Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Mar. 31, 2015 | Jul. 31, 2014 | |
Document and Entity Information | |||
Entity Registrant Name | Rally Software Development Corp | ||
Entity Central Index Key | 1313911 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Jan-15 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $240,865,538 | ||
Entity Common Stock, Shares Outstanding | 25,596,649 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jan. 31, 2015 | Jan. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $15,175 | $88,891 |
Short-term investments | 51,410 | |
Restricted cash | 15 | 16 |
Accounts receivable, net | 25,986 | 21,771 |
Other receivables | 117 | 78 |
Prepaid expenses and other current assets | 3,393 | 3,310 |
Total current assets | 96,096 | 114,066 |
Property and equipment, net (note 5) | 5,419 | 5,569 |
Goodwill | 2,104 | 2,529 |
Intangible assets, net (note 4) | 1,382 | 1,909 |
Restricted cash | 4,200 | 4,200 |
Other assets | 671 | 810 |
Total assets | 109,872 | 129,083 |
Current liabilities: | ||
Accounts payable | 3,230 | 2,170 |
Accrued liabilities (note 8) | 5,511 | 4,812 |
Deferred revenue | 43,978 | 38,352 |
Other current liabilities | 1,909 | 2,054 |
Total current liabilities | 54,628 | 47,388 |
Deferred revenue, net of current portion | 697 | 2,433 |
Other long-term liabilities | 876 | 888 |
Total liabilities | 56,201 | 50,709 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, $0.0001 par value per share. At January 31, 2015 and 2014, authorized, 200,000,000 shares; issued and outstanding , 25,416,609 and 24,786,413 shares, respectively | 3 | 3 |
Additional paid-in capital | 183,532 | 174,027 |
Accumulated deficit | -129,424 | -95,660 |
Accumulated other comprehensive income (loss) | -440 | 4 |
Total stockholders' equity | 53,671 | 78,374 |
Total liabilities and stockholders' equity | $109,872 | $129,083 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jan. 31, 2015 | Jan. 31, 2014 |
Consolidated Balance Sheets | ||
Common stock, par value per share (in dollars per share) | $0.00 | $0.00 |
Common stock, authorized shares | 200,000,000 | 200,000,000 |
Common stock, issued shares | 25,416,609 | 24,786,413 |
Common stock, outstanding shares | 25,416,609 | 24,786,413 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 | |||
Revenue: | ||||||
Subscription and support | $69,424 | $57,852 | $43,794 | |||
Perpetual license | 5,404 | 5,914 | 5,815 | |||
Total product revenue | 74,828 | 63,766 | 49,609 | |||
Professional services | 12,675 | 10,563 | 7,237 | |||
Total revenue | 87,503 | 74,329 | 56,846 | |||
Cost of revenue: | ||||||
Product | 11,455 | [1] | 7,567 | [1] | 5,242 | [1] |
Professional services | 12,108 | [1] | 9,105 | [1] | 7,005 | [1] |
Total cost of revenue | 23,563 | 16,672 | 12,247 | |||
Gross profit | 63,940 | 57,657 | 44,599 | |||
Operating expenses: | ||||||
Sales and marketing | 51,440 | [1] | 39,628 | [1] | 29,445 | [1] |
Research and development | 25,797 | [1] | 20,812 | [1] | 15,121 | [1] |
General and administrative | 19,737 | [1] | 16,708 | [1] | 10,810 | [1] |
Sublease termination income | -839 | |||||
Total operating expenses | 96,974 | 77,148 | 54,537 | |||
Loss from operations | -33,034 | -19,491 | -9,938 | |||
Other (expense) income: | ||||||
Interest and other income | 162 | 128 | 56 | |||
Interest expense | -464 | -683 | ||||
Loss on foreign currency transactions and other gain (loss) | -200 | -131 | -87 | |||
Loss before provision for income taxes | -33,072 | -19,958 | -10,652 | |||
Provision for income taxes | 692 | 173 | 128 | |||
Net loss attributable to common stockholders | ($33,764) | ($20,131) | ($10,780) | |||
Net loss per common share: | ||||||
Basic and diluted (in dollars per share) | ($1.35) | ($1.01) | ($5.13) | |||
Weighted-average common shares outstanding: | ||||||
Basic and diluted (in shares) | 25,093 | 19,841 | 2,101 | |||
[1] | Includes stockbased compensation expense as follows:Fiscal Year Ended B JanuaryB 31, B 201520142013B Cost of product revenueB B B B $379B B B B $250B B B B $16Cost of professional services revenueB 490B 181B 27Sales and marketingB 1,834B 1,316B 198Research and developmentB 1,397B 1,239B 193General and administrativeB 2,273B 1,465B 523$6,373$4,451$957 |
Consolidated_Statements_of_Ope1
Consolidated Statements of Operations (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 |
Stock-based compensation expense | $6,373 | $4,451 | $957 |
Cost of product revenue | |||
Stock-based compensation expense | 379 | 250 | 16 |
Cost of professional services revenue | |||
Stock-based compensation expense | 490 | 181 | 27 |
Sales and marketing | |||
Stock-based compensation expense | 1,834 | 1,316 | 198 |
Research and development | |||
Stock-based compensation expense | 1,397 | 1,239 | 193 |
General and administrative | |||
Stock-based compensation expense | $2,273 | $1,465 | $523 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 |
Consolidated Statements of Comprehensive Loss | |||
Net loss | ($33,764) | ($20,131) | ($10,780) |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | -444 | 1 | 5 |
Comprehensive loss | ($34,208) | ($20,130) | ($10,775) |
Consolidated_Statements_of_Com1
Consolidated Statements of Common Stockholders' Equity (Deficit) (USD $) | Common stock | Additional paid-in capital | Accumulated Other Comprehensive Income (Loss) | Accumulated deficit | Total |
In Thousands, except Share data, unless otherwise specified | |||||
Balance at Jan. 31, 2012 | $1 | $1,079 | ($2) | ($64,749) | ($63,671) |
Balance (in shares) at Jan. 31, 2012 | 1,976,000 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Common stock issued under stock-based compensation plans | 467 | 467 | |||
Common stock issued under stock-based compensation plans(in shares) | 423,000 | ||||
Stock-based compensation | 957 | 957 | |||
Net loss | -10,780 | -10,780 | |||
Other comprehensive income (loss) | 5 | 5 | |||
Balance at Jan. 31, 2013 | 1 | 2,503 | 3 | -75,529 | -73,022 |
Balance (in shares) at Jan. 31, 2013 | 2,399,000 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Common stock issued under stock-based compensation plans | 1,233 | 1,233 | |||
Common stock issued under stock-based compensation plans(in shares) | 459,000 | ||||
Common stock issued under employee stock purchase plan | 1,884 | 1,884 | |||
Common stock issued under employee stock purchase plan (in shares)+ | 158,000 | ||||
Estimated fair value of common stock issued as partial consideration in business acquisition | 1,293 | 1,293 | |||
Estimated fair value of common stock issued as partial consideration in business acquisition (in shares) | 120,000 | ||||
Issuance of common stock upon initial public offering, net of issuance costs | 1 | 86,954 | 86,955 | ||
Issuance of common stock upon initial public offering, net of issuance costs (in shares) | 6,900,000 | ||||
Conversion of preferred stock to common stock upon initial public offering | 1 | 68,409 | 68,410 | ||
Conversion of preferred stock to common stock upon initial public offering (in shares) | 14,336,000 | ||||
Reclassification of preferred stock warrant liability into additional paid-in capital upon initial public offering | 2,066 | 2,066 | |||
Cashless exercise of common stock warrants upon initial public offering (in shares) | 47,000 | ||||
Cashless exercise of common stock warrants (in shares) | 107,000 | ||||
Lapse of vesting restrictions on restricted stock (in shares) | 10,000 | ||||
Issuance of common stock upon follow-on offering, net of issuance costs | 5,234 | 5,234 | |||
Issuance of common stock upon follow-on offering, net of issuance costs (in shares) | 250,000 | ||||
Stock-based compensation | 4,451 | 4,451 | |||
Net loss | -20,131 | -20,131 | |||
Other comprehensive income (loss) | 1 | 1 | |||
Balance at Jan. 31, 2014 | 3 | 174,027 | 4 | -95,660 | 78,374 |
Balance (in shares) at Jan. 31, 2014 | 24,786,000 | 24,786,413 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Common stock issued under stock-based compensation plans | 613 | 613 | |||
Common stock issued under stock-based compensation plans(in shares) | 299,000 | ||||
Common stock issued under employee stock purchase plan | 2,715 | 2,715 | |||
Common stock issued under employee stock purchase plan (in shares)+ | 332,000 | ||||
Payroll taxes related to net settled restricted stock units | -196 | -196 | |||
Stock-based compensation | 6,373 | 6,373 | |||
Net loss | -33,764 | -33,764 | |||
Other comprehensive income (loss) | -444 | -444 | |||
Balance at Jan. 31, 2015 | $3 | $183,532 | ($440) | ($129,424) | $53,671 |
Balance (in shares) at Jan. 31, 2015 | 25,417,000 | 25,416,609 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 |
Cash flow from operating activities: | |||
Net loss | ($33,764) | ($20,131) | ($10,780) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 3,039 | 2,686 | 1,893 |
Noncash stock-based compensation expense | 6,373 | 4,451 | 957 |
Noncash interest expense | 462 | 679 | |
Noncash sublease termination income | -839 | ||
Loss (gain) on disposition of property and equipment | 130 | 3 | -6 |
Other | 33 | -9 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | -4,214 | -5,454 | -4,414 |
Other receivables | -39 | 213 | -246 |
Prepaid expenses and other current assets | -83 | -1,374 | -1,091 |
Other assets | 73 | -427 | -106 |
Accounts payable and accrued liabilities | 1,727 | 1,958 | 1,318 |
Deferred revenue | 3,889 | 2,595 | 13,082 |
Other current liabilities | -145 | 806 | 491 |
Deferred rent expense, net of current portion | -12 | -50 | 892 |
Restricted cash, short-term | 1 | -16 | |
Restricted cash, long-term | -4,200 | ||
Net cash provided by (used in) operating activities | -22,992 | -18,478 | 1,821 |
Cash flows from investing activities: | |||
Purchase of property and equipment | -2,494 | -3,963 | -2,405 |
Purchase of investments | -55,610 | ||
Proceeds from maturities of investments | 4,233 | ||
Proceeds from sale of property and equipment | 15 | 12 | |
Purchase of Agile Advantage, Inc. assets | -420 | ||
Purchase of Flowdock Oy, net of cash received | -2,857 | ||
Net cash used in investing activities | -53,856 | -6,820 | -2,813 |
Cash flows from financing activities: | |||
Proceeds from initial public offering, net of underwriting discounts and commissions | 89,838 | ||
Proceeds from follow-on offering, net of underwriting discounts and commissions | 5,884 | ||
Proceeds from exercise of common stock options | 613 | 1,233 | 451 |
Proceeds from issuance of common stock under employee stock purchase plan | 2,715 | 1,884 | |
Payment of payroll taxes related to net settled restricted stock units | -196 | ||
Payments of offering costs | -2,259 | -1,271 | |
Payments on capital lease obligations | -31 | ||
Net cash provided by (used in) financing activities | 3,132 | 96,580 | -851 |
Net increase (decrease) in cash and cash equivalents | -73,716 | 71,282 | -1,843 |
Cash and cash equivalents-beginning of year | 88,891 | 17,609 | 19,452 |
Cash and cash equivalents-end of year | 15,175 | 88,891 | 17,609 |
Supplementary information: | |||
Cash paid for interest | 2 | 4 | |
Cash paid for income taxes | 943 | 127 | 57 |
Noncash investing and financing activities: | |||
Conversion of redeemable convertible preferred stock to common stock | 68,410 | ||
Conversion of preferred stock warrants to common stock warrants | 2,066 | ||
Common stock issued as partial consideration for purchase of Flowdock Oy | 1,293 | ||
Property and equipment purchases in accounts payable | 48 | 34 | 81 |
Offering costs included in accounts payable | $181 |
Description_and_Nature_of_Busi
Description and Nature of Business and Operations | 12 Months Ended |
Jan. 31, 2015 | |
Description and Nature of Business and Operations | |
Description and Nature of Business and Operations | (1) Description and Nature of Business and Operations |
Rally Software Development Corp. (we, our or us) delivers software and services that drive agility. Organizations worldwide use our solutions to navigate evolving market demands, improve performance, and accelerate the pace of innovation to deliver value faster. Our enterprise-class cloud-based platform transforms the way organizations manage the software development lifecycle by aligning software development with strategic business objectives, facilitating collaboration, and increasing transparency. By applying Agile and Lean approaches, our consulting and training services help companies innovate, lead, adapt, and deliver. | |
Our headquarters are located in Boulder, Colorado. We were incorporated in the State of Delaware on July 12, 2001. At January 31, 2015, we had six subsidiaries: Rally Software Development International Corp. (RSDI); Rally Software Development Australia Pty Limited; Rally Software Development Netherlands B.V.; Rally Software Development Canada B.C. Ltd.; Rally Singapore Pte Ltd.; and Flowdock Oy. | |
Our fiscal year ends on January 31. Our fiscal quarters end on April 30, July 31, October 31 and January 31. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||
Jan. 31, 2015 | |||||||||||
Summary of Significant Accounting Policies | |||||||||||
Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies | ||||||||||
(a) Basis of Presentation and Consolidation | |||||||||||
The accompanying consolidated financial statements included the accounts of us and our wholly-owned subsidiaries. All significant intercompany balances have been eliminated in consolidation. | |||||||||||
(b) Initial Public Offering and Follow-On Public Offering | |||||||||||
On April 17, 2013, we closed our IPO of 6,900,000 shares of common stock, including 900,000 shares sold pursuant to the underwriters' option to purchase additional shares. The public offering price of the shares sold in our IPO was $14.00 per share. All outstanding shares of our redeemable convertible preferred stock converted to 14,335,869 shares of common stock and all outstanding preferred stock warrants converted into warrants to purchase common stock at the closing of our IPO. Our shares of common stock are traded on the New York Stock Exchange under the symbol "RALY". We received proceeds from our IPO of $89.8 million, net of underwriting discounts and commissions, but before offering expenses of $2.9 million. | |||||||||||
On July 30, 2013, we closed our follow-on public offering in which we and certain of our stockholders sold an aggregate of 5,589,455 shares of common stock, including 729,058 shares sold pursuant to the underwriters' option to purchase additional shares. The public offering price of the shares sold in the offering was $24.75 per share. Of the 5,589,455 shares of common stock sold in the offering, 250,000 shares were sold by us and 5,339,455 shares were sold by selling stockholders. We received proceeds from the offering of $5.9 million, net of underwriting discounts and commissions, but before offering expenses of $0.6 million. | |||||||||||
(c) Use of Estimates | |||||||||||
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. The more critical estimates and related assumptions that affect our consolidated financial condition and results of operations are in the areas of revenue recognition; measurement of the fair value of equity instruments, including stock-based compensation; impairment assessment of goodwill, intangible assets and other long-lived assets; and income taxes. Such estimates often require the selection of appropriate valuation methodologies and models, and significant judgment in evaluating ranges of assumptions and financial inputs. Actual results may differ from those estimates. | |||||||||||
(d) Segments | |||||||||||
Operating segments are defined as components of an enterprise about which discrete financial information is available that is evaluated on a regular basis by the chief operating decision maker, or decision making group, in deciding how to allocate resources and assess performance. Our chief operating decision makers are the Chief Executive Officer and Chief Financial Officer. Our Chief Executive and Chief Financial Officer review consolidated operating results to make decisions about allocating resources and assessing performance for the entire company. We view our operations and manage our business as one operating segment. | |||||||||||
(e) Cash and Cash Equivalents | |||||||||||
We consider all highly liquid investments purchased with an original maturity of 90 days or less to be cash equivalents. Cash equivalents consist primarily of investments in a money market mutual fund, a bank money market account and certificates of deposit. We record money market funds at the net asset value reported by the investment manager as there are no restrictions on our ability, contractual or otherwise, to redeem our investments at the stated net asset value reported by the investment manager. | |||||||||||
(f) Investment Securities | |||||||||||
Investment securities at January 31, 2015 consist of certificates of deposit and commercial paper. We classify our debt securities as held-to-maturity. Held-to-maturity debt securities are those debt securities in which we have the ability and intent to hold the security until maturity. Held-to-maturity debt securities are recorded at amortized cost, adjusted for the amortization or accretion of premiums or discounts. Premiums and discounts on debt securities are amortized or accreted over the life of the related held-to-maturity security as an adjustment to yield using the effective-interest method. Such amortization and accretion is included in the "Interest and other income" line item in our consolidated statements of operations. Dividend and interest income is recognized when earned. Our consolidated statements of operations do not reflect any impairment (that is, the difference between the security's amortized cost basis and fair value) on held-to-maturity debt securities due to the fact that management has no intent to sell and believes that it is more likely than not that we will not be required to sell a security prior to any recovery. | |||||||||||
(g) Accounts Receivable and Allowance for Doubtful Accounts | |||||||||||
Trade accounts receivable represent trade receivables from customers when we have invoiced for subscriptions, support, perpetual software licenses or professional services and have not received payment. Receivables are recorded at the invoiced amount and do not bear interest. We maintain an allowance for doubtful accounts for estimated losses inherent in our accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and our customers' financial condition, the amount of receivables in dispute, and the current receivables' aging and current payment patterns. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. | |||||||||||
Allowance for doubtful accounts activity and balances are presented below (in thousands): | |||||||||||
Fiscal Year Ended | |||||||||||
January 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Balance at beginning of year | $ | 67 | $ | 48 | $ | 42 | |||||
Charges for bad debts | 70 | 29 | 83 | ||||||||
Write-offs and adjustments | (13 | ) | (10 | ) | (77 | ) | |||||
| | | | | | | | | | | |
Balance at end of year | $ | 124 | $ | 67 | $ | 48 | |||||
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| | | | | | | | | | | |
(h) Property and Equipment and Acquired Intangible Assets | |||||||||||
Property and equipment are recorded at cost. Property and equipment are depreciated using the straight-line method over the following estimated useful lives: | |||||||||||
Asset class | Useful life | ||||||||||
Computer equipment | 3 years | ||||||||||
Office equipment | 5 years | ||||||||||
Office furniture | 5 years | ||||||||||
Computer software | 3 years | ||||||||||
Leasehold improvements | The shorter of the estimated useful life or the term of the lease | ||||||||||
Upon retirement or sale, the costs of assets disposed of and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in other gain (loss) in the consolidated statements of operations. Maintenance and repairs that do not improve or extend the lives of the respective assets are expensed in the period incurred. | |||||||||||
Our acquired intangible assets consist of developed software technology and trademark and domain names. The values assigned to our intangible assets are based on estimates and judgments. Intangible assets are amortized on a straight-line basis over the following estimated useful lives: | |||||||||||
Asset class | Useful life | ||||||||||
Developed software technology | 3 - 5 years | ||||||||||
Trademark and domain names | 15 years | ||||||||||
