XML 52 R16.htm IDEA: XBRL DOCUMENT
v3.25.1

Stock-Based Compensation and Stockholders' Equity | 12 Months Ended
--- | ---
Mar. 31, 2025
Equity [Abstract] |
Stock-Based Compensation and Stockholders' Equity | Stock-Based Compensation and Stockholders' Equity Common Stock Reserved for Future Issuance Shares of common stock reserved for future issuance related to outstanding equity awards and employee equity incentive plans as of March 31, 2025, were as follows (in thousands):
| Common Stock Reserved
Stock options outstanding | 152 |
Restricted stock units outstanding | 14,111 |
Shares available under the 2017 Plan | 178 |
Shares available under the 2022 Plan | 10,253 |
Shares available for future issuance under ESPP | 277 |
Total shares of common stock reserved | 24,971 |
2012 Equity Incentive Plan In June 2012, the Company's board of directors approved the 2012 Equity Incentive Plan (the "2012 Plan"). The Company's stockholders subsequently adopted the 2012 Plan in July 2012, which became effective in August 2012. The 2012 Plan provided for granting incentive stock options to employees and non-statutory stock options to employees, directors or consultants, and granting of stock appreciation rights, restricted stock, restricted stock units and performance units, qualified performance-based awards, and stock grants. Options, restricted stock, and restricted stock units generally vest over three years or four years and expire ten years after grant. The 2012 Plan expired in June 2022. As of March 31, 2025, there were no shares available for future grants under the 2012 Plan. 2013 New Employee Inducement Incentive Plan In September 2013, the Company's board of directors approved the 2013 New Employee Inducement Incentive Plan (the "2013 Plan"). The 2013 Plan provided for granting non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units and performance units, and stock grants solely to newly hired employees as a material inducement to accepting employment with the Company. Options were granted at market value on the grant date under the 2013 Plan, unless determined otherwise at the time of grant by the administrator. Grants generally vest over four years and expire ten years after grant. As of March 31, 2025, there were no shares available for future grant under the 2013 Plan. 2017 New Employee Inducement Incentive Plan In October 2017, the Company's board of directors approved the 2017 New Employee Inducement Incentive Plan (the "2017 Plan"). The Company reserved 1.0 million shares of the Company's common stock for issuance under this plan. In January 2018, the 2017 Plan was amended to allow for an additional 1.5 million shares to be reserved for issuance. In December 2020, the 2017 Plan was further amended to allow for an additional 1.4 million shares to be reserved for issuance. In February 2022, the 2017 Plan was further amended to allow for an additional 1.5 million shares to be reserved for issuance. In February 2024, the 2017 Plan was further amended to allow for an additional 0.8 million shares to be reserved for issuance. In January 2025, the 2017 Plan was further amended to allow for an additional 0.6 million shares to be reserved for issuance. The 2017 Plan provides for granting non-statutory stock options, stock appreciation rights, restricted stock, and performance units and stock grants solely to newly hired employees as a material inducement to accepting employment with the Company. Options are granted at market value on the grant date under the 2017 Plan, unless determined otherwise at the time of grant by the administrator, which generally will be the compensation committee of the board of directors. Grants generally vest over three years and expire ten years after grant. As of March 31, 2025, 0.2 million shares remained available for future grants under the 2017 plan. 2022 Equity Incentive Plan The maximum number of shares reserved for the grant of awards under the 2022 Plan will be equal to the sum of the following: (i) 8.0 million shares available for grant under the 2022 Plan when it was initially adopted by shareholders on July 12, 2022, plus (ii) 14.0 million new shares approved by shareholders on August 15, 2024, plus (iii) the number of shares subject to stock options granted under the 8x8 Inc. Amended and Restated 2012 Equity Incentive Plan (the “Prior Plan”) that were outstanding as of 12:01 a.m. Pacific Time on June 22, 2022 (the “Prior Plan Expiration Time”), but only