Revenue Recognition
Revenue Disaggregation
Revenue consisted of the following (in thousands):
| | | | | | | | | | | | | | | | | |
| Fiscal Year Ended March 31, |
| 2026 | | 2025 | | 2024 |
| Subscription | $ | 608,413 | | | $ | 543,770 | | | $ | 450,071 | |
| Other | 36,450 | | | 26,629 | | | 25,351 | |
| Total revenue | $ | 644,863 | | | $ | 570,399 | | | $ | 475,422 | |
Contract Balances
Changes in the Company’s deferred revenue balances were as follows (in thousands):
| | | | | | | | | | | |
| As of March 31, |
| 2026 | | 2025 |
| Beginning balance | $ | 114,565 | | | $ | 99,356 | |
| Additions, net, during the period | 636,748 | | | 585,608 | |
| Revenue recognized from the beginning balance | (114,028) | | | (94,675) | |
| Revenue recognized from contracts invoiced during the period | (530,835) | | | (475,724) | |
| Ending balance | $ | 106,450 | | | $ | 114,565 | |
The Company’s unbilled revenue balances were $2.2 million and $1.7 million as of March 31, 2026 and 2025, respectively.
Deferred Contract Costs
The Company capitalized $14.5 million, $12.1 million, and $8.6 million of contract acquisition costs for the fiscal years ended March 31, 2026, 2025, and 2024, respectively. Amortization of deferred contract costs was $13.5 million, $10.0 million, and $8.9 million for the fiscal years ended March 31, 2026, 2025, and 2024, respectively. The Company’s current and non-current deferred contract cost balances were $8.0 million and $0.6 million, respectively, as of March 31, 2026, and were $7.0 million and $0.5 million, respectively, as of March 31, 2025. Deferred contract costs are periodically analyzed for impairment. There were no impairment losses relating to deferred contract costs during the fiscal years ended March 31, 2026, 2025, and 2024.
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.