We evaluate long-lived assets, such as property and equipment and definite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset group may not be recoverable. For the purposes of impairment testing, we have determined that we have one group of assets. If this evaluation indicates the carrying value will not be recoverable, based on the undiscounted expected future cash flows estimated to be generated by these assets, we reduce the carrying amount to the estimated fair value. Fair value is determined through various valuation techniques including discounted cash flow modeling. To date, no such impairment has occurred. | |||||||||||
(i) Goodwill and Intangible Assets | |||||||||||
Goodwill represents the excess of the purchase price of the acquired enterprise over the fair value of identifiable assets acquired and liabilities assumed. We apply ASC 350, "Intangibles—Goodwill and Other," and will perform an annual goodwill impairment test during the fourth quarter of our fiscal year and more frequently if an event or circumstance indicates that an impairment may have occurred. For the purposes of impairment testing, we have determined that we have one reporting unit and we make a qualitative assessment to determine if goodwill may be impaired. If it is more likely than not that a reporting unit's fair value is less than its carrying value, we then compare the fair value of the reporting unit to its respective carrying amount. If the carrying value of a reporting unit were to exceed its fair value, we would then compare the implied fair value of the reporting unit's goodwill to its carrying amount, and any excess of the carrying amount over the fair value would be charged to operations as an impairment loss. Any excess of the carrying value over the fair value of indefinite-lived intangible assets is also charged to operations as an impairment loss. To date, no such impairment has occurred. | |||||||||||
(j) Income Taxes | |||||||||||
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. A valuation allowance is recorded to the extent it is more likely than not that a deferred tax asset will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in our statement of operations in the period that includes the enactment date. Our U.S. net deferred tax asset has been completely reduced by a valuation allowance as management cannot conclude that realization of the deferred tax asset is assured, on a more likely than not basis, at each balance sheet date, due primarily to our history of operating losses. | |||||||||||
We recognize the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurred. All current tax positions are considered more likely than not of being sustained with no measurement for possible settlements. | |||||||||||
(k) Deferred Revenue | |||||||||||
Deferred revenue comprises unrecognized subscription and support, which includes hosting and maintenance, perpetual licenses, tool training, enhanced support and prepaid professional services revenue. With the exception of perpetual licenses, these arrangements are initially recorded as deferred revenue upon the commencement of the subscription, hosting or maintenance period, and revenue is recognized in the consolidated statements of operations ratably over the term of the arrangement. Perpetual licenses are generally recognized upon delivery of the software product to the customer. Prepaid professional services arrangements are recorded initially as deferred revenue and are recognized as the services are performed. | |||||||||||
(l) Revenue Recognition | |||||||||||
We generate revenue primarily from three sources: (1) subscriptions and support; (2) perpetual licenses; and (3) professional services. Subscription and support revenue is primarily comprised of fees that give customers access to our suite of cloud-based solutions, as well as optional hosting and maintenance related to perpetual licenses. Professional services revenue largely encompasses fees related to the instruction of Agile software development methodologies, which includes reimbursed expenses and training related directly to the product. | |||||||||||
Revenue is recognized when all of the following conditions have been met: | |||||||||||
• | there is persuasive evidence of an arrangement; | ||||||||||
• | the service has been provided or the product has been delivered; | ||||||||||
• | the price is fixed or determinable; and | ||||||||||
• | collection of the fees is sufficiently assured. | ||||||||||
Signed agreements, which may include purchase orders, are used as evidence of an arrangement. In cases where both a signed contract and a purchase order exist, we consider the signed contract to be persuasive evidence of the arrangement. Product delivery occurs when we provide the customer with access to the software via an electronic notification or license key. We assess whether a fee is fixed or determinable at the outset of the arrangement, primarily based on the payment terms associated with the transaction. We assess collectability of the fee based on a number of factors, such as the collection history and creditworthiness of the customer. If we determine that collectability is not sufficiently assured, revenue is deferred until collectability becomes sufficiently assured, generally upon receipt of cash. | |||||||||||
Subscription and support revenue is recognized ratably over the contract term beginning on the commencement date of each contract. | |||||||||||
When multiple deliverables included in an arrangement are separable into different units of accounting, the arrangement consideration is allocated to the identified separate units of accounting based on their relative selling prices. Multiple deliverable arrangement accounting guidance provides a hierarchy to use when determining the relative selling price for each unit of accounting. This guidance provides that vendor-specific objective evidence (VSOE) of selling price, based on the price at which the item is regularly sold by the vendor on a stand-alone basis, should be used if it exists. We use VSOE to determine the stand-alone selling prices of subscription, hosting, maintenance, and professional services because substantially all separate sales of these deliverables fall within a reasonable range of prices. All unique product offerings are grouped based upon size of customer as a result of our tiered volume pricing. VSOE for professional services is determined regardless of customer size as customer size does not significantly impact the prices charged. We have concluded that all products and services for each single unit of accounting have VSOE, other than perpetual licenses discussed below. | |||||||||||
We monitor compliance with VSOE by using a bell curve approach. Sales of subscription, hosting, maintenance and professional services are analyzed to determine whether 80% of the transactions are within a range of 15% of the median of the transactions for an appropriate group of customers. | |||||||||||
When VSOE exists for all undelivered elements of the contract, perpetual license fee revenue is generally recognized upon delivery of the software product to the customer, provided the other revenue recognition conditions are met. We have established VSOE for all undelivered elements of our perpetual license arrangements. Maintenance revenue consists of fees for providing unspecified software updates on a when and if available basis and technical support for software products. Hosting revenue relates to fees for hosting perpetual license software that the customer has purchased at our third-party data centers. Our perpetual license customers who purchase hosting have the right to take possession of the software at any time. Hosting and maintenance revenue as well as enhanced support is recognized ratably over the term of the agreement. | |||||||||||
Professional services revenue is accounted for separately from subscription and perpetual license revenue when VSOE exists and, for subscriptions, has stand-alone value to the customer. Professional services are generally provided on a time-and-materials basis. The services that are provided on a time-and-materials basis are recognized as services are provided. However, professional services that do not have stand-alone value to the customer are recognized ratably over the remaining subscription period. We present reimbursements received for out of pocket expenses within professional services revenue. Reimbursement revenue was approximately $1.2 million, $1.2 million and $0.7 million for the fiscal years ended January 31, 2015, 2014 and 2013, respectively. | |||||||||||
(m) Research and Development | |||||||||||
Research and development expenses consist primarily of personnel and related expenses for our research and development staff, including salaries, benefits, bonuses and stock-based compensation, certain software licenses and allocated overhead, including depreciation. Research and development costs are expensed as incurred. We develop software, which is sold as a subscription or licensed for a stated term or in perpetuity. Qualifying software development costs are required to be capitalized once technological feasibility of the software has been established. Costs incurred prior to establishing technological feasibility are expensed as incurred. Technological feasibility is established when we have completed all planning, designing, coding, and testing activities that are necessary to determine that a product can be produced to meet its design specifications, including functions, features, and technical performance requirements. Capitalization of costs ceases when the product is available for general use. | |||||||||||
To date, the period between achieving technological feasibility and the general availability of such software has been short. Consequently, software development costs qualifying for capitalization have been insignificant, and therefore, we have not capitalized any software development costs to date. | |||||||||||
(n) Leases | |||||||||||
We lease our facilities under operating leases. For leases that contain rent escalation or rent concession provisions, we record the total rent expense during the lease term on a straight-line basis over the term of the lease. We record the difference between the rent paid and the straight-line rent expense as a current liability in other current liabilities and the noncurrent portion in other long-term liabilities in the accompanying consolidated balance sheets. Rent expense was $3.2 million, $2.3 million and $1.6 million for the fiscal years ended January 31, 2015, 2014 and 2013, respectively. | |||||||||||
(o) Advertising | |||||||||||
Advertising costs are expensed as incurred and include search engine fees, banner ads, digital marketing and events. Advertising expense was $3.3 million, $2.8 million and $1.7 million for the fiscal years ended January 31, 2015, 2014 and 2013, respectively. Advertising costs are recorded in sales and marketing expense within the accompanying consolidated statements of operations. | |||||||||||
(p) Commissions | |||||||||||
Commissions are recorded as a component of sales and marketing expense and consist of the variable compensation paid to our sales force. Sales commissions are earned by employees and recorded at the time that a customer has entered into a binding purchase agreement. Commissions paid to sales personnel are recoverable only in cases where we cannot collect the invoiced amounts associated with a sales order. Commission expense was $9.5 million, $8.5 million and $7.9 million for the fiscal years ended January 31, 2015, 2014 and 2013, respectively. | |||||||||||
(q) Stock-Based Compensation | |||||||||||
Stock-based compensation to employees and members of our Board of Directors is measured at the grant date fair values of the respective options to purchase our common stock, and expensed on a straight-line basis over the period in which the holder is required to provide services, which is usually the vesting period. We determine the grant date fair value of all stock options using the Black-Scholes option pricing model. An estimate of forfeitures is applied when calculating compensation expense. Restricted stock and RSUs are measured at fair value based on our share price at the date of grant and expensed on a straight-line basis over the period in which the holder is required to provide services, which is generally the vesting period. We recognize compensation expense related to shares issued pursuant to the ESPP, on a straight-line basis over the offering period, which is generally one year with the exception of the initial purchase period within an offering period, which is generally six months. | |||||||||||
(r) Preferred Stock Warrant Liability | |||||||||||
We accounted for warrants to purchase redeemable convertible preferred stock as a liability. The warrants were recorded at fair value, estimated using the Black-Scholes option pricing model and revalued at each balance sheet date. The change in the fair value of the warrants was recorded as a component of interest expense. The preferred stock warrant liability was reclassified to additional paid-in capital upon the closing of our IPO in April 2013. | |||||||||||
(s) Foreign Currency Translation | |||||||||||
The functional currency of our foreign subsidiaries is the local currency. We conduct business in the United Kingdom through a branch of RSDI and in Australia, Canada, Finland, the Netherlands and Singapore through subsidiaries of RSDI. The functional currency of the branch and subsidiaries are the British pound, the Australian dollar, the Canadian dollar, the Euro and the Singaporean dollar. All assets and liabilities for the branch and subsidiaries denominated in a foreign currency are translated into U.S. dollars based on the exchange rate on the balance sheet date, and revenue and expenses are translated at the average exchange rates during the period. The effects of foreign exchange gains and losses arising from the translation of assets and liabilities of foreign subsidiaries are included as a component of other comprehensive income (loss). | |||||||||||
We maintain short-term intercompany payables denominated in each subsidiary's functional currency. Gains and losses associated with remeasurement of these payables into U.S. dollars are presented within loss on foreign currency transactions included in the consolidated statements of operations as we intend to settle these payables in cash. | |||||||||||
(t) Concentration of Credit Risk and Significant Customers | |||||||||||
Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash, cash equivalents, short-term investments and accounts receivable. At January 31, 2015 and 2014, we had $38.2 million and $60.0 million, respectively, in certificates of deposits at various financial institutions, of which $28.4 million and $50.3 million, respectively, are fully insured by the Federal Deposit Insurance Corporation. Of the certificates of deposits held at January 31, 2015, $1.8 million were classified as cash equivalents and $36.4 million were classified as short-term investments. All certificates of deposits held at January 31, 2014 were classified as cash equivalents. Primarily all of the remaining amount of cash, cash equivalents and short-term investments were held at financial institutions that we believe to be creditworthy and represent minimal risk of loss of principle. We invest in commercial paper with a minimum rating of A-1, P-1, F-1 or better by two of the three Nationally Recognized Statistical Rating Organizations, which includes Moody's investor service, Standard & Poor's and Fitch Ratings. Large bank certificates of deposit must have a minimum rating of A or better. | |||||||||||
We perform ongoing evaluations of our customers' financial condition and do not require any collateral to support receivables. As of January 31, 2015 and 2014, no customer accounted for more than 10% of accounts receivable. During the fiscal years ended January 31, 2015, 2014 and 2013, no customer represented more than 10% of revenue. | |||||||||||
(u) Recent Accounting Pronouncements | |||||||||||
Under the Jumpstart Our Business Startups Act (JOBS Act), we meet the definition of an emerging growth company. We have irrevocably elected to opt out of the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act. | |||||||||||
On May 28, 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, "Revenue from Contracts with Customers." This ASU is the result of a convergence project between the FASB and the International Accounting Standards Board. The core principle behind ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for delivering those goods and services. This model involves a five-step process that includes identifying the contract with the customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations in the contract and recognizing revenue when (or as) the entity satisfies the performance obligations. The guidance in the ASU supersedes existing revenue recognition guidance and is effective for annual reporting periods beginning after December 15, 2016 with early application not permitted. We are evaluating the impact of the new standard on our consolidated financial position, results of operations and cash flows. | |||||||||||
On August 27, 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern." The new standard provides guidance around management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, with early adoption permitted. The adoption of this standard is not expected to have a material impact on our financial statements at this point in time. As of January 31, 2015, we have not adopted this standard. | |||||||||||
Acquisitions
Acquisitions | 12 Months Ended |
Jan. 31, 2015 | |
Acquisitions | |
Acquisitions | (3) Acquisitions |
(a) Agile Advantage, Inc. | |
On July 18, 2012, we completed the acquisition of Agile Advantage, Inc. (Agile) and the results of Agile's operations have been included in the consolidated financial statements since that date. The total consideration paid by us was $420,000 all of which was paid in cash. | |
The acquisition of Agile has been accounted for as a purchase of a business, and accordingly, the total purchase price has been allocated to the tangible and identifiable intangible assets acquired and the liabilities assumed based on their respective fair values on the acquisition date. As a result of the acquisition of Agile, we recorded an intangible asset related to developed software technology for $420,000. The estimated useful life of the acquired developed software technology was 3 years which is being amortized on a straight-line basis. | |
(b) Flowdock Oy | |
On February 5, 2013, we completed the acquisition of Flowdock Oy (Flowdock), a company based in Helsinki, Finland, and the results of Flowdock's operations have been included in the consolidated financial statements since that date. The acquisition provides us with a stand-alone unified communication and team-based chat collaboration product offering that is also complimentary to existing Rally solutions. The total consideration paid by us was approximately $4.4 million, which consisted of $3.0 million in cash, $0.1 million in net assumed liabilities and 119,993 shares of common stock valued at $10.78 per share. Cash of $0.1 million and 23,998 shares of common stock were held back for one year to satisfy any potential indemnification claims and on February 5, 2014, were released in full. Transaction costs of $0.5 million were expensed as incurred, $0.3 million of which were incurred in the fourth quarter of fiscal 2013 and $0.2 million of which were incurred in the first quarter of fiscal 2014. | |
The acquisition of Flowdock was accounted for as a purchase of a business, and accordingly, the total purchase price was allocated to the tangible and identifiable intangible assets acquired and the liabilities assumed based on their respective fair values on the acquisition date. As a result of the acquisition of Flowdock, we recorded intangible assets of $4.6 million, which was comprised of $1.9 million related to developed software and technology, $0.2 million related to trademark and domain names and $2.5 million related to goodwill. The estimated useful life of the acquired developed software and technology is five years and the estimated useful life of the trademark and domain names is 15 years. | |
Goodwill_and_Acquired_Intangib
Goodwill and Acquired Intangible Assets | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Goodwill and Acquired Intangible Assets | ||||||||