to the extent such stock options expire, terminate, are cancelled without having been exercised in full or are settled in cash after the Prior Plan Expiration Time without the delivery of shares, plus (iv) the number of shares subject to restricted stock, RSUs and performance units granted under the Prior Plan that were outstanding as of the Prior Plan Expiration Time, but only to the extent such awards are forfeited by the holder, are reacquired by the Company at less than their then market value as a means of effecting a forfeiture, or are settled in cash after the Prior Plan Expiration Time without the delivery of shares (with the number of shares that recycle based on the Applicable Ratio, which is defined in the 2022 Plan), in each case, subject to adjustment upon certain changes in the Company’s capitalization. The 2022 Plan provides for the granting of incentive stock options to employees and non-statutory stock options to employees, directors or consultants, and granting of stock appreciation rights, restricted stock, restricted stock units and performance units, qualified performance-based awards, and stock grants. The stock option price of incentive stock options granted cannot be less than the fair market value on the effective date of the grant. Options, restricted stock, and restricted stock units generally vest over three years or four years and expire ten years after the grant. As of March 31, 2025, 10.3 million shares remained available for future grants under the 2022 Plan. Stock-Based Compensation The following table presents stock-based compensation expense (in thousands):
| Years Ended March 31,
| 2025 |  | 2024 |  | 2023
Cost of service revenue | $ | 2,939 |  |  | $ | 4,993 |  |  | $ | 9,236 |
Cost of other revenue | 1,192 |  |  | 1,918 |  |  | 3,531 |
Research and development | 13,761 |  |  | 24,112 |  |  | 29,581 |
Sales and marketing | 9,863 |  |  | 15,271 |  |  | 24,921 |
General and administrative | 12,185 |  |  | 15,616 |  |  | 22,267 |
Total | $ | 39,940 |  |  | $ | 61,910 |  |  | $ | 89,536 |
As of March 31, 2025, unrecognized stock-based compensation expense by award type and their expected weighted-average recognition periods are summarized as follows (in thousands, except years):
| RSU |  | PSU |  | ESPP
Unrecognized stock-based compensation expense | $ | 19,396 |  |  | $ | 2,284 |  |  | $ | 838 |
Weighted-average amortization period | 1.8 years |  | 0.9 years |  | 0.8 years
Stock Options There were no options exercised in the years ended March 31, 2025 and 2024, respectively. The options cancelled in the years ended March 31, 2025, 2024 and 2023, were 0.2 million, 0.3 million and 0.2 million, respectively. The options outstanding as of March 31, 2025, 2024 and 2023, were 0.2 million, 0.4 million and 0.7 million, respectively. The total intrinsic value of options exercised in the year ended March 31, 2023 was $40.0 thousand. As of March 31, 2025, there was no unrecognized compensation cost related to stock options. The Company did not grant any stock options during fiscal years 2025, 2024, or 2023. Stock Purchase Rights There were no activities related to stock purchase rights during the years ended March 31, 2025, 2024, and 2023. As of March 31, 2025, there was no unrecognized compensation cost related to stock purchase rights. Restricted Stock Units The following table presents the RSU activity during the years ended March 31, 2025, 2024, and 2023 (shares in thousands):
| Number of Shares |  | Weighted Average Grant Date Fair Value |  | Weighted Average Remaining Contractual Term (in Years)
Balance at March 31, 2022 | 9,375 |  |  | $ | 20.41 |  |  | 2.11
Granted | 13,297 |  |  | 5.71 |  |  |
Vested and released | (5,275) |  |  | 19.18 |  |  |
Forfeited | (4,404) |  |  | 12.46 |  |  |
Balance at March 31, 2023 | 12,993 |  |  | 8.56 |  |  | 1.84
Granted | 7,186 |  |  | 3.85 |  |  |
Vested and released | (7,613) |  |  | 8.87 |  |  |
Forfeited | (2,241) |  |  | 7.13 |  |  |
Balance at March 31, 2024 | 10,325 |  |  | 5.36 |  |  | 1.75
Granted | 7,897 |  |  | 2.10 |  |  |
Vested and released | (6,446) |  |  | 5.99 |  |  |
Forfeited | (1,547) |  |  | 3.88 |  |  |
Balance at March 31, 2025 | 10,229 |  |  | $ | 2.67 |  |  | 0.94
