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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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26-2017431
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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Title of each class
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Name of each exchange on which registered
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Common Stock, par value $0.001 per share
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New York Stock Exchange
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Large accelerated filer
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Accelerated filer
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Non-accelerated filer
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(Do not check if a small reporting company)
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Small reporting company
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Emerging growth company
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Page
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PART I
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Item 1.
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Item 1A.
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Item 1B.
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Item 2.
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Item 3.
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Item 4.
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PART II
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Item 5.
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Item 6.
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Item 7.
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Item 7A.
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Item 8.
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Item 9.
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Item 9A.
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Item 9B.
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PART III
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Item 10.
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Item 11.
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Item 12.
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Item 13.
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Item 14.
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PART IV
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Item 15.
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Item 16.
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our future financial performance, including our revenue, cost of revenue, gross profit, gross margin, operating expenses, ability to generate positive cash flow, and ability to achieve and maintain GAAP (as defined below) and non-GAAP profitability;
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use of non-GAAP financial measures;
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the sufficiency of our cash and cash equivalents to meet our working capital, capital expenditure, and liquidity needs;
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our ability to attract and retain customers to use our products, to optimize the pricing for our products, to expand our sales to our customers, and to convince our existing customers to renew subscriptions;
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the evolution of technologies affecting our products and markets;
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our ability to innovate and provide a superior user experience and our intentions and strategy with respect thereto;
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our ability to successfully penetrate enterprise markets;
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our ability to successfully expand in our existing markets and into new markets, including international markets;
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the attraction and retention of key personnel;
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our ability to effectively manage our growth and future expenses;
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our ability to maintain, protect, and enhance our intellectual property;
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worldwide economic conditions and their impact on spending; and
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our ability to comply with modified or new laws and regulations applying to our business, including privacy and data security regulations.
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New Relic APM
: Application performance monitoring
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New Relic Mobile
: Mobile application performance monitoring
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New Relic Browser
: End-user experience monitoring and performance monitoring
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New Relic Synthetics
: Software testing through simulated usage
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New Relic Infrastructure
: Complete visibility across dynamic infrastructure
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New Relic Insights
: Real-time big data analytics for business managers
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Collect.
Our intelligent agents are software code that developers and operations teams easily deploy into their applications and related IT infrastructure, including physical and virtual servers, browsers, and mobile devices.
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Store.
Data received from the agents deployed by our customers is stored in our highly secure and scalable cloud-based, big data database. Our database has been crafted so that our customers do not need to build or maintain their own big data solution for digital operations. We have optimized this database to store data as well as handle the analytics and queries that we believe are important to drive decision making. Customers can easily define which data they want to collect and store for analysis.
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Analyze.
Our simple and intuitive user interface consists of a dashboard of graphical charts for key performance indicators, which are easily configurable and enable deep drill-down and root cause analysis. Our New Relic Insights product includes two ways for technical and non-technical users to drill down into their data, diagnose problems, and make more informed decisions. New Relic Insights offers a visual data explorer that enables a user to understand data attributes, and drill down on graphs and attributes utilizing an intuitive point-and-click interface. New Relic Insights also offers a field for queries utilizing the New Relic Query Language, or NRQL, similar to the commonly used Structured Query Language, or SQL. Users can type a simple query into the NRQL field and receive the answer in a range of visual and graphical formats. In addition, New Relic Insights enables users to create and publish a set of customer-curated dashboards, along with an optional search field, for use by non-technical business users.
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SaaS-Based Delivery Model.
We designed our products based on cloud architecture and a software-as-a-service, or SaaS, delivery model. We are able to provide frequent updates to our software, enabling us to continuously improve it to reflect technology developments. This approach delivers a wide range of technology and financial benefits over on-premise architectures, including potential faster time to market, accelerated return on investment, and lower total cost of ownership for our customers.
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Scalable, Flexible Cloud Architecture.
Our customers can collectively analyze billions of data points every second. Because we built our technology with a multi-tenant cloud architecture, customers can leverage its scale to rapidly run queries and get answers—without having to build their own expensive infrastructure.
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Flexibility to Monitor Cloud, Hybrid, and On-Premise Architectures.
In addition to modern cloud architectures, our SaaS solution can monitor hybrid cloud and heterogeneous architectures, including on-premise software. Users are able to rapidly deploy our agents globally across their IT environment. New Relic Infrastructure includes native integrations with more than 40 of the most popular services from Amazon Web Services, Microsoft Azure, and Google Cloud Platform, as well as an expanded library of integrations with leading infrastructure components including Apache, Cassandra, MySQL, NGINX Plus, RabbitMQ, Redis, and StatsD. The New Relic Infrastructure SDK is designed to make development, customization, and deployment of integrations easy and offer the most flexibility for a customer from their own data centers to public cloud services to hybrid cloud deployments. Health Map brings together New Relic APM and New Relic Infrastructure to deliver insights on application and infrastructure performance into a single, prioritized view.
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Built for Modern Software.
We support a broad range of software development languages from the widely used Java and .NET, to more modern languages such as Python, Go, and Node.js, frameworks including AngularJS, React, Ember, Backbone.js, as well as mobile operating systems, including iOS and Android. Our agents are easily embedded into applications built using all of these languages, without the need for customized coding.
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Mobile Enabled.
We provide a native mobile version of our products with nearly all functionality accessible and usable through mobile devices. Our products are designed to anticipate and handle the complexity of mobile architectures, such as mobile carrier performance and user location.
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Big Data Database and Analytics.
Our proprietary, cloud-based database leverages modern big data technologies, including in-memory storage and distributed clustering techniques, which enable our users to collect and store billions of events and data points each day. Our database structure allows customers to easily build dashboards or make queries to deliver real-time insights.
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Easy and Intuitive.
We design our products to be simple, intuitive, and user-friendly. Users are able to learn, deploy, and can begin using our products often within a few minutes. This is important for developers and operations teams who do not need to do extra coding or configuration to use our products. It is also important for
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Low Total Cost of Ownership.
We price our products on a subscription basis, with flexible pricing plans so each customer is only paying for the products and usage they are consuming. Our customers do not need to invest in additional hardware, infrastructure, or services to utilize our products.
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Integrated Suite.
Our products and platform capabilities share a common design and user interface, and access the same cloud-based database structure. Users can move seamlessly among different analytic categories and use cases for their data. Users are able to easily add additional products to extend their ability to obtain insights from their same or new portions of their data.
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Extensible Platform.
We provide APIs and SDKs for customers, partners, and developers to easily build applications that integrate with and embed our product functionality into other applications. Today, there are hundreds of plugins developed internally or by third parties making it even easier to embed our products into specific use cases. This enables our users to tailor our products to specific use cases and industries beyond the programming languages, frameworks, and operating systems that we support.
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Enterprise Grade Security.
Our products are designed to be secure. By default, our data transmissions are encrypted in transit and stored in our secure tier 3 SSAE-16 certified data center. We also perform an annual SOC-2 type 2 audit. In addition, our management tools provide administrators with highly granular security controls including user provisioning, access, and privileges.
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Software Developers.
Software developers and modern DevOps teams can use our products to monitor a broad range of traditional and modern development languages and frameworks. With our suite of products, they can better monitor software performance to continuously improve it as well as fix and prevent problems. Developers can build better software, build it faster, and keep it running optimally for better end-user experiences.
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IT Operations Users.
Technology users can easily deploy our products across their IT architectures to monitor overall health and performance. They can more rapidly identify problems, isolate root causes, and address problems. Our analytics tools also enable them to prevent future issues.
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Business Users.
Line of business managers can use our products to obtain deep real-time analytics about their business. They are able to access, interact, and analyze various dimensions of massive amounts of application, customer experience, and business data to drive business outcomes when traditional on-premise solutions have struggled to keep up with the scale and variety of data. Business users are also able to easily configure their graphical dashboards of key performance indicators, or quickly make queries, without needing to wait for a data scientist to design a new report or program a new query.
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Difficult and Time-Consuming.
Existing solutions typically require developers and technology and business users to undergo upfront and ongoing user training to learn. The solutions are often customized and provisioned over the course of several months through the central IT function. Any changes to the collection, storage, or analyses of data needs to go through the IT group or specialized data scientists.
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High Total Cost of Ownership.
Traditional products have been deployed on-premise, requiring substantial upfront investments in IT infrastructure and extensive implementation, customization, maintenance, and training costs. Organizations increasingly choose not to deploy these products, or postpone implementations of upgraded versions, due to concerns relating to the substantial costs involved.
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On-Premise Architectures.
Solutions built for legacy, on-premise architectures are highly customized, expensive to purchase and operate, and require frequent upgrades and maintenance. In addition, they are fundamentally unable to adapt to cloud architectures and SaaS models. They typically rely on systems to collect, store, and analyze data which are highly specific to the particular customer’s software applications and environment at a point in time. For example, the agents for collecting data need to be highly customized and typically involve significant latency to send data.
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Support Limited to Legacy Software.
Developers using new languages and frameworks to build modern software need solutions that understand them. Most legacy solutions were built to understand COBOL, C++, Java, and .NET. However, modern languages and frameworks such as Python, Go, and Node.js represent a large and growing proportion of applications and websites. Companies of all sizes, from start-ups to the largest enterprises, require an APM solution that can monitor both legacy and modern applications.
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Lack of Support for Mobile Devices and Applications.
Legacy solutions were typically designed for business or technology users sitting at their desktop. Today’s users increasingly expect and need to be able to do their jobs outside their office, wherever and whenever they want, on a variety of mobile devices. In addition, both legacy applications running on mobile devices and native mobile applications involved different architectures and are very difficult to be managed by systems designed to work on-premise.
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Lack of Big Data and Analytics.
Existing solutions typically use structured transactional data, representing a small and shrinking portion of performance and event data. This significantly limited the types, timeliness, and flexibility of analyses they could support. Big data analytics are typically cost prohibitive for all but the largest organizations.
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Fragmented Point Solutions.
Existing solutions were built for a wide range of specific use cases which had to be business or technology critical, such as traditional application performance management, CRM or ERP analytics, or clickstream analysis. These products addressed limited use cases and were not integrated with other applications, forcing businesses to select and integrate solutions from a variety of vendors, resulting in siloed analytics.
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Programming Languages
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Mobile Platforms
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Operating Systems
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.NET
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Android
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Linux
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Java
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iOS
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Windows
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JavaScript
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Node.js
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PHP
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Python
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Ruby
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Go
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Comprehensive Diagnostics.
New Relic APM provides a comprehensive set of features, including transaction tracing, x-ray sessions, cross application tracing, thread profiling, database diagnostics, and slow SQL traces. These give users visibility into the underlying source code which can significantly reduce the time needed to identify and fix the root cause of a problem by helping users pinpoint the exact lines of code causing the problem.
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Reporting and Alerts.
New Relic APM provides reporting and alerts functionality through standard configurations as well as customer-defined policy configurations. These alerts include application performance degradation, falling traffic, and declining user satisfaction metrics. Alerts can be delivered through a variety of channels including email, text messages, push notifications, and social channels and can be integrated with bug tracking systems and group chat applications.