Goodwill and Acquired Intangible Assets | (4) Goodwill and Acquired Intangible Assets | |||||||
In connection with the acquisition of Flowdock we recorded goodwill of $2.5 million. The change in goodwill from January 31, 2014 to January 31, 2015 was a result of foreign currency translation adjustments. | ||||||||
As of January 31, 2015 and 2014, intangible assets, excluding goodwill, consist of the following (in thousands): | ||||||||
January 31, | January 31, | |||||||
2015 | 2014 | |||||||
Developed software technology | $ | 2,578 | $ | 2,578 | ||||
Trademark and domain names | 226 | 226 | ||||||
| | | | | | | | |
2,804 | 2,804 | |||||||
Less accumulated amortization | (1,422 | ) | (895 | ) | ||||
| | | | | | | | |
$ | 1,382 | $ | 1,909 | |||||
| | | | | | | | |
| | | | | | | | |
Amortization expense related to acquired intangible assets for the fiscal years ended January 31, 2015, 2014, and 2013 was $0.5 million, $0.5 million and $0.2 million, respectively. | ||||||||
As of January 31, 2015, future estimated amortization expenses related to acquired intangible assets were as follows (in thousands): | ||||||||
Fiscal year ended January 31: | ||||||||
2016 | $ | 457 | ||||||
2017 | 387 | |||||||
2018 | 387 | |||||||
2019 | 15 | |||||||
2020 | 15 | |||||||
Thereafter | 121 | |||||||
| | | | | ||||
Total future estimated amortization expense | $ | 1,382 | ||||||
| | | | | ||||
| | | | | ||||
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Property and Equipment | ||||||||
Property and Equipment | (5) Property and Equipment | |||||||
Property and equipment are stated at cost, net of accumulated depreciation and amortization. These assets are depreciated and amortized using the straight-line method over their estimated useful lives with the exception of leasehold improvements, which are depreciated over the shorter of the useful life of the asset or the related lease term. | ||||||||
As of January 31, 2015 and 2014, property and equipment consisted of the following (in thousands): | ||||||||
January 31, | January 31, | |||||||
2015 | 2014 | |||||||
Computers, peripherals and software | $ | 10,677 | $ | 8,935 | ||||
Office furniture and equipment | 1,897 | 1,523 | ||||||
Leasehold improvements | 1,535 | 1,453 | ||||||
| | | | | | | | |
14,109 | 11,911 | |||||||
Less accumulated depreciation and amortization | (8,690 | ) | (6,342 | ) | ||||
| | | | | | | | |
$ | 5,419 | $ | 5,569 | |||||
| | | | | | | | |
| | | | | | | | |
Depreciation expense related to property and equipment, for the fiscal years ended January 31, 2015, 2014, and 2013 was $2.5 million, $2.2 million and $1.7 million, respectively. | ||||||||
Short_term_Investments
Short term Investments | 12 Months Ended | |||||||||||||
Jan. 31, 2015 | ||||||||||||||
Short-Term Investments | ||||||||||||||
Short-Term Investments | (6) Short-Term Investments | |||||||||||||
As of January 31, 2015, our short-term investments, all of which are classified as held-to-maturity, consisted of the following (in thousands): | ||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||
Cost | Gains | Losses | Value | |||||||||||
Certificates of deposit | $ | 36,417 | $ | — | $ | (46 | ) | $ | 36,371 | |||||
Commercial paper | 14,993 | — | — | 14,993 | ||||||||||
| | | | | | | | | | | | | | |
Total short-term investments | $ | 51,410 | $ | — | $ | (46 | ) | $ | 51,364 | |||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
All investments in debt securities have been classified as held-to-maturity and measured at amortized cost in the consolidated balance sheets as we have both the intent and ability to hold the securities to maturity. As of January 31, 2015, the contractual maturities of our investments did not exceed 12 months. | ||||||||||||||
Fair_Value_Measurement
Fair Value Measurement | 12 Months Ended | ||||||||||
Jan. 31, 2015 | |||||||||||
Fair Value Measurement | |||||||||||
Fair Value Measurement | (7) Fair Value Measurement | ||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date. A hierarchy for inputs used in measuring fair value has been defined to minimize the use of unobservable inputs by requiring the use of observable market data when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on active market data. Unobservable inputs are inputs that reflect our assumptions about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. | |||||||||||
The fair value hierarchy prioritizes the inputs into three broad levels: | |||||||||||
Level 1 inputs utilize quoted prices in active markets for identical assets that we have the ability to access at period-end. | |||||||||||
Level 2 inputs include quoted prices for similar assets in active markets and inputs other than quoted prices that are observable for the asset, either directly or indirectly. | |||||||||||
Level 3 inputs are unobservable inputs and include situations where there is little, if any, market activity for the balance sheet items at period-end. Pricing inputs are unobservable for the terms and are based on our own assumptions about the assumptions that a market participant would use. | |||||||||||
The following table summarizes, for each category of assets, the respective fair value and the classification by level of input within the fair value hierarchy as of January 31, 2015 (in thousands): | |||||||||||
Fair Value | |||||||||||
Measurements | |||||||||||
Fair Value as of | Using | ||||||||||
January 31, 2015 | Level 1 | Level 2 | |||||||||
Cash and cash equivalents: | |||||||||||
Money market funds | $ | 4,396 | $ | 4,396 | $ | — | |||||
Certificates of deposit | 1,743 | — | 1,743 | ||||||||
Short-term investments: | |||||||||||
Certificates of deposit | $ | 36,371 | $ | — | $ | 36,371 | |||||
Commercial paper | 14,993 | — | 14,993 | ||||||||
The following table summarizes, for each category of assets, the respective fair value and the classification by level of input within the fair value hierarchy as of January 31, 2014 (in thousands): | |||||||||||
Fair Value | |||||||||||
Measurements | |||||||||||
Fair Value as of | Using | ||||||||||
January 31, 2014 | Level 1 | Level 2 | |||||||||
Cash and cash equivalents: | |||||||||||
Money market funds | $ | 26,284 | $ | 26,284 | $ | — | |||||
Certificates of deposit | 60,016 | 60,016 | — | ||||||||
We determine the fair value of our security holdings based on pricing from our service provider and market prices from industry-standard independent data providers. Such market prices may be quoted prices in active markets for identical assets (Level 1 inputs) or pricing determined using inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs), such as yield curve, volatility factors, credit spreads, default rates, loss severity, current market and contractual prices for the underlying instruments or debt, broker and dealer quotes, as well as other relevant economic measures. | |||||||||||
Accrued_Liabilities
Accrued Liabilities | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Accrued Liabilities | ||||||||
Accrued Liabilities | (8) Accrued Liabilities | |||||||
Accrued liabilities as of January 31, 2015 and 2014 consisted of the following (in thousands): | ||||||||
January 31, | January 31, | |||||||
2015 | 2014 | |||||||
Accrued vacation and employee benefits | $ | 2,024 | $ | 1,731 | ||||
Accrued bonuses | 1,576 | 733 | ||||||
Accrued commissions and salary | 1,911 | 2,348 | ||||||
| | | | | | | | |
$ | 5,511 | $ | 4,812 | |||||
| | | | | | | | |
| | | | | | | | |
Revolving_Credit_Facility
Revolving Credit Facility | 12 Months Ended |
Jan. 31, 2015 | |
Revolving Credit Facility | |
Revolving Credit Facility | (9) Revolving Credit Facility |
On November 5, 2014 we entered into a credit agreement with Wells Fargo Bank, National Association. The credit agreement provides for a secured revolving credit facility in an amount of up to $15.0 million, which includes a sublimit of $5.0 million for the issuance of sight commercial and standby letters of credit. Our obligation to repay advances under the credit agreement is evidenced by a promissory note. The credit agreement matures on October 31, 2015. | |
No amounts were outstanding on the credit facility as of January 31, 2015. Any borrowings under the credit facility would have borne interest at a rate equal to the outstanding principal balance at a fluctuating rate per annum to be 1.5% above the daily one month London Interbank Offered Rate (LIBOR), which was 1.67% at January 31, 2015. | |
Our obligations under the credit agreement is secured by substantially all of our assets and the assets of RSDI. The credit agreement contains customary representations and warranties, including negative covenants that limit or restrict without the banks consent, among other things, the payment of dividends, additional indebtedness, capital expenditures in excess of $10.0 million in a fiscal year, mergers, consolidation or transfer of assets, asset pledges, certain investments, guaranties, loans, and other matters customarily restricted in such agreements. In addition, the credit agreement includes a liquidity covenant that requires $35.0 million in unencumbered liquid assets as defined in the agreement. We were in compliance with our covenants as of January 31, 2015. The credit agreement also contained usual and customary events of default (subject to certain threshold amounts and grace periods) on the occurrence of events such as nonpayment of amounts due under the agreement, violation of the restrictive covenants referred to above, violation of other contractual provisions, a material adverse change in our business, attachment of our assets, our insolvency or certain other events. | |
Warrants
Warrants | 12 Months Ended | ||||||
Jan. 31, 2015 | |||||||
Warrants | |||||||
Warrants | (10) Warrants | ||||||
The following table summarizes information about preferred stock warrants outstanding at April 17, 2013 (close of IPO): | |||||||
Preferred Stock Warrants | |||||||
A-1 | B | C | |||||
Number of warrants outstanding | 32,750 | 40,141 | 64,755 | ||||
Exercise price | $2.50 | $2.82 | $3.78 | ||||
Expiration | Jul-15 | May 2014 - June 2018 | October 2015 - June 2018 | ||||
Preferred stock warrants were reported as liabilities at their estimated fair value. Changes in fair value were reflected in the consolidated statements of operations as a component of interest expense. We computed the fair value of warrants using a Black-Scholes option pricing model. In order to calculate the fair value of the warrants, certain assumptions were made regarding components of the model, including volatility, risk free interest rates, and the fair value of preferred stock underlying the warrant. The use of different assumptions could have caused significant changes to fair value. Our estimated volatility utilized an average of the stock volatility of peer, publicly traded companies. The risk free interest rates were based on U.S. Treasury yields for treasury securities of similar maturity. The fair value of preferred stock underlying the warrants was estimated using the probability weighted expected return method (PWERM). Under the PWERM, share value was based upon the probability weighted present value of expected future net cash flows (distributions to stockholders), considering each of the possible future events and giving consideration for the rights and preferences of each class of stock. Accordingly, we computed the fair value of warrants to purchase preferred stock at January 31, 2013 and April 17, 2013 based on Level 3 inputs. | |||||||
At April 17, 2013, the fair value of the warrant liability was calculated using the following underlying assumptions: | |||||||
April 17, 2013 (Close of IPO) | |||||||
Risk-free interest rate | 0.71% | ||||||
Expected term | Remaining contractual term | ||||||
Expected dividend yield | — | ||||||
Expected volatility | 49.00% | ||||||
In connection with the closing of our IPO, each of the preferred stock warrants automatically converted into a warrant to purchase shares of common stock with substantially the same terms. So long as the warrants remained outstanding and exercisable for redeemable convertible preferred stock, the warrant liability was recorded at fair value at each balance sheet date with any change in fair value included as a component of interest expense. We recognized $0.5 million and $0.7 million for the fiscal years ended January 31, 2014 and 2013, respectively, for the change in fair value of the warrants. At the time of conversion of the warrants upon the closing of our IPO, the fair value of the warrants was $2.1 million, which was reclassified as a component of additional paid-in capital. | |||||||
The following table presents our activity for preferred stock warrants for the fiscal years ended January 31, 2014 and 2013 (in thousands): | |||||||
Warrant | |||||||
Liability | |||||||
Balance at February 1, 2012 | $ | 925 | |||||
Mark to estimated fair value through interest expense | 679 | ||||||
| | | | | |||
Balance at January 31, 2013 | 1,604 | ||||||
Mark to estimated fair value through interest expense | 462 | ||||||
Reclassification of preferred stock warrant liability into additional paid-in capital upon closing of IPO on April 17, 2013 | (2,066 | ) | |||||
| | | | | |||
Balance at January 31, 2014 | $ | — | |||||
| | | | | |||
| | | | | |||
Prior to the closing of our IPO, we also had two outstanding common stock warrants exercisable for 26,000 and 22,400 shares of common stock at $0.65 and $0.0025 per share, which were scheduled to expire in November 2016 and May 2021, respectively. The warrants automatically net exercised at the closing of our IPO on April 17, 2013 for 24,793 and 22,396 shares of common stock, respectively. | |||||||
During the fiscal year ended January 31, 2014, we issued 107,435 shares of our common stock upon the net exercise of common stock warrants to acquire 123,918 shares having a weighted-average exercise price of $3.13 per share. During the fiscal year ended January 31, 2015, we issued 387 shares of our common stock upon the net exercise of a common stock warrant to acquire 476 shares having a weighted average exercise price of $3.79 per share. We did not receive any cash proceeds in connection with these exercises. At January 31, 2015, warrants to purchase 13,252 shares of common stock were outstanding with a weighted-average exercise price of $3.79 per share. | |||||||
Redeemable_Convertible_Preferr
Redeemable Convertible Preferred Stock | 12 Months Ended | |||||||||||||||||||
Jan. 31, 2015 | ||||||||||||||||||||
Redeemable Convertible Preferred Stock. | ||||||||||||||||||||
Redeemable Convertible Preferred Stock | (11) Redeemable Convertible Preferred Stock | |||||||||||||||||||
On April 17, 2013, upon the closing of our IPO, all outstanding shares of redeemable convertible preferred stock were automatically converted to 14,335,869 shares of common stock. | ||||||||||||||||||||
The following tables present our activity for redeemable convertible preferred stock for the fiscal year ended January 31, 2014 (in thousands except shares): | ||||||||||||||||||||
Redeemable Convertible Preferred Stock | ||||||||||||||||||||
Series A-1 | Series B | Series C | ||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||
Balance, February 1, 2013 | 3,368,552 | $ | 8,395 | 2,836,586 | $ | 7,957 | 4,350,478 | $ | 16,373 | |||||||||||
Conversion of preferred stock into common stock | (3,368,552 | ) | (8,395 | ) | (2,836,586 | ) | (7,957 | ) | (4,350,478 | ) | (16,373 | ) | ||||||||
| | | | | | | | | | | | | | | | | | | | |
Balance, January 31, 2014 | — | $ | — | — | $ | — | — | $ | — | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Redeemable Convertible Preferred Stock | ||||||||||||||||||||
Series D | Series E | |||||||||||||||||||
Shares | Amount | Shares | Amount | Total | ||||||||||||||||
Balance, February 1, 2013 | 2,226,860 | $ | 15,803 | 1,553,393 | $ | 19,882 | $ | 68,410 | ||||||||||||
Conversion of preferred stock into common stock | (2,226,860 | ) | (15,803 | ) | (1,553,393 | ) | (19,882 | ) | (68,410 | ) | ||||||||||
| | | | | | | | | | | | | | | | | ||||
Balance, January 31, 2014 | — | $ | — | — | $ | — | $ | — | ||||||||||||
| | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | ||||
Stock_Awards
Stock Awards | 12 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Stock Awards | |||||||||||||||||
Stock Awards | (12) Stock Awards | ||||||||||||||||
In April 2002, we established our 2002 Stock Option Plan (the 2002 Plan). The 2002 Plan provides for the grant of incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards and RSU awards. Incentive stock options may only be granted to employees. All other awards may be granted to employees, directors and consultants. On February 4, 2013 and on March 1, 2013 our Board of Directors increased the shares authorized for grant pursuant to the 2002 Plan by 180,000 and 152,000, respectively. Our stockholders approved these increases on February 5, 2013 and March 1, 2013, respectively. As of January 31, 2015, we had 3,727,891 shares of common stock reserved for issuance under the 2002 Plan, of which 2,411,104 had been issued upon the exercise of options, the issuance of restricted stock awards or the vesting of RSUs, 960,574 were subject to outstanding options, 59,998 were subject to outstanding RSU awards and 296,215 were available for grant. Under the 2002 Plan, incentive stock options may be granted at an exercise price not less than 100% of the fair value of common stock on the date of grant, as determined by our Board of Directors. | |||||||||||||||||
On March 19, 2013, our Board of Directors approved our 2013 Equity Incentive Plan (the 2013 Plan) and the ESPP. On March 29, 2013, our stockholders also approved the 2013 Plan and the ESPP, each of which became effective on April 11, 2013. The 2013 Plan provides for the grant of incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards, RSU awards, performance-based stock awards and other forms of equity compensation. The 2013 Plan also provides for the grant of performance cash awards. Incentive stock options may only be granted to employees. All other awards may be granted to employees, directors and consultants. As of January 31, 2015, we had 3,586,015 shares of common stock reserved for issuance under the 2013 Plan, of which 82,509 had been issued upon the vesting of RSUs, 541,836 were subject to outstanding options, 871,229 were subject to outstanding RSU awards and 2,090,441 were available for grant. The number of shares of common stock reserved for issuance under the 2013 Plan will automatically increase on February 1 of each fiscal year, starting on February 1, 2014 and continuing through February 1, 2023, by the lesser of 5% of the total number shares of our common stock outstanding on the immediately preceding January 31, or a lesser amount of shares determined by our Board of Directors. Pursuant to the evergreen provision of the 2013 Plan, on February 1, 2015, common stock reserved for issuance under the 2013 Plan automatically increased by 1,270,830 shares. | |||||||||||||||||
The ESPP authorizes the issuance of shares of common stock pursuant to purchase rights granted to our employees. As of January 31, 2015, we had 965,067 shares of common stock reserved for issuance under the ESPP, of which 489,894 shares have been issued and 475,173 are available for purchase. The number of shares of common stock reserved for issuance will automatically increase on February 1 of each fiscal year, starting on February 1, 2014 and continuing through February 1, 2023, by the least of (i) 2% of the total number of shares of our common stock outstanding on the immediately preceding January 31; (ii) 1,408,017 shares of common stock; or (iii) a lesser amount of shares determined by our Board of Directors. Pursuant to the evergreen provision of the ESPP, on February 1, 2015, common stock reserved for issuance under the ESPP automatically increased by 508,332 shares. | |||||||||||||||||
Stock Options | |||||||||||||||||
Options granted to new employees generally vest over four years with 25% vesting on the first year anniversary and continuing monthly thereafter, and expire no more than 10 years from the date of grant. Options granted to current employees generally vest monthly over four years, and expire no more than 10 years from the date of grant. Options granted to new non-employee members of our Board of Directors vest annually over three years and options granted to existing non-employee members of our Board of Directors vest monthly over one year, and expire no more than 10 years from the date of grant. We recognize stock-based compensation cost on a straight-line basis over the requisite service period of the award. | |||||||||||||||||