Performance Stock Units Market-Based PSUs Market-based PSUs are granted to certain employees, including executive officers, with vesting that is contingent on a combination of stock performance and continued service. These awards are eligible to be earned over a period of one year to four years based on Total Shareholder Return ("TSR"), relative to specified market indices, or the achievement of specific pre-established absolute stock price hurdles. The grant date fair value of market-based PSUs is determined using a Monte Carlo simulation model based upon assumptions presented in the table below. Stock-based compensation expense is recognized over the requisite service period, regardless of whether the market condition is ultimately achieved. During fiscal year 2025, 2024 and 2023, the Company's determined the market conditions were not achieved and therefore no shares have been earned. Performance-Based PSUs Performance-based PSUs are granted to certain employees, including executive officers, with vesting based on the achievement of specific financial or operational goals, such as revenue growth or cash flow from operations ("CFFO"). The grant date fair value of performance-based PSUs are valued based on the Company’s stock price at the grant date. Stock-based compensation expense is recognized over the requisite service period based on the number of units expected to vest, which is reassessed each reporting period based on the Company’s evaluation of the probability of achieving the applicable performance conditions. To date the revenue target has not been achieved so the Company has not recognized any stock-based compensation expense. As of March 31, 2025, the Company certified the first CFFO target was achieved, and thus recognized the related stock-based compensation expense for this first CFFO target. The following table presents the PSU activity during the years ended March 31, 2025, 2024, and 2023 (shares in thousands):
| Number of Shares |  | Weighted Average Grant Date Fair Value |  | Weighted Average Remaining Contractual Term (in Years)
Balance at March 31, 2022 | 1,026 |  |  | $ | 35.36 |  |  | 0.89
Granted(1) | 853 |  |  | 7.31 |  |  |
Granted for performance achievement(1) | 24 |  |  | 7.31 |  |  |
Vested and released | (128) |  |  | 25.65 |  |  |
Forfeited | (1,151) |  |  | 28.11 |  |  |
Balance at March 31, 2023 | 624 |  |  | 11.30 |  |  | 1.45
Granted(2) | 2,023 |  |  | 3.25 |  |  |
Forfeited | (116) |  |  | 21.83 |  |  |
Balance at March 31, 2024 | 2,531 |  |  | 4.38 |  |  | 1.16
Granted(1) | 1,793 |  |  | 1.91 |  |  |
Forfeited | (444) |  |  | 7.56 |  |  |
Balance at March 31, 2025 | 3,880 |  |  | $ | 2.88 |  |  | 0.85
(1) Represents performance-based PSUs granted based on achievement of specific financial or operational goals, such as revenue growth or CFFO. (2) Represents market-based PSUs granted based on relative TSR performance or achievement of specific pre-established absolute stock price hurdles. The Company did not grant any market-based PSU awards during the year ended March 31, 2025. The PSUs granted during the years ended March 31, 2024 and 2023 were valued for compensation expense purposes at weighted average share price determined by the Monte Carlo simulations using volatility factors and risk-free rates as follows:
Year Ended March 31, |  | Value per Weighted Average Share |  | Volatility Range |  | Risk-Free Interest Rate Range
2024 |  | $ | 3.25 |  |  | 68.85% | — | 68.97% |  | 4.03% | — | 4.08%
2023 |  | $ | 7.05 |  |  | 51.96% | — | 69.30% |  | 3.15% | — | 4.42%
1996 Employee Stock Purchase Plan The Company's Amended and Restated 1996 Employee Stock Purchase Plan (the "Employee Stock Purchase Plan") was adopted in June 1996 and became effective upon the closing of the Company's initial public offering in July 1997. In May 2006, the Company's board of directors approved a ten-year extension of the Employee Stock Purchase Plan. Stockholders approved the ten-year extension of the Employee Stock Purchase Plan at the 2006 Annual Meeting of Stockholders held in September 2006. The Company's board of directors then approved the Second Amended and Restated 1996 Stock Purchase Plan in May 2017 which (i) eliminated the expiration date of the plan and (ii) approved a ten-year “evergreen provision” which would increase annually the number of shares available for issuance by up to 0.5 million on the first day of each fiscal year. Stockholders approved these changes in August 2017. In May 2020, the Company’s board of directors approved the Amended and Restated 1996 Employee Stock Purchase Plan which (i) eliminated the “evergreen provision” and (ii) reserved for issuance 3.0 million additional shares. At the 