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Fair Value Measurements
 9 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Available-for-sale debt securities are recorded at fair value on the condensed consolidated balance sheets. The carrying value of cash equivalents, accounts receivable, accounts payable, and accrued expenses and other current liabilities approximate their respective fair values due to their short maturities.
Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses a three-tier hierarchy, which prioritizes the inputs used in measuring fair value as follows:
Level 1—Inputs that are unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date.
Level 2—Inputs (other than quoted prices included in Level 1) that are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life.
Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities and which reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model.
The following tables present the fair value hierarchy for the Company’s assets and liabilities measured at fair value on a recurring basis (in thousands):
As of December 31, 2022
Level 1Level 2Level 3Total
Cash equivalents:
Commercial paper$— $16,455 $— $16,455 
Money market funds6,580 — — 6,580 
Total cash equivalents6,580 16,455 — 23,035 
Marketable securities:
Asset-backed securities— 7,635 — 7,635 
Certificates of deposit— 15,303 — 15,303 
Commercial paper— 52,424 — 52,424 
Corporate notes and bonds— 143,130 — 143,130 
Sovereign bonds— 7,280 — 7,280 
U.S. government and agency securities438,739 — — 438,739 
Total marketable securities438,739 225,772 — 664,511 
Total cash equivalents and marketable securities$445,319 $242,227 $— $687,546 
Liabilities:
Contingent earn-out consideration liability$— $— $21,457 $21,457 
Total contingent earn-out consideration liability$— $— $21,457 $21,457 
As of March 31, 2022
Level 1Level 2Level 3Total
Cash equivalents:
Commercial paper$— $2,686 $— $2,686 
Money market funds20,072 — — 20,072 
Total cash equivalents20,072 2,686 — 22,758 
Marketable securities:
Asset-backed securities— 7,740 — 7,740 
Commercial paper— 9,383 — 9,383 
Corporate notes and bonds— 128,104 — 128,104 
Sovereign bonds— 8,436 — 8,436 
U.S. government and agency securities530,174 1,467 — 531,641 
Total marketable securities530,174 155,130 — 685,304 
Total cash equivalents and marketable securities$550,246 $157,816 $— $708,062 
During the nine months ended December 31, 2022 and 2021, the Company had no transfers between levels of the fair value hierarchy.
Contingent Earn-out Consideration Liability
The following table summarizes the changes in the contingent earn-out consideration liability (in thousands):
Nine Months Ended December 31, 2022
Beginning fair value$— 
Additions in the period21,134 
Change in fair value323 
Ending fair value$21,457 
The contingent earn-out consideration liability relates to the AMiON acquisition, which closed on April 1, 2022. The fair value of the liability is remeasured at each reporting date until the related contingency is resolved, with any changes to the fair value recognized as sales and marketing expense in the condensed consolidated statements of operations.
To determine the fair value of the contingent earn-out consideration liability, the Company used the discounted cash flow method. The significant inputs used in the fair value measurement of the contingent earn-out consideration liability are the discount rate and the timing and amounts of the future payments, which are based upon estimates of future achievement of the performance metrics. As these inputs are not based on observable market data, they represent a Level 3 measurement within the fair value hierarchy. Changes in the significant inputs used would significantly impact the fair value of the contingent earn-out consideration liability.
See Note 8—Business Combinations for additional discussion regarding the AMiON acquisition.