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Fair Value Measurements
 6 Months Ended
Sep. 30, 2024
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 September 30, 2024
Level 1Level 2Level 3Total
Cash equivalents:
Commercial paper$— $14,950 $— $14,950 
Money market funds123,972 — — 123,972 
Total cash equivalents123,972 14,950 — 138,922 
Marketable securities:
Commercial paper— 49,698 — 49,698 
Corporate notes and bonds— 463,733 — 463,733 
U.S. government and agency securities104,844 3,035 — 107,879 
Total marketable securities104,844 516,466 — 621,310 
Total cash equivalents and marketable securities$228,816 $531,416 $— $760,232 
Liabilities:
Contingent earn-out consideration liability$— $— $11,236 $11,236 
Total contingent earn-out consideration liability$— $— $11,236 $11,236 
As of March 31, 2024
Level 1Level 2Level 3Total
Cash equivalents:
Corporate notes and bonds$— $1,180 $— $1,180 
Money market funds83,049 — — 83,049 
Total cash equivalents83,049 1,180 — 84,229 
Marketable securities:
Asset-backed securities— 121 — 121 
Commercial paper— 70,755 — 70,755 
Corporate notes and bonds— 225,822 — 225,822 
Sovereign bonds— 7,676 — 7,676 
U.S. government and agency securities355,804 5,937 — 361,741 
Total marketable securities355,804 310,311 — 666,115 
Total cash equivalents and marketable securities$438,853 $311,491 $— $750,344 
Liabilities:
Contingent earn-out consideration liability$— $— $16,813 $16,813 
Total contingent earn-out consideration liability$— $— $16,813 $16,813 
During the six months ended September 30, 2024 and 2023, 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):
Six Months Ended September 30,
20242023
Beginning fair value$16,813 $21,862 
Additions in the period— — 
Change in fair value423 316 
Payments(6,000)(6,000)
Ending fair value$11,236 $16,178 
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.