Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method. Depreciation is computed using the straight-line method over the service period of the related fixed asset as follows:
| | | | | | | | | | | | | | |
| Property and equipment | | Useful Lives |
| Computer equipment | | | | 3 years |
| Furniture and fixtures | | | | 5 years |
| Capitalized internal-use software | | 3 | - | 7 years |
| Leasehold improvements | | Lesser of estimated useful life or remaining lease term |
Property and equipment, net consisted of the following (in thousands):
| | | | | | | | | | | |
| | March 31, 2025 | | March 31, 2024 |
Capitalized internal-use software(1) | $ | 143,866 | | | $ | 133,876 | |
| Computer equipment | 49,892 | | | 53,788 | |
| Leasehold improvements | 28,239 | | | 29,666 | |
| Furniture and fixtures | 10,767 | | | 11,675 | |
| Construction in progress | 11,981 | | | 9,593 | |
| Total property and equipment | 244,745 | | | 238,598 | |
| Less: accumulated depreciation and amortization | (196,826) | | | (185,417) | |
| Total property and equipment, net | $ | 47,919 | | | $ | 53,181 | |
(1) Current period presentation combines software development costs and software licenses into a single line item. Prior periods have been revised to conform to the current presentation.
The following table sets forth the property and equipment, net, geographic information for each period (in thousands):
| | | | | | | | | | | |
| March 31, 2025 | | March 31, 2024 |
| United States | $ | 45,677 | | | $ | 49,992 | |
| International | 2,242 | | | 3,189 | |
| Total property and equipment, net | $ | 47,919 | | | $ | 53,181 | |
About PP&E Disclosures
The PP&E disclosure details a company's physical asset base — land, buildings, machinery, and equipment — along with the depreciation methods and useful life assumptions that determine how these costs flow through the income statement. Capitalization policy thresholds reveal management's judgment on the boundary between expense and asset, directly affecting both reported earnings and asset values.
Key signals: changes in estimated useful lives or depreciation methods can materially shift reported earnings without any operational change. Compare capital expenditures against depreciation expense — when capex consistently trails depreciation, the asset base may be aging and underinvested. Watch for large asset impairments or write-downs that signal overvalued carrying amounts. Asset retirement obligations reveal future environmental or decommissioning costs that are often underappreciated. Compare PP&E intensity (PP&E-to-revenue) against industry peers to assess capital efficiency and competitive positioning.