| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
☒ | Accelerated filer | ☐ | ||||||||||||||||||
| Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
| Emerging growth company | ||||||||||||||||||||
| Page | ||||||||
| Item 1. | ||||||||
| Item 2. | ||||||||
| Item 3. | ||||||||
| Item 4. | ||||||||
| Item 1. | ||||||||
| Item 1A. | ||||||||
| Item 2. | ||||||||
| Item 3. | ||||||||
| Item 4. | ||||||||
| Item 5. | ||||||||
| Item 6. | ||||||||
| September 30, 2022 | March 31, 2022 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
| Short-term investments | |||||||||||
Accounts receivable, net of allowances of $ | |||||||||||
| Prepaid expenses and other current assets | |||||||||||
| Deferred contract acquisition costs | |||||||||||
| Total current assets | |||||||||||
| Property and equipment, net | |||||||||||
| Restricted cash | |||||||||||
| Goodwill | |||||||||||
| Intangible assets, net | |||||||||||
| Deferred contract acquisition costs, non-current | |||||||||||
| Lease right-of-use assets | |||||||||||
| Other assets, non-current | |||||||||||
| Total assets | $ | $ | |||||||||
| Liabilities, redeemable non-controlling interest and stockholders’ equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | $ | |||||||||
| Accrued compensation and benefits | |||||||||||
| Other current liabilities | |||||||||||
| Convertible senior notes, current | |||||||||||
| Deferred revenue | |||||||||||
| Lease liabilities | |||||||||||
| Total current liabilities | |||||||||||
| Convertible senior notes, net | |||||||||||
| Lease liabilities, non-current | |||||||||||
| Deferred revenue, non-current | |||||||||||
| Other liabilities, non-current | |||||||||||
| Total liabilities | |||||||||||
| Commitments and contingencies (Note 10) | |||||||||||
| Redeemable non-controlling interest | |||||||||||
| Stockholders’ equity: | |||||||||||
Common stock, $ | |||||||||||
Treasury stock - at cost ( | ( | ( | |||||||||
| Additional paid-in capital | |||||||||||
| Accumulated other comprehensive loss | ( | ( | |||||||||
| Accumulated deficit | ( | ( | |||||||||
| Total stockholders’ equity | |||||||||||
| Total liabilities, redeemable non-controlling interest and stockholders’ equity | $ | $ | |||||||||
| Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Revenue | $ | $ | $ | $ | |||||||||||||||||||
| Cost of revenue | |||||||||||||||||||||||
| Gross profit | |||||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Research and development | |||||||||||||||||||||||
| Sales and marketing | |||||||||||||||||||||||
| General and administrative | |||||||||||||||||||||||
| Total operating expenses | |||||||||||||||||||||||
| Loss from operations | ( | ( | ( | ( | |||||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||
| Interest income | |||||||||||||||||||||||
| Interest expense | ( | ( | ( | ( | |||||||||||||||||||
| Other income (expense) | ( | ( | ( | ||||||||||||||||||||
| Loss before income taxes | ( | ( | ( | ( | |||||||||||||||||||
| Income tax provision (benefit) | ( | ( | |||||||||||||||||||||
| Net loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
| Net loss and adjustment attributable to redeemable non-controlling interest | ( | ( | ( | ||||||||||||||||||||
| Net loss attributable to New Relic | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
| Net loss attributable to New Relic per share, basic and diluted | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
| Weighted-average shares used to compute net loss per share, basic and diluted | |||||||||||||||||||||||
| Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Net loss attributable to New Relic | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
| Other comprehensive loss: | |||||||||||||||||||||||
| Unrealized loss on available-for-sale securities | ( | ( | ( | ( | |||||||||||||||||||
| Comprehensive loss attributable to New Relic | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
| Three Months Ended September 30, 2022 | Three Months Ended September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Stockholders’ Equity | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock upon exercise of stock options | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock for vested restricted stock units | ( | — | — | — | — | — | ( | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock related to employee stock purchase plan | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock related to acquisition of business | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss, net | — | — | — | — | — | ( | — | ( | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net loss attributable to New Relic | — | — | — | — | — | — | ( | ( | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at end of period | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended September 30, 2022 | Six Months Ended September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Stockholders’ Equity | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| — | — | — | — | — | — | — | — | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock upon exercise of stock options | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock for vested restricted stock units | ( | — | — | — | — | ( | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock related to employee stock purchase plan | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock related to acquisition of business | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss, net | — | — | — | — | — | ( | — | ( | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net loss attributable to New Relic | — | — | — | — | — | — | ( | ( | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at end of period | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended September 30, | |||||||||||
| 2022 | 2021 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net loss attributable to New Relic | $ | ( | $ | ( | |||||||
| Net loss and adjustment attributable to redeemable non-controlling interest (Note 3) | ( | ||||||||||
| Net loss: | $ | ( | $ | ( | |||||||
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | |||||||||||
| Stock-based compensation expense | |||||||||||
| Amortization of debt discount and issuance costs | |||||||||||
| Loss on facilities exit | |||||||||||
| Other | ( | ( | |||||||||
| Changes in operating assets and liabilities, net of acquisition of business: | |||||||||||
| Accounts receivable, net | |||||||||||
| Prepaid expenses and other assets | ( | ||||||||||
| Deferred contract acquisition costs | ( | ( | |||||||||
| Lease right-of-use assets | |||||||||||
| Accounts payable | |||||||||||
| Accrued compensation and benefits and other liabilities | ( | ( | |||||||||
| Lease liabilities | ( | ( | |||||||||
| Deferred revenue | ( | ( | |||||||||
| Net cash provided by (used in) operating activities | ( | ||||||||||
| Cash flows from investing activities: | |||||||||||
| Purchases of property and equipment | ( | ( | |||||||||
| Proceeds from sale of property and equipment | |||||||||||
| Cash paid for acquisition, net of cash acquired | ( | ( | |||||||||
| Purchases of short-term investments | ( | ( | |||||||||
| Proceeds from sale and maturity of short-term investments | |||||||||||
| Capitalized software development costs | ( | ( | |||||||||
| Net cash provided by investing activities | |||||||||||
| Cash flows from financing activities: | |||||||||||
| Proceeds from employee stock purchase plan | |||||||||||
| Proceeds from exercise of employee stock options | |||||||||||
| Net cash provided by financing activities | |||||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | ( | ||||||||||
| Cash, cash equivalents and restricted cash at beginning of period | |||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | $ | |||||||||
| Reconciliation of cash, cash equivalents and restricted cash to condensed consolidated balance sheets: | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
| Restricted cash | |||||||||||
| Total cash, cash equivalents and restricted cash | $ | $ | |||||||||
| Supplemental disclosure of cash flow information: | |||||||||||
| Cash paid for interest and income taxes | $ | $ | |||||||||
| Noncash investing and financing activities: | |||||||||||
| Property and equipment purchased but not yet paid | $ | $ | |||||||||
| Issuance of common stock for the acquisition of business | $ | $ | |||||||||
| Acquisition holdback | $ | $ | |||||||||
| Cash consideration | $ | ||||
| Fair value of common shares | $ | ||||
| Total consideration | $ | ||||
| Post-business combination compensation expense | $ | ( | |||
| Total purchase price | $ | ||||
| Net assets assumed | $ | ( | |||
| Developed technology acquired | $ | ( | |||
| Goodwill | $ | ||||
| Six Months Ended September 30, | |||||||||||
| 2022 | 2021 | ||||||||||
| Balance, beginning of period | $ | $ | |||||||||
| Net loss attributable to redeemable non-controlling interest | ( | ( | |||||||||
| Adjustment to redeemable non-controlling interest | ( | ||||||||||
| Balance, end of period | $ | $ | |||||||||
| Fair Value Measurements as of September 30, 2022 | |||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| Cash and cash equivalents: | |||||||||||||||||||||||
| Money market funds | $ | $ | $ | $ | |||||||||||||||||||
| Short-term investments: | |||||||||||||||||||||||
| Certificates of deposit | |||||||||||||||||||||||
| Commercial paper | |||||||||||||||||||||||
| Corporate notes and bonds | |||||||||||||||||||||||
| U.S. treasury securities | |||||||||||||||||||||||
| Restricted cash: | |||||||||||||||||||||||
| Money market funds | |||||||||||||||||||||||
| Total | $ | $ | $ | $ | |||||||||||||||||||
| Included in cash and cash equivalents | $ | ||||||||||||||||||||||
| Included in short-term investments | $ | ||||||||||||||||||||||
| Included in restricted cash | $ | ||||||||||||||||||||||
| Fair Value Measurements as of March 31, 2022 | |||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| Cash and cash equivalents: | |||||||||||||||||||||||
| Money market funds | $ | $ | $ | $ | |||||||||||||||||||
| Short-term investments: | |||||||||||||||||||||||
| Certificates of deposit | |||||||||||||||||||||||
| Commercial paper | |||||||||||||||||||||||
| Corporate notes and bonds | |||||||||||||||||||||||
| U.S. treasury securities | |||||||||||||||||||||||
| Restricted cash: | |||||||||||||||||||||||
| Money market funds | |||||||||||||||||||||||
| Total | $ | $ | $ | $ | |||||||||||||||||||
| Included in cash and cash equivalents | $ | ||||||||||||||||||||||
| Included in short-term investments | $ | ||||||||||||||||||||||
| Included in restricted cash | $ | ||||||||||||||||||||||
| Available-for-sale Investments as of September 30, 2022 | |||||||||||||||||||||||
| Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||||||||
| Short-term investments: | |||||||||||||||||||||||
| Certificates of deposit | $ | $ | $ | ( | $ | ||||||||||||||||||
| Commercial paper | ( | ||||||||||||||||||||||
| Corporate notes and bonds | ( | ||||||||||||||||||||||
| U.S. treasury securities | ( | ||||||||||||||||||||||
| Total available-for-sale investments | $ | $ | $ | ( | $ | ||||||||||||||||||
| Available-for-sale Investments as of March 31, 2022 | |||||||||||||||||||||||
| Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||||||||
| Short-term investments: | |||||||||||||||||||||||
| Certificates of deposit | $ | $ | $ | ( | $ | ||||||||||||||||||
| Commercial paper | ( | ||||||||||||||||||||||
| Corporate notes and bonds | ( | ||||||||||||||||||||||
| U.S. treasury securities | ( | ||||||||||||||||||||||
| Total available-for-sale investments | $ | $ | $ | ( | $ | ||||||||||||||||||
| September 30, 2022 | March 31, 2022 | ||||||||||
| Due within one year | $ | $ | |||||||||
| Due after one year and within three years | |||||||||||
| Total | $ | $ | |||||||||
| September 30, 2022 | March 31, 2022 | ||||||||||
| Computers, software, and equipment | $ | $ | |||||||||
| Site operation equipment | |||||||||||
| Furniture and fixtures | |||||||||||
| Leasehold improvements | |||||||||||
| Capitalized software development costs | |||||||||||
| Total property and equipment | |||||||||||
| Less: accumulated depreciation and amortization | ( | ( | |||||||||
| Total property and equipment, net | $ | $ | |||||||||
| September 30, 2022 | March 31, 2022 | ||||||||||
| Principal | $ | $ | |||||||||
| Unamortized issuance costs | ( | ( | |||||||||
| Net carrying amount | $ | $ | |||||||||
| Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Amortization of issuance costs | $ | $ | |||||||||||||||||||||
| Contractual interest expense | |||||||||||||||||||||||
| Total interest expense | $ | $ | $ | $ | |||||||||||||||||||
| Goodwill as of March 31, 2022 | $ | ||||
| Goodwill acquired | |||||
Goodwill as of September 30, 2022 | $ | ||||
| Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||
| Developed technology | $ | $ | ( | $ | |||||||||||||
| Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||
| Developed technology | $ | $ | ( | $ | |||||||||||||
| Fiscal Years Ending March 31, | Estimated Future Amortization Expense | ||||
| 2023 (remaining six months) | $ | ||||
| 2024 | |||||
| 2025 | |||||
| Thereafter | |||||
| $ | |||||
| September 30, 2022 | March 31, 2022 | ||||||||||
