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STOCK-BASED COMPENSATION | 3 Months Ended
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Jun. 30, 2021
Share-based Payment Arrangement [Abstract] |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The following table presents stock-based compensation expense:
|  |  |  | Three Months Ended June 30,
|  |  |  |  |  | 2021 |  | 2020
Cost of service revenue |  |  |  |  |  | $ | 1,968 |  |  | $ | 1,814 |
Cost of other revenue |  |  |  |  |  | 1,071 |  |  | 787 |
Research and development |  |  |  |  |  | 8,698 |  |  | 6,545 |
Sales and marketing |  |  |  |  |  | 14,326 |  |  | 5,739 |
General and administrative |  |  |  |  |  | 10,524 |  |  | 7,894 |
Total |  |  |  |  |  | $ | 36,587 |  |  | $ | 22,779 |
Stock Options The following table presents stock option activity (shares in thousands):
|  | Number of Shares |  | Weighted Average Exercise Price Per Share |  | Weighted Average Remaining Contractual Term |  | Aggregate Intrinsic Value
Outstanding at March 31, 2021 |  | 1,813 |  |  | $ | 9.46 |  |  | 2.86 years |  | $ | 41,673 |
Granted |  | — |  |  | — |  |  |  |  |
Exercised |  | (391) |  |  | 9.04 |  |  |  |  |
Canceled/Forfeited |  | (9) |  |  | 21.85 |  |  |  |  |
Outstanding at June 30, 2021 |  | 1,413 |  |  | $ | 9.50 |  |  | 2.61 years |  | $ | 25,806 |
Vested and expected to vest at June 30, 2021 |  | 1,411 |  |  | $ | 9.48 |  |  | 2.60 years |  | $ | 25,788 |
Exercisable at June 30, 2021 |  | 1,373 |  |  | $ | 9.19 |  |  | 2.48 years |  | $ | 25,498 |
The total intrinsic value of options exercised during the three months ended June 30, 2021 and 2020, was $9.1 million and less than $0.1 million, respectively. As of June 30, 2021, there was $0.3 million of total unrecognized compensation cost related to stock options, which is expected to be recognized over a weighted average period of approximately 0.9 years. Restricted Stock Units (RSUs) The following table presents RSU activity (shares in thousands):
|  | Number of Shares |  | Weighted Average Grant Date Fair Value |  | Weighted Average Remaining Contractual Term |  | Aggregate Intrinsic Value
Outstanding at March 31, 2021 |  | 8,646 |  |  | $ | 19.27 |  |  | 1.85 years |  | $ | 280,467 |
Granted |  | 3,466 |  |  | 26.36 |  |  |  |  |
Vested and released |  | (969) |  |  | 20.07 |  |  |  |  |
Forfeited |  | (317) |  |  | 19.71 |  |  |  |  |
Outstanding at June 30, 2021 |  | 10,826 |  |  | $ | 21.45 |  |  | 2.05 years |  | $ | 300,524 |
As of June 30, 2021, there was $165.1 million of total unrecognized compensation cost related to RSUs. Performance Stock Units (PSUs) The Company has granted PSUs to certain of its executives with vesting that is contingent on continued service and either Company or market performance. PSUs issued in June 2021 consist of three tranches: the first tranche vests on the 1st anniversary and is based on the Non-GAAP Gross Profit of the Company; the remaining two tranches vest on the 2nd and 3rd anniversaries, respectively, and are based on the Total Shareholder Return ("TSR") of the Company, as measured relative to a specified market index during the specified periods. For the first tranche, a range of 90% to 110% attainment of the target Non-GAAP Gross Profit over the vesting period will result in a range from 0% to 200% of the target number of shares being earned. For the awards based on TSR, a 2x multiplier will be applied for each percentage point of positive or negative relative TSR over the specified vesting periods, such that the number of shares of common stock earned will increase or decrease by 2% of the target number of shares, subject to a maximum of 200% of the target number of shares. In the event that the Company’s relative TSR performance is less than negative 30%, relative to the specified index, no shares will be earned for the applicable performance period. The amount of compensation expense is based on how many shares are probable to be earned for the applicable performance period. The first tranche was valued at $25.78 per share based on the closing price of the Company's common stock on the grant date. The second and third tranches were valued at $33.32 and $34.48, respectively, per share as determined by Monte Carlo simulations using a volatility factor of 58.7% and a risk-free rate of 0.3%. The following table presents PSU activity (shares in thousands):
|  | Number of Shares |  | Weighted Average Grant Date Fair Value |  | Weighted Average Remaining Contractual Term |  | Aggregate Intrinsic Value
Outstanding at March 31, 2021 |  | 1,576 |  |  | $ | 27.33 |  |  | 1.24 years |  | $ | 51,116 |
Granted |  | 465 |  |  | 27.92 |  |  |  |  |
Granted for performance achievement 1 |  | 20 |  |  | 27.92 |  |  |  |  |
Vested and released |  | (206) |  |  | 16.12 |  |  |  |  |
Forfeited |  | (198) |  |  | 24.61 |  |  |  |  |
Outstanding at June 30, 2021 |  | 1,657 |  |  | $ | 30.56 |  |  | 1.43 years |  | $ | 46,012 |
1 Represents additional PSUs awarded as a result of the achievement of performance goals above the performance targets established at grant. As of June 30, 2021, there was $32.3 million of total unrecognized compensation cost related to PSUs. Employee Stock Purchase Plan (ESPP) As of June 30, 2021, there was approximately $0.6 million of unrecognized cost related to employee stock purchases. This cost is expected to be recognized over a weighted average period of 0.1 years. As of June 30, 2021, a total of 2,865,669 shares were available for issuance under the ESPP. Salary and Bonus Stock Program In March 2021, the Company offered its employees an opportunity to receive a portion of their base cash salary and/or cash bonus for fiscal 2022 in shares of the Company's common stock. Participants that choose to receive stock in place of base cash salary will be subject to reduced cash payroll starting July 2021 through March 2022. The number of shares received by the employee is based on the lower of the closing price of the common stock as of one of two specified look-back dates. The estimated fair value of the shares issued has two components: 1) the value of the base cash salary and/or cash bonus opted to be received as shares, and 2) the grant date fair value of the look-back feature. The estimated fair value of the stock awards will be recognized in stock based compensation expense over the requisite service period of the participants, which may differ from the period in which their original cash compensation is earned. The look-back features are valued as options using the Black-Scholes model, applied to the total number of shares would have been granted under the program based on the closing price of our common stock on the grant date. The following table presents the estimated fair value on the date of grant of each of the look-back features and the assumptions used in the Black-Scholes pricing model:
Fair value of look-back options | $4.64 | - | $8.24
Valuation assumptions: |  |  |
Expected volatility | 58.7%
Risk-free interest rates | 0.06 | % | - | 0.07%
Expected terms (in years) | 0.38 | - | 1.21
Dividend rate | —%
The risk-free rates were determined based on published treasury rates over terms consistent with those of the share exchange program. The volatility rate was determined based on historic volatility of the Company's stock and is consistent with the rate used for valuation of the PSU awards granted in June 2021. As of June 30, 2021, there was $8.8 million of total unrecognized compensation cost related to the stock exchange program. Stock Repurchases There were no stock repurchases during the three months ended June 30, 2021 and June 30, 2020.

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- Definition The entire disclosure for shareholders' equity and share-based payment arrangement. Includes, but is not limited to, disclosure of policy and terms of share-based payment arrangement, deferred compensation arrangement, and employee stock purchase plan (ESPP). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
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