During the fiscal years ended January 31, 2015, 2014 and 2013, we granted options to employees and directors to purchase 335,613, 497,163 and 185,400 shares of common stock at a weighted-average exercise price of $12.79, $19.95 and $9.23 per share, and a weighted-average fair value on the date of grant of $5.96, $10.34 and $4.98 per share, respectively. The intrinsic value of stock options exercised during the fiscal years ended January 31, 2015, 2014 and 2013 was $1.6 million, $7.1 million and $3.7 million, respectively. | |||||||||||||||||
The following table is a summary of stock option activity for the fiscal years ended January 31, 2015, 2014 and 2013: | |||||||||||||||||
Number of | Weighted- | ||||||||||||||||
Shares | Average | ||||||||||||||||
Exercise | |||||||||||||||||
Price | |||||||||||||||||
Outstanding at February 1, 2012 | 1,872,091 | $ | 3.05 | ||||||||||||||
Granted | 185,400 | 9.23 | |||||||||||||||
Exercised | (417,267 | ) | 1.33 | ||||||||||||||
Forfeited | (42,870 | ) | 4.05 | ||||||||||||||
| | | | | | | | ||||||||||
Outstanding at January 31, 2013 | 1,597,354 | 4.19 | |||||||||||||||
Granted | 497,163 | 19.95 | |||||||||||||||
Exercised | (459,137 | ) | 2.68 | ||||||||||||||
Forfeited | (117,437 | ) | 8.64 | ||||||||||||||
| | | | | | | | ||||||||||
Outstanding at January 31, 2014 | 1,517,943 | 9.46 | |||||||||||||||
Granted | 335,613 | 12.79 | |||||||||||||||
Exercised | (174,125 | ) | 3.52 | ||||||||||||||
Forfeited | (177,021 | ) | 17 | ||||||||||||||
| | | | | | | | ||||||||||
Outstanding at January 31, 2015 | 1,502,410 | 10.01 | |||||||||||||||
| | | | | | | | ||||||||||
| | | | | | | | ||||||||||
The following table summarizes information about stock options outstanding and exercisable as of January 31, 2015: | |||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||
Exercise Price | Number of | Weighted- | Weighted- | Number of | Weighted- | ||||||||||||
Shares | Average | Average | Shares | Average | |||||||||||||
Outstanding | Remaining | Exercise | Exercisable | Exercise | |||||||||||||
Contractual | Price | Price | |||||||||||||||
Life (Years) | |||||||||||||||||
$0.55 - 2.23 | 180,882 | 3.52 | $ | 1.07 | 180,813 | $ | 1.07 | ||||||||||
5.48 | 508,639 | 6.47 | 5.48 | 459,196 | 5.48 | ||||||||||||
5.93 - 10.78 | 318,334 | 7.26 | 9.14 | 182,943 | 8.49 | ||||||||||||
11.43 - 24.01 | 331,335 | 7.74 | 15.01 | 99,679 | 17.80 | ||||||||||||
24.60 - 29.96 | 163,220 | 8.05 | 25.54 | 70,222 | 25.41 | ||||||||||||
| | | | | | | | | | | | | | | | | |
1,502,410 | 992,853 | ||||||||||||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Options outstanding at January 31, 2015 have a weighted-average remaining contractual life of 6.7 years and a weighted-average exercise price of $10.01 per share and options exercisable have a weighted-average exercise price of $7.88 per share. As of January 31, 2015, 2014 and 2013, the aggregate intrinsic value of options outstanding was $6.0 million, $19.1 million and $10.5 million, respectively. As of January 31, 2015, 2014 and 2013, the aggregate intrinsic value of options exercisable was $5.5 million, $12.6 million and $7.0 million, respectively. | |||||||||||||||||
We have computed the fair value of all options granted during the fiscal years ended January 31, 2015, 2014 and 2013 using the Black-Scholes option pricing model. In order to calculate the fair value of the options, certain assumptions are made regarding components of the model, including risk-free interest rates, volatility, expected dividend yield, and expected option life. The use of different assumptions could cause significant fluctuations in fair value. We estimated a volatility factor based on the common stock of peer companies and commencing May 1, 2014 a weighted-average of peer companies and our own volatility, and have estimated forfeiture rates based on past historical experience. The expected life input is based on historical exercise patterns and the risk-free interest rate is based on the U.S. Treasury yield in effect at the time of the grant for treasury securities of similar maturity. Accordingly, we have computed the fair value of all options granted during the fiscal years ended January 31, 2015, 2014 and 2013 using the following assumptions: | |||||||||||||||||
Fiscal Year Ended January 31, | |||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||
Risk-free interest rate | 1.18% - 1.76% | 1.01% - 1.94% | 0.79% - 1.40% | ||||||||||||||
Expected life | 5.45 - 6.02 years | 5.27 - 6.08 years | 5.91 - 6.08 years | ||||||||||||||
Expected dividend yield | — | — | — | ||||||||||||||
Expected volatility | 46.7% - 52.2% | 48.3% - 56.8% | 57.9% - 59.9% | ||||||||||||||
No excess tax benefit has been recognized relating to exercised stock options as no tax deductions have been realized through a reduction of taxes payable. As of January 31, 2015, we had $3.2 million of unrecognized stock-based compensation costs related to unvested stock options granted pursuant to the 2002 Plan and the 2013 Plan and the cost was expected to be recognized over a weighted-average period of 2.42 years. | |||||||||||||||||
Restricted Stock Units | |||||||||||||||||
RSUs granted to new employees generally vest over four years with 25% vesting on the first year anniversary and continuing semiannually thereafter and RSUs granted to current employees generally vest semiannually over four years. RSUs granted to new non-employee members of our Board of Director vest annually over three years and RSUs granted to existing non-employee members of our Board of Directors vest at the end of one year. | |||||||||||||||||
The following table is a summary of RSU activity for the fiscal year ended January 31, 2015 and 2014: | |||||||||||||||||
Number of | Weighted- | ||||||||||||||||
Shares | Average | ||||||||||||||||
Grant Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Non-vested at February 1, 2013 | — | $ | — | ||||||||||||||
Granted | 464,942 | 20.93 | |||||||||||||||
Vested | — | — | |||||||||||||||
Forfeited | (5,960 | ) | 24.77 | ||||||||||||||
| | | | | | | | ||||||||||
Non-vested at January 31, 2014 | 458,982 | 20.88 | |||||||||||||||
Granted | 735,367 | 11.06 | |||||||||||||||
Vested | (142,509 | ) | 18.65 | ||||||||||||||
Forfeited | (120,613 | ) | 18.55 | ||||||||||||||
| | | | | | | | ||||||||||
Non-vested at January 31, 2015 | 931,227 | 13.76 | |||||||||||||||
| | | | | | | | ||||||||||
| | | | | | | | ||||||||||
On February 5, 2013, we granted 119,998 RSUs to certain employees under the 2002 Plan in connection with an acquisition. 60,000 of the RSUs vested in April 2014 and the remaining 59,998 RSUs vested in February 2015. | |||||||||||||||||
Minimum payroll tax withholdings paid to tax authorities on behalf of employees are classified as a financing activity in the statement of cash flows and reduces additional paid-in capital. | |||||||||||||||||
Unvested RSUs at January 31, 2015 have a weighted-average remaining contractual life of 1.72 years and a weighted-average grant date fair value of $13.76 per share, which is expected to be recognized over the applicable vesting period. As of January 31, 2015, we had $9.5 million of unrecognized stock-based compensation with respect to all RSUs and the cost was expected to be recognized over a weighted-average period of 3.17 years. | |||||||||||||||||
Restricted Stock | |||||||||||||||||
On July 31, 2012 and in connection with our acquisition of Agile Advantage, Inc., we issued 9,600 shares of restricted stock. All of such shares vested in full on July 19, 2013. The fair value of approximately $0.1 million was recorded as stock-based compensation expense over twelve months. The restricted stock was issued from the 2002 Plan and reduced the number of shares available for grant. | |||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||
The price at which common stock is purchased under the ESPP is equal to 85% of the fair market value of the common stock on the first day of an offering period or on a purchase date, whichever is lower. The initial offering commenced on April 11, 2013 and the initial purchase date was December 13, 2013. During the fiscal year ended January 31, 2015, 331,565 shares were issued under the ESPP for an aggregate purchase price of $2.7 million. The current twelve month offering commenced on December 16, 2014 and will allow eligible participants to purchase common stock at the lower of 85% of $9.59, or $8.15 per share, and 85% of the fair market value of the common stock on the purchase date. Accumulated employee withholdings of $0.4 million at January 31, 2015 associated with the next purchase date on June 15, 2015 are included in other current liabilities. | |||||||||||||||||
The following assumptions were used to calculate our stock-based compensation for each stock purchase right granted under the ESPP: | |||||||||||||||||
Fiscal Year Ended January 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Risk-free interest rate | 0.07% - 0.21% | 0.09% - 0.11% | |||||||||||||||
Expected life | 0.50 - 1.00 years | 0.67 - 1.17 years | |||||||||||||||
Expected dividend yield | — | — | |||||||||||||||
Expected volatility | 56.4% - 67.6% | 45.60% | |||||||||||||||
As of January 31, 2015, we had $0.9 million of unrecognized stock-based compensation costs related to the ESPP and the cost was expected to be recognized over a weighted-average period of 0.7 years. | |||||||||||||||||
Information_by_Geographic_Area
Information by Geographic Areas | 12 Months Ended | ||||||||||
Jan. 31, 2015 | |||||||||||
Information by Geographic Areas | |||||||||||
Information by Geographic Areas | (13) Information by Geographic Areas | ||||||||||
Revenue by geography is based on the ship-to address of the customer, which is intended to approximate where the customer's seats are provisioned. The ship-to country is generally the same as the billing country. The following table presents our revenue by geographic region for the fiscal years ended January 31, 2015, 2014 and 2013 (in thousands): | |||||||||||
Fiscal Year Ended January 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
United States | $ | 75,948 | $ | 63,575 | $ | 49,233 | |||||
International | 11,555 | 10,754 | 7,613 | ||||||||
| | | | | | | | | | | |
$ | 87,503 | $ | 74,329 | $ | 56,846 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Other than the United States, no other individual country exceeded 4% of total revenue during any of the periods presented. International revenue for the fiscal years ended January 31, 2015, 2014 and 2013 is primarily attributable to Australia, Canada, China, France, the Netherlands and the United Kingdom. Primarily all of our property and equipment is located in the United States. | |||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||
Jan. 31, 2015 | |||||||||||
Income Taxes | |||||||||||
Income Taxes | (14) Income Taxes | ||||||||||
The domestic and foreign components of net loss, and the provision for income taxes for the fiscal years ended January 31, 2015, 2014 and 2013 consists of the following (in thousands): | |||||||||||
Fiscal Year Ended January 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Net loss before income taxes: | |||||||||||
Domestic | $ | (34,044 | ) | $ | (22,249 | ) | $ | (11,059 | ) | ||
Foreign | 972 | 2,291 | 407 | ||||||||
| | | | | | | | | | | |
$ | (33,072 | ) | $ | (19,958 | ) | $ | (10,652 | ) | |||
| | | | | | | | | | | |
| | | | | | | | | | | |
Current provision: | |||||||||||
Federal | $ | — | $ | — | $ | — | |||||
State | — | — | — | ||||||||
Foreign | 692 | 173 | 128 | ||||||||
| | | | | | | | | | | |
692 | 173 | 128 | |||||||||
| | | | | | | | | | | |
Deferred provision: | |||||||||||
Federal | — | — | — | ||||||||
State | — | — | — | ||||||||
Foreign | — | — | — | ||||||||
| | | | | | | | | | | |
— | — | — | |||||||||
| | | | | | | | | | | |
Income tax provision (benefit) | $ | 692 | $ | 173 | $ | 128 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The difference in total provision for income taxes that would result from applying the 35% federal statutory rate to the net loss before provision for income taxes and the reported provision for income taxes are as follows: | |||||||||||
Fiscal Year Ended | |||||||||||
January 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Reconciliation of effective tax rate: | |||||||||||
Federal taxes at statutory rate | 35 | % | 35 | % | 35 | % | |||||
State taxes, net of federal benefit | 3.7 | 3.6 | 2.5 | ||||||||
Permanent items | (6.2 | ) | (9.2 | ) | (8.4 | ) | |||||
Valuation allowance | (37.1 | ) | (34.3 | ) | (40.6 | ) | |||||
Research and experimentation credits | 2.6 | — | 10.1 | ||||||||
Foreign rate differential | 0.2 | 1.2 | 0.3 | ||||||||
Other | (0.3 | ) | 2.8 | (0.1 | ) | ||||||
| | | | | | | | | | | |
Effective income tax rate | (2.1 | )% | (0.9 | )% | (1.2 | )% | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Components of the net deferred tax assets as of January 31, 2015 and 2014 are as follows (in thousands): | |||||||||||
January 31, | |||||||||||
2015 | 2014 | ||||||||||
Deferred tax assets: | |||||||||||
Research and experimentation carryforwards | $ | 5,902 | $ | 3,704 | |||||||
Net operating loss carryforwards | 38,817 | 28,390 | |||||||||
Deferred compensation | 691 | 587 | |||||||||
Deferred revenue | 968 | 2,052 | |||||||||
Intangible assets | 253 | 293 | |||||||||
Deferred rent | 578 | 618 | |||||||||
Stock-based compensation | 1,275 | 641 | |||||||||
Other | 168 | 194 | |||||||||
| | | | | | | | ||||
Gross deferred tax assets | 48,652 | 36,480 | |||||||||
| | | | | | | | ||||
Deferred tax liabilities: | |||||||||||
Fixed assets | 151 | 229 | |||||||||
Other | — | — | |||||||||
| | | | | | | | ||||
Gross deferred tax liabilities | 151 | 229 | |||||||||
| | | | | | | | ||||
Net deferred tax assets before valuation allowance | 48,501 | 36,251 | |||||||||
Valuation allowance | (48,501 | ) | (36,251 | ) | |||||||
| | | | | | | | ||||
Deferred tax assets (liabilities), net | $ | — | $ | — | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
In the fourth quarter of fiscal year ended January 31, 2014, we completed an intercompany sale of certain intangible assets between our Finland subsidiary and us. In connection with this sale, we incurred a $0.6 million current tax liability in Finland. A deferred charge of $0.3 million related to the sale is presented in other assets in accordance with the intercompany asset sale guidance required by GAAP. | |||||||||||
We have historically incurred operating losses in the United States and, given our cumulative losses and limited history of profits, we have recorded a full valuation allowance against our United States deferred tax assets for all periods to date. | |||||||||||
Our ability to use the operating loss carryforwards to offset future taxable income is subject to restrictions enacted in the U.S. Internal Revenue Code of 1986, as amended. These restrictions limit the future use of the operating loss carryforwards if certain ownership changes described in the Internal Revenue Code occur. | |||||||||||
During the fiscal years ended January 31, 2015 and 2014, the valuation allowance increased by $12.2 million and $6.9 million, respectively, due to the increase in deferred tax assets, primarily related to increases in our net operating loss and research and experimentation tax credit carryforwards. | |||||||||||
As of January 31, 2015, we had federal and state net operating loss carryforwards of approximately $101.9 million and $87.0 million, respectively. At January 31, 2015, we also had federal research and experimentation tax credit carryforwards of $5.9 million. The net operating loss carryforwards and tax credits expire at various dates through January 31, 2035. | |||||||||||
We believe that we have not taken an uncertain tax position on prior tax filings and therefore have not recorded a liability for unrecognized tax benefits. | |||||||||||
We file federal, state, and foreign income tax returns in jurisdictions with varying statutes of limitations. With few exceptions, tax years 2001 through 2014 remain subject to examination by federal and most state tax authorities due to our net operating loss carryforwards. In the foreign jurisdictions, tax years 2009 through 2014 remain subject to examination. | |||||||||||
Net_Loss_per_Share
Net Loss per Share | 12 Months Ended | ||||||||||
Jan. 31, 2015 | |||||||||||
Net Loss per Share | |||||||||||
Net Loss per Share | (15) Net Loss per Share | ||||||||||
We calculate basic and diluted net loss per share of common stock by dividing net loss attributed to common stockholders by the weighted-average number of shares of common stock outstanding during the period. We have excluded all potentially dilutive shares, which include outstanding common stock options, warrants for redeemable convertible preferred stock and common stock, outstanding restricted common stock and RSUs, redeemable convertible preferred stock and ESPP obligations, from the weighted-average number of shares of common stock outstanding as their inclusion in the computation for all periods would be antidilutive due to net losses. Our redeemable, convertible preferred stock were participating securities and were excluded from the earnings per share calculation as they did not have a right to share in an obligation to fund our net losses. | |||||||||||
The following common stock equivalents were excluded from consideration in diluted net loss per share because they had an antidilutive impact: | |||||||||||
Fiscal Year Ended January 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Options to purchase common stock | 1,502,410 | 1,517,943 | 1,597,354 | ||||||||
Warrants to purchase redeemable convertible preferred stock | — | — | 137,646 | ||||||||
Warrants to purchase common stock | 13,252 | 13,728 | 48,400 | ||||||||
Restricted common stock | — | — | 9,600 | ||||||||
Restricted stock units | 931,227 | 458,982 | — | ||||||||
Redeemable convertible preferred stock | — | — | 14,335,869 | ||||||||
ESPP obligations(1) | 160,437 | 146,530 | — | ||||||||
| | | | | | | | | | | |
2,607,326 | 2,137,183 | 16,128,869 | |||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
-1 | ESPP obligations for the fiscal year ending January 31, 2015 and 2014 represent an estimate of the number of the shares to be issued to employees when considering employee contributions withheld as of January 31, 2015 and 2014 and an estimate of contributions over the remaining current purchase period of the offering. | ||||||||||
Basic and diluted net loss per share is calculated as follows (in thousands, except per share data): | |||||||||||
Fiscal Year Ended January 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Numerator: | |||||||||||
Net loss | $ | (33,764 | ) | $ | (20,131 | ) | $ | (10,780 | ) | ||
| | | | | | | | | | | |
| | | | | | | | | | | |
Denominator: | |||||||||||
Weighted-average shares of common stock outstanding, basic and diluted | 25,093 | 19,841 | 2,101 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Net loss per share of common stock, basic and diluted | $ | (1.35 | ) | $ | (1.01 | ) | $ | (5.13 | ) | ||
| | | | | | | | | | | |
| | | | | | | | | | | |
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended |
Jan. 31, 2015 | |
Employee Benefit Plan | |
Employee Benefit Plan | (16) Employee Benefit Plan |
In 2004, we adopted the Rally Software Development Corp. 401(k) Plan (the 401(k) Plan). The 401(k) Plan is available to all full-time employees with eligibility commencing on the first day of employment following attainment of age 21. Employees may contribute up to 90% of their eligible compensation, not to exceed the amounts allowed by law. Currently, there is no employer contribution or matching provisions in the 401(k) Plan. | |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Jan. 31, 2015 | |||||
Commitments and Contingencies | |||||
Commitments and Contingencies | (17) Commitments and Contingencies | ||||
(a) Operating leases | |||||
We lease office space and certain equipment under operating leases having terms that expire at various dates through June 2025. On June 10, 2013, we entered into an amended and restated office lease, which superseded and replaced our lease for our corporate headquarters located in Boulder, Colorado. In addition to the office space we currently occupy, the amended and restated office lease provides for the lease by us of an additional 89,000 square feet of office space in a building to be constructed adjacent to our current office space. | |||||