2020 Annual Meeting of Stockholders in August 2020, these changes were approved. As a result of these amendments, the Employee Stock Purchase Plan is effective until terminated by the Company's board of directors. In May 2022, the Company's board of directors approved amendments to the Employee Stock Purchase Plan, including an amendment that reserved for issuance of an additional 3.6 million shares, which were approved by the stockholders in July 2022 at the 2022 Annual Meeting. During fiscal 2025, 2024 and 2023, approximately 2.4 million, 1.9 million, and 1.1 million shares, respectively, were issued under the Amended and Restated Employee Stock Purchase Plan. The Employee Stock Purchase Plan permits eligible employees to purchase common stock through payroll deductions at a price equal to 85% of the fair market value of the common stock at the beginning of each one-year offering period or the end of each six-month purchase period, whichever is lower. When the Employee Stock Purchase Plan was reinstated in fiscal 2005, the offering period was reduced from two years to one year. Commencing with the purchase period beginning in August 2020, the contribution amount may not exceed 20% of an employee's base compensation, including commissions and standard incentive cash bonuses, but excluding non-standard bonuses and overtime wages. In addition, no participant may purchase more than 10,000 shares or $25,000 in shares of common stock in each offering period, subject to plan and Internal Revenue Code limitations. In the event of a merger of the Company with or into another corporation or the sale of all or substantially all of the assets of the Company, the Employee Stock Purchase Plan provides that a new exercise date will be set for each purchase right under the plan which exercise date will occur before the date of the merger or asset sale. The estimated fair value of stock purchase rights granted under the Employee Stock Purchase Plan was estimated using the Black-Scholes pricing model with the following weighted-average assumptions:
| Years Ended March 31,
| 2025 |  | 2024 |  | 2023
Expected volatility | 83% |  | 75% |  | 72%
Expected dividend yield | — |  | — |  | —
Risk-free interest rate | 4.70% |  | 5.26% |  | 3.30%
Weighted average expected term | 0.8 years |  | 0.8 years |  | 0.8 years
Weighted average fair value of rights granted | $0.81 |  | $1.31 |  | $2.09
Stock Repurchases In May 2017, the Company's board of directors authorized the Company to purchase $25.0 million of its common stock from time to time under the 2017 Repurchase Plan (the "Repurchase Plan"). The Repurchase Plan expires when the maximum purchase amount is reached, or upon the earlier revocation or termination by the Company's board of directors. The remaining amount available under the Repurchase Plan as of March 31, 2025 was approximately $7.1 million. In December 2021, in a private placement, the Company's board of directors authorized the Company to repurchase approximately $45.0 million of its common stock from certain qualified investors in connection with the issuance of $137.5 million in additional aggregate principal amount of the 2024 Notes. In August 2022, the Company repurchased in privately negotiated transactions with a limited number of holders 10,695,000 shares of its common stock for approximately $60.0 million, in connection with the Exchange Transaction and negotiation of the Term Loan, as further described in Note 8, Convertible Senior Notes and Term Loan. Retirement Plans The Company has savings plans in the U.S. that qualify under Section 401(k) of the Internal Revenue Code, and a number of savings plans in international locations. Eligible U.S. employees may contribute a portion of their salary into the savings plans, subject to certain limitations. The Company matches a portion of each dollar a participant contributes into the plans. Employer-funded retirement benefits for all plans were $2.0 million, $2.0 million, and $2.6 million for the years ended March 31, 2025, 2024, and 2023, respectively, and were expensed as contributed.

X
- References No definition available. + Details
Name: | us-gaap_EquityAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Topic 505 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/505/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/718/tableOfContent + Details
Name: | us-gaap_ShareholdersEquityAndShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration