DOXIMITY, INC., 10-K filed on 5/23/2024
Annual Report
v3.24.1.1.u2
Cover Page - USD ($)
$ in Millions
 12 Months Ended
Mar. 31, 2024
May 16, 2024
Sep. 30, 2023
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Mar. 31, 2024    
Current Fiscal Year End Date --03-31    
Document Transition Report false    
Entity File Number 001-40508    
Entity Registrant Name Doximity, Inc.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 27-2485512    
Entity Address, Address Line One 500 3rd St.    
Entity Address, Address Line Two Suite 510    
Entity Address, City or Town San Francisco    
Entity Address, State or Province CA    
Entity Address, Postal Zip Code 94107    
City Area Code (650)    
Local Phone Number 549-4330    
Title of 12(b) Security Class A common stock, $0.001 par value per share    
Trading Symbol DOCS    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 2,560
Documents Incorporated by Reference Portions of the registrant’s Definitive Proxy Statement relating to the 2024 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. Such Definitive Proxy Statement will be filed with the Securities and Exchange Commission within 120 days after the end of the registrant’s fiscal year ended March 31, 2024.    
Entity Central Index Key 0001516513    
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus FY    
Amendment Flag false    
Common Class A      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   122,999,951  
Common Class B      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   62,425,902  
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Audit Information
 12 Months Ended
Mar. 31, 2024
Audit Information [Abstract]  
Auditor Name Deloitte & Touche LLP
Auditor Location San Francisco, California
Auditor Firm ID 34
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CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Mar. 31, 2024
Mar. 31, 2023
Current assets:    
Cash and cash equivalents $ 96,785 $ 158,027
Marketable securities 666,115 682,972
Accounts receivable, net of allowance for doubtful accounts of $1,893 and $887 as of March 31, 2024 and 2023, respectively 101,332 107,047
Prepaid expenses and other current assets 48,709 27,407
Total current assets 912,941 975,453
Property and equipment, net 12,318 11,279
Deferred income tax assets 45,068 34,907
Operating lease right-of-use assets 12,332 13,819
Intangible assets, net 27,317 31,836
Goodwill 67,940 67,940
Other assets 1,458 1,654
Total assets 1,079,374 1,136,888
Current liabilities:    
Accounts payable 2,253 1,272
Accrued expenses and other current liabilities 43,703 31,245
Deferred revenue, current 99,145 105,238
Operating lease liabilities, current 2,149 1,752
Total current liabilities 147,250 139,507
Deferred revenue, non-current 211 198
Operating lease liabilities, non-current 12,397 13,885
Contingent earn-out consideration liability, non-current 10,895 15,942
Other liabilities, non-current 7,224 1,240
Total liabilities 177,977 170,772
Commitments and contingencies (Note 15)
Stockholders’ Equity    
Preferred stock, $0.001 par value; 100,000 shares authorized as of March 31, 2024 and 2023, respectively; zero shares issued and outstanding as of March 31, 2024 and 2023, respectively 0 0
Class A and Class B common stock, $0.001 par value; 1,500,000 shares authorized as of March 31, 2024 and 2023, respectively; 186,562 and 193,941 shares issued and outstanding as of March 31, 2024 and 2023, respectively 187 194
Additional paid-in capital 823,885 762,150
Accumulated other comprehensive loss (2,664) (14,083)
Retained earnings 79,989 217,855
Total stockholders' equity 901,397 966,116
Total liabilities and stockholders’ equity $ 1,079,374 $ 1,136,888
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CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Mar. 31, 2024
Mar. 31, 2023
Statement of Financial Position [Abstract]    
Accounts receivable, allowance for doubtful accounts $ 1,893 $ 887
Preferred stock, par value (in dollars per share) $ 0.001 $ 0.001
Preferred stock, authorized (in shares) 100,000,000 100,000,000
Preferred stock, issued (in shares) 0 0
Preferred stock, outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, authorized (in shares) 1,500,000,000 1,500,000,000
Common stock, issued (in shares) 186,562,000 193,941,000
Common stock, outstanding (in shares) 186,562,000 193,941,000
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CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Income Statement [Abstract]      
Revenue $ 475,422 $ 419,052 $ 343,548
Cost of revenue 50,669 53,490 39,787
Gross profit 424,753 365,562 303,761
Operating expenses:      
Research and development 81,983 80,186 62,350
Sales and marketing 133,129 123,523 92,129
General and administrative 37,827 36,745 35,746
Restructuring 7,936 0 0
Total operating expenses 260,875 240,454 190,225
Income from operations 163,878 125,108 113,536
Other income, net 21,324 8,048 469
Income before income taxes 185,202 133,156 114,005
Provision for (benefit from) income taxes 37,620 20,338 (40,778)
Net income 147,582 112,818 154,783
Undistributed earnings attributable to participating securities, basic 0 0 (21,526)
Undistributed earnings attributable to participating securities, diluted 0 0 (21,526)
Net income attributable to Class A and Class B common stockholders, basic 147,582 112,818 133,257
Net income attributable to Class A and Class B common stockholders, diluted $ 147,582 $ 112,818 $ 133,257
Net income per share attributable to Class A and Class B common stockholders:      
Basic (in dollars per share) $ 0.78 $ 0.58 $ 0.82
Diluted (in dollars per share) $ 0.72 $ 0.53 $ 0.70
Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders:      
Basic (in shares) 190,172 193,176 163,484
Diluted (in shares) 205,734 213,425 191,017
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Statement of Comprehensive Income [Abstract]      
Net income $ 147,582 $ 112,818 $ 154,783
Other comprehensive income (loss)      
Change in unrealized gain (loss) on available-for-sale-securities, net of tax benefit (provision) of $(3,874), $(425), and $5,199, respectively 11,419 1,211 (15,273)
Comprehensive income $ 159,001 $ 114,029 $ 139,510
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($)
$ in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Statement of Comprehensive Income [Abstract]      
Change in unrealized gain (loss) on available-for-sale-securities, tax benefit (provision) $ (3,874) $ (425) $ 5,199
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CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-In Capital
Accumulated Other Comprehensive Loss
Retained Earnings
Beginning balance (in shares) at Mar. 31, 2021 76,287,000        
Beginning balance at Mar. 31, 2021 $ 81,458        
Increase (Decrease) in Temporary Equity [Roll Forward]          
Conversion of redeemable convertible preferred stock upon initial public offering (in shares) (76,287,000)        
Conversion of redeemable convertible preferred stock upon initial public offering $ (81,458)        
Ending balance (in shares) at Mar. 31, 2022 0        
Ending balance at Mar. 31, 2022 $ 0        
Beginning balance (in shares) at Mar. 31, 2021   82,910,000      
Beginning balance at Mar. 31, 2021 66,743 $ 83 $ 30,357 $ (21) $ 36,324
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Stock-based compensation 29,341   29,341    
Exercise of stock options (in shares)   10,823,000      
Exercise of stock options and common stock warrants 12,612 $ 11 12,601    
Vesting of restricted stock units (in shares)   24,000      
Tax withholding on shares under stock-based compensation awards (817)   (817)    
Repurchase and retirement of common stock (in shares)   (181,000)      
Repurchase and retirement of common stock (2,698)   (2,698)    
Common stock warrant expense 2,598   2,598    
Other comprehensive income (loss) (15,273)     (15,273)  
Conversion of redeemable convertible preferred stock upon initial public offering (in shares)   76,287,000      
Conversion of redeemable convertible preferred stock upon initial public offering 81,458 $ 76 81,382    
Issuance of common stock upon initial public offering, net of offering costs (in shares)   22,506,000      
Issuance of common stock upon initial public offering, net of offering costs 548,452 $ 22 548,430    
Issuance of common stock in connection with the employee stock purchase plan (in shares)   29,000      
Issuance of common stock in connection with the employee stock purchase plan 1,395   1,395    
Net income 154,783       154,783
Ending balance (in shares) at Mar. 31, 2022   192,398,000      
Ending balance at Mar. 31, 2022 $ 878,594 $ 192 702,589 (15,294) 191,107
Ending balance (in shares) at Mar. 31, 2023 0        
Ending balance at Mar. 31, 2023 $ 0        
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Stock-based compensation 43,343   43,343    
Exercise of stock options and common stock warrants (in shares)   3,842,000      
Exercise of stock options and common stock warrants 9,929 $ 4 9,925    
Vesting of restricted stock units (in shares)   223,000      
Tax withholding on shares under stock-based compensation awards (3,822)   (3,822)    
Repurchase and retirement of common stock (in shares)   (2,675,000)      
Repurchase and retirement of common stock (86,072) $ (2)     (86,070)
Common stock warrant expense 5,356   5,356    
Other comprehensive income (loss) 1,211     1,211  
Issuance of common stock in connection with the employee stock purchase plan (in shares)   153,000      
Issuance of common stock in connection with the employee stock purchase plan 4,759   4,759    
Net income 112,818       112,818
Ending balance (in shares) at Mar. 31, 2023   193,941,000      
Ending balance at Mar. 31, 2023 $ 966,116 $ 194 762,150 (14,083) 217,855
Ending balance (in shares) at Mar. 31, 2024 0        
Ending balance at Mar. 31, 2024 $ 0        
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Stock-based compensation $ 46,788   46,788    
Exercise of stock options (in shares) 4,019,000        
Exercise of stock options and common stock warrants (in shares)   4,144,000      
Exercise of stock options and common stock warrants $ 12,892 $ 4 12,888    
Vesting of restricted stock units (in shares)   532,000      
Vesting of restricted stock units, net of shares withheld for employee taxes 0 $ 1 (1)    
Tax withholding on shares under stock-based compensation awards (6,756)   (6,756)    
Repurchase and retirement of common stock (in shares)   (12,235,000)      
Repurchase and retirement of common stock (285,460) $ (12)     (285,448)
Common stock warrant expense 5,370   5,370    
Other comprehensive income (loss) 11,419     11,419  
Issuance of common stock in connection with the employee stock purchase plan (in shares)   180,000      
Issuance of common stock in connection with the employee stock purchase plan 3,446   3,446    
Net income 147,582       147,582
Ending balance (in shares) at Mar. 31, 2024   186,562,000      
Ending balance at Mar. 31, 2024 $ 901,397 $ 187 $ 823,885 $ (2,664) $ 79,989
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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Cash flows from operating activities      
Net income $ 147,582 $ 112,818 $ 154,783
Adjustments to reconcile net income to net cash provided by operating activities      
Depreciation and amortization 10,265 10,283 5,040
Deferred income taxes (8,593) 13,226 (41,247)
Stock-based compensation, net of amounts capitalized 51,076 47,834 31,442
Non-cash lease expense 2,074 2,027 1,159
Amortization of premium (accretion of discount) on marketable securities, net (5,238) 3,115 4,332
Net loss on sale of marketable securities 402 1,093 1,231
Amortization of deferred contract costs 8,871 8,785 9,755
Change in fair value of contingent earn-out consideration liability 951 728 0
Other 1,230 726 410
Changes in operating assets and liabilities, net of effect of acquisition:      
Accounts receivable 3,993 (26,242) (31,017)
Prepaid expenses and other assets (20,483) (3,448) (9,089)
Deferred contract costs (8,608) (8,462) (9,609)
Accounts payable, accrued expenses and other liabilities 8,332 (195) 8,664
Deferred revenue (6,080) 17,527 1,828
Operating lease liabilities (1,678) (213) (1,107)
Net cash provided by operating activities 184,096 179,602 126,575
Cash flows from investing activities      
Cash paid for acquisition 0 (53,500) 0
Purchases of property and equipment (147) (1,701) (1,912)
Internal-use software development costs (5,654) (4,483) (3,785)
Purchases of marketable securities (472,867) (190,560) (1,317,193)
Maturities of marketable securities 435,179 83,139 47,919
Sales of marketable securities 74,675 107,182 633,802
Other 0 0 595
Net cash provided by (used in) investing activities 31,186 (59,923) (640,574)
Cash flows from financing activities      
Proceeds from issuance of common stock upon initial public offering after deducting underwriting discounts and commissions 0 0 553,905
Proceeds from issuance of common stock upon exercise of stock options and common stock warrants 12,892 9,926 12,612
Proceeds from issuance of common stock in connection with the employee stock purchase plan 3,446 4,759 1,395
Taxes paid related to net share settlement of equity awards (6,756) (3,822) (817)
Repurchase of common stock (280,716) (85,324) (2,698)
Payment of contingent consideration related to a business combination (5,390) 0 0
Payments of deferred offering costs 0 0 (3,982)
Net cash provided by (used in) financing activities (276,524) (74,461) 560,415
Net increase (decrease) in cash and cash equivalents (61,242) 45,218 46,416
Cash and cash equivalents, beginning of period 158,027 112,809 66,393
Cash and cash equivalents, end of period 96,785 158,027 112,809
Supplemental disclosures of cash flow information      
Cash paid for taxes, net of refunds 51,274 5,231 206
Non-cash financing and investing activities      
Conversion of redeemable convertible preferred stock to common stock 0 0 81,458
Fair value of contingent earn-out consideration included in purchase consideration 0 21,134 0
Operating lease right-of-use assets obtained in exchange for operating lease liabilities 587 14,759 1,151
Repurchase included in accrued expenses 4,000 748 0
Excise tax payable on share repurchases $ 1,493 $ 0 $ 0
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Description of Business
 12 Months Ended
Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business Description of Business
Description of Business
Doximity, Inc. (the “Company”) was incorporated in the state of Delaware in April 2010 as 3MD Communications, Inc. and is headquartered in San Francisco, California. The Company subsequently changed its name to Doximity, Inc. in June 2010. The Company provides an online platform, which enables physicians and other healthcare professionals to collaborate with their colleagues, stay up to date with the latest medical news and research, manage their careers and on-call schedules, streamline documentation and administrative paperwork, and conduct virtual patient visits. The Company’s customers primarily include pharmaceutical companies and health systems that connect with healthcare professionals through the Company’s digital Marketing and Hiring Solutions. Marketing Solutions provide customers with the ability to share tailored content on the network. Hiring Solutions enable customers to identify, connect with, and hire from the network of both active and passive potential medical professional candidates.
Initial Public Offering
In June 2021, the Company completed its initial public offering (“IPO”), in which the Company issued and sold 22,505,750 shares of its Class A common stock at $26.00 per share, including 3,495,000 shares issued upon the exercise of the underwriters’ option to purchase additional shares. The Company received proceeds of $548.5 million after deducting underwriting discounts and commissions as well as deferred offering costs. In connection with the IPO, all 76,286,618 shares of the Company’s outstanding redeemable convertible preferred stock automatically converted into an equivalent number of shares of Class B common stock on a one-to-one basis.
Deferred offering costs, which consist of direct incremental legal, consulting, banking, and accounting fees relating to the Company’s planned initial public offering, were capitalized. Upon the consummation of the IPO, $5.5 million of deferred offering costs were offset against proceeds.
Stock Split
On June 8, 2021, the Company’s board of directors and stockholders approved an amendment to the Company’s amended and restated certificate of incorporation effecting a 2-for-1 forward split of the Company’s issued and outstanding stock, including outstanding stock-based instruments and redeemable convertible preferred stock. The par value of the common and redeemable convertible preferred stock was not adjusted as a result of the stock split. As such, the Company has reclassified amounts from additional paid-in capital to common stock. All issued and outstanding shares of common stock, stock-based instruments, redeemable convertible preferred stock, and per-share amounts included in the accompanying consolidated financial statements have been adjusted to reflect this stock split for all periods presented.
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Summary of Significant Accounting Policies
 12 Months Ended
Mar. 31, 2024
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Basis of Presentation and Principles of Consolidation
The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America, or U.S. GAAP.
The accompanying consolidated financial statements include the accounts of the Company and its consolidated subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.
Fiscal Year
The Company’s fiscal year ends on March 31st. Unless otherwise noted, all references to a particular year shall mean the Company’s fiscal year.
Use of Estimates
The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts stated in the consolidated financial statements and accompanying notes. These judgments, estimates, and assumptions are used for, but not limited to, revenue recognition, the fair values of acquired intangible assets and goodwill, the useful lives of long-lived assets, fair value of contingent earn-out consideration, and deferred income taxes. The Company bases its estimates on historical experience and on assumptions that management
considers reasonable. The Company assesses these estimates on a regular basis; however, actual results could differ from these estimates due to risks and uncertainties, including uncertainty in the current economic environment.
Concentrations of Credit Risk
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, and accounts receivable. The primary focus of the Company’s investment strategy is to preserve capital and meet liquidity requirements. The Company’s investment policy addresses the level of credit exposure by limiting the concentration in any one corporate issuer or sector and establishing a minimum allowable credit rating. To manage risk exposure, the Company invests cash equivalents and marketable securities in a variety of fixed income securities, including government and investment-grade debt securities and money market funds. The Company places its cash primarily in checking and money market accounts with reputable financial institutions. Deposits held with these financial institutions may exceed the amount of insurance provided on such deposits, if any.
Concentrations of credit risk with respect to accounts receivable are primarily limited to certain customers to which the Company makes substantial sales. No customer represented 10% or more of revenue for the fiscal years ended 2024, 2023, and 2022. The Company’s significant customers that represented 10% or more of accounts receivable, net for the periods presented were as follows:
Accounts Receivable, Net
As of March 31,
20242023
Customer A*18 %
Customer B15 %*
_______________
* Less than 10%
For the purpose of assessing the concentration of credit risk for significant customers, the Company defines a customer as an entity that purchases the Company’s services directly or indirectly through marketing agencies.
Revenue Recognition
The Company’s revenue is primarily derived from the sale of subscriptions for the following solutions:
•Marketing Solutions: Hosting of customer-sponsored content on the Doximity platform and providing access to the Company’s professional database of healthcare professionals for referral or marketing purposes during the subscription period.
•Hiring Solutions: Providing customers access to the Company’s professional tools where recruiters can access the Company’s database of healthcare professionals, allowing customers to send messages for talent sourcing and to share job postings during the subscription period.
The Company recognizes revenue through the following five steps:
1)Identify the contract with a customer
The Company considers the terms and conditions of its contracts and the Company’s customary business practices in identifying its contracts under ASC 606. The Company determines it has a contract with a customer when the contract has been approved by both parties, it can identify each party’s rights regarding the services to be transferred and the payment terms for the services, it has determined that the customer has the ability and intent to pay, and the contract has commercial substance. At contract inception, the Company evaluates whether two or more contracts should be combined and accounted for as a single contract. The Company applies judgment in determining the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s payment history or, in the case of a new customer, the customer’s credit and financial information.
Contractual terms for Marketing Solutions contracts are generally 12 months or less. Customers are generally billed for a portion of the contract upon contract execution and then billed throughout the remainder of the contract based on various time-based milestones. Certain Marketing Solutions contracts are cancelable with a customary notice period. The Company does not refund customer payments, and customers are responsible for amounts invoiced where payment was not made upon
cancellation. The contractual term for Hiring Solutions contracts is generally 12 months. Hiring Solutions contracts are noncancelable and customers are billed in annual, quarterly, or monthly installments in advance of the service period.
2)Identify the performance obligations in the contract
Performance obligations promised in a contract are identified based on the services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available, and are distinct in the context of the contract, whereby the transfer of the services is separately identifiable from other promises in the contract.
Marketing Solutions customers may purchase a subscription for a specific module to be used over a defined period of time. These customers may purchase more than one module with either the same or different subscription periods. Modules are the core building blocks of the customers’ marketing plan and can be broadly categorized as Awareness, Interactivity, and Peer. As an example, the Company’s Awareness modules may include a sponsored article, short animated videos or other short-form content that is presented to the targeted member.
Each module targets a consistent number of Doximity members per month for the duration of the subscription period. The Company treats each subscription to a specific module as a distinct performance obligation because each module is capable of being distinct as the customer can benefit from the subscription to each module on their own and each subscription can be sold standalone. Furthermore, the subscriptions to individual modules are distinct in the context of the contract as (1) the Company is not integrating the services with other services promised in the contract into a bundle of services that represent a combined output, (2) the subscriptions to specific modules do not significantly modify or customize the subscription to another module, and (3) the specific modules are not highly interdependent or highly interrelated. The subscription to each module is treated as a series of distinct performance obligations because it is distinct and substantially the same, satisfied over time, and has the same measure of progress.
Marketing Solutions customers may also purchase integrated subscriptions for a fixed subscription fee that are not tied to a single module but allow customers to utilize any combination of modules during the subscription period, subject to limits on the total number of modules launched in a given period of time, active at any given time, and members targeted. These represent stand-ready obligations in that the delivery of the underlying sponsored content is within the control of the customer and the extent of use in any given period does not diminish the remaining services.
Subscriptions to Hiring Solutions provide customers access to the platform to place targeted job postings and send a fixed number of monthly messages. Each subscription is treated as a series of distinct performance obligations that are satisfied over time.
3)Determine the transaction price
The transaction price is determined based on the consideration the Company expects to be entitled to in exchange for transferring services to the customer. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue recognized under the contract will not occur.
The Company may generate sales through the use of third-party media agencies that are authorized to enter into contracts on behalf of an end customer. The Company acts as the principal in these transactions since it maintains control prior to transferring the service to the customer and is primarily responsible for the fulfillment that occurs through the Company’s platform. The Company records revenue for the amount to which it is entitled from the third-party media agencies as the Company does not know and expects not to know the price charged by the third-party media agencies to its customers.
Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental entities.
4)Allocate the transaction price to performance obligations in the contract
If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative stand-alone selling price (“SSP”). The determination of a SSP for each distinct performance obligation requires judgment. The Company determines SSP for performance obligations based on historical arrangements sold on a standalone basis. To the extent historical sales are not available or do not provide sufficient evidence, the Company estimates the SSP by taking into account overall pricing objectives, which take into consideration market conditions and customer-specific factors, including a review of internal discounting tables, the type of services being sold, and
other factors. The Company believes the use of its estimation approach and allocation of the transaction price on a relative SSP basis to each performance obligation results in revenue recognition in a manner consistent with the underlying economics of the transaction and the allocation principle included in ASC 606.
5)Recognize revenue when or as the Company satisfies a performance obligation
Revenue is recognized when or as control of the promised goods or service is transferred to the customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. Subscriptions represent a series of distinct goods or services because the performance obligations are satisfied over time as customers simultaneously receive and consume the benefits related to the services as the Company performs. In the case of module specific subscriptions, a consistent level of service is provided during each monthly period the sponsored content is available on the Company’s platform. The Company commences revenue recognition when the first content is launched on the platform for the initial monthly period and revenue is recognized over time as each subsequent content period is delivered. The Company’s obligation for its integrated subscriptions is to stand-ready throughout the subscription period; therefore, the Company considers an output method of time to measure progress towards satisfaction of its obligations with revenue commencing upon the beginning of the subscription period.
The Company treats Hiring Solutions subscriptions as a single performance obligation that represents a series of distinct performance obligations that is satisfied over time. Revenue recognition commences when the customer receives access to the services and is recognized ratably over the subscription period.
Other revenue consists of fees earned from the temporary staffing and permanent placement of healthcare professionals. Revenue is recognized when control of these services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services.
Contract Balances
Timing of revenue recognition may differ from the timing of invoicing to customers. Marketing Solutions customers are generally billed for a portion of the contract upon contract execution and then billed throughout the remainder of the contract based on various time-based milestones, starting when the tailored content is first shared on the Doximity platform. Hiring Solutions customers are generally billed periodically throughout the service period. The Company’s contracts do not contain significant financing components.
The Company records unbilled revenue when revenue is recognized in amounts for which it is contractually entitled but exceeds the amounts the Company has a right to bill as of the end of the period. The Company records unbilled revenue on the consolidated balance sheets within prepaid expenses and other current assets.
Deferred revenue consists of noncancelable customer billings or payments received in advance of revenue recognition. Deferred revenue balances are generally expected to be recognized within 12 months. Since the majority of the Company’s contracts have a duration of one year or less, the Company has elected not to disclose remaining performance obligations in accordance with the optional exemption in ASC 606. Remaining performance obligations for contracts with an original duration greater than one year are not material.
Deferred Contract Costs
The Company capitalizes sales compensation that is considered to be an incremental and recoverable cost of obtaining a contract with a customer. The Company pays commissions based on signing new arrangements with customers and upon renewals and expansion of existing contracts with customers.
Deferred compensation is generally amortized over the weighted-average contractual term, ranging from 7 months to 14 months. The portion of deferred compensation expected to be recognized within one year of the balance sheet date is included in prepaid expenses and other current assets and the remaining portion is recorded as other assets on the consolidated balance sheets. The amortization of deferred contract costs is included in sales and marketing expense in the consolidated statements of operations. Sales compensation that is not considered an incremental cost is expensed in the same period that it was earned.
Fair Value of Financial Instruments
Available-for-sale debt securities are recorded at fair value on the consolidated balance sheets. The carrying value of cash equivalents, accounts receivable, accounts payable, and accrued expenses and other current liabilities approximate their respective fair values due to their short maturities.
Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses a three-tier hierarchy, which prioritizes the inputs used in measuring fair value as follows:
Level 1—Inputs that are unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date.
Level 2—Inputs (other than quoted prices included in Level 1) that are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life.
Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities and which reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model.
Cash and Cash Equivalents and Marketable Securities
The Company considers all highly liquid investments with maturities of three months or less at the time of acquisition to be cash equivalents.
The Company’s marketable securities portfolio includes only debt securities. Marketable debt securities that the Company may sell prior to maturity in response to changes in the Company's investment strategy, liquidity needs, or for other reasons are classified as available-for-sale. The Company's portfolio as of March 31, 2024 and 2023 includes only available-for-sale securities. Available-for-sale securities are stated at fair value as of each balance sheet date. Unrealized gains and losses for available-for-sale securities are included in accumulated other comprehensive income, a component of stockholders’ equity on the consolidated balance sheets. The Company’s marketable securities are available for use in current operations, even if the security matures beyond 12 months. The Company classifies its marketable securities as current assets on the consolidated balance sheets.
Periodically, the Company assesses the available-for-sale securities for impairment. An investment is impaired if the fair value of the investment is less than its amortized cost basis. The amortized cost of an investment will be written down to the fair value when the Company determines (i) it is more likely than not that management will be required to sell the impaired security before recovery of its amortized basis or (ii) management has the intention to sell the security. If neither of these conditions are met, the Company must determine whether the impairment is due to credit losses. A credit loss exists if the amortized cost basis of the security exceeds the present value of cash flows expected to be collected. All credit losses are recorded to other income, net, and any remaining unrealized losses are recorded to other comprehensive income (loss). If the Company has the intent to sell an available-for-sale security in an unrealized loss position or it is more likely than not that it will be required to sell the security prior to recovery of its amortized cost basis, any previously recorded allowance is reversed and the entire difference between the amortized cost basis of the security and its fair value is recognized in other income, net in the consolidated statements of operations.
The Company determines any realized gains or losses on the sale of marketable securities on a specific identification method and records them to other income, net. Amortization of premiums and accretion of discounts are recorded to other income, net.
Accounts Receivable and Allowance for Doubtful Accounts
Accounts receivable are recorded and carried at the original invoiced amount less an allowance for any potential uncollectible amounts. The Company estimates its allowance for doubtful accounts by evaluating the Company’s ability to collect outstanding receivable balances. The Company considers various factors, including the age of the balance, the creditworthiness of the customer, which is assessed based on ongoing credit evaluations, payment history and the customer’s current financial condition. The Company had no material bad debt write offs for the years ending March 31, 2024, 2023, and 2022.
Property and Equipment
Property and equipment are stated at cost less accumulated depreciation. Depreciation and amortization expense is recorded on a straight-line basis over the estimated useful lives of the assets. The estimated useful life of each asset category is as follows:
Furniture and equipment
3-5 years
Computers and software3 years
Internal-use software development costs3 years
Leasehold improvementsShorter of useful life or remaining lease term
When assets are retired or otherwise disposed of, the cost and accumulated depreciation and amortization are written off, and any resulting gain or loss is recorded in the consolidated statements of operations in the period realized. Maintenance and repairs are expensed as incurred.
Internal-Use Software Development Costs
The Company capitalizes certain costs to develop its website, mobile applications and internal-use software when preliminary planning efforts are successfully completed, management has committed project resourcing, and it is probable that the project will be completed. Costs incurred prior to meeting these criteria, as well as costs incurred for training, maintenance, and minor modifications or enhancements, are expensed as incurred. Capitalized costs include personnel and related expenses for employees and costs of third-party contractors who are directly associated with and who devote time to internal-use software projects. Capitalization of these costs ceases once the project is substantially complete and the software is ready for its intended use.
Capitalized costs are included in property and equipment, net on the consolidated balance sheets and are amortized to cost of revenue over their estimated useful life.
Business Combinations
When the Company acquires a business, the purchase consideration is allocated to the tangible and intangible assets acquired and liabilities assumed at their estimated fair values on the acquisition date. The excess of the fair value of purchase consideration over the values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair value of assets acquired and liabilities assumed, management makes significant estimates and assumptions, including the selection of valuation methodologies, estimates of future expected cash flows, future revenue growth, margins, customer retention rates, technology life, royalty rates, expected use of acquired assets, and discount rates. Acquisition costs, such as legal and consulting fees, are expensed as incurred.
Goodwill, Intangible Assets, and Long-Lived Assets
Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired in a business combination. Goodwill is not amortized, but is tested for impairment at least annually in its fourth fiscal quarter or more frequently if events or changes in circumstances indicate that the asset may be impaired. The Company has one reporting unit and evaluates goodwill for impairment at the entity level. If the carrying value of the reporting unit exceeds its fair value, an impairment charge is recognized for the excess of the carrying value of the reporting unit over its fair value, limited to the amount of goodwill allocated to the reporting unit.
The intangible assets are stated at cost less accumulated amortization and are amortized on a straight-line basis over their estimated remaining economic lives. Amortization expense related to intangible assets is included in cost of revenue and sales and marketing expense.
Management evaluates the recoverability of the Company’s long-lived assets when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets held and used is measured by comparison of the carrying amount of an asset or an asset group to the estimated undiscounted future net cash flows expected to be generated by the asset or asset group. If the carrying value exceeds the estimated undiscounted future cash flows, an impairment loss is recognized for the amount by which the carrying amount exceeds the fair value for the asset or asset group.
Stock-Based Compensation
The Company measures compensation expense for all stock-based awards based on the estimated fair value of the awards on the date of grant. Stock-based awards include stock options with service-based, performance-based and market-based vesting conditions, restricted stock units, or RSUs, performance-based restricted stock units, or PSUs, and warrants granted to employees, directors, and non-employees, as well as stock purchase rights granted to employees under the 2021 Employee Stock Purchase Plan, or ESPP. For awards that vest based on continued service, stock-based compensation is recognized on a straight-line basis over the requisite service period. For awards with performance-based vesting conditions, stock-based compensation expense is recognized using an accelerated attribution method from the time it is deemed probable that the vesting condition will be met through the time the service-based vesting condition has been achieved. The Company reassesses the probability of achieving the performance condition at each reporting date. For awards with market-based vesting conditions, stock-based compensation expense is recognized on an accelerated attribution basis over the requisite service period, even if the market condition is not satisfied.
The fair value of each RSU and PSU is based on the fair value of the Company’s Class A common stock, which is traded on the NYSE, on the date of grant.
The grant-date fair value of warrants, stock purchase rights granted to employees under the ESPP (“ESPP rights”), and stock options with service-based or performance-based vesting conditions is estimated using the Black-Scholes pricing model. The grant-date fair value of stock options with market-based vesting conditions is estimated using the Monte Carlo simulation model. The determination of the grant-date fair value using an option-pricing model is affected by the fair value of the Company’s common stock and assumptions regarding a number of other complex and subjective variables. These assumptions include the expected term of the award, the expected stock price volatility over the expected term of the award, the risk-free interest rate for the expected term of the award, and expected dividends.
Prior to the IPO, the Company granted stock options and warrants which were valued using the Black-Scholes pricing model, and after the IPO, the Company has granted warrants and ESPP rights which are valued using the Black-Scholes pricing model. The assumptions used in the Black-Scholes models are determined as follows:
Risk-Free Interest Rate—The risk-free interest rate is based on the implied yield available on U.S. Treasury zero-coupon issues with an equivalent expected term of the awards.
Expected Volatility—Prior to the IPO, when there was no public market for the Company’s common stock, the expected volatility was determined using the historical volatilities of several publicly listed peer companies over a period equivalent to the expected term of the awards. After the IPO, the expected volatility was determined using the historical stock volatilities of the common stock of the Company over a period equivalent to the duration of the offering period.
Expected Term—The expected term represents the period that the Company’s stock-based awards are expected to be outstanding. Prior to the IPO, the Company estimated the expected term for awards granted to employees using the simplified method as the Company’s historical share option exercise experience did not provide a reasonable basis upon which to estimate the expected term. The simplified method uses the average of the vesting period and contractual term. For awards granted to non-employees, the Company used the contractual term as the expected term. For ESPP rights, the expected term is equivalent to the offering period.
Expected Dividend Yield—The Company has not historically issued dividends and does not currently expect to issue a dividend in the future.
Fair Value Per Share of the Company’s Common Stock—Because the Company’s common stock was not publicly traded until the completion of the IPO, the Company’s board of directors considered numerous objective and subjective factors to determine the fair value of the Company’s common stock at each meeting during which awards were approved. These factors included, but were not limited to (i) contemporaneous third-party valuations of common stock; (ii) the rights and preferences of the Company’s preferred stock relative to common stock; (iii) the lack of marketability of common stock; (iv) developments in the business; and (v) the likelihood of achieving a liquidity event, such as an IPO or sale of the Company, given prevailing market conditions. After the IPO, the Company used the closing stock price of the Company’s Class A common stock, which is traded on the NYSE.
Leases
The Company determines if a contract is or contains a lease at inception. All of the Company’s leases are operating leases. Operating lease right-of-use assets and lease liabilities with a lease term greater than 12 months are recognized at the lease commencement date based on the present value of the lease payments over the lease term, which would include extension or termination options if it is reasonably certain that such options will be exercised, discounted using the Company’s incremental borrowing rate. As none of the Company’s leases provide an implicit rate, the incremental borrowing rate used is estimated based on what the Company would be required to pay for a collateralized loan over a similar term as the lease. The Company amortizes the present value of each right-of-use asset on a straight-line basis over its remaining lease term. Leases are included in operating lease right-of-use assets, operating lease liabilities, current, and operating lease liabilities, non-current on the consolidated balance sheets.
Our lease agreements may contain variable costs such as common area maintenance, insurance, property tax, and other operating costs. Variable lease costs are expensed as incurred in the consolidated statements of operations. The Company does not separate non-lease components from lease components for its facility asset portfolio.
Net Income Per Share Attributable to Common Stockholders
The Company applies the two-class method to compute basic and diluted net income per share attributable to common stockholders when shares meet the definition of participating securities.
Prior to the automatic conversion of the Company’s outstanding redeemable convertible preferred stock to Class B common stock in connection with the IPO, the Company had redeemable convertible preferred stock. The redeemable convertible preferred stock was considered to be a participating security because the holders were each entitled to receive noncumulative dividends out of any funds legally available, when and if declared by the Company’s board of directors, payable prior and in preference to any dividends on any shares of common stock based on the proportion of common stock that would be held if all shares of redeemable convertible preferred stock were converted at the then-effective conversion rate. Redeemable convertible preferred stock was therefore included in the computation of earnings per share under the two-class method. Holders of redeemable convertible preferred stock do not have a contractual obligation to share in the Company’s losses.
Under the two-class method, net income attributable to common stockholders is determined by allocating undistributed earnings, calculated as net income, less (i) current period redeemable convertible preferred stock noncumulative dividends and (ii) earnings attributable to participating securities.
Basic net income per share attributable to common stockholders is computed by dividing the net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period.
Diluted net income per share attributable to common stockholders is computed by dividing net income attributable to common stockholders by the weighted-average number of common shares outstanding and the effect of potentially dilutive securities outstanding during the period. Potentially dilutive securities include stock options, RSUs, PSUs, ESPP, redeemable convertible preferred stock, and common stock warrants. The dilutive effect of stock options, common stock warrants, RSUs, PSUs, and the ESPP is reflected in diluted earnings per share using the treasury stock method.
The rights, including the liquidation and dividend rights, of the holders of Class A and Class B common stock are identical, except with respect to voting, converting, and transfer rights. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis to each class of common stock and the resulting basic and diluted net loss per share attributable to common stockholders are, therefore, the same for both Class A and Class B common stock on both an individual and combined basis.
Income Taxes
Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Deferred income tax assets and liabilities are measured using enacted tax rates for the year in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the consolidated statements of operations in the period that includes the enactment date. A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized.
The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized. The Company’s policy is to classify interest and penalties associated with uncertain tax positions, if any, as a component of its provision for (benefit from) income taxes.
Legal Contingencies
The Company may be subject to claims and other legal matters from time to time. The Company records a liability when it believes that it is both probable that a loss has been incurred and the amount can be reasonably estimated. When the Company believes that a loss is reasonably possible, it will disclose an estimate of the possible loss or range of loss. The Company expects to periodically evaluate developments in the legal matters that could affect the amount of liability that the Company accrues, if any, and adjust as appropriate. Until the final resolution of any such matter for which the Company may record a liability, there may be a loss exposure in excess of the liability recorded and such amount could be significant. Legal fees are expensed as incurred, other than amounts capitalized as deferred offering costs, as discussed above.
Cost of Revenue
Cost of revenue consists primarily of expenses related to cloud hosting, personnel-related expenses for the Company’s customer success team, costs for third-party platform access, information-technology and software-related services and contractors, and other services used in connection with delivery and support of the Company’s platform. Cost of revenue also includes the amortization of internal-use software development costs, editorial and other content-related expenses, and allocated overhead.
Research and Development
Research and development expense is primarily comprised of personnel-related expenses associated with the Company’s engineering and product teams who are responsible for building new products and improving existing products. Research and development expense also includes costs for third-party services and contractors, information technology and software-related costs, and allocated overhead. Other than internal-use software development costs that qualify for capitalization, research and development costs are expensed as incurred.
Restructuring
Restructuring expense primarily consists of severance payments, employee benefits, and stock-based compensation in relation to the modification of equity awards associated with the management-approved plan. One-time employee termination benefits are recognized at the time of communication of the terms of the plan to the employees, unless future service is required, in which case the costs are recognized over the future service period. The Company records these costs in restructuring expense in the consolidated statements of operations.
Advertising Expenses
Advertising costs are expensed as incurred and are included in sales and marketing expense in the consolidated statements of operations. Advertising expense was $2.5 million, $2.6 million, and $2.8 million for the fiscal years ended March 31, 2024, 2023, and 2022, respectively.
Accounting Pronouncements Not Yet Adopted
In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires disclosure of incremental segment information on an annual and interim basis. This ASU is effective for the Company for its fiscal year beginning April 1, 2024, and for interim periods within the fiscal year beginning April 1, 2025, with early adoption permitted, and requires retrospective application to all prior periods presented in the financial statements. The Company is currently evaluating the impact of this ASU on its consolidated financial statements.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which includes amendments that further enhance annual income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The amendments are effective for the
Company’s annual periods beginning April 1, 2025, with early adoption permitted, and may be applied either prospectively or retrospectively. The Company is currently evaluating the impact of this ASU on its consolidated financial statements.
v3.24.1.1.u2
Revenue Recognition
 12 Months Ended
Mar. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Revenue Disaggregation
Revenue consisted of the following (in thousands):
Fiscal Year Ended March 31,
202420232022
Subscription$450,071 $389,739 $319,298 
Other25,351 29,313 24,250 
Total revenue$475,422 $419,052 $343,548 
Contract Balances
Changes in the Company’s deferred revenue balances were as follows (in thousands):
As of March 31,
20242023
Beginning balance$105,436 $84,985 
Additions, net, during the period469,342 439,503 
Revenue recognized from the beginning balance(104,437)(83,231)
Revenue recognized from contracts invoiced during the period(370,985)(335,821)
Ending balance$99,356 $105,436 
Included in the additions, net, during the fiscal year ended March 31, 2023 was $2.9 million of additions due to the AMiON acquisition which closed on April 1, 2022. See Note 8 — Business Combinations for additional information.
The Company’s unbilled revenue balances were $2.3 million and $2.2 million as of March 31, 2024 and 2023, respectively.
Deferred Contract Costs
The Company capitalized $8.6 million, $8.5 million, and $9.6 million of contract acquisition costs for the fiscal years ended March 31, 2024, 2023, and 2022, respectively. Amortization of deferred contract costs was $8.9 million, $8.8 million, and $9.8 million for the fiscal years ended March 31, 2024, 2023, and 2022, respectively. As of March 31, 2024, the Company’s current and non-current deferred contract cost balances were $5.0 million and $0.4 million, respectively. As of March 31, 2023, the Company’s current and non-current deferred contract cost balances were $5.1 million and $0.6 million, respectively. Deferred contract costs are periodically analyzed for impairment. There were no impairment losses relating to deferred contract costs during the fiscal years ended March 31, 2024, 2023, and 2022. Deferred contract costs, current are classified within prepaid expenses and other current assets on the consolidated balance sheets and amounts related to the prior year have been reclassified to conform to current period classification.
v3.24.1.1.u2
Investments
 12 Months Ended
Mar. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Investments Investments
The cost, gross unrealized gains and losses, and fair value of investments are as follows (in thousands):
As of March 31, 2024
Cost or
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair Value
Cash equivalents:
Corporate notes and bonds$1,180 — — $1,180 
Money market funds83,049 — — 83,049 
Total cash equivalents84,229 — — 84,229 
Marketable securities:
Asset-backed securities121 — — 121 
Commercial paper70,804 1 (50)70,755 
Corporate notes and bonds225,880 133 (191)225,822 
Sovereign bonds7,749 — (73)7,676 
U.S. government and agency securities365,123 2 (3,384)361,741 
Total marketable securities669,677 136 (3,698)666,115 
Total cash equivalents and marketable securities$753,906 $136 $(3,698)$750,344 
As of March 31, 2024, the contractual maturities of the Company’s available-for-sale debt securities were as follows (in thousands):
Fair Value
Due within one year$543,915 
Due in one year to two years123,259 
Asset-backed securities121 
Total$667,295 
Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations.
The cost, gross unrealized gains and losses, and fair value of investments were as follows (in thousands):
As of March 31, 2023
Cost or
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair Value
Cash equivalents:
Money market funds$126,275 $— $— $126,275 
Total cash equivalents126,275 — — 126,275 
Marketable securities:
Asset-backed securities7,271 — (71)7,200 
Certificates of deposit27,380 — (80)27,300 
Commercial paper78,609 6 (126)78,489 
Corporate notes and bonds119,241 49 (778)118,512 
Sovereign bonds7,744 — (360)7,384 
U.S. government and agency securities461,584 12 (17,509)444,087 
Total marketable securities701,829 67 (18,924)682,972 
Total cash equivalents and marketable securities$828,104 $67 $(18,924)$809,247 
As of March 31, 2024 and 2023, the Company has recognized accrued interest of $3.8 million and $2.8 million, respectively, which is included in prepaid expenses and other current assets in the consolidated balance sheets.
The unrealized losses associated with the Company’s debt securities were $3.7 million and $18.9 million as of March 31, 2024 and 2023, respectively. As the Company does not intend to sell these securities and it is more likely than not that the Company will hold these securities until maturity or until the cost basis is recovered, the Company did not recognize any impairment on these securities as of March 31, 2024 and 2023. The Company did not recognize any credit losses related to the Company’s debt securities as of March 31, 2024 and 2023. The fair value related to the debt securities with unrealized loss for which no credit losses were recognized was $547.5 million and $653.4 million as of March 31, 2024 and 2023, respectively.
The following tables summarize the gross unrealized losses and fair values of investments in an unrealized loss position, aggregated by security type and length of time that the individual securities have been in a continuous unrealized loss position (in thousands):
As of March 31, 2024
Less than 12 months12 months or greaterTotal
Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses
Asset-backed securities$— $— $121 $— $121 $— 
Commercial paper67,336 (50)— — 67,336 (50)
Corporate notes and bonds131,443 (191)— — 131,443 (191)
Sovereign bonds— — 7,676 (73)7,676 (73)
U.S. government and agency securities81,130 (139)259,784 (3,245)340,914 (3,384)
Total$279,909 $(380)$267,581 $(3,318)$547,490 $(3,698)
As of March 31, 2023
Less than 12 months12 months or greaterTotal
Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses
Asset-backed securities$2,601 $(12)$4,599 $(59)$7,200 $(71)
Certificates of deposit27,018 (80)— — 27,018 (80)
Commercial paper70,681 (126)— — 70,681 (126)
Corporate notes and bonds42,575 (113)58,766 (665)101,341 (778)
Sovereign bonds— — 7,384 (360)7,384 (360)
U.S. government and agency securities— — 439,748 (17,509)439,748 (17,509)
Total$142,875 $(331)$510,497 $(18,593)$653,372 $(18,924)
v3.24.1.1.u2
Fair Value Measurements
 12 Months Ended
Mar. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The following tables present the fair value hierarchy for the Company’s assets and liabilities measured at fair value on a recurring basis (in thousands):
As of March 31, 2024
Level 1Level 2Level 3Total
Cash equivalents:
Corporate notes and bonds$— $1,180 $— $1,180 
Money market funds83,049 — — 83,049 
Total cash equivalents83,049 1,180 — 84,229 
Marketable securities:
Asset-backed securities— 121 — 121 
Commercial paper— 70,755 — 70,755 
Corporate notes and bonds— 225,822 — 225,822 
Sovereign bonds— 7,676 — 7,676 
U.S. government and agency securities355,804 5,937 — 361,741 
Total marketable securities355,804 310,311 — 666,115 
Total cash equivalents and marketable securities$438,853 $311,491 $— $750,344 
Liabilities:
Contingent earn-out consideration liability$— $— $16,813 $16,813 
Total contingent earn-out consideration liability$— $— $16,813 $16,813 
As of March 31, 2023
Level 1Level 2Level 3Total
Cash equivalents:
Money market funds$126,275 $— $— $126,275 
Total cash equivalents126,275 — — 126,275 
Marketable securities:
Asset-backed securities— 7,200 — 7,200 
Certificates of deposit— 27,300 — 27,300 
Commercial paper— 78,489 — 78,489 
Corporate notes and bonds— 118,512 — 118,512 
Sovereign bonds— 7,384 — 7,384 
U.S. government and agency securities439,748 4,339 — 444,087 
Total marketable securities439,748 243,224 — 682,972 
Total cash equivalents and marketable securities$566,023 $243,224 $— $809,247 
Liabilities:
Contingent earn-out consideration liability$— $— $21,862 $21,862 
Total contingent earn-out consideration liability$— $— $21,862 $21,862 
During the fiscal years ended March 31, 2024 and 2023, the Company had no transfers between levels of the fair value hierarchy.
Contingent Earn-out Consideration Liability
The following table summarizes the changes in the contingent earn-out consideration liability (in thousands):
Fiscal Year Ended March 31,
20242023
Beginning fair value$21,862 $— 
Additions in the period— 21,134 
Change in fair value951 728 
Payments(6,000)— 
Ending fair value$16,813 $21,862 
The contingent earn-out consideration liability relates to the AMiON acquisition, which closed on April 1, 2022. The fair value of the liability is remeasured at each reporting date until the related contingency is resolved, with any changes to the fair value recognized as sales and marketing expense in the consolidated statements of operations.
To determine the fair value of the contingent earn-out consideration liability, the Company used the discounted cash flow method. The significant inputs used in the fair value measurement of the contingent earn-out consideration liability are the discount rate and the timing and amounts of the future payments, which are based upon estimates of future achievement of the performance metrics. As these inputs are not based on observable market data, they represent a Level 3 measurement within the fair value hierarchy. Changes in the significant inputs used would significantly impact the fair value of the contingent earn-out consideration liability.
See Note 8—Business Combinations for additional discussion regarding the AMiON acquisition.
v3.24.1.1.u2
Property and Equipment, Net
 12 Months Ended
Mar. 31, 2024
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net Property and Equipment, Net
Property and equipment, net consisted of the following (in thousands):
As of March 31,
20242023
Furniture and equipment$2,833 $2,816 
Computers and software745 745 
Leasehold improvements992 888 
Internal-use software development costs26,827 20,405 
Total property and equipment31,397 24,854 
Less: accumulated depreciation and amortization(19,079)(13,575)
Total property and equipment, net$12,318 $11,279 
Depreciation and amortization expense on property and equipment for the fiscal years ended March 31, 2024, 2023, and 2022 was $5.7 million, $5.5 million and $4.0 million, respectively. Included in these amounts was amortization expense for internal-use software development costs of $5.0 million, $4.8 million and $3.5 million for the fiscal years ended March 31, 2024, 2023, and 2022, respectively.
During the years ended March 31, 2024, 2023, and 2022, the Company capitalized $6.8 million, $5.3 million, and $4.3 million, respectively, of internal-use software development costs, which are included in property and equipment, net on the consolidated balance sheets.
No impairment was recognized on property and equipment during the years ended March 31, 2024, 2023, and 2022.
v3.24.1.1.u2
Accrued Expenses and Other Current Liabilities
 12 Months Ended
Mar. 31, 2024
Payables and Accruals [Abstract]  
Accrued Expenses and Other Current Liabilities Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following (in thousands):
As of March 31,
20242023
Accrued commissions$5,404 $5,733 
Accrued payroll, bonus, and related expenses8,513 8,739 
Employee contributions under employee stock purchase plan496 589 
Rebate liabilities995 3,348 
Sales and other tax liabilities2,978 1,504 
Current portion of contingent earn-out consideration liability5,918 5,920 
Share repurchase liability
4,000 748 
Transferable federal tax credits payable
11,040 — 
Other4,359 4,664 
Total accrued expenses and other current liabilities$43,703 $31,245 
v3.24.1.1.u2
Business Combinations
 12 Months Ended
Mar. 31, 2024
Business Combination and Asset Acquisition [Abstract]  
Business Combinations Business Combinations
AMiON Acquisition
On April 1, 2022, the Company completed the acquisition of the assets of the AMiON on-call scheduling and messaging application used by scheduling staff and physicians (“the AMiON acquisition”) to further expand our physician cloud platform. The acquisition-date fair value of the consideration was $74.6 million, consisting of $53.5 million in cash and $21.1 million in fair value of contingent earn-out consideration.
Under the definitive agreement for the AMiON acquisition, the Company will pay contingent earn-out consideration of up to $24.0 million, of which $4.0 million is a minimum guarantee and the remaining $20.0 million is subject to the achievement of certain operational performance metrics over the next four years. The contingent earn-out consideration is payable in cash in annual installments over the next four years, with $6.0 million settled in the first quarter of fiscal 2024. The contingent earn-out consideration is classified as a liability, the short-term portion of which is included in accrued expenses and other current liabilities and the long-term portion is in contingent earn-out consideration liability, non-current in the consolidated balance sheets. See Note 5—Fair Value Measurements for additional information regarding the valuation of the contingent earn-out consideration liability.
Additionally, in May 2022, 93,458 RSUs with a grant date fair value of $32.99 per share were granted to the eligible employees joining the Company in connection with the AMiON acquisition. The shares will vest on a quarterly basis over four years based on continued service. The aggregate grant date fair value of these RSUs is accounted for as post-acquisition stock-based compensation expense and is recognized on a straight-line basis over the requisite service period.
The AMiON acquisition was accounted for as a business combination. The purchase consideration was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date, with the excess recorded to goodwill as shown below. The purchase consideration allocation was as follows (in thousands):
Assets acquired:
Accounts receivable$447 
Customer relationships27,200 
Developed technology820 
Trademark700 
Total assets acquired$29,167 
Liabilities assumed:
Deferred revenue$2,925 
Other liabilities633 
Net assets acquired, excluding goodwill25,609 
Goodwill$49,025 
Total purchase consideration$74,634 
Goodwill generated from the AMiON acquisition represents the future benefits from the development of future customer relationships and the assembled workforce. Goodwill from this business combination is deductible for income tax purposes.
Intangible assets acquired are comprised of customer relationships, trademarks, and developed technology with estimated useful lives of 9 years, 3 years, and 18 months, respectively. The fair value assigned to the customer relationships was determined primarily using the multiple period excess earnings method cost approach, which estimates the direct cash flows expected to be generated from the existing customers acquired. The results of operations of this business combination have been included in the consolidated financial statements from the acquisition date.
The acquisition-related costs were not material and were recorded as general and administrative expense in the consolidated statements of operations.
Separate operating results and pro forma results of operations for AMiON have not been presented as the effect of this acquisition was not material to the Company’s financial results.
v3.24.1.1.u2
Intangible Assets
 12 Months Ended
Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Intangible Assets
Intangible assets, net consisted of the following (in thousands):
As of March 31,
20242023
Customer relationships$37,069 $37,069 
Other intangibles1,531 1,531 
Total intangible assets38,600 38,600 
Less: accumulated amortization(11,283)(6,764)
Total intangible assets, net$27,317 $31,836 
Amortization expense for intangible assets was $4.6 million, $4.8 million and $1.0 million for the fiscal years ended March 31, 2024, 2023, and 2022 respectively.
As of March 31, 2024, future amortization expense is as follows (in thousands):
Fiscal Years Ending March 31,Amount
2025$4,245 
20264,012 
20274,010 
20284,010 
20294,010 
Thereafter7,030 
Total future amortization expense$27,317 
Goodwill
There was no change to the Company’s goodwill balance of $67.9 million during the fiscal year ended March 31, 2024.
The changes in the carrying amount of goodwill for the fiscal year ended March 31, 2023 were as follows (in thousands):
Fiscal Year Ended March 31, 2023
Balance, beginning of period$18,915 
Goodwill acquired49,025 
Balance, end of period$67,940 
No impairment charges on goodwill were recorded during the fiscal years ended March 31, 2024, 2023, and 2022.
v3.24.1.1.u2
Redeemable Convertible Preferred Stock
 12 Months Ended
Mar. 31, 2024
Temporary Equity Disclosure [Abstract]  
Redeemable Convertible Preferred Stock Redeemable Convertible Preferred Stock
Upon completion of the IPO in June 2021, all shares of the Company’s redeemable convertible preferred stock outstanding, totaling 76,286,618, were automatically converted into an equivalent number of shares of Class B common stock on a one-to-one basis. The carrying value of redeemable convertible preferred stock of $81.5 million was reclassified into stockholders’ equity. As of March 31, 2024 and 2023, there were no shares of redeemable convertible preferred stock issued or outstanding.
v3.24.1.1.u2
Equity
 12 Months Ended
Mar. 31, 2024
Equity [Abstract]  
Equity Equity
Preferred Stock
In connection with the IPO, the Company’s amended and restated certificate of incorporation became effective, which authorized the issuance of 100,000,000 shares of undesignated preferred stock with a par value of $0.001 per share with rights and preferences, including voting rights, designated from time to time by the board of directors. As of March 31, 2024 and 2023, there were no shares of preferred stock issued and outstanding.
Common Stock and Creation of Dual-Class Structure
The Company has two classes of common stock authorized: Class A common stock and Class B common stock, and are collectively referred to as common stock throughout the notes to the consolidated financial statements, unless otherwise noted. On June 8, 2021, the Company’s board of directors and stockholders approved an amendment to the Company’s amended and restated certificate of incorporation which authorized 1,000,000,000 shares of Class A common stock with par value of $0.001 and one vote per share, and 500,000,000 shares of Class B common stock with par value of $0.001 and ten votes per share. The holders of common stock are entitled to receive dividends, as may be declared by the board of directors. Each of the Company’s 85,523,836 shares of then-existing common stock outstanding was reclassified into Class B common stock. Each outstanding share of Class B common stock may be converted at any time at the option of the holder into one share of Class A common stock. As of March 31, 2024, there were 124,097,865 shares of Class A common stock, and 62,463,784 shares of Class B common stock outstanding.
Stock Repurchase Program
The Company’s board of directors previously authorized various programs to repurchase up to $340 million of the Company’s Class A common stock. Under these programs, the Company repurchased and retired 13,790,535 shares of Class A common stock. All of these programs were completed as of October 2023.
On October 26, 2023, the Company’s board of directors authorized a program to repurchase up to $70 million of the Company’s Class A common stock over a period of 12 months. The repurchases are subject to general business and market conditions and other investment opportunities and may be executed through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans. Immediately upon the repurchase of any shares of Class A common stock, such shares shall be retired by the Company and shall automatically return to the status of authorized but unissued shares of Class A common stock. As of March 31, 2024, the Company repurchased and retired 1,119,014 shares of Class A common stock for an aggregate purchase price of $29.7 million. As of March 31, 2024, $40.3 million remained available and authorized for repurchase.
Effective January 1, 2023, the Company’s share repurchases in excess of allowable share issuances are subject to a 1% excise tax as a result of the Inflation Reduction Act of 2022. During the fiscal year ended March 31, 2024, the Company incurred excise taxes of $1.5 million, all of which remained unpaid as of March 31, 2024. The Company did not incur any excise taxes during the prior year.
Common Stock Warrants
In March 2017, the Company issued a warrant to purchase 250,000 shares of common stock at an exercise price of $0.72 per share in connection with a contract signed between the Company and U.S. News & World Report, L.P., or U.S. News. 125,000 shares with an intrinsic value of $4.0 million were exercised under the warrant during the fiscal year ended March 31, 2023, while the remaining 125,000 shares with an intrinsic value of $2.7 million were exercised during the fiscal year ended March 31, 2024.
In October 2021, the Company issued a warrant to U.S. News (the “U.S. News Warrant”) to purchase 516,000 shares of Class A common stock with an exercise price of $12.56 per share in connection with the execution of a commercial agreement with U.S. News. The U.S. News Warrant expires 10 years from the date of grant. The first tranche of the U.S. News Warrant vested on May 1, 2022 and the remainder will vest on a monthly basis over approximately 6 years. The grant-date fair value of the U.S. News Warrant was $34.7 million, which was determined using the Black-Scholes option-pricing model on the date of grant using the following assumptions: fair value of common stock of $76.50, volatility of 46.9%, risk-free interest rate of 1.61%, contractual term of 10 years, and an expected dividend of 0%. The fair value of the warrant is recognized as expense in cost of revenue in the consolidated statements of operations on a straight-line basis over its vesting term of 6.48 years. During the fiscal years ended March 31, 2024, 2023, and 2022 $5.4 million, $5.4 million, and $2.6 million were recognized as stock-based compensation expense relating to the U.S. News Warrant, respectively. As of March 31, 2024, unamortized compensation expense related to the unvested warrants was $21.3 million, which is expected to be recognized over the remaining vesting period of 4.0 years.
Equity Incentive Plans
The Company maintains three equity incentive plans: the 2010 Equity Incentive Plan (the “2010 Plan”), the 2021 Stock Option and Incentive Plan (the “2021 Plan”), and the 2021 Employee Stock Purchase Plan (the “ESPP”). In June 2021, the Company’s board of directors approved the adoption of the 2021 Plan, which became effective upon the Company’s initial public offering and supersedes the 2010 Plan. The 2010 Plan continues to govern the terms of outstanding awards that were granted prior to the termination of the 2010 Plan. The 2021 Plan provides for the granting of incentive stock options, nonstatutory stock options, restricted stock units, and restricted stock awards to employees, non-employee directors, and consultants of the Company. Any shares of Class B common stock that would have otherwise been returned to the Company’s 2010 Plan as a result of forfeiture, expiration, cancellation, termination or net issuances of awards thereunder shall be returned to the share reserve under the 2021 Plan after being automatically converted from shares of Class B common stock to Class A common stock. The 2010 Plan and the 2021 Plan are collectively referred to as the “Plans” in the notes to the consolidated financial statements, unless otherwise noted.
The number of shares reserved and available for issuance for the 2021 Plan will automatically increase each April 1st by the lesser of 5% of the outstanding number of shares of the Class A and Class B common stock on the immediately preceding March 31, or such lesser number of shares as determined by the Company’s compensation committee.
The number of shares reserved and available for issuance for the ESPP will automatically increase each April 1st through April 1, 2031, by the lesser of 6,750,000 shares of Class A common stock, 1% of the outstanding number of shares of the Class A and Class B common stock on the immediately preceding March 31st, or such lesser number of shares as determined by the Company’s compensation committee.
The Company granted stock options under the terms of the Plans and outside of the Plans, as approved by the board of directors. During fiscal 2018, the Company granted 4,682,582 options outside of the Plans, of which 2,044,582 options were exercised and 2,638,000 were outstanding as of March 31, 2024.
The Company has shares of common stock reserved for issuance as follows (in thousands):
March 31, 2024
Common stock warrants516 
2010 Plan
Options outstanding14,842 
2021 Plan
Awards outstanding
2,519 
Shares available for future grant40,823 
2021 ESPP8,002 
Options outstanding outside the Plans2,638 
Total69,340 
Stock Options
Stock options granted generally vest over four years with service-based, performance-based, and/or market-based conditions and expire ten years from the date of grant.
Stock option activities within the Plans as well as outside of the Plans were as follows:
Number of Shares
(in thousands)		Weighted-Average
Exercise Price		Average Remaining Contractual Term
(in years)		Aggregate Intrinsic Value (in thousands)
Balance, March 31, 202322,407 $4.39 6.56$627,187 
Options exercised(4,019)3.19 
Options forfeited or expired(908)5.60 
Balance, March 31, 202417,480 4.60 5.72389,931 
Vested and exercisable as of March 31, 202411,896 3.26 5.21281,377 
Vested and expected to vest as of March 31, 202417,480 4.60 5.72389,931 
The aggregate intrinsic value of options exercised during the fiscal years ended March 31, 2024, 2023, and 2022 was $99.5 million, $118.4 million, and $521.6 million respectively.
The weighted-average grant-date fair value of options granted for the fiscal year ended March 31, 2022 was $10.73. The Company has not granted any stock options since the first quarter of fiscal 2022.
As of March 31, 2024, unamortized stock-based compensation expense related to unvested stock options was $22.4 million, which is expected to be recognized over a weighted-average period of 2.55 years.
The fair value of each option on the date of grant was determined using the Black-Scholes option-pricing model with the assumptions set forth in the following table:
Fiscal Year Ended March 31, 2022
Fair value of common stock
$18.41 - $21.41
Volatility
46.5% - 47.0%
Risk-free interest rate
0.77% - 1.02%
Expected term (in years)
5.00 - 6.09
Expected dividend—%
Restricted Stock Units (“RSUs”)
The RSUs granted by the Company generally vest over four years based on continued service.
The following table summarizes RSU activity (in thousands, except per share information):
Number of SharesWeighted-
Average
Grant Date Fair Value
Unvested balance, March 31, 20231,951 $40.08 
Granted1,300 29.72 
Vested(701)37.96 
Forfeited(457)41.85 
Unvested balance, March 31, 20242,093 33.79 
The total fair value of RSUs vested during the fiscal years ended March 31, 2024, 2023, and 2022 was $19.9 million, $11.4 million, and $2.5 million respectively.
As of March 31, 2024, unamortized stock-based compensation expense related to unvested RSUs was $64.3 million, and is expected to be recognized over a weighted-average period of approximately 2.71 years.
Performance-Based Restricted Stock Units (“PSUs”)
During the fiscal year ended March 31, 2024, the Company granted 373,494 PSUs that are subject to both service-based and performance-based vesting condition related to certain financial performance targets. During the fiscal year ended March 31, 2024, the performance targets for 65,544 PSUs were met and will vest on August 15, 2024. As of March 31, 2024, the unamortized stock-based compensation expense related to unvested PSUs was $2.3 million. The amount to be recognized will be based on the extent the performance metrics are achieved.
Stock-Based Compensation Expense
Total stock-based compensation expense recognized in the consolidated statement of operations was as follows (in thousands):
Fiscal Year Ended March 31,
202420232022
Cost of revenue$9,479 $9,634 $4,979 
Research and development11,978 12,583 7,065 
Sales and marketing16,857 16,939 8,108 
General and administrative9,116 8,678 11,290 
Restructuring
3,646 — — 
Total stock-based compensation expense$51,076 $47,834 $31,442 
v3.24.1.1.u2
Net Income Per Share Attributable to Common Stockholders
 12 Months Ended
Mar. 31, 2024
Earnings Per Share [Abstract]  
Net Income Per Share Attributable to Common Stockholders Net Income Per Share Attributable to Common Stockholders
The following table presents the reconciliation of the numerator and denominator for calculating basic and diluted net income per share (in thousands, except per share data):
Fiscal Year Ended March 31,
202420232022
Numerator
Net income$147,582 $112,818 $154,783 
Less: undistributed earnings attributable to participating securities— — (21,526)
Net income attributable to Class A and Class B common stockholders, basic and diluted
$147,582 $112,818 $133,257 
Denominator
Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders, basic
190,172 193,176 163,484 
Dilutive effect of stock options15,346 20,027 27,290 
Dilutive effect of common stock warrants72 139 234 
Dilutive effect of other share-based awards144 83 9 
Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders, diluted
205,734 213,425 191,017 
Net income per share attributable to Class A and Class B common stockholders:
Basic$0.78 $0.58 $0.82 
Diluted$0.72 $0.53 $0.70 
Certain potentially dilutive securities have been excluded from the calculation of diluted net income per share during the applicable periods because their inclusion would have been anti-dilutive (in thousands):
Fiscal Year Ended March 31,
202420232022
Other share-based awards883 572 217 
Common stock warrants516 516 247 
Total1,399 1,088 464 
v3.24.1.1.u2
Restructuring
 12 Months Ended
Mar. 31, 2024
Restructuring and Related Activities [Abstract]  
Restructuring Restructuring
In August 2023, the Company announced a restructuring plan (the “Restructuring Plan”) intended to simplify the Company’s operations and better align the Company’s resources with its priorities. The Restructuring Plan included a reduction of the Company’s workforce by approximately 10%. The actions associated with the workforce reduction under the Restructuring Plan were completed as of March 31, 2024. The Company incurred $7.9 million in restructuring expense in the second quarter of fiscal 2024 in connection with the workforce reduction under the Restructuring Plan, consisting of $4.3 million of severance payments and employee benefits and $3.6 million of stock-based compensation expense for the accelerated vesting of equity awards.
The following table summarizes the activities related to the Restructuring Plan as of March 31, 2024 (in thousands):
Restructuring Expense
Liability as of July 1, 2023
$— 
Charges4,258 
Payments(4,258)
Liability as of March 31, 2024
$— 
v3.24.1.1.u2
Income Taxes
 12 Months Ended
Mar. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
All of the Company’s income before income taxes was generated in the United States for the fiscal years ended March 31, 2024, 2023, and 2022.
The Company’s provision for (benefit from) income taxes consisted of the following (in thousands):
Fiscal Year Ended March 31,
202420232022
Current provision:
Federal$36,394 $3,515 $160 
State9,819 3,498 309 
Total46,213 7,013 469 
Deferred provision (benefit):
Federal(5,088)11,834 (34,852)
State(3,505)1,491 (6,395)
Total(8,593)13,325 (41,247)
Total provision for (benefit from) income taxes$37,620 $20,338 $(40,778)
The following is a reconciliation of the income tax expense at the federal statutory tax rate to the Company’s provision for (benefit from) income taxes (in thousands):
Fiscal Year Ended March 31,
202420232022
Income taxes at statutory rate$38,893 $27,963 $23,941 
State income taxes, net of federal benefit12,130 6,757 5,503 
Research and development credits(3,817)(5,076)(8,332)
Stock-based compensation(6,734)(14,841)(71,780)
Change in valuation allowance(4,060)504 1,878 
Section 162(m) limitation3,410 4,782 7,260 
Transferable federal tax credits
(1,920)— — 
Other(282)249 752 
Total provision for (benefit from) income taxes$37,620 $20,338 $(40,778)
Components of deferred tax assets and liabilities were as follows (in thousands):
As of March 31,
20242023
Deferred tax assets:
Accruals and deferred revenue$4,372 $2,744 
Net operating loss carryforwards1,160 1,733 
Research & development credit carryforwards3,855 7,230 
Operating lease liabilities3,683 3,968 
Acquisition and other related expense273 298 
Stock-based compensation expense7,048 6,492 
Unrealized loss902 4,785 
Capitalized research and development31,927 19,825 
Gross deferred tax assets53,220 47,075 
Less: valuation allowance(1,175)(5,236)
Deferred tax assets, net of valuation allowance52,045 41,839 
Deferred tax liabilities:
Property and equipment(2,879)(2,734)
Operating lease right-of-use assets(3,122)(3,506)
Intangible assets(976)(692)
Deferred tax liabilities(6,977)(6,932)
Net deferred tax assets$45,068 $34,907 
The Company monitors the realizability of deferred tax assets, taking into account all relevant factors at each reporting period. As of March 31, 2023, the Company had a valuation allowance of $5.2 million, which related to the California research and development tax credits, California alternative minimum tax credits, and capital loss carryforwards. As of March 31, 2024, based on the relevant weight of positive and negative evidence, including the amount of taxable income in recent years which is objective and verifiable, and consideration of expected future taxable earnings, the Company concluded that it is more likely than not that the California research and development credits were realizable, resulting in the release of the $4.1 million valuation allowance as of fiscal 2024. Of this valuation allowance which was released in fiscal 2024, $3.1 million related to deferred tax assets to be realized in the future years and the remainder benefited the Company during the year ended March 31, 2024. As of March 31, 2024, the Company’s valuation allowance was $1.2 million, which related to Arizona research and development credits, California alternative minimum tax credits, and capital loss carryforwards where it is not more likely than not that the deferred tax assets will be realized.
Pursuant to provisions under the Inflation Reduction Act, the Company purchased $24.0 million of transferable federal tax credits during the year ended March 31, 2024, from various counterparties. Such transferable federal tax credits were purchased at negotiated discounts, resulting in an income tax benefit of $1.9 million recorded during the fiscal year ended March 31, 2024. In connection with the purchase, the Company paid $11.0 million during the fiscal year ended March 31, 2024, and the remaining amounts owed to counterparties for the purchased credits are recorded within accrued expenses and other current liabilities within the consolidated balance sheets as of March 31, 2024.
As of March 31, 2024, the Company had net operating loss, or NOL, carryforwards for state tax purposes of $5.3 million. Portions of the NOL carryforwards will expire at various dates beginning in the tax year ending March 31, 2035. As of March 31, 2024, the Company had research and development tax credit carryforwards for state tax purposes of $7.7 million. The California state research and development tax credit carryforwards do not expire. The other state research and development tax credit carryforwards will expire at various dates beginning in the year ending March 31, 2032. Based on an assessment of the Company’s historical ownership changes through March 31, 2024, the Company does not anticipate a current limitation on the tax attributes.
As of March 31, 2024 and 2023, the Company had unrecognized tax benefits, or UTBs, of $9.3 million and $7.9 million, respectively. If realized, $9.1 million would impact the effective tax rate while the remainder would reduce deferred tax assets subject to a full valuation allowance. The Company does not expect any material changes to its UTBs within the next 12 months.
A reconciliation of the beginning and ending balances for gross UTBs is as follows (in thousands):
Fiscal Year Ended March 31,
202420232022
Beginning balance$7,913 $6,188 $3,162 
Additions for tax positions related to the current year1,404 2,210 2,995 
Additions for tax positions related to prior years112 — 36 
Reductions for tax positions related to prior years(119)(472)— 
Reductions related to a lapse of statute(8)(13)(5)
Ending balance$9,302 $7,913 $6,188 
Interest and penalties were not material during the fiscal years ended March 31, 2024, 2023, and 2022.
The Company files income tax returns in the U.S. federal and various state jurisdictions. With limited exceptions, all tax years for which the Company has filed a tax return remain subject to examination.
v3.24.1.1.u2
Commitment and Contingencies
 12 Months Ended
Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Minimum Guarantees
On October 8, 2021, the Company signed an amended agreement to revise and extend the existing partnership with U.S. News for six years. This agreement can be terminated after three years by either party. Under this amended agreement, the Company pays U.S. News a portion of the revenue generated with the end customers, subject to annual minimum guarantees. The annual minimum guarantees for all of the noncancelable periods have been paid as of March 31, 2024.
Other Contractual Commitments
Other contractual commitments relate mainly to third-party cloud infrastructure agreements and subscription agreements used to facilitate the Company’s operations.
The Company has a web hosting arrangement for 3 years ending December 31, 2024, with an annual commitment of $5.2 million. The Company made the final annual payment in January 2024 and no commitment remained as of March 31, 2024.
Indemnification
The Company enters into indemnification provisions under agreements with other companies in the ordinary course of business, including, but not limited to, clients, business partners, landlords, and other parties involved in the performance of the Company’s services. Pursuant to these arrangements, the Company has agreed to indemnify, hold harmless, and reimburse the indemnified party for certain losses suffered or incurred by the indemnified party as a result of the Company’s activities. The terms of these indemnification agreements are generally perpetual. The maximum potential amount of future payments the Company could be required to make under these agreements is not determinable. The Company has not incurred material costs to defend lawsuits or settle claims related to these indemnification agreements. The Company maintains commercial general liability insurance and product liability insurance that may offset certain of its potential liabilities under these indemnification provisions.
In addition, the Company has agreed to indemnify its officers and directors and certain key employees while they are serving in good faith in their respective capacities. To date, there have been no material claims under these indemnification provisions.
Legal Matters
Beginning in April 2024, the Company and certain of our directors and officers have been named in lawsuits in the United States District Court for the Northern District of California. The first lawsuit captioned Kissler v. Doximity, Inc., et al. (Apr. 17, 2024) is a putative securities class action brought on behalf of our investors from February 9, 2022 and April 1, 2024 and asserts claims against the Company, our CEO and CFO for misrepresentations and omissions about our growth and profitability. The second lawsuit captioned Dalton v. Doximity, Inc., et al. (May 9, 2024) is brought derivatively on behalf of the Company, and asserts claims for, among other things, breach of fiduciary duties, unjust enrichment, abuse of control, gross mismanagement, and waste against certain of our directors and officers on a similar basis to the securities lawsuit. Other similar lawsuits or proceedings may be initiated in the future. The defendants intend to defend vigorously against these actions. In light
of, among other things, the early stage of the litigation, the Company is unable to predict the outcome of these matters and is unable to reasonably estimate the amount or range of loss, if any, that could result from an unfavorable outcome,
From time to time, the Company has become involved in claims and other legal matters arising in the ordinary course of business. The Company investigates these claims as they arise. Although claims are inherently unpredictable, the Company is currently not aware of any other matters that, if determined adversely to the Company, would individually or taken together have a material effect on its results of operations, financial position, or cash flows. No loss contingencies were recorded for the fiscal years ended March 31, 2024, 2023, and 2022.
v3.24.1.1.u2
Leases
 12 Months Ended
Mar. 31, 2024
Leases [Abstract]  
Leases Leases
The Company has non-cancelable operating leases for the rental of office space with various expiration dates through 2030. During the fiscal year ended March 31, 2023, the office space lease in Irving, Texas with an approximately 8-year term commenced and a related right-of-use asset and lease liability of $14.8 million was recognized.
The components of lease expense were as follows (in thousands):
Fiscal Year Ended March 31,
202420232022
Operating lease cost$2,711 $2,592 $1,159 
Variable lease cost87 104 114 
Total lease cost$2,798 $2,696 $1,273 
Supplemental cash flow information related to leases was as follows (in thousands):
Fiscal Year Ended March 31,
202420232022
Cash paid for amounts included in measurement of lease liabilities—Operating cash flows$2,314 $718 $1,107 
Supplemental balance sheet information related to leases was as follows:
Fiscal Year Ended March 31,
202420232022
Weighted-average remaining lease term (in years)6.097.061.64
Weighted-average discount rate4.18 %4.18 %3.95 %
Maturities of operating lease liabilities as of March 31, 2024 were as follows (in thousands):
Operating Leases
2025$2,717 
20262,687 
20272,497 
20282,605 
20292,667 
Thereafter3,385 
Total future lease payments16,558 
Less: imputed interest(2,012)
Present value of lease liabilities$14,546 
v3.24.1.1.u2
Other Income, net
 12 Months Ended
Mar. 31, 2024
Other Income and Expenses [Abstract]  
Other Income, net Other Income, net
Other income, net consisted of the following (in thousands):
Fiscal Year Ended March 31,
202420232022
Interest income$21,664 $9,287 $2,148 
Net loss on sale of marketable securities(402)(1,093)(1,231)
Other income (expense)62 (146)(448)
Other income, net$21,324 $8,048 $469 
v3.24.1.1.u2
Employee Benefit Plan
 12 Months Ended
Mar. 31, 2024
Postemployment Benefits [Abstract]  
Employee Benefit Plan Employee Benefit PlanThe Company sponsors a 401(k) savings plan. All U.S. employees are eligible to participate in the 401(k) plan after meeting certain eligibility requirements. Participants may elect to have a portion of their salary deferred and contributed to the 401(k) plan up to the limit allowed by applicable income tax regulations. The Company matched a portion of employee contributions to the 401(k) plan totaling $2.1 million for each of the fiscal years ended March 31, 2024, 2023 and 2022, respectively. Both employee contributions and the Company’s matching contributions are fully vested upon contribution.
v3.24.1.1.u2
Segment and Geographic Information
 12 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Segment and Geographic Information Segment and Geographic Information
The Company considers operating segments to be components of the Company in which separate financial information is available and is evaluated regularly by the Company’s chief operating decision maker in deciding how to allocate resources and in assessing performance. The chief operating decision maker for the Company is the Chief Executive Officer. The chief operating decision maker reviews financial information on a consolidated basis to make decisions about how to allocate resources and how to measure the Company’s performance. As such, the Company has determined that it has one operating and reportable segment.
Substantially all of the Company’s long-lived assets were based in the United States as of March 31, 2024 and 2023. No country outside of the United States accounted for more than 10% of total revenue for the fiscal years ended March 31, 2024, 2023, and 2022. Substantially all of the Company’s revenue was derived in the United States for the fiscal years ended March 31, 2024, 2023, and 2022.
v3.24.1.1.u2
Subsequent Events
 12 Months Ended
Mar. 31, 2024
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
On May 1, 2024 the Company’s board of directors authorized a program to repurchase up to $500 million of the Company’s Class A common stock. The repurchase program has no expiration date and is subject to general business and market conditions and other investment opportunities, through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans. Immediately upon the repurchase of any shares of Class A common stock, such shares shall be retired by the Company and shall automatically return to the status of authorized but unissued shares of Class A common stock. All prior repurchase programs were completed as of April 2024.
v3.24.1.1.u2
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Pay vs Performance Disclosure      
Net income $ 147,582 $ 112,818 $ 154,783
v3.24.1.1.u2
Insider Trading Arrangements
 3 Months Ended 12 Months Ended
Mar. 31, 2024
shares
Mar. 31, 2024
shares
Trading Arrangements, by Individual    
Non-Rule 10b5-1 Arrangement Adopted false  
Rule 10b5-1 Arrangement Terminated false  
Non-Rule 10b5-1 Arrangement Terminated false  
Tim Cabral [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement  
On February 15, 2024, Mr. Tim Cabral, a director of the Company, adopted a Rule 10b5-1 Trading Plan that is intended to satisfy the affirmative defense conditions of Securities Exchange Act Rule 10b5-1(c). Mr. Cabral’s Rule 10b5-1 Trading Plan, which has a term from February 15, 2024 to February 28, 2025, provides for the exercise and sale of 80,000 shares of common stock pursuant to a series of market orders. The plan also provides for the sale of an indeterminate number of net vested shares of common stock pursuant to a market order. On the date of the execution of Mr. Cabral’s Rule 10b5-1 Trading Plan, Mr. Cabral did not hold any net vested shares. Mr. Cabral’s net vested share amount is currently indeterminable because it will change as additional equity awards vest or shares are subsequently purchased or sold.
Name Tim Cabral  
Title director  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date February 15, 2024  
Arrangement Duration 379 days  
Aggregate Available 80,000 80,000
v3.24.1.1.u2
Insider Trading Policies and Procedures
 12 Months Ended
Mar. 31, 2024
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.24.1.1.u2
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Mar. 31, 2024
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation and Principles of Consolidation
The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America, or U.S. GAAP.
Principles of Consolidation
The accompanying consolidated financial statements include the accounts of the Company and its consolidated subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.
Fiscal Year
Fiscal Year
The Company’s fiscal year ends on March 31st. Unless otherwise noted, all references to a particular year shall mean the Company’s fiscal year.
Use of Estimates
Use of Estimates
The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts stated in the consolidated financial statements and accompanying notes. These judgments, estimates, and assumptions are used for, but not limited to, revenue recognition, the fair values of acquired intangible assets and goodwill, the useful lives of long-lived assets, fair value of contingent earn-out consideration, and deferred income taxes. The Company bases its estimates on historical experience and on assumptions that management
considers reasonable. The Company assesses these estimates on a regular basis; however, actual results could differ from these estimates due to risks and uncertainties, including uncertainty in the current economic environment.
Concentration of Credit Risk
Concentrations of Credit Risk
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, and accounts receivable. The primary focus of the Company’s investment strategy is to preserve capital and meet liquidity requirements. The Company’s investment policy addresses the level of credit exposure by limiting the concentration in any one corporate issuer or sector and establishing a minimum allowable credit rating. To manage risk exposure, the Company invests cash equivalents and marketable securities in a variety of fixed income securities, including government and investment-grade debt securities and money market funds. The Company places its cash primarily in checking and money market accounts with reputable financial institutions. Deposits held with these financial institutions may exceed the amount of insurance provided on such deposits, if any.
Concentrations of credit risk with respect to accounts receivable are primarily limited to certain customers to which the Company makes substantial sales.
Revenue Recognition
Revenue Recognition
The Company’s revenue is primarily derived from the sale of subscriptions for the following solutions:
•Marketing Solutions: Hosting of customer-sponsored content on the Doximity platform and providing access to the Company’s professional database of healthcare professionals for referral or marketing purposes during the subscription period.
•Hiring Solutions: Providing customers access to the Company’s professional tools where recruiters can access the Company’s database of healthcare professionals, allowing customers to send messages for talent sourcing and to share job postings during the subscription period.
The Company recognizes revenue through the following five steps:
1)Identify the contract with a customer
The Company considers the terms and conditions of its contracts and the Company’s customary business practices in identifying its contracts under ASC 606. The Company determines it has a contract with a customer when the contract has been approved by both parties, it can identify each party’s rights regarding the services to be transferred and the payment terms for the services, it has determined that the customer has the ability and intent to pay, and the contract has commercial substance. At contract inception, the Company evaluates whether two or more contracts should be combined and accounted for as a single contract. The Company applies judgment in determining the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s payment history or, in the case of a new customer, the customer’s credit and financial information.
Contractual terms for Marketing Solutions contracts are generally 12 months or less. Customers are generally billed for a portion of the contract upon contract execution and then billed throughout the remainder of the contract based on various time-based milestones. Certain Marketing Solutions contracts are cancelable with a customary notice period. The Company does not refund customer payments, and customers are responsible for amounts invoiced where payment was not made upon
cancellation. The contractual term for Hiring Solutions contracts is generally 12 months. Hiring Solutions contracts are noncancelable and customers are billed in annual, quarterly, or monthly installments in advance of the service period.
2)Identify the performance obligations in the contract
Performance obligations promised in a contract are identified based on the services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available, and are distinct in the context of the contract, whereby the transfer of the services is separately identifiable from other promises in the contract.
Marketing Solutions customers may purchase a subscription for a specific module to be used over a defined period of time. These customers may purchase more than one module with either the same or different subscription periods. Modules are the core building blocks of the customers’ marketing plan and can be broadly categorized as Awareness, Interactivity, and Peer. As an example, the Company’s Awareness modules may include a sponsored article, short animated videos or other short-form content that is presented to the targeted member.
Each module targets a consistent number of Doximity members per month for the duration of the subscription period. The Company treats each subscription to a specific module as a distinct performance obligation because each module is capable of being distinct as the customer can benefit from the subscription to each module on their own and each subscription can be sold standalone. Furthermore, the subscriptions to individual modules are distinct in the context of the contract as (1) the Company is not integrating the services with other services promised in the contract into a bundle of services that represent a combined output, (2) the subscriptions to specific modules do not significantly modify or customize the subscription to another module, and (3) the specific modules are not highly interdependent or highly interrelated. The subscription to each module is treated as a series of distinct performance obligations because it is distinct and substantially the same, satisfied over time, and has the same measure of progress.
Marketing Solutions customers may also purchase integrated subscriptions for a fixed subscription fee that are not tied to a single module but allow customers to utilize any combination of modules during the subscription period, subject to limits on the total number of modules launched in a given period of time, active at any given time, and members targeted. These represent stand-ready obligations in that the delivery of the underlying sponsored content is within the control of the customer and the extent of use in any given period does not diminish the remaining services.
Subscriptions to Hiring Solutions provide customers access to the platform to place targeted job postings and send a fixed number of monthly messages. Each subscription is treated as a series of distinct performance obligations that are satisfied over time.
3)Determine the transaction price
The transaction price is determined based on the consideration the Company expects to be entitled to in exchange for transferring services to the customer. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue recognized under the contract will not occur.
The Company may generate sales through the use of third-party media agencies that are authorized to enter into contracts on behalf of an end customer. The Company acts as the principal in these transactions since it maintains control prior to transferring the service to the customer and is primarily responsible for the fulfillment that occurs through the Company’s platform. The Company records revenue for the amount to which it is entitled from the third-party media agencies as the Company does not know and expects not to know the price charged by the third-party media agencies to its customers.
Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental entities.
4)Allocate the transaction price to performance obligations in the contract
If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative stand-alone selling price (“SSP”). The determination of a SSP for each distinct performance obligation requires judgment. The Company determines SSP for performance obligations based on historical arrangements sold on a standalone basis. To the extent historical sales are not available or do not provide sufficient evidence, the Company estimates the SSP by taking into account overall pricing objectives, which take into consideration market conditions and customer-specific factors, including a review of internal discounting tables, the type of services being sold, and
other factors. The Company believes the use of its estimation approach and allocation of the transaction price on a relative SSP basis to each performance obligation results in revenue recognition in a manner consistent with the underlying economics of the transaction and the allocation principle included in ASC 606.
5)Recognize revenue when or as the Company satisfies a performance obligation
Revenue is recognized when or as control of the promised goods or service is transferred to the customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. Subscriptions represent a series of distinct goods or services because the performance obligations are satisfied over time as customers simultaneously receive and consume the benefits related to the services as the Company performs. In the case of module specific subscriptions, a consistent level of service is provided during each monthly period the sponsored content is available on the Company’s platform. The Company commences revenue recognition when the first content is launched on the platform for the initial monthly period and revenue is recognized over time as each subsequent content period is delivered. The Company’s obligation for its integrated subscriptions is to stand-ready throughout the subscription period; therefore, the Company considers an output method of time to measure progress towards satisfaction of its obligations with revenue commencing upon the beginning of the subscription period.
The Company treats Hiring Solutions subscriptions as a single performance obligation that represents a series of distinct performance obligations that is satisfied over time. Revenue recognition commences when the customer receives access to the services and is recognized ratably over the subscription period.
Other revenue consists of fees earned from the temporary staffing and permanent placement of healthcare professionals. Revenue is recognized when control of these services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services.
Contract Balances
Timing of revenue recognition may differ from the timing of invoicing to customers. Marketing Solutions customers are generally billed for a portion of the contract upon contract execution and then billed throughout the remainder of the contract based on various time-based milestones, starting when the tailored content is first shared on the Doximity platform. Hiring Solutions customers are generally billed periodically throughout the service period. The Company’s contracts do not contain significant financing components.
The Company records unbilled revenue when revenue is recognized in amounts for which it is contractually entitled but exceeds the amounts the Company has a right to bill as of the end of the period. The Company records unbilled revenue on the consolidated balance sheets within prepaid expenses and other current assets.
Deferred revenue consists of noncancelable customer billings or payments received in advance of revenue recognition. Deferred revenue balances are generally expected to be recognized within 12 months. Since the majority of the Company’s contracts have a duration of one year or less, the Company has elected not to disclose remaining performance obligations in accordance with the optional exemption in ASC 606. Remaining performance obligations for contracts with an original duration greater than one year are not material.
Deferred Contract Costs
The Company capitalizes sales compensation that is considered to be an incremental and recoverable cost of obtaining a contract with a customer. The Company pays commissions based on signing new arrangements with customers and upon renewals and expansion of existing contracts with customers.
Deferred compensation is generally amortized over the weighted-average contractual term, ranging from 7 months to 14 months. The portion of deferred compensation expected to be recognized within one year of the balance sheet date is included in prepaid expenses and other current assets and the remaining portion is recorded as other assets on the consolidated balance sheets. The amortization of deferred contract costs is included in sales and marketing expense in the consolidated statements of operations. Sales compensation that is not considered an incremental cost is expensed in the same period that it was earned.
Fair Value of Financial Instruments
Fair Value of Financial Instruments
Available-for-sale debt securities are recorded at fair value on the consolidated balance sheets. The carrying value of cash equivalents, accounts receivable, accounts payable, and accrued expenses and other current liabilities approximate their respective fair values due to their short maturities.
Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses a three-tier hierarchy, which prioritizes the inputs used in measuring fair value as follows:
Level 1—Inputs that are unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date.
Level 2—Inputs (other than quoted prices included in Level 1) that are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life.
Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities and which reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model.
Cash and Cash Equivalent and Marketable Securities
Cash and Cash Equivalents and Marketable Securities
The Company considers all highly liquid investments with maturities of three months or less at the time of acquisition to be cash equivalents.
The Company’s marketable securities portfolio includes only debt securities. Marketable debt securities that the Company may sell prior to maturity in response to changes in the Company's investment strategy, liquidity needs, or for other reasons are classified as available-for-sale. The Company's portfolio as of March 31, 2024 and 2023 includes only available-for-sale securities. Available-for-sale securities are stated at fair value as of each balance sheet date. Unrealized gains and losses for available-for-sale securities are included in accumulated other comprehensive income, a component of stockholders’ equity on the consolidated balance sheets. The Company’s marketable securities are available for use in current operations, even if the security matures beyond 12 months. The Company classifies its marketable securities as current assets on the consolidated balance sheets.
Periodically, the Company assesses the available-for-sale securities for impairment. An investment is impaired if the fair value of the investment is less than its amortized cost basis. The amortized cost of an investment will be written down to the fair value when the Company determines (i) it is more likely than not that management will be required to sell the impaired security before recovery of its amortized basis or (ii) management has the intention to sell the security. If neither of these conditions are met, the Company must determine whether the impairment is due to credit losses. A credit loss exists if the amortized cost basis of the security exceeds the present value of cash flows expected to be collected. All credit losses are recorded to other income, net, and any remaining unrealized losses are recorded to other comprehensive income (loss). If the Company has the intent to sell an available-for-sale security in an unrealized loss position or it is more likely than not that it will be required to sell the security prior to recovery of its amortized cost basis, any previously recorded allowance is reversed and the entire difference between the amortized cost basis of the security and its fair value is recognized in other income, net in the consolidated statements of operations.
The Company determines any realized gains or losses on the sale of marketable securities on a specific identification method and records them to other income, net. Amortization of premiums and accretion of discounts are recorded to other income, net.
Accounts Receivable and Allowance for Doubtful Accounts
Accounts Receivable and Allowance for Doubtful Accounts
Accounts receivable are recorded and carried at the original invoiced amount less an allowance for any potential uncollectible amounts. The Company estimates its allowance for doubtful accounts by evaluating the Company’s ability to collect outstanding receivable balances. The Company considers various factors, including the age of the balance, the creditworthiness of the customer, which is assessed based on ongoing credit evaluations, payment history and the customer’s current financial condition.
Property and Equipment
Property and Equipment
Property and equipment are stated at cost less accumulated depreciation. Depreciation and amortization expense is recorded on a straight-line basis over the estimated useful lives of the assets. The estimated useful life of each asset category is as follows:
Furniture and equipment
3-5 years
Computers and software3 years
Internal-use software development costs3 years
Leasehold improvementsShorter of useful life or remaining lease term
When assets are retired or otherwise disposed of, the cost and accumulated depreciation and amortization are written off, and any resulting gain or loss is recorded in the consolidated statements of operations in the period realized. Maintenance and repairs are expensed as incurred.
Internal-Use Software Development Costs
Internal-Use Software Development Costs
The Company capitalizes certain costs to develop its website, mobile applications and internal-use software when preliminary planning efforts are successfully completed, management has committed project resourcing, and it is probable that the project will be completed. Costs incurred prior to meeting these criteria, as well as costs incurred for training, maintenance, and minor modifications or enhancements, are expensed as incurred. Capitalized costs include personnel and related expenses for employees and costs of third-party contractors who are directly associated with and who devote time to internal-use software projects. Capitalization of these costs ceases once the project is substantially complete and the software is ready for its intended use.
Capitalized costs are included in property and equipment, net on the consolidated balance sheets and are amortized to cost of revenue over their estimated useful life.
Business Combinations
Business Combinations
When the Company acquires a business, the purchase consideration is allocated to the tangible and intangible assets acquired and liabilities assumed at their estimated fair values on the acquisition date. The excess of the fair value of purchase consideration over the values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair value of assets acquired and liabilities assumed, management makes significant estimates and assumptions, including the selection of valuation methodologies, estimates of future expected cash flows, future revenue growth, margins, customer retention rates, technology life, royalty rates, expected use of acquired assets, and discount rates. Acquisition costs, such as legal and consulting fees, are expensed as incurred.
Goodwill Intangible Assets and Long-Lived Assets
Goodwill, Intangible Assets, and Long-Lived Assets
Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired in a business combination. Goodwill is not amortized, but is tested for impairment at least annually in its fourth fiscal quarter or more frequently if events or changes in circumstances indicate that the asset may be impaired. The Company has one reporting unit and evaluates goodwill for impairment at the entity level. If the carrying value of the reporting unit exceeds its fair value, an impairment charge is recognized for the excess of the carrying value of the reporting unit over its fair value, limited to the amount of goodwill allocated to the reporting unit.
The intangible assets are stated at cost less accumulated amortization and are amortized on a straight-line basis over their estimated remaining economic lives. Amortization expense related to intangible assets is included in cost of revenue and sales and marketing expense.
Management evaluates the recoverability of the Company’s long-lived assets when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets held and used is measured by comparison of the carrying amount of an asset or an asset group to the estimated undiscounted future net cash flows expected to be generated by the asset or asset group. If the carrying value exceeds the estimated undiscounted future cash flows, an impairment loss is recognized for the amount by which the carrying amount exceeds the fair value for the asset or asset group.
Stock-Based Compensation
Stock-Based Compensation
The Company measures compensation expense for all stock-based awards based on the estimated fair value of the awards on the date of grant. Stock-based awards include stock options with service-based, performance-based and market-based vesting conditions, restricted stock units, or RSUs, performance-based restricted stock units, or PSUs, and warrants granted to employees, directors, and non-employees, as well as stock purchase rights granted to employees under the 2021 Employee Stock Purchase Plan, or ESPP. For awards that vest based on continued service, stock-based compensation is recognized on a straight-line basis over the requisite service period. For awards with performance-based vesting conditions, stock-based compensation expense is recognized using an accelerated attribution method from the time it is deemed probable that the vesting condition will be met through the time the service-based vesting condition has been achieved. The Company reassesses the probability of achieving the performance condition at each reporting date. For awards with market-based vesting conditions, stock-based compensation expense is recognized on an accelerated attribution basis over the requisite service period, even if the market condition is not satisfied.
The fair value of each RSU and PSU is based on the fair value of the Company’s Class A common stock, which is traded on the NYSE, on the date of grant.
The grant-date fair value of warrants, stock purchase rights granted to employees under the ESPP (“ESPP rights”), and stock options with service-based or performance-based vesting conditions is estimated using the Black-Scholes pricing model. The grant-date fair value of stock options with market-based vesting conditions is estimated using the Monte Carlo simulation model. The determination of the grant-date fair value using an option-pricing model is affected by the fair value of the Company’s common stock and assumptions regarding a number of other complex and subjective variables. These assumptions include the expected term of the award, the expected stock price volatility over the expected term of the award, the risk-free interest rate for the expected term of the award, and expected dividends.
Prior to the IPO, the Company granted stock options and warrants which were valued using the Black-Scholes pricing model, and after the IPO, the Company has granted warrants and ESPP rights which are valued using the Black-Scholes pricing model. The assumptions used in the Black-Scholes models are determined as follows:
Risk-Free Interest Rate—The risk-free interest rate is based on the implied yield available on U.S. Treasury zero-coupon issues with an equivalent expected term of the awards.
Expected Volatility—Prior to the IPO, when there was no public market for the Company’s common stock, the expected volatility was determined using the historical volatilities of several publicly listed peer companies over a period equivalent to the expected term of the awards. After the IPO, the expected volatility was determined using the historical stock volatilities of the common stock of the Company over a period equivalent to the duration of the offering period.
Expected Term—The expected term represents the period that the Company’s stock-based awards are expected to be outstanding. Prior to the IPO, the Company estimated the expected term for awards granted to employees using the simplified method as the Company’s historical share option exercise experience did not provide a reasonable basis upon which to estimate the expected term. The simplified method uses the average of the vesting period and contractual term. For awards granted to non-employees, the Company used the contractual term as the expected term. For ESPP rights, the expected term is equivalent to the offering period.
Expected Dividend Yield—The Company has not historically issued dividends and does not currently expect to issue a dividend in the future.
Fair Value Per Share of the Company’s Common Stock—Because the Company’s common stock was not publicly traded until the completion of the IPO, the Company’s board of directors considered numerous objective and subjective factors to determine the fair value of the Company’s common stock at each meeting during which awards were approved. These factors included, but were not limited to (i) contemporaneous third-party valuations of common stock; (ii) the rights and preferences of the Company’s preferred stock relative to common stock; (iii) the lack of marketability of common stock; (iv) developments in the business; and (v) the likelihood of achieving a liquidity event, such as an IPO or sale of the Company, given prevailing market conditions. After the IPO, the Company used the closing stock price of the Company’s Class A common stock, which is traded on the NYSE.
Leases
Leases
The Company determines if a contract is or contains a lease at inception. All of the Company’s leases are operating leases. Operating lease right-of-use assets and lease liabilities with a lease term greater than 12 months are recognized at the lease commencement date based on the present value of the lease payments over the lease term, which would include extension or termination options if it is reasonably certain that such options will be exercised, discounted using the Company’s incremental borrowing rate. As none of the Company’s leases provide an implicit rate, the incremental borrowing rate used is estimated based on what the Company would be required to pay for a collateralized loan over a similar term as the lease. The Company amortizes the present value of each right-of-use asset on a straight-line basis over its remaining lease term. Leases are included in operating lease right-of-use assets, operating lease liabilities, current, and operating lease liabilities, non-current on the consolidated balance sheets.
Our lease agreements may contain variable costs such as common area maintenance, insurance, property tax, and other operating costs. Variable lease costs are expensed as incurred in the consolidated statements of operations. The Company does not separate non-lease components from lease components for its facility asset portfolio.
Net Income Per Share Attributable to Common Stockholders
Net Income Per Share Attributable to Common Stockholders
The Company applies the two-class method to compute basic and diluted net income per share attributable to common stockholders when shares meet the definition of participating securities.
Prior to the automatic conversion of the Company’s outstanding redeemable convertible preferred stock to Class B common stock in connection with the IPO, the Company had redeemable convertible preferred stock. The redeemable convertible preferred stock was considered to be a participating security because the holders were each entitled to receive noncumulative dividends out of any funds legally available, when and if declared by the Company’s board of directors, payable prior and in preference to any dividends on any shares of common stock based on the proportion of common stock that would be held if all shares of redeemable convertible preferred stock were converted at the then-effective conversion rate. Redeemable convertible preferred stock was therefore included in the computation of earnings per share under the two-class method. Holders of redeemable convertible preferred stock do not have a contractual obligation to share in the Company’s losses.
Under the two-class method, net income attributable to common stockholders is determined by allocating undistributed earnings, calculated as net income, less (i) current period redeemable convertible preferred stock noncumulative dividends and (ii) earnings attributable to participating securities.
Basic net income per share attributable to common stockholders is computed by dividing the net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period.
Diluted net income per share attributable to common stockholders is computed by dividing net income attributable to common stockholders by the weighted-average number of common shares outstanding and the effect of potentially dilutive securities outstanding during the period. Potentially dilutive securities include stock options, RSUs, PSUs, ESPP, redeemable convertible preferred stock, and common stock warrants. The dilutive effect of stock options, common stock warrants, RSUs, PSUs, and the ESPP is reflected in diluted earnings per share using the treasury stock method.
The rights, including the liquidation and dividend rights, of the holders of Class A and Class B common stock are identical, except with respect to voting, converting, and transfer rights. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis to each class of common stock and the resulting basic and diluted net loss per share attributable to common stockholders are, therefore, the same for both Class A and Class B common stock on both an individual and combined basis.
Income Taxes
Income Taxes
Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Deferred income tax assets and liabilities are measured using enacted tax rates for the year in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the consolidated statements of operations in the period that includes the enactment date. A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized.
The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized. The Company’s policy is to classify interest and penalties associated with uncertain tax positions, if any, as a component of its provision for (benefit from) income taxes.
Legal Contingencies
Legal Contingencies
The Company may be subject to claims and other legal matters from time to time. The Company records a liability when it believes that it is both probable that a loss has been incurred and the amount can be reasonably estimated. When the Company believes that a loss is reasonably possible, it will disclose an estimate of the possible loss or range of loss. The Company expects to periodically evaluate developments in the legal matters that could affect the amount of liability that the Company accrues, if any, and adjust as appropriate. Until the final resolution of any such matter for which the Company may record a liability, there may be a loss exposure in excess of the liability recorded and such amount could be significant. Legal fees are expensed as incurred, other than amounts capitalized as deferred offering costs, as discussed above.
Cost of Revenue
Cost of Revenue
Cost of revenue consists primarily of expenses related to cloud hosting, personnel-related expenses for the Company’s customer success team, costs for third-party platform access, information-technology and software-related services and contractors, and other services used in connection with delivery and support of the Company’s platform. Cost of revenue also includes the amortization of internal-use software development costs, editorial and other content-related expenses, and allocated overhead.
Research and Development
Research and Development
Research and development expense is primarily comprised of personnel-related expenses associated with the Company’s engineering and product teams who are responsible for building new products and improving existing products. Research and development expense also includes costs for third-party services and contractors, information technology and software-related costs, and allocated overhead. Other than internal-use software development costs that qualify for capitalization, research and development costs are expensed as incurred.