The initial term of the amended and restated office lease is ten years and will commence upon the occupancy date of the new building, currently expected to be on or about June 15, 2015, and extend through June 30, 2025, in each case subject to change based on the construction schedule. The lease term for the current office space was extended to end contemporaneously with the end of the initial term for the amended and restated office lease. We have the option to extend the term of the lease for two periods of five years each. | |||||
In September 2013, and as required in the amended and restated office lease, we placed $4.2 million in a bank account that is pledged to the landlord as a security deposit. This restricted cash is reflected as long-term restricted cash in our consolidated balance sheet and replaced the former security deposit, which was a $2.5 million letter of credit that was cancelled. Provided that we have not been in default under the amended and restated office lease and have met certain financial covenants during the five-year period commencing upon our occupancy of the new building, we have the right to reduce the cash security deposit to $2.1 million. The amended and restated lease also provides us with a tenant finish allowance of approximately $4.6 million. | |||||
We are currently in the process of locating a sublessor for the 89,000 square foot addition of office space. To the extent we are successful, any sublease entered into requires the consent of our landlord and will reduce our future minimum lease payments on a net basis. | |||||
We occupy additional leased facilities of approximately 22,000 square feet of office space in Denver, Colorado and 10,000 square feet of office space in Raleigh, North Carolina and approximately 5,200 square feet of office space in the Seattle, Washington area. We are currently in the process of locating a sublessor for the Seattle, Washington office space. In May 2014, we executed an agreement to sublease approximately 5,000 square feet of our prior Denver, Colorado facility. The sublease rent commencement date was July 1, 2014 and will extend through October 15, 2015. We anticipate receiving $0.1 million in rent payments during the remaining term of the sublease, which will offset our rent expense for this facility. | |||||
We also occupy additional leased facilities of less than 6,000 square feet of office space in London, England; Melbourne, Australia; Sydney, Australia; Helsinki, Finland; Singapore; and Amsterdam, the Netherlands. | |||||
Total rent expense for the fiscal years ended January 31, 2015, 2014 and 2013 was $3.2 million, $2.3 million and $1.6 million, respectively. | |||||
As of January 31, 2015, future minimum lease payments under operating leases (assuming a June 15, 2015 commencement date for the amended and restated office lease) were as follows (in thousands): | |||||
Fiscal year ended January 31: | |||||
2016 | $ | 4,367 | |||
2017 | 4,674 | ||||
2018 | 4,538 | ||||
2019 | 4,421 | ||||
2020 | 4,509 | ||||
Thereafter | 26,278 | ||||
| | | | | |
Total future minimum lease payments | $ | 48,787 | |||
| | | | | |
| | | | | |
(b) Purchase Commitments | |||||
We have commitments for internet bandwidth usage, data centers and cloud-based computing services with various service providers. As of January 31, 2015, future minimum purchase commitments were as follows (in thousands): | |||||
Fiscal year ended January 31: | |||||
2016 | $ | 361 | |||
2017 | 92 | ||||
2018 | 23 | ||||
| | | | | |
Total future minimum purchase commitments | $ | 476 | |||
| | | | | |
| | | | | |
(c) Legal | |||||
In the normal course of business, we may, from time to time, be subject to pending and threatened legal actions and proceedings. While the results of any litigation or other legal proceedings are uncertain, management does not believe the ultimate resolution of any pending legal matters is likely to have a material adverse effective on our financial position, results of operations or cash flows. We accrue for loss contingencies when it is both probable that we will incur the loss and when the amount of the loss can be reasonably estimated. As of January 31, 2015, there were no material pending or threatened legal actions or proceedings against us. | |||||
(d) Product Indemnification | |||||
Our arrangements with customers generally include an indemnification provision that we will indemnify and defend a customer in actions brought against the customer that claim our solutions and services infringe upon a valid patent, copyright, or trademark. Historically, we have not incurred any material costs related to indemnification claims. | |||||
(e) Self-insurance reserves | |||||
Effective January 1, 2013, we use a combination of insurance and self-insurance plans to provide for the potential liabilities for employee medical health care benefits. Claims with dates of service prior to January 1, 2013 were covered and paid by our prior premium based medical insurance plan. Liabilities associated with the risks that are retained by us are estimated by considering historical claims experience and severity factors. We have individual employee stop-loss as well as overall stop-loss coverage to limit our total exposure. Our estimated self-insurance liability for claims incurred but not reported was approximately $0.2 million and $0.1 million at January 31, 2015 and 2014, respectively, which amount was included in accrued liabilities in the accompanying consolidated balance sheets. | |||||
(f) Severance | |||||
During the fiscal year ended January 31, 2015, we recorded in sales and marketing expense severance obligations of approximately $0.4 million. As of January 31, 2015, approximately $0.3 million was included in accrued liabilities in the accompanying consolidated balance sheet. The remaining balance will be paid in the first quarter of the fiscal year ended January 31, 2016. | |||||
During the fiscal year ended January 31, 2014, we recorded in sales and marketing expense severance obligations of approximately $1.1 million consisting of $1.0 million in cash and $0.1 million in stock based compensation. As of January 31, 2014, approximately $0.2 million was included in accrued liabilities in the accompanying consolidated balance sheet. The remaining balance was paid in the first quarter of the fiscal year ended January 31, 2015. | |||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Jan. 31, 2015 | |
Subsequent Events | |
Subsequent Events | (18) Subsequent Events |
We have evaluated subsequent events that occurred after January 31, 2015 through April 7, 2015, the date at which the consolidated financial statements were issued. No material events were identified. | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||
Jan. 31, 2015 | |||||||||||
Summary of Significant Accounting Policies | |||||||||||
Basis of Presentation and Consolidation | (a) Basis of Presentation and Consolidation | ||||||||||
The accompanying consolidated financial statements included the accounts of us and our wholly-owned subsidiaries. All significant intercompany balances have been eliminated in consolidation. | |||||||||||
Initial Public Offering and Follow-On Public Offering | (b) Initial Public Offering and Follow-On Public Offering | ||||||||||
On April 17, 2013, we closed our IPO of 6,900,000 shares of common stock, including 900,000 shares sold pursuant to the underwriters' option to purchase additional shares. The public offering price of the shares sold in our IPO was $14.00 per share. All outstanding shares of our redeemable convertible preferred stock converted to 14,335,869 shares of common stock and all outstanding preferred stock warrants converted into warrants to purchase common stock at the closing of our IPO. Our shares of common stock are traded on the New York Stock Exchange under the symbol "RALY". We received proceeds from our IPO of $89.8 million, net of underwriting discounts and commissions, but before offering expenses of $2.9 million. | |||||||||||
On July 30, 2013, we closed our follow-on public offering in which we and certain of our stockholders sold an aggregate of 5,589,455 shares of common stock, including 729,058 shares sold pursuant to the underwriters' option to purchase additional shares. The public offering price of the shares sold in the offering was $24.75 per share. Of the 5,589,455 shares of common stock sold in the offering, 250,000 shares were sold by us and 5,339,455 shares were sold by selling stockholders. We received proceeds from the offering of $5.9 million, net of underwriting discounts and commissions, but before offering expenses of $0.6 million. | |||||||||||
Use of Estimates | (c) Use of Estimates | ||||||||||
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. The more critical estimates and related assumptions that affect our consolidated financial condition and results of operations are in the areas of revenue recognition; measurement of the fair value of equity instruments, including stock-based compensation; impairment assessment of goodwill, intangible assets and other long-lived assets; and income taxes. Such estimates often require the selection of appropriate valuation methodologies and models, and significant judgment in evaluating ranges of assumptions and financial inputs. Actual results may differ from those estimates. | |||||||||||
Segments | (d) Segments | ||||||||||
Operating segments are defined as components of an enterprise about which discrete financial information is available that is evaluated on a regular basis by the chief operating decision maker, or decision making group, in deciding how to allocate resources and assess performance. Our chief operating decision makers are the Chief Executive Officer and Chief Financial Officer. Our Chief Executive and Chief Financial Officer review consolidated operating results to make decisions about allocating resources and assessing performance for the entire company. We view our operations and manage our business as one operating segment. | |||||||||||
Cash and Cash Equivalents | (e) Cash and Cash Equivalents | ||||||||||
We consider all highly liquid investments purchased with an original maturity of 90 days or less to be cash equivalents. Cash equivalents consist primarily of investments in a money market mutual fund, a bank money market account and certificates of deposit. We record money market funds at the net asset value reported by the investment manager as there are no restrictions on our ability, contractual or otherwise, to redeem our investments at the stated net asset value reported by the investment manager. | |||||||||||
Investment Securities | (f) Investment Securities | ||||||||||
Investment securities at January 31, 2015 consist of certificates of deposit and commercial paper. We classify our debt securities as held-to-maturity. Held-to-maturity debt securities are those debt securities in which we have the ability and intent to hold the security until maturity. Held-to-maturity debt securities are recorded at amortized cost, adjusted for the amortization or accretion of premiums or discounts. Premiums and discounts on debt securities are amortized or accreted over the life of the related held-to-maturity security as an adjustment to yield using the effective-interest method. Such amortization and accretion is included in the "Interest and other income" line item in our consolidated statements of operations. Dividend and interest income is recognized when earned. Our consolidated statements of operations do not reflect any impairment (that is, the difference between the security's amortized cost basis and fair value) on held-to-maturity debt securities due to the fact that management has no intent to sell and believes that it is more likely than not that we will not be required to sell a security prior to any recovery. | |||||||||||
Accounts Receivable and Allowance for Doubtful Accounts | (g) Accounts Receivable and Allowance for Doubtful Accounts | ||||||||||
Trade accounts receivable represent trade receivables from customers when we have invoiced for subscriptions, support, perpetual software licenses or professional services and have not received payment. Receivables are recorded at the invoiced amount and do not bear interest. We maintain an allowance for doubtful accounts for estimated losses inherent in our accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and our customers' financial condition, the amount of receivables in dispute, and the current receivables' aging and current payment patterns. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. | |||||||||||
Allowance for doubtful accounts activity and balances are presented below (in thousands): | |||||||||||
Fiscal Year Ended | |||||||||||
January 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Balance at beginning of year | $ | 67 | $ | 48 | $ | 42 | |||||
Charges for bad debts | 70 | 29 | 83 | ||||||||
Write-offs and adjustments | (13 | ) | (10 | ) | (77 | ) | |||||
| | | | | | | | | | | |
Balance at end of year | $ | 124 | $ | 67 | $ | 48 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Property and Equipment and Acquired Intangible Assets | (h) Property and Equipment and Acquired Intangible Assets | ||||||||||
Property and equipment are recorded at cost. Property and equipment are depreciated using the straight-line method over the following estimated useful lives: | |||||||||||
Asset class | Useful life | ||||||||||
Computer equipment | 3 years | ||||||||||
Office equipment | 5 years | ||||||||||
Office furniture | 5 years | ||||||||||
Computer software | 3 years | ||||||||||
Leasehold improvements | The shorter of the estimated useful life or the term of the lease | ||||||||||
Upon retirement or sale, the costs of assets disposed of and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in other gain (loss) in the consolidated statements of operations. Maintenance and repairs that do not improve or extend the lives of the respective assets are expensed in the period incurred. | |||||||||||
Our acquired intangible assets consist of developed software technology and trademark and domain names. The values assigned to our intangible assets are based on estimates and judgments. Intangible assets are amortized on a straight-line basis over the following estimated useful lives: | |||||||||||
Asset class | Useful life | ||||||||||
Developed software technology | 3 - 5 years | ||||||||||
Trademark and domain names | 15 years | ||||||||||
We evaluate long-lived assets, such as property and equipment and definite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset group may not be recoverable. For the purposes of impairment testing, we have determined that we have one group of assets. If this evaluation indicates the carrying value will not be recoverable, based on the undiscounted expected future cash flows estimated to be generated by these assets, we reduce the carrying amount to the estimated fair value. Fair value is determined through various valuation techniques including discounted cash flow modeling. To date, no such impairment has occurred. | |||||||||||
Goodwill and Intangible Assets | (i) Goodwill and Intangible Assets | ||||||||||
Goodwill represents the excess of the purchase price of the acquired enterprise over the fair value of identifiable assets acquired and liabilities assumed. We apply ASC 350, "Intangibles—Goodwill and Other," and will perform an annual goodwill impairment test during the fourth quarter of our fiscal year and more frequently if an event or circumstance indicates that an impairment may have occurred. For the purposes of impairment testing, we have determined that we have one reporting unit and we make a qualitative assessment to determine if goodwill may be impaired. If it is more likely than not that a reporting unit's fair value is less than its carrying value, we then compare the fair value of the reporting unit to its respective carrying amount. If the carrying value of a reporting unit were to exceed its fair value, we would then compare the implied fair value of the reporting unit's goodwill to its carrying amount, and any excess of the carrying amount over the fair value would be charged to operations as an impairment loss. Any excess of the carrying value over the fair value of indefinite-lived intangible assets is also charged to operations as an impairment loss. To date, no such impairment has occurred. | |||||||||||
Income Taxes | (j) Income Taxes | ||||||||||
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. A valuation allowance is recorded to the extent it is more likely than not that a deferred tax asset will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in our statement of operations in the period that includes the enactment date. Our U.S. net deferred tax asset has been completely reduced by a valuation allowance as management cannot conclude that realization of the deferred tax asset is assured, on a more likely than not basis, at each balance sheet date, due primarily to our history of operating losses. | |||||||||||
We recognize the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurred. All current tax positions are considered more likely than not of being sustained with no measurement for possible settlements. | |||||||||||
Deferred Revenue | (k) Deferred Revenue | ||||||||||
Deferred revenue comprises unrecognized subscription and support, which includes hosting and maintenance, perpetual licenses, tool training, enhanced support and prepaid professional services revenue. With the exception of perpetual licenses, these arrangements are initially recorded as deferred revenue upon the commencement of the subscription, hosting or maintenance period, and revenue is recognized in the consolidated statements of operations ratably over the term of the arrangement. Perpetual licenses are generally recognized upon delivery of the software product to the customer. Prepaid professional services arrangements are recorded initially as deferred revenue and are recognized as the services are performed. | |||||||||||
Revenue Recognition | (l) Revenue Recognition | ||||||||||
We generate revenue primarily from three sources: (1) subscriptions and support; (2) perpetual licenses; and (3) professional services. Subscription and support revenue is primarily comprised of fees that give customers access to our suite of cloud-based solutions, as well as optional hosting and maintenance related to perpetual licenses. Professional services revenue largely encompasses fees related to the instruction of Agile software development methodologies, which includes reimbursed expenses and training related directly to the product. | |||||||||||
Revenue is recognized when all of the following conditions have been met: | |||||||||||
• | there is persuasive evidence of an arrangement; | ||||||||||
• | the service has been provided or the product has been delivered; | ||||||||||
• | the price is fixed or determinable; and | ||||||||||
• | collection of the fees is sufficiently assured. | ||||||||||
Signed agreements, which may include purchase orders, are used as evidence of an arrangement. In cases where both a signed contract and a purchase order exist, we consider the signed contract to be persuasive evidence of the arrangement. Product delivery occurs when we provide the customer with access to the software via an electronic notification or license key. We assess whether a fee is fixed or determinable at the outset of the arrangement, primarily based on the payment terms associated with the transaction. We assess collectability of the fee based on a number of factors, such as the collection history and creditworthiness of the customer. If we determine that collectability is not sufficiently assured, revenue is deferred until collectability becomes sufficiently assured, generally upon receipt of cash. | |||||||||||
Subscription and support revenue is recognized ratably over the contract term beginning on the commencement date of each contract. | |||||||||||
