $0.7 million during the six months ended September 30, 2023.
12. SUBSEQUENT EVENT
On October 30, 2023, in support of the Company's office-home hybrid workforce model, the Company's board of directors authorized the cessation of use of approximately 42% of leased space at the Company’s headquarters at 675 Creekside Way, Campbell, CA. The Company plans to continue to hold this space available for sublease.
The Company intends to cease use of the space on November 1, 2023 and currently estimates it will incur total non-cash lease impairment charges of between $9.0 million to $10.0 million in the quarter ending December 31, 2023. The amounts will be recorded as an impairment of operating lease, right-of-use assets, and may vary in amount and timing due to a variety of factors.
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ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and related notes appearing elsewhere in this Quarterly Report. As discussed in the section titled “Forward-Looking Statements,” the following discussion and analysis contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to these differences include, but are not limited to, those discussed below and elsewhere in this Quarterly Report, particularly those set forth under the section entitled "Risk Factors" in the Form 10-K.
OVERVIEW
We are a leading provider of software-as-a-service ("SaaS") solutions for contact center, voice communications, video meetings, employee collaboration, and embeddable communication application program interfaces ("APIs"). Our solutions empower workforces worldwide by connecting individuals and teams so they can collaborate faster, work smarter, and better serve customers, from any location. The communications capabilities and advanced AI/ML (artificial intelligence/machine learning) technologies of our contact center, communication and collaboration solutions are integrated into a comprehensive cloud-based offering powered by our global communications platform, which together comprise our 8x8 XCaaS platform solution. The XCaaS platform delivers our unified communications ("UCaaS"), contact center ("CCaaS") and communication APIs ("CPaaS") services and includes AI-driven digital assistance, intuitive user interfaces, and real-time business analytics and intelligence, enabling organizations of all sizes to design, deploy and adapt tailored communications and workflows for differentiated employee and customer experiences.
The 8x8 XCaaS platform offers a complete cloud technology stack. It delivers the security, scalability, high availability, and ease-of-use of a modern cloud-based architecture while masking the complexity of a global communications infrastructure. A consistent data layer across the platform powers 8x8 AI/ML algorithms, as well as vertical-specific and purpose-built AI applications from our ecosystem of technology partners, to deliver data-driven business insights and intelligent integrated applications that drive employee productivity, resource optimization, and more effective end-customer interactions through simplified and automated workflows. Built from core cloud technologies that we own and manage internally and integrated with third-party applications from our technology partners, our XCaaS platform enables agile workplaces and fosters seamless communications and collaboration between an organization’s customers, contact center agents, and employees, regardless of geographic location.
Our customers use our XCaaS platform to create tailored employee and customer experiences that increase productivity, improve responsiveness, and elevate customer and employee satisfaction and loyalty. Our service plans are structured with increasing levels of functionality and are designated as X1, X2, etc., through X8, based on the specific communication needs and customer engagement profile of each user.
Because our XCaaS platform includes UCaaS, CCaaS and CPaaS and serves as a single integration framework for communications across an organization, customers can reduce costs associated with provisioning and management, increase customization based on use cases, and facilitate compliance with security and data privacy requirements on a global scale. In fiscal 2023, we introduced platform-wide integration of generative AI from OpenAI, making it easier for organizations to unlock the potential of generative AI to personalize self-service, bot-based and agent-based customer engagements. The XCaaS platform also integrates with a growing ecosystem of third-party applications, ranging from purpose-built and vertically-focused AI-based applications to broadly deployed customer relationship management (CRM) platforms and leading customer engagement and workforce management software.
Our open approach to third party integrations and platform-wide enablement of generative AI, combined with flexibility to “mix and match” functionality based on users’ communication requirements and customer engagement profiles, allows organizations of all sizes to design and deploy tailored user experiences previously reserved to very large enterprises.
Our customers range from small businesses to large enterprises across all vertical markets, with users in more than 180 countries. In recent years, we have increased our focus on mid-market, small and medium enterprise, and public sector customers because these organizations typically have more complex communication and contact center requirements compared to the needs of small business customers. Organizations in these sectors – typically with 500 to 10,000 employees – are more likely to adopt multiple services and realize greater value from our unified, global communications platform and portfolio of AI-enabled solutions.
We generate service revenue from subscriptions and usage of our communications services and platform. We generate other revenue from professional services and the sale of office phones and other hardware equipment. We define a “customer” as one or more legal entities to which we provide services pursuant to a single contractual arrangement. In some cases, we may have multiple billing relationships with a single customer (for example, where we establish separate billing accounts for a parent company and each of its subsidiaries).
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SUMMARY AND OUTLOOK
In the second quarter of fiscal 2024, our total revenue decreased $2.4 million, or approximately 1% year-over-year, to $185.0 million primarily due to a $1.6 million and $0.8 million decrease in other revenue and service revenue, respectively.
As part of our long-term strategy to expand our enterprise customer base, grow our revenue, achieve profitability and increase our cash flow, we have focused on reducing the cost of delivering our services and improving our sales efficiency while increasing our investment in research and development. To improve our sales efficiency, we have focused our sales and marketing resources on mid-market and enterprise customers, since these customers are likely to derive the greatest benefit from our unified XCaaS platform. We have also expanded our partner programs to extend our reach within this market, placing increased emphasis on developing a community of value-added resellers who provide implementation services and Tier 1 customer support in addition to sales. To support our customers and partners, we are expanding our customer success organization and investing in improvements to our back-office processes in order to increase our operational efficiency over time.
We believe that continued innovation is a critical factor in attracting and retaining mid-market and enterprise customers and is an important variable in achieving sustainable growth. We are committed to maintaining a high level of investment in engineering to deliver product innovation across our XCaaS platform, expand our ecosystem of integrations, and maintain the high availability our customers require. Approximately two-thirds of our investment in research and development is focused on extending the contact center capabilities of our XCaaS platform, including AI integrations, user experiences, and advanced data capture and analytics.
We use annualized recurring and usage revenue ("ARR") to measure the success of our strategy to attract and retain customers. Total ARR as of September 30, 2023 was $707 million and increased 2% from the end of the second quarter of fiscal 2023. ARR from mid-market and enterprise customers represented 76% of total ARR and remained flat compared to the end of the second quarter of fiscal 2023. We define enterprise customers as customers generating more than $100,000 in ARR, mid-market as customers with ARR between $25,000 and $100,000, and small business as customers with up to $25,000 in ARR. Mid-market customers may become enterprise customers over time as they expand their deployments and adopt more solutions from our XCaaS portfolio.
ARR from enterprise customers has increased steadily as a percentage of total ARR, increasing from 35% of total ARR in fiscal 2019 to 58% of total ARR at the end of the second quarter of fiscal 2024.
ARR associated with small business customers was 24% of total ARR for the second quarter of fiscal 2024. We remain committed to retaining our installed base of small business customers but have reduced promotional programs and digital marketing to attract new small business UCaaS-only customers. See "Key Business Metrics" below for further discussion on how we define ARR.
In August 2022, we refinanced approximately $403.8 million of the $500.0 million aggregate principal amount of 2024 Notes through an exchange for approximately $201.9 million in 2028 Notes plus approximately $181.8 million in cash. The cash payment was funded with the partial proceeds of a $250.0 million senior secured term loan due in 2027 entered into in August 2022. Concurrently with the issuance of the 2028 Notes, we repurchased 10,695,000 shares of our common stock for approximately $60 million in privately negotiated transactions with a limited number of holders. In September 2022, December 2022, and February 2023, we repurchased $6.0 million, $21.8 million, and $5.0 million in aggregate principal amount of the 2024 Notes, respectively, in separate privately negotiated transactions. Approximately $63.3 million of the 2024 Notes remained outstanding as of September 30, 2023. See Note 6, Convertible Senior Notes and Term Loan to our condensed consolidated financial statements for details. In May 2023, we voluntarily prepaid $25.0 million of principal amount outstanding on our senior secured term loan, reducing the total principal amount outstanding to $225.0 million. Due to the adjustable nature of the interest rate on our senior secured term loan, our net income may vary.
In addition, to align our resources with our long-term strategy, we conducted two separate workforce reductions in fiscal 2023 involving approximately 300 employees, primarily in the sales and marketing and general and administration functions.
KEY BUSINESS METRICS
Our management periodically reviews certain key business metrics to evaluate our operations, allocate resources, and drive financial performance in our business.
Annualized Recurring Subscriptions and Usage Revenue
Our management measures the success of our strategy to attract and retain customers by analyzing trends in ARR and believes ARR may be useful to investors in evaluating our performance. Our management believes ARR is an important indicator for measuring the overall performance of the business because it encompasses new customer additions, add-on sales, renewals and customer churn in a single metric. Our management uses trends in total ARR and ARR by customer segment to assess our ongoing operations, allocate resources, and drive the financial performance of the business. We define ARR as equal to the sum of the most recent month of (i) recurring subscription amounts and (ii) platform usage charges for all CPaaS customers (subject to a minimum billings threshold for a period of at least six consecutive months), multiplied by 12.
We are not aware of any uniform standards for calculating ARR and caution that our presentation may not be consistent with that of other companies. For example, to the extent our ARR is used to evaluate trends in future revenue, such an evaluation would assume a sustained level of usage from existing CPaaS customers which may fluctuate in future periods. Our presentation of
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ARR has not been derived from financial measures that have been prepared in accordance with U.S. Generally Accepted Accounting Principles.
COMPONENTS OF RESULTS OF OPERATIONS
Service Revenue
Service revenue consists of communication services subscriptions, platform usage revenue, and related fees from our UCaaS, CCaaS, and CPaaS offerings.
Other Revenue
Other revenue consists of revenue from professional services, primarily in support of deployment of our solutions and/or platform, and revenue from sales and rentals of IP telephones in conjunction with our cloud telephony service. Other revenue is dependent on the number of customers who choose to purchase or rent an IP telephone hardware in conjunction with our service instead of using the solution on their cell phones, computers, or other compatible devices, and/or choose to engage our professional services organization for implementation and deployment of our cloud services.
Cost of Service Revenue
Cost of service revenue consists primarily of costs associated with network operations and related personnel, technology licenses, amortization of capitalized internal-use software, other communication origination and termination services provided by third-party carriers, outsourced customer service call center operations, and other costs such as customer service, and technical support costs. We allocate overhead costs, such as information technology ("IT") and facilities, to cost of service revenue, as well as to each of the operating expense categories, generally based on relative headcount. Our IT costs include costs for IT infrastructure and personnel. Facilities costs primarily consist of office leases and related expenses.
Cost of Other Revenue
Cost of other revenue consists primarily of direct and indirect costs associated with the purchase and shipping and handling of IP telephones as well as the scheduling, shipping and handling, personnel costs, and other expenditures incurred in connection with the professional services associated with the deployment and implementation of our products, and allocated IT and facilities costs.
Research and Development
Research and development expenses consist primarily of personnel and related costs, third-party development, software and equipment costs necessary for us to conduct our product, platform development and engineering efforts, as well as allocated IT and facilities costs.
Sales and Marketing
Sales and marketing expenses consist primarily of personnel and related costs, sales commissions, including those to the channel, trade shows, advertising and other marketing, demand generation, and promotional expenses, as well as allocated IT and facilities costs.
General and Administrative
General and administrative expenses consist primarily of personnel and related costs, professional services fees, corporate administrative costs, tax and regulatory fees, and allocated IT and facilities costs.
Other Expense, Net
Other expense, net, consists primarily of interest expense related to our convertible notes and term loan, amortization of debt discount and issuance costs, offset by gains on debt extinguishment, as well as other income.
Provision for (benefit from) Income Taxes
Provision for (benefit from) income taxes consists of U.S. federal and state income taxes and income taxes in certain foreign jurisdictions. As we expand the scale of our international business activities, any changes in the United States and foreign taxation of such activities may increase our overall provision for income taxes in the future. We have a valuation allowance for our United States deferred tax assets, including federal and state non-operating loss carryforwards. We expect to maintain this valuation allowance until it becomes more likely than not that the benefit of our federal and state deferred tax assets will be realized by way of expected future taxable income in the United States.
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RESULTS OF OPERATIONS
Revenue
Service revenue
Three months ended September 30,Six Months Ended September 30,
 (In thousands, except percentages)
20232022Change20232022Change
Service revenue
$177,782$178,556$(774)(0.4)%$353,020$357,717$(4,697)(1.3)%
Percentage of total revenue96.1 %95.3 %  95.9 %95.4 %
Three Months Ended
Service revenue decreased for the three months ended September 30, 2023 compared to the three months ended September 30, 2022 primarily due to increased customer churn and down-sell in our customer base partially offset by new subscription revenue and short messaging services ("SMS") usage.
Six Months Ended
Service revenue decreased for the six months ended September 30, 2023 compared to the six months ended September 30, 2022 primarily due to increased customer churn and down-sell in our inorganic customer base and lower usage revenue in the Southeast Asia region, mainly from SMS and voice customers, offset by new subscription revenue from new organic bookings.
We continue to monitor factors that could have an impact on customer buying behavior and demand, including macroeconomic conditions, contract duration, churn, upsell and down-sell, renewals, and payment terms, all of which could cause variability in our revenue.
Other revenue
Three months ended September 30,Six Months Ended September 30,
 (In thousands, except percentages)20232022Change20232022Change
Other revenue$7,217$8,833$(1,616)(18.3)%$15,266$17,292$(2,026)(11.7)%
Percentage of total revenue3.9 %4.7 %  4.1 %4.6 %
Three Months Ended and Six Months Ended
Other revenue decreased for the three and six months ended September 30, 2023 compared to the three and six months ended September 30, 2022 due to lower professional service and product revenue.
Cost of Revenue
Cost of service revenue
Three months ended September 30,Six Months Ended September 30,
 (In thousands, except percentages)20232022Change20232022Change
Cost of service revenue$49,144$51,038$(1,894)(3.7)%$95,420$104,585$(9,165)(8.8)%
Percentage of service revenue27.6 %28.6 %  27.0 %29.2 %
Three Months Ended
Cost of service revenue decreased in dollars and as a percentage of service revenue for the three months ended September 30, 2023 compared to the three months ended September 30, 2022 due to decreases of $1.5 million in combined employee, consulting costs and stock-based compensation expense, and $1.6 million related to the amortization of capitalized software and intangible assets. The decrease was partially offset by $1.2 million increased costs to deliver our services.