Restructuring
Restructuring
Restructuring expense primarily consists of severance payments, employee benefits, and stock-based compensation in relation to the modification of equity awards associated with the management-approved plan. One-time employee termination benefits are recognized at the time of communication of the terms of the plan to the employees, unless future service is required, in which case the costs are recognized over the future service period. The Company records these costs in restructuring expense in the consolidated statements of operations.
Advertising Expenses
Advertising Expenses
Advertising costs are expensed as incurred and are included in sales and marketing expense in the consolidated statements of operations.
Accounting Pronouncements Not Yet Adopted
Accounting Pronouncements Not Yet Adopted
In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires disclosure of incremental segment information on an annual and interim basis. This ASU is effective for the Company for its fiscal year beginning April 1, 2024, and for interim periods within the fiscal year beginning April 1, 2025, with early adoption permitted, and requires retrospective application to all prior periods presented in the financial statements. The Company is currently evaluating the impact of this ASU on its consolidated financial statements.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which includes amendments that further enhance annual income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The amendments are effective for the
Company’s annual periods beginning April 1, 2025, with early adoption permitted, and may be applied either prospectively or retrospectively. The Company is currently evaluating the impact of this ASU on its consolidated financial statements.
v3.24.1.1.u2
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Mar. 31, 2024
Accounting Policies [Abstract]  
Significant Customers Representing 10% or more of Revenue or Accounts Receivable, Net The Company’s significant customers that represented 10% or more of accounts receivable, net for the periods presented were as follows:
Accounts Receivable, Net
As of March 31,
20242023
Customer A*18 %
Customer B15 %*
_______________
* Less than 10%
Schedule of Property and Equipment The estimated useful life of each asset category is as follows:
Furniture and equipment
3-5 years
Computers and software3 years
Internal-use software development costs3 years
Leasehold improvementsShorter of useful life or remaining lease term
Property and equipment, net consisted of the following (in thousands):
As of March 31,
20242023
Furniture and equipment$2,833 $2,816 
Computers and software745 745 
Leasehold improvements992 888 
Internal-use software development costs26,827 20,405 
Total property and equipment31,397 24,854 
Less: accumulated depreciation and amortization(19,079)(13,575)
Total property and equipment, net$12,318 $11,279 
v3.24.1.1.u2
Revenue Recognition (Tables)
 12 Months Ended
Mar. 31, 2024
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
Revenue consisted of the following (in thousands):
Fiscal Year Ended March 31,
202420232022
Subscription$450,071 $389,739 $319,298 
Other25,351 29,313 24,250 
Total revenue$475,422 $419,052 $343,548 
Changes in Deferred Revenue Balance
Changes in the Company’s deferred revenue balances were as follows (in thousands):
As of March 31,
20242023
Beginning balance$105,436 $84,985 
Additions, net, during the period469,342 439,503 
Revenue recognized from the beginning balance(104,437)(83,231)
Revenue recognized from contracts invoiced during the period(370,985)(335,821)
Ending balance$99,356 $105,436 
v3.24.1.1.u2
Investments (Tables)
 12 Months Ended
Mar. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Cost, Gross Unrealized Gains and Losses, and Fair Value of Investments
The cost, gross unrealized gains and losses, and fair value of investments are as follows (in thousands):
As of March 31, 2024
Cost or
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair Value
Cash equivalents:
Corporate notes and bonds$1,180 — — $1,180 
Money market funds83,049 — — 83,049 
Total cash equivalents84,229 — — 84,229 
Marketable securities:
Asset-backed securities121 — — 121 
Commercial paper70,804 1 (50)70,755 
Corporate notes and bonds225,880 133 (191)225,822 
Sovereign bonds7,749 — (73)7,676 
U.S. government and agency securities365,123 2 (3,384)361,741 
Total marketable securities669,677 136 (3,698)666,115 
Total cash equivalents and marketable securities$753,906 $136 $(3,698)$750,344 
The cost, gross unrealized gains and losses, and fair value of investments were as follows (in thousands):
As of March 31, 2023
Cost or
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair Value
Cash equivalents:
Money market funds$126,275 $— $— $126,275 
Total cash equivalents126,275 — — 126,275 
Marketable securities:
Asset-backed securities7,271 — (71)7,200 
Certificates of deposit27,380 — (80)27,300 
Commercial paper78,609 6 (126)78,489 
Corporate notes and bonds119,241 49 (778)118,512 
Sovereign bonds7,744 — (360)7,384 
U.S. government and agency securities461,584 12 (17,509)444,087 
Total marketable securities701,829 67 (18,924)682,972 
Total cash equivalents and marketable securities$828,104 $67 $(18,924)$809,247 
Contractual Maturities of Available-For-Sale Debt Securities
As of March 31, 2024, the contractual maturities of the Company’s available-for-sale debt securities were as follows (in thousands):
Fair Value
Due within one year$543,915 
Due in one year to two years123,259 
Asset-backed securities121 
Total$667,295 
Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations.
Gross Unrealized Losses and Fair Values of Investments in an Unrealized Loss Position
The following tables summarize the gross unrealized losses and fair values of investments in an unrealized loss position, aggregated by security type and length of time that the individual securities have been in a continuous unrealized loss position (in thousands):
As of March 31, 2024
Less than 12 months12 months or greaterTotal
Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses
Asset-backed securities$— $— $121 $— $121 $— 
Commercial paper67,336 (50)— — 67,336 (50)
Corporate notes and bonds131,443 (191)— — 131,443 (191)
Sovereign bonds— — 7,676 (73)7,676 (73)
U.S. government and agency securities81,130 (139)259,784 (3,245)340,914 (3,384)
Total$279,909 $(380)$267,581 $(3,318)$547,490 $(3,698)
As of March 31, 2023
Less than 12 months12 months or greaterTotal
Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses
Asset-backed securities$2,601 $(12)$4,599 $(59)$7,200 $(71)
Certificates of deposit27,018 (80)— — 27,018 (80)
Commercial paper70,681 (126)— — 70,681 (126)
Corporate notes and bonds42,575 (113)58,766 (665)101,341 (778)
Sovereign bonds— — 7,384 (360)7,384 (360)
U.S. government and agency securities— — 439,748 (17,509)439,748 (17,509)
Total$142,875 $(331)$510,497 $(18,593)$653,372 $(18,924)
v3.24.1.1.u2
Fair Value Measurements (Tables)
 12 Months Ended
Mar. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value, Assets Measured on Recurring Basis
The following tables present the fair value hierarchy for the Company’s assets and liabilities measured at fair value on a recurring basis (in thousands):
As of March 31, 2024
Level 1Level 2Level 3Total
Cash equivalents:
Corporate notes and bonds$— $1,180 $— $1,180 
Money market funds83,049 — — 83,049 
Total cash equivalents83,049 1,180 — 84,229 
Marketable securities:
Asset-backed securities— 121 — 121 
Commercial paper— 70,755 — 70,755 
Corporate notes and bonds— 225,822 — 225,822 
Sovereign bonds— 7,676 — 7,676 
U.S. government and agency securities355,804 5,937 — 361,741 
Total marketable securities355,804 310,311 — 666,115 
Total cash equivalents and marketable securities$438,853 $311,491 $— $750,344 
Liabilities:
Contingent earn-out consideration liability$— $— $16,813 $16,813 
Total contingent earn-out consideration liability$— $— $16,813 $16,813 
As of March 31, 2023
Level 1Level 2Level 3Total
Cash equivalents:
Money market funds$126,275 $— $— $126,275 
Total cash equivalents126,275 — — 126,275 
Marketable securities:
Asset-backed securities— 7,200 — 7,200 
Certificates of deposit— 27,300 — 27,300 
Commercial paper— 78,489 — 78,489 
Corporate notes and bonds— 118,512 — 118,512 
Sovereign bonds— 7,384 — 7,384 
U.S. government and agency securities439,748 4,339 — 444,087 
Total marketable securities439,748 243,224 — 682,972 
Total cash equivalents and marketable securities$566,023 $243,224 $— $809,247 
Liabilities:
Contingent earn-out consideration liability$— $— $21,862 $21,862 
Total contingent earn-out consideration liability$— $— $21,862 $21,862 
Fair Value, Liabilities Measured on Recurring Basis
The following tables present the fair value hierarchy for the Company’s assets and liabilities measured at fair value on a recurring basis (in thousands):
As of March 31, 2024
Level 1Level 2Level 3Total
Cash equivalents:
Corporate notes and bonds$— $1,180 $— $1,180 
Money market funds83,049 — — 83,049 
Total cash equivalents83,049 1,180 — 84,229 
Marketable securities:
Asset-backed securities— 121 — 121 
Commercial paper— 70,755 — 70,755 
Corporate notes and bonds— 225,822 — 225,822 
Sovereign bonds— 7,676 — 7,676 
U.S. government and agency securities355,804 5,937 — 361,741 
Total marketable securities355,804 310,311 — 666,115 
Total cash equivalents and marketable securities$438,853 $311,491 $— $750,344 
Liabilities:
Contingent earn-out consideration liability$— $— $16,813 $16,813 
Total contingent earn-out consideration liability$— $— $16,813 $16,813 
As of March 31, 2023
Level 1Level 2Level 3Total
Cash equivalents:
Money market funds$126,275 $— $— $126,275 
Total cash equivalents126,275 — — 126,275 
Marketable securities:
Asset-backed securities— 7,200 — 7,200 
Certificates of deposit— 27,300 — 27,300 
Commercial paper— 78,489 — 78,489 
Corporate notes and bonds— 118,512 — 118,512 
Sovereign bonds— 7,384 — 7,384 
U.S. government and agency securities439,748 4,339 — 444,087 
Total marketable securities439,748 243,224 — 682,972 
Total cash equivalents and marketable securities$566,023 $243,224 $— $809,247 
Liabilities:
Contingent earn-out consideration liability$— $— $21,862 $21,862 
Total contingent earn-out consideration liability$— $— $21,862 $21,862 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
The following table summarizes the changes in the contingent earn-out consideration liability (in thousands):
Fiscal Year Ended March 31,
20242023
Beginning fair value$21,862 $— 
Additions in the period— 21,134 
Change in fair value951 728 
Payments(6,000)— 
Ending fair value$16,813 $21,862 
v3.24.1.1.u2
Property and Equipment, Net (Tables)
 12 Months Ended
Mar. 31, 2024
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment The estimated useful life of each asset category is as follows:
Furniture and equipment
3-5 years
Computers and software3 years
Internal-use software development costs3 years
Leasehold improvementsShorter of useful life or remaining lease term
Property and equipment, net consisted of the following (in thousands):
As of March 31,
20242023
Furniture and equipment$2,833 $2,816 
Computers and software745 745 
Leasehold improvements992 888 
Internal-use software development costs26,827 20,405 
Total property and equipment31,397 24,854 
Less: accumulated depreciation and amortization(19,079)(13,575)
Total property and equipment, net$12,318 $11,279 
v3.24.1.1.u2
Accrued Expenses and Other Current Liabilities (Tables)
 12 Months Ended
Mar. 31, 2024
Payables and Accruals [Abstract]  
Schedule of accrued expenses and other liabilities, current
Accrued expenses and other current liabilities consisted of the following (in thousands):
As of March 31,
20242023
Accrued commissions$5,404 $5,733 
Accrued payroll, bonus, and related expenses8,513 8,739 
Employee contributions under employee stock purchase plan496 589 
Rebate liabilities995 3,348 
Sales and other tax liabilities2,978 1,504 
Current portion of contingent earn-out consideration liability5,918 5,920 
Share repurchase liability
4,000 748 
Transferable federal tax credits payable
11,040 — 
Other4,359 4,664 
Total accrued expenses and other current liabilities$43,703 $31,245 
v3.24.1.1.u2
Business Combinations (Tables)
 12 Months Ended
Mar. 31, 2024
Business Combination and Asset Acquisition [Abstract]  
Purchase Consideration Allocation The purchase consideration allocation was as follows (in thousands):
Assets acquired:
Accounts receivable$447 
Customer relationships27,200 
Developed technology820 
Trademark700 
Total assets acquired$29,167 
Liabilities assumed:
Deferred revenue$2,925 
Other liabilities633 
Net assets acquired, excluding goodwill25,609 
Goodwill$49,025 
Total purchase consideration$74,634 
v3.24.1.1.u2
Intangible Assets (Tables)
 12 Months Ended
Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets, Net
Intangible assets, net consisted of the following (in thousands):
As of March 31,
20242023
Customer relationships$37,069 $37,069 
Other intangibles1,531 1,531 
Total intangible assets38,600 38,600 
Less: accumulated amortization(11,283)(6,764)
Total intangible assets, net$27,317 $31,836 
Future Amortization Expense
As of March 31, 2024, future amortization expense is as follows (in thousands):
Fiscal Years Ending March 31,Amount
2025$4,245 
20264,012 
20274,010 
20284,010 
20294,010 
Thereafter7,030 
Total future amortization expense$27,317 
Changes in Carrying Amount of Goodwill
The changes in the carrying amount of goodwill for the fiscal year ended March 31, 2023 were as follows (in thousands):
Fiscal Year Ended March 31, 2023
Balance, beginning of period$18,915 
Goodwill acquired49,025 
Balance, end of period$67,940 
v3.24.1.1.u2
Equity (Tables)
 12 Months Ended
Mar. 31, 2024
Equity [Abstract]  
Common Stock Reserved for Issuance
The Company has shares of common stock reserved for issuance as follows (in thousands):
March 31, 2024
Common stock warrants516 
2010 Plan
Options outstanding14,842 
2021 Plan
Awards outstanding
2,519 
Shares available for future grant40,823 
2021 ESPP8,002 
Options outstanding outside the Plans2,638 
Total69,340 
Stock Option Activity
Stock option activities within the Plans as well as outside of the Plans were as follows:
Number of Shares
(in thousands)		Weighted-Average
Exercise Price		Average Remaining Contractual Term
(in years)		Aggregate Intrinsic Value (in thousands)
Balance, March 31, 202322,407 $4.39 6.56$627,187 
Options exercised(4,019)3.19 
Options forfeited or expired(908)5.60 
Balance, March 31, 202417,480 4.60 5.72389,931 
Vested and exercisable as of March 31, 202411,896 3.26 5.21281,377 
Vested and expected to vest as of March 31, 202417,480 4.60 5.72389,931 
Stock Options Valuation Assumptions
The fair value of each option on the date of grant was determined using the Black-Scholes option-pricing model with the assumptions set forth in the following table:
Fiscal Year Ended March 31, 2022
Fair value of common stock
$18.41 - $21.41
Volatility
46.5% - 47.0%
Risk-free interest rate
0.77% - 1.02%
Expected term (in years)
5.00 - 6.09
Expected dividend—%
Restricted Stock Unit Activity
The following table summarizes RSU activity (in thousands, except per share information):
Number of SharesWeighted-
Average
Grant Date Fair Value
Unvested balance, March 31, 20231,951 $40.08 
Granted1,300 29.72 
Vested(701)37.96 
Forfeited(457)41.85 
Unvested balance, March 31, 20242,093 33.79 
Stock-Based Compensation Expense
Total stock-based compensation expense recognized in the consolidated statement of operations was as follows (in thousands):
Fiscal Year Ended March 31,
202420232022
Cost of revenue$9,479 $9,634 $4,979 
Research and development11,978 12,583 7,065 
Sales and marketing16,857 16,939 8,108 
General and administrative9,116 8,678 11,290 
Restructuring
3,646 — — 
Total stock-based compensation expense$51,076 $47,834 $31,442 
v3.24.1.1.u2
Net Income Per Share Attributable to Common Stockholders (Tables)
 12 Months Ended
Mar. 31, 2024
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
The following table presents the reconciliation of the numerator and denominator for calculating basic and diluted net income per share (in thousands, except per share data):
Fiscal Year Ended March 31,
202420232022
Numerator
Net income$147,582 $112,818 $154,783 
Less: undistributed earnings attributable to participating securities— — (21,526)
Net income attributable to Class A and Class B common stockholders, basic and diluted
$147,582 $112,818 $133,257 
Denominator
Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders, basic
190,172 193,176 163,484 
Dilutive effect of stock options15,346 20,027 27,290 
Dilutive effect of common stock warrants72 139 234 
Dilutive effect of other share-based awards144 83 9 
Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders, diluted
205,734 213,425 191,017 
Net income per share attributable to Class A and Class B common stockholders:
Basic$0.78 $0.58 $0.82 
Diluted$0.72 $0.53 $0.70 
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
Certain potentially dilutive securities have been excluded from the calculation of diluted net income per share during the applicable periods because their inclusion would have been anti-dilutive (in thousands):
Fiscal Year Ended March 31,
202420232022
Other share-based awards883 572 217 
Common stock warrants516 516 247 
Total1,399 1,088 464 
v3.24.1.1.u2
Restructuring (Tables)
 12 Months Ended
Mar. 31, 2024
Restructuring and Related Activities [Abstract]  
Activities Related to the Restructuring
The following table summarizes the activities related to the Restructuring Plan as of March 31, 2024 (in thousands):
Restructuring Expense
Liability as of July 1, 2023
$— 
Charges4,258 
Payments(4,258)
Liability as of March 31, 2024
$— 
v3.24.1.1.u2
Income Taxes (Tables)
 12 Months Ended
Mar. 31, 2024
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit)
The Company’s provision for (benefit from) income taxes consisted of the following (in thousands):
Fiscal Year Ended March 31,
202420232022
Current provision:
Federal$36,394 $3,515 $160 
State9,819 3,498 309 
Total46,213 7,013 469 
Deferred provision (benefit):
Federal(5,088)11,834 (34,852)
State(3,505)1,491 (6,395)
Total(8,593)13,325 (41,247)
Total provision for (benefit from) income taxes$37,620 $20,338 $(40,778)
Schedule of Effective Income Tax Rate Reconciliation
The following is a reconciliation of the income tax expense at the federal statutory tax rate to the Company’s provision for (benefit from) income taxes (in thousands):
Fiscal Year Ended March 31,
202420232022
Income taxes at statutory rate$38,893 $27,963 $23,941 
State income taxes, net of federal benefit12,130 6,757 5,503 
Research and development credits(3,817)(5,076)(8,332)
Stock-based compensation(6,734)(14,841)(71,780)
Change in valuation allowance(4,060)504 1,878 
Section 162(m) limitation3,410 4,782 7,260 
Transferable federal tax credits
(1,920)— — 
Other(282)249 752 
Total provision for (benefit from) income taxes$37,620 $20,338 $(40,778)
Schedule of Deferred Tax Assets and Liabilities
Components of deferred tax assets and liabilities were as follows (in thousands):
As of March 31,
20242023
Deferred tax assets:
Accruals and deferred revenue$4,372 $2,744 
Net operating loss carryforwards1,160 1,733 
Research & development credit carryforwards3,855 7,230 
Operating lease liabilities3,683 3,968 
Acquisition and other related expense273 298 
Stock-based compensation expense7,048 6,492 
Unrealized loss902 4,785 
Capitalized research and development31,927 19,825 
Gross deferred tax assets53,220 47,075 
Less: valuation allowance(1,175)(5,236)
Deferred tax assets, net of valuation allowance52,045 41,839 
Deferred tax liabilities:
Property and equipment(2,879)(2,734)
Operating lease right-of-use assets(3,122)(3,506)
Intangible assets(976)(692)
Deferred tax liabilities(6,977)(6,932)
Net deferred tax assets$45,068 $34,907 
Schedule of Unrecognized Tax Benefits Roll Forward
A reconciliation of the beginning and ending balances for gross UTBs is as follows (in thousands):
Fiscal Year Ended March 31,
202420232022
Beginning balance$7,913 $6,188 $3,162 
Additions for tax positions related to the current year1,404 2,210 2,995 
Additions for tax positions related to prior years112 — 36 
Reductions for tax positions related to prior years(119)(472)— 
Reductions related to a lapse of statute(8)(13)(5)
Ending balance$9,302 $7,913 $6,188 
v3.24.1.1.u2
Leases (Tables)
 12 Months Ended
Mar. 31, 2024
Leases [Abstract]  
Components of Lease Expense and Supplemental Cash Flow/Balance Sheet Information Related to Leases
The components of lease expense were as follows (in thousands):
Fiscal Year Ended March 31,
202420232022
Operating lease cost$2,711 $2,592 $1,159 
Variable lease cost87 104 114 
Total lease cost$2,798 $2,696 $1,273 
Supplemental cash flow information related to leases was as follows (in thousands):
Fiscal Year Ended March 31,
202420232022
Cash paid for amounts included in measurement of lease liabilities—Operating cash flows$2,314 $718 $1,107 
Supplemental balance sheet information related to leases was as follows:
Fiscal Year Ended March 31,
202420232022
Weighted-average remaining lease term (in years)6.097.061.64
Weighted-average discount rate4.18 %4.18 %3.95 %
Maturities of Lease Liabilities
Maturities of operating lease liabilities as of March 31, 2024 were as follows (in thousands):
Operating Leases
2025$2,717 
20262,687 
20272,497 
20282,605 
20292,667 
Thereafter3,385 
Total future lease payments16,558 
Less: imputed interest(2,012)
Present value of lease liabilities$14,546 
v3.24.1.1.u2
Other Income, net (Tables)
 12 Months Ended
Mar. 31, 2024
Other Income and Expenses [Abstract]  
Schedule of Other Income, Net
Other income, net consisted of the following (in thousands):
Fiscal Year Ended March 31,
202420232022
Interest income$21,664 $9,287 $2,148 
Net loss on sale of marketable securities(402)(1,093)(1,231)
Other income (expense)62 (146)(448)
Other income, net$21,324 $8,048 $469 
v3.24.1.1.u2
Description of Business (Details)
$ / shares in Units, $ in Millions
 1 Months Ended
Jun. 08, 2021
Jun. 30, 2021
USD ($)
$ / shares
shares
Subsidiary, Sale of Stock [Line Items]    
Conversion of stock conversion ratio   1
Capitalized deferred offering costs | $   $ 5.5
Forward split ratio 2  
Initial Public Offering Including Over Allotment Option    
Subsidiary, Sale of Stock [Line Items]    
Number of shares issued and sold in initial public offering (in shares)   22,505,750
Initial public offering price (in dollars per share) | $ / shares   $ 26.00
Aggregate net proceeds from initial public offering | $   $ 548.5
Over-Allotment Option    
Subsidiary, Sale of Stock [Line Items]    
Number of shares issued and sold in initial public offering (in shares)   3,495,000
Redeemable convertible preferred stock    