| Assets | |||||||||||
| Lease right-of-use-assets | $ | $ | |||||||||
| Liabilities | |||||||||||
| Lease liabilities | $ | $ | |||||||||
| Lease liabilities, non-current | |||||||||||
| Total operating lease liabilities | $ | $ | |||||||||
| Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Operating lease expense | $ | $ | $ | $ | |||||||||||||||||||
| Short-term lease expense | |||||||||||||||||||||||
| Variable lease expense | |||||||||||||||||||||||
| Six Months Ended September 30, | |||||||||||
| 2022 | 2021 | ||||||||||
| Cash paid for amounts included in the measurement of lease liabilities | $ | $ | |||||||||
| Operating lease assets obtained in exchange for new lease liabilities (1) | |||||||||||
| Fiscal Years Ending March 31, | Operating Leases | ||||
| 2023 (remaining six months) | $ | ||||
| 2024 | |||||
| 2025 | |||||
| 2026 | |||||
| 2027 | |||||
| 2028 | |||||
| Thereafter | |||||
| Total operating lease payments | $ | ||||
| Less imputed interest | ( | ||||
| Total operating lease liabilities | $ | ||||
| Options Outstanding | RSUs Outstanding | PSUs Outstanding | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Number of Shares | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value | Number of Shares | Weighted- Average Grant Date Fair Value | Weighted- Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value | Number of Shares | Weighted- Average Grant Date Fair Value | Weighted- Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Outstanding - April 1, 2022 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Granted | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Exercised/vested | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Canceled/forfeited | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Outstanding - September 30, 2022 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Cost of revenue | $ | $ | $ | $ | |||||||||||||||||||
| Research and development | |||||||||||||||||||||||
| Sales and marketing | |||||||||||||||||||||||
General and administrative (1) | |||||||||||||||||||||||
Total stock-based compensation expense (2) | $ | $ | $ | $ | |||||||||||||||||||
| Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Deferred revenue, beginning of period | $ | $ | $ | $ | |||||||||||||||||||
| Contributions from contract asset | |||||||||||||||||||||||
| Billings | |||||||||||||||||||||||
| Revenue recognized | ( | ( | ( | ( | |||||||||||||||||||
| Deferred revenue, end of period | $ | $ | $ | $ | |||||||||||||||||||
| Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Numerator: | |||||||||||||||||||||||
| Net loss attributable to New Relic | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
| Denominator: | |||||||||||||||||||||||
| Weighted average shares used to compute net loss per share, basic and diluted | |||||||||||||||||||||||
| Net loss attributable to New Relic per share—basic and diluted | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
| As of September 30, | |||||||||||
| 2022 | 2021 | ||||||||||
| Options to purchase common stock | |||||||||||
| RSUs | |||||||||||
| PSUs | |||||||||||
| ESPP shares | |||||||||||
| Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| United States | $ | $ | $ | $ | |||||||||||||||||||
| EMEA | |||||||||||||||||||||||
| APAC | |||||||||||||||||||||||
| Other | |||||||||||||||||||||||
| Total revenue | $ | $ | $ | $ | |||||||||||||||||||
| Six Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||
| Severance and other employee costs | Asset impairment | Total | Severance and other employee costs | Stock-based compensation | Asset impairment | Total | |||||||||||||||||||||||||||||||||||
| Cost of Revenue | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
| Research and Development | |||||||||||||||||||||||||||||||||||||||||
| Sales and Marketing | |||||||||||||||||||||||||||||||||||||||||
| General and administrative | |||||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| (in thousands, except per share amounts) | |||||||||||||||||||||||
| Revenue | $ | 226,912 | $ | 195,694 | $ | 443,371 | $ | 376,178 | |||||||||||||||
| Cost of revenue (1) | 64,783 | 64,262 | 128,676 | 123,526 | |||||||||||||||||||
| Gross profit | 162,129 | 131,432 | 314,695 | 252,652 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Research and development (1) | 68,730 | 51,368 | 133,499 | 100,098 | |||||||||||||||||||
| Sales and marketing (1) | 96,203 | 93,067 | 200,623 | 195,880 | |||||||||||||||||||
| General and administrative (1) | 42,483 | 34,014 | 81,513 | 77,579 | |||||||||||||||||||
| Total operating expenses | 207,416 | 178,449 | 415,635 | 373,557 | |||||||||||||||||||
| Loss from operations | (45,287) | (47,017) | (100,940) | (120,905) | |||||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||
| Interest income | 2,425 | 724 | 3,535 | 1,662 | |||||||||||||||||||
| Interest expense | (1,233) | (1,228) | (2,465) | (2,454) | |||||||||||||||||||
| Other income (expense) | 207 | (43) | (2) | (379) | |||||||||||||||||||
| Loss before income taxes | (43,888) | (47,564) | (99,872) | (122,076) | |||||||||||||||||||
| Income tax provision (benefit) | (381) | 506 | (114) | 53 | |||||||||||||||||||
| Net loss | $ | (43,507) | $ | (48,070) | $ | (99,758) | $ | (122,129) | |||||||||||||||
| Net loss and adjustment attributable to redeemable non-controlling interest | (3,268) | (5,699) | 2,744 | (10,054) | |||||||||||||||||||
| Net loss attributable to New Relic | $ | (46,775) | $ | (53,769) | $ | (97,014) | $ | (132,183) | |||||||||||||||
| Net loss attributable to New Relic per share, basic and diluted | $ | (0.70) | $ | (0.84) | $ | (1.45) | $ | (2.07) | |||||||||||||||
| Weighted-average shares used to compute net loss per share, basic and diluted | 67,207 | 64,277 | 66,816 | 63,811 | |||||||||||||||||||
| Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| Cost of revenue | $ | 1,533 | $ | 1,303 | $ | 2,877 | $ | 2,375 | |||||||||||||||
| Research and development | 14,442 | 12,147 | 27,728 | 23,111 | |||||||||||||||||||
| Sales and marketing | 12,874 | 13,548 | 23,457 | 25,082 | |||||||||||||||||||
General and administrative (2) | 11,003 | 10,573 | 20,672 | 29,190 | |||||||||||||||||||
Total stock-based compensation expense (3) | $ | 39,852 | $ | 37,571 | $ | 74,734 | $ | 79,758 | |||||||||||||||
| Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| (as a percentage of revenue) | |||||||||||||||||||||||
| Revenue | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||
| Cost of revenue (1) | 29 | 33 | 29 | 33 | |||||||||||||||||||
| Gross profit | 71 | 67 | 71 | 67 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Research and development (1) | 30 | 25 | 31 | 26 | |||||||||||||||||||
| Sales and marketing (1) | 42 | 48 | 45 | 52 | |||||||||||||||||||
| General and administrative (1) | 19 | 17 | 18 | 20 | |||||||||||||||||||
| Total operating expenses | 91 | 90 | 94 | 98 | |||||||||||||||||||
| Loss from operations | (20) | (23) | (23) | (31) | |||||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||
| Interest income | 1 | — | 1 | — | |||||||||||||||||||
| Interest expense | (1) | (1) | (1) | (1) | |||||||||||||||||||
| Other income (expense), net | — | — | — | — | |||||||||||||||||||
| Loss before income taxes | (20) | (24) | (23) | (32) | |||||||||||||||||||
| Income tax provision (benefit) | — | — | — | — | |||||||||||||||||||
| Net loss | (20) | % | (24) | % | (23) | % | (32) | % | |||||||||||||||
| Net loss and adjustment attributable to redeemable non-controlling interest | (1) | (3) | 1 | (3) | |||||||||||||||||||
| Net loss attributable to New Relic | (21) | % | (27) | % | (22) | % | (35) | % | |||||||||||||||
| Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| (as a percentage of revenue) | |||||||||||||||||||||||
| Cost of revenue | 1 | % | 1 | % | 1 | % | 1 | % | |||||||||||||||
| Research and development | 6 | 6 | 6 | 6 | |||||||||||||||||||
| Sales and marketing | 6 | 7 | 5 | 6 | |||||||||||||||||||
| General and administrative | 5 | 5 | 5 | 8 | |||||||||||||||||||
| Total stock-based compensation expense | 18 | % | 19 | % | 17 | % | 21 | % | |||||||||||||||
| Three Months Ended September 30, | Change | Six Months Ended September 30, | Change | ||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | Amount | % | 2022 | 2021 | Amount | % | ||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
| United States | $ | 147,713 | $ | 133,405 | $ | 14,308 | 11 | % | $ | 291,173 | $ | 256,440 | $ | 34,733 | 14 | % | |||||||||||||||||||||||||||||||
| EMEA | 38,296 | 30,041 | 8,255 | 27 | 73,012 | 58,206 | 14,806 | 25 | |||||||||||||||||||||||||||||||||||||||
| APAC | 24,528 | 19,305 | 5,223 | 27 | 47,654 | 36,498 | 11,156 | 31 | |||||||||||||||||||||||||||||||||||||||
| Other | 16,375 | 12,943 | 3,432 | 27 | 31,532 | 25,034 | 6,498 | 26 | |||||||||||||||||||||||||||||||||||||||
| Total revenue | $ | 226,912 | $ | 195,694 | $ | 31,218 | 16 | % | $ | 443,371 | $ | 376,178 | $ | 67,193 | 18 | % | |||||||||||||||||||||||||||||||
| Three Months Ended September 30, | Change | Six Months Ended September 30, | Change | ||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | Amount | % | 2022 | 2021 | Amount | % | ||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
| Cost of revenue | $ | 64,783 | $ | 64,262 | $ | 521 | 1 | % | $ | 128,676 | $ | 123,526 | $ | 5,150 | 4 | % | |||||||||||||||||||||||||||||||
| Three Months Ended September 30, | Change | Six Months Ended September 30, | Change | ||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | Amount | % | 2022 | 2021 | Amount | % | ||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
| Research and development | $ | 68,730 | $ | 51,368 | $ | 17,362 | 34 | % | $ | 133,499 | $ | 100,098 | $ | 33,401 | 33 | % | |||||||||||||||||||||||||||||||
| Three Months Ended September 30, | Change | Six Months Ended September 30, | Change | ||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | Amount | % | 2022 | 2021 | Amount | % | ||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
| Sales and marketing | $ | 96,203 | $ | 93,067 | $ | 3,136 | 3 | % | $ | 200,623 | $ | 195,880 | $ | 4,743 | 2 | % | |||||||||||||||||||||||||||||||
| Three Months Ended September 30, | Change | Six Months Ended September 30, | Change | ||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | Amount | % | 2022 | 2021 | Amount | % | ||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
| General and administrative | $ | 42,483 | $ | 34,014 | $ | 8,469 | 25 | % | $ | 81,513 | $ | 77,579 | $ | 3,934 | 5 | % | |||||||||||||||||||||||||||||||
| Three Months Ended September 30, | Change | Six Months Ended September 30, | Change | ||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | Amount | % | 2022 | 2021 | Amount | % | ||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
| Other income (expense) | $ | 1,399 | $ | (547) | $ | 1,946 | 356 | % | $ | 1,068 | $ | (1,171) | $ | 2,239 | 191 | % | |||||||||||||||||||||||||||||||
| Three Months Ended September 30, | Change | Six Months Ended September 30, | Change | ||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | Amount | % | 2022 | 2021 | Amount | % | ||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
| Income tax provision (benefit) | $ | (381) | $ | 506 | $ | (887) | 175 | % | (114) | 53 | $ | (167) | 315 | % | |||||||||||||||||||||||||||||||||
| Three Months Ended September 30, | Change | Six Months Ended September 30, | Change | ||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | Amount | % | 2022 | 2021 | Amount | % | ||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
| Net loss and adjustment attributable to redeemable non-controlling interest | $ | (3,268) | $ | (5,699) | $ | 2,431 | 43 | % | $ | 2,744 | $ | (10,054) | $ | 12,798 | 127 | % | |||||||||||||||||||||||||||||||
| Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| GAAP loss from operations | $ | (45,287) | $ | (47,017) | $ | (100,940) | $ | (120,905) | |||||||||||||||
| Plus: Stock-based compensation expense | 39,852 | 37,571 | 74,734 | 79,758 | |||||||||||||||||||
| Plus: Amortization of purchased intangibles | 2,292 | 1,676 | 4,583 | 3,352 | |||||||||||||||||||
| Plus: Transaction costs related to acquisitions | 929 | — | 929 | 361 | |||||||||||||||||||
| Plus: Amortization of stock-based compensation capitalized in software development costs | 748 | 620 | 1,493 | 1,040 | |||||||||||||||||||
| Plus: Lawsuit litigation cost and other expense | 262 | — | 88 | — | |||||||||||||||||||
| Plus: Employer payroll tax on employee equity incentive plans | 860 | 783 | 1,612 | 1,596 | |||||||||||||||||||
Plus: Restructuring charges (1) | 7,210 | (9) | 7,210 | 12,270 | |||||||||||||||||||
| Non-GAAP income (loss) from operations | $ | 6,866 | $ | (6,376) | $ | (10,291) | $ | (22,528) | |||||||||||||||
| Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| GAAP net loss attributable to New Relic | $ | (46,775) | $ | (53,769) | $ | (97,014) | $ | (132,183) | |||||||||||||||
| Plus: Stock-based compensation expense | 39,852 | 37,571 | 74,734 | 79,758 | |||||||||||||||||||
| Plus: Amortization of purchased intangibles | 2,292 | 1,676 | 4,583 | 3,352 | |||||||||||||||||||
| Plus: Transaction costs related to acquisitions | 929 | — | 929 | 361 | |||||||||||||||||||
| Plus: Amortization of stock-based compensation capitalized in software development costs | 748 | 620 | 1,493 | 1,040 | |||||||||||||||||||
| Plus: Lawsuit litigation cost and other expense | 262 | — | 88 | — | |||||||||||||||||||
| Plus: Employer payroll tax on employee equity incentive plans | 860 | 783 | 1,612 | 1,596 | |||||||||||||||||||
| Plus: Amortization of debt discount and issuance costs | 594 | 589 | 1,187 | 1,176 | |||||||||||||||||||
| Plus: Adjustment to redeemable non-controlling interest | 3,196 | 5,840 | (2,670) | 10,235 | |||||||||||||||||||
Plus: Restructuring charges (1) | 7,210 | (9) | 7,210 | 12,270 | |||||||||||||||||||
| Non-GAAP net income (loss) attributable to New Relic | $ | 9,168 | $ | (6,699) | $ | (7,848) | $ | (22,395) | |||||||||||||||
| Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Net cash provided by (used in) operating activities | $ | (37,446) | $ | (37,003) | $ | 5,563 | $ | (27,131) | |||||||||||||||
| Capital expenditures | (1,122) | (600) | (2,416) | (2,826) | |||||||||||||||||||
| Capitalized software development costs | (4,520) | (3,187) | (7,907) | (6,047) | |||||||||||||||||||
| Free cash flow (Non-GAAP) | $ | (43,088) | $ | (40,790) | $ | (4,760) | $ | (36,004) | |||||||||||||||
| Net cash provided by investing activities | $ | 194,182 | $ | 791 | $ | 184,246 | $ | 5,198 | |||||||||||||||
| Net cash provided by financing activities | $ | 10,839 | $ | 8,234 | $ | 12,564 | $ | 13,031 | |||||||||||||||
| Six Months Ended September 30, | |||||||||||
| 2022 | 2021 | ||||||||||
| (in thousands) | |||||||||||
| Cash provided by (used in) operating activities | $ | 5,563 | $ | (27,131) | |||||||
| Cash provided by investing activities | 184,246 | 5,198 | |||||||||
| Cash provided by financing activities | 12,564 | 13,031 | |||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | $ | 202,373 | $ | (8,902) | |||||||
| Exhibit No. | Description of Exhibit | Incorporated by Reference | Filed Herewith | |||||||||||||||||||||||||||||||||||
| Form | File No. | Exhibit | File Date | |||||||||||||||||||||||||||||||||||
| Amended and Restated Certificate of Incorporation of the Registrant, as amended. | 8-K | 001-36766 | 3.1 | August 19, 2021 | ||||||||||||||||||||||||||||||||||
| Amended and Restated Bylaws of the Registrant. | 8-K | 001-36766 | 3.2 | August 19, 2021 | ||||||||||||||||||||||||||||||||||
| Form of Change in Control and Severance Agreement. | 10-Q | 001-36766 | 10.1 | August 4, 2022 | ||||||||||||||||||||||||||||||||||
| Addendum to Employment Contract between the Registrant and Steve Hurn, dated as of July 1, 2022. | 10-Q | 001-36766 | 10.2 | August 4, 2022 | ||||||||||||||||||||||||||||||||||
| Offer Letter between the Registrant and David Barter, dated as of August 1, 2022. | X | |||||||||||||||||||||||||||||||||||||
| Offer Letter between the Registrant and Thomas Lloyd, dated as of August 17, 2022. | X | |||||||||||||||||||||||||||||||||||||
| Offer Letter between the Registrant and Mark Dodds, dated as of August 26, 2022. | X | |||||||||||||||||||||||||||||||||||||
| Certification of Principal Executive Officer 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. | X | |||||||||||||||||||||||||||||||||||||
| Certification of Principal Financial Officer 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. | X | |||||||||||||||||||||||||||||||||||||
32.1(1) | Certification of Principal Executive Officer and Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | X | ||||||||||||||||||||||||||||||||||||
| 101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the In-line XBRL document. | |||||||||||||||||||||||||||||||||||||
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document | X | ||||||||||||||||||||||||||||||||||||
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | X | ||||||||||||||||||||||||||||||||||||
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | X | ||||||||||||||||||||||||||||||||||||
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | X | ||||||||||||||||||||||||||||||||||||
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | X | ||||||||||||||||||||||||||||||||||||
| 104 | Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||||||||||||||||||||||||||||||||
| NEW RELIC, INC. | |||||||||||
| Date: | November 8, 2022 | ||||||||||
| By: | /s/ David Barter | ||||||||||
| David Barter | |||||||||||
| Chief Financial Officer | |||||||||||
| (Principal Financial and Accounting Officer and Duly Authorized Signatory) | |||||||||||




| Date: | November 8, 2022 | By: | /s/ William Staples | ||||||||
| William Staples | |||||||||||
| Chief Executive Officer (Principal Executive Officer) | |||||||||||
| Date: | November 8, 2022 | By: | /s/ David Barter | ||||||||
| David Barter | |||||||||||
| Chief Financial Officer (Principal Financial Officer) | |||||||||||
| Date: | November 8, 2022 | By: | /s/ William Staples | ||||||||
| William Staples | |||||||||||
| Chief Executive Officer | |||||||||||
| Date: | November 8, 2022 | By: | /s/ David Barter | ||||||||
| David Barter | |||||||||||
| Chief Financial Officer | |||||||||||
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Mar. 31, 2022 |
|---|---|---|
| Statement of Financial Position [Abstract] | ||
| Allowance for doubtful accounts | $ 2,562 | $ 3,073 |
| Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
| Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
| Common stock, shares issued (in shares) | 68,568,000 | 66,988,000 |
| Common stock, shares outstanding (in shares) | 68,308,000 | 66,728,000 |
| Treasury stock, shares (in shares) | 260,000 | 260,000 |
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
| Income Statement [Abstract] | ||||
| Revenue | $ 226,912 | $ 195,694 | $ 443,371 | $ 376,178 |
| Cost of revenue | 64,783 | 64,262 | 128,676 | 123,526 |
| Gross profit | 162,129 | 131,432 | 314,695 | 252,652 |
| Operating expenses: | ||||
| Research and development | 68,730 | 51,368 | 133,499 | 100,098 |
| Sales and marketing | 96,203 | 93,067 | 200,623 | 195,880 |
| General and administrative | 42,483 | 34,014 | 81,513 | 77,579 |
| Total operating expenses | 207,416 | 178,449 | 415,635 | 373,557 |
| Loss from operations | (45,287) | (47,017) | (100,940) | (120,905) |
| Other income (expense): | ||||
| Interest income | 2,425 | 724 | 3,535 | 1,662 |
| Interest expense | (1,233) | (1,228) | (2,465) | (2,454) |
| Other income (expense) | 207 | (43) | (2) | (379) |
| Loss before income taxes | (43,888) | (47,564) | (99,872) | (122,076) |
| Income tax provision (benefit) | (381) | 506 | (114) | 53 |
| Net loss | (43,507) | (48,070) | (99,758) | (122,129) |
| Net loss and adjustment attributable to redeemable non-controlling interest | (3,268) | (5,699) | 2,744 | (10,054) |
| Net loss attributable to New Relic | $ (46,775) | $ (53,769) | $ (97,014) | $ (132,183) |
| Net loss attributable to New Relic per share, basic (in usd per share) | $ (0.70) | $ (0.84) | $ (1.45) | $ (2.07) |
| Net loss attributable to New Relic per share, diluted (in usd per share) | $ (0.70) | $ (0.84) | $ (1.45) | $ (2.07) |
| Weighted-average shares used to compute net loss per share, basic (in shares) | 67,207 | 64,277 | 66,816 | 63,811 |
| Weighted-average shares used to compute net loss per share, diluted (in shares) | 67,207 | 64,277 | 66,816 | 63,811 |
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
| Statement of Comprehensive Income [Abstract] | ||||
| Net loss attributable to New Relic | $ (46,775) | $ (53,769) | $ (97,014) | $ (132,183) |
| Other comprehensive loss: | ||||
| Unrealized loss on available-for-sale securities | (1,885) | (358) | (3,821) | (1,189) |
| Comprehensive loss attributable to New Relic | $ (48,660) | $ (54,127) | $ (100,835) | $ (133,372) |
Description of Business and Summary of Significant Accounting Policies |
6 Months Ended |
|---|---|
Sep. 30, 2022 | |
| Accounting Policies [Abstract] | |
| Description of Business and Summary of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies New Relic, Inc. (the “Company” or “New Relic”) was incorporated in Delaware on February 20, 2008, when it converted from a Delaware limited liability company called New Relic Software, LLC, which was formed in Delaware in September 2007. The Company delivers a software platform for customers to land all their telemetry data in one place and derive actionable insights from that data in a unified front-end application. The New Relic platform provides users with a consistent and comprehensive view of their digital environment allowing them to observe and operate all the components of their digital infrastructure. Basis of Presentation —These unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2022, as filed with the SEC on May 17, 2022 (the “Annual Report”). In the opinion of management, the unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, comprehensive loss, stockholders’ equity and cash flows for the interim period, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year ending March 31, 2023. The condensed consolidated balance sheet as of March 31, 2022 included herein was derived from the audited financial statements as of that date. Use of Estimates—The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Significant items subject to such estimates and assumptions include the fair value of share-based awards, fair value of purchased intangible assets and goodwill, variable consideration included in the transaction price for our customer contracts, useful lives of purchased intangible assets, unrecognized tax benefits, incremental borrowing rate used for operating lease liabilities, and the capitalization and estimated useful life of the Company’s software development costs. These estimates are based on information available as of the date of the consolidated financial statements; therefore, actual results could differ from management’s estimates. COVID-19—The COVID-19 pandemic has resulted in a global slowdown of economic activity that is expected to continue. The extent of any continuing impact to the Company’s financial condition or results of operations is uncertain, particularly as the COVID-19 pandemic continues to persist for an extended period of time. Concentration of Risk—There was no customer that represented more than 10% of the Company’s accounts receivable balance as of September 30, 2022 or March 31, 2022. There was no customer that individually exceeded 10% of the Company’s revenue during the three or six months ended September 30, 2022 or 2021. Revenue Recognition—The Company generates revenue from subscription-based arrangements and usage-based arrangements that allow customers to access its products and/or platform. The Company typically sells (1) a subscription agreement for a committed contractual amount that is apportioned ratably on a monthly basis over the term of the subscription period, which may or may not include a usage overage component, (2) a subscription agreement for a committed contractual amount where usage is drawn down as utilized, and (3) a usage-based arrangement that is billed based on usage (“Pay as You Go”). The Company determines revenue recognition through the following steps: •identification of the contract, or contracts with a customer; •identification of the performance obligations in the contract; •determination of the transaction price; •allocation of the transaction price to the performance obligations in the contract; and •recognition of revenue, when, or as, the Company satisfies a performance obligation. Depending on the nature of the contract, revenue from subscription-based arrangements is recognized on a ratable basis over the contractual subscription period of the arrangement or recognized as usage is incurred. Usage above the commitment is either recognized as incurred or as an estimate of usage above the minimum commitment. Usage above the minimum commitment is estimated by looking at usage in previous months and other factors and projecting out for the rest of the contract. The estimated usage-based revenues are constrained to the amount the Company expects to be entitled to receive in exchange for providing access to its platform. Recently Issued Accounting Pronouncements Not Yet Adopted In October 2021, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2021-08, Business Combinations - Accounting for Contract Liabilities from Contracts with Customers (Topic 805), which requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities from acquired contracts using the revenue recognition guidance under ASC 606 as if the entity had originated the contracts. The guidance is effective for fiscal years beginning after April 1, 2023, including interim periods within those fiscal years. The Company is currently evaluating the impact of adopting this guidance. Recently Adopted Accounting Pronouncements In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt-Modifications and Extinguishments (Subtopic 470-50), Compensation-Stock Compensation (Topic 718), and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40). The new ASU addresses an issuer’s accounting for certain modifications or exchanges of freestanding equity-classified written call options. The Company adopted this new standard on April 1, 2022. The adoption of this standard did not have an impact on its condensed consolidated financial statements.
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Business Combinations |
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business Combinations | Business Combinations K2 Cyber Security Inc. On September 14, 2022, the Company acquired all of the equity interests in K2 Cyber Security Inc. (“K2”), a company that provides a differentiated, signatureless approach to vulnerability and hack detection. The aggregate purchase price of $16.6 million consisted of approximately (i) $4.5 million in cash (of which the Company held back approximately $3.3 million for 18 months after the transaction closing date for indemnification purposes, which has been accrued as a long-term liability) and (ii) 202,752 shares of the Company’s common stock with an aggregate fair value of approximately $12.1 million, after taking into account the holdback arrangement with the K2 founders, as described below. The fair value of the consideration transferred was determined based on a $59.74 per share price of the Company’s common stock on the closing date of the acquisition. The total purchase price was allocated to the developed technology acquired with an estimated useful life of three years and net assets assumed. Deferred tax related to the developed technology was deemed immaterial. The excess purchase price was recorded as goodwill, as set forth below. Goodwill generated from the acquisition is attributable to expected synergies from future growth and is not deductible for tax purposes. The following table presents the preliminary purchase price allocation related to the acquisition (in thousands):
The acquisition has been accounted for as a business combination in accordance with ASC 805. The estimated fair value of developed technology acquired of $7.4 million was determined through the use of a third-party valuation firm using cost approach methodology. The direct transaction costs of the acquisition have been accounted for separately from the business combination and expensed as incurred. Total direct transaction costs incurred by the Company were $0.9 million, which were included in general and administrative expenses in the Company’s condensed consolidated statement of operations for the three months ended September 30, 2022. The Company paid approximately $0.6 million in acquisition-related expenses incurred by K2 for its advisors which were included as part of the purchase consideration. The business combination did not have a material impact on the condensed consolidated financial statements and therefore historical and pro forma disclosures have not been presented. The acquisition also included a holdback arrangement with the two founders of K2, totaling approximately 67,278 shares of the Company’s common stock, contingent upon their continued employment with the Company. The fair value of these awards, which are subject to the recipients’ continued service, was $4.0 million and was excluded from the aggregate purchase price. These awards will be recognized as stock-based compensation expenses over the vesting period, which is 24 and 36 months for the two founders, respectively. CodeStream Inc. On June 8, 2021, the Company acquired all of the equity interests in CodeStream Inc. (“CodeStream”), a company that provides an integrated developer collaboration platform. The aggregate purchase price of $28.6 million consisted of approximately $15.1 million in cash (of which the Company held back approximately $7.3 million from the aggregate purchase price for 18 months after the transaction closing date, and which has been accrued as a long-term liability) and 202,561 shares of the Company’s common stock with an aggregate fair value of approximately $13.5 million. The fair value of the consideration transferred was determined based on a $66.58 per share price of the Company’s common stock on the closing date of the acquisition. The total purchase price was allocated to the developed technology acquired with an estimated useful life of three years, net assets assumed, and a deferred tax liability related to the developed technology. The excess purchase price was recorded as goodwill. The acquisition was accounted for as a business combination in accordance with ASC 805. The estimated fair value of developed technology acquired of $10.3 million was determined through the use of a third-party valuation firm using cost approach methodology. The business combination did not have a material impact on the condensed consolidated financial statements and therefore historical and proforma disclosures have not been presented. The acquisition also included a holdback arrangement with certain employees of CodeStream, totaling approximately 199,492 shares of the Company’s common stock, contingent upon their continued employment with the Company. The fair value of these awards, which are subject to the recipients’ continued service, was $13.3 million and was excluded from the aggregate purchase price. These awards are being recognized as stock-based compensation expense over the vesting period, which is 42 months.
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Joint Venture |
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| Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Joint Venture | Joint VentureOn July 13, 2018, the Company entered into an agreement with Japan Cloud Computing L.P. and M30 LLC (collectively, the “Investors”) to engage in the investment, organization, management and operation of New Relic K.K., a Japanese subsidiary of the Company that is focused on the sale of the Company’s products and services in Japan. On August 21, 2018, the investors initially contributed approximately $3.6 million (396 million Japanese Yen) in exchange for 40% of the outstanding common stock of New Relic K.K. On August 21, 2019, the Company and Investors additionally contributed approximately $1.5 million (156 million Japanese Yen) and approximately $1.0 million (104 million Japanese Yen), respectively, to subscribe to additional shares. As of September 30, 2022, the Company owned approximately 60% of the outstanding common stock in New Relic K.K. All of the common stock held by the Investors may be callable by the Company or puttable by the Investors upon certain contingent events. Should the call or put option be exercised, the redemption value would be determined based on a prescribed formula derived from the discrete revenues of New Relic K.K. and the Company and may be settled, at the Company’s discretion, with Company stock or cash. As a result of the put right available to the redeemable non-controlling interest holders in the future, the redeemable non-controlling interest in New Relic K.K. is classified outside of permanent equity in the Company’s consolidated balance sheet as of September 30, 2022, and the balance is reported at the greater of the initial carrying amount adjusted for the redeemable non-controlling interest’s share of earnings or losses, or its estimated redemption value. Accordingly, the Company adjusted the redeemable non-controlling interest by $2.7 million at September 30, 2022. The following table summarizes the activity in the redeemable non-controlling interest for the periods indicated below (in thousands):
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Fair Value Measurements |
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| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Measurements | Fair Value Measurements The following tables present information about the Company’s financial assets measured at fair value on a recurring basis as of September 30, 2022 and March 31, 2022 based on the three-tier fair value hierarchy (in thousands):
There were no transfers between fair value measurement levels during the six months ended September 30, 2022 and 2021. The Company invests in certificates of deposit, commercial paper, corporate debt securities, U.S. treasury securities, and U.S. agency securities, which are classified as available-for-sale securities. The following table presents the Company’s available-for-sale securities as of September 30, 2022 (in thousands):
The following table presents the Company’s available-for-sale securities as of March 31, 2022 (in thousands):
As of September 30, 2022 and March 31, 2022, securities that were in an unrealized loss position for more than 12 months were $5.3 million and $1.3 million, respectively. The unrealized losses were caused by changes in market interest rates or the widening of market spreads subsequent to the initial purchase of these securities, and not related to the underlying credit of the issuers or the underlying collateral. The unrealized losses on these investments are not considered other-than-temporary impairment, because the decline in fair value is not attributable to credit quality and because the Company does not intend, and it is not likely that it will be required, to sell these securities before recovery of their amortized cost basis. As a result, the Company did not consider any available-for-sale securities to be impaired as of September 30, 2022 and March 31, 2022. The following table classifies the Company’s available-for-sale short-term investments by contractual maturities as of September 30, 2022 and March 31, 2022 (in thousands):
For certain other financial instruments, including accounts receivable, accounts payable and other current liabilities, the carrying amounts approximate their fair value due to the relatively short maturity of these balances. Convertible Senior Notes As of September 30, 2022, the fair value of the Notes was $443.5 million. The fair value was determined based on the quoted price of the Notes in an inactive market on the last trading day of the reporting period and has been classified as Level 2 in the fair value hierarchy.
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Contract Acquisition Costs |
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| Contract Acquisition Costs | Contract Acquisition CostsThe Company capitalizes certain contract acquisition costs primarily consisting of commissions. The balances of deferred costs to obtain customer contracts were $24.3 million and $34.5 million as of September 30, 2022 and March 31, 2022, respectively. In the three months ended September 30, 2022 and 2021, amortization from amounts capitalized was $6.5 million and $9.6 million, respectively. In the six months ended September 30, 2022 and 2021, amortization from amounts capitalized was $13.7 million and $19.8 million, respectively. In the three months ended September 30, 2022 and 2021, amounts expensed as incurred were $14.0 million and $15.4 million, respectively. In the six months ended September 30, 2022 and 2021, amounts expensed as incurred were $28.5 million and $29.5 million, respectively. The Company had no impairment loss in relation to costs capitalized.Accounts Receivable, Deferred Revenue and Performance Obligations In a response to the COVID-19 pandemic, the Company performed additional procedures to evaluate the creditworthiness of its customers and assess collectability of accounts. Using a current expected credit loss model, the Company determined that, while there may be a delay in collections due to the downturn in economic activity, there has not been a material impact to the risk of credit loss on accounts receivables as of September 30, 2022. The Company receives payments from customers based upon billing cycles. As the Company performs under customer contracts, its right to consideration that is unconditional is considered to be accounts receivable. If the Company’s right to consideration for such performance is contingent upon a future event or satisfaction of additional performance obligations, the amount of revenues the Company has recognized in excess of the amount it has billed to the customer is considered to be a contract asset. Contract assets were $4.2 million and $1.5 million as of September 30, 2022 and March 31, 2022, respectively. Deferred revenue represents consideration received from customers in excess of revenues recognized. The following table presents the changes to the Company’s deferred revenue (in thousands):
For the three and six months ended September 30, 2022 and 2021, the majority of revenue recognized was from the deferred revenue balances at the beginning of each period. For the three and six months ended September 30, 2022, the Company recognized $7.9 million and $9.8 million, respectively, in revenue from performance obligations satisfied in prior periods. For the three and six months ended September 30, 2021, the Company recognized $9.7 million and $7.9 million, respectively, in revenue from performance obligations satisfied in prior periods. The aggregate unrecognized transaction price of remaining performance obligations as of September 30, 2022 and 2021 was $602.3 million and $597.2 million, respectively. The Company expects to recognize more than 95% of the balance as revenue in the 24 months following September 30, 2022 and the remainder thereafter. The aggregate balance of remaining performance obligations represents contracted revenue that has not yet been recognized and does not include contract amounts which are cancellable by the customer and amounts associated with optional renewal periods.
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Property and Equipment |
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| Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property and Equipment | Property and Equipment Property and equipment, net, consisted of the following (in thousands):
Depreciation and amortization expense related to property and equipment was $7.3 million and $10.8 million for the three months ended September 30, 2022 and 2021, respectively, and $15.2 million and $21.6 million for the six months ended September 30, 2022 and 2021, respectively.
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0.5% Convertible Senior Notes and Capped Call |
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| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 0.5% Convertible Senior Notes and Capped Call | 0.5% Convertible Senior Notes and Capped Call In May 2018, the Company issued $500.25 million in aggregate principal amount of Notes in a private offering, including $65.25 million in aggregate principal amount of Notes pursuant to the exercise in full of the initial purchasers’ option to purchase additional Notes. The Notes are the Company’s senior unsecured obligations and bear interest at a fixed rate of 0.5% per annum, payable semi-annually in arrears on May 1 and November 1 of each year, commencing on November 1, 2018. The Notes will mature on May 1, 2023, unless earlier converted or repurchased. Each $1,000 principal amount of the Notes will initially be convertible into 9.0244 shares of the Company’s common stock (the “Conversion Option”), which is equivalent to an initial conversion price of approximately $110.81 per share. The conversion rate is subject to adjustment under certain circumstances in accordance with the terms of the indenture governing the Notes. In addition, following certain corporate events that occur prior to the maturity date, the Company will increase the conversion rate, in certain circumstances, for a holder who elects to convert its Notes in connection with such a corporate event. During the three and six months ended September 30, 2022, the conditions allowing holders of the Notes to convert have not been met. The Notes were convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding November 1, 2022, only under the following circumstances: (1) during any fiscal quarter commencing after the fiscal quarter ending on September 30, 2018 (and only during such fiscal quarter), if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price (as defined in the indenture governing the Notes) per $1,000 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate for the Notes on each such trading day; or (3) upon the occurrence of specified corporate events as set forth in the indenture governing the Notes. On or after November 1, 2022 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their Notes, in multiples of $1,000 principal amount, at the option of the holder regardless of the foregoing circumstances. Upon conversion, the Company may satisfy its conversion obligation by paying and/or delivering, as the case may be, cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s election, in the manner and subject to the terms and conditions provided in the indenture governing the Notes. The default settlement method, which is cash up to the principal amount of the Notes and shares for any excess conversion value, will apply to any such conversions after November 1, 2022, and the Company currently intends to satisfy its conversion obligation with the holders of the Notes in cash. In accounting for the transaction, the Notes were separated into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that does not have an associated conversion feature. The carrying amount of the equity component representing the Conversion Option was $102.5 million and was determined by deducting the fair value of the liability component from the proceeds received upon issuance of the Notes. The equity component was recorded in additional paid-in capital and is not remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the Notes over the liability component (the “Debt Discount”) and the debt issuance costs were amortized to interest expense over the contractual term of the Notes at an effective interest rate of 5.74%. This rate is inclusive of the issuance costs. In accounting for the debt issuance costs of $11.6 million related to the Notes, the Company allocated the total amount incurred to the liability and equity components using the same proportions as the proceeds of the Notes. Issuance costs attributable to the liability component were $9.2 million and were amortized to interest expense using the effective interest method over the contractual term of the Notes. Issuance costs attributable to the equity component were $2.4 million and netted with the equity component in additional paid-in capital. In connection with the offering of the Notes, the Company entered into privately negotiated capped call transactions with certain financial institutions (the “Capped Calls”). The Capped Calls each have an initial strike price of approximately $110.81 per share, subject to certain adjustments, which correspond to the initial conversion price of the Notes. The Capped Calls have initial cap prices of $173.82 per share, subject to certain adjustments. The Capped Calls cover, subject to anti-dilution adjustments, approximately 4.5 million shares of our common stock. Conditions that cause adjustments to the initial strike price of the Capped Calls mirror conditions that result in corresponding adjustments for the Notes. The Capped Calls are generally intended to reduce potential dilution to holders of the Company’s common stock upon any conversion of the Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of converted Notes, as the case may be, with such reduction and/or offset, as the case may be, subject to a cap based on the cap price. For accounting purposes, the Capped Calls are separate transactions, and not part of the terms of the Notes. As these transactions meet certain accounting criteria, the Capped Calls are recorded in stockholders’ equity and are not accounted for as derivatives. The cost of $63.2 million incurred in connection with the Capped Calls was recorded as a reduction to additional paid-in capital. The net impact related to stockholders’ equity has been included in additional paid-in capital and was a result of the issuance costs of $2.4 million and the purchase of Capped Calls noted above in the amount of $63.2 million. In the first quarter of fiscal 2022, the Company adopted ASU No. 2020-06, Accounting for Convertible Instruments and Contract on an Entity’s Own Equity. As a result of the adoption, the Conversion Option of $102.5 million and issuance costs of $2.4 million previously attributable to the equity component are no longer presented in equity. Similarly, the debt discount, which was equal to the carrying value of the embedded conversion feature upon issuance, is no longer amortized into income as interest expense over the life of the instrument. As a result, the Company recorded a $54.2 million decrease to the opening balance of accumulated deficit, a $100.1 million decrease to the opening balance of additional paid-in capital, and a $45.9 million increase to the opening balance of the Notes, net on the consolidated balance sheet. The Notes became current and were reclassified to short-term effective in the first quarter of fiscal year 2023. For the three months ended September 30, 2022, the effective interest rate for the Notes was 0.98%. The net carrying amount of the liability component of the Notes was as follows (in thousands):
Interest expense related to the Notes was as follows (in thousands):
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Goodwill and Purchased Intangibles Assets |
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| Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Purchased Intangibles Assets | Goodwill and Purchased Intangibles Assets In September 2022, the Company acquired all of the equity interests in K2. As of the closing of the acquisition, the estimated fair value of the acquired developed technology and goodwill was $7.4 million and $8.6 million, respectively. Refer to Note 2 — Business Combinations for more information. The changes in the carrying amount of goodwill for the six months ended September 30, 2022 consisted of the following (in thousands):
Purchased intangible assets subject to amortization as of September 30, 2022 consisted of the following (in thousands):
Purchased intangible assets subject to amortization as of March 31, 2022 consisted of the following (in thousands):
Amortization expense of purchased intangible assets was $2.3 million and $1.7 million for the three months ended September 30, 2022 and 2021, respectively, and $4.6 million and $3.4 million for the six months ended September 30, 2022 and 2021, respectively, and is included in cost of revenue on the Company’s condensed consolidated statements of operations. Estimated future amortization expense as of September 30, 2022 was as follows (in thousands):
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Leases |
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| Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases | Leases The Company leases office space under non-cancelable operating leases, which expire from 2023 to 2031. All of its office leases are classified as operating leases with lease expense recognized on a straight-line basis over the lease term. Lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As these leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company considers information including, but not limited to, the lease term, the Company's credit rating and interest rates of similar debt instruments with comparable credit ratings. The lease right-of-use assets are also increased by any lease prepayments made and reduced by any lease incentives such as tenant improvement allowances. Options to extend the lease term are included in the lease term when it is reasonably certain that the Company will exercise the extension option. The Company’s operating leases typically include nonlease components such as common-area maintenance costs. The Company has elected to include nonlease components with lease payments for the purpose of calculating lease right-of-use assets and liabilities, to the extent that they are fixed. Nonlease components that are not fixed are expensed as incurred as variable lease payments. Leases with a term of one year or less are not recognized on the Company’s condensed consolidated balance sheet. In the second quarter of fiscal 2023, the Company evaluated its real estate portfolio and decided to abandon certain office space leases. For the three months ended September 30, 2022, the Company recorded a $1.5 million cost associated with leasehold improvement write-offs and $1.2 million of acceleration of right-of-use assets. The following table presents information about leases on the condensed consolidated balance sheet (in thousands):
As of September 30, 2022, the weighted average remaining lease term was 4.9 years and the weighted average discount rate was 6.9%. The following table presents information about leases on its condensed consolidated statement of operations (in thousands):
The following table presents supplemental cash flow information about the Company’s leases (in thousands):
(1) Includes the impact of new leases as well as remeasurements and modifications to existing leases. As of September 30, 2022, remaining maturities of lease liabilities were as follows (in thousands):
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Commitments and Contingencies |
6 Months Ended |
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Sep. 30, 2022 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| Commitments and Contingencies | Commitments and ContingenciesPurchase Commitments—As of September 30, 2022 and March 31, 2022, the Company had purchase commitments of $567.4 million and $549.4 million, respectively, primarily related to data center, cloud and hosting services.Other Contingencies—In the normal course of business, the Company may agree to indemnify third parties with whom it enters into contractual relationships, including customers, lessors, and parties to other transactions with the Company, with respect to certain matters. The Company has agreed, under certain conditions, to hold these third parties harmless against specified losses, such as those arising from a breach of representations or covenants, other third-party claims that the Company’s products when used for their intended purposes infringe the intellectual property rights of such other third parties, or other claims made against certain parties. To date, the Company has not incurred any costs as a result of such obligations and has not accrued any liabilities related to such obligations in the consolidated financial statements. In addition, the Company indemnifies its officers, directors, and certain key employees while they are serving in good faith in their respective capacities. The Company does not currently believe there is a reasonable possibility that a loss may have been incurred under these indemnification obligations. To date, there have been no claims under any such indemnification provisions. |
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| Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock and Stockholders' Equity | Common Stock and Stockholders’ Equity Employee Stock Purchase Plan—The Company’s board of directors adopted, and the Company’s stockholders approved, the Company’s 2014 Employee Stock Purchase Plan (the “ESPP”), which became effective in December 2014. The ESPP initially reserved and authorized the issuance of up to 1,000,000 shares of common stock. The ESPP provides that the number of shares reserved and available for issuance under the ESPP automatically increases each April, beginning on April 1, 2015, by the lesser of 500,000 shares, 1% of the number of the Company’s common stock shares issued and outstanding on the immediately preceding March 31, or such lesser number of shares as determined by the Company’s board of directors. For the six months ended September 30, 2022, 102,750 shares of common stock were purchased under the ESPP. For the six months ended September 30, 2021, 100,309 shares of common stock were purchased under the ESPP. Stock-based compensation expense recognized related to the ESPP was $1.5 million and $1.0 million for the three months ended September 30, 2022 and 2021, respectively, and $2.8 million and $1.9 million for the six months ended September 30, 2022 and 2021, respectively. As of September 30, 2022, 3,384,792 shares of common stock were available for issuance under the ESPP. 2008 Equity Incentive Plan—The Company’s board of directors adopted, and the Company’s stockholders approved, the 2008 Equity Incentive Plan, or the 2008 Plan, in February 2008. The 2008 Plan was terminated in connection with the Company’s initial public offering (“IPO”), and accordingly, no shares are available for future issuance under this plan. The 2008 Plan continues to govern outstanding awards granted thereunder. 2014 Equity Incentive Plan—The Company’s board of directors adopted, and the Company’s stockholders approved, the Company’s 2014 Equity Incentive Plan (the “2014 Plan”), which became effective in December 2014. The 2014 Plan serves as the successor to the Company’s 2008 Plan. The 2014 Plan initially reserved and authorized the issuance of 5,000,000 shares of the Company’s common stock. Additionally, shares not issued or subject to outstanding grants under the 2008 Plan upon its termination became available under the 2014 Plan, resulting in a total of 5,184,878 available shares under the 2014 Plan as of the effective date of the 2014 Plan. Pursuant to the terms of the 2014 Plan, any shares subject to outstanding stock options or other stock awards under the 2008 Plan that (i) expire or terminate for any reason prior to exercise or settlement, (ii) are forfeited because of the failure to meet a contingency or condition required to vest such shares or otherwise return to the Company or (iii) are reacquired, withheld (or not issued) to satisfy a tax withholding obligation in connection with an award or to satisfy the purchase price or exercise price of a stock award will become available for issuance pursuant to awards granted under the 2014 Plan. The 2014 Plan provides that the number of shares reserved and available for issuance under the plan automatically increases each April 1, beginning on April 1, 2015, by 5% of the outstanding number of shares of the Company’s common stock shares issued and outstanding on the immediately preceding March 31, or such lesser number of shares as determined by the Company’s board of directors. As of September 30, 2022, there were 15,400,450 shares available for issuance under the 2014 Plan. The following table summarizes the Company’s stock option, restricted stock unit (“RSU”), and performance-based restricted stock unit (“PSU”) award activities for the six months ended September 30, 2022 (in thousands, except exercise price, contractual term and fair value information):
PSUs granted under the 2014 Plan are contingent upon the achievement of pre-determined market and service conditions. The number of shares of common stock to be issued at vesting will range from 0% to 200% of the target number based on the Company’s total shareholder return (“TSR”) relative to the performance of peer companies for each measurement period, over a one-year, two-year cumulative, and three-year cumulative period. If these market conditions are not met but service conditions are met, the PSUs will not vest; however, any stock-based compensation expense recognized to date will not be reversed. The Company uses a Monte Carlo simulation model to determine the fair value of its PSUs and recognizes expense using the accelerated attribution method over the requisite service period. The PSUs presented in the table above were calculated based on 100% expected achievement. Stock-Based Compensation Expense—Stock-based compensation expense for employees and nonemployees was $39.9 million and $37.6 million for the three months ended September 30, 2022 and 2021, respectively, and $74.7 million and $79.8 million for the six months ended September 30, 2022 and 2021, respectively. Cost of revenue, research and development, sales and marketing, and general and administrative expenses were as follows (in thousands):
(1) Includes $9.6 million acceleration of share-based payment expense for the six months ended September 30, 2021, for one of the Company’s executives due to his departure at the end of June 2021. There was no corresponding expense for the six months ended September 30, 2022. (2) Includes $0.5 million stock-based compensation expense for the six months ended September 30, 2021, due to the restructuring activities commenced in the first quarter of fiscal 2022. There was no corresponding expense for the six months ended September 30, 2022. Refer to Note 16 — Restructuring for more information. As of September 30, 2022, unrecognized stock-based compensation cost related to outstanding unvested stock options was $5.6 million, which is expected to be recognized over a weighted-average period of approximately 1.3 years. As of September 30, 2022, unrecognized stock-based compensation cost related to outstanding unvested RSUs was $268.0 million, which is expected to be recognized over a weighted-average period of approximately 2.4 years. As of September 30, 2022, unrecognized stock-based compensation cost related to PSUs was $20.0 million, which is expected to be recognized over a weighted-average period of approximately 2.0 years.
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Accounts Receivable, Deferred Revenue and Performance Obligations |
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| Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounts Receivable, Deferred Revenue and Performance Obligations | Contract Acquisition CostsThe Company capitalizes certain contract acquisition costs primarily consisting of commissions. The balances of deferred costs to obtain customer contracts were $24.3 million and $34.5 million as of September 30, 2022 and March 31, 2022, respectively. In the three months ended September 30, 2022 and 2021, amortization from amounts capitalized was $6.5 million and $9.6 million, respectively. In the six months ended September 30, 2022 and 2021, amortization from amounts capitalized was $13.7 million and $19.8 million, respectively. In the three months ended September 30, 2022 and 2021, amounts expensed as incurred were $14.0 million and $15.4 million, respectively. In the six months ended September 30, 2022 and 2021, amounts expensed as incurred were $28.5 million and $29.5 million, respectively. The Company had no impairment loss in relation to costs capitalized.Accounts Receivable, Deferred Revenue and Performance Obligations In a response to the COVID-19 pandemic, the Company performed additional procedures to evaluate the creditworthiness of its customers and assess collectability of accounts. Using a current expected credit loss model, the Company determined that, while there may be a delay in collections due to the downturn in economic activity, there has not been a material impact to the risk of credit loss on accounts receivables as of September 30, 2022. The Company receives payments from customers based upon billing cycles. As the Company performs under customer contracts, its right to consideration that is unconditional is considered to be accounts receivable. If the Company’s right to consideration for such performance is contingent upon a future event or satisfaction of additional performance obligations, the amount of revenues the Company has recognized in excess of the amount it has billed to the customer is considered to be a contract asset. Contract assets were $4.2 million and $1.5 million as of September 30, 2022 and March 31, 2022, respectively. Deferred revenue represents consideration received from customers in excess of revenues recognized. The following table presents the changes to the Company’s deferred revenue (in thousands):
For the three and six months ended September 30, 2022 and 2021, the majority of revenue recognized was from the deferred revenue balances at the beginning of each period. For the three and six months ended September 30, 2022, the Company recognized $7.9 million and $9.8 million, respectively, in revenue from performance obligations satisfied in prior periods. For the three and six months ended September 30, 2021, the Company recognized $9.7 million and $7.9 million, respectively, in revenue from performance obligations satisfied in prior periods. The aggregate unrecognized transaction price of remaining performance obligations as of September 30, 2022 and 2021 was $602.3 million and $597.2 million, respectively. The Company expects to recognize more than 95% of the balance as revenue in the 24 months following September 30, 2022 and the remainder thereafter. The aggregate balance of remaining performance obligations represents contracted revenue that has not yet been recognized and does not include contract amounts which are cancellable by the customer and amounts associated with optional renewal periods.
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Income Taxes |
6 Months Ended |
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Sep. 30, 2022 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes The Company is subject to income tax in the United States as well as other tax jurisdictions in which it conducts business. Earnings from non-U.S. activities are subject to local country income tax. The Company does not provide for federal income taxes on the undistributed earnings of its foreign subsidiaries as such earnings are indefinitely reinvested. The Company recorded income tax benefit of $0.4 million and income tax expense of $0.5 million for the three months ended September 30, 2022 and 2021, respectively. The Company recorded income tax benefit of $0.1 million and income tax expense of $0.1 million for the six months ended September 30, 2022 and 2021, respectively. The income tax benefit for the three and six months ended September 30, 2022 is primarily related to tax benefit from foreign R&D credits, partially offset by foreign and U.S. state taxes. The income tax expense for the six months ended September 30, 2021 is impacted by a partial release of valuation allowance from the acquisition of CodeStream. Based on the available evidence during the three and six months ended September 30, 2022, the Company believes it is not more-likely-than-not to realize tax benefits of U.S. and Japan losses incurred during the three and six months ended September 30, 2022. The primary difference between the effective tax rate and the statutory tax rate relates to the valuation allowance on the U.S. and Japan losses and foreign tax rate differences.
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Net Loss Per Share |
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| Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Loss Per Share | Net Loss Per Share Basic net loss per share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period, less shares subject to repurchase, and excludes any dilutive effects of employee share-based awards and warrants. Diluted net loss per share is computed giving effect to all potential dilutive common shares, including common stock issuable upon exercise of stock options and unvested restricted common stock. As the Company had net losses for each of the three and six months ended September 30, 2022 and 2021, all potential common shares were determined to be anti-dilutive, resulting in basic and diluted net loss per share being equal. Additionally, the 4.5 million shares underlying the Conversion Option in the Notes were not considered in the calculation of diluted net loss per share as the effect would be anti-dilutive. The Notes were not convertible as of September 30, 2022. The following table sets forth the computation of net loss per share, basic and diluted (in thousands, except per share amounts):
The following outstanding options, unvested shares, and ESPP shares were excluded (as common stock equivalents) from the computation of diluted net loss per common share for the periods presented as their effect would have been antidilutive (in thousands):
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Revenue by Geographic Location |
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| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue by Geographic Location | Revenue by Geographic Location The following table shows the Company’s revenue by geographic areas, as determined based on the billing address of its customers (in thousands):
Substantially all of the Company’s long-lived assets were attributable to operations in the United States as of September 30, 2022 and March 31, 2022.
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Restructuring |
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| Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring | Restructuring On August 17, 2022, the Company announced the adoption of a new restructuring plan to better align the Company’s organizational structure and operations with its strategic initiatives, resulting in a global workforce reduction and other cost saving initiatives. For the three months ended September 30, 2022, the Company recorded restructuring costs of approximately $7.2 million, comprised of $7.1 million in employee wages and termination benefits and $0.1 million associated with certain asset impairments directly attributable to the restructuring activities. The restructuring plan is expected to be substantially complete by the second quarter of fiscal 2023. There were no restructuring charges incurred for the three months ended September 30, 2021. For the six months ended September 30, 2021, the Company recorded restructuring costs of approximately $12.8 million, comprised of $12.6 million in employee wages and termination benefits, inclusive of $0.5 million in stock-based compensation and $0.1 million associated with certain asset impairments directly attributable to the restructuring activities. The fiscal 2021 restructuring plan was substantially complete by the first quarter of fiscal 2022. The following table shows the Company’s restructuring charges for the six months ended September 30, 2022 and 2021 (in thousands):
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Description of Business and Summary of Significant Accounting Policies (Policies) |
6 Months Ended |
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Sep. 30, 2022 | |
| Accounting Policies [Abstract] | |
| Description of Business | New Relic, Inc. (the “Company” or “New Relic”) was incorporated in Delaware on February 20, 2008, when it converted from a Delaware limited liability company called New Relic Software, LLC, which was formed in Delaware in September 2007. The Company delivers a software platform for customers to land all their telemetry data in one place and derive actionable insights from that data in a unified front-end application. The New Relic platform provides users with a consistent and comprehensive view of their digital environment allowing them to observe and operate all the components of their digital infrastructure. |
| Basis of Presentation | Basis of Presentation —These unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2022, as filed with the SEC on May 17, 2022 (the “Annual Report”). In the opinion of management, the unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, comprehensive loss, stockholders’ equity and cash flows for the interim period, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year ending March 31, 2023. The condensed consolidated balance sheet as of March 31, 2022 included herein was derived from the audited financial statements as of that date.
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| Use of Estimates and COVID-19 | Use of Estimates—The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Significant items subject to such estimates and assumptions include the fair value of share-based awards, fair value of purchased intangible assets and goodwill, variable consideration included in the transaction price for our customer contracts, useful lives of purchased intangible assets, unrecognized tax benefits, incremental borrowing rate used for operating lease liabilities, and the capitalization and estimated useful life of the Company’s software development costs. These estimates are based on information available as of the date of the consolidated financial statements; therefore, actual results could differ from management’s estimates. COVID-19—The COVID-19 pandemic has resulted in a global slowdown of economic activity that is expected to continue. The extent of any continuing impact to the Company’s financial condition or results of operations is uncertain, particularly as the COVID-19 pandemic continues to persist for an extended period of time.
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| Concentration of Risk | Concentration of Risk—There was no customer that represented more than 10% of the Company’s accounts receivable balance as of September 30, 2022 or March 31, 2022. There was no customer that individually exceeded 10% of the Company’s revenue during the three or six months ended September 30, 2022 or 2021. |
| Revenue Recognition | Revenue Recognition—The Company generates revenue from subscription-based arrangements and usage-based arrangements that allow customers to access its products and/or platform. The Company typically sells (1) a subscription agreement for a committed contractual amount that is apportioned ratably on a monthly basis over the term of the subscription period, which may or may not include a usage overage component, (2) a subscription agreement for a committed contractual amount where usage is drawn down as utilized, and (3) a usage-based arrangement that is billed based on usage (“Pay as You Go”). The Company determines revenue recognition through the following steps: •identification of the contract, or contracts with a customer; •identification of the performance obligations in the contract; •determination of the transaction price; •allocation of the transaction price to the performance obligations in the contract; and •recognition of revenue, when, or as, the Company satisfies a performance obligation. Depending on the nature of the contract, revenue from subscription-based arrangements is recognized on a ratable basis over the contractual subscription period of the arrangement or recognized as usage is incurred. Usage above the commitment is either recognized as incurred or as an estimate of usage above the minimum commitment. Usage above the minimum commitment is estimated by looking at usage in previous months and other factors and projecting out for the rest of the contract. The estimated usage-based revenues are constrained to the amount the Company expects to be entitled to receive in exchange for providing access to its platform.
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| Recently Issued Accounting Pronouncements Not Yet Adopted and Recently Adopted Accounting Pronouncements | Recently Issued Accounting Pronouncements Not Yet Adopted In October 2021, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2021-08, Business Combinations - Accounting for Contract Liabilities from Contracts with Customers (Topic 805), which requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities from acquired contracts using the revenue recognition guidance under ASC 606 as if the entity had originated the contracts. The guidance is effective for fiscal years beginning after April 1, 2023, including interim periods within those fiscal years. The Company is currently evaluating the impact of adopting this guidance. Recently Adopted Accounting Pronouncements In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt-Modifications and Extinguishments (Subtopic 470-50), Compensation-Stock Compensation (Topic 718), and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40). The new ASU addresses an issuer’s accounting for certain modifications or exchanges of freestanding equity-classified written call options. The Company adopted this new standard on April 1, 2022. The adoption of this standard did not have an impact on its condensed consolidated financial statements.
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Business Combinations (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Aggregate Purchase Price Allocation | The following table presents the preliminary purchase price allocation related to the acquisition (in thousands):
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Joint Venture (Tables) |
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Redeemable Non-Controlling Interest | The following table summarizes the activity in the redeemable non-controlling interest for the periods indicated below (in thousands):
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Fair Value Measurements (Tables) |
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Information about financial assets measured at fair value on recurring basis | The following tables present information about the Company’s financial assets measured at fair value on a recurring basis as of September 30, 2022 and March 31, 2022 based on the three-tier fair value hierarchy (in thousands):
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| Available-for-sale securities | The following table presents the Company’s available-for-sale securities as of September 30, 2022 (in thousands):
The following table presents the Company’s available-for-sale securities as of March 31, 2022 (in thousands):
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| Classification of available-for-sale short-term investments by contractual maturities | The following table classifies the Company’s available-for-sale short-term investments by contractual maturities as of September 30, 2022 and March 31, 2022 (in thousands):
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Property and Equipment (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Property and Equipment, Net | Property and equipment, net, consisted of the following (in thousands):
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0.5% Convertible Senior Notes and Capped Call (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Convertible Debt | The net carrying amount of the liability component of the Notes was as follows (in thousands):
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| Summary of Interest Expense | Interest expense related to the Notes was as follows (in thousands):
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Goodwill and Purchased Intangibles Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Goodwill | The changes in the carrying amount of goodwill for the six months ended September 30, 2022 consisted of the following (in thousands):
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| Schedule of Purchased Intangible Assets Subject to Amortization | Purchased intangible assets subject to amortization as of September 30, 2022 consisted of the following (in thousands):
Purchased intangible assets subject to amortization as of March 31, 2022 consisted of the following (in thousands):
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| Schedule of Estimated Future Amortization Expense | Estimated future amortization expense as of September 30, 2022 was as follows (in thousands):
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Leases (Tables) |
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Condensed Consolidated Balance Sheet | The following table presents information about leases on the condensed consolidated balance sheet (in thousands):
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| Schedule of Condensed Consolidated Statement of Operations and Supplemental Cash Flow Information | The following table presents information about leases on its condensed consolidated statement of operations (in thousands):
The following table presents supplemental cash flow information about the Company’s leases (in thousands):
(1) Includes the impact of new leases as well as remeasurements and modifications to existing leases.
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| Remaining Maturities of Lease Liabilities | As of September 30, 2022, remaining maturities of lease liabilities were as follows (in thousands):
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Common Stock and Stockholders' Equity (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Stock Option and RSU and PSU Award Activities | The following table summarizes the Company’s stock option, restricted stock unit (“RSU”), and performance-based restricted stock unit (“PSU”) award activities for the six months ended September 30, 2022 (in thousands, except exercise price, contractual term and fair value information):
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| Schedule of Stock-based Compensation Expense Attributed to Cost of Revenue, Research and Development, Sales and Marketing and General and Administrative Expenses | Cost of revenue, research and development, sales and marketing, and general and administrative expenses were as follows (in thousands):
(1) Includes $9.6 million acceleration of share-based payment expense for the six months ended September 30, 2021, for one of the Company’s executives due to his departure at the end of June 2021. There was no corresponding expense for the six months ended September 30, 2022. (2) Includes $0.5 million stock-based compensation expense for the six months ended September 30, 2021, due to the restructuring activities commenced in the first quarter of fiscal 2022. There was no corresponding expense for the six months ended September 30, 2022. Refer to Note 16 — Restructuring for more information.
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Accounts Receivable, Deferred Revenue and Performance Obligations (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Contract with Customer, Contract Asset, Contract Liability, and Receivable | The following table presents the changes to the Company’s deferred revenue (in thousands):
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Net Loss Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Computation of Net Loss Per Share, Basic and Diluted | The following table sets forth the computation of net loss per share, basic and diluted (in thousands, except per share amounts):
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| Antidilutive Securities Excluded from Computation of Diluted Net Loss per Common Share of Common Stock Equivalents | The following outstanding options, unvested shares, and ESPP shares were excluded (as common stock equivalents) from the computation of diluted net loss per common share for the periods presented as their effect would have been antidilutive (in thousands):
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Revenue by Geographic Location (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Revenue by Geographic Areas | The following table shows the Company’s revenue by geographic areas, as determined based on the billing address of its customers (in thousands):
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Restructuring (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Restructuring Charges | The following table shows the Company’s restructuring charges for the six months ended September 30, 2022 and 2021 (in thousands):
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Business Combinations - Schedule of Aggregate Purchase Price Allocation (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
|---|---|---|---|
Sep. 14, 2022 |
Sep. 30, 2022 |
Mar. 31, 2022 |
|
| Business Acquisition [Line Items] | |||
| Goodwill | $ 172,298 | $ 163,677 | |
| K2 Cyber Security Inc. | |||
| Business Acquisition [Line Items] | |||
| Cash consideration | $ 4,497 | ||
| Fair value of common shares | 16,132 | ||
| Total consideration | 20,629 | ||
| Post-business combination compensation expense | (4,019) | $ (900) | |
| Total purchase price | 16,610 | ||
| Net assets assumed | (589) | ||
| Developed technology acquired | (7,400) | ||
| Goodwill | $ 8,621 |
Joint Venture - Narrative (Details) $ in Thousands, ¥ in Millions |
6 Months Ended | ||||||
|---|---|---|---|---|---|---|---|
|
Aug. 21, 2019
USD ($)
|
Aug. 21, 2019
JPY (¥)
|
Aug. 21, 2018
USD ($)
|
Aug. 21, 2018
JPY (¥)
|
Sep. 30, 2022
USD ($)
|
Sep. 30, 2021
USD ($)
|
Aug. 21, 2019
JPY (¥)
|
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| Schedule of Equity Method Investments [Line Items] | |||||||
| Additional investor contribution | $ 1,500 | ¥ 156 | |||||
| Adjustment to redeemable non-controlling interest | $ (2,670) | $ 10,235 | |||||
| New Relic K.K | |||||||
| Schedule of Equity Method Investments [Line Items] | |||||||
| Ownership percentage, parent | 60.00% | ||||||
| The Investors | |||||||
| Schedule of Equity Method Investments [Line Items] | |||||||
| Contributions for joint venture | $ 1,000 | ¥ 104 | $ 3,600 | ¥ 396 | |||
| The Investors | New Relic K.K | |||||||
| Schedule of Equity Method Investments [Line Items] | |||||||
| Ownership percentage, noncontrolling interest | 40.00% | 40.00% | |||||
Joint Venture - Schedule of Redeemable Non-Controlling Interest (Details) - USD ($) $ in Thousands |
6 Months Ended | |
|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
|
| Increase (Decrease) in Temporary Equity [Roll Forward] | ||
| Balance, beginning of period | $ 21,686 | $ 3,389 |
| Net loss attributable to redeemable non-controlling interest | (74) | (181) |
| Adjustment to redeemable non-controlling interest | (2,670) | 10,235 |
| Balance, end of period | $ 18,942 | $ 13,443 |
Fair Value Measurements - Debt Securities, Available-for-sale (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Mar. 31, 2022 |
|---|---|---|
| Debt Securities, Available-for-sale [Line Items] | ||
| Amortized Cost | $ 372,389 | $ 566,289 |
| Unrealized Gains | 0 | 79 |
| Unrealized Losses | (10,125) | (6,384) |
| Total | 362,264 | 559,984 |
| Certificates of deposit | ||
| Debt Securities, Available-for-sale [Line Items] | ||
| Amortized Cost | 52,000 | 127,500 |
| Unrealized Gains | 0 | 0 |
| Unrealized Losses | (354) | (615) |
| Total | 51,646 | 126,885 |
| Commercial paper | ||
| Debt Securities, Available-for-sale [Line Items] | ||
| Amortized Cost | 2,953 | 27,946 |
| Unrealized Gains | 0 | 0 |
| Unrealized Losses | (27) | (85) |
| Total | 2,926 | 27,861 |
| Corporate notes and bonds | ||
| Debt Securities, Available-for-sale [Line Items] | ||
| Amortized Cost | 86,193 | 87,259 |
| Unrealized Gains | 0 | 0 |
| Unrealized Losses | (3,458) | (2,194) |
| Total | 82,735 | 85,065 |
| U.S. treasury securities | ||
| Debt Securities, Available-for-sale [Line Items] | ||
| Amortized Cost | 231,243 | 323,584 |
| Unrealized Gains | 0 | 79 |
| Unrealized Losses | (6,286) | (3,490) |
| Total | $ 224,957 | $ 320,173 |
Fair Value Measurements - Classification of available-for-sale short-term investments by contractual maturities (Detail) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Mar. 31, 2022 |
|---|---|---|
| Debt Securities, Available-for-sale [Line Items] | ||
| Total | $ 362,264 | $ 559,984 |
| Short-term investments: | ||
| Debt Securities, Available-for-sale [Line Items] | ||
| Due within one year | 230,113 | 354,774 |
| Due after one year and within three years | 132,151 | 205,210 |
| Total | $ 362,264 | $ 559,984 |
Fair Value Measurements - Narrative (Detail) - USD ($) $ in Millions |
Sep. 30, 2022 |
Mar. 31, 2022 |
|---|---|---|
| Debt Instrument [Line Items] | ||
| Unrealized loss position of securities for more than 12 months | $ 5.3 | $ 1.3 |
| Convertible Debt | Level 2 | Convertible Senior Notes Due 2023 | ||
| Debt Instrument [Line Items] | ||
| Fair value of Notes | $ 443.5 |
Contract Acquisition Costs (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||
|---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Mar. 31, 2022 |
|
| Revenue from Contract with Customer [Abstract] | |||||
| Capitalized contract cost | $ 24,300,000 | $ 24,300,000 | $ 34,500,000 | ||
| Capitalized contract cost, amortization | 6,500,000 | $ 9,600,000 | 13,700,000 | $ 19,800,000 | |
| Costs expensed as incurred | 14,000,000 | 15,400,000 | 28,500,000 | 29,500,000 | |
| Contract asset impairment | $ 0 | $ 0 | $ 0 | $ 0 | |
Property and Equipment - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Mar. 31, 2022 |
|---|---|---|
| Property, Plant and Equipment [Line Items] | ||
| Total property and equipment | $ 204,561 | $ 216,916 |
| Less: accumulated depreciation and amortization | (142,378) | (148,548) |
| Total property and equipment, net | 62,183 | 68,368 |
| Computers, software, and equipment | ||
| Property, Plant and Equipment [Line Items] | ||
| Total property and equipment | 14,825 | 13,854 |
| Site operation equipment | ||
| Property, Plant and Equipment [Line Items] | ||
| Total property and equipment | 58,310 | 67,726 |
| Furniture and fixtures | ||
| Property, Plant and Equipment [Line Items] | ||
| Total property and equipment | 5,082 | 5,772 |
| Leasehold improvements | ||
| Property, Plant and Equipment [Line Items] | ||
| Total property and equipment | 38,958 | 49,756 |
| Capitalized software development costs | ||
| Property, Plant and Equipment [Line Items] | ||
| Total property and equipment | $ 87,386 | $ 79,808 |
Property and Equipment - Narrative (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
| Property, Plant and Equipment [Abstract] | ||||
| Depreciation and amortization expense | $ 7.3 | $ 10.8 | $ 15.2 | $ 21.6 |
0.5% Convertible Senior Notes and Capped Call - Schedule of Liability Component of Convertible Debt (Details) - Convertible Senior Notes Due 2023 - Convertible Debt - USD ($) $ in Thousands |
Sep. 30, 2022 |
Mar. 31, 2022 |
May 31, 2018 |
|---|---|---|---|
| Debt Instrument [Line Items] | |||
| Principal | $ 500,250 | $ 500,250 | |
| Unamortized issuance costs | (1,399) | (2,587) | $ (11,600) |
| Net carrying amount | $ 498,851 | $ 497,663 |
0.5% Convertible Senior Notes and Capped Call - Schedule of Interest Expense (Details) - Convertible Debt - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
| Debt Instrument [Line Items] | ||||
| Total interest expense | $ 2,435 | $ 2,424 | ||
| Convertible Senior Notes Due 2023 | ||||
| Debt Instrument [Line Items] | ||||
| Amortization of issuance costs | $ 595 | $ 589 | 1,188 | 1,176 |
| Contractual interest expense | 623 | 623 | $ 1,247 | $ 1,248 |
| Total interest expense | $ 1,218 | $ 1,212 | ||
Goodwill and Purchased Intangibles Assets - Narrative (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
|---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 14, 2022 |
|
| Acquired Finite-Lived Intangible Assets [Line Items] | |||||
| Amortization expense | $ 2,300 | $ 1,700 | $ 4,600 | $ 3,400 | |
| K2 Cyber Security Inc. | |||||
| Acquired Finite-Lived Intangible Assets [Line Items] | |||||
| Developed technology acquired | $ 7,400 | ||||
| Goodwill acquired | $ 8,600 | ||||
Goodwill and Purchased Intangibles Assets - Schedule of Goodwill (Details) $ in Thousands |
6 Months Ended |
|---|---|
|
Sep. 30, 2022
USD ($)
| |
| Goodwill [Roll Forward] | |
| Goodwill as of March 31, 2022 | $ 163,677 |
| Goodwill acquired | 8,621 |
| Goodwill as of September 30, 2022 | $ 172,298 |
Goodwill and Purchased Intangibles Assets - Schedule of Purchased Intangible Assets Subject to Amortization (Detail) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Mar. 31, 2022 |
|---|---|---|
| Acquired Finite-Lived Intangible Assets [Line Items] | ||
| Net Carrying Amount | $ 18,453 | $ 15,636 |
| Developed technology | ||
| Acquired Finite-Lived Intangible Assets [Line Items] | ||
| Gross Carrying Amount | 34,900 | 27,500 |
| Accumulated Amortization | (16,447) | (11,864) |
| Net Carrying Amount | $ 18,453 | $ 15,636 |
Goodwill and Purchased Intangibles Assets - Schedule of Estimated Future Amortization Expense (Detail) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Mar. 31, 2022 |
|---|---|---|
| Goodwill and Intangible Assets Disclosure [Abstract] | ||
| 2023 (remaining six months) | $ 5,650 | |
| 2024 | 7,100 | |
| 2025 | 4,470 | |
| Thereafter | 1,233 | |
| Net Carrying Amount | $ 18,453 | $ 15,636 |
Leases - Assets and Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Mar. 31, 2022 |
|---|---|---|
| Assets | ||
| Lease right-of-use assets | $ 44,599 | $ 50,465 |
| Liabilities | ||
| Lease liabilities | 11,025 | 11,103 |
| Lease liabilities, non-current | 42,842 | 49,809 |
| Total operating lease liabilities | $ 53,867 | $ 60,912 |
Leases - Narrative (Details) $ in Millions |
3 Months Ended |
|---|---|
|
Sep. 30, 2022
USD ($)
| |
| Leases [Abstract] | |
| Lease hold improvements write-off | $ 1.5 |
| Acceleration of right of use assets | $ 1.2 |
| Weighted average remaining lease term | 4 years 10 months 24 days |
| Weighted average discount rate | 6.90% |
Leases - Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
| Leases [Abstract] | ||||
| Operating lease expense | $ 3,360 | $ 3,481 | $ 6,873 | $ 6,954 |
| Short-term lease expense | 205 | 153 | 451 | 303 |
| Variable lease expense | $ 854 | $ 731 | $ 1,498 | $ 1,363 |
Leases - Cash Flow Information (Details) - USD ($) $ in Thousands |
6 Months Ended | |
|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
|
| Leases [Abstract] | ||
| Cash paid for amounts included in the measurement of lease liabilities | $ 7,359 | $ 7,567 |
| Operating lease assets obtained in exchange for new lease liabilities | $ 245 | $ 319 |
Leases - Operating Lease Maturity Schedule (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Mar. 31, 2022 |
|---|---|---|
| Leases [Abstract] | ||
| 2023 (remaining six months) | $ 7,012 | |
| 2024 | 13,658 | |
| 2025 | 11,315 | |
| 2026 | 11,528 | |
| 2027 | 12,081 | |
| 2028 | 6,185 | |
| Thereafter | 2,014 | |
| Total operating lease payments | 63,793 | |
| Less imputed interest | (9,926) | |
| Total operating lease liabilities | $ 53,867 | $ 60,912 |
Commitments and Contingencies (Detail) - USD ($) $ in Millions |
Sep. 30, 2022 |
Mar. 31, 2022 |
|---|---|---|
| Commitments and Contingencies Disclosure [Abstract] | ||
| Purchase commitments | $ 567.4 | $ 549.4 |
Accounts Receivable, Deferred Revenue and Performance Obligations - Narrative (Details) - USD ($) $ in Millions |
6 Months Ended | 12 Months Ended |
|---|---|---|
Sep. 30, 2022 |
Mar. 31, 2022 |
|
| Revenue from Contract with Customer [Abstract] | ||
| Contract assets | $ 4.2 | $ 1.5 |
Accounts Receivable, Deferred Revenue and Performance Obligations - Schedule of Deferred Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
| Contract With Customer, Liability [Roll Forward] | ||||
| Deferred revenue, beginning of period | $ 332,956 | $ 317,502 | $ 398,862 | $ 375,268 |
| Contributions from contract asset | 565 | 99 | 1,699 | 1,640 |
| Billings | 178,677 | 150,339 | 328,096 | 271,516 |
| Revenue recognized | (226,912) | (195,694) | (443,371) | (376,178) |
| Deferred revenue, end of period | $ 285,286 | $ 272,246 | $ 285,286 | $ 272,246 |
Income Taxes (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
| Income Tax Disclosure [Abstract] | ||||
| Income tax provision (benefit) | $ (381) | $ 506 | $ (114) | $ 53 |
Net Loss Per Share - Narrative (Details) - shares shares in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
| Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
| Antidilutive securities excluded from computation of diluted net loss per common share (in shares) | 6,022 | 6,487 | ||
| Convertible Debt Securities | ||||
| Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
| Antidilutive securities excluded from computation of diluted net loss per common share (in shares) | 4,500 | 4,500 | ||
Net Loss Per Share - Computation of Net Loss Per Share, Basic and Diluted (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
| Numerator: | ||||
| Net loss attributable to New Relic | $ (46,775) | $ (53,769) | $ (97,014) | $ (132,183) |
| Denominator: | ||||
| Weighted-average shares used to compute net loss per share, basic (in shares) | 67,207 | 64,277 | 66,816 | 63,811 |
| Weighted-average shares used to compute net loss per share, diluted (in shares) | 67,207 | 64,277 | 66,816 | 63,811 |
| Net loss attributable to New Relic per share, basic (in usd per share) | $ (0.70) | $ (0.84) | $ (1.45) | $ (2.07) |
| Net loss attributable to New Relic per share, diluted (in usd per share) | $ (0.70) | $ (0.84) | $ (1.45) | $ (2.07) |
Revenue by Geographic Location - Schedule of Revenue by Geographic Areas (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
| Segment Reporting Information [Line Items] | ||||
| Revenue | $ 226,912 | $ 195,694 | $ 443,371 | $ 376,178 |
| United States | ||||
| Segment Reporting Information [Line Items] | ||||
| Revenue | 147,713 | 133,405 | 291,173 | 256,440 |
| EMEA | ||||
| Segment Reporting Information [Line Items] | ||||
| Revenue | 38,296 | 30,041 | 73,012 | 58,206 |
| APAC | ||||
| Segment Reporting Information [Line Items] | ||||
| Revenue | 24,528 | 19,305 | 47,654 | 36,498 |
| Other | ||||
| Segment Reporting Information [Line Items] | ||||
| Revenue | $ 16,375 | $ 12,943 | $ 31,532 | $ 25,034 |
Restructuring - Narrative (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |
|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
| Restructuring Cost and Reserve [Line Items] | |||
| Restructuring charges | $ 7,200,000 | $ 7,210,000 | $ 12,763,000 |
| Employee wages and termination benefits | |||
| Restructuring Cost and Reserve [Line Items] | |||
| Restructuring charges | 7,100,000 | 12,600,000 | |
| Asset impairment | |||
| Restructuring Cost and Reserve [Line Items] | |||
| Restructuring charges | $ 100,000 | 75,000 | 130,000 |
| Stock-based compensation | |||
| Restructuring Cost and Reserve [Line Items] | |||
| Restructuring charges | $ 0 | $ 493,000 | |
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