FAIR VALUE MEASUREMENTS

6 Months Ended

Sep. 30, 2022

Cash, cash equivalents, and available-for-sale investments were as follows:


As of September 30, 2022	Amortized Costs		Gross Unrealized Gain		Gross Unrealized Loss		Estimated Fair Value		Cash and Cash Equivalents		Restricted Cash (Current & Non-current)		Short-Term Investments		Long-Term Investments
Cash	$	88,288	$	—	$	—	$	88,288	$	88,288	$	—	$	—	$	—
Level 1:
Money market funds	2,184		—		—		2,184		2,184		—		—		—
Treasury securities			—						—		—		—		—
Subtotal	90,472		—		—		90,472		90,472		—		—		—
Level 2:
Certificate of deposit	1,329		—		—		1,329		—		1,329		—		—
Commercial paper	18,460		—		(22)		18,438		10,040				8,398		—
Corporate debt	22,211				(198)		22,013						22,013		—
Subtotal	42,000		—		(220)		41,780		10,040		1,329		30,411		—
Total assets	$	132,472	$	—	$	(220)	$	132,252	$	100,512	$	1,329	$	30,411	$	—


As of March 31, 2022	Amortized Costs		Gross Unrealized Gain		Gross Unrealized Loss		Estimated Fair Value		Cash and Cash Equivalents		Restricted Cash (Current & Non-current)		Short-Term Investments		Long-Term Investments
Cash	$	70,095	$	—	$	—	$	70,095	$	70,095	$	—	$	—	$	—
Level 1:
Money market funds	12,865		—		—		12,865		12,865		—		—		—
Treasury securities	4,573		—		(7)		4,566		—		—		4,566		—
Subtotal	87,533		—		(7)		87,526		82,960		—		4,566		—
Level 2:
Certificate of deposit	9,509		—		—		9,509		—		9,509		—		—
Commercial paper	23,950		—		(34)		23,916		800		—		16,471		—
Corporate debt	27,442		—		(163)		27,279		7,445		—		23,808		2,671
Subtotal	60,901		—		(197)		60,704		8,245		9,509		40,279		2,671
Total assets	$	148,434	$	—	$	(204)	$	148,230	$	91,205	$	9,509	$	44,845	$	2,671

Certificate of deposit represents the Company's letters of credit securing leases for office facilities, the balance of which is included in Restricted cash, current and Restricted cash, non-current on the Company's Consolidated Balance Sheet.

The Company considers its investments available to support its current operations and has classified investments in debt securities as available-for-sale securities. The Company does not intend to sell any of its investments that are in unrealized loss positions and, as of September 30, 2022, has determined that it is not more likely than not that it will be required to sell any of these investments before recovery of the entire amortized cost basis.

The Company regularly reviews the changes to the rating of its securities at the individual security level by rating agencies and reasonably monitors the surrounding economic conditions to assess the risk of expected credit losses. As of September 30, 2022, the Company did not record any allowance for credit losses on its investments.

As of September 30, 2022 and March 31, 2022, the estimated fair value of the Company's Notes was $246.6 million and $470.5 million, respectively, which was determined based on the closing price for the Notes on the last trading day of the reporting period and is considered to be Level 2 in the fair value hierarchy due to limited trading activity of the Notes. See Note 7, Convertible Senior Notes, Term Loan and Capped Calls.

The following table presents additional information about valuation techniques and inputs used for the Warrants (See Note 7, Convertible Senior Notes, Term Loan and Capped Calls) that are measured at fair value and categorized within Level 3 as of September 30, 2022 (fair value amounts in thousands):

Fair Value

Valuation Technique

Unobservable Inputs

Inputs value


Warrants	$4,621	Black-Scholes option-pricing model	Stock volatility	68.8	%
			Risk-free rate	4.1	%
			Expected term	5.0 years

As of September 30, 2022 and March 31, 2022, the estimated fair value of the Company's 2024 Notes was $76 million and $470.5 million, respectively. As of September 30, 2022, the estimated fair value of the Company’s 2028 Notes (refer to Note 7 - Convertible Senior Notes, Term Loan and Capped Calls) was $170.6 million. The fair value of the 2024 Notes and 2028 Notes was determined based on the closing price for the 2024 Notes and 2028 Notes, respectively, on the last trading day of the reporting period and is considered to be Level 2 in the fair value hierarchy due to limited trading activity of the 2024 Notes and 2028 Notes. As of September 30, 2022, the estimated fair value of the Company’s Term Loan was $211.2 million. The fair value of the Company’s Term Loan was estimated based on the quoted market prices for the same issues or on the current rates offered for debt of similar remaining maturities.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details