When multiple deliverables included in an arrangement are separable into different units of accounting, the arrangement consideration is allocated to the identified separate units of accounting based on their relative selling prices. Multiple deliverable arrangement accounting guidance provides a hierarchy to use when determining the relative selling price for each unit of accounting. This guidance provides that vendor-specific objective evidence (VSOE) of selling price, based on the price at which the item is regularly sold by the vendor on a stand-alone basis, should be used if it exists. We use VSOE to determine the stand-alone selling prices of subscription, hosting, maintenance, and professional services because substantially all separate sales of these deliverables fall within a reasonable range of prices. All unique product offerings are grouped based upon size of customer as a result of our tiered volume pricing. VSOE for professional services is determined regardless of customer size as customer size does not significantly impact the prices charged. We have concluded that all products and services for each single unit of accounting have VSOE, other than perpetual licenses discussed below. | |||||||||||
We monitor compliance with VSOE by using a bell curve approach. Sales of subscription, hosting, maintenance and professional services are analyzed to determine whether 80% of the transactions are within a range of 15% of the median of the transactions for an appropriate group of customers. | |||||||||||
When VSOE exists for all undelivered elements of the contract, perpetual license fee revenue is generally recognized upon delivery of the software product to the customer, provided the other revenue recognition conditions are met. We have established VSOE for all undelivered elements of our perpetual license arrangements. Maintenance revenue consists of fees for providing unspecified software updates on a when and if available basis and technical support for software products. Hosting revenue relates to fees for hosting perpetual license software that the customer has purchased at our third-party data centers. Our perpetual license customers who purchase hosting have the right to take possession of the software at any time. Hosting and maintenance revenue as well as enhanced support is recognized ratably over the term of the agreement. | |||||||||||
Professional services revenue is accounted for separately from subscription and perpetual license revenue when VSOE exists and, for subscriptions, has stand-alone value to the customer. Professional services are generally provided on a time-and-materials basis. The services that are provided on a time-and-materials basis are recognized as services are provided. However, professional services that do not have stand-alone value to the customer are recognized ratably over the remaining subscription period. We present reimbursements received for out of pocket expenses within professional services revenue. Reimbursement revenue was approximately $1.2 million, $1.2 million and $0.7 million for the fiscal years ended January 31, 2015, 2014 and 2013, respectively. | |||||||||||
Research and Development | (m) Research and Development | ||||||||||
Research and development expenses consist primarily of personnel and related expenses for our research and development staff, including salaries, benefits, bonuses and stock-based compensation, certain software licenses and allocated overhead, including depreciation. Research and development costs are expensed as incurred. We develop software, which is sold as a subscription or licensed for a stated term or in perpetuity. Qualifying software development costs are required to be capitalized once technological feasibility of the software has been established. Costs incurred prior to establishing technological feasibility are expensed as incurred. Technological feasibility is established when we have completed all planning, designing, coding, and testing activities that are necessary to determine that a product can be produced to meet its design specifications, including functions, features, and technical performance requirements. Capitalization of costs ceases when the product is available for general use. | |||||||||||
To date, the period between achieving technological feasibility and the general availability of such software has been short. Consequently, software development costs qualifying for capitalization have been insignificant, and therefore, we have not capitalized any software development costs to date. | |||||||||||
Leases | (n) Leases | ||||||||||
We lease our facilities under operating leases. For leases that contain rent escalation or rent concession provisions, we record the total rent expense during the lease term on a straight-line basis over the term of the lease. We record the difference between the rent paid and the straight-line rent expense as a current liability in other current liabilities and the noncurrent portion in other long-term liabilities in the accompanying consolidated balance sheets. Rent expense was $3.2 million, $2.3 million and $1.6 million for the fiscal years ended January 31, 2015, 2014 and 2013, respectively. | |||||||||||
Advertising | (o) Advertising | ||||||||||
Advertising costs are expensed as incurred and include search engine fees, banner ads, digital marketing and events. Advertising expense was $3.3 million, $2.8 million and $1.7 million for the fiscal years ended January 31, 2015, 2014 and 2013, respectively. Advertising costs are recorded in sales and marketing expense within the accompanying consolidated statements of operations. | |||||||||||
Commissions | (p) Commissions | ||||||||||
Commissions are recorded as a component of sales and marketing expense and consist of the variable compensation paid to our sales force. Sales commissions are earned by employees and recorded at the time that a customer has entered into a binding purchase agreement. Commissions paid to sales personnel are recoverable only in cases where we cannot collect the invoiced amounts associated with a sales order. Commission expense was $9.5 million, $8.5 million and $7.9 million for the fiscal years ended January 31, 2015, 2014 and 2013, respectively. | |||||||||||
Stock-Based Compensation | (q) Stock-Based Compensation | ||||||||||
Stock-based compensation to employees and members of our Board of Directors is measured at the grant date fair values of the respective options to purchase our common stock, and expensed on a straight-line basis over the period in which the holder is required to provide services, which is usually the vesting period. We determine the grant date fair value of all stock options using the Black-Scholes option pricing model. An estimate of forfeitures is applied when calculating compensation expense. Restricted stock and RSUs are measured at fair value based on our share price at the date of grant and expensed on a straight-line basis over the period in which the holder is required to provide services, which is generally the vesting period. We recognize compensation expense related to shares issued pursuant to the ESPP, on a straight-line basis over the offering period, which is generally one year with the exception of the initial purchase period within an offering period, which is generally six months. | |||||||||||
Preferred Stock Warrant Liability | (r) Preferred Stock Warrant Liability | ||||||||||
We accounted for warrants to purchase redeemable convertible preferred stock as a liability. The warrants were recorded at fair value, estimated using the Black-Scholes option pricing model and revalued at each balance sheet date. The change in the fair value of the warrants was recorded as a component of interest expense. The preferred stock warrant liability was reclassified to additional paid-in capital upon the closing of our IPO in April 2013. | |||||||||||
Foreign Currency Translation | (s) Foreign Currency Translation | ||||||||||
The functional currency of our foreign subsidiaries is the local currency. We conduct business in the United Kingdom through a branch of RSDI and in Australia, Canada, Finland, the Netherlands and Singapore through subsidiaries of RSDI. The functional currency of the branch and subsidiaries are the British pound, the Australian dollar, the Canadian dollar, the Euro and the Singaporean dollar. All assets and liabilities for the branch and subsidiaries denominated in a foreign currency are translated into U.S. dollars based on the exchange rate on the balance sheet date, and revenue and expenses are translated at the average exchange rates during the period. The effects of foreign exchange gains and losses arising from the translation of assets and liabilities of foreign subsidiaries are included as a component of other comprehensive income (loss). | |||||||||||
We maintain short-term intercompany payables denominated in each subsidiary's functional currency. Gains and losses associated with remeasurement of these payables into U.S. dollars are presented within loss on foreign currency transactions included in the consolidated statements of operations as we intend to settle these payables in cash. | |||||||||||
Concentration of Credit Risk and Significant Customers | (t) Concentration of Credit Risk and Significant Customers | ||||||||||
Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash, cash equivalents, short-term investments and accounts receivable. At January 31, 2015 and 2014, we had $38.2 million and $60.0 million, respectively, in certificates of deposits at various financial institutions, of which $28.4 million and $50.3 million, respectively, are fully insured by the Federal Deposit Insurance Corporation. Of the certificates of deposits held at January 31, 2015, $1.8 million were classified as cash equivalents and $36.4 million were classified as short-term investments. All certificates of deposits held at January 31, 2014 were classified as cash equivalents. Primarily all of the remaining amount of cash, cash equivalents and short-term investments were held at financial institutions that we believe to be creditworthy and represent minimal risk of loss of principle. We invest in commercial paper with a minimum rating of A-1, P-1, F-1 or better by two of the three Nationally Recognized Statistical Rating Organizations, which includes Moody's investor service, Standard & Poor's and Fitch Ratings. Large bank certificates of deposit must have a minimum rating of A or better. | |||||||||||
We perform ongoing evaluations of our customers' financial condition and do not require any collateral to support receivables. As of January 31, 2015 and 2014, no customer accounted for more than 10% of accounts receivable. During the fiscal years ended January 31, 2015, 2014 and 2013, no customer represented more than 10% of revenue. | |||||||||||
Recent Accounting Pronouncements | (u) Recent Accounting Pronouncements | ||||||||||
Under the Jumpstart Our Business Startups Act (JOBS Act), we meet the definition of an emerging growth company. We have irrevocably elected to opt out of the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act. | |||||||||||
On May 28, 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, "Revenue from Contracts with Customers." This ASU is the result of a convergence project between the FASB and the International Accounting Standards Board. The core principle behind ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for delivering those goods and services. This model involves a five-step process that includes identifying the contract with the customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations in the contract and recognizing revenue when (or as) the entity satisfies the performance obligations. The guidance in the ASU supersedes existing revenue recognition guidance and is effective for annual reporting periods beginning after December 15, 2016 with early application not permitted. We are evaluating the impact of the new standard on our consolidated financial position, results of operations and cash flows. | |||||||||||
On August 27, 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern." The new standard provides guidance around management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, with early adoption permitted. The adoption of this standard is not expected to have a material impact on our financial statements at this point in time. As of January 31, 2015, we have not adopted this standard. | |||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||
Jan. 31, 2015 | |||||||||||
Summary of Significant Accounting Policies | |||||||||||
Schedule of allowance for doubtful accounts activity and balances | |||||||||||
Allowance for doubtful accounts activity and balances are presented below (in thousands): | |||||||||||
Fiscal Year Ended | |||||||||||
January 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Balance at beginning of year | $ | 67 | $ | 48 | $ | 42 | |||||
Charges for bad debts | 70 | 29 | 83 | ||||||||
Write-offs and adjustments | (13 | ) | (10 | ) | (77 | ) | |||||
| | | | | | | | | | | |
Balance at end of year | $ | 124 | $ | 67 | $ | 48 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of estimated useful lives of property and equipment | |||||||||||
Asset class | Useful life | ||||||||||
Computer equipment | 3 years | ||||||||||
Office equipment | 5 years | ||||||||||
Office furniture | 5 years | ||||||||||
Computer software | 3 years | ||||||||||
Leasehold improvements | The shorter of the estimated useful life or the term of the lease | ||||||||||
Schedule of estimated useful lives of finite lived intangible assets | |||||||||||
Asset class | Useful life | ||||||||||
Developed software technology | 3 - 5 years | ||||||||||
Trademark and domain names | 15 years | ||||||||||
Goodwill_and_Acquired_Intangib1
Goodwill and Acquired Intangible Assets (Tables) | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Goodwill and Acquired Intangible Assets | ||||||||
Schedule of intangible assets excluding goodwill | As of January 31, 2015 and 2014, intangible assets, excluding goodwill, consist of the following (in thousands): | |||||||
January 31, | January 31, | |||||||
2015 | 2014 | |||||||
Developed software technology | $ | 2,578 | $ | 2,578 | ||||
Trademark and domain names | 226 | 226 | ||||||
| | | | | | | | |
2,804 | 2,804 | |||||||
Less accumulated amortization | (1,422 | ) | (895 | ) | ||||
| | | | | | | | |
$ | 1,382 | $ | 1,909 | |||||
| | | | | | | | |
| | | | | | | | |
Schedule of future estimated amortization expenses related to acquired intangible | As of January 31, 2015, future estimated amortization expenses related to acquired intangible assets were as follows (in thousands): | |||||||
Fiscal year ended January 31: | ||||||||
2016 | $ | 457 | ||||||
2017 | 387 | |||||||
2018 | 387 | |||||||
2019 | 15 | |||||||
2020 | 15 | |||||||
Thereafter | 121 | |||||||
| | | | | ||||
Total future estimated amortization expense | $ | 1,382 | ||||||
| | | | | ||||
| | | | | ||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Property and Equipment | ||||||||
Schedule of property and equipment | As of January 31, 2015 and 2014, property and equipment consisted of the following (in thousands): | |||||||
January 31, | January 31, | |||||||
2015 | 2014 | |||||||
Computers, peripherals and software | $ | 10,677 | $ | 8,935 | ||||
Office furniture and equipment | 1,897 | 1,523 | ||||||
Leasehold improvements | 1,535 | 1,453 | ||||||
| | | | | | | | |
14,109 | 11,911 | |||||||
Less accumulated depreciation and amortization | (8,690 | ) | (6,342 | ) | ||||
| | | | | | | | |
$ | 5,419 | $ | 5,569 | |||||
| | | | | | | | |
| | | | | | | | |
Short_Term_Investment_Tables
Short Term Investment (Tables) | 12 Months Ended | |||||||||||||
Jan. 31, 2015 | ||||||||||||||
Short-Term Investments | ||||||||||||||
Schedule of short-term investments | As of January 31, 2015, our short-term investments, all of which are classified as held-to-maturity, consisted of the following (in thousands): | |||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||
Cost | Gains | Losses | Value | |||||||||||
Certificates of deposit | $ | 36,417 | $ | — | $ | (46 | ) | $ | 36,371 | |||||
Commercial paper | 14,993 | — | — | 14,993 | ||||||||||
| | | | | | | | | | | | | | |
Total short-term investments | $ | 51,410 | $ | — | $ | (46 | ) | $ | 51,364 | |||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Fair_Value_Measurement_Tables
Fair Value Measurement (Tables) | 12 Months Ended | ||||||||||
Jan. 31, 2015 | |||||||||||
Fair Value Measurement | |||||||||||
Schedule of respective fair value and classification by level of input within the fair value hierarchy | The following table summarizes, for each category of assets, the respective fair value and the classification by level of input within the fair value hierarchy as of January 31, 2015 (in thousands): | ||||||||||
Fair Value | |||||||||||
Measurements | |||||||||||
Fair Value as of | Using | ||||||||||
January 31, 2015 | Level 1 | Level 2 | |||||||||
Cash and cash equivalents: | |||||||||||
Money market funds | $ | 4,396 | $ | 4,396 | $ | — | |||||
Certificates of deposit | 1,743 | — | 1,743 | ||||||||
Short-term investments: | |||||||||||
Certificates of deposit | $ | 36,371 | $ | — | $ | 36,371 | |||||
Commercial paper | 14,993 | — | 14,993 | ||||||||
The following table summarizes, for each category of assets, the respective fair value and the classification by level of input within the fair value hierarchy as of January 31, 2014 (in thousands): | |||||||||||
Fair Value | |||||||||||
Measurements | |||||||||||
Fair Value as of | Using | ||||||||||
January 31, 2014 | Level 1 | Level 2 | |||||||||
Cash and cash equivalents: | |||||||||||
Money market funds | $ | 26,284 | $ | 26,284 | $ | — | |||||
Certificates of deposit | 60,016 | 60,016 | — | ||||||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Accrued Liabilities | ||||||||
Schedule of accrued liabilities | Accrued liabilities as of January 31, 2015 and 2014 consisted of the following (in thousands): | |||||||
January 31, | January 31, | |||||||
2015 | 2014 | |||||||
Accrued vacation and employee benefits | $ | 2,024 | $ | 1,731 | ||||
Accrued bonuses | 1,576 | 733 | ||||||
Accrued commissions and salary | 1,911 | 2,348 | ||||||
| | | | | | | | |
$ | 5,511 | $ | 4,812 | |||||
| | | | | | | | |
| | | | | | | | |
Warrants_Tables
Warrants (Tables) | 12 Months Ended | ||||||
Jan. 31, 2015 | |||||||
Warrants | |||||||
Summary of information about preferred stock warrants outstanding | The following table summarizes information about preferred stock warrants outstanding at April 17, 2013 (close of IPO): | ||||||
Preferred Stock Warrants | |||||||
A-1 | B | C | |||||
Number of warrants outstanding | 32,750 | 40,141 | 64,755 | ||||
Exercise price | $2.50 | $2.82 | $3.78 | ||||
Expiration | Jul-15 | May 2014 - June 2018 | October 2015 - June 2018 | ||||
Preferred stock | Warrants to purchase | |||||||
Warrants | |||||||
Schedule of assumptions used to calculate fair value of the warrant liability | At April 17, 2013, the fair value of the warrant liability was calculated using the following underlying assumptions: | ||||||
April 17, 2013 (Close of IPO) | |||||||
Risk-free interest rate | 0.71% | ||||||
Expected term | Remaining contractual term | ||||||
Expected dividend yield | — | ||||||
Expected volatility | 49.00% | ||||||
Schedule of activity for preferred stock warrants | The following table presents our activity for preferred stock warrants for the fiscal years ended January 31, 2014 and 2013 (in thousands): | ||||||
Warrant | |||||||
Liability | |||||||
Balance at February 1, 2012 | $ | 925 | |||||
Mark to estimated fair value through interest expense | 679 | ||||||
| | | | | |||
Balance at January 31, 2013 | 1,604 | ||||||
Mark to estimated fair value through interest expense | 462 | ||||||
Reclassification of preferred stock warrant liability into additional paid-in capital upon closing of IPO on April 17, 2013 | (2,066 | ) | |||||
| | | | | |||
Balance at January 31, 2014 | $ | — | |||||
| | | | | |||
| | | | | |||
Redeemable_Convertible_Preferr1
Redeemable Convertible Preferred Stock (Tables) | 12 Months Ended | |||||||||||||||||||
Jan. 31, 2015 | ||||||||||||||||||||
Redeemable Convertible Preferred Stock. | ||||||||||||||||||||
Schedule of activity for redeemable convertible preferred stock | The following tables present our activity for redeemable convertible preferred stock for the fiscal year ended January 31, 2014 (in thousands except shares): | |||||||||||||||||||
Redeemable Convertible Preferred Stock | ||||||||||||||||||||
Series A-1 | Series B | Series C | ||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||
Balance, February 1, 2013 | 3,368,552 | $ | 8,395 | 2,836,586 | $ | 7,957 | 4,350,478 | $ | 16,373 | |||||||||||
Conversion of preferred stock into common stock | (3,368,552 | ) | (8,395 | ) | (2,836,586 | ) | (7,957 | ) | (4,350,478 | ) | (16,373 | ) | ||||||||
| | | | | | | | | | | | | | | | | | | | |