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Six Months Ended
Cost of service revenue decreased in dollars and as a percentage of service revenue for the six months ended September 30, 2023 compared to the six months ended September 30, 2022 due to decreases of $2.3 million in the costs to deliver our services, $3.4 million of combined employee, consulting and stock-based compensation expense, and $3.5 million related to the amortization of capitalized software and intangible assets.
We expect the total dollar amount of cost of service revenue and as a percentage of revenue to vary with the amount of service revenue and the mix of subscription and usage revenue within service revenue.
Cost of other revenue
Three months ended September 30,Six Months Ended September 30,
 (In thousands, except percentages)20232022Change20232022Change
Cost of other revenue$7,958$11,000$(3,042)(27.7)%$16,356$24,126$(7,770)(32.2)%
Percentage of other revenue110.3 %124.5 %  107.1 %139.5 %

Three Months Ended and Six Months Ended
Cost of other revenue decreased both in dollars and as a percentage of other revenue for the three and six months ended September 30, 2023 compared to the three and six months ended September 30, 2022 primarily due to decreased personnel-related costs to deliver our professional services coupled with lower product costs.
Operating Expenses
Research and development
Three months ended September 30,Six Months Ended September 30,
 (In thousands, except percentages)20232022Change20232022Change
Research and development
$34,207$36,019$(1,812)(5.0)%$69,499$70,974$(1,475)(2.1)%
Percentage of total revenue18.5 %19.2 %  18.9 %18.9 %

Three Months Ended
Research and development expenses decreased for the three months ended September 30, 2023 compared to the three months ended September 30, 2022 primarily due to decreases of $2.4 million in stock-based compensation, $0.6 million in amortization of capitalized software, and $0.5 million in internally-developed software. These decreases were partially offset by increases of $1.9 million in combined employee, consulting and other costs.
Six Months Ended
Research and development expenses decreased for the six months ended September 30, 2023 compared to the six months ended September 30, 2022, primarily due to decreases of $3.3 million in stock-based compensation, $1.2 million in amortization of capitalized software, and $0.3 million in internally-developed software. These decreases were partially offset by increases of $3.4 million in combined employee, consulting and other costs.

22

Sales and marketing
Three months ended September 30,Six Months Ended September 30,
 (In thousands, except percentages)20232022Change20232022Change
Sales and marketing$68,687$80,487$(11,800)(14.7)%$137,191$164,014$(26,823)(16.4)%
Percentage of total revenue37.1 %43.0 %  37.3 %43.7 %
Three Months Ended
Sales and marketing expenses decreased in dollars and as a percentage of revenue for the three months ended September 30, 2023 compared to the three months ended September 30, 2022 primarily due to decreases of $6.3 million in personnel-related and consulting costs, $3.9 million in paid media and marketing services and other costs, and $2.6 million in stock-based compensation expense. These decreases were partially offset by an increase of $1.1 million in channel commissions.
Six Months Ended
Sales and marketing expenses decreased in dollars and as a percentage of revenue for the six months ended September 30, 2023 compared to the six months ended September 30, 2022 primarily due to decreases of $13.0 million in personnel-related and consulting costs, $9.3 million of combined paid media, marketing services and other costs, and $5.6 million in stock-based compensation expense. These decreases were partially offset by an increase of $1.3 million in channel commissions.
General and administrative
Three months ended September 30,Six Months Ended September 30,
 (In thousands, except percentages)20232022Change20232022Change
General and administrative$27,586$33,835$(6,249)(18.5)%$53,812$63,054$(9,242)(14.7)%
Percentage of total revenue14.9 %18.1 %  14.6 %16.8 %
Three Months Ended
General and administrative expenses decreased both in dollars and as a percentage of other revenue for the three months ended September 30, 2023 compared to the three months ended September 30, 2022 primarily due to decreases of $3.8 million of combined acquisition, integration, contract termination and other costs, $3.1 million in stock-based compensation expense, and $2.6 million in personnel-related and consulting costs. These decreases were partially offset by higher legal and regulatory costs of $3.3 million primarily related to indirect tax contingencies.
Six Months Ended
General and administrative expenses decreased both in dollars and as a percentage of other revenue for the six months ended September 30, 2023 compared to the six months ended September 30, 2022 primarily due to decreases of $7.0 million in stock-based compensation, $4.7 million of combined acquisition, integration, contract termination and other costs, and $2.8 million in personnel-related, consulting and other costs. These decreases were partially offset by a $5.2 million increase in legal and regulatory costs primarily related to indirect tax contingencies.

Other (expense) income, net
Three months ended September 30,Six Months Ended September 30,
 (In thousands, except percentages)20232022Change20232022Change
Other (expense) Income, net$(5,258)$13,950$(19,208)NM$(17,732)$15,066$(32,798)NM
Percentage of total revenue(2.8)%7.4 %  (4.8)%4.0 %
NM = not meaningful
23

Three Months Ended
We recognized $5.3 million of other expense, net during the three months ended September 30, 2023 compared to $14.0 million of other income, net during the three months ended September 30, 2022 primarily due to a $16.1 million gain from debt extinguishment from the 2024 convertible notes recorded in the prior year comparable period, a $4.0 million increase in interest expense on our variable-rate term loan entered into in the second quarter of fiscal 2023, and $0.6 million in unrealized foreign exchange losses. These were partially offset by a $1.5 million gain on remeasurement of warrants issued in connection with the term loan.
Six Months Ended
We recognized $17.7 million of other expense, net during the six months ended September 30, 2023 compared to $15.1 million of other income, net during the six months ended September 30, 2022 primarily due to $16.1 million gain from debt extinguishment from the 2024 convertible notes recorded in the prior year comparable period, $1.8 million loss from debt extinguishment from the 2024 convertible notes recorded in the current period, a $12.4 million increase in interest expense on our variable-rate term loan entered into in the second quarter of fiscal 2023, and $3.8 million in unrealized foreign exchange losses. These were partially offset by a $1.2 million gain on remeasurement of warrants issued in connection with the term loan.
Provision (benefit) for income taxes
Three months ended September 30,Six Months Ended September 30,
 (In thousands, except percentages)20232022Change20232022Change
Provision (benefit) for income taxes$(389)$599$(988)NM$1,055$1,004$51 NM
Percentage of total revenue(0.2)%0.3 %  0.3 %0.3 %
NM = not meaningful
Three Months Ended
Provision (benefit) for income taxes decreased for the three months ended September 30, 2023 compared to the three months ended September 30, 2022 primarily due to the change in profit before taxes in our international operations coupled with an income tax benefit realized due to the release of a contingent liability related to our international operations.
Six Months Ended
Provision for income taxes increased for the six months ended September 30, 2023 compared to the six months ended September 30, 2022 primarily due to higher profit before taxes in our international operations coupled with the limitation of certain state net operating loss carryforwards that can be utilized to offset the additional taxable income.

Liquidity and Capital Resources
As of September 30, 2023 and March 31, 2023, we had $148.8 million and $137.6 million, respectively, of cash and cash equivalents and investments. In addition, we had $1.0 million and $1.3 million, respectively, in restricted cash in support of letters of credit securing leases for office facilities and certain equipment for the same periods.
Our primary requirements for liquidity and capital are working capital, research and development and marketing activities, principal and interest payments on our outstanding debt and other general corporate needs. Historically, these cash requirements have been met through cash provided by operating activities and cash and cash equivalents. Our current capital deployment strategy for the remainder of fiscal 2024 is to invest excess cash on hand to support our continued growth initiatives into select markets and planned software development activities and pay down our debt. As of September 30, 2023, we are not party to any off-balance sheet arrangements that have had or are reasonably likely to have a current or future material effect on our financial condition, results of operations, liquidity, capital expenditures, or capital resources. Significant cash requirements for the remainder of the fiscal year include our operating lease obligations, interest payments related to our debt obligations, retirement of our 2024 Notes, and operating and capital purchase commitments. For information regarding our expected cash requirements and timing of payments related to leases and noncancellable purchase commitments, see Note 5, Leases, and Note 6, Commitments and Contingencies, respectively, to the consolidated financial statements in our Form 10-K. Additionally, see Note 7, Convertible Senior Notes, Term Loan and Capped Calls, to the consolidated financial statements in our Form 10-K for more information related to our debt obligations and applicable covenants.
We believe that our existing cash, cash equivalents and investment balances and our anticipated cash flows from operations will be sufficient to meet our working capital, expenditure, and contractual obligation requirements for the next 12 months and the foreseeable future. Although we believe we have adequate sources of liquidity for the next 12 months and the foreseeable future, the success of our operations, the global economic outlook, and the pace of sustainable growth in our markets could impact our business and liquidity.
24

Period-over-Period Changes
Net cash provided by operating activities for the six months ended September 30, 2023 was $43.9 million compared to $19.7 million for the six months ended September 30, 2022. Cash used in or provided by operating activities is primarily affected by:
net loss;
cash paid for interest expense associated with the outstanding Term Loan, 2024 Notes and 2028 Notes;
non-cash expense items, such as depreciation, amortization, accretion, allowance for credit losses and impairments;
non-cash loss associated with extinguishment of debt;
non-cash expense associated with stock options and stock-based compensation and awards;
gain on remeasurement of warrants.
changes in working capital accounts, particularly related to the timing of collections from receivables and payments of obligations, such as commissions.
Operating Activities
For the six months ended September 30, 2023, net cash provided in operating activities reflected non-cash adjustments of $84.8 million to our net loss of $22.8 million, including stock-based compensation expense of $32.7 million, depreciation and amortization expenses of $24.3 million, operating lease expenses, net of accretion, of $5.1 million, amortization of deferred sales commission costs of $20.1 million, and $2.5 million gain on warrant valuation, $1.8 million loss from debt extinguishment, and $2.2 million of amortization of debt discount and issuance costs. Non-cash adjustments were partially offset by $18.1 million of working capital adjustments driven by $12.1 million in deferred sales commission costs, $0.3 million in accounts receivable, $2.9 million in accounts payable and accruals and $2.1 million in deferred revenue.
For the six months ended September 30, 2022, net cash provided in operating activities was a result of an adjustment to net loss of $93.7 million in non-cash charges, such as stock-based compensation expense of $52.4 million, depreciation and amortization expenses of $27.8 million, amortization of deferred sales commission costs of $18.8 million, $16.1 million gain from debt extinguishment, operating lease expenses of $5.9 million, and $1.3 million gain from remeasurement of warrants. These adjustments for non-cash charges were partially offset by $36.3 million of working capital adjustments driven by $14.7 million in accounts payable and accruals and $13.8 million in deferred sales commission costs.
Investing Activities
Net cash provided in investing activities was $12.7 million for the six months ended September 30, 2023, as compared to $9.8 million of cash used in the six months ended September 30, 2022. The cash provided by investing activities during the six months ended September 30, 2023 primarily related to $21.7 million of net proceeds from maturities and purchases of investments, which was partially offset by $7.4 million in capitalization of internally developed software.
Net cash used in investing activities was $9.8 million for the six months ended September 30, 2022. The cash used in investing activities primarily related to $17.3 million of net proceeds from sales and maturities of investments, partially offset by $4.3 million of internally developed software capitalization, $1.8 million purchase of property and equipment, and $1.3 million payout of the cash holdback related to the Fuze, Inc. acquisition.
Financing Activities
Net cash used in financing activities was $22.6 million for the six months ended September 30, 2023, as compared to $16.2 million of cash provided by financing activities for the six months ended September 30, 2022. The cash used in financing activities for the six months ended September 30, 2023 was primarily driven by $25.0 million of repayments on our term loan.
Net cash provided by financing activities was $16.2 million for the six months ended September 30, 2022. The cash used in financing activities for the six months ended September 30, 2022 was primarily driven by $190.6 million of net repayment and refinancing of senior convertible notes, and $60.2 million of shares repurchased (net of $5.9 million of warrants issued), which were substantially offset by $232.9 million of net proceeds from the term loan.
Debt Obligations
See Note 6, Convertible Senior Notes and Term Loan in the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report for information regarding our debt obligations.

25

CRITICAL ACCOUNTING POLICIES AND ESTIMATES
The discussion and analysis of our financial condition and results of operations are based upon our condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosures of assets and liabilities. On an ongoing basis, we evaluate our critical accounting policies and estimates. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.
Our consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). See Note 1, The Company and Significant Accounting Policies, in the notes to the unaudited condensed consolidated financial statements included in this Quarterly Report, which describes the significant accounting policies and methods used in the preparation of our consolidated financial statements. There have been no significant changes during the six months ended September 30, 2023 to our critical accounting policies and estimates previously disclosed in our Form 10-K.
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes in our exposures to market risk since March 31, 2023. For details on the Company’s interest rate and foreign currency exchange risks, see Part I, Item 7A. “Quantitative and Qualitative Information About Market Risks” in our Form 10-K.
ITEM 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, as of September 30, 2023. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of September 30, 2023, our disclosure controls and procedures were effective at a reasonable assurance level.
Changes in Internal Control Over Financial Reporting
During the six months ended September 30, 2023, there was no change in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
Limitations on the Effectiveness of Controls
Our management, including the Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls or internal control over financial reporting will prevent all errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system's objectives will be met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected.
26

PART II. OTHER INFORMATION
ITEM 1. Legal Proceedings
Information with respect to this item may be found in Note 5, Commitments and Contingencies under the heading “Legal Proceedings” in the Notes to Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report is incorporated by reference in response to this item.
ITEM 1A. Risk Factors
There have been no material changes in the risk factors previously disclosed in Part I, Item 1A. “Risks Factors” of our Form 10-K.
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds
(a) None.
(b) None.
(c) None.
ITEM 3. Defaults Upon Senior Securities
None.
ITEM 4. Mine Safety Disclosures
Not applicable.
ITEM 5. Other Information
None of our directors or officers (as defined in Rule 16a-1(f) under the Exchange Act) adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement (as defined in Item 408(c) of Regulation S-K) during the quarterly period covered by this Quarterly Report except as described below:
Kevin Kraus, Chief Financial Officer, adopted an amended Rule 10b5-1 Trading Plan on September 12, 2023 that is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act. Mr. Kraus's Rule 10b5-1 Trading Plan provides for the potential sale of up to 12,000 shares of the Company's common stock between December 12, 2023 and November 30, 2024.
Laurence Denny, Chief Legal Officer, adopted a Rule 10b5-1 Trading Plan on September 6, 2023 that is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act. Mr. Denny's Rule 10b5-1 Trading Plan provides for the potential sale of up to 13,303 shares of the Company's common stock between December 6, 2023 and May 31, 2024.
27

ITEM 6. Exhibits
Incorporated by Reference
Exhibit NumberExhibit DescriptionCompany FormFiling DateExhibit NumberFiled Herewith
3.18-K7/13/20223.1
3.28-K7/28/20153.2
31.1X
31.2X
32.1X
32.2X
101
The following materials from 8x8, Inc.'s Quarterly Report on Form 10-Q for the three and six months ended September 30, 2023, formatted in Inline XBRL: (i) Condensed Consolidated Balance Sheets as of September 30, 2023 and March 31, 2023, (ii) Condensed Consolidated Statements of Operations for the three and six months ended September 30, 2023 and 2022, (iii) Condensed Consolidated Statements of Comprehensive Loss for the three and six months ended September 30, 2023 and 2022, (iv) Condensed Consolidated Statements of Stockholders’ Equity as of September 30, 2023 and 2022, (v) Condensed Consolidated Statements of Cash Flows for the six months ended September 30, 2023 and 2022, and (vi) Notes to Consolidated Financial Statements, tagged as blocks of text and including detailed tags XBRL Instance Document
X
* Indicates management contract or compensatory plan or arrangement.
28

SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant, 8x8, Inc., a Delaware corporation, has duly caused this Quarterly Report on Form 10-Q to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Campbell, State of California, on November 3, 2023.
8x8, Inc.
/s/ Suzy Seandel
Suzy Seandel
Chief Accounting Officer
(Principal Accounting Officer and Duly Authorized Officer)

29

Exhibit 31.1
CERTIFICATION PURSUANT TO
RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934
AS ADOPTED PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Samuel Wilson, certify that:
1.I have reviewed this quarterly report on Form 10-Q of 8x8, Inc.;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and
d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
 
November 3, 2023
/s/ Samuel Wilson
Samuel Wilson
Chief Executive Officer



Exhibit 31.2
CERTIFICATION PURSUANT TO
RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934
AS ADOPTED PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Kevin Kraus, certify that:
1.I have reviewed this Quarterly report on Form 10-Q of 8x8, Inc.;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and
d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
 
November 3, 2023
/s/ Kevin Kraus
Kevin Kraus
Chief Financial Officer


Exhibit 32.1
CERTIFICATION PURSUANT TO
18 U.S. C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report on Form 10-Q of 8x8, Inc. (the "Company") for the period ended September 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Samuel Wilson, Chief Executive Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
 
/s/ Samuel Wilson
Samuel Wilson
Chief Executive Officer
November 3, 2023
This certification accompanies this Report pursuant to § 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, or otherwise required, be deemed filed by the Company for purposes of § 18 of the Securities Exchange Act of 1934, as amended.


Exhibit 32.2
CERTIFICATION PURSUANT TO
18 U.S. C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report on Form 10-Q of 8x8, Inc. (the "Company") for the period ended September 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Kevin Kraus, Chief Financial Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
 
/s/ Kevin Kraus
Kevin Kraus
Chief Financial Officer
November 3, 2023
This certification accompanies this Report pursuant to §906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, or otherwise required, be deemed filed by the Company for purposes of §18 of the Securities Exchange Act of 1934, as amended.


v3.23.3
Cover Page - shares
6 Months Ended
Sep. 30, 2023
Oct. 23, 2023
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2023  
Document Transition Report false  
Entity File Number 001-38312  
Entity Registrant Name 8x8, INC.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 77-0142404  
Entity Address, Address Line One 675 Creekside Way  
Entity Address, City or Town Campbell  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 95008  
City Area Code 408  
Local Phone Number 727-1885  
Title of 12(b) Security COMMON STOCK, PAR VALUE $0.001 PER SHARE  
Trading Symbol EGHT  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   122,163,547
Entity Central Index Key 0001023731  
Amendment Flag false  
Current Fiscal Year End Date --03-31  
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2024  
v3.23.3
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Sep. 30, 2023
Mar. 31, 2023
Current assets:    
Cash and cash equivalents $ 144,030 $ 111,400
Restricted cash, current 521 511
Short-term investments 4,744 26,228
Accounts receivable, net of allowance for expected credit losses of $3,036 and $3,644 as of September 30, 2023 and March 31, 2023, respectively 61,063 62,307
Deferred sales commission costs, current 37,610 38,048
Other current assets 33,967 34,630
Total current assets 281,935 273,124
Property and equipment, net 53,508 57,871
Operating lease, right-of-use assets 50,396 52,444
Intangible assets, net 96,914 107,112
Goodwill 265,732 266,863
Restricted cash, non-current 462 818
Deferred sales commission costs, non-current 60,440 67,644
Other assets, non-current 14,336 15,934
Total assets 823,723 841,810
Current liabilities:    
Accounts payable 49,391 46,802
Accrued compensation 21,793 29,614
Accrued taxes 35,854 29,570
Operating lease liabilities, current 11,623 11,504
Deferred revenue, current 33,223 34,909
Convertible senior notes, current 63,153 62,932
Other accrued liabilities 14,053 14,556
Total current liabilities 229,090 229,887
Operating lease liabilities, non-current 61,926 65,623
Deferred revenue, non-current 10,231 10,615
Convertible senior notes 197,303 196,821
Term loan 210,303 231,993
Other liabilities, non-current 4,460 6,965
Total liabilities  713,313 741,904
Commitments and contingencies (Note 5)
Stockholders' equity:    
Preferred stock: $0.001 par value, 5,000,000 shares authorized, none issued and outstanding as of September 30, 2023 and March 31, 2023 0 0
Common stock: $0.001 par value, 300,000,000 shares authorized, 121,858,602 shares and 114,659,255 shares issued and outstanding as of September 30, 2023 and March 31, 2023, respectively 122 115
Additional paid-in capital 941,493 905,635
Accumulated other comprehensive loss (15,509) (12,927)
Accumulated deficit (815,696) (792,917)
Total stockholders' equity 110,410 99,906
Total liabilities and stockholders' equity $ 823,723 $ 841,810
v3.23.3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Sep. 30, 2023
Mar. 31, 2023
Stockholders' equity:    
Expected credit losses $ 3,036 $ 3,644
Preferred stock, par value (in dollars per share) $ 0.001 $ 0.001
Preferred stock, shares authorized (in shares) 5,000,000 5,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value per share (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized (in shares) 300,000,000 300,000,000
Common stock, shares issued (in shares) 121,858,602 114,659,255
Common stock, shares outstanding (in shares) 121,858,602 114,659,255
v3.23.3
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 6 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Total revenue $ 184,999 $ 187,389 $ 368,286 $ 375,009
Operating expenses:        
Research and development 34,207 36,019 69,499 70,974
Sales and marketing 68,687 80,487 137,191 164,014
General and administrative 27,586 33,835 53,812 63,054
Total operating expenses 187,582 212,379 372,278 426,753
Loss from operations (2,583) (24,990) (3,992) (51,744)
Other (expense) income, net (5,258) 13,950 (17,732) 15,066
Loss before (benefit from) provision for income taxes (7,841) (11,040) (21,724) (36,678)
Provision (benefit) for income taxes (389) 599 1,055 1,004
Net loss $ (7,452) $ (11,639) $ (22,779) $ (37,682)
Net loss per share:        
Basic (in dollars per share) $ (0.06) $ (0.10) $ (0.19) $ (0.32)
Diluted (in dollars per share) $ (0.06) $ (0.10) $ (0.19) $ (0.32)
Weighted average number of shares:        
Basic (in shares) 120,757 116,013 118,778 117,857
Diluted (in shares) 120,757 116,013 118,778 117,857
Service revenue        
Total revenue $ 177,782 $ 178,556 $ 353,020 $ 357,717
Operating expenses:        
Cost of revenue 49,144 51,038 95,420 104,585
Other revenue        
Total revenue 7,217 8,833 15,266 17,292
Operating expenses:        
Cost of revenue $ 7,958 $ 11,000 $ 16,356 $ 24,126
v3.23.3
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Income Statement [Abstract]        
Interest expense $ (8,929) $ (4,883) $ (17,899) $ (5,508)
Amortization of debt discount and issuance costs (1,132) (1,169) (2,240) (2,000)
Gain on warrants remeasurement 2,781 1,293 2,531 1,293
Gain (loss) on debt extinguishment 0 16,106 (1,766) 16,106
Gain on foreign exchange 1,565 2,124 761 4,600
Other income 457 479 881 575
Other (expense) income, net $ (5,258) $ 13,950 $ (17,732) $ 15,066
v3.23.3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Statement of Comprehensive Income [Abstract]        
Net loss $ (7,452) $ (11,639) $ (22,779) $ (37,682)
Other comprehensive income (loss), net of tax        
Unrealized gain (loss) on investments in securities 7 (5) 297 (99)
Foreign currency translation adjustment (4,320) (8,548) (2,879) (16,932)
Comprehensive loss $ (11,765) $ (20,192) $ (25,361) $ (54,713)
v3.23.3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
$ in Thousands
Total
Adjustment
Common Stock
Additional Paid-in Capital
Additional Paid-in Capital
Adjustment
Accumulated Other Comprehensive Loss
Accumulated Deficit
Accumulated Deficit
Adjustment
Beginning balance (in shares) at Mar. 31, 2022     117,863          
Beginning balance at Mar. 31, 2022 $ 182,366 $ (46,160) $ 118 $ 956,599 $ (92,832) $ (7,913) $ (766,438) $ 46,672
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Issuance of common stock under stock plans, less withholding (in shares)     1,796          
Issuance of common stock under stock plans, less withholding 65   $ 2 63        
Stock-based compensation expense 31,807     31,807        
Unrealized investment loss (94)         (94)    
Foreign currency translation adjustment (8,419)     (35)   (8,384)    
Net loss (26,043)           (26,043)  
Ending balance (in shares) at Jun. 30, 2022     119,659          
Ending balance at Jun. 30, 2022 133,522   $ 120 895,602   (16,391) (745,809)  
Beginning balance (in shares) at Mar. 31, 2022     117,863          
Beginning balance at Mar. 31, 2022 182,366 $ (46,160) $ 118 956,599 $ (92,832) (7,913) (766,438) $ 46,672
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Unrealized investment loss (99)              
Net loss (37,682)              
Ending balance (in shares) at Sep. 30, 2022     111,445          
Ending balance at Sep. 30, 2022 84,782   $ 111 867,063   (24,944) (757,448)  
Beginning balance (in shares) at Jun. 30, 2022     119,659          
Beginning balance at Jun. 30, 2022 133,522   $ 120 895,602   (16,391) (745,809)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Issuance of common stock under stock plans, less withholding (in shares)     1,047          
Issuance of common stock under stock plans, less withholding 0   $ 1 (1)        
ESPP share issuance (in shares)     419          
ESPP share issuance 1,648     1,648        
Stock-based compensation expense 24,936     24,936        
Shares repurchase (in shares)     (10,695)          
Shares repurchase (60,214)   $ (11) (60,203)        
Shares issued for debt issuance (in shares)     1,015          
Shares issued for debt issuance 5,082   $ 1 5,081        
Unrealized investment loss (5)         (5)    
Foreign currency translation adjustment (8,548)         (8,548)    
Net loss (11,639)           (11,639)  
Ending balance (in shares) at Sep. 30, 2022     111,445          
Ending balance at Sep. 30, 2022 $ 84,782   $ 111 867,063   (24,944) (757,448)  
Beginning balance (in shares) at Mar. 31, 2023 114,659,255   114,659          
Beginning balance at Mar. 31, 2023 $ 99,906   $ 115 905,635   (12,927) (792,917)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Issuance of common stock under stock plans, less withholding (in shares)     3,535          
Issuance of common stock under stock plans, less withholding 0   $ 3 (3)        
Stock-based compensation expense 18,559     18,559        
Issuance of common stock under stock plans, less withholding, related to Fuze acquisition (in shares)     1,038          
Issuance of common stock under stock plans, less withholding, related to Fuze acquisition 0   $ 1 (1)        
Unrealized investment loss 290         290    
Foreign currency translation adjustment 1,441         1,441    
Net loss (15,327)           (15,327)  
Ending balance (in shares) at Jun. 30, 2023     119,232          
Ending balance at Jun. 30, 2023 $ 104,869   $ 119 924,190   (11,196) (808,244)  
Beginning balance (in shares) at Mar. 31, 2023 114,659,255   114,659          
Beginning balance at Mar. 31, 2023 $ 99,906   $ 115 905,635   (12,927) (792,917)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Unrealized investment loss 297              
Net loss $ (22,779)              
Ending balance (in shares) at Sep. 30, 2023 121,858,602   121,859          
Ending balance at Sep. 30, 2023 $ 110,410   $ 122 941,493   (15,509) (815,696)  
Beginning balance (in shares) at Jun. 30, 2023     119,232          
Beginning balance at Jun. 30, 2023 104,869   $ 119 924,190   (11,196) (808,244)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Issuance of common stock under stock plans, less withholding (in shares)     1,784          
Issuance of common stock under stock plans, less withholding 0   $ 2 (2)        
ESPP share issuance (in shares)     843          
ESPP share issuance 2,366   $ 1 2,365        
Stock-based compensation expense 14,940     14,940        
Unrealized investment loss 7         7    
Foreign currency translation adjustment (4,320)         (4,320)    
Net loss $ (7,452)           (7,452)  
Ending balance (in shares) at Sep. 30, 2023 121,858,602   121,859          
Ending balance at Sep. 30, 2023 $ 110,410   $ 122 $ 941,493   $ (15,509) $ (815,696)  
v3.23.3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
6 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Cash flows from operating activities:    
Net loss $ (22,779) $ (37,682)
Adjustments to reconcile net loss to net cash provided by operating activities:    
Depreciation 4,090 5,624
Amortization of intangible assets 10,198 10,723
Amortization of capitalized internal-use software costs 10,061 11,494
Amortization of debt discount and issuance costs 2,240 2,000
Amortization of deferred sales commission costs 20,099 18,839
Allowance for credit losses 993 1,781
Operating lease expense, net of accretion 5,109 5,925
Impairment of right-of-use assets 0 2,424
Stock-based compensation expense 32,717 52,435
Loss (gain) on debt extinguishment 1,766 (16,106)
Gain on remeasurement of warrants (2,531) (1,293)
Other 52 (192)
Changes in assets and liabilities:    
Accounts receivable 299 (4,579)
Deferred sales commission costs (12,068) (13,834)
Other current and non-current assets (1,306) 1,223
Accounts payable and accruals (2,934) (14,733)
Deferred revenue (2,070) (4,367)
Net cash provided by operating activities 43,936 19,682
Cash flows from investing activities:    
Purchases of property and equipment (1,558) (1,845)
Capitalized internal-use software costs (7,442) (4,328)
Purchases of investments (6,174) (27,669)
Sales of investments  0 8,296
Maturities of investments  27,909 36,641
Acquisition of businesses, net of cash acquired 0 (1,250)
Net cash provided by investing activities 12,735 9,845
Cash flows from financing activities:    
Proceeds from issuance of common stock under employee stock plans 2,365 1,713
Repayment of principal on term loan (25,000) 0
Net proceeds from term loan 0 232,861
Repayment and exchange of convertible senior notes 0 (190,553)
Repurchase of common stock 0 (60,214)
Net cash used in financing activities (22,635) (16,193)
Effect of exchange rate changes on cash (1,752) (12,207)
Net increase in cash, cash equivalents and restricted cash 32,284 1,127
Cash, cash equivalents and restricted cash, beginning of year 112,729 100,714
Cash, cash equivalents and restricted cash, end of year 145,013 101,841
Supplemental information:    
Interest paid 17,799 4,654
Income taxes paid 3,118 1,167
Warrants issued in connection with term loan 0 5,915
Shares issued in connection with term loan and convertible senior notes 0 5,082
Reconciliation of cash, cash equivalents, and restricted cash at the end of the period:    
Cash and cash equivalents 144,030 100,512
Restricted cash, current 521 511
Restricted cash, non-current 462 818
Total cash, cash equivalents and restricted cash $ 145,013 $ 101,841
v3.23.3
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES
6 Months Ended
Sep. 30, 2023
Accounting Policies [Abstract]  
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES
THE COMPANY
8x8, Inc. ("8x8" or the "Company") was incorporated in California in February 1987 and was reincorporated in Delaware in December 1996. The Company trades under the symbol "EGHT" on the Nasdaq Global Select Market.
The Company is a leading Software-as-a-Service ("SaaS") provider of contact center, voice, video, chat, and enterprise-class API solutions powered by one global cloud communications platform. 8x8 empowers workforces worldwide by connecting individuals and teams, so they can collaborate faster and work smarter from anywhere. 8x8 provides real-time business analytics and intelligence, giving its customers unique insights across all interactions and channels on its platform, so they can support a distributed and hybrid working model while delighting their end-customers and accelerating their business. A majority of all revenue is generated from communication services subscriptions and platform usage. The Company also generates revenue from sales of hardware and professional services, which are complementary to the delivery of its integrated technology platform.
BASIS OF PRESENTATION AND CONSOLIDATION
The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. Accordingly, certain information and disclosures normally included in the Company's annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements as of and for the fiscal year ended March 31, 2023 and notes thereto included in the Form 10-K. There were no material changes during the three and six months ended September 30, 2023 to the Company's significant accounting policies as described in the Form 10-K.
The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company conducts its operations through one reportable segment.
In the opinion of the Company's management, these condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of the Company's financial position, results of operations and cash flows for the periods presented. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for any subsequent quarter or for the entire year ending March 31, 2024.
USE OF ESTIMATES
The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and equity, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including, but not limited to, those related to current expected credit losses, returns reserve for expected cancellations, fair value of and/or potential impairment of goodwill and value and useful life of long-lived assets (including intangible assets and right-of-use assets), capitalized internal-use software costs, benefit period for deferred commissions, stock-based compensation, incremental borrowing rate used to calculate operating lease liabilities, income and sales tax liabilities, convertible senior notes fair value, litigation, and other contingencies. The Company bases its estimates on known facts and circumstances, historical experience, and various other assumptions. Actual results could differ from those estimates under different assumptions or conditions.
RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS
There were no recent accounting pronouncements that were applicable to the Company adopted during the six months ended September 30, 2023.
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED
Recent accounting pronouncements that may be applicable to the Company are not expected to have a material impact on its present or future financial statements.
v3.23.3
REVENUE RECOGNITION
6 Months Ended
Sep. 30, 2023
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION REVENUE RECOGNITION
Disaggregation of Revenue
The Company disaggregates its revenue by geographic region. See Note 10. Geographical Information.
Contract Balances
The following table provides amounts of receivables, contract assets, and deferred revenue from contracts with customers (in thousands):
 September 30, 2023March 31, 2023
Accounts receivable, net$61,063 $62,307 
Contract assets, current (component of Other current assets)
11,317 11,581 
Contract assets, non-current (component of Other assets)
9,639 11,141 
Deferred revenue, current33,223 34,909 
Deferred revenue, non-current10,231 10,615 
The change in contract assets was primarily driven by billing customers for amounts that had previously been recognized in revenue but not yet billed. The decrease in deferred revenue was due to reduced billings done in advance of performance obligations being satisfied. During the six months ended September 30, 2023, the Company recognized revenues of approximately $28.6 million that were included in deferred revenue at the beginning of the fiscal year.
Remaining Performance Obligations
The Company's subscription terms typically range from one to five years. Contract revenue from the remaining performance obligations that had not yet been recognized as of September 30, 2023 was approximately $780.0 million. This amount excludes contracts with an original expected length of less than one year. The Company expects to recognize revenue on approximately 86% of the remaining performance obligations over the next 24 months and approximately 14% over the remainder of the subscription period.
For purposes of this disclosure, the Company excludes contracts with an original expected length of less than one year. Since the new and renewal contracts entered into with customers are generally for terms of one year or longer, updating this disclosure to include contracts with a term of one year or more presents a more appropriate measure of the Company's remaining performance obligations.
Deferred Sales Commission Costs
Amortization of deferred sales commission costs for the three months ended September 30, 2023 and 2022 was approximately $10.1 million and $9.6 million, respectively, and $20.1 million and $18.8 million during the six months ended September 30, 2023 and 2022, respectively. There were no material write-offs during the three and six months ended September 30, 2023 and 2022.
v3.23.3
FAIR VALUE MEASUREMENTS
6 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
Cash, cash equivalents, and available-for-sale investments were as follows (in thousands):
As of September 30, 2023Amortized
Costs
Gross
Unrealized
Gain
Gross
Unrealized
Loss
Estimated
Fair Value
Cash and
Cash
Equivalents
Restricted Cash
(Current & Non-current)
Short-Term
Investments
Cash$70,729 $— $— $70,729 $70,729 $— $— 
Level 1:
Money market funds64,070 — — 64,070 63,087 983 — 
Treasury securities599 — — 599 — — 599 
Subtotal135,398 — — 135,398 133,816 983 599 
Level 2:
Term deposit
10,214 — — 10,214 10,214 — — 
Commercial paper4,146 — (1)4,145 — 4,145 
Subtotal14,360 — (1)14,359 10,214 — 4,145 
Total assets$149,758 $— $(1)$149,757 $144,030 $983 $4,744 
As of March 31, 2023Amortized
Costs
Gross
Unrealized
Gain
Gross
Unrealized
Loss
Estimated
Fair Value
Cash and
Cash
Equivalents
Restricted Cash
(Current & Non-current)
Short-Term
Investments
Cash$95,828 $— $— $95,828 $95,828 $— $— 
Level 1:
Money market funds8,935 — — 8,935 8,935 — — 
Treasury securities1,599 (1)1,602 — — 1,602 
Subtotal106,362 (1)106,365 104,763 — 1,602 
Level 2:
Certificate of deposit1,329 — — 1,329 — 1,329 — 
Commercial paper8,610 — (2)8,608 6,637 — 1,971 
Corporate debt22,625 55 (25)22,655 — — 22,655 
Subtotal32,564 55 (27)32,592 6,637 1,329 24,626 
Total assets$138,926 $59 $(28)$138,957 $111,400 $1,329 $26,228 
The restricted cash component of the money market funds is comprised of letters of credit securing leases for certain office facilities.
The Company considers its investments available to support its current operations and has classified investments in debt securities as available-for-sale securities. The Company does not intend to sell any of its investments that are in unrealized loss positions and, as of September 30, 2023, has determined that it is not more likely than not that it will be required to sell any of these investments before recovery of the entire amortized cost basis.
The Company regularly reviews the changes to the rating of its securities at the individual security level by rating agencies and reasonably monitors the surrounding economic conditions to assess the risk of expected credit losses. As of September 30, 2023, the Company did not record any allowance for credit losses on its investments.
The Company uses the Black-Scholes option-pricing valuation model to value its detachable warrants from inception and at each reporting period. Changes in the fair values of the detachable warrants liability are recorded as loss on warrants remeasurement within Other (expense) income, net in the condensed consolidated statements of operations.
The following table presents additional information about valuation techniques and inputs used for the detachable warrants (see Note 6, Convertible Senior Notes and Term Loan) that are measured at fair value and categorized within Level 3 as of September 30, 2023 and March 31, 2023 (dollars in thousands):
September 30, 2023March 31, 2023
Estimated fair value of detachable warrants$2,966 $5,497 
Unobservable inputs:
Stock volatility80.0%67.2%
Risk-free rate4.7%3.6%
Expected term3.9 years4.4 years
As of September 30, 2023 and March 31, 2023, the estimated fair value of the Company's convertible senior notes due in 2024 was $60.2 million and $57.3 million, respectively, and the estimated fair value of the Company’s convertible senior notes due in 2028 was $192.0 million and $183.0 million, respectively (see Note 6, Convertible Senior Notes and Term Loan). The fair value of the convertible senior notes was determined based on the closing price of each of the securities on the last trading day of the reporting period, and each is considered to be Level 2 in the fair value hierarchy due to limited trading activity of the debt instruments. As of September 30, 2023 and March 31, 2023, the carrying value of the Company’s Term Loan approximates its estimated fair value.
v3.23.3
INTANGIBLE ASSETS AND GOODWILL
6 Months Ended
Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS AND GOODWILL INTANGIBLE ASSETS AND GOODWILL
The carrying value of intangible assets consisted of the following (in thousands):
 September 30, 2023March 31, 2023
Gross
Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Technology$46,448 $(32,582)$13,866 $46,461 $(28,361)$18,100 
Customer relationships105,824 (22,776)83,048 105,836 (16,824)89,012 
Trade names and domains582 (582)— 584 (584)— 
Total acquired identifiable intangible assets$152,854 $(55,940)$96,914 $152,881 $(45,769)$107,112 
As of September 30, 2023, the weighted average remaining useful lives for technology and customer relationships were 1.9 years and 7.2 years, respectively.
The annual amortization of the Company's intangible assets, based upon existing intangible assets and current useful lives, is estimated to be as follows (in thousands):
 Amount
Remainder of 2024$10,198 
202519,095 
202613,896 
202711,757 
202811,044 
Thereafter30,924 
Total$96,914 
The following table provides a summary of the changes in the carrying amounts of goodwill (in thousands):
 Amount
Balance as of March 31, 2023$266,863 
Foreign currency translation(1,131)
Balance as of September 30, 2023$265,732 
v3.23.3
COMMITMENTS AND CONTINGENCIES
6 Months Ended
Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES
Indemnifications
In the normal course of business, the Company may agree to indemnify other parties, including customers, lessors, and parties to other transactions with the Company with respect to certain matters, such as breaches of representations or covenants or intellectual property infringement or other claims made by third parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. In addition, the Company has entered into indemnification agreements with its officers and directors.
It is not possible to determine the maximum potential amount of the Company's exposure under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material impact on the Company's operating results, financial position, or cash flows. Under some of these agreements, however, the Company's potential indemnification liability may not have a contractual limit.
Operating Leases
The Company's lease obligations consist of the Company's principal facility and various leased facilities under operating lease agreements. No material leases were executed during the three months ended September 30, 2023. See Note 5. Leases in the Company's Form 10-K for more information on the Company's leases and the future minimum lease payments.
Purchase Obligations
The Company's purchase obligations include contracts with third-party customer support vendors and third-party network service providers. These contracts include minimum monthly commitments and the requirements to maintain the service level for several months.
During the six months ended September 30, 2023, the Company entered into a $28.1 million noncancellable three-year hosting service contract. Under this agreement, $3.8 million remains due during fiscal year 2024, $10.0 million will be due during fiscal 2025, and $10.5 million will be due during fiscal 2026.
Legal Proceedings
The Company may be involved in various claims, lawsuits, investigations, and other legal proceedings, including intellectual property, commercial, regulatory compliance, securities, and employment matters that arise in the normal course of business. The Company determines whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated. The Company regularly evaluates current information to determine whether any accruals should be adjusted and whether new accruals are required. Actual claims could settle or be adjudicated against the Company in the future for materially different amounts than the Company has accrued due to the inherently unpredictable nature of litigation. Legal costs are expensed as incurred.
The Company believes it has recorded adequate provisions for any such lawsuits and claims and proceedings as of September 30, 2023. The Company believes that damage amounts claimed in these matters are not meaningful indicators of potential liability. Some of the matters pending against the Company involve potential compensatory, punitive, or treble damage claims or sanctions, that, if granted, could require the Company to pay damages or make other expenditures in amounts that could have a material adverse effect on its consolidated financial statements. Given the inherent uncertainties of litigation, the ultimate outcome of the ongoing matters described herein cannot be predicted, and the Company believes it has valid defenses with respect to the legal matters pending against it. Nevertheless, the consolidated financial statements could be materially adversely affected in a particular period by the resolution of one or more of these contingencies.
State and Local Taxes and Surcharges
From time to time, the Company has received inquiries from a number of state and local taxing agencies with respect to the remittance of sales, use, telecommunications, excise, and income taxes. Several jurisdictions currently are conducting tax audits of the Company's records. The Company collects or has accrued amounts for taxes that it believes are required to be remitted. The amounts that have been remitted have historically been within the accruals established by the Company. The Company adjusts its accrual when facts relating to specific exposures warrant such adjustment. During the second quarter of fiscal 2019, the Company conducted a periodic review of the taxability of its services and determined that certain services may be subject to sales, use, telecommunications or other similar indirect taxes in certain jurisdictions. A similar review was performed on the taxability of services provided by Fuze, Inc., and it was determined that certain services may be subject to sales, use, telecommunications or other similar indirect taxes in certain jurisdictions. Accordingly, the Company recorded contingent indirect tax liabilities. As of September 30, 2023 and March 31, 2023, the Company had accrued contingent indirect tax liabilities of $15.1 million and $13.5 million, respectively.
v3.23.3
CONVERTIBLE SENIOR NOTES AND TERM LOAN
6 Months Ended
Sep. 30, 2023
Debt Disclosure [Abstract]  
CONVERTIBLE SENIOR NOTES AND TERM LOAN CONVERTIBLE SENIOR NOTES AND TERM LOAN
2024 Notes
As of both September 30, 2023 and March 31, 2023, the Company had $63.3 million aggregate principal amount of 0.50% convertible senior notes due 2024 (the "2024 Notes") in a private placement, including the exercise in full of the initial purchasers' option to purchase additional notes. In August 2022, the Company used the proceeds from the issuance of the Term Loan (as defined below) to fund the cash portion of an exchange of the Company’s approximately $403.8 million aggregate principal amount of the 2024 Notes for cash plus approximately $201.9 million aggregate principal amount of the 2028 Notes (as defined below), and the concurrent repurchase of approximately $60.0 million of the Company’s common stock with the counterparties to such exchange.
The 2024 Notes are senior unsecured obligations of the Company, and interest is payable semiannually in arrears on February 1 and August 1 of each year. The Notes will mature on February 1, 2024, unless earlier repurchased, redeemed, or converted. During the three months ended September 30, 2023, the conditions allowing holders of the 2024 Notes to convert were not met. As of September 30, 2023, the Company was in compliance with all covenants set forth in the indenture governing the 2024 Notes.
The following table presents the net carrying amount and fair value of the liability component of the 2024 Notes (in thousands):
September 30, 2023March 31, 2023
Principal$63,295 $63,295 
Unamortized debt discount and issuance costs(142)(363)
Net carrying amount$63,153 $62,932 
The debt discount and debt issuance costs are amortized to interest expense over the term of the 2024 Notes at an effective interest rate of 1.2%.
Interest expense recognized related to the 2024 Notes was as follows (in thousands):
Three Months Ended September 30,Six Months Ended September 30,
 2023202220232022
Contractual interest expense$80 $350 $159 $975 
Amortization of debt discount and issuance costs109 633 216 1,464 
Total interest expense$189 $983 $375 $2,439 
Term Loan and Warrants
As of September 30, 2023 and March 31, 2023, the Company had $225.0 million and $250.0 million, respectively, of principal amount outstanding in a senior secured term loan facility (the “Term Loan”) under a term loan credit agreement (the “Credit Agreement”) entered into on August 3, 2022 with Wilmington Savings Fund Society, FSB, as administrative agent, and certain affiliates of Francisco Partners (“FP”). The Term Loan matures on August 3, 2027 and bears interest at an annual rate equal to the term Standard Overnight Financing Rate ("Term SOFR") (subject to a floor of 1.00% and a credit spread adjustment of 0.10%), plus a margin of 6.50%. As of September 30, 2023, the effective interest rate for the Term Loan was 11.9%.
On May 9, 2023, the Company voluntarily prepaid $25.0 million of principal amount outstanding and $0.2 million of accrued interest on the Term Loan. This payment had no impact on the Company's compliance with the Term Loan covenants. As of September 30, 2023, the Company was in compliance with all covenants set forth in the credit agreement governing the Term Loan.
The obligations under the Credit Agreement will be guaranteed by the Company’s wholly-owned subsidiaries, subject to certain customary exceptions, and secured by a perfected security interest in substantially all of the Company’s tangible and intangible assets, as well as substantially all of the tangible and intangible assets of the guarantors.