Subsidiary, Sale of Stock [Line Items]    
Conversion of stock, shares converted (in shares)   76,286,618
v3.24.1.1.u2
Summary of Significant Accounting Policies- Narrative (Details)
$ in Millions
 12 Months Ended
Mar. 31, 2024
USD ($)
reporting_unit
Mar. 31, 2023
USD ($)
Mar. 31, 2022
USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Number of reporting units | reporting_unit 1    
Advertising expense | $ $ 2.5 $ 2.6 $ 2.8
Minimum | Deferred Commissions For Marketing Solutions Contracts And For Hiring Solutions Renewal Contracts      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Amortization period 7 months    
Maximum | Deferred Commissions For Marketing Solutions Contracts And For Hiring Solutions Renewal Contracts      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Amortization period 14 months    
Subscription, Hiring Solutions      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Contractual terms 12 months    
Subscription, Marketing Solutions      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Contractual terms 12 months    
v3.24.1.1.u2
Summary of Significant Accounting Policies- Significant Customers Representing 10% or more of Revenue or Accounts Receivable, Net (Details) - Accounts Receivable - Customer Concentration Risk
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Customer A    
Concentration Risk [Line Items]    
Concentration risk, percentage   18.00%
Customer B    
Concentration Risk [Line Items]    
Concentration risk, percentage 15.00%  
v3.24.1.1.u2
Summary of Significant Accounting Policies - Property, Plant and Equipment (Details)
Mar. 31, 2024
Furniture and equipment | Minimum  
Property, Plant and Equipment [Line Items]  
Property and equipment useful life 3 years
Furniture and equipment | Maximum  
Property, Plant and Equipment [Line Items]  
Property and equipment useful life 5 years
Computers and software  
Property, Plant and Equipment [Line Items]  
Property and equipment useful life 3 years
Internal-use software development costs  
Property, Plant and Equipment [Line Items]  
Property and equipment useful life 3 years
v3.24.1.1.u2
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Disaggregation of Revenue [Line Items]      
Revenue $ 475,422 $ 419,052 $ 343,548
Subscription      
Disaggregation of Revenue [Line Items]      
Revenue 450,071 389,739 319,298
Other      
Disaggregation of Revenue [Line Items]      
Revenue $ 25,351 $ 29,313 $ 24,250
v3.24.1.1.u2
Revenue Recognition - Deferred Revenue Contract Balance (Details) - USD ($)
$ in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Change in Contract with Customer, Liability [Abstract]    
Beginning balance $ 105,436 $ 84,985
Additions, net, during the period 469,342 439,503
Revenue recognized from the beginning balance (104,437) (83,231)
Revenue recognized from contracts invoiced during the period (370,985) (335,821)
Ending balance $ 99,356 $ 105,436
v3.24.1.1.u2
Revenue Recognition - Narrative (Details) - USD ($)
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Disaggregation of Revenue [Line Items]      
Additions, net, during the period $ 469,342,000 $ 439,503,000  
Unbilled revenue 2,300,000 2,200,000  
Capitalized contract acquisition costs 8,600,000 8,500,000 $ 9,600,000
Amortization of deferred contract costs 8,871,000 8,785,000 9,755,000
Deferred contract costs, impairment losses 0 0 $ 0
Deferred contract costs, current 5,000,000 5,100,000  
Deferred contract costs, noncurrent $ 400,000 600,000  
AMiON      
Disaggregation of Revenue [Line Items]      
Additions, net, during the period   $ 2,900,000  
v3.24.1.1.u2
Investments - Cost, Gross Unrealized Gains and Losses, and Fair Value of Investments (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Mar. 31, 2023
Debt Securities, Available-for-sale [Line Items]    
Cost or Amortized Cost $ 753,906 $ 828,104
Gross Unrealized Gains 136 67
Gross Unrealized Losses (3,698) (18,924)
Fair Value 750,344 809,247
Cash equivalents    
Debt Securities, Available-for-sale [Line Items]    
Cost or Amortized Cost 84,229 126,275
Gross Unrealized Gains 0 0
Gross Unrealized Losses 0 0
Fair Value 84,229 126,275
Cash equivalents | Corporate notes and bonds    
Debt Securities, Available-for-sale [Line Items]    
Cost or Amortized Cost 1,180  
Gross Unrealized Gains 0  
Gross Unrealized Losses 0  
Fair Value 1,180  
Cash equivalents | Money market funds    
Debt Securities, Available-for-sale [Line Items]    
Cost or Amortized Cost 83,049 126,275
Gross Unrealized Gains 0 0
Gross Unrealized Losses 0 0
Fair Value 83,049 126,275
Marketable Securities    
Debt Securities, Available-for-sale [Line Items]    
Cost or Amortized Cost 669,677 701,829
Gross Unrealized Gains 136 67
Gross Unrealized Losses (3,698) (18,924)
Fair Value 666,115 682,972
Marketable Securities | Corporate notes and bonds    
Debt Securities, Available-for-sale [Line Items]    
Cost or Amortized Cost 225,880 119,241
Gross Unrealized Gains 133 49
Gross Unrealized Losses (191) (778)
Fair Value 225,822 118,512
Marketable Securities | Asset-backed securities    
Debt Securities, Available-for-sale [Line Items]    
Cost or Amortized Cost 121 7,271
Gross Unrealized Gains 0 0
Gross Unrealized Losses 0 (71)
Fair Value 121 7,200
Marketable Securities | Certificates of deposit    
Debt Securities, Available-for-sale [Line Items]    
Cost or Amortized Cost   27,380
Gross Unrealized Gains   0
Gross Unrealized Losses   (80)
Fair Value   27,300
Marketable Securities | Commercial paper    
Debt Securities, Available-for-sale [Line Items]    
Cost or Amortized Cost 70,804 78,609
Gross Unrealized Gains 1 6
Gross Unrealized Losses (50) (126)
Fair Value 70,755 78,489
Marketable Securities | Sovereign bonds    
Debt Securities, Available-for-sale [Line Items]    
Cost or Amortized Cost 7,749 7,744
Gross Unrealized Gains 0 0
Gross Unrealized Losses (73) (360)
Fair Value 7,676 7,384
Marketable Securities | U.S. government and agency securities    
Debt Securities, Available-for-sale [Line Items]    
Cost or Amortized Cost 365,123 461,584
Gross Unrealized Gains 2 12
Gross Unrealized Losses (3,384) (17,509)
Fair Value $ 361,741 $ 444,087
v3.24.1.1.u2
Investments - Contractual Maturities of Available-For-Sale Debt Securities (Details)
$ in Thousands
Mar. 31, 2024
USD ($)
Investments, Debt and Equity Securities [Abstract]  
Due within one year $ 543,915
Due in one year to two years 123,259
Asset-backed securities 121
Total $ 667,295
v3.24.1.1.u2
Investments - Narrative (Details) - USD ($)
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]    
Accrued interest $ 3,800,000 $ 2,800,000
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] Prepaid expenses and other current assets  
Unrealized losses related to debt securities $ 3,698,000 18,924,000
Debt securities impairments loss 0 0
Debt securities credit losses 0 0
Fair value of debt securities which no credit losses were recognized $ 547,500,000 $ 653,400,000
v3.24.1.1.u2
Investments - Gross Unrealized Losses and Fair Values of Investments in an Unrealized Loss Position (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Mar. 31, 2023
Fair Value    
Less than 12 months $ 279,909 $ 142,875
12 months or greater 267,581 510,497
Total, fair value 547,490 653,372
Gross Unrealized Losses    
Less than 12 months (380) (331)
12 months or greater (3,318) (18,593)
Total, unrealized losses (3,698) (18,924)
Asset-backed securities    
Fair Value    
Less than 12 months 0 2,601
12 months or greater 121 4,599
Total, fair value 121 7,200
Gross Unrealized Losses    
Less than 12 months 0 (12)
12 months or greater 0 (59)
Total, unrealized losses 0 (71)
Certificates of deposit    
Fair Value    
Less than 12 months   27,018
12 months or greater   0
Total, fair value   27,018
Gross Unrealized Losses    
Less than 12 months   (80)
12 months or greater   0
Total, unrealized losses   (80)
Commercial paper    
Fair Value    
Less than 12 months 67,336 70,681
12 months or greater 0 0
Total, fair value 67,336 70,681
Gross Unrealized Losses    
Less than 12 months (50) (126)
12 months or greater 0 0
Total, unrealized losses (50) (126)
Corporate notes and bonds    
Fair Value    
Less than 12 months 131,443 42,575
12 months or greater 0 58,766
Total, fair value 131,443 101,341
Gross Unrealized Losses    
Less than 12 months (191) (113)
12 months or greater 0 (665)
Total, unrealized losses (191) (778)
Sovereign bonds    
Fair Value    
Less than 12 months 0 0
12 months or greater 7,676 7,384
Total, fair value 7,676 7,384
Gross Unrealized Losses    
Less than 12 months 0 0
12 months or greater (73) (360)
Total, unrealized losses (73) (360)
U.S. government and agency securities    
Fair Value    
Less than 12 months 81,130 0
12 months or greater 259,784 439,748
Total, fair value 340,914 439,748
Gross Unrealized Losses    
Less than 12 months (139) 0
12 months or greater (3,245) (17,509)
Total, unrealized losses $ (3,384) $ (17,509)
v3.24.1.1.u2
Fair Value Measurements - Assets and Liabilities at Fair Value (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Mar. 31, 2023
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities $ 750,344 $ 809,247
Cash equivalents    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 84,229 126,275
Marketable Securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 666,115 682,972
Corporate notes and bonds | Cash equivalents    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 1,180  
Corporate notes and bonds | Marketable Securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 225,822 118,512
Money market funds | Cash equivalents    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 83,049 126,275
Asset-backed securities | Marketable Securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 121 7,200
Certificates of deposit | Marketable Securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities   27,300
Sovereign bonds | Marketable Securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 7,676 7,384
U.S. government and agency securities | Marketable Securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 361,741 444,087
Fair Value, Recurring    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 750,344 809,247
Liabilities:    
Contingent earn-out consideration liability 16,813 21,862
Total contingent earn-out consideration liability 16,813 21,862
Fair Value, Recurring | Cash equivalents    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 84,229 126,275
Fair Value, Recurring | Marketable Securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 666,115 682,972
Fair Value, Recurring | Corporate notes and bonds | Cash equivalents    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 1,180  
Fair Value, Recurring | Corporate notes and bonds | Marketable Securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 225,822 118,512
Fair Value, Recurring | Commercial paper | Marketable Securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 70,755 78,489
Fair Value, Recurring | Money market funds | Cash equivalents    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 83,049 126,275
Fair Value, Recurring | Asset-backed securities | Marketable Securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 121 7,200
Fair Value, Recurring | Certificates of deposit | Marketable Securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities   27,300
Fair Value, Recurring | Sovereign bonds | Marketable Securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 7,676 7,384
Fair Value, Recurring | U.S. government and agency securities | Marketable Securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 361,741 444,087
Level 1 | Fair Value, Recurring    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 438,853 566,023
Liabilities:    
Contingent earn-out consideration liability 0 0
Total contingent earn-out consideration liability 0 0
Level 1 | Fair Value, Recurring | Cash equivalents    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 83,049 126,275
Level 1 | Fair Value, Recurring | Marketable Securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 355,804 439,748
Level 1 | Fair Value, Recurring | Corporate notes and bonds | Cash equivalents    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 0  
Level 1 | Fair Value, Recurring | Corporate notes and bonds | Marketable Securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 0 0
Level 1 | Fair Value, Recurring | Commercial paper | Marketable Securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 0 0
Level 1 | Fair Value, Recurring | Money market funds | Cash equivalents    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 83,049 126,275
Level 1 | Fair Value, Recurring | Asset-backed securities | Marketable Securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 0 0
Level 1 | Fair Value, Recurring | Certificates of deposit | Marketable Securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities   0
Level 1 | Fair Value, Recurring | Sovereign bonds | Marketable Securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 0 0
Level 1 | Fair Value, Recurring | U.S. government and agency securities | Marketable Securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 355,804 439,748
Level 2 | Fair Value, Recurring    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 311,491 243,224
Liabilities:    
Contingent earn-out consideration liability 0 0
Total contingent earn-out consideration liability 0 0
Level 2 | Fair Value, Recurring | Cash equivalents    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 1,180 0
Level 2 | Fair Value, Recurring | Marketable Securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 310,311 243,224
Level 2 | Fair Value, Recurring | Corporate notes and bonds | Cash equivalents    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 1,180  
Level 2 | Fair Value, Recurring | Corporate notes and bonds | Marketable Securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 225,822 118,512
Level 2 | Fair Value, Recurring | Commercial paper | Marketable Securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 70,755 78,489
Level 2 | Fair Value, Recurring | Money market funds | Cash equivalents    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 0 0
Level 2 | Fair Value, Recurring | Asset-backed securities | Marketable Securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 121 7,200
Level 2 | Fair Value, Recurring | Certificates of deposit | Marketable Securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities   27,300
Level 2 | Fair Value, Recurring | Sovereign bonds | Marketable Securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 7,676 7,384
Level 2 | Fair Value, Recurring | U.S. government and agency securities | Marketable Securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 5,937 4,339
Level 3 | Fair Value, Recurring    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 0 0
Liabilities:    
Contingent earn-out consideration liability 16,813 21,862
Total contingent earn-out consideration liability 16,813 21,862
Level 3 | Fair Value, Recurring | Cash equivalents    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 0 0
Level 3 | Fair Value, Recurring | Marketable Securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 0 0
Level 3 | Fair Value, Recurring | Corporate notes and bonds | Cash equivalents    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 0  
Level 3 | Fair Value, Recurring | Corporate notes and bonds | Marketable Securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 0 0
Level 3 | Fair Value, Recurring | Commercial paper | Marketable Securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 0 0
Level 3 | Fair Value, Recurring | Money market funds | Cash equivalents    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 0 0
Level 3 | Fair Value, Recurring | Asset-backed securities | Marketable Securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 0 0
Level 3 | Fair Value, Recurring | Certificates of deposit | Marketable Securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities   0
Level 3 | Fair Value, Recurring | Sovereign bonds | Marketable Securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities 0 0
Level 3 | Fair Value, Recurring | U.S. government and agency securities | Marketable Securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents and marketable securities $ 0 $ 0
v3.24.1.1.u2
Fair Value Measurements - Contingent Earn-Out Consideration Liability (Details) - USD ($)
$ in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Fair Value Disclosures [Abstract]    
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Sales and marketing  
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Beginning fair value $ 21,862 $ 0
Additions in the period 0 21,134
Change in fair value 951 728
Payments (6,000) 0
Ending fair value $ 16,813 $ 21,862
v3.24.1.1.u2
Property and Equipment, Net - Total Property and Equipment, Net (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Mar. 31, 2023
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 31,397 $ 24,854
Less: accumulated depreciation and amortization (19,079) (13,575)
Property and equipment, net 12,318 11,279
Furniture and equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 2,833 2,816
Computers and software    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 745 745
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 992 888
Internal-use software development costs    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 26,827 $ 20,405
v3.24.1.1.u2
Property and Equipment, Net - Narrative (Details) - USD ($)
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Property, Plant and Equipment [Abstract]      
Depreciation and amortization expense $ 5,700,000 $ 5,500,000 $ 4,000,000
Amortization of internal-use software development costs 5,000,000 4,800,000 3,500,000
Capitalized internal-use software development costs 6,800,000 5,300,000 4,300,000
Impairment charges $ 0 $ 0 $ 0
v3.24.1.1.u2
Accrued Expenses and Other Current Liabilities (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Mar. 31, 2023
Payables and Accruals [Abstract]    
Accrued commissions $ 5,404 $ 5,733
Accrued payroll, bonus, and related expenses 8,513 8,739
Employee contributions under employee stock purchase plan 496 589
Rebate liabilities 995 3,348
Sales and other tax liabilities 2,978 1,504
Current portion of contingent earn-out consideration liability 5,918 5,920
Share repurchase liability 4,000 748
Transferable federal tax credits payable 11,040 0
Other 4,359 4,664
Accrued expenses and other current liabilities $ 43,703 $ 31,245
v3.24.1.1.u2
Business Combinations - Narrative (Details) - USD ($)
$ / shares in Units, $ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended
Apr. 01, 2022
May 31, 2022
Jun. 30, 2023
Mar. 31, 2024
Restricted Stock Units (RSUs)        
Business Acquisition [Line Items]        
Granted (in shares)       1,300,000
Granted (in dollars per share)       $ 29.72
Award vesting period       4 years
AMiON        
Business Acquisition [Line Items]        
Consideration transferred $ 74.6      
Payments to acquire businesses 53.5      
Contingent earn-out consideration liability 21.1      
Contingent earn-out consideration (up to) 24.0      
Contingent earn-out consideration liability, minimum guarantee 4.0      
Contingent earn-out consideration liability, subject to performance $ 20.0      
Contingent earnout consideration performance period 4 years      
Business combination contingent consideration liability payable period 4 years      
Contingent consideration liability settled     $ 6.0  
Award vesting period   4 years    
AMiON | Customer relationships        
Business Acquisition [Line Items]        
Finite-lived intangibles, useful life 9 years      
AMiON | Trademark        
Business Acquisition [Line Items]        
Finite-lived intangibles, useful life 3 years      
AMiON | Developed technology        
Business Acquisition [Line Items]        
Finite-lived intangibles, useful life 18 months      
AMiON | Restricted Stock Units (RSUs)        
Business Acquisition [Line Items]        
Granted (in shares)   93,458    
Granted (in dollars per share)   $ 32.99    
v3.24.1.1.u2
Business Combinations - Purchase Consideration Allocation (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Mar. 31, 2023
Apr. 01, 2022
Mar. 31, 2022
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract]        
Goodwill $ 67,940 $ 67,940   $ 18,915
AMiON        
Assets acquired:        
Accounts receivable     $ 447  
Total assets acquired     29,167  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract]        
Deferred revenue     2,925  
Other liabilities     633  
Net assets acquired, excluding goodwill     25,609  
Goodwill     49,025  
Total purchase consideration     74,634  
AMiON | Customer relationships        
Assets acquired:        
Finite-lived intangibles     27,200  
AMiON | Developed technology        
Assets acquired:        
Finite-lived intangibles     820  
AMiON | Trademark        
Assets acquired:        
Finite-lived intangibles     $ 700  
v3.24.1.1.u2
Intangible Assets - Intangible Assets, Net (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Mar. 31, 2023
Finite-Lived Intangible Assets [Line Items]    
Total intangible assets $ 38,600 $ 38,600
Less: accumulated amortization (11,283) (6,764)
Intangible assets, net 27,317 31,836
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Total intangible assets 37,069 37,069
Other intangibles    
Finite-Lived Intangible Assets [Line Items]    
Total intangible assets $ 1,531 $ 1,531
v3.24.1.1.u2
Intangible Assets - Narrative (Details) - USD ($)
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]      
Amortization of intangible assets $ 4,600,000 $ 4,800,000 $ 1,000,000
Goodwill, period change 0    
Goodwill 67,940,000 67,940,000 18,915,000
Goodwill impairment $ 0 $ 0 $ 0
v3.24.1.1.u2
Intangible Assets - Future Amortization Expense (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]    
2025 $ 4,245  
2026 4,012  
2027 4,010  
2028 4,010  
2029 4,010  
Thereafter 7,030  
Intangible assets, net $ 27,317 $ 31,836
v3.24.1.1.u2
Intangible Assets - Changes in Carrying Amount of Goodwill (Details)
$ in Thousands
 12 Months Ended
Mar. 31, 2023
USD ($)
Goodwill [Roll Forward]  
Balance, beginning of period $ 18,915
Goodwill acquired 49,025
Balance, end of period $ 67,940
v3.24.1.1.u2
Redeemable Convertible Preferred Stock (Details)
$ in Millions
 1 Months Ended
Jun. 08, 2021
Jun. 30, 2021
USD ($)
shares
Mar. 31, 2024
shares
Mar. 31, 2023
shares
Mar. 31, 2022
shares
Mar. 31, 2021
shares
Temporary Equity [Line Items]            
Conversion of stock conversion ratio   1        
Reclassifications of temporary to permanent equity | $   $ 81.5        
Redeemable convertible preferred stock issued (in shares)     0 0    
Redeemable convertible preferred stock outstanding (in shares)     0 0 0 76,287,000
Common Class B            
Temporary Equity [Line Items]            
Conversion of stock, shares issued (in shares)   76,286,618        
Conversion of stock conversion ratio 1          
v3.24.1.1.u2
Equity - Narrative (Details)
$ / shares in Units, $ in Thousands
 1 Months Ended 5 Months Ended 12 Months Ended 18 Months Ended
Aug. 15, 2024
shares
Oct. 26, 2023
USD ($)
Jun. 08, 2021
vote
$ / shares
shares
Oct. 31, 2021
USD ($)
$ / shares
shares
Jun. 30, 2021
$ / shares
shares
Mar. 31, 2024
USD ($)
$ / shares
shares
Mar. 31, 2024
USD ($)
$ / shares
shares
Mar. 31, 2023
USD ($)
$ / shares
shares
Mar. 31, 2022
USD ($)
$ / shares
Mar. 31, 2018
shares
Oct. 31, 2023
shares
Jun. 01, 2023
USD ($)
Oct. 28, 2022
USD ($)
May 12, 2022
USD ($)
Mar. 31, 2017
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                              
Preferred stock, authorized (in shares)         100,000,000 100,000,000 100,000,000 100,000,000              
Preferred stock, par value (in dollars per share) | $ / shares         $ 0.001 $ 0.001 $ 0.001 $ 0.001              
Preferred stock, outstanding (in shares)           0 0 0              
Preferred stock, issued (in shares)           0 0 0              
Common stock, authorized (in shares)           1,500,000,000 1,500,000,000 1,500,000,000              
Common stock, par value (in dollars per share) | $ / shares           $ 0.001 $ 0.001 $ 0.001              
Conversion of stock conversion ratio         1                    
Common stock, outstanding (in shares)           186,562,000 186,562,000 193,941,000              
Stock repurchase program, authorized amount | $   $ 70,000                   $ 340,000 $ 340,000 $ 340,000  
Repurchase and retirement of common stock (in shares)           1,119,014         13,790,535        
Stock repurchase program, period in force   12 months                          
Repurchase and retirement of common stock | $           $ 29,700 $ 285,460 $ 86,072 $ 2,698            
Stock repurchase program, remaining authorized repurchase amount | $           $ 40,300 40,300                
Excise tax incurred | $             $ 1,500                
Common stock warrants (in shares)           516,000 516,000                
Stock based compensation expense | $             $ 51,076 $ 47,834 31,442            
Unamortized compensation expense, weighted average period of recognition             2 years 6 months 18 days                
Options outstanding (in shares)           17,480,000 17,480,000 22,407,000              
Aggregate intrinsic value of options | $             $ 99,500 $ 118,400 $ 521,600            
Weighted-average grant-date fair value of options granted (in dollars per share) | $ / shares                 $ 10.73            
Unamortized compensation expense, option | $           $ 22,400 $ 22,400                
Stock options                              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                              
Award vesting period             4 years                
Expiration period from the date of grant             10 years                
Restricted Stock Units (RSUs)                              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                              
Unamortized compensation expense excluding option | $           64,300 $ 64,300                
Unamortized compensation expense, weighted average period of recognition             2 years 8 months 15 days                
Award vesting period             4 years                
Total fair value of vested equity instruments | $             $ 19,900 $ 11,400 $ 2,500            
Granted (in shares)             1,300,000                
Vested (in shares)             701,000                
Performance-Based Restricted Stock Units                              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                              
Unamortized compensation expense excluding option | $           $ 2,300 $ 2,300                
Granted (in shares)             373,494                
Performance-Based Restricted Stock Units | Forecast                              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                              
Vested (in shares) 65,544                            
2021 Plan                              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                              
Maximum annual increase of shares reserved for future issuance as a percentage of common stock outstanding         5.00%                    
2021 ESPP                              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                              
Maximum annual increase of shares reserved for future issuance as a percentage of common stock outstanding           1.00% 1.00%                
Maximum annual increase of shares reserved for future issuance (in shares)           6,750,000 6,750,000                
Options outstanding outside the Plans                              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                              
Options granted (in shares)                   4,682,582          
Options exercised (in shares)           2,044,582 2,044,582                
Options outstanding (in shares)           2,638,000 2,638,000                
Contract With U.S. News & World Report, L.P.                              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                              
Common stock warrants (in shares)                             250,000
Exercise price called by warrants (in dollars per share) | $ / shares                             $ 0.72
Warrants exercised in period (in shares)             125,000 125,000              
Warrants exercised in period , intrinsic value | $             $ 2,700 $ 4,000              
U.S. News Warrant                              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                              
Common stock warrants (in shares)       516,000                      
Exercise price called by warrants (in dollars per share) | $ / shares       $ 12.56                      
Warrants and rights outstanding, term       10 years                      
Warrants and rights outstanding, vesting period       6 years 5 months 23 days                      
Warrants and rights outstanding | $       $ 34,700                      
Stock based compensation expense | $             5,400 $ 5,400 $ 2,600            
Unamortized compensation expense excluding option | $           $ 21,300 $ 21,300                
Unamortized compensation expense, weighted average period of recognition             4 years                
U.S. News Warrant | Measurement Input, Share Price                              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                              
Warrant, measurement input       76.50                      
U.S. News Warrant | Measurement Input, Price Volatility                              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                              
Warrant, measurement input       0.469                      
U.S. News Warrant | Measurement Input, Risk Free Interest Rate                              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                              
Warrant, measurement input       0.0161                      
U.S. News Warrant | Measurement Input, Expected Term                              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                              
Warrants and rights outstanding, term       10 years                      
U.S. News Warrant | Measurement Input, Expected Dividend Rate                              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                              
Warrant, measurement input       0                      
U.S. News Warrant | Share-Based Payment Arrangement, Subsequent to Tranche One                              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                              
Warrants and rights outstanding, vesting period       6 years                      
Common Class A                              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                              
Common stock, authorized (in shares)     1,000,000,000                        
Common stock, par value (in dollars per share) | $ / shares     $ 0.001                        
Common stock, number of votes per share | vote     1                        
Common stock, outstanding (in shares)           124,097,865 124,097,865                
Common Class B                              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                              
Common stock, authorized (in shares)     500,000,000                        
Common stock, par value (in dollars per share) | $ / shares     $ 0.001                        
Common stock, number of votes per share | vote     10                        
Conversion of stock conversion ratio     1                        
Common stock, outstanding (in shares)           62,463,784 62,463,784                
Common Stock                              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                              
Conversion of stock (in shares)     85,523,836                        
v3.24.1.1.u2
Equity - Common Stock Reserved for Issuance (Details) - shares
Mar. 31, 2024
Mar. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Common stock warrants (in shares) 516,000  
Options outstanding (in shares) 17,480,000 22,407,000
Total (in shares) 69,340,000  
2010 Plan    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Options outstanding (in shares) 14,842,000  
2021 Plan    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Units outstanding (in shares) 2,519,000  
Shares available for future grant (in shares) 40,823,000  
2021 ESPP    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Shares available for future grant (in shares) 8,002,000  
Options outstanding outside the plans    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Options outstanding (in shares) 2,638,000  
v3.24.1.1.u2
Equity - Stock Option Activity (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Number of Shares (in thousands)    
Beginning balance (in shares) 22,407  
Options exercised (in shares) (4,019)  
Options forfeited and expired (in shares) (908)  
Ending balance (in shares) 17,480 22,407
Vested and exercisable, at end of period (in shares) 11,896  
Vested and expected to vest, at end of period (in shares) 17,480  
Weighted-Average Exercise Price    
Beginning balance (in dollars per share) $ 4.39  
Exercised (in dollars per share) 3.19  
Forfeited or expired (in dollars per share) 5.60  
Ending balance (in dollars per share) 4.60 $ 4.39
Weighted average exercise price, vested and exercisable at period end (in dollars per share) 3.26  
Weighted average exercise price, vested and expected to vest at period end (in dollars per share) $ 4.60  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]    
Average remaining contractual term, outstanding 5 years 8 months 19 days 6 years 6 months 21 days
Average remaining contractual term, vested and exercisable at period end 5 years 2 months 15 days  
Average remaining contractual term, vested and expected to vest at period end 5 years 8 months 19 days  
Aggregate intrinsic value, outstanding $ 389,931 $ 627,187
Aggregate intrinsic value, vested and exercisable at period end 281,377  
Aggregate intrinsic value, vested and expected to vest at period end $ 389,931  
v3.24.1.1.u2
Equity - Stock Options Valuation Assumptions (Details) - Stock options
 12 Months Ended
Mar. 31, 2022
$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Expected volatility, minimum 46.50%
Expected volatility, maximum 47.00%
Risk free interest rate, minimum 0.77%
Risk free interest rate, maximum 1.02%
Expected dividend 0.00%
Minimum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Fair value of common stock (in dollars per share) $ 18.41
Expected term (in years) 5 years
Maximum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Fair value of common stock (in dollars per share) $ 21.41
Expected term (in years) 6 years 1 month 2 days
v3.24.1.1.u2
Equity - Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs)
shares in Thousands
 12 Months Ended
Mar. 31, 2024
$ / shares
shares
Number of Shares  
Beginning balance (in shares) | shares 1,951
Granted (in shares) | shares 1,300
Vested (in shares) | shares (701)
Forfeited (in shares) | shares (457)
Ending balance (in shares) | shares 2,093
Weighted- Average Grant Date Fair Value  
Beginning balance (in dollars per share) | $ / shares $ 40.08
Granted (in dollars per share) | $ / shares 29.72
Vested (in dollars per share) | $ / shares 37.96
Forfeited (in dollars per share) | $ / shares 41.85
Ending balance (in dollars per share) | $ / shares $ 33.79
v3.24.1.1.u2
Equity - Stock-Based Compensation Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock based compensation expense $ 51,076 $ 47,834 $ 31,442
Cost of revenue      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock based compensation expense 9,479 9,634 4,979
Research and development      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock based compensation expense 11,978 12,583 7,065
Sales and marketing      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock based compensation expense 16,857 16,939 8,108
General and administrative      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock based compensation expense 9,116 8,678 11,290
Restructuring      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock based compensation expense $ 3,646 $ 0 $ 0
v3.24.1.1.u2
Net Income Per Share Attributable to Common Stockholders- Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Numerator      
Net income $ 147,582 $ 112,818 $ 154,783
Undistributed earnings attributable to participating securities, basic 0 0 (21,526)
Undistributed earnings attributable to participating securities, diluted 0 0 (21,526)
Net income attributable to Class A and Class B common stockholders, basic 147,582 112,818 133,257
Net income attributable to Class A and Class B common stockholders, diluted $ 147,582 $ 112,818 $ 133,257
Denominator      
Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders, basic (in shares) 190,172 193,176 163,484
Dilutive effect of assumed exercise of common stock warrants (in shares) 72 139 234
Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders, diluted (in shares) 205,734 213,425 191,017
Net income per share attributable to Class A and Class B common stockholders:      
Basic (in dollars per share) $ 0.78 $ 0.58 $ 0.82
Diluted (in dollars per share) $ 0.72 $ 0.53 $ 0.70
Stock options      
Denominator      
Dilutive effect of share-based payment (in shares) 15,346 20,027 27,290
Other share-based awards      
Denominator      
Dilutive effect of share-based payment (in shares) 144 83 9
v3.24.1.1.u2
Net Income Per Share Attributable to Common Stockholders -Antidilutive Securities Excluded from Computation of Net Income Per Share (Details) - shares
shares in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share, amount (in shares) 1,399 1,088 464
Other share-based awards      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share, amount (in shares) 883 572 217
Common stock warrants      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share, amount (in shares) 516 516 247
v3.24.1.1.u2
Restructuring - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 8 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2023
Mar. 31, 2024
Mar. 31, 2024
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Restructuring Cost and Reserve [Line Items]            
Number of positions eliminated as a percentage of total positions   10.00%        
Restructuring charges $ 7,900     $ 7,936 $ 0 $ 0
Employee Severance            
Restructuring Cost and Reserve [Line Items]            
Restructuring charges 4,300   $ 4,258      
Stock-Based Compensation Expense, Accelerated Vesting Of Equity Awards            
Restructuring Cost and Reserve [Line Items]            
Restructuring charges $ 3,600          
v3.24.1.1.u2
Restructuring - Activities Related to the Restructuring (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2023
Mar. 31, 2024
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Restructuring Reserve [Roll Forward]          
Liability as of July 1, 2023 $ 0 $ 0      
Restructuring charges 7,900   $ 7,936 $ 0 $ 0
Payments   (4,258)      
Liability as of March 31, 2024   0 $ 0    
Employee Severance          
Restructuring Reserve [Roll Forward]          
Restructuring charges $ 4,300 $ 4,258      
v3.24.1.1.u2
Income Taxes - Schedule of Income Tax Expense Benefit (Details) - USD ($)
$ in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Current provision:      
Federal $ 36,394 $ 3,515 $ 160
State 9,819 3,498 309
Total 46,213 7,013 469
Deferred provision (benefit):      
Federal (5,088) 11,834 (34,852)
State (3,505) 1,491 (6,395)
Total (8,593) 13,325 (41,247)
Provision for (benefit from) income taxes $ 37,620 $ 20,338 $ (40,778)
v3.24.1.1.u2
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($)
$ in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Income Tax Disclosure [Abstract]      
Income taxes at statutory rate $ 38,893 $ 27,963 $ 23,941
State income taxes, net of federal benefit 12,130 6,757 5,503
Research and development credits (3,817) (5,076) (8,332)
Stock-based compensation (6,734) (14,841) (71,780)
Change in valuation allowance (4,060) 504 1,878
Section 162(m) limitation 3,410 4,782 7,260
Transferable federal tax credits (1,920) 0 0
Other (282) 249 752
Provision for (benefit from) income taxes $ 37,620 $ 20,338 $ (40,778)
v3.24.1.1.u2
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Mar. 31, 2023
Deferred tax assets:    
Accruals and deferred revenue $ 4,372 $ 2,744
Net operating loss carryforwards 1,160 1,733
Research & development credit carryforwards 3,855 7,230
Operating lease liabilities 3,683 3,968
Acquisition and other related expense 273 298
Stock-based compensation expense 7,048 6,492
Unrealized loss 902 4,785
Capitalized research and development 31,927 19,825
Gross deferred tax assets 53,220 47,075
Less: valuation allowance (1,175) (5,236)
Deferred tax assets, net of valuation allowance 52,045 41,839
Deferred tax liabilities:    
Property and equipment (2,879) (2,734)
Operating lease right-of-use assets (3,122) (3,506)
Intangible assets (976) (692)
Deferred tax liabilities (6,977) (6,932)
Net deferred tax assets $ 45,068 $ 34,907
v3.24.1.1.u2
Income Taxes - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Mar. 31, 2021
Tax Credit Carryforward [Line Items]        
Valuation allowance $ 1,175 $ 5,236    
Decrease in valuation allowance 4,100      
Transferable federal tax credits, amount purchased 24,000      
Transferable federal tax credits 1,920 0 $ 0  
Transferable federal tax credits, amount paid 11,000      
Net operating loss carryforwards, state 5,300      
Unrecognized tax benefits 9,302 $ 7,913 $ 6,188 $ 3,162
Unrecognized tax benefits that would impact the effective tax rate 9,100      
Deferred Tax Assets To Be Realized In The Future Years        
Tax Credit Carryforward [Line Items]        
Decrease in valuation allowance 3,100      
State and Local Jurisdiction        
Tax Credit Carryforward [Line Items]        
Tax credit carryforwards, research $ 7,700      
v3.24.1.1.u2
Income Taxes - Summary of Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Beginning balance $ 7,913 $ 6,188 $ 3,162
Additions for tax positions related to the current year 1,404 2,210 2,995
Additions for tax positions related to prior years 112 0 36
Reductions for tax positions related to prior years (119) (472) 0
Reductions related to a lapse of statute (8) (13) (5)
Ending balance $ 9,302 $ 7,913 $ 6,188
v3.24.1.1.u2
Commitment and Contingencies (Details) - USD ($)
 12 Months Ended
Oct. 08, 2021
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]        
Partnership agreement, extension period 6 years      
Partnerships agreement, period before termination is permitted 3 years      
Hosting arrangement period   3 years    
Hosting arrangement annual commitment   $ 5,200,000    
Hosting arrangement remaining commitment   0    
Loss contingency   $ 0 $ 0 $ 0
v3.24.1.1.u2
Leases - Narrative (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Mar. 31, 2023
Lessee, Lease, Description [Line Items]    
Operating lease, term of contract   8 years
Operating lease right-of-use assets $ 12,332 $ 13,819
Present value of lease liabilities $ 14,546  
Office Space Lease In Irving, Texas    
Lessee, Lease, Description [Line Items]    
Operating lease right-of-use assets   14,800
Present value of lease liabilities   $ 14,800
v3.24.1.1.u2
Leases - Components of Lease Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Leases [Abstract]      
Operating lease cost $ 2,711 $ 2,592 $ 1,159
Variable lease cost 87 104 114
Total lease cost $ 2,798 $ 2,696 $ 1,273
v3.24.1.1.u2
Leases - Supplemental Cash Flow Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Leases [Abstract]      
Cash paid for amounts included in measurement of lease liabilities—Operating cash flows $ 2,314 $ 718 $ 1,107
v3.24.1.1.u2
Leases - Supplemental Balance Sheet Information (Details)
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Leases [Abstract]      
Weighted-average remaining lease term (in years) 6 years 1 month 2 days 7 years 21 days 1 year 7 months 20 days
Weighted-average discount rate 4.18% 4.18% 3.95%
v3.24.1.1.u2
Leases - Maturities of Lease Liabilities (Details)
$ in Thousands
Mar. 31, 2024
USD ($)
Leases [Abstract]  
2025 $ 2,717
2026 2,687
2027 2,497
2028 2,605
2029 2,667
Thereafter 3,385
Total future lease payments 16,558
Less: imputed interest (2,012)
Present value of lease liabilities $ 14,546
v3.24.1.1.u2
Other Income, net (Details) - USD ($)
$ in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Other Income and Expenses [Abstract]      
Interest income $ 21,664 $ 9,287 $ 2,148
Net loss on sale of marketable securities (402) (1,093) (1,231)
Other income (expense) 62 (146) (448)
Other income, net $ 21,324 $ 8,048 $ 469
v3.24.1.1.u2
Employee Benefit Plan (Details) - USD ($)
$ in Millions
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Postemployment Benefits [Abstract]      
Employer discretionary contribution amount $ 2.1 $ 2.1 $ 2.1
v3.24.1.1.u2
Segment and Geographic Information (Details)
 12 Months Ended
Mar. 31, 2024
segment
Segment Reporting [Abstract]  
Number of operating segments 1
Number of Reportable Segments 1
v3.24.1.1.u2
Subsequent Events (Details) - USD ($)
$ in Millions
May 01, 2024
Oct. 26, 2023
Jun. 01, 2023
Oct. 28, 2022
May 12, 2022
Subsequent Event [Line Items]          
Stock repurchase program, authorized amount   $ 70 $ 340 $ 340 $ 340
Subsequent Event | Common Class A          
Subsequent Event [Line Items]          
Stock repurchase program, authorized amount $ 500