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STOCK-BASED COMPENSATION AND STOCKHOLDERS' EQUITY | 9 Months Ended
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Dec. 31, 2024
Equity [Abstract] |
STOCK-BASED COMPENSATION AND STOCKHOLDERS' EQUITY | STOCK-BASED COMPENSATION AND STOCKHOLDERS' EQUITY The Company accounts for stock-based compensation through the measurement and recognition of compensation expense for share-based payment awards made to employees, directors or consultants over the related requisite service period, including stock appreciation rights, restricted stock, restricted stock units ("RSUs") and performance stock units ("PSUs"), qualified performance-based awards, and stock grants (all issuable under the Company's equity incentive plans). 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 or four years and expire ten years after the grant. As of December 31, 2024, 10.0 million shares remained available for future grants under the 2022 Plan. Stock-Based Compensation The following table presents stock-based compensation expense (in thousands):
| Three Months Ended December 31, |  | Nine Months Ended December 31,
| 2024 |  | 2023 |  | 2024 |  | 2023
Cost of service revenue | $ | 499 |  |  | $ | 1,114 |  |  | $ | 2,447 |  |  | $ | 3,937 |
Cost of other revenue | 266 |  |  | 454 |  |  | 958 |  |  | 1,308 |
Research and development | 3,461 |  |  | 5,406 |  |  | 11,778 |  |  | 18,454 |
Sales and marketing | 2,288 |  |  | 3,611 |  |  | 7,389 |  |  | 12,177 |
General and administrative | 3,020 |  |  | 3,533 |  |  | 9,138 |  |  | 10,959 |
Total | $ | 9,534 |  |  | $ | 14,118 |  |  | $ | 31,710 |  |  | $ | 46,835 |
Restricted Stock Units The following table presents the RSU activity (shares in thousands):
| Number of Shares |  | Weighted Average Grant Date Fair Value |  | Weighted Average Remaining Contractual Term (in Years)
Balance as of March 31, 2024 | 10,325 |  |  | $ | 5.36 |  |  | 1.75
Granted | 6,899 |  |  | 1.99 |  |  |
Vested and released | (5,282) |  |  | 6.14 |  |  |
Forfeited | (950) |  |  | 4.38 |  |  |
Balance as of December 31, 2024 | 10,992 |  |  | $ | 2.96 |  |  | 1.00
As of December 31, 2024, there was $24.1 million of total unrecognized compensation cost related to RSUs, which is expected to be recognized over a weighted average of 1.84 years. Performance Stock Units PSUs are issued to a group of executives and generally time vest over periods ranging from one to three years from the grant date; vesting is generally also contingent upon achievement of applicable performance metrics or strategic objectives. Vesting of performance-based stock units granted can be tied to our total shareholder return, as measured relative to specified market indices during the applicable performance periods and be contingent upon continued service. The related stock-based compensation expense is recognized over the requisite service period and accounts for the probability that we will satisfy the performance measures or strategic objectives. The following table presents the PSU activity (shares in thousands):
| Number of Shares |  | Weighted Average Grant Date Fair Value |  | Weighted Average Remaining Contractual Term (in Years)
Balance as of March 31, 2024 | 2,531 |  |  | $ | 4.38 |  |  | 1.16
Granted | 1,750 |  |  | 1.88 |  |  |
Forfeited | (444) |  |  | 7.56 |  |  |
Balance as of December 31, 2024 | 3,837 |  |  | $ | 2.88 |  |  | 1.08
Total unrecognized compensation cost related to PSUs was $3.6 million as of December 31, 2024, which is expected to be recognized over a weighted average of 1.08 years. Employee Stock Purchase Plan ("ESPP") As of December 31, 2024, there was approximately $1.2 million of unrecognized compensation cost related to employee stock purchases. This cost is expected to be recognized over a weighted average period of 0.75 years. As of December 31, 2024, a total of 1.6 million shares were available for issuance under the ESPP.

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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 -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
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