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Business Transaction Monitoring.
Within New Relic APM, our key transactions feature enables business users to collect and analyze data generated by business transactions separately from data about application performance.
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End-to-End Visibility
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When combined with New Relic APM, New Relic Mobile provides end-to-end visibility into the IT infrastructure affecting mobile application performance. Native mobile applications depend on code running on the device and on communications with backend services, such as mobile application servers, both internal and third party. New Relic Mobile provides code-level diagnostics for native app code running on the mobile device and enables performance, throughput, crash reporting, and error analysis for the interactions between the mobile application and the supporting backend services.
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Mobile Device Metrics
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New Relic Mobile provides detail on usage of mobile device resources, including CPU, memory, and network bandwidth from actual user devices. This visibility helps developers understand how their applications affect their customers’ devices, and how to optimize them.
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User Interactions
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The User Interactions feature provides detailed breakdowns of time spent in the code running on the device, including view loading, method calls, and data store activity. Mobile application developers leverage this feature to pinpoint problematic code and resolve problems.
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End-User Experience Monitoring
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New Relic Browser monitors the page load time for user interactions, providing data on how time is spent during each page load, including network time, request queuing, document object model processing, and page rendering. Customers utilize this data to improve the user experience by implementing caching techniques, reducing asset sizes, and leveraging content delivery network services. New Relic Browser supports the next generation of web applications built with current and future single-page application, or SPA, frameworks and libraries, including AngularJS, React, Ember, and Backbone.js.
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JavaScript Code Diagnostics
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Web applications increasingly embed application logic into JavaScript code running within the user’s browser to build richer, browser-based applications. New Relic Browser provides developers with code-level visibility into the performance of JavaScript code within users’ browsers.
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Browser Comparison
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Developers can compare how their software performs on various desktop and mobile browsers and versions, in order to identify browser-specific problems.
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Geographic Performance
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New Relic Browser can automatically identify, track, and analyze the geographic location of each page view to provide performance analytics by geography, including response time, user satisfaction, application adoption, and usage trends.
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Standards-Based
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New Relic Synthetics uses open standards, including the open source scripting language Selenium, to make it easy to quickly get started and automate tests.
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Integrated with New Relic Platform
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New Relic’s platform enables customers to link Synthetics monitoring when leveraging our other products, including New Relic APM, New Relic Browser, New Relic Infrastructure, New Relic Mobile, and New Relic Insights.
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Global Test Locations
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Users can select what region they want their test scripts to run from, giving them visibility into the regional performance of their web application.
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Private Locations
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Users can also run test scripts on their own systems, offering even more choice for users to test the performance of their applications from around the globe.
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Preemptive Visibility
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Users can resolve issues with business-critical transactions before end-users experience them.
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Precise Picture of Dynamically-Changing Systems
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New Relic Infrastructure delivers real-time health metrics correlated with recent configuration changes, allowing operations teams to quickly resolve issues, scale rapidly, and deploy intelligently.
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Move Fast and Deploy with Confidence
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New Relic Infrastructure allows customers to move fast and deploy with confidence by correlating configuration changes with health metrics in real time. New Relic Infrastructure is designed with a powerful infrastructure-wide search across every host in order to enable teams to find inconsistent configurations to detect and resolve issues quickly.
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Scale and Adapt
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New Relic Infrastructure is designed to scale and adapt to diverse environments with any combination of cloud instances, microservices, containers, or traditional servers.
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Iterative Business Analytics
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New Relic Insights is built on a proprietary event database, which is our purpose-built event database that runs in a cloud-hosted, highly distributed super-cluster. The database was built to query billions of data points in less than a second, enabling users to perform ad-hoc analytics of business data in real time through a point and click Data Explorer or through a NRQL query. It collects and stores this data from software sources including our New Relic APM, New Relic Infrastructure, New Relic Browser, New Relic Synthetics, and New Relic Mobile products.
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New Relic Query Language
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We developed NRQL as a SQL-like query language optimized for real-time analytics. Users with experience with SQL can use NRQL immediately. The language is also easy to learn for non-technical users and users with no SQL experience. NRQL has autocomplete capabilities that assist users by providing proper syntax as they type, suggesting built-in analytics functions, and can list the attributes and event types available for querying.
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Data Visualizations and Dashboards
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New Relic Insights produces intuitive data visualizations with every query, with pre-built charts and graphs to make the analysis easier to understand and share. Dashboards automatically update and refresh in real-time by continuously executing NRQL queries. New Relic’s real-time dashboards enable teams to instantly visualize performance for a specific incident time window as well as increase the depth of information available in a single dashboard, providing for more intelligent monitoring. Additionally, hundreds of pre-built charts from across the platform can be added to any New Relic Insights dashboard with a few clicks, and as a result teams do not have to start with a blank slate. Company-wide dashboards unlock even more power for New Relic’s customers, by providing a master view of any number of business units or subsidiaries, helping teams more quickly share data across their organization and up to their executive leadership.
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Radar
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A new user experience leveraging the NRAI engine, New Relic Radar is a personalized feed designed to provide engineering and operations teams with predictive and prescriptive insights into the critical services they are responsible for within their company’s software ecosystem. Radar analyzes the data from these services to identify patterns and potential issues-which may have been previously undetectable-and provide actionable ways to resolve the issue. Learning from user engagement and actions, Radar is designed to constantly improve to ensure the most relevant recommendations are surfaced to meet user needs.
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Dynamic Baseline Alerting
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New Relic’s Dynamic Baseline Alerting enables customers to set threshold alerting conditions which are modeled from historical application metric data by NRAI. Adding baseline capabilities to NRQL Alerting, New Relic enables customers to set dynamic alert thresholds on anomalous behavior for any of the billions of events New Relic processes daily. NRQL Baseline Alerting offers virtually endless possibilities for customers to be alerted on any event data collected by New Relic’s products or custom event data they insert into our database and be tailored to a particular team or company needs.
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New Relic APM Error Profiles
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New Relic APM’s Error Profiles leverage NRAI, allowing customers to better manage and analyze errors in their production applications. Using statistical measures, Error Profiles analyzes the attributes associated with the set of errors that happen in a particular time period and compares the values in that set against historical values, highlighting the error attributes that are different. Error Profiles enables DevOps teams to quickly understand the cause of an error, where to focus their attention, and prioritize resolving the error.
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Integration with Tools
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New Relic’s alerting platform is designed to integrate easily with communication and collaboration applications like PagerDuty, Campfire, HipChat, and Slack, allowing software teams to quickly understand when critical issues arise and take action.
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Centralized UI
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New Relic’s alerting platform provides a dedicated user interface for alert configuration and incident management across New Relic products.
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More Powerful Alerts
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New Relic’s alerting platform is designed to automatically apply existing alert conditions and policies for dynamic infrastructure, in order to remove the need for manual configuration. With the ability to craft precise alerts from NRQL queries, organizations can benefit from nearly limitless flexibility and baseline alerts powered by New Relic’s cloud platform.
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Extensibility
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We provide APIs and SDKs to allow developers to easily and quickly integrate and embed the functionality of our products and data with other applications and data sources. We also offer a click and drag dashboard creation tool that allows users to customize their user experience.
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Plugins
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Plugins have been built to monitor IT architecture elements including databases, networks, queuing systems, and communication tools, enabling customers to monitor their entire application stack. In general, data from sources other than our agents is presented in the same dashboard alongside the monitoring data from our agents. Many plugins are built and used within the workday. Plugins can be kept proprietary or shared with the broader public community.
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performance monitoring providers such as AppDynamics, Inc. (an operating division of Cisco Systems, Inc.), Datadog, Inc., Dynatrace LLC, and Splunk Inc.;
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diversified technology companies such as International Business Machines Corporation, Microsoft Corporation, and Oracle Corporation;
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large enterprise software and service companies such as BMC Software, Inc. and CA, Inc.; and
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companies offering analytics products competing with our New Relic Insights product, including Amazon Web Services, Inc., and Google Inc.
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product and platform features, architecture, reliability, security, performance, effectiveness, and supported environments;
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product extensibility and ability to integrate with other technology infrastructures;
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digital operations expertise;
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ease of use of products and platform capabilities;
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total cost of ownership;
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adherence to industry standards and certifications;
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strength of sales and marketing efforts;
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brand awareness and reputation; and
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focus on customer success.
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sales and marketing, including expanding our direct sales organization and marketing programs, particularly for larger customers;
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investments in our research and development team, and the development of new products, capabilities, features, and functionality;
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expansion of our operations and infrastructure, both domestically and internationally;
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hiring of additional employees; and
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general administration, including legal, accounting, and other expenses related to our growing operations and infrastructure.
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effectively attracting, training, integrating, and retaining a large number of new employees, particularly members of our sales and marketing teams and employees and consultants in jurisdictions outside of the United States;
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further improving our key business systems, processes, and information technology infrastructure, including our and third-party hosted data centers, to support our business needs;
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enhancing our information, training, and communication systems to ensure that our employees are well-coordinated and can effectively communicate with each other and our customers; and
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improving our internal control over financial reporting and disclosure controls and procedures to ensure timely and accurate reporting of our operational and financial results.
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performance monitoring providers such as AppDynamics, Inc. (an operating division of Cisco Systems, Inc.), Datadog, Inc., Dynatrace LLC, and Splunk Inc.;
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diversified technology companies such as International Business Machines Corporation, Microsoft Corporation, and Oracle Corporation;
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large enterprise software and service companies such as BMC Software, Inc. and CA, Inc.; and
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companies offering analytics products competing with our New Relic Insights product, including Amazon Web Services, Inc. and Google Inc.
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changes in a specific country’s or region’s political or economic conditions;
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unexpected changes in regulatory requirements, taxes, or trade laws;
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regional data security and privacy laws and regulations and the unauthorized use of, or access to, commercial and personal information;
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differing labor regulations where labor laws are generally more advantageous to employees as compared to the United States, including deemed hourly wage and overtime regulations in these locations;
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challenges inherent in efficiently managing an increased number of employees over large geographic distances, including the need to implement appropriate systems, policies, benefits, and compliance programs;
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difficulties in managing a business in new markets with diverse cultures, languages, customs, legal systems, alternative dispute systems, and regulatory systems;
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significant reliance upon, and potential disputes with, local business partners;
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increased travel, real estate, infrastructure, and legal compliance costs associated with international operations;
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currency exchange rate fluctuations and the resulting effect on our revenue and expenses, and the cost and risk of entering into hedging transactions if we chose to do so in the future;
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limitations on our ability to repatriate earnings;
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laws and business practices favoring local competitors, or general preferences for local vendors;
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limited or insufficient intellectual property protection;
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exposure to liabilities under anti-corruption, export controls and anti-money laundering laws, including the U.S. Foreign Corrupt Practices Act, and similar laws and regulations in other jurisdictions; and
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adverse tax burdens and foreign exchange controls that could make it difficult to repatriate earnings and cash or create other collection difficulties.
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third-party developers may not continue developing or supporting the plugins that they share on our community website;
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we cannot provide any assurance that these plugins meet the same quality standards that we apply to our own development efforts, and, to the extent they contain bugs, defects, or security risks, they may create disruptions in our customers’ use of our software or negatively affect our brand;
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we do not currently provide support for plugins developed by third-party software developers, and users may be left without support and potentially cease using our products if the third-party software developers do not provide support for these plugins; and
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these third-party software developers may not possess the appropriate intellectual property rights to develop and share their plugins.
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actual or anticipated fluctuations in our operating results;
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the financial projections we may provide to the public, any changes in these projections, or our failure to meet these projections;
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failure of securities analysts to initiate or maintain coverage of our company, changes in financial estimates and publication of other news by any securities analysts who follow our company, or our failure to meet these estimates or the expectations of investors;
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ratings changes by any securities analysts who follow our company;
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announcements by us or our competitors of significant technical innovations, acquisitions, strategic partnerships, joint ventures, or capital commitments;
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changes in operating performance and stock market valuations of other technology companies generally, or those in our industry in particular;
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price and volume fluctuations in the overall stock market from time to time, including as a result of trends in the economy as a whole;
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changes in accounting standards, policies, guidelines, interpretations, or principles, such as the adoption of FASB issued Topic 606, the new revenue recognition standard;
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actual or anticipated developments in our business or our competitors’ businesses or the competitive landscape generally;
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developments or disputes concerning our intellectual property or our products and platform capabilities, or third-party proprietary rights;
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cybersecurity attacks or incidents;
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announced or completed acquisitions of businesses or technologies by us or our competitors;
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new laws or regulations or new interpretations of existing laws, or regulations applicable to our business;
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changes in our board of directors or management;
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announced or completed equity or debt transactions involving our securities;
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sales of shares of our common stock by us, our officers, directors, or other stockholders;
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lawsuits filed or threatened against us; and
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•
|
other events or factors, including those resulting from war, incidents of terrorism, or responses to these events.
|
•
|
authorize our board of directors to issue, without further action by the stockholders, shares of undesignated preferred stock with terms, rights, and preferences determined by our board of directors that may be senior to our common stock;
|
•
|
require that any action to be taken by our stockholders be effected at a duly called annual or special meeting and not by written consent;
|
•
|
specify that special meetings of our stockholders can be called only by our board of directors, the Chairman of our board of directors, or our Chief Executive Officer;
|
•
|
establish an advance notice procedure for stockholder proposals to be brought before an annual meeting, including proposed nominations of persons for election to our board of directors;
|
•
|
provide that our board of directors is divided into three classes, with each class serving three-year staggered terms;
|
•
|
prohibit cumulative voting in the election of directors;
|
•
|
provide that our directors may be removed only for cause;
|
•
|
provide that vacancies on our board of directors may be filled only by a majority of directors then in office, even though less than a quorum; and
|
•
|
require the approval of our board of directors or the holders of at least seventy-five percent (75%) of our outstanding shares of capital stock to amend our bylaws and certain provisions of our certificate of incorporation.
|
•
|
any derivative action or proceeding brought on our behalf;
|
•
|
any action asserting a claim of breach of a fiduciary duty owed by any director, officer, or other employee of New Relic to us or our stockholders;
|
•
|
any action asserting a claim against us or any of our directors, officers, or other employees arising pursuant to any provision of the Delaware General Corporation Law, our amended and restated certificate of incorporation, or our amended and restated bylaws; and
|
•
|
any action asserting a claim against us or any of our directors, officers, or other employees that is governed by the internal affairs doctrine.
|
Fiscal Year Ended March 31, 2017
|
High
|
|
Low
|
||||
First Quarter
|
$
|
32.71
|
|
|
$
|
23.55
|
|
Second Quarter
|
$
|
38.72
|
|
|
$
|
28.76
|
|
Third Quarter
|
$
|
38.47
|
|
|
$
|
27.85
|
|
Fourth Quarter
|
$
|
40.10
|
|
|
$
|
28.40
|
|
Fiscal Year Ended March 31, 2018
|
High
|
|
Low
|
||||
First Quarter
|
$
|
45.32
|
|
|
$
|
36.72
|
|
Second Quarter
|
$
|
51.31
|
|
|
$
|
42.48
|
|
Third Quarter
|
$
|
60.85
|
|
|
$
|
49.50
|
|
Fourth Quarter
|
$
|
79.08
|
|
|
$
|
56.01
|
|
|
Base
Period
12/12/14
|
|
3/31/15
|
|
9/30/15
|
|
3/31/16
|
|
9/30/16
|
|
3/31/17
|
|
9/30/17
|
|
3/31/18
|
||||||||||||||||
New Relic, Inc.
|
$
|
100.00
|
|
|
$
|
102.09
|
|
|
$
|
112.12
|
|
|
$
|
76.73
|
|
|
$
|
112.74
|
|
|
$
|
109.06
|
|
|
$
|
146.51
|
|
|
$
|
218.06
|
|
S&P 500
|
$
|
100.00
|
|
|
$
|
103.27
|
|
|
$
|
95.89
|
|
|
$
|
102.87
|
|
|
$
|
108.29
|
|
|
$
|
118.00
|
|
|
$
|
125.82
|
|
|
$
|
131.89
|
|
S&P Composite 1500 Information Technology
|
$
|
100.00
|
|
|
$
|
103.12
|
|
|
$
|
98.19
|
|
|
$
|
108.77
|
|
|
$
|
118.74
|
|
|
$
|
134.40
|
|
|
$
|
150.62
|
|
|
$
|
168.30
|
|
(1)
|
Includes stock-based compensation expense as follows:
|
|
Year Ended March 31,
|
||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
|
(in thousands)
|
||||||||||||||||||
Cost of revenue
|
$
|
2,440
|
|
|
$
|
1,847
|
|
|
$
|
1,238
|
|
|
$
|
591
|
|
|
$
|
159
|
|
Research and development
|
12,176
|
|
|
9,975
|
|
|
6,659
|
|
|
2,055
|
|
|
1,425
|
|
|||||
Sales and marketing
|
16,925
|
|
|
13,042
|
|
|
9,258
|
|
|
5,108
|
|
|
1,373
|
|
|||||
General and administrative
|
9,057
|
|
|
7,082
|
|
|
6,113
|
|
|
3,912
|
|
|
3,263
|
|
|||||
Total stock-based compensation expense
|
$
|
40,598
|
|
|
$
|
31,946
|
|
|
$
|
23,268
|
|
|
$
|
11,666
|
|
|
$
|
6,220
|
|
(2)
|
See notes 1 and 10 of the notes to our consolidated financial statements for a description of how we compute net loss per share, basic and diluted.
|
|
As of March 31,
|
||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
|
(in thousands)
|
||||||||||||||||||
Consolidated Balance Sheet Data:
|
|
|
|
||||||||||||||||
Cash and cash equivalents
|
$
|
132,479
|
|
|
$
|
88,305
|
|
|
$
|
65,914
|
|
|
$
|
105,257
|
|
|
$
|
19,453
|
|
Short-term investments
|
115,441
|
|
|
118,101
|
|
|
125,414
|
|
|
95,503
|
|
|
—
|
|
|||||
Working capital
|
144,348
|
|
|
121,274
|
|
|
136,748
|
|
|
174,807
|
|
|
8,026
|
|
|||||
Total assets
|
443,326
|
|
|
352,269
|
|
|
294,444
|
|
|
264,711
|
|
|
55,208
|
|
|||||
Deferred revenue
|
190,282
|
|
|
126,404
|
|
|
74,723
|
|
|
29,309
|
|
|
10,359
|
|
|||||
Convertible preferred stock warrant liability
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
830
|
|
|||||
Total liabilities
|
228,222
|
|
|
165,425
|
|
|
101,211
|
|
|
49,841
|
|
|
23,956
|
|
|||||
Convertible preferred stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
95,917
|
|
|||||
Total stockholders’ equity (deficit)
|
215,104
|
|
|
186,844
|
|
|
193,233
|
|
|
214,870
|
|
|
(64,665
|
)
|
|
Mar. 31, 2018
|
|
Dec. 31, 2017
|
|
Sept. 30, 2017
|
|
Jun. 30, 2017
|
||||
Paid Business Accounts
|
17,000
|
|
|
16,600
|
|
|
15,900
|
|
|
15,400
|
|
|
Mar. 31, 2018
|
|
Dec. 31, 2017
|
|
Sept. 30, 2017
|
|
Jun. 30, 2017
|
||||
Paid Business Accounts > $100,000
|
703
|
|
|
629
|
|
|
586
|
|
|
555
|
|
|
Mar. 31, 2018
|
|
Dec. 31, 2017
|
|
Sept. 30, 2017
|
|
Jun. 30, 2017
|
||||
Percentage of Annualized Recurring Revenue from Enterprise Paid Business Accounts
|
54
|
%
|
|
52
|
%
|
|
51
|
%
|
|
49
|
%
|
|
Mar. 31, 2018
|
|
Dec. 31, 2017
|
|
Sept. 30, 2017
|
|
Jun. 30, 2017
|
||||
Annualized Dollar-Based Net Expansion Rate
|
141.2
|
%
|
|
125.2
|
%
|
|
122.9
|
%
|
|
112.5
|
%
|
|
Year Ended March 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(in thousands)
|
||||||||||
Consolidated Statements of Operations Data:
|
|
|
|
|
|
||||||
Revenue
|
$
|
355,058
|
|
|
$
|
263,479
|
|
|
$
|
181,309
|
|
Cost of revenue (1)
|
62,725
|
|
|
49,990
|
|
|
37,183
|
|
|||
Gross profit
|
292,333
|
|
|
213,489
|
|
|
144,126
|
|
|||
Operating expenses:
|
|
|
|
|
|
||||||
Research and development (1)
|
74,332
|
|
|
61,054
|
|
|
46,394
|
|
|||
Sales and marketing (1)
|
207,021
|
|
|
168,163
|
|
|
129,677
|
|
|||
General and administrative (1)
|
57,788
|
|
|
45,615
|
|
|
35,693
|
|
|||
Total operating expenses
|
339,141
|
|
|
274,832
|
|
|
211,764
|
|
|||
Loss from operations
|
(46,808
|
)
|
|
(61,343
|
)
|
|
(67,638
|
)
|
|||
Other income (expense):
|
|
|
|
|
|
||||||
Interest income
|
2,190
|
|
|
1,189
|
|
|
647
|
|
|||
Interest expense
|
(86
|
)
|
|
(87
|
)
|
|
(68
|
)
|
|||
Other income (expense), net
|
343
|
|
|
(572
|
)
|
|
(126
|
)
|
|||
Loss before income taxes
|
(44,361
|
)
|
|
(60,813
|
)
|
|
(67,185
|
)
|
|||
Income tax provision
|
959
|
|
|
264
|
|
|
302
|
|
|||
Net loss
|
$
|
(45,320
|
)
|
|
$
|
(61,077
|
)
|
|
$
|
(67,487
|
)
|
(1)
|
Includes stock-based compensation expense as follows:
|
|
Year Ended March 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(in thousands)
|
||||||||||
Cost of revenue
|
$
|
2,440
|
|
|
$
|
1,847
|
|
|
$
|
1,238
|
|
Research and development
|
12,176
|
|
|
9,975
|
|
|
6,659
|
|
|||
Sales and marketing
|
16,925
|
|
|
13,042
|
|
|
9,258
|
|
|||
General and administrative
|
9,057
|
|
|
7,082
|
|
|
6,113
|
|
|||
Total stock-based compensation expense
|
$
|
40,598
|
|
|
$
|
31,946
|
|
|
$
|
23,268
|
|
(1)
|
Includes stock-based compensation expense as follows:
|
|
Year Ended March 31,
|
|||||||
|
2018
|
|
2017
|
|
2016
|
|||
|
(as a percentage of revenue)
|
|||||||
Cost of revenue
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
Research and development
|
3
|
|
|
4
|
|
|
4
|
|
Sales and marketing
|
5
|
|
|
5
|
|
|
5
|
|
General and administrative
|
2
|
|
|
2
|
|
|
3
|
|
Total stock-based compensation expense
|
11
|
%
|
|
12
|
%
|
|
13
|
%
|
|
Year Ended March 31,
|
|
Change
|
|
Year Ended March 31,
|
|
Change
|
||||||||||||||||||||||
|
2018
|
|
2017
|
|
Amount
|
|
%
|
|
2017
|
|
2016
|
|
Amount
|
|
%
|
||||||||||||||
|
(dollars in thousands)
|
||||||||||||||||||||||||||||
United States
|
$
|
242,898
|
|
|
$
|
178,727
|
|
|
$
|
64,171
|
|
|
36
|
%
|
|
$
|
178,727
|
|
|
$
|
121,588
|
|
|
$
|
57,139
|
|
|
47
|
%
|
EMEA
|
65,540
|
|
|
49,825
|
|
|
15,715
|
|
|
32
|
%
|
|
49,825
|
|
|
34,602
|
|
|
15,223
|
|
|
44
|
%
|
||||||
APAC
|
26,554
|
|
|
19,887
|
|
|
6,667
|
|
|
34
|
%
|
|
19,887
|
|
|
14,118
|
|
|
5,769
|
|
|
41
|
%
|
||||||
Other
|
20,066
|
|
|
15,040
|
|
|
5,026
|
|
|
33
|
%
|
|
15,040
|
|
|
11,001
|
|
|
4,039
|
|
|
37
|
%
|
||||||
Total revenue
|
$
|
355,058
|
|
|
$
|
263,479
|
|
|
$
|
91,579
|
|
|
35
|
%
|
|
$
|
263,479
|
|
|
$
|
181,309
|
|
|
$
|
82,170
|
|
|
45
|
%
|
|
Year Ended March 31,
|
|
Change
|
|
Year Ended March 31,
|
|
Change
|
||||||||||||||||||||||
|
2018
|
|
2017
|
|
Amount
|
|
%
|
|
2017
|
|
2016
|
|
Amount
|
|
%
|
||||||||||||||
|
(dollars in thousands)
|
||||||||||||||||||||||||||||
Cost of revenue
|
$
|
62,725
|
|
|
$
|
49,990
|
|
|
$
|
12,735
|
|
|
25
|
%
|
|
$
|
49,990
|
|
|
$
|
37,183
|
|
|
$
|
12,807
|
|
|
34
|
%
|
|
Year Ended March 31,
|
|
Change
|
|
Year Ended March 31,
|
|
Change
|
||||||||||||||||||||||
|
2018
|
|
2017
|
|
Amount
|
|
%
|
|
2017
|
|
2016
|
|
Amount
|
|
%
|
||||||||||||||
|
(dollars in thousands)
|
||||||||||||||||||||||||||||
Research and development
|
$
|
74,332
|
|
|
$
|
61,054
|
|
|
$
|
13,278
|
|
|
22
|
%
|
|
$
|
61,054
|
|
|
$
|
46,394
|
|
|
$
|
14,660
|
|
|
32
|
%
|
|
Year Ended March 31,
|
|
Change
|
|
Year Ended March 31,
|
|
Change
|
||||||||||||||||||||||
|
2018
|
|
2017
|
|
Amount
|
|
%
|
|
2017
|
|
2016
|
|
Amount
|
|
%
|
||||||||||||||
|
(dollars in thousands)
|
||||||||||||||||||||||||||||
Sales and marketing
|
$
|
207,021
|
|
|
$
|
168,163
|
|
|
$
|
38,858
|
|
|
23
|
%
|
|
$
|
168,163
|
|
|
$
|
129,677
|
|
|
$
|
38,486
|
|
|
30
|
%
|
|
Year Ended March 31,
|
|
Change
|
|
Year Ended March 31,
|
|
Change
|
||||||||||||||||||||||
|
2018
|
|
2017
|
|
Amount
|
|
%
|
|
2017
|
|
2016
|
|
Amount
|
|
%
|
||||||||||||||
|
(dollars in thousands)
|
||||||||||||||||||||||||||||
General and administrative
|
$
|
57,788
|
|
|
$
|
45,615
|
|
|
$
|
12,173
|
|
|
27
|
%
|
|
$
|
45,615
|
|
|
$
|
35,693
|
|
|
$
|
9,922
|
|
|
28
|
%
|
|
Year Ended March 31,
|
|
Change
|
|
Year Ended March 31,
|
|
Change
|
||||||||||||||||||||||
|
2018
|
|
2017
|
|
Amount
|
|
%
|
|
2017
|
|
2016
|
|
Amount
|
|
%
|
||||||||||||||
|
(dollars in thousands)
|
||||||||||||||||||||||||||||
Other income
|
$
|
2,447
|
|
|
$
|
530
|
|
|
$
|
1,917
|
|
|
362
|
%
|
|
$
|
530
|
|
|
$
|
453
|
|
|
$
|
77
|
|
|
17
|
%
|
|
Three Months Ended
|
||||||||||||||||||||||||||||||
|
Mar. 31, 2018
|
|
Dec. 31, 2017
|
|
Sept. 30, 2017
|
|
Jun. 30, 2017
|
|
Mar. 31, 2017
|
|
Dec. 31, 2016
|
|
Sept. 30, 2016
|
|
Jun. 30, 2016
|
||||||||||||||||
|
(in thousands, except per share data)
|
||||||||||||||||||||||||||||||
Revenue
|
$
|
98,448
|
|
|
$
|
91,827
|
|
|
$
|
84,685
|
|
|
$
|
80,098
|
|
|
$
|
73,336
|
|
|
$
|
68,096
|
|
|
$
|
63,440
|
|
|
$
|
58,607
|
|
Cost of revenue (1)
|
16,383
|
|
|
15,671
|
|
|
15,694
|
|
|
14,977
|
|
|
13,930
|
|
|
12,627
|
|
|
11,778
|
|
|
11,655
|
|
||||||||
Gross profit
|
82,065
|
|
|
76,156
|
|
|
68,991
|
|
|
65,121
|
|
|
59,406
|
|
|
55,469
|
|
|
51,662
|
|
|
46,952
|
|
||||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Research and development (1)
|
19,646
|
|
|
18,154
|
|
|
18,266
|
|
|
18,266
|
|
|
15,967
|
|
|
14,377
|
|
|
14,741
|
|
|
15,969
|
|
||||||||
Sales and marketing (1)
|
55,006
|
|
|
51,393
|
|
|
51,261
|
|
|
49,361
|
|
|
45,537
|
|
|
43,458
|
|
|
40,382
|
|
|
38,786
|
|
||||||||
General and administrative (1)
|
14,945
|
|
|
14,596
|
|
|
14,305
|
|
|
13,942
|
|
|
12,968
|
|
|
11,578
|
|
|
10,833
|
|
|
10,236
|
|
||||||||
Total operating expenses
|
89,597
|
|
|
84,143
|
|
|
83,832
|
|
|
81,569
|
|
|
74,472
|
|
|
69,413
|
|
|
65,956
|
|
|
64,991
|
|
||||||||
Loss from operations
|
(7,532
|
)
|
|
(7,987
|
)
|
|
(14,841
|
)
|
|
(16,448
|
)
|
|
(15,066
|
)
|
|
(13,944
|
)
|
|
(14,294
|
)
|
|
(18,039
|
)
|
||||||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest income
|
687
|
|
|
534
|
|
|
512
|
|
|
457
|
|
|
393
|
|
|
325
|
|
|
250
|
|
|
221
|
|
||||||||
Interest expense
|
(22
|
)
|
|
(21
|
)
|
|
(21
|
)
|
|
(22
|
)
|
|
(24
|
)
|
|
(21
|
)
|
|
(21
|
)
|
|
(21
|
)
|
||||||||
Other income (expense), net
|
226
|
|
|
(45
|
)
|
|
(152
|
)
|
|
314
|
|
|
(55
|
)
|
|
(280
|
)
|
|
(126
|
)
|
|
(111
|
)
|
||||||||
Loss before income taxes
|
(6,641
|
)
|
|
(7,519
|
)
|
|
(14,502
|
)
|
|
(15,699
|
)
|
|
(14,752
|
)
|
|
(13,920
|
)
|
|
(14,191
|
)
|
|
(17,950
|
)
|
||||||||
Income tax provision (benefit)
|
325
|
|
|
210
|
|
|
189
|
|
|
235
|
|
|
241
|
|
|
(37
|
)
|
|
(61
|
)
|
|
121
|
|
||||||||
Net loss
|
$
|
(6,966
|
)
|
|
$
|
(7,729
|
)
|
|
$
|
(14,691
|
)
|
|
$
|
(15,934
|
)
|
|
$
|
(14,993
|
)
|
|
$
|
(13,883
|
)
|
|
$
|
(14,130
|
)
|
|
$
|
(18,071
|
)
|
Net loss per share, basic and diluted (2)
|
$
|
(0.13
|
)
|
|
$
|
(0.14
|
)
|
|
$
|
(0.27
|
)
|
|
$
|
(0.30
|
)
|
|
$
|
(0.28
|
)
|
|
$
|
(0.27
|
)
|
|
$
|
(0.28
|
)
|
|
$
|
(0.36
|
)
|
Weighted-average shares used to compute net loss per share, basic and diluted (2)
|
55,669
|
|
|
55,196
|
|
|
54,699
|
|
|
53,697
|
|
|
52,991
|
|
|
52,328
|
|
|
51,328
|
|
|
50,224
|
|
(1)
|
Includes stock-based compensation expense as follows:
|
|
Three Months Ended
|
||||||||||||||||||||||||||||||
|
Mar. 31, 2018
|
|
Dec. 31, 2017
|
|
Sept. 30, 2017
|
|
Jun. 30, 2017
|
|
Mar. 31, 2017
|
|
Dec. 31, 2016
|
|
Sept. 30, 2016
|
|
Jun. 30, 2016
|
||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||||||
Cost of revenue
|
$
|
724
|
|
|
$
|
587
|
|
|
$
|
603
|
|
|
$
|
526
|
|
|
$
|
478
|
|
|
$
|
475
|
|
|
$
|
513
|
|
|
$
|
381
|
|
Research and development
|
3,076
|
|
|
2,959
|
|
|
3,305
|
|
|
2,836
|
|
|
2,522
|
|
|
2,390
|
|
|
2,522
|
|
|
2,541
|
|
||||||||
Sales and marketing
|
4,811
|
|
|
3,933
|
|
|
3,875
|
|
|
4,306
|
|
|
3,392
|
|
|
3,479
|
|
|
3,409
|
|
|
2,762
|
|
||||||||
General and administrative
|
2,209
|
|
|
2,454
|
|
|
2,439
|
|
|
1,955
|
|
|
1,835
|
|
|
1,774
|
|
|
1,819
|
|
|
1,654
|
|
||||||||
Total stock-based compensation expense
|
$
|
10,820
|
|
|
$
|
9,933
|
|
|
$
|
10,222
|
|
|
$
|
9,623
|
|
|
$
|
8,227
|
|
|
$
|
8,118
|
|
|
$
|
8,263
|
|
|
$
|
7,338
|
|
(2)
|
See notes 1 and 10 of the notes to our consolidated financial statements for a description of how we compute net loss per share, basic and diluted.
|
|
Three Months Ended
|
||||||||||||||||||||||
|
Mar. 31, 2018
|
|
Dec. 31, 2017
|
|
Sept. 30, 2017
|
|
Jun. 30, 2017
|
|
Mar. 31, 2017
|
|
Dec. 31, 2016
|
|
Sept. 30, 2016
|
|
Jun. 30, 2016
|
||||||||
|
(as a percentage of revenue)
|
||||||||||||||||||||||
Revenue
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
Cost of revenue (1)
|
17
|
|
|
17
|
|
|
19
|
|
|
19
|
|
|
19
|
|
|
19
|
|
|
19
|
|
|
20
|
|
Gross profit
|
83
|
|
|
83
|
|
|
81
|
|
|
81
|
|
|
81
|
|
|
81
|
|
|
81
|
|
|
80
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Research and development (1)
|
20
|
|
|
20
|
|
|
22
|
|
|
23
|
|
|
22
|
|
|
21
|
|
|
23
|
|
|
27
|
|
Sales and marketing (1)
|
56
|
|
|
56
|
|
|
61
|
|
|
62
|
|
|
62
|
|
|
64
|
|
|
64
|
|
|
66
|
|
General and administrative (1)
|
15
|
|
|
16
|
|
|
16
|
|
|
17
|
|
|
18
|
|
|
17
|
|
|
17
|
|
|
18
|
|
Total operating expenses
|
91
|
|
|
92
|
|
|
99
|
|
|
102
|
|
|
102
|
|
|
102
|
|
|
104
|
|
|
111
|
|
Operating loss
|
(8
|
)
|
|
(9
|
)
|
|
(18
|
)
|
|
(21
|
)
|
|
(21
|
)
|
|
(21
|
)
|
|
(23
|
)
|
|
(31
|
)
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest income
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
—
|
|
Interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other income (expense), net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Loss before income taxes
|
(7
|
)
|
|
(8
|
)
|
|
(17
|
)
|
|
(20
|
)
|
|
(20
|
)
|
|
(20
|
)
|
|
(22
|
)
|
|
(31
|
)
|
Income tax provision (benefit)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net loss
|
(7
|
%)
|
|
(8
|
%)
|
|
(17
|
%)
|
|
(20
|
%)
|
|
(20
|
%)
|
|
(20
|
%)
|
|
(22
|
%)
|
|
(31
|
%)
|
(1)
|
Includes stock-based compensation expense as follows:
|
|
Three Months Ended
|
||||||||||||||||||||||
|
Mar. 31, 2018
|
|
Dec. 31, 2017
|
|
Sept. 30, 2017
|
|
Jun. 30, 2017
|
|
Mar. 31, 2017
|
|
Dec. 31, 2016
|
|
Sept. 30, 2016
|
|
Jun. 30, 2016
|
||||||||
|
(as a percentage of revenue)
|
||||||||||||||||||||||
Cost of revenue
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
Research and development
|
3
|
|
|
3
|
|
|
4
|
|
|
4
|
|
|
3
|
|
|
4
|
|
|
4
|
|
|
4
|
|
Sales and marketing
|
5
|
|
|
4
|
|
|
4
|
|
|
5
|
|
|
5
|
|
|
5
|
|
|
5
|
|
|
5
|
|
General and administrative
|
2
|
|
|
3
|
|
|
3
|
|
|
2
|
|
|
2
|
|
|
2
|
|
|
3
|
|
|
3
|
|
Total stock-based compensation expense
|
11
|
%
|
|
11
|
%
|
|
12
|
%
|
|
12
|
%
|
|
11
|
%
|
|
12
|
%
|
|
13
|
%
|
|
13
|
%
|
|
Three Months Ended March 31,
|
|
Year Ended March 31,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
GAAP loss from operations
|
$
|
(7,532
|
)
|
|
$
|
(15,066
|
)
|
|
$
|
(46,808
|
)
|
|
$
|
(61,343
|
)
|
Plus: Stock-based compensation
|
10,820
|
|
|
8,227
|
|
|
40,598
|
|
|
31,946
|
|
||||
Plus: Lawsuit litigation
|
—
|
|
|
—
|
|
|
—
|
|
|
48
|
|
||||
Plus: Amortization of purchased intangibles
|
197
|
|
|
396
|
|
|
1,187
|
|
|
1,162
|
|
||||
Plus: Amortization of stock-based compensation capitalized in software development costs
|
225
|
|
|
230
|
|
|
927
|
|
|
754
|
|
||||
Plus: Employer payroll tax on employee equity incentive plans
|
1,085
|
|
|
460
|
|
|
2,642
|
|
|
2,013
|
|
||||
Non-GAAP income (loss) from operations
|
$
|
4,795
|
|
|
$
|
(5,753
|
)
|
|
$
|
(1,454
|
)
|
|
$
|
(25,420
|
)
|
|
Year Ended March 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(in thousands)
|
||||||||||
Cash provided by operating activities
|
$
|
35,650
|
|
|
$
|
18,928
|
|
|
$
|
4,006
|
|
Cash used in investing activities
|
(23,832
|
)
|
|
(18,520
|
)
|
|
(58,051
|
)
|
|||
Cash provided by financing activities
|
32,356
|
|
|
21,983
|
|
|
14,702
|
|
|||
Net increase (decrease) in cash and cash equivalents
|
$
|
44,174
|
|
|
$
|
22,391
|
|
|
$
|
(39,343
|
)
|
|
Payments due by period
|
||||||||||||||||||
|
Total
|
|
Less than
1 year
|
|
1 to 3
years
|
|
3 to 5
years
|
|
After
5 years
|
||||||||||
|
(in thousands)
|
||||||||||||||||||
Operating lease obligations (1)
|
$
|
116,651
|
|
|
$
|
13,114
|
|
|
$
|
29,040
|
|
|
$
|
29,981
|
|
|
$
|
44,516
|
|
Purchase obligations (2)
|
26,468
|
|
|
16,478
|
|
|
9,990
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
143,119
|
|
|
$
|
29,592
|
|
|
$
|
39,030
|
|
|
$
|
29,981
|
|
|
$
|
44,516
|
|
(1)
|
Consists of future minimum lease payments under non-cancelable operating leases for office space.
|
(2)
|
Consists of future minimum payments under non-cancelable purchase commitments primarily related to hosting services and software subscriptions.
|
•
|
Fair Value of Common Stock.
Since our IPO, we have used the market closing price of our common stock as reported on the New York Stock Exchange.
|
•
|
Risk-Free Interest Rate.
We base the risk-free interest rate used in the Black-Scholes option-pricing model on the implied yield available on U.S. Treasury zero-coupon issues with a remaining term equivalent to that of the options for each option group.
|
•
|
Expected Term.
We determine the expected term based on the average period the stock options are expected to remain outstanding generally calculated as the midpoint of the stock options vesting term and contractual expiration period, as we do not have sufficient historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior.
|
•
|
Expected Volatility.
We determine the price volatility factor based on the historical volatilities of our publicly traded peer group as we do not have significant trading history for our common stock. Industry peers consist of several public companies in the technology industry that are similar to us in size, stage of life cycle, and financial leverage. We used the same set of peer group companies in all the relevant valuation estimates. We did not rely on implied volatilities of traded options in our industry peers’ common stock because the volume of activity was relatively low. We intend to continue to consistently apply this process using the same or similar public companies until a sufficient amount of historical information regarding the volatility of our own common stock share price becomes available, or unless circumstances change such that the identified companies are no longer similar to us, in which case, more suitable companies whose share prices are publicly available would be utilized in the calculation.
|
•
|
Dividend Yield.
The expected dividend assumption is based on our current expectations about our anticipated dividend policy. Consequently, we used an expected dividend yield of zero.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
||||||
|
2018
|
|
2017
|
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
132,479
|
|
|
$
|
88,305
|
|
Short-term investments
|
115,441
|
|
|
118,101
|
|
||
Accounts receivable, net of allowance for doubtful accounts of $1,728 and $1,117, respectively
|
99,488
|
|
|
62,032
|
|
||
Prepaid expenses and other current assets
|
15,591
|
|
|
8,169
|
|
||
Total current assets
|
362,999
|
|
|
276,607
|
|
||
Property and equipment, net
|
53,899
|
|
|
50,728
|
|
||
Restricted cash
|
8,202
|
|
|
8,115
|
|
||
Goodwill
|
11,828
|
|
|
11,828
|
|
||
Intangible assets, net
|
1,312
|
|
|
2,499
|
|
||
Other assets, non-current
|
5,086
|
|
|
2,492
|
|
||
Total assets
|
$
|
443,326
|
|
|
$
|
352,269
|
|
Liabilities and stockholders’ equity
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
2,985
|
|
|
$
|
6,522
|
|
Accrued compensation and benefits
|
17,414
|
|
|
15,935
|
|
||
Other current liabilities
|
8,619
|
|
|
7,607
|
|
||
Deferred revenue
|
189,633
|
|
|
125,269
|
|
||
Total current liabilities
|
218,651
|
|
|
155,333
|
|
||
Deferred rent, non-current
|
8,147
|
|
|
8,272
|
|
||
Deferred revenue, non-current
|
649
|
|
|
1,135
|
|
||
Other liabilities, non-current
|
775
|
|
|
685
|
|
||
Total liabilities
|
228,222
|
|
|
165,425
|
|
||
Commitments and contingencies (Note 7)
|
|
|
|
||||
Stockholders’ equity:
|
|
|
|
||||
Common stock, $0.001 par value; 100,000 shares authorized at March 31, 2018 and March 31, 2017; 56,213 shares and 53,539 shares issued at March 31, 2018 and March 31, 2017; and shares 55,953 and 53,279 shares outstanding at March 31, 2018 and March 31, 2017
|
56
|
|
|
53
|
|
||
Treasury stock—at cost (260 shares)
|
(263
|
)
|
|
(263
|
)
|
||
Additional paid-in capital
|
521,119
|
|
|
447,314
|
|
||
Accumulated other comprehensive loss
|
(324
|
)
|
|
(96
|
)
|
||
Accumulated deficit
|
(305,484
|
)
|
|
(260,164
|
)
|
||
Total stockholders’ equity
|
215,104
|
|
|
186,844
|
|
||
Total liabilities and stockholders’ equity
|
$
|
443,326
|
|
|
$
|
352,269
|
|
|
Year Ended March 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Revenue
|
$
|
355,058
|
|
|
$
|
263,479
|
|
|
$
|
181,309
|
|
Cost of revenue
|
62,725
|
|
|
49,990
|
|
|
37,183
|
|
|||
Gross profit
|
292,333
|
|
|
213,489
|
|
|
144,126
|
|
|||
Operating expenses:
|
|
|
|
|
|
||||||
Research and development
|
74,332
|
|
|
61,054
|
|
|
46,394
|
|
|||
Sales and marketing
|
207,021
|
|
|
168,163
|
|
|
129,677
|
|
|||
General and administrative
|
57,788
|
|
|
45,615
|
|
|
35,693
|
|
|||
Total operating expenses
|
339,141
|
|
|
274,832
|
|
|
211,764
|
|
|||
Loss from operations
|
(46,808
|
)
|
|
(61,343
|
)
|
|
(67,638
|
)
|
|||
Other income (expense):
|
|
|
|
|
|
||||||
Interest income
|
2,190
|
|
|
1,189
|
|
|
647
|
|
|||
Interest expense
|
(86
|
)
|
|
(87
|
)
|
|
(68
|
)
|
|||
Other income (expense), net
|
343
|
|
|
(572
|
)
|
|
(126
|
)
|
|||
Loss before income taxes
|
(44,361
|
)
|
|
(60,813
|
)
|
|
(67,185
|
)
|
|||
Income tax provision
|
959
|
|
|
264
|
|
|
302
|
|
|||
Net loss
|
$
|
(45,320
|
)
|
|
$
|
(61,077
|
)
|
|
$
|
(67,487
|
)
|
Net loss per share, basic and diluted
|
$
|
(0.83
|
)
|
|
$
|
(1.18
|
)
|
|
$
|
(1.39
|
)
|
Weighted-average shares used to compute net loss per share, basic and diluted
|
54,814
|
|
|
51,715
|
|
|
48,410
|
|
|
Year Ended March 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Net loss
|
$
|
(45,320
|
)
|
|
$
|
(61,077
|
)
|
|
$
|
(67,487
|
)
|
Other comprehensive income (loss):
|
|
|
|
|
|
||||||
Unrealized gain (loss) on available-for-sale securities, net of tax
|
(228
|
)
|
|
(118
|
)
|
|
7
|
|
|||
Comprehensive loss
|
$
|
(45,548
|
)
|
|
$
|
(61,195
|
)
|
|
$
|
(67,480
|
)
|
|
Common Stock
|
|
Additional
Paid-In
Capital
|
|
Treasury Stock
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Accumulated
Deficit
|
|
Total
Stockholders’
Equity
|
||||||||||||||||||
|
Shares
|
|
Amount
|
|
|
Shares
|
|
Amount
|
|
|
|
||||||||||||||||||
Balance at March 31, 2015
|
47,377
|
|
|
$
|
47
|
|
|
$
|
346,671
|
|
|
260
|
|
|
$
|
(263
|
)
|
|
$
|
15
|
|
|
$
|
(131,600
|
)
|
|
$
|
214,870
|
|
Issuance of common stock upon exercise of stock options
|
2,324
|
|
|
3
|
|
|
12,518
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,521
|
|
||||||
Issuance of common stock for vested restricted stock units
|
166
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Issuance of common stock related to employee stock purchase plan
|
111
|
|
|
—
|
|
|
2,243
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,243
|
|
||||||
Issuance of common stock related to acquisition of business
|
263
|
|
|
—
|
|
|
6,777
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,777
|
|
||||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
24,302
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24,302
|
|
||||||
Other comprehensive income, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
7
|
|
||||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(67,487
|
)
|
|
(67,487
|
)
|
||||||
Balance at March 31, 2016
|
50,241
|
|
|
$
|
50
|
|
|
$
|
392,511
|
|
|
260
|
|
|
$
|
(263
|
)
|
|
$
|
22
|
|
|
$
|
(199,087
|
)
|
|
$
|
193,233
|
|
Issuance of common stock upon exercise of stock options
|
2,474
|
|
|
2
|
|
|
16,665
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,667
|
|
||||||
Issuance of common stock for vested restricted stock units
|
582
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Issuance of common stock related to employee stock purchase plan
|
195
|
|
|
—
|
|
|
5,283
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,283
|
|
||||||
Issuance of common stock related to acquisition of business
|
47
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
32,856
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32,856
|
|
||||||
Other comprehensive loss, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(118
|
)
|
|
—
|
|
|
(118
|
)
|
||||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(61,077
|
)
|
|
(61,077
|
)
|
||||||
Balance at March 31, 2017
|
53,539
|
|
|
$
|
53
|
|
|
$
|
447,314
|
|
|
260
|
|
|
$
|
(263
|
)
|
|
$
|
(96
|
)
|
|
$
|
(260,164
|
)
|
|
$
|
186,844
|
|
Issuance of common stock upon exercise of stock options
|
1,616
|
|
|
2
|
|
|
24,732
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24,734
|
|
||||||
Issuance of common stock for vested restricted stock units
|
796
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Issuance of common stock related to employee stock purchase plan
|
219
|
|
|
—
|
|
|
7,593
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,593
|
|
||||||
Issuance of common stock related to acquisition of business
|
43
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
41,481
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
41,481
|
|
||||||
Other comprehensive loss, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(228
|
)
|
|
—
|
|
|
(228
|
)
|
||||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(45,320
|
)
|
|
(45,320
|
)
|
||||||
Balance at March 31, 2018
|
56,213
|
|
|
$
|
56
|
|
|
$
|
521,119
|
|
|
260
|
|
|
$
|
(263
|
)
|
|
$
|
(324
|
)
|
|
$
|
(305,484
|
)
|
|
$
|
215,104
|
|
|
Year Ended March 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net loss
|
$
|
(45,320
|
)
|
|
$
|
(61,077
|
)
|
|
$
|
(67,487
|
)
|
Adjustments to reconcile net loss to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
23,243
|
|
|
18,805
|
|
|
15,119
|
|
|||
Stock-based compensation expense
|
40,598
|
|
|
31,946
|
|
|
23,268
|
|
|||
Other
|
1,559
|
|
|
1,125
|
|
|
2,420
|
|
|||
Changes in operating assets and liabilities, net of acquisition of business:
|
|
|
|
|
|
||||||
Accounts receivable, net
|
(38,315
|
)
|
|
(30,251
|
)
|
|
(19,456
|
)
|
|||
Prepaid expenses and other assets
|
(9,794
|
)
|
|
(3,658
|
)
|
|
(1,834
|
)
|
|||
Accounts payable
|
(1,823
|
)
|
|
658
|
|
|
(774
|
)
|
|||
Accrued compensation and benefits and other liabilities
|
2,112
|
|
|
5,550
|
|
|
7,205
|
|
|||
Deferred revenue
|
63,878
|
|
|
51,681
|
|
|
45,414
|
|
|||
Deferred rent
|
(488
|
)
|
|
4,149
|
|
|
131
|
|
|||
Net cash provided by operating activities
|
35,650
|
|
|
18,928
|
|
|
4,006
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Purchases of property and equipment
|
(21,368
|
)
|
|
(21,430
|
)
|
|
(11,732
|
)
|
|||
Acquisition of business, net of cash acquired
|
—
|
|
|
—
|
|
|
(5,498
|
)
|
|||
Increase in restricted cash
|
(87
|
)
|
|
—
|
|
|
(3,492
|
)
|
|||
Purchases of short-term investments
|
(128,669
|
)
|
|
(168,938
|
)
|
|
(110,978
|
)
|
|||
Proceeds from sale and maturity of short-term investments
|
131,135
|
|
|
175,877
|
|
|
80,397
|
|
|||
Capitalized software development costs
|
(4,843
|
)
|
|
(4,029
|
)
|
|
(6,748
|
)
|
|||
Net cash used in investing activities
|
(23,832
|
)
|
|
(18,520
|
)
|
|
(58,051
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Proceeds from employee stock purchase plan
|
7,592
|
|
|
5,283
|
|
|
2,243
|
|
|||
Proceeds from issuance of common stock
|
24,764
|
|
|
16,700
|
|
|
12,459
|
|
|||
Net cash provided by financing activities
|
32,356
|
|
|
21,983
|
|
|
14,702
|
|
|||
Net increase (decrease) in cash and cash equivalents
|
44,174
|
|
|
22,391
|
|
|
(39,343
|
)
|
|||
Cash and cash equivalents, beginning of period
|
88,305
|
|
|
65,914
|
|
|
105,257
|
|
|||
Cash and cash equivalents, end of period
|
$
|
132,479
|
|
|
$
|
88,305
|
|
|
$
|
65,914
|
|
Supplemental disclosure of cash flow information:
|
|
|
|
|
|
||||||
Cash paid for interest and income taxes
|
$
|
647
|
|
|
$
|
253
|
|
|
$
|
169
|
|
Noncash investing and financing activities:
|
|
|
|
|
|
||||||
Issuance of common stock for the acquisition of business
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,777
|
|
Property and equipment purchased but not paid yet
|
$
|
1,932
|
|
|
$
|
3,011
|
|
|
$
|
828
|
|
1.
|
Description of Business and Summary of Significant Accounting Policies
|
2.
|
Business Combination
|
3.
|
Fair Value Measurements
|
|
Fair Value Measurements as of March 31, 2018
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Cash and cash equivalents:
|
|
||||||||||||||
Money market funds
|
$
|
38,458
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
38,458
|
|
Commercial paper
|
—
|
|
|
21,710
|
|
|
—
|
|
|
21,710
|
|
||||
U.S. treasury securities
|
2,698
|
|
|
—
|
|
|
—
|
|
|
2,698
|
|
||||
U.S. government agencies
|
—
|
|
|
5,498
|
|
|
—
|
|
|
5,498
|
|
||||
Short-term investments:
|
|
|
|
|
|
|
|
||||||||
Certificates of deposit
|
—
|
|
|
20,492
|
|
|
—
|
|
|
20,492
|
|
||||
Commercial paper
|
—
|
|
|
21,699
|
|
|
—
|
|
|
21,699
|
|
||||
Corporate notes and bonds
|
—
|
|
|
9,794
|
|
|
—
|
|
|
9,794
|
|
||||
U.S. treasury securities
|
40,187
|
|
|
—
|
|
|
—
|
|
|
40,187
|
|
||||
U.S. government agencies
|
—
|
|
|
23,269
|
|
|
—
|
|
|
23,269
|
|
||||
Restricted cash:
|
|
|
|
|
|
|
|
||||||||
Money market funds
|
8,202
|
|
|
—
|
|
|
—
|
|
|
8,202
|
|
||||
Total
|
$
|
89,545
|
|
|
$
|
102,462
|
|
|
$
|
—
|
|
|
$
|
192,007
|
|
Included in cash and cash equivalents
|
|
|
|
|
|
|
$
|
68,364
|
|
||||||
Included in short-term investments
|
|
|
|
|
|
|
$
|
115,441
|
|
||||||
Included in restricted cash
|
|
|
|
|
|
|
$
|
8,202
|
|
|
Fair Value Measurements as of March 31, 2017
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Cash and cash equivalents:
|
|
||||||||||||||
Money market funds
|
$
|
36,180
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
36,180
|
|
Commercial paper
|
—
|
|
|
5,441
|
|
|
—
|
|
|
5,441
|
|
||||
U.S. government agencies
|
—
|
|
|
2,600
|
|
|
—
|
|
|
2,600
|
|
||||
Short-term investments:
|
|
|
|
|
|
|
|
||||||||
Certificates of deposit
|
—
|
|
|
28,210
|
|
|
—
|
|
|
28,210
|
|
||||
Commercial paper
|
—
|
|
|
10,549
|
|
|
—
|
|
|
10,549
|
|
||||
Corporate notes and bonds
|
—
|
|
|
17,378
|
|
|
—
|
|
|
17,378
|
|
||||
U.S. treasury securities
|
11,276
|
|
|
—
|
|
|
—
|
|
|
11,276
|
|
||||
U.S. government agencies
|
—
|
|
|
50,688
|
|
|
—
|
|
|
50,688
|
|
||||
Restricted cash:
|
|
|
|
|
|
|
|
||||||||
Money market funds
|
8,115
|
|
|
—
|
|
|
—
|
|
|
8,115
|
|
||||
Total
|
$
|
55,571
|
|
|
$
|
114,866
|
|
|
$
|
—
|
|
|
$
|
170,437
|
|
Included in cash and cash equivalents
|
|
|
|
|
|
|
$
|
44,221
|
|
||||||
Included in short-term investments
|
|
|
|
|
|
|
$
|
118,101
|
|
||||||
Included in restricted cash
|
|
|
|
|
|
|
$
|
8,115
|
|
|
March 31, 2018
|
|
March 31, 2017
|
||||
Due within one year
|
$
|
96,924
|
|
|
$
|
92,874
|
|
Due in one to two years
|
18,517
|
|
|
25,227
|
|
||
Total
|
$
|
115,441
|
|
|
$
|
118,101
|
|
4.
|
Property and Equipment
|
|
March 31, 2018
|
|
March 31, 2017
|
||||
Computers, software, and equipment
|
$
|
8,335
|
|
|
$
|
7,060
|
|
Site operation equipment
|
37,254
|
|
|
25,874
|
|
||
Furniture and fixtures
|
2,981
|
|
|
1,770
|
|
||
Leasehold improvements
|
34,316
|
|
|
30,586
|
|
||
Capitalized software development costs
|
38,062
|
|
|
32,618
|
|
||
Total property and equipment
|
120,948
|
|
|
97,908
|
|
||
Less: accumulated depreciation and amortization
|
(67,049
|
)
|
|
(47,180
|
)
|
||
Total property and equipment, net
|
$
|
53,899
|
|
|
$
|
50,728
|
|
5.
|
Goodwill and Purchased Intangibles Assets
|
|
Gross Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net Carrying
Amount
|
||||||
Developed technology
|
$
|
4,900
|
|
|
$
|
(3,588
|
)
|
|
$
|
1,312
|
|
|
Gross Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net Carrying
Amount
|
||||||
Developed technology
|
$
|
4,900
|
|
|
$
|
(2,401
|
)
|
|
$
|
2,499
|
|
Fiscal Years Ending March 31,
|
Estimated Future Amortization Expense
|
||
2019
|
$
|
787
|
|
2020
|
525
|
|
|
|
$
|
1,312
|
|
6.
|
Other Current Liabilities
|
|
As of March 31,
|
||||||
|
2018
|
|
2017
|
||||
Accrued liabilities
|
$
|
4,139
|
|
|
$
|
3,709
|
|
Accrued tax liabilities
|
1,274
|
|
|
975
|
|
||
Deferred rent
|
782
|
|
|
948
|
|
||
Other
|
2,424
|
|
|
1,975
|
|
||
Total other current liabilities
|
$
|
8,619
|
|
|
$
|
7,607
|
|
7.
|
Commitments and Contingencies
|
Years Ending March 31,
|
Operating Leases
|
||
2019
|
$
|
13,114
|
|
2020
|
14,389
|
|
|
2021
|
14,651
|
|
|
2022
|
14,792
|
|
|
2023
|
15,189
|
|
|
Thereafter
|
44,516
|
|
|
Total minimum future lease payments
|
$
|
116,651
|
|
8.
|
Common Stock and Stockholders’ Equity
|
|
As of March 31,
|
||||
|
2018
|
|
2017
|
||
Common stock options outstanding
|
3,215
|
|
|
4,607
|
|
RSUs outstanding
|
2,079
|
|
|
1,978
|
|
Available for future stock option and RSU grants
|
9,576
|
|
|
8,034
|
|
Available for future employee stock purchase plan awards
|
1,929
|
|
|
1,648
|
|
Common stock reserved for issuance in connection with acquisition
|
—
|
|
|
43
|
|
|
16,799
|
|
|
16,310
|
|
|
Options Outstanding
|
|
RSUs Outstanding
|
||||||||||||||||||||||
|
Number of Shares
|
|
Weighted-
Average
Exercise
Price
|
|
Weighted-Average Remaining Contractual Term (in years)
|
|
Aggregate Intrinsic Value
|
|
Number of
Shares
|
|
Weighted-
Average Grant
Date Fair Value
|
|
Weighted-
Average Remaining Contractual Term (in years)
|
|
Aggregate
Intrinsic
Value
|
||||||||||
Outstanding—April 1, 2017
|
4,607
|
|
|
$
|
17.49
|
|
|
7.1
|
|
$
|
90,339
|
|
|
1,978
|
|
|
$
|
29.32
|
|
|
2.8
|
|
$
|
73,309
|
|
Stock options granted
|
544
|
|
|
48.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
RSUs granted
|
|
|
|
|
|
|
|
|
1,360
|
|
|
51.93
|
|
|
|
|
|
||||||||
Stock options exercised
|
(1,616
|
)
|
|
15.31
|
|
|
|
|
53,159
|
|
|
|
|
|
|
|
|
|
|||||||
RSUs vested
|
|
|
|
|
|
|
|
|
(796
|
)
|
|
31.99
|
|
|
|
|
|
||||||||
Stock options canceled/forfeited
|
(320
|
)
|
|
27.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
RSUs canceled/forfeited
|
|
|
|
|
|
|
|
|
(463
|
)
|
|
32.82
|
|
|
|
|
|
||||||||
Outstanding - March 31, 2018
|
3,215
|
|
|
$
|
22.79
|
|
|
6.7
|
|
$
|
165,041
|
|
|
2,079
|
|
|
$
|
42.31
|
|
|
2.7
|
|
$
|
154,071
|
|
Options vested and expected to vest - March 31, 2018
|
3,202
|
|
|
$
|
22.70
|
|
|
6.6
|
|
$
|
164,640
|
|
|
|
|
|
|
|
|
|
|||||
Options vested and exercisable - March 31, 2018
|
2,144
|
|
|
$
|
16.51
|
|
|
5.9
|
|
$
|
123,496
|
|
|
|
|
|
|
|
|
|
|||||
RSUs expected to vest - March 31, 2018
|
|
|
|
|
|
|
|
|
2,003
|
|
|
$
|
41.71
|
|
|
|
|
$
|
148,465
|
|
|
Year Ended March 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Cost of revenue
|
$
|
2,440
|
|
|
$
|
1,847
|
|
|
$
|
1,238
|
|
Research and development
|
12,176
|
|
|
9,975
|
|
|
6,659
|
|
|||
Sales and marketing
|
16,925
|
|
|
13,042
|
|
|
9,258
|
|
|||
General and administrative
|
9,057
|
|
|
7,082
|
|
|
6,113
|
|
|||
Total stock-based compensation expense
|
$
|
40,598
|
|
|
$
|
31,946
|
|
|
$
|
23,268
|
|
9.
|
Income Taxes
|
|
Year Ended March 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Current Provision:
|
|
|
|
|
|
||||||
Federal
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
State
|
89
|
|
|
18
|
|
|
93
|
|
|||
Foreign
|
870
|
|
|
333
|
|
|
345
|
|
|||
Total current provision
|
959
|
|
|
351
|
|
|
438
|
|
|||
Deferred Provision:
|
|
|
|
|
|
||||||
Federal
|
—
|
|
|
—
|
|
|
(7
|
)
|
|||
State
|
—
|
|
|
—
|
|
|
—
|
|
|||
Foreign
|
—
|
|
|
(87
|
)
|
|
(129
|
)
|
|||
Total deferred provision
|
—
|
|
|
(87
|
)
|
|
(136
|
)
|
|||
Total income tax provision
|
$
|
959
|
|
|
$
|
264
|
|
|
$
|
302
|
|
|
As of March 31,
|
||||||
|
2018
|
|
2017
|
||||
Deferred tax assets:
|
|
|
|
||||
Accrued expenses
|
$
|
2,558
|
|
|
$
|
5,120
|
|
Depreciation and amortization
|
3,585
|
|
|
3,183
|
|
||
Net operating loss carryforwards
|
98,338
|
|
|
75,949
|
|
||
Stock based compensation
|
5,248
|
|
|
7,109
|
|
||
Research and development credits
|
12,351
|
|
|
8,079
|
|
||
Gross deferred tax assets
|
122,080
|
|
|
99,440
|
|
||
Valuation allowance
|
(117,353
|
)
|
|
(94,352
|
)
|
||
Total deferred tax assets
|
4,727
|
|
|
5,088
|
|
||
Deferred tax liabilities:
|
|
|
|
||||
Prepaids
|
(2,647
|
)
|
|
(1,912
|
)
|
||
Intangibles
|
—
|
|
|
72
|
|
||
Capitalized research and development
|
(1,942
|
)
|
|
(3,108
|
)
|
||
Total deferred tax liabilities
|
(4,589
|
)
|
|
(4,948
|
)
|
||
Total net deferred tax assets
|
$
|
138
|
|
|
$
|
140
|
|
|
|
||
Balance at March 31, 2015
|
$
|
1,826
|
|
Additions based on tax positions taken during the current period
|
1,414
|
|
|
Additions based on tax positions taken during the prior period
|
249
|
|
|
Balance at March 31, 2016
|
3,489
|
|
|
Additions based on tax positions taken during the current period
|
1,503
|
|
|
Reductions based on tax positions taken during the prior period
|
(7
|
)
|
|
Balance at March 31, 2017
|
4,985
|
|
|
Additions based on tax positions taken during the current period
|
1,938
|
|
|
Reductions based on tax positions taken during the prior period
|
(187
|
)
|
|
Balance at March 31, 2018
|
$
|
6,736
|
|
10.
|
Net Loss Per Share
|
|
Year Ended March 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Numerator:
|
|
|
|
|
|
||||||
Net loss
|
$
|
(45,320
|
)
|
|
$
|
(61,077
|
)
|
|
$
|
(67,487
|
)
|
Denominator:
|
|
|
|
|
|
||||||
Weighted average shares used to compute net loss per share, basic and diluted
|
54,814
|
|
|
51,715
|
|
|
48,410
|
|
|||
Net loss per share—basic and diluted
|
$
|
(0.83
|
)
|
|
$
|
(1.18
|
)
|
|
$
|
(1.39
|
)
|
|
As of March 31,
|
|||||||
2018
|
|
2017
|
|
2016
|
||||
Options to purchase common stock
|
3,215
|
|
|
4,607
|
|
|
7,050
|
|
Restricted stock units
|
2,079
|
|
|
1,978
|
|
|
1,549
|
|
ESPP shares
|
30
|
|
|
38
|
|
|
46
|
|
Common stock reserved for issuance in connection with acquisition
|
—
|
|
|
43
|
|
|
90
|
|
|
5,324
|
|
|
6,666
|
|
|
8,735
|
|
11.
|
Employee Benefit Plan
|
12.
|
Revenue by Geographic Location
|
13.
|
Related Party Transactions
|
(1)
|
Consolidated Financial Statements
|
(2)
|
Financial Statement Schedules
|
(3)
|
Exhibits
|
Exhibit
No.
|
Description of Exhibit
|
Incorporated by Reference
|
Filed
Herewith
|
||||||
Form
|
|
File No.
|
|
Exhibit
|
|
File Date
|
|||
Amended and Restated Certificate of Incorporation of the Registrant.
|
10-K
|
|
001-36766
|
|
3.1
|
|
May 28, 2015
|
|
|
Amended and Restated Bylaws of the Registrant.
|
S-1
|
|
333-200078
|
|
3.4
|
|
November 10, 2014
|
|
|
Form of common stock certificate of the Registrant.
|
S-1/A
|
|
333-200078
|
|
4.1
|
|
December 1, 2014
|
|
|
Amended and Restated Investor Rights Agreement by and among the Registrant and certain of its stockholders, dated as of April 17, 2014.
|
S-1
|
|
333-200078
|
|
4.2
|
|
November 10, 2014
|
|
|
Form of Indemnification Agreement between the Registrant and each of its directors and executive officers.
|
S-1/A
|
|
333-200078
|
|
10.1
|
|
December 1, 2014
|
|
|
2008 Equity Incentive Plan, as amended, and related form agreements.
|
10-Q
|
|
001-36766
|
|
10.1
|
|
February 13, 2015
|
|
|
2014 Equity Incentive Plan and related form agreements.
|
S-8
|
|
333-201024
|
|
99.2
|
|
December 17, 2014
|
|
|
2014 Employee Stock Purchase Plan.
|
S-8
|
|
333-201024
|
|
99.3
|
|
December 17, 2014
|
|
|
Offer Letter between the Registrant and James Gochee, dated as of April 16, 2008.
|
10-K
|
|
001-36766
|
|
10.5
|
|
May 26, 2016
|
|
|
Offer Letter between the Registrant and Mark Sachleben, dated as of February 4, 2008.
|
S-1
|
|
333-200078
|
|
10.8
|
|
November 10, 2014
|
|
|
Offer Letter between the Registrant and Robin J. Schulman, dated as of November 7, 2014.
|
S-1/A
|
|
333-200078
|
|
10.9
|
|
December 1, 2014
|
|
|
Offer Letter between the Registrant and Erica Schultz, dated as of February 27, 2014.
|
|
|
|
|
|
|
|
X
|
|
Office Lease by and between the Registrant and 555 SW Oak, LLC, dated as of June 15, 2012, as amended.
|
S-1
|
|
333-200078
|
|
10.10
|
|
November 10, 2014
|
|
|
Sixth Amendment to Office Lease by and between the Registrant and 555 SW Oak, LLC, dated as of March 30, 2016.
|
10-K
|
|
001-36766
|
|
10.9b
|
|
May 26, 2016
|
|
|
Seventh Amendment to Lease by and between the Registrant and 111 SW 5th Avenue Investors LLC, dated as of September 15, 2017.
|
10-Q
|
|
001-36766
|
|
10.1
|
|
November 8, 2017
|
|
|
Office Lease by and between the Registrant and 188 Spear Street LLC, dated as of July 13, 2012, as amended.
|
S-1
|
|
333-200078
|
|
10.11
|
|
November 10, 2014
|
|
|
Fourth Amendment to Lease by and between the Registrant and 188 Spear Street LLC, dated as of November 1, 2017.
|
10-Q
|
|
001-36766
|
|
10.2
|
|
November 8, 2017
|
|
|
Fifth Amendment to Lease by and between the Registrant and 188 Spear Street LLC, dated as of December 29, 2017.
|
10-Q
|
|
001-36766
|
|
10.1
|
|
February 6, 2018
|
|
|
Office Lease by and between the Registrant and Pacific Mission Corporation, dated as of June 17, 2015.
|
10-Q
|
|
001-36766
|
|
10.1
|
|
August 12, 2015
|
|
Exhibit
No.
|
Description of Exhibit
|
Incorporated by Reference
|
Filed
Herewith
|
||||||
Form
|
|
File No.
|
|
Exhibit
|
|
File Date
|
|||
Form of Change in Control and Severance Agreement.
|
S-1/A
|
|
333-200078
|
|
10.12
|
|
December 1, 2014
|
|
|
Form of Extension to Change in Control and Severance Agreement.
|
10-Q
|
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001-36766
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10.2
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February 6, 2018
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New Relic, Inc. Non-Employee Director Compensation Policy, as amended.
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10-Q
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001-36766
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10.3
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November 8, 2017
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Consulting Agreement by and between New Relic, Inc. and Robin Schulman, effective as of February 16, 2018.
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8-K
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001-36766
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10.1
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February 6, 2018
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List of subsidiaries of Registrant.
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S-1
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333-200078
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21.1
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November 10, 2014
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Consent of Deloitte & Touche LLP, independent registered public accounting firm.
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X
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Power of Attorney (included on the signature page of this report).
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X
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Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
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X
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Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
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X
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32.1
(1)
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Certification of Principal Executive Officer and Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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X
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101.INS
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XBRL Instance Document
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X
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101.SCH
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XBRL Taxonomy Extension Schema Document
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101.CAL
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XBRL Taxonomy Extension Calculation Linkbase Document
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101.DEF
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XBRL Taxonomy Extension Definition Linkbase Document
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101.LAB
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XBRL Taxonomy Extension Label Linkbase Document
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X
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101.PRE
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XBRL Taxonomy Extension Presentation Linkbase Document
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X
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+
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Indicates a management contract or compensatory plan or arrangement.
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(1)
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The certifications attached as Exhibit 32.1 accompany this Annual Report on Form 10-K pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and shall not be deemed “filed” by the Registrant for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or the Exchange Act, and are not to be incorporated by reference into any of the Registrant’s filings under the Securities Act, irrespective of any general incorporation language contained in any such filing.
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New Relic, Inc.
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Date:
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May 11, 2018
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By:
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/s/ Mark Sachleben
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Mark Sachleben
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Chief Financial Officer
(Principal Financial and Accounting Officer
and Duly Authorized Signatory)
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Name
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Title
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Date
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/s/ Lewis Cirne
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Chief Executive Officer and Director
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May 11, 2018
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Lewis Cirne
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(Principal Executive Officer)
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/s/ Mark Sachleben
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Chief Financial Officer
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May 11, 2018
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Mark Sachleben
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(Principal Financial and Accounting Officer)
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/s/ Peter Fenton
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Chairman and Director
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May 11, 2018
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Peter Fenton
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/s/ Sohaib Abbasi
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Director
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May 11, 2018
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Sohaib Abbasi
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/s/ Hope Cochran
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Director
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May 11, 2018
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Hope Cochran
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/s/ Adam Messinger
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Director
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May 11, 2018
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Adam Messinger
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/s/ Dan Scholnick
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Director
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May 11, 2018
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Dan Scholnick
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/s/ James Tolonen
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Director
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May 11, 2018
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James Tolonen
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4.
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Additional Benefits
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a.
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Stock Option Grant
. We will recommend to the Board an Employee Stock Option grant of 100,000 shares, at fair market value at the time of the grant, and vesting over four years. The actual quantity, pricing and vesting of your grant will be determined at the sole discretion of the Board.
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b.
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Insurance
. The Company’s benefits package includes health, dental, vision and life insurance. Additional details of insurance benefits shall be provided separately. Your insurance benefits start on
the first day of the first full calendar month of employment.
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c.
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401k Plan.
You will be eligible to participate in the Company sponsored 401k investment plan immediately upon starting employment.
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d.
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Holidays
. Company paid holidays are: New Year’s Day, Presidents’ Day, Memorial Day, 4
th
of July, Labor Day, Thanksgiving, the Friday after
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e.
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Business Expenses
. You shall be entitled to reimbursement by Company for such customary, ordinary and necessary business expenses as are incurred by you in the performance of your duties and consistent with the policies of the Company.
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f.
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Travel
. When required to travel by airline for business, you will be permitted to fly business class.
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2.
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A
SSIGNMENT OF
I
NVENTIONS
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10.
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G
ENERAL
P
ROVISIONS
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2.
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Result from any work performed by you for the Company.
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X
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No inventions or improvements.
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☐
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See below:
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Invention or Improvement
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Party(ies)
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Relationship
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1.
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2.
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3.
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1.
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I have reviewed this Annual Report on Form 10-K of New Relic, Inc.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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(a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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(a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date:
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May 11, 2018
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By:
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/s/ Lewis Cirne
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Lewis Cirne
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Chief Executive Officer
(Principal Executive Officer)
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1.
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I have reviewed this Annual Report on Form 10-K of New Relic, Inc.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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(a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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(a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date:
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May 11, 2018
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By:
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/s/ Mark Sachleben
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Mark Sachleben
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Chief Financial Officer
(Principal Financial Officer)
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Date:
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May 11, 2018
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By:
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/s/ Lewis Cirne
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Lewis Cirne
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Chief Executive Officer
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Date:
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May 11, 2018
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By:
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/s/ Mark Sachleben
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Mark Sachleben
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Chief Financial Officer
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