In connection with the Credit Agreement, the Company issued detachable warrants (the “Warrants”) to affiliates of FP to purchase an aggregate of 3.1 million shares of the Company’s common stock with a five-year term and an exercise price of $7.15 per share (subject to adjustment) that represents a 27.5% premium over the closing price per share of the Company’s common stock on August 3, 2022. The Warrants are classified as liabilities measured at fair value during each reporting period as the Warrants contain certain terms that could result in cash settlement as a result of events outside of the Company’s control. As of September 30, 2023 and March 31, 2023, the fair value of the Warrants was $3.0 million and $5.5 million, respectively, and was recorded within other liabilities, non-current on the condensed consolidated balance sheets.
The following table presents the net carrying amount of the Term Loan (in thousands):
September 30, 2023March 31, 2023
Principal$225,000 $250,000 
Unamortized debt discount and issuance costs(14,697)(18,007)
Net carrying amount$210,303 $231,993 
Interest expense recognized related to the Term Loans was as follows (in thousands):
Three Months Ended September 30,Six Months Ended September 30,
 2023202220232022
Contractual interest expense$6,592 $3,209 $13,471 $3,209 
Amortization of debt discount and issuance costs768 434 1,542 434 
Total interest expense$7,360 $3,643 $15,013 $3,643 
2028 Notes
As of September 30, 2023 and March 31, 2023, the Company had $201.9 million aggregate principal amount of 4.00% convertible senior notes due 2028 (the “2028 Notes”), with debt issuance costs of approximately $5.6 million, of which 50% was paid in the form of shares of the Company's common stock.
The 2028 Notes are senior obligations of the Company that accrue interest, payable semi-annually in arrears on February 1 and August 1 of each year. The 2028 Notes will mature on February 1, 2028, unless earlier converted, redeemed or repurchased. As of September 30, 2023, the Company was in compliance with all covenants set forth in the indenture governing the 2028 Notes.
The debt discount and debt issuance costs are amortized to interest expense over the term of the 2028 Notes at an effective interest rate of 4.7%.
The following table presents the net carrying amount of the 2028 Notes (in thousands):
September 30, 2023March 31, 2023
Principal$201,914 $201,914 
Unamortized debt discount and issuance costs(4,611)(5,093)
Net carrying amount$197,303 $196,821 
Interest expense recognized related to the 2028 Notes was as follows (in thousands):
Three Months Ended September 30,Six Months Ended September 30,
2023202220232022
Contractual interest expense$2,036 $1,106 $4,050 $1,106 
Amortization of debt discount and issuance costs255 102 482 102 
Total interest expense$2,291 $1,208 $4,532 $1,208 
v3.23.3
STOCK-BASED COMPENSATION AND STOCKHOLDERS' EQUITY
6 Months Ended
Sep. 30, 2023
Equity [Abstract]  
STOCK-BASED COMPENSATION AND STOCKHOLDERS' EQUITY STOCK-BASED COMPENSATION AND STOCKHOLDERS' EQUITY
The Company accounts for stock-based compensation through the measurement and recognition of compensation expense for share-based payment awards made to employees, directors or consultants over the related requisite service period, including stock appreciation rights, restricted stock, restricted stock units ("RSUs") and performance stock units ("PSUs"), qualified performance-based awards, and stock grants (all issuable under the Company's equity incentive plans).
The Company reserved 8.0 million shares of the Company's common stock for issuance under the 2022 Equity Incentive Plan (the "2022 Plan") plus the number of shares subject to awards that were outstanding under the 2012 Equity Incentive Plan (the "2012 Plan") as of 12:01 a.m. Pacific Time on June 22, 2022 (the “Prior Plan Expiration Time”), to the extent that, after the Prior Plan Expiration Time, such shares would have recycled back to the 2012 Plan in connection with the awards’ expiration, termination, cancellation, forfeiture, or repurchase, as described further below, and in each case, subject to adjustment upon certain changes in the Company’s capitalization. The 2022 Plan provides for the granting of incentive stock options to employees and non-statutory stock options to employees, directors or consultants, and granting of stock appreciation rights, restricted stock, restricted stock units and performance units, qualified performance-based awards, and stock grants. The stock option price of incentive stock options granted cannot be less than the fair market value on the effective date of the grant. Options, restricted stock, and restricted stock units generally vest over three or four years and expire ten years after the grant. As of September 30, 2023, 1,952,177 shares remained available for future grants under the 2022 Plan.
Stock-Based Compensation
The following table presents stock-based compensation expense (in thousands):
 Three Months Ended September 30,Six Months Ended September 30,
 2023202220232022
Cost of service revenue$1,137 $2,436 $2,823 $5,100 
Cost of other revenue459 925 854 2,036 
Research and development5,415 7,711 13,048 15,755 
Sales and marketing3,917 6,809 8,566 14,917 
General and administrative3,592 6,740 7,426 14,627 
Total$14,520 $24,621 $32,717 $52,435 
Restricted Stock Units
The following table presents the RSU activity (shares in thousands):
Number of
Shares
Weighted
Average Grant
Date Fair Value
Weighted Average
Remaining Contractual
Term (in Years)
Balance as of March 31, 202312,993 $8.56 1.84
Granted6,497 3.95 
Vested and released(5,318)8.53 
Forfeited(1,204)7.30 
Balance as of September 30, 202312,968 $6.38 2.06
As of September 30, 2023, there was $56.1 million of total unrecognized compensation cost related to RSUs, which is expected to be recognized over a weighted average of 2.06 years.
Performance Stock Units
PSUs are issued to a group of executives and generally time vest over periods ranging from one to three years from the grant date; vesting is generally also contingent upon achievement of applicable performance metrics or strategic objectives. Vesting of performance-based stock units granted can be tied to our total shareholder return, as measured relative to specified market indices during the applicable performance periods and be contingent upon continued service. The related stock-based compensation expense is recognized over the requisite service period, taking into account the probability that we will satisfy the performance measures or strategic objectives.
The following table presents the PSU activity (shares in thousands):
Number of
Shares
Weighted
Average Grant
Date Fair Value
Weighted Average
Remaining Contractual
Term (in Years)
Balance as of March 31, 2023624 $11.30 1.45
Granted2,023 1.23 
Forfeited(116)21.83 
Balance as of September 30, 20232,531 2.77 3.12
Total unrecognized compensation cost related to PSUs was $11.5 million as of September 30, 2023, which is expected to be recognized over a weighted average of 3.12 years.
Employee Stock Purchase Plan ("ESPP")
As of September 30, 2023, there was approximately $2.5 million of unrecognized compensation cost related to employee stock purchases. This cost is expected to be recognized over a weighted average period of 0.6 years. In July 2022, the Company added 3.6 million shares to the ESPP for future issuances, and, as of September 30, 2023, a total of 2.4 million shares were available for issuance under the ESPP.
v3.23.3
INCOME TAXES
6 Months Ended
Sep. 30, 2023
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXESThe Company's effective tax rate was 5.0% and (5.4)% for the three months ended September 30, 2023 and 2022, respectively. The difference in the effective tax rate and the U.S. federal statutory rate was primarily due to the full valuation allowance the Company maintains against its deferred tax assets after adjusting for the impact of certain provisions enacted under the Tax Cuts and Jobs Act, current tax liabilities of profitable foreign subsidiaries subject to different local income tax rates, and state taxes in the United States. The effective tax rate is calculated by dividing the provision for income taxes by the loss before provision for income taxes.
v3.23.3
NET LOSS PER SHARE
6 Months Ended
Sep. 30, 2023
Earnings Per Share [Abstract]  
NET LOSS PER SHARE NET LOSS PER SHARE
The following is a reconciliation of the weighted average number of common shares outstanding used in calculating basic and diluted net loss per share (in thousands, except per share data):
 Three Months Ended September 30,Six Months Ended September 30,
 2023202220232022
Net loss$(7,452)$(11,639)$(22,779)$(37,682)
Weighted average common shares outstanding - basic and diluted120,757 116,013 118,778 117,857 
Net loss per share - basic and diluted$(0.06)$(0.10)$(0.19)$(0.32)
As the Company was in a loss position for all periods presented, basic net loss per share is equivalent to diluted net loss per share for all periods, as the inclusion of all potential shares of common stock outstanding would have been anti-dilutive. The following potentially weighted-average common shares were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive (shares in thousands):
 Three Months Ended September 30,Six Months Ended September 30,
 2023202220232022
Stock options601 811 625 787 
Restricted stock units and Performance stock units10,855 15,895 9,878 8,804 
Potential shares attributable to the ESPP1,129 751 626 512 
Total anti-dilutive shares12,585 17,457 11,129 10,103 
v3.23.3
GEOGRAPHICAL INFORMATION
6 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
GEOGRAPHICAL INFORMATION GEOGRAPHICAL INFORMATION
The following tables set forth the geographic information for each period (in thousands):
Three Months Ended September 30,Six Months Ended September 30,
 2023202220232022
United States$131,124 $136,532 $261,506 $272,652 
International53,875 50,857 106,780 102,357 
Total revenue$184,999 $187,389 $368,286 $375,009 
 September 30, 2023March 31, 2023
United States$50,035 $54,191 
International3,473 3,680 
Total property and equipment, net$53,508 $57,871 
v3.23.3
RELATED PARTY TRANSACTIONS
6 Months Ended
Sep. 30, 2023
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS RELATED PARTY TRANSACTIONSThe Company has been doing business with an outside sales and marketing vendor since December 2017, which became a related party in July 2022 when a member of the Company's board of directors joined the vendor's board of directors. The Company has a two-year contract with this vendor valued at $1.4 million and paid $0.7 million during the six months ended September 30, 2023
v3.23.3
SUBSEQUENT EVENT
6 Months Ended
Sep. 30, 2023
Subsequent Events [Abstract]  
SUBSEQUENT EVENT SUBSEQUENT EVENTOn October 30, 2023, in support of the Company's office-home hybrid workforce model, the Company's board of directors authorized the cessation of use of approximately 42% of leased space at the Company’s headquarters at 675 Creekside Way, Campbell, CA. The Company plans to continue to hold this space available for sublease.The Company intends to cease use of the space on November 1, 2023 and currently estimates it will incur total non-cash lease impairment charges of between $9.0 million to $10.0 million in the quarter ending December 31, 2023. The amounts will be recorded as an impairment of operating lease, right-of-use assets, and may vary in amount and timing due to a variety of factors.
v3.23.3
Pay vs Performance Disclosure - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Sep. 30, 2023
Jun. 30, 2023
Sep. 30, 2022
Jun. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Pay vs Performance Disclosure            
Net loss $ (7,452) $ (15,327) $ (11,639) $ (26,043) $ (22,779) $ (37,682)
v3.23.3
Insider Trading Arrangements
3 Months Ended 6 Months Ended
Sep. 30, 2023
shares
Sep. 30, 2023
shares
Trading Arrangements, by Individual    
Non-Rule 10b5-1 Arrangement Adopted false  
Rule 10b5-1 Arrangement Terminated false  
Non-Rule 10b5-1 Arrangement Terminated false  
Kevin Kraus [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement   Kevin Kraus, Chief Financial Officer, adopted an amended Rule 10b5-1 Trading Plan on September 12, 2023 that is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act. Mr. Kraus's Rule 10b5-1 Trading Plan provides for the potential sale of up to 12,000 shares of the Company's common stock between December 12, 2023 and November 30, 2024.
Name Kevin Kraus  
Title Chief Financial Officer  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date September 12, 2023  
Arrangement Duration 354 days  
Aggregate Available 12,000 12,000
Laurence Denny [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement   Laurence Denny, Chief Legal Officer, adopted a Rule 10b5-1 Trading Plan on September 6, 2023 that is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act. Mr. Denny's Rule 10b5-1 Trading Plan provides for the potential sale of up to 13,303 shares of the Company's common stock between December 6, 2023 and May 31, 2024.
Name Laurence Denny  
Title Chief Legal Officer  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date September 6, 2023  
Arrangement Duration 177 days  
Aggregate Available 13,303 13,303
v3.23.3
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES (Policies)
6 Months Ended
Sep. 30, 2023
Accounting Policies [Abstract]  
Basis of Presentation and Consolidation
BASIS OF PRESENTATION AND CONSOLIDATION
The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. Accordingly, certain information and disclosures normally included in the Company's annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements as of and for the fiscal year ended March 31, 2023 and notes thereto included in the Form 10-K. There were no material changes during the three and six months ended September 30, 2023 to the Company's significant accounting policies as described in the Form 10-K.
The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company conducts its operations through one reportable segment.
In the opinion of the Company's management, these condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of the Company's financial position, results of operations and cash flows for the periods presented. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for any subsequent quarter or for the entire year ending March 31, 2024.
Use of Estimates
USE OF ESTIMATES
The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and equity, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including, but not limited to, those related to current expected credit losses, returns reserve for expected cancellations, fair value of and/or potential impairment of goodwill and value and useful life of long-lived assets (including intangible assets and right-of-use assets), capitalized internal-use software costs, benefit period for deferred commissions, stock-based compensation, incremental borrowing rate used to calculate operating lease liabilities, income and sales tax liabilities, convertible senior notes fair value, litigation, and other contingencies. The Company bases its estimates on known facts and circumstances, historical experience, and various other assumptions. Actual results could differ from those estimates under different assumptions or conditions.
Recently Adopted Accounting Pronouncements/ Recently Issued Accounting Pronouncements Not Yet Adopted
RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS
There were no recent accounting pronouncements that were applicable to the Company adopted during the six months ended September 30, 2023.
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED
Recent accounting pronouncements that may be applicable to the Company are not expected to have a material impact on its present or future financial statements.
Indemnifications
Indemnifications
In the normal course of business, the Company may agree to indemnify other parties, including customers, lessors, and parties to other transactions with the Company with respect to certain matters, such as breaches of representations or covenants or intellectual property infringement or other claims made by third parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. In addition, the Company has entered into indemnification agreements with its officers and directors.
It is not possible to determine the maximum potential amount of the Company's exposure under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material impact on the Company's operating results, financial position, or cash flows. Under some of these agreements, however, the Company's potential indemnification liability may not have a contractual limit.
v3.23.3
REVENUE RECOGNITION (Tables)
6 Months Ended
Sep. 30, 2023
Revenue from Contract with Customer [Abstract]  
Schedule of Contract Balances
The following table provides amounts of receivables, contract assets, and deferred revenue from contracts with customers (in thousands):
 September 30, 2023March 31, 2023
Accounts receivable, net$61,063 $62,307 
Contract assets, current (component of Other current assets)
11,317 11,581 
Contract assets, non-current (component of Other assets)
9,639 11,141 
Deferred revenue, current33,223 34,909 
Deferred revenue, non-current10,231 10,615 
v3.23.3
FAIR VALUE MEASUREMENTS (Tables)
6 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
Schedule of Fair Value Measurements
Cash, cash equivalents, and available-for-sale investments were as follows (in thousands):
As of September 30, 2023Amortized
Costs
Gross
Unrealized
Gain
Gross
Unrealized
Loss
Estimated
Fair Value
Cash and
Cash
Equivalents
Restricted Cash
(Current & Non-current)
Short-Term
Investments
Cash$70,729 $— $— $70,729 $70,729 $— $— 
Level 1:
Money market funds64,070 — — 64,070 63,087 983 — 
Treasury securities599 — — 599 — — 599 
Subtotal135,398 — — 135,398 133,816 983 599 
Level 2:
Term deposit
10,214 — — 10,214 10,214 — — 
Commercial paper4,146 — (1)4,145 — 4,145 
Subtotal14,360 — (1)14,359 10,214 — 4,145 
Total assets$149,758 $— $(1)$149,757 $144,030 $983 $4,744 
As of March 31, 2023Amortized
Costs
Gross
Unrealized
Gain
Gross
Unrealized
Loss
Estimated
Fair Value
Cash and
Cash
Equivalents
Restricted Cash
(Current & Non-current)
Short-Term
Investments
Cash$95,828 $— $— $95,828 $95,828 $— $— 
Level 1:
Money market funds8,935 — — 8,935 8,935 — — 
Treasury securities1,599 (1)1,602 — — 1,602 
Subtotal106,362 (1)106,365 104,763 — 1,602 
Level 2:
Certificate of deposit1,329 — — 1,329 — 1,329 — 
Commercial paper8,610 — (2)8,608 6,637 — 1,971 
Corporate debt22,625 55 (25)22,655 — — 22,655 
Subtotal32,564 55 (27)32,592 6,637 1,329 24,626 
Total assets$138,926 $59 $(28)$138,957 $111,400 $1,329 $26,228 
Summary of Assumptions Used in Determination of Fair Value
The following table presents additional information about valuation techniques and inputs used for the detachable warrants (see Note 6, Convertible Senior Notes and Term Loan) that are measured at fair value and categorized within Level 3 as of September 30, 2023 and March 31, 2023 (dollars in thousands):
September 30, 2023March 31, 2023
Estimated fair value of detachable warrants$2,966 $5,497 
Unobservable inputs:
Stock volatility80.0%67.2%
Risk-free rate4.7%3.6%
Expected term3.9 years4.4 years
v3.23.3
INTANGIBLE ASSETS AND GOODWILL (Tables)
6 Months Ended
Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Acquired Finite-Lived Intangible Assets by Major Class
The carrying value of intangible assets consisted of the following (in thousands):
 September 30, 2023March 31, 2023
Gross
Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Technology$46,448 $(32,582)$13,866 $46,461 $(28,361)$18,100 
Customer relationships105,824 (22,776)83,048 105,836 (16,824)89,012 
Trade names and domains582 (582)— 584 (584)— 
Total acquired identifiable intangible assets$152,854 $(55,940)$96,914 $152,881 $(45,769)$107,112 
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense
The annual amortization of the Company's intangible assets, based upon existing intangible assets and current useful lives, is estimated to be as follows (in thousands):
 Amount
Remainder of 2024$10,198 
202519,095 
202613,896 
202711,757 
202811,044 
Thereafter30,924 
Total$96,914 
Schedule of Goodwill
The following table provides a summary of the changes in the carrying amounts of goodwill (in thousands):
 Amount
Balance as of March 31, 2023$266,863 
Foreign currency translation(1,131)
Balance as of September 30, 2023$265,732 
v3.23.3
CONVERTIBLE SENIOR NOTES AND TERM LOAN (Tables)
6 Months Ended
Sep. 30, 2023
Debt Disclosure [Abstract]  
Schedule of Carrying Amount
The following table presents the net carrying amount and fair value of the liability component of the 2024 Notes (in thousands):
September 30, 2023March 31, 2023
Principal$63,295 $63,295 
Unamortized debt discount and issuance costs(142)(363)
Net carrying amount$63,153 $62,932 
The following table presents the net carrying amount of the Term Loan (in thousands):
September 30, 2023March 31, 2023
Principal$225,000 $250,000 
Unamortized debt discount and issuance costs(14,697)(18,007)
Net carrying amount$210,303 $231,993 
Schedule of Interest Expense
Interest expense recognized related to the 2024 Notes was as follows (in thousands):
Three Months Ended September 30,Six Months Ended September 30,
 2023202220232022
Contractual interest expense$80 $350 $159 $975 
Amortization of debt discount and issuance costs109 633 216 1,464 
Total interest expense$189 $983 $375 $2,439 
Interest expense recognized related to the Term Loans was as follows (in thousands):
Three Months Ended September 30,Six Months Ended September 30,
 2023202220232022
Contractual interest expense$6,592 $3,209 $13,471 $3,209 
Amortization of debt discount and issuance costs768 434 1,542 434 
Total interest expense$7,360 $3,643 $15,013 $3,643 
Interest expense recognized related to the 2028 Notes was as follows (in thousands):
Three Months Ended September 30,Six Months Ended September 30,
2023202220232022
Contractual interest expense$2,036 $1,106 $4,050 $1,106 
Amortization of debt discount and issuance costs255 102 482 102 
Total interest expense$2,291 $1,208 $4,532 $1,208 
Schedule of Convertible Debt
The following table presents the net carrying amount of the 2028 Notes (in thousands):
September 30, 2023March 31, 2023
Principal$201,914 $201,914 
Unamortized debt discount and issuance costs(4,611)(5,093)
Net carrying amount$197,303 $196,821 
v3.23.3
STOCK-BASED COMPENSATION AND STOCKHOLDERS' EQUITY (Tables)
6 Months Ended
Sep. 30, 2023
Equity [Abstract]  
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs
The following table presents stock-based compensation expense (in thousands):
 Three Months Ended September 30,Six Months Ended September 30,
 2023202220232022
Cost of service revenue$1,137 $2,436 $2,823 $5,100 
Cost of other revenue459 925 854 2,036 
Research and development5,415 7,711 13,048 15,755 
Sales and marketing3,917 6,809 8,566 14,917 
General and administrative3,592 6,740 7,426 14,627 
Total$14,520 $24,621 $32,717 $52,435 
Disclosure of Share-Based Compensation Arrangements By Share-Based Payment Award
The following table presents the RSU activity (shares in thousands):
Number of
Shares
Weighted
Average Grant
Date Fair Value
Weighted Average
Remaining Contractual
Term (in Years)
Balance as of March 31, 202312,993 $8.56 1.84
Granted6,497 3.95 
Vested and released(5,318)8.53 
Forfeited(1,204)7.30 
Balance as of September 30, 202312,968 $6.38 2.06
The following table presents the PSU activity (shares in thousands):
Number of
Shares
Weighted
Average Grant
Date Fair Value
Weighted Average
Remaining Contractual
Term (in Years)
Balance as of March 31, 2023624 $11.30 1.45
Granted2,023 1.23 
Forfeited(116)21.83 
Balance as of September 30, 20232,531 2.77 3.12
v3.23.3
NET LOSS PER SHARE (Tables)
6 Months Ended
Sep. 30, 2023
Earnings Per Share [Abstract]  
Schedule of Net Loss Per Share
The following is a reconciliation of the weighted average number of common shares outstanding used in calculating basic and diluted net loss per share (in thousands, except per share data):
 Three Months Ended September 30,Six Months Ended September 30,
 2023202220232022
Net loss$(7,452)$(11,639)$(22,779)$(37,682)
Weighted average common shares outstanding - basic and diluted120,757 116,013 118,778 117,857 
Net loss per share - basic and diluted$(0.06)$(0.10)$(0.19)$(0.32)
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share The following potentially weighted-average common shares were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive (shares in thousands):
 Three Months Ended September 30,Six Months Ended September 30,
 2023202220232022
Stock options601 811 625 787 
Restricted stock units and Performance stock units10,855 15,895 9,878 8,804 
Potential shares attributable to the ESPP1,129 751 626 512 
Total anti-dilutive shares12,585 17,457 11,129 10,103 
v3.23.3
GEOGRAPHICAL INFORMATION (Tables)
6 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
The following tables set forth the geographic information for each period (in thousands):
Three Months Ended September 30,Six Months Ended September 30,
 2023202220232022
United States$131,124 $136,532 $261,506 $272,652 
International53,875 50,857 106,780 102,357 
Total revenue$184,999 $187,389 $368,286 $375,009 
Schedule of Long-lived Assets by Geographic Area
 September 30, 2023March 31, 2023
United States$50,035 $54,191 
International3,473 3,680 
Total property and equipment, net$53,508 $57,871 
v3.23.3
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES (Details)
6 Months Ended
Sep. 30, 2023
segment
Accounting Policies [Abstract]  
Number of reportable segments 1
v3.23.3
REVENUE RECOGNITION - Contract Balances (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Mar. 31, 2023
Revenue from Contract with Customer [Abstract]    
Accounts receivable, net $ 61,063 $ 62,307
Contract assets, current (component of Other current assets) 11,317 11,581
Contract assets, non-current (component of Other assets) 9,639 11,141
Deferred revenue, current 33,223 34,909
Deferred revenue, non-current $ 10,231 $ 10,615
v3.23.3
REVENUE RECOGNITION - Narrative (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]        
Contract with customer, liability, revenue recognized     $ 28.6  
Revenue, remaining performance obligation, amount $ 780.0   780.0  
Capitalized contract cost, amortization 10.1 $ 9.6 20.1 $ 18.8
Capitalized contract cost, impairment loss $ 0.0 $ 0.0 $ 0.0 $ 0.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01        
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]        
Revenue, remaining performance obligation, percentage 86.00%   86.00%  
Revenue, remaining performance obligation, expected timing of satisfaction, period 24 months   24 months  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-10-01        
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]        
Revenue, remaining performance obligation, percentage 14.00%   14.00%  
Revenue, remaining performance obligation, expected timing of satisfaction, period 36 months   36 months  
Minimum        
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]        
Subscription term     1 year  
Maximum        
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]        
Subscription term     5 years  
v3.23.3
FAIR VALUE MEASUREMENTS - Cash, Cash Equivalents and Investments with Hierarchy (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Mar. 31, 2023
Sep. 30, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and cash equivalents $ 144,030 $ 111,400 $ 100,512
Accumulated gross unrealized gain, before tax 0 59  
Accumulated gross unrealized loss, before tax (1) (28)  
Cash, cash equivalents and debt securities available-for-sale, amortized cost 149,758 138,926  
Cash, cash equivalents and debt securities available-for-sale 149,757 138,957  
Level 1      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Accumulated gross unrealized gain, before tax 0 4  
Accumulated gross unrealized loss, before tax 0 (1)  
Cash, cash equivalents and debt securities available-for-sale, amortized cost 135,398 106,362  
Cash, cash equivalents and debt securities available-for-sale 135,398 106,365  
Level 2      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Amortized Costs 14,360 32,564  
Accumulated gross unrealized gain, before tax 0 55  
Accumulated gross unrealized loss, before tax (1) (27)  
Debt securities, available-for-sale 14,359 32,592  
Cash and Cash Equivalents      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash, cash equivalents and debt securities available-for-sale 144,030 111,400  
Cash and Cash Equivalents | Level 1      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash, cash equivalents and debt securities available-for-sale 133,816 104,763  
Cash and Cash Equivalents | Level 2      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale 10,214 6,637  
Restricted Cash (Current & Non-current)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash, cash equivalents and debt securities available-for-sale 983 1,329  
Restricted Cash (Current & Non-current) | Level 1      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash, cash equivalents and debt securities available-for-sale 983 0  
Restricted Cash (Current & Non-current) | Level 2      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale 0 1,329  
Short-Term Investments      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale 4,744 26,228  
Short-Term Investments | Level 1      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale 599 1,602  
Short-Term Investments | Level 2      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale 4,145 24,626  
Cash      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and cash equivalents 70,729 95,828  
Cash and cash equivalents, fair value disclosure 70,729 95,828  
Cash | Cash and Cash Equivalents      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and cash equivalents 70,729 95,828  
Cash | Restricted Cash (Current & Non-current)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and cash equivalents 0 0  
Money market funds | Level 1      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and cash equivalents 64,070 8,935  
Cash and cash equivalents, fair value disclosure 64,070 8,935  
Accumulated gross unrealized gain, before tax 0 0  
Accumulated gross unrealized loss, before tax 0 0  
Money market funds | Cash and Cash Equivalents | Level 1      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and cash equivalents 63,087 8,935  
Money market funds | Restricted Cash (Current & Non-current) | Level 1      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and cash equivalents 983 0  
Money market funds | Short-Term Investments | Level 1      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale 0 0  
Treasury securities | Level 1      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Amortized Costs 599 1,599  
Accumulated gross unrealized gain, before tax 0 4  
Accumulated gross unrealized loss, before tax 0 (1)  
Debt securities, available-for-sale 599 1,602  
Treasury securities | Cash and Cash Equivalents | Level 1      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale 0 0  
Treasury securities | Restricted Cash (Current & Non-current) | Level 1      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale 0 0  
Treasury securities | Short-Term Investments | Level 1      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale 599 1,602  
Term deposit | Level 2      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and cash equivalents 10,214    
Cash and cash equivalents, fair value disclosure 10,214    
Accumulated gross unrealized gain, before tax 0    
Accumulated gross unrealized loss, before tax 0    
Term deposit | Cash and Cash Equivalents | Level 2      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and cash equivalents 10,214    
Term deposit | Restricted Cash (Current & Non-current) | Level 2      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and cash equivalents 0    
Term deposit | Short-Term Investments | Level 2      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale 0    
Certificate of deposit | Level 2      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and cash equivalents   1,329  
Cash and cash equivalents, fair value disclosure   1,329  
Accumulated gross unrealized gain, before tax   0  
Accumulated gross unrealized loss, before tax   0  
Certificate of deposit | Cash and Cash Equivalents | Level 2      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and cash equivalents   0  
Certificate of deposit | Restricted Cash (Current & Non-current) | Level 2      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and cash equivalents   1,329  
Certificate of deposit | Short-Term Investments | Level 2      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale   0  
Commercial paper | Level 2      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Amortized Costs 4,146 8,610  
Accumulated gross unrealized gain, before tax 0 0  
Accumulated gross unrealized loss, before tax (1) (2)  
Debt securities, available-for-sale 4,145 8,608  
Commercial paper | Cash and Cash Equivalents | Level 2      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale 0 6,637  
Commercial paper | Restricted Cash (Current & Non-current) | Level 2      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale 0  
Commercial paper | Short-Term Investments | Level 2      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale $ 4,145 1,971  
Corporate debt | Level 2      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Amortized Costs   22,625  
Accumulated gross unrealized gain, before tax   55  
Accumulated gross unrealized loss, before tax   (25)  
Debt securities, available-for-sale   22,655  
Corporate debt | Cash and Cash Equivalents | Level 2      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale   0  
Corporate debt | Restricted Cash (Current & Non-current) | Level 2      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale   0  
Corporate debt | Short-Term Investments | Level 2      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale   $ 22,655  
v3.23.3
FAIR VALUE MEASUREMENTS - Summary of Assumptions Used in Determination of Fair Value (Details)
$ in Thousands
Sep. 30, 2023
USD ($)
Mar. 31, 2023
USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Fair value of the warrants $ 2,966 $ 5,497
Stock volatility    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Warrant, measurement input 0.800 0.672
Risk-free rate    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Warrant, measurement input 0.047 0.036
Expected term    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Warrants and rights outstanding, term 3 years 10 months 24 days 4 years 4 months 24 days
v3.23.3
FAIR VALUE MEASUREMENTS - Narrative (Details) - Level 2 - Convertible debt - USD ($)
$ in Millions
Sep. 30, 2023
Mar. 31, 2023
Convertible Senior Notes 2024    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value $ 60.2  
Initial Notes    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value   $ 57.3
2028 Notes    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value $ 192.0 $ 183.0
v3.23.3
INTANGIBLE ASSETS AND GOODWILL- Schedule Of Intangibles (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Mar. 31, 2023
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 152,854 $ 152,881
Accumulated Amortization (55,940) (45,769)
Net Carrying Amount 96,914 107,112
Technology    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 46,448 46,461
Accumulated Amortization (32,582) (28,361)
Net Carrying Amount 13,866 18,100
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 105,824 105,836
Accumulated Amortization (22,776) (16,824)
Net Carrying Amount 83,048 89,012
Trade names and domains    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 582 584
Accumulated Amortization (582) (584)
Net Carrying Amount $ 0 $ 0
v3.23.3
INTANGIBLE ASSETS AND GOODWILL - Narrative (Details)
Sep. 30, 2023
Technology  
Finite-Lived Intangible Assets [Line Items]  
Finite-lived intangible assets, remaining amortization period 1 year 10 months 24 days
Customer relationships  
Finite-Lived Intangible Assets [Line Items]  
Finite-lived intangible assets, remaining amortization period 7 years 2 months 12 days
v3.23.3
INTANGIBLE ASSETS AND GOODWILL - Schedule of Future Amortization of Intangibles (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]    
Remainder of 2024 $ 10,198  
2025 19,095  
2026 13,896  
2027 11,757  
2028 11,044  
Thereafter 30,924  
Net Carrying Amount $ 96,914 $ 107,112
v3.23.3
INTANGIBLE ASSETS AND GOODWILL - Changes in Carrying Amount of Goodwill by Location (Details)
$ in Thousands
6 Months Ended
Sep. 30, 2023
USD ($)
Goodwill [Roll Forward]  
Goodwill, beginning balance $ 266,863
Foreign currency translation (1,131)
Goodwill, ending balance $ 265,732
v3.23.3
COMMITMENTS AND CONTINGENCIES (Details) - USD ($)
$ in Millions
6 Months Ended
Sep. 30, 2023
Mar. 31, 2023
Lessee, Lease, Description [Line Items]    
Purchase obligation $ 28.1  
Service contract period 3 years  
Purchase obligation due on 2024 $ 3.8  
Purchase obligation due on 2025 10.0  
Purchase obligation due on 2026 10.5  
State and local taxes and surcharges    
Lessee, Lease, Description [Line Items]    
Accrued contingent indirect tax liabilities $ 15.1 $ 13.5
v3.23.3
CONVERTIBLE SENIOR NOTES AND TERM LOAN - 2024 Notes (Details) - USD ($)
$ in Thousands
1 Months Ended 3 Months Ended
Aug. 31, 2022
Sep. 30, 2022
Sep. 30, 2023
Mar. 31, 2023
Debt Instrument [Line Items]        
Shares repurchase   $ 60,214    
Common Stock        
Debt Instrument [Line Items]        
Shares repurchase   $ 11    
Convertible Senior Notes 2024 | Convertible debt        
Debt Instrument [Line Items]        
Debt instrument, face value $ 403,800   $ 63,295 $ 63,295
Debt instrument, interest rate     0.50% 0.50%
Debt instrument, effective interest rate 1.20%      
2028 Notes        
Debt Instrument [Line Items]        
Debt instrument, effective interest rate 4.70%      
2028 Notes | Convertible debt        
Debt Instrument [Line Items]        
Debt instrument, face value $ 201,900   $ 201,914 $ 201,914
Debt instrument, interest rate     4.00%  
Term Loan | Loans payable        
Debt Instrument [Line Items]        
Debt instrument, face value     $ 225,000 $ 250,000
Debt instrument, effective interest rate     11.90%  
Term Loan | Loans payable | Common Stock        
Debt Instrument [Line Items]        
Shares repurchase $ 60,000      
v3.23.3
CONVERTIBLE SENIOR NOTES AND TERM LOAN - Carrying Amount (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Mar. 31, 2023
Aug. 31, 2022
Convertible debt | Convertible Senior Notes 2024      
Debt Instrument [Line Items]      
Principal $ 63,295 $ 63,295 $ 403,800
Unamortized debt discount and issuance costs (142) (363)  
Net carrying amount 63,153 62,932  
Convertible debt | 2028 Notes      
Debt Instrument [Line Items]      
Principal 201,914 201,914 $ 201,900
Unamortized debt discount and issuance costs (4,611) (5,093)  
Net carrying amount 197,303 196,821  
Loans payable | Term Loan      
Debt Instrument [Line Items]      
Principal 225,000 250,000  
Unamortized debt discount and issuance costs (14,697) (18,007)  
Net carrying amount $ 210,303 $ 231,993  
v3.23.3
CONVERTIBLE SENIOR NOTES AND TERM LOAN - Interest Expense (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Debt Instrument [Line Items]        
Amortization of debt discount and issuance costs     $ 2,240 $ 2,000
Convertible Senior Notes 2024 | Convertible debt        
Debt Instrument [Line Items]        
Contractual interest expense $ 80 $ 350 159 975
Amortization of debt discount and issuance costs 109 633 216 1,464
Total interest expense 189 983 375 2,439
Term Loan | Loans payable        
Debt Instrument [Line Items]        
Contractual interest expense 6,592 3,209 13,471 3,209
Amortization of debt discount and issuance costs 768 434 1,542 434
Total interest expense 7,360 3,643 15,013 3,643
2028 Notes | Convertible debt        
Debt Instrument [Line Items]        
Contractual interest expense 2,036 1,106 4,050 1,106
Amortization of debt discount and issuance costs 255 102 482 102
Total interest expense $ 2,291 $ 1,208 $ 4,532 $ 1,208
v3.23.3
CONVERTIBLE SENIOR NOTES AND TERM LOAN - Term Loan and Warrants (Details) - USD ($)
$ / shares in Units, $ in Thousands, shares in Millions
May 09, 2023
Aug. 10, 2022
Aug. 03, 2022
Sep. 30, 2023
Mar. 31, 2023
Debt Instrument [Line Items]          
Fair value of the warrants at issuance       $ 2,966 $ 5,497
Term Loan | Loans payable          
Debt Instrument [Line Items]          
Debt instrument, face value       $ 225,000 $ 250,000
Debt instrument, effective interest rate       11.90%  
Repayments of debt $ 25,000        
Interest paid $ 200        
Term Loan | Loans payable | SOFR          
Debt Instrument [Line Items]          
Debt instrument, basis spread on variable floor rate     1.00%    
Debt instrument, credit spread adjustment     0.10%    
Debt instrument, basis spread on variable rate     6.50%    
Credit Agreement | Loans payable          
Debt Instrument [Line Items]          
Warrant of shares (in shares)   3.1      
Warrants and rights outstanding, term   5 years      
Exercise price of warrants (in dollars per share)   $ 7.15      
Credit Agreement | Loans payable | Common Stock          
Debt Instrument [Line Items]          
Percentage of premium over closing price   27.50%      
v3.23.3
CONVERTIBLE SENIOR NOTES AND TERM LOAN - 2028 Notes (Details) - 2028 Notes - USD ($)
$ in Thousands
Sep. 30, 2023
Mar. 31, 2023
Aug. 31, 2022
Aug. 11, 2022
Debt Instrument [Line Items]        
Debt instrument, effective interest rate     4.70%  
Convertible debt        
Debt Instrument [Line Items]        
Debt instrument, face value $ 201,914 $ 201,914 $ 201,900  
Debt instrument, interest rate 4.00%      
Debt issuance costs, net       $ 5,600
Debt issuance costs, percentage paid in common stock       50.00%
v3.23.3
STOCK-BASED COMPENSATION AND STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($)
$ in Millions
1 Months Ended 6 Months Ended
May 26, 2022
Jul. 31, 2022
Sep. 30, 2023
Restricted stock units and Performance stock units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Unamortized stock-based compensation expense     $ 56.1
Weighted average period of recognition for unrecognized compensation expense     2 years 21 days
Performance stock units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Unamortized stock-based compensation expense     $ 11.5
Weighted average period of recognition for unrecognized compensation expense     3 years 1 month 13 days
Minimum | Performance stock units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period     1 year
Maximum | Performance stock units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period     3 years
2022 Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares reserved for future issuance (in shares) 8,000,000    
Expiration period 10 years    
Number of shares available for future grant (in shares)     1,952,177
2022 Plan | Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period 3 years    
2022 Plan | Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period 4 years    
Employee Stock Purchase Plan | Employee stock      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Unamortized stock-based compensation expense     $ 2.5
Weighted average period of recognition for unrecognized compensation expense     7 months 6 days
Employee Stock Purchase Plan | Employee stock option      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares reserved for future issuance (in shares)     2,400,000
Number of additional shares reserved for issuance (in shares)   3,600,000  
v3.23.3
STOCK-BASED COMPENSATION AND STOCKHOLDERS' EQUITY - Stock-Based Compensation Expense By Statement Of Operations (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Stock-based employee compensation expense $ 14,520 $ 24,621 $ 32,717 $ 52,435
Research and development        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Stock-based employee compensation expense 5,415 7,711 13,048 15,755
Sales and marketing        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Stock-based employee compensation expense 3,917 6,809 8,566 14,917
General and administrative        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Stock-based employee compensation expense 3,592 6,740 7,426 14,627
Service | Cost of Sales        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Stock-based employee compensation expense 1,137 2,436 2,823 5,100
Other revenue | Cost of Sales        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Stock-based employee compensation expense $ 459 $ 925 $ 854 $ 2,036
v3.23.3
STOCK-BASED COMPENSATION AND STOCKHOLDERS' EQUITY - Restricted Stock Unit and Performance Stock Unit Activity (Details) - $ / shares
shares in Thousands
6 Months Ended 12 Months Ended
Sep. 30, 2023
Mar. 31, 2023
Restricted stock units and Performance stock units    
Number of Shares    
Beginning balance (in shares) 12,993  
Granted (in shares) 6,497  
Vested and released (in shares) (5,318)  
Forfeited (in shares) (1,204)  
Ending balance (in shares) 12,968 12,993
Weighted Average Grant Date Fair Value    
Beginning balance (in dollars per share) $ 8.56  
Granted (in dollars per share) 3.95  
Vested and released (in dollars per share) 8.53  
Forfeited (in dollars per share) 7.30  
Ending balance (in dollars per share) $ 6.38 $ 8.56
Weighted Average Remaining Contractual Term (in Years) 2 years 21 days 1 year 10 months 2 days
Performance stock units    
Number of Shares    
Beginning balance (in shares) 624  
Granted (in shares) 2,023  
Forfeited (in shares) (116)  
Ending balance (in shares) 2,531 624
Weighted Average Grant Date Fair Value    
Beginning balance (in dollars per share) $ 11.30  
Granted (in dollars per share) 1.23  
Forfeited (in dollars per share) 21.83  
Ending balance (in dollars per share) $ 2.77 $ 11.30
Weighted Average Remaining Contractual Term (in Years) 3 years 1 month 13 days 1 year 5 months 12 days
v3.23.3
INCOME TAXES (Details)
3 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Income Tax Disclosure [Abstract]    
Effective income tax rate 5.00% (5.40%)
v3.23.3
NET LOSS PER SHARE - Basic and Diluted Net Loss Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended 6 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Earnings Per Share [Abstract]        
Net loss, basic $ (7,452) $ (11,639) $ (22,779) $ (37,682)
Net loss, diluted $ (7,452) $ (11,639) $ (22,779) $ (37,682)
Weighted average common shares outstanding - basic (in shares) 120,757 116,013 118,778 117,857
Weighted average common shares outstanding - diluted (in shares) 120,757 116,013 118,778 117,857
Net loss per share:        
Basic (in dollars per share) $ (0.06) $ (0.10) $ (0.19) $ (0.32)
Diluted (in dollars per share) $ (0.06) $ (0.10) $ (0.19) $ (0.32)
v3.23.3
NET LOSS PER SHARE - Schedule of Antidilutive Awards (Details) - shares
shares in Thousands
3 Months Ended 6 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Anti-dilutive shares (in shares) 12,585 17,457 11,129 10,103
Stock options        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Anti-dilutive shares (in shares) 601 811 625 787
Restricted stock units and Performance stock units        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Anti-dilutive shares (in shares) 10,855 15,895 9,878 8,804
Potential shares attributable to the ESPP        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Anti-dilutive shares (in shares) 1,129 751 626 512
v3.23.3
GEOGRAPHICAL INFORMATION (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Mar. 31, 2023
Segment Reporting Information [Line Items]          
Revenue $ 184,999 $ 187,389 $ 368,286 $ 375,009  
Property and equipment, net 53,508   53,508   $ 57,871
United States          
Segment Reporting Information [Line Items]          
Revenue 131,124 136,532 261,506 272,652  
Property and equipment, net 50,035   50,035   54,191
International          
Segment Reporting Information [Line Items]          
Revenue 53,875 $ 50,857 106,780 $ 102,357  
Property and equipment, net $ 3,473   $ 3,473   $ 3,680
v3.23.3
RELATED PARTY TRANSACTIONS (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Related Party Transaction [Line Items]        
Related party contract, term     2 years  
Related party transaction, amounts of transaction     $ 1,400  
Sales and marketing $ 68,687 $ 80,487 137,191 $ 164,014
Related Party        
Related Party Transaction [Line Items]        
Sales and marketing     $ 700  
v3.23.3
SUBSEQUENT EVENT (Details) - Subsequent event - USD ($)
$ in Millions
Nov. 01, 2023
Oct. 30, 2023
Subsequent Event [Line Items]    
Percentage of office space ceased   42.00%
Minimum    
Subsequent Event [Line Items]    
Estimated non-cash lease impairment charges $ 9.0  
Maximum    
Subsequent Event [Line Items]    
Estimated non-cash lease impairment charges $ 10.0  
v3.23.3
Label Element Value
Accounting Standards Update [Extensible Enumeration] us-gaap_AccountingStandardsUpdateExtensibleList Accounting Standards Update 2020-06 [Member]

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