Balance, January 31, 2014 | — | $ | — | — | $ | — | — | $ | — | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Redeemable Convertible Preferred Stock | ||||||||||||||||||||
Series D | Series E | |||||||||||||||||||
Shares | Amount | Shares | Amount | Total | ||||||||||||||||
Balance, February 1, 2013 | 2,226,860 | $ | 15,803 | 1,553,393 | $ | 19,882 | $ | 68,410 | ||||||||||||
Conversion of preferred stock into common stock | (2,226,860 | ) | (15,803 | ) | (1,553,393 | ) | (19,882 | ) | (68,410 | ) | ||||||||||
| | | | | | | | | | | | | | | | | ||||
Balance, January 31, 2014 | — | $ | — | — | $ | — | $ | — | ||||||||||||
| | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | ||||
Stock_Awards_Tables
Stock Awards (Tables) | 12 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Stock Awards | |||||||||||||||||
Summary of stock option activity | |||||||||||||||||
Number of | Weighted- | ||||||||||||||||
Shares | Average | ||||||||||||||||
Exercise | |||||||||||||||||
Price | |||||||||||||||||
Outstanding at February 1, 2012 | 1,872,091 | $ | 3.05 | ||||||||||||||
Granted | 185,400 | 9.23 | |||||||||||||||
Exercised | (417,267 | ) | 1.33 | ||||||||||||||
Forfeited | (42,870 | ) | 4.05 | ||||||||||||||
| | | | | | | | ||||||||||
Outstanding at January 31, 2013 | 1,597,354 | 4.19 | |||||||||||||||
Granted | 497,163 | 19.95 | |||||||||||||||
Exercised | (459,137 | ) | 2.68 | ||||||||||||||
Forfeited | (117,437 | ) | 8.64 | ||||||||||||||
| | | | | | | | ||||||||||
Outstanding at January 31, 2014 | 1,517,943 | 9.46 | |||||||||||||||
Granted | 335,613 | 12.79 | |||||||||||||||
Exercised | (174,125 | ) | 3.52 | ||||||||||||||
Forfeited | (177,021 | ) | 17 | ||||||||||||||
| | | | | | | | ||||||||||
Outstanding at January 31, 2015 | 1,502,410 | 10.01 | |||||||||||||||
| | | | | | | | ||||||||||
| | | | | | | | ||||||||||
Summary of information about stock options outstanding and exercisable | The following table summarizes information about stock options outstanding and exercisable as of January 31, 2015: | ||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||
Exercise Price | Number of | Weighted- | Weighted- | Number of | Weighted- | ||||||||||||
Shares | Average | Average | Shares | Average | |||||||||||||
Outstanding | Remaining | Exercise | Exercisable | Exercise | |||||||||||||
Contractual | Price | Price | |||||||||||||||
Life (Years) | |||||||||||||||||
$0.55 - 2.23 | 180,882 | 3.52 | $ | 1.07 | 180,813 | $ | 1.07 | ||||||||||
5.48 | 508,639 | 6.47 | 5.48 | 459,196 | 5.48 | ||||||||||||
5.93 - 10.78 | 318,334 | 7.26 | 9.14 | 182,943 | 8.49 | ||||||||||||
11.43 - 24.01 | 331,335 | 7.74 | 15.01 | 99,679 | 17.80 | ||||||||||||
24.60 - 29.96 | 163,220 | 8.05 | 25.54 | 70,222 | 25.41 | ||||||||||||
| | | | | | | | | | | | | | | | | |
1,502,410 | 992,853 | ||||||||||||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Schedule of weighted-average assumptions used to compute the fair value of all options granted | |||||||||||||||||
Fiscal Year Ended January 31, | |||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||
Risk-free interest rate | 1.18% - 1.76% | 1.01% - 1.94% | 0.79% - 1.40% | ||||||||||||||
Expected life | 5.45 - 6.02 years | 5.27 - 6.08 years | 5.91 - 6.08 years | ||||||||||||||
Expected dividend yield | — | — | — | ||||||||||||||
Expected volatility | 46.7% - 52.2% | 48.3% - 56.8% | 57.9% - 59.9% | ||||||||||||||
Summary of RSU activity | |||||||||||||||||
Number of | Weighted- | ||||||||||||||||
Shares | Average | ||||||||||||||||
Grant Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Non-vested at February 1, 2013 | — | $ | — | ||||||||||||||
Granted | 464,942 | 20.93 | |||||||||||||||
Vested | — | — | |||||||||||||||
Forfeited | (5,960 | ) | 24.77 | ||||||||||||||
| | | | | | | | ||||||||||
Non-vested at January 31, 2014 | 458,982 | 20.88 | |||||||||||||||
Granted | 735,367 | 11.06 | |||||||||||||||
Vested | (142,509 | ) | 18.65 | ||||||||||||||
Forfeited | (120,613 | ) | 18.55 | ||||||||||||||
| | | | | | | | ||||||||||
Non-vested at January 31, 2015 | 931,227 | 13.76 | |||||||||||||||
| | | | | | | | ||||||||||
| | | | | | | | ||||||||||
Schedule of assumptions used to calculate stock-based compensation for each stock purchase right granted | |||||||||||||||||
Fiscal Year Ended January 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Risk-free interest rate | 0.07% - 0.21% | 0.09% - 0.11% | |||||||||||||||
Expected life | 0.50 - 1.00 years | 0.67 - 1.17 years | |||||||||||||||
Expected dividend yield | — | — | |||||||||||||||
Expected volatility | 56.4% - 67.6% | 45.60% | |||||||||||||||
Information_by_Geographic_Area1
Information by Geographic Areas (Tables) | 12 Months Ended | ||||||||||
Jan. 31, 2015 | |||||||||||
Information by Geographic Areas | |||||||||||
Schedule of revenue by geographic region | The following table presents our revenue by geographic region for the fiscal years ended January 31, 2015, 2014 and 2013 (in thousands): | ||||||||||
Fiscal Year Ended January 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
United States | $ | 75,948 | $ | 63,575 | $ | 49,233 | |||||
International | 11,555 | 10,754 | 7,613 | ||||||||
| | | | | | | | | | | |
$ | 87,503 | $ | 74,329 | $ | 56,846 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||
Jan. 31, 2015 | |||||||||||
Income Taxes | |||||||||||
Schedule of domestic and foreign components of net loss, and the provision for income taxes | The domestic and foreign components of net loss, and the provision for income taxes for the fiscal years ended January 31, 2015, 2014 and 2013 consists of the following (in thousands): | ||||||||||
Fiscal Year Ended January 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Net loss before income taxes: | |||||||||||
Domestic | $ | (34,044 | ) | $ | (22,249 | ) | $ | (11,059 | ) | ||
Foreign | 972 | 2,291 | 407 | ||||||||
| | | | | | | | | | | |
$ | (33,072 | ) | $ | (19,958 | ) | $ | (10,652 | ) | |||
| | | | | | | | | | | |
| | | | | | | | | | | |
Current provision: | |||||||||||
Federal | $ | — | $ | — | $ | — | |||||
State | — | — | — | ||||||||
Foreign | 692 | 173 | 128 | ||||||||
| | | | | | | | | | | |
692 | 173 | 128 | |||||||||
| | | | | | | | | | | |
Deferred provision: | |||||||||||
Federal | — | — | — | ||||||||
State | — | — | — | ||||||||
Foreign | — | — | — | ||||||||
| | | | | | | | | | | |
— | — | — | |||||||||
| | | | | | | | | | | |
Income tax provision (benefit) | $ | 692 | $ | 173 | $ | 128 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of difference in total provision for income tax that would result from applying the 35% federal statutory rate to the net loss before provision for income taxes and the reported provision for income taxes | |||||||||||
Fiscal Year Ended | |||||||||||
January 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Reconciliation of effective tax rate: | |||||||||||
Federal taxes at statutory rate | 35 | % | 35 | % | 35 | % | |||||
State taxes, net of federal benefit | 3.7 | 3.6 | 2.5 | ||||||||
Permanent items | (6.2 | ) | (9.2 | ) | (8.4 | ) | |||||
Valuation allowance | (37.1 | ) | (34.3 | ) | (40.6 | ) | |||||
Research and experimentation credits | 2.6 | — | 10.1 | ||||||||
Foreign rate differential | 0.2 | 1.2 | 0.3 | ||||||||
Other | (0.3 | ) | 2.8 | (0.1 | ) | ||||||
| | | | | | | | | | | |
Effective income tax rate | (2.1 | )% | (0.9 | )% | (1.2 | )% | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of components of the net deferred tax assets | Components of the net deferred tax assets as of January 31, 2015 and 2014 are as follows (in thousands): | ||||||||||
January 31, | |||||||||||
2015 | 2014 | ||||||||||
Deferred tax assets: | |||||||||||
Research and experimentation carryforwards | $ | 5,902 | $ | 3,704 | |||||||
Net operating loss carryforwards | 38,817 | 28,390 | |||||||||
Deferred compensation | 691 | 587 | |||||||||
Deferred revenue | 968 | 2,052 | |||||||||
Intangible assets | 253 | 293 | |||||||||
Deferred rent | 578 | 618 | |||||||||
Stock-based compensation | 1,275 | 641 | |||||||||
Other | 168 | 194 | |||||||||
| | | | | | | | ||||
Gross deferred tax assets | 48,652 | 36,480 | |||||||||
| | | | | | | | ||||
Deferred tax liabilities: | |||||||||||
Fixed assets | 151 | 229 | |||||||||
Other | — | — | |||||||||
| | | | | | | | ||||
Gross deferred tax liabilities | 151 | 229 | |||||||||
| | | | | | | | ||||
Net deferred tax assets before valuation allowance | 48,501 | 36,251 | |||||||||
Valuation allowance | (48,501 | ) | (36,251 | ) | |||||||
| | | | | | | | ||||
Deferred tax assets (liabilities), net | $ | — | $ | — | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Net_Loss_per_Share_Tables
Net Loss per Share (Tables) | 12 Months Ended | ||||||||||
Jan. 31, 2015 | |||||||||||
Net Loss per Share | |||||||||||
Schedule of common stock equivalents that were excluded from consideration in diluted net loss per share attributable to common stockholders because they had an antidilutive impact | |||||||||||
Fiscal Year Ended January 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Options to purchase common stock | 1,502,410 | 1,517,943 | 1,597,354 | ||||||||
Warrants to purchase redeemable convertible preferred stock | — | — | 137,646 | ||||||||
Warrants to purchase common stock | 13,252 | 13,728 | 48,400 | ||||||||
Restricted common stock | — | — | 9,600 | ||||||||
Restricted stock units | 931,227 | 458,982 | — | ||||||||
Redeemable convertible preferred stock | — | — | 14,335,869 | ||||||||
ESPP obligations(1) | 160,437 | 146,530 | — | ||||||||
| | | | | | | | | | | |
2,607,326 | 2,137,183 | 16,128,869 | |||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
-1 | ESPP obligations for the fiscal year ending January 31, 2015 and 2014 represent an estimate of the number of the shares to be issued to employees when considering employee contributions withheld as of January 31, 2015 and 2014 and an estimate of contributions over the remaining current purchase period of the offering. | ||||||||||
Schedule of basic and diluted net loss per share | Basic and diluted net loss per share is calculated as follows (in thousands, except per share data): | ||||||||||
Fiscal Year Ended January 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Numerator: | |||||||||||
Net loss | $ | (33,764 | ) | $ | (20,131 | ) | $ | (10,780 | ) | ||
| | | | | | | | | | | |
| | | | | | | | | | | |
Denominator: | |||||||||||
Weighted-average shares of common stock outstanding, basic and diluted | 25,093 | 19,841 | 2,101 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Net loss per share of common stock, basic and diluted | $ | (1.35 | ) | $ | (1.01 | ) | $ | (5.13 | ) | ||
| | | | | | | | | | | |
| | | | | | | | | | | |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Jan. 31, 2015 | |||||
Commitments and Contingencies | |||||
Schedule of future minimum lease payments under operating leases | As of January 31, 2015, future minimum lease payments under operating leases (assuming a June 15, 2015 commencement date for the amended and restated office lease) were as follows (in thousands): | ||||
Fiscal year ended January 31: | |||||
2016 | $ | 4,367 | |||
2017 | 4,674 | ||||
2018 | 4,538 | ||||
2019 | 4,421 | ||||
2020 | 4,509 | ||||
Thereafter | 26,278 | ||||
| | | | | |
Total future minimum lease payments | $ | 48,787 | |||
| | | | | |
| | | | | |
Schedule of minimum purchase commitments | As of January 31, 2015, future minimum purchase commitments were as follows (in thousands): | ||||
Fiscal year ended January 31: | |||||
2016 | $ | 361 | |||
2017 | 92 | ||||
2018 | 23 | ||||
| | | | | |
Total future minimum purchase commitments | $ | 476 | |||
| | | | | |
| | | | | |
Description_and_Nature_of_Busi1
Description and Nature of Business and Operations (Details) | Jan. 31, 2015 |
item | |
Description and Nature of Business and Operations | |
Number of subsidiaries | 6 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||
Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 | Apr. 17, 2013 | Jul. 30, 2013 | |
item | |||||
Segments | |||||
Number of operating segment | 1 | ||||
Allowance for doubtful accounts activity and balances | |||||
Balance at beginning of period | $67,000 | $48,000 | $42,000 | ||
Charges for bad debts | 70,000 | 29,000 | 83,000 | ||
Write-offs and adjustments | -13,000 | -10,000 | -77,000 | ||
Balance at end of period | 124,000 | 67,000 | 48,000 | ||
Common stock | |||||
Initial Public Offering and Follow-On Public Offering | |||||
Shares of common stock issued upon conversion of redeemable convertible preferred stock (in shares) | 14,335,869 | ||||
Common stock | IPO | |||||
Initial Public Offering and Follow-On Public Offering | |||||
Shares issued in public offering (in shares) | 6,900,000 | ||||
Shares sold pursuant to the underwriters' option to purchase additional shares | 900,000 | ||||
Offering price (in dollars per share) | 14 | ||||
Shares of common stock issued upon conversion of redeemable convertible preferred stock (in shares) | 14,335,869 | ||||
Proceeds from our IPO, net of underwriting discounts and commissions, but before offering expenses | 89,800,000 | ||||
Offering expenses | 2,900,000 | ||||
Common stock | Follow-on public offering | |||||
Initial Public Offering and Follow-On Public Offering | |||||
Shares issued in public offering (in shares) | 5,589,455 | ||||
Shares sold pursuant to the underwriters' option to purchase additional shares | 729,058 | ||||
Offering price (in dollars per share) | $24.75 | ||||
Proceeds from our IPO, net of underwriting discounts and commissions, but before offering expenses | 5,900,000 | ||||
Common stock | Follow-on public offering | Rally Software | |||||
Initial Public Offering and Follow-On Public Offering | |||||
Shares issued in public offering (in shares) | 250,000 | ||||
Common stock | Selling shareholders | |||||
Initial Public Offering and Follow-On Public Offering | |||||
Shares issued in public offering (in shares) | 5,339,455 | ||||
Common stock | Accounts payable | Follow-on public offering | |||||
Initial Public Offering and Follow-On Public Offering | |||||
Accrued Offering Costs | $600,000 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 |
item | |||
Property and Equipment and Acquired Intangible Assets | |||
Impairment of long-lived assets | $0 | ||
Goodwill and Intangible Assets | |||
Number of reporting unit | 1 | ||
Impairment of goodwill and intangible assets | 0 | ||
Revenue Recognition | |||
Number of sources of revenue | 3 | ||
Percentage of transactions within 15% of median range for customer group, threshold | 80.00% | ||
Median of transaction for customer group, range as a percent | 15.00% | ||
Reimbursements revenue | 1.2 | 1.2 | 0.7 |
Leases | |||
Rent expense | 3.2 | 2.3 | 1.6 |
Advertising | |||
Advertising expense | 3.3 | 2.8 | 1.7 |
Commissions | |||
Commission expense | $9.50 | $8.50 | $7.90 |
Stock-Based Compensation | |||
Offering period over which compensation expense related to shares issued pursuant to the employee stock purchase plan recognized | 1 year | ||
Trademark and domain names | |||
Property and Equipment and Acquired Intangible Assets | |||
Estimated useful life of the acquired intangible assets | 15 years | ||
Minimum | Developed software and technology | |||
Property and Equipment and Acquired Intangible Assets | |||
Estimated useful life of the acquired intangible assets | 3 years | ||
Maximum | Developed software and technology | |||
Property and Equipment and Acquired Intangible Assets | |||
Estimated useful life of the acquired intangible assets | 5 years | ||
Computer equipment | |||
Property and Equipment and Acquired Intangible Assets | |||
Estimated useful lives | 3 years | ||
Office equipment | |||
Property and Equipment and Acquired Intangible Assets | |||
Estimated useful lives | 5 years | ||
Office furniture | |||
Property and Equipment and Acquired Intangible Assets | |||
Estimated useful lives | 5 years | ||
Computer software | |||
Property and Equipment and Acquired Intangible Assets | |||
Estimated useful lives | 3 years |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Details 3) (USD $) | Jan. 31, 2015 | Jan. 31, 2014 |
In Millions, unless otherwise specified | ||
Concentration of Credit Risk and Significant Customers | ||
Certificates of deposits | $38.20 | $60 |
Certificates of deposits fully insured by the Federal Deposit Insurance Corporation | 28.4 | 50.3 |
Credit Risk | Cash and Cash Equivalents | ||
Concentration of Credit Risk and Significant Customers | ||
Certificates of deposits | 1.8 | |
Credit Risk | Short-term investment | ||
Concentration of Credit Risk and Significant Customers | ||
Certificates of deposits | $36.40 |
Acquisition_Details
Acquisition (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||||
Jan. 31, 2015 | Jul. 18, 2012 | Feb. 05, 2013 | Jan. 31, 2014 | Apr. 30, 2013 | Jan. 31, 2013 | |
Identifiable intangible assets acquired and the liabilities assumed | ||||||
Goodwill | 2,104,000 | $2,529,000 | ||||
Trademark and domain names | ||||||
Identifiable intangible assets acquired and the liabilities assumed | ||||||
Estimated useful life of the acquired intangible assets | 15 years | |||||
Agile Advantage, Inc | ||||||
Acquisition | ||||||
Total Consideration | 420,000 | |||||
Cash paid | 420,000 | |||||
Agile Advantage, Inc | Developed software and technology | ||||||
Acquisition | ||||||
Intangible assets acquired | 420,000 | |||||
Identifiable intangible assets acquired and the liabilities assumed | ||||||
Estimated useful life of the acquired intangible assets | 3 years | |||||
Flowdock Oy | ||||||
Acquisition | ||||||
Total Consideration | 4,400,000 | |||||
Cash paid | 3,000,000 | |||||
Net liabilities assumed | 100,000 | |||||
Number of shares of common stock issued | 119,993 | |||||
Shares price (in dollars per share) | $10.78 | |||||
Cash hold back | 100,000 | |||||
Number of shares of common stock held back | 23,998 | |||||
Hold back period | 1 year | |||||
Transaction costs | 500,000 | 200,000 | 300,000 | |||
Identifiable intangible assets acquired and the liabilities assumed | ||||||
Identifiable intangible assets acquired | 4,600,000 | |||||
Goodwill | 2,500,000 | |||||
Flowdock Oy | Developed software and technology | ||||||
Identifiable intangible assets acquired and the liabilities assumed | ||||||
Identifiable intangible assets acquired | 1,900,000 | |||||
Estimated useful life of the acquired intangible assets | 5 years | |||||
Flowdock Oy | Trademark and domain names | ||||||
Identifiable intangible assets acquired and the liabilities assumed | ||||||
Identifiable intangible assets acquired | $200,000 | |||||
Estimated useful life of the acquired intangible assets | 15 years |
Goodwill_and_Acquired_Intangib2
Goodwill and Acquired Intangible Assets (Details) (USD $) | 12 Months Ended | |||
Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 | Feb. 05, 2013 | |
Goodwill and Acquired Intangible Assets | ||||
Goodwill | $2,104,000 | $2,529,000 | ||
Intangible assets, gross excluding goodwill | 2,804,000 | 2,804,000 | ||
Less accumulated amortization | -1,422,000 | -895,000 | ||
Intangible assets, net excluding goodwill | 1,382,000 | 1,909,000 | ||
Amortization expense related to acquired intangible assets | 500,000 | 500,000 | 200,000 | |
Future estimated amortization expenses | ||||
2016 | 457,000 | |||
2017 | 387,000 | |||
2018 | 387,000 | |||
2019 | 15,000 | |||
2020 | 15,000 | |||
Thereafter | 121,000 | |||
Intangible assets, net excluding goodwill | 1,382,000 | 1,909,000 | ||
Flowdock Oy | ||||
Goodwill and Acquired Intangible Assets | ||||
Goodwill | 2,500,000 | |||
Developed software and technology | ||||
Goodwill and Acquired Intangible Assets | ||||
Intangible assets, gross excluding goodwill | 2,578,000 | 2,578,000 | ||
Trademark and domain names | ||||
Goodwill and Acquired Intangible Assets | ||||
Intangible assets, gross excluding goodwill | $226,000 | $226,000 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 | |
Property and Equipment and Acquired Intangible Assets | |||
Property and equipment, gross | $14,109,000 | $11,911,000 | |
Less accumulated depreciation | -8,690,000 | -6,342,000 | |
Property and equipment, net | 5,419,000 | 5,569,000 | |
Depreciation expense | 2,500,000 | 2,200,000 | 1,700,000 |
Computer equipment | |||
Property and Equipment and Acquired Intangible Assets | |||
Property and equipment, gross | 10,677,000 | 8,935,000 | |
Office equipment | |||
Property and Equipment and Acquired Intangible Assets | |||
Property and equipment, gross | 1,897,000 | 1,523,000 | |
Leasehold improvements | |||
Property and Equipment and Acquired Intangible Assets | |||
Property and equipment, gross | $1,535,000 | $1,453,000 |
Short_Term_Investment_Details
Short Term Investment (Details) (USD $) | Jan. 31, 2015 |
In Thousands, unless otherwise specified | |
Short-Term Investments | |
Amortized Cost | $51,410 |
Unrealized Losses | -46 |
Fair Value | 51,364 |
Certificates of Deposit | |
Short-Term Investments | |
Amortized Cost | 36,417 |
Unrealized Losses | -46 |
Fair Value | 36,371 |
Commercial Paper | |
Short-Term Investments | |
Amortized Cost | 14,993 |
Fair Value | $14,993 |
Fair_value_Measurement_Details
Fair value Measurement (Details) (USD $) | Jan. 31, 2015 | Jan. 31, 2014 |
In Thousands, unless otherwise specified | ||
Cash and Cash Equivalents | Money Market Funds | ||
Fair Value Measurements | ||
Fair value | $4,396 | $26,284 |
Cash and Cash Equivalents | Certificates of Deposit | ||
Fair Value Measurements | ||
Fair value | 1,743 | 60,016 |
Short-term investment | Certificates of Deposit | ||
Fair Value Measurements | ||
Fair value | 36,371 | |
Short-term investment | Commercial Paper | ||
Fair Value Measurements | ||
Fair value | 14,993 | |
Level 1 | Cash and Cash Equivalents | Money Market Funds | ||
Fair Value Measurements | ||
Fair value | 4,396 | 26,284 |
Level 1 | Cash and Cash Equivalents | Certificates of Deposit | ||
Fair Value Measurements | ||
Fair value | 60,016 | |
Level 2 | Cash and Cash Equivalents | Certificates of Deposit | ||
Fair Value Measurements | ||
Fair value | 1,743 | |
Level 2 | Short-term investment | Certificates of Deposit | ||
Fair Value Measurements | ||
Fair value | 36,371 | |
Level 2 | Short-term investment | Commercial Paper | ||
Fair Value Measurements | ||
Fair value | $14,993 |
Accrued_Liabilities_Details
Accrued Liabilities (Details) (USD $) | Jan. 31, 2015 | Jan. 31, 2014 |
In Thousands, unless otherwise specified | ||
Accrued Liabilities | ||
Accrued vacation and employee benefits | $2,024 | $1,731 |
Accrued bonuses | 1,576 | 733 |
Accrued commissions and salary | 1,911 | 2,348 |
Accrued liabilities | $5,511 | $4,812 |
Revolving_Credit_Facility_Deta
Revolving Credit Facility (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2015 | Nov. 05, 2014 |
Revolving line of credit. | ||
Revolving Credit Facility | ||
Maximum borrowing capacity | $15 | |
Outstanding balance | 0 | |
Floating interest rate(as a percent) | 1.50% | |
Maximum amount of limit or restriction | 10 | |
Unencumbered liquid assets | 35 | |
Revolving line of credit. | LIBOR | ||
Revolving Credit Facility | ||
Floating interest rate, basis | one month London Interbank Offered Rate | |
Interest rate (as percent) | 1.67% | |
Standby Letters of Credit | ||
Revolving Credit Facility | ||
Maximum borrowing capacity | $5 |
Warrants_Details
Warrants (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||
Jan. 31, 2014 | Apr. 17, 2013 | Jan. 31, 2013 | Jan. 31, 2015 | Apr. 17, 2013 | Apr. 16, 2013 | |
Activity for preferred stock warrants | ||||||
Reclassification of preferred stock warrant liability into additional paid-in capital upon closing of IPO | ($2,066,000) | |||||
Warrants to purchase | ||||||
Warrants | ||||||
Number of warrants outstanding | 13,252 | |||||
Assumptions used to calculate fair value of the warrant liability | ||||||
Risk-free interest rate (as a percent) | 0.71% | |||||
Expected volatility (as a percent) | 49.00% | |||||
Warrants to purchase | Weighted average | ||||||
Warrants | ||||||
Exercise price (in dollars per share) | 3.79 | |||||
Preferred stock | Warrants to purchase | ||||||
Warrants | ||||||
Interest expense recognized for the change in fair value of the warrants | 462,000 | 679,000 | ||||
Assumptions used to calculate fair value of the warrant liability | ||||||
Fair value of the warrants, which was reclassified as a component of additional paid-in capital | 2,100,000 | 2,100,000 | ||||
Activity for preferred stock warrants | ||||||
Balance at the beginning of the period | 1,604,000 | 925,000 | ||||
Mark to estimated fair value through interest expense | 462,000 | 679,000 | ||||
Reclassification of preferred stock warrant liability into additional paid-in capital upon closing of IPO | -2,066,000 | |||||
Balance at the end of the period | $1,604,000 | |||||
Preferred stock | A-1 | ||||||
Warrants | ||||||
Number of warrants outstanding | 32,750 | 32,750 | ||||
Exercise price (in dollars per share) | 2.5 | 2.5 | ||||
Preferred stock | B | ||||||
Warrants | ||||||
Number of warrants outstanding | 40,141 | 40,141 | ||||
Exercise price (in dollars per share) | 2.82 | 2.82 | ||||
Preferred stock | C | ||||||
Warrants | ||||||
Number of warrants outstanding | 64,755 | 64,755 | ||||
Exercise price (in dollars per share) | 3.78 | 3.78 | ||||
Common stock | Warrants to purchase | ||||||
Warrants | ||||||
Number of warrants outstanding | 2 | |||||
Assumptions used to calculate fair value of the warrant liability | ||||||
Number of warrants exercised | 107,435 | 387 | ||||
Activity for preferred stock warrants | ||||||
Number of common stock into which the warrant can be converted | 123,918 | 476 | ||||
Common stock | Warrants to purchase | Weighted average | ||||||
Warrants | ||||||
Exercise price (in dollars per share) | $3.13 | 3.79 | ||||
Common stock | Common stock warrants, one | ||||||
Warrants | ||||||
Number of warrants outstanding | 26,000 | |||||
Exercise price (in dollars per share) | 0.65 | |||||
Assumptions used to calculate fair value of the warrant liability | ||||||
Number of warrants exercised | 24,793 | |||||
Common stock | Common stock warrants, two | ||||||
Warrants | ||||||
Number of warrants outstanding | 22,400 | |||||
Exercise price (in dollars per share) | 0.0025 | |||||
Assumptions used to calculate fair value of the warrant liability | ||||||
Number of warrants exercised | 22,396 |
Redeemable_Convertible_Preferr2
Redeemable Convertible Preferred Stock (Details) (USD $) | 12 Months Ended | 0 Months Ended |
In Thousands, except Share data, unless otherwise specified | Jan. 31, 2014 | Apr. 17, 2013 |
Amount | ||
Balance at the beginning of the period | $68,410 | |
Conversion of preferred stock into common stock | -68,410 | |
Common stock | ||
Redeemable convertible preferred stock | ||
Shares of common stock into which outstanding shares of redeemable convertible preferred are converted | 14,335,869 | |
Series A-1 redeemable convertible preferred stock | ||
Shares | ||
Balance at the beginning of the period (in shares) | 3,368,552 | |
Conversion of preferred stock into common stock | -3,368,552 | |
Amount | ||
Balance at the beginning of the period | 8,395 | |
Conversion of preferred stock into common stock | -8,395 | |
Series B redeemable convertible preferred stock | ||
Shares | ||
Balance at the beginning of the period (in shares) | 2,836,586 | |
Conversion of preferred stock into common stock | -2,836,586 | |
Amount | ||
Balance at the beginning of the period | 7,957 | |
Conversion of preferred stock into common stock | -7,957 | |
Series C redeemable convertible preferred stock | ||
Shares | ||
Balance at the beginning of the period (in shares) | 4,350,478 | |
Conversion of preferred stock into common stock | -4,350,478 | |
Amount | ||
Balance at the beginning of the period | 16,373 | |
Conversion of preferred stock into common stock | -16,373 | |
Series D redeemable convertible preferred stock | ||
Shares | ||
Balance at the beginning of the period (in shares) | 2,226,860 | |
Conversion of preferred stock into common stock | -2,226,860 | |
Amount | ||
Balance at the beginning of the period | 15,803 | |
Conversion of preferred stock into common stock | -15,803 | |
Series E redeemable convertible preferred stock | ||
Shares | ||
Balance at the beginning of the period (in shares) | 1,553,393 | |
Conversion of preferred stock into common stock | -1,553,393 | |
Amount | ||
Balance at the beginning of the period | 19,882 | |
Conversion of preferred stock into common stock | ($19,882) |
Stock_Awards_Details
Stock Awards (Details) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 34 Months Ended | |||||
Mar. 01, 2013 | Feb. 04, 2013 | Jan. 31, 2015 | Feb. 01, 2015 | Dec. 16, 2014 | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | |
Options to purchase | |||||||||
Stock awards | |||||||||
Number of shares reserved for issuance subject to outstanding options | 1,502,410 | 1,502,410 | 1,517,943 | 1,597,354 | 1,872,091 | ||||
Restricted stock units | |||||||||
Stock awards | |||||||||
Number of shares reserved for issuance subject to outstanding restricted stock unit awards | 931,227 | 931,227 | 458,982 | ||||||
2002 Plan | |||||||||
Stock awards | |||||||||
Increase in the number of authorized and reserved shares of common stock for grant | 152,000 | 180,000 | |||||||
Number of shares authorized and reserved for issuance | 3,727,891 | 3,727,891 | |||||||
Number of shares issued upon the exercise of options and the issuance of restricted stock awards | 2,411,104 | ||||||||
Number of shares available for grant included in total shares reserved for issuance | 296,215 | 296,215 | |||||||
2002 Plan | Minimum | |||||||||
Stock awards | |||||||||
Maximum exercise price as a percentage of fair value of common stock on the date of grant | 100.00% | ||||||||
2002 Plan | Options to purchase | |||||||||
Stock awards | |||||||||
Number of shares reserved for issuance subject to outstanding options | 960,574 | 960,574 | |||||||
2002 Plan | Restricted stock units | |||||||||
Stock awards | |||||||||
Number of shares reserved for issuance subject to outstanding restricted stock unit awards | 59,998 | 59,998 | |||||||
2013 Plan | |||||||||
Stock awards | |||||||||
Number of shares authorized and reserved for issuance | 3,586,015 | 3,586,015 | |||||||
Number of shares available for grant included in total shares reserved for issuance | 2,090,441 | 2,090,441 | |||||||
Percentage of increase in shares reserved for issuance on February 1 of each fiscal year, starting on February 1, 2014 | 5.00% | ||||||||
2013 Plan | Subsequent events. | |||||||||
Stock awards | |||||||||
Increase in the number of authorized and reserved shares of common stock for grant | 1,270,830 | ||||||||
2013 Plan | Options to purchase | |||||||||
Stock awards | |||||||||
Number of shares reserved for issuance subject to outstanding options | 541,836 | 541,836 | |||||||
2013 Plan | Restricted stock units | |||||||||
Stock awards | |||||||||
Number of shares issued upon the exercise of options and the issuance of restricted stock awards | 82,509 | ||||||||
Number of shares reserved for issuance subject to outstanding restricted stock unit awards | 871,229 | 871,229 | |||||||
ESPP obligations | |||||||||
Stock awards | |||||||||
Number of shares authorized and reserved for issuance | 965,067 | 965,067 | |||||||
Shares issued | 331,565 | 489,894 | |||||||
Number of shares available for grant included in total shares reserved for issuance | 475,173 | 475,173 | |||||||
Maximum exercise price as a percentage of fair value of common stock on the date of grant | 85.00% | 85.00% | |||||||
Percentage of increase in shares reserved for issuance on February 1 of each fiscal year, starting on February 1, 2014 | 2.00% | ||||||||
Increase in shares reserved for issuance on February 1 of each fiscal year, starting on February 1, 2014 (in shares) | 1,408,017 | ||||||||
ESPP obligations | Subsequent events. | |||||||||
Stock awards | |||||||||
Increase in the number of authorized and reserved shares of common stock for grant | 508,332 |
Stock_Awards_Details_2
Stock Awards (Details 2) (Options to purchase, USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 |
Stock awards | |||
Weighted-average fair value on the date of grant (in dollars per share) | $5.96 | $10.34 | $4.98 |
Intrinsic value of stock options exercised | $1.60 | $7.10 | $3.70 |
Number of Shares | |||
Outstanding at the beginning of the period (in shares) | 1,517,943 | 1,597,354 | 1,872,091 |
Granted (in shares) | 335,613 | 497,163 | 185,400 |
Exercised (in shares) | -174,125 | -459,137 | -417,267 |
Forfeited (in shares) | -177,021 | -117,437 | -42,870 |
Outstanding at the end of the period (in shares) | 1,502,410 | 1,517,943 | 1,597,354 |
Weighted-Average Exercise Price | |||
Outstanding at the beginning of the period (in dollars per share) | $9.46 | $4.19 | $3.05 |
Granted (in dollars per share) | $12.79 | $19.95 | $9.23 |
Exercised (in dollars per share) | $3.52 | $2.68 | $1.33 |
Forfeited (in dollars per share) | $17 | $8.64 | $4.05 |
Outstanding at the end of the period (in dollars per share) | $10.01 | $9.46 | $4.19 |
New employees | |||
Stock awards | |||
Vesting period | 4 years | ||
New employees | Maximum | |||
Stock awards | |||
Term of the award | 10 years | ||
Current employees | |||
Stock awards | |||
Vesting period | 4 years | ||
Current employees | Maximum | |||
Stock awards | |||
Term of the award | 10 years | ||
New Non Employee Board Of Directors | Minimum | |||
Stock awards | |||
Vesting period | 3 years | ||
Existing Non Employee Board Of Directors | Maximum | |||
Stock awards | |||
Term of the award | 10 years | ||
Existing Non Employee Board Of Directors | Minimum | |||
Stock awards | |||
Vesting period | 1 year | ||
First year anniversary | New employees | |||
Stock awards | |||
Vesting percentage | 25.00% |
Stock_Awards_Details_3
Stock Awards (Details 3) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 |
Options Outstanding | |||
Number of Shares Outstanding (in shares) | 1,502,410 | ||
Weighted-Average Remaining Contractual Life | 6 years 8 months 12 days | ||
Weighted-Average Exercise Price (in dollars per share) | $10.01 | ||
Options Exercisable | |||
Number of Shares Exercisable (in shares) | 992,853 | ||
Weighted-Average Exercise Price (in dollars per share) | $7.88 | ||
Additional disclosure | |||
Aggregate intrinsic value of options outstanding | $6 | $19.10 | $10.50 |
Aggregate intrinsic value of options exercisable | $5.50 | $12.60 | $7 |
$0.55 - 2.23 | |||
Summary of information about stock options outstanding and exercisable | |||
Exercise price, low end of range (in dollars per share) | $0.55 | ||
Exercise price, high end of range (in dollars per share) | $2.23 | ||
Options Outstanding | |||
Number of Shares Outstanding (in shares) | 180,882 | ||
Weighted-Average Remaining Contractual Life | 3 years 6 months 7 days | ||
Weighted-Average Exercise Price (in dollars per share) | $1.07 | ||
Options Exercisable | |||
Number of Shares Exercisable (in shares) | 180,813 | ||
Weighted-Average Exercise Price (in dollars per share) | $1.07 | ||
5.48 | |||
Summary of information about stock options outstanding and exercisable | |||
Exercise price, low end of range (in dollars per share) | $5.48 | ||
Options Outstanding | |||
Number of Shares Outstanding (in shares) | 508,639 | ||
Weighted-Average Remaining Contractual Life | 6 years 5 months 19 days | ||
Weighted-Average Exercise Price (in dollars per share) | $5.48 | ||
Options Exercisable | |||
Number of Shares Exercisable (in shares) | 459,196 | ||
Weighted-Average Exercise Price (in dollars per share) | $5.48 | ||
5.93 - 10.78 | |||
Summary of information about stock options outstanding and exercisable | |||
Exercise price, low end of range (in dollars per share) | $5.93 | ||
Exercise price, high end of range (in dollars per share) | $10.78 | ||
Options Outstanding | |||
Number of Shares Outstanding (in shares) | 318,334 | ||
Weighted-Average Remaining Contractual Life | 7 years 3 months 4 days | ||
Weighted-Average Exercise Price (in dollars per share) | $9.14 | ||
Options Exercisable | |||
Number of Shares Exercisable (in shares) | 182,943 | ||
Weighted-Average Exercise Price (in dollars per share) | $8.49 | ||
11.43 - 24.01 | |||
Summary of information about stock options outstanding and exercisable | |||
Exercise price, low end of range (in dollars per share) | $11.43 | ||
Exercise price, high end of range (in dollars per share) | $24.01 | ||
Options Outstanding | |||
Number of Shares Outstanding (in shares) | 331,335 | ||
Weighted-Average Remaining Contractual Life | 7 years 8 months 27 days | ||
Weighted-Average Exercise Price (in dollars per share) | $15.01 | ||
Options Exercisable | |||
Number of Shares Exercisable (in shares) | 99,679 | ||
Weighted-Average Exercise Price (in dollars per share) | $17.80 | ||
24.60 - 29.96 | |||
Summary of information about stock options outstanding and exercisable | |||
Exercise price, low end of range (in dollars per share) | $24.60 | ||
Exercise price, high end of range (in dollars per share) | $29.96 | ||
Options Outstanding | |||
Number of Shares Outstanding (in shares) | 163,220 | ||
Weighted-Average Remaining Contractual Life | 8 years 18 days | ||
Weighted-Average Exercise Price (in dollars per share) | $25.54 | ||
Options Exercisable | |||
Number of Shares Exercisable (in shares) | 70,222 | ||
Weighted-Average Exercise Price (in dollars per share) | $25.41 |
Stock_Awards_Details_4
Stock Awards (Details 4) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 |
Weighted-average assumptions used to compute the fair value of all options granted | |||
Income tax benefit recognized relating to stock-based compensation expense | $0 | ||
Excess tax benefit realized relating to exercised stock options | 0 | ||
Options to purchase | |||
Weighted-average assumptions used to compute the fair value of all options granted | |||
Risk-free interest rate, minimum (as a percent) | 1.18% | 1.01% | 0.79% |
Risk-free interest rate, maximum (as a percent) | 1.76% | 1.94% | 1.40% |
Expected volatility, minimum (as a percent) | 46.70% | 48.30% | 57.90% |
Expected volatility, maximum (as a percent) | 52.20% | 56.80% | 59.90% |
Unrecognized compensation costs related to unvested stock options | $3.20 | ||
Weighted-average period over which unrecognized compensation costs are expected to be recognized | 2 years 5 months 1 day | ||
Options to purchase | Minimum | |||
Weighted-average assumptions used to compute the fair value of all options granted | |||
Expected life | 5 years 5 months 12 days | 5 years 3 months 7 days | 5 years 10 months 28 days |
Options to purchase | Maximum | |||
Weighted-average assumptions used to compute the fair value of all options granted | |||
Expected life | 6 years 7 days | 6 years 29 days | 6 years 29 days |
Stock_Awards_Details_5
Stock Awards (Details 5) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 34 Months Ended | ||||
Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 | Feb. 05, 2013 | Feb. 28, 2015 | Apr. 30, 2014 | Jul. 31, 2012 | Dec. 16, 2014 | Jan. 31, 2015 | |
Weighted-Average Grant Date Fair Value | |||||||||
Fair value of shares of restricted stock issued and recorded as stock-based compensation expense | $6,373,000 | $4,451,000 | $957,000 | ||||||
Aggregate purchase price | 2,715,000 | 1,884,000 | |||||||
Restricted stock units | |||||||||
Restricted Stock Units and Employee Stock Purchase Plan | |||||||||
Granted (in shares) | 735,367 | 464,942 | |||||||
Number of Shares | |||||||||
Outstanding at the beginning of the period (in shares) | 458,982 | ||||||||
Granted (in shares) | 735,367 | 464,942 | |||||||
Vested (in shares) | -142,509 | ||||||||
Forfeited (in shares) | -120,613 | -5,960 | |||||||
Outstanding at the beginning of the period (in shares) | 931,227 | 458,982 | 931,227 | ||||||
Weighted-Average Grant Date Fair Value | |||||||||
Outstanding at the beginning of the period (in dollars per share) | $20.88 | ||||||||
Granted (in dollars per share) | $11.06 | $20.93 | |||||||
Vested (in dollars per share) | $18.65 | ||||||||
Forfeited (in dollars per share) | $18.55 | $24.77 | |||||||
Outstanding at the end of the period (in dollars per share) | $13.76 | $20.88 | $13.76 | ||||||
Weighted-average remaining contractual life | 1 year 8 months 19 days | ||||||||
Grant date fair value of the units granted (in dollars per share) | $13.76 | $20.88 | $13.76 | ||||||
Unrecognized stock-based compensation | 9,500,000 | 9,500,000 | |||||||
Period over which fair value of shares of restricted stock issued will be recorded as compensation expense | 3 years 2 months 1 day | ||||||||
Restricted stock units | New employees | Minimum | |||||||||
Restricted Stock Units and Employee Stock Purchase Plan | |||||||||
Vesting period | 4 years | ||||||||
Restricted stock units | Current employees | Minimum | |||||||||
Restricted Stock Units and Employee Stock Purchase Plan | |||||||||
Vesting period | 4 years | ||||||||
Restricted stock units | New Non Employee Board Of Directors | Minimum | |||||||||
Restricted Stock Units and Employee Stock Purchase Plan | |||||||||
Vesting period | 3 years | ||||||||
Restricted stock units | Existing Non Employee Board Of Directors | |||||||||
Restricted Stock Units and Employee Stock Purchase Plan | |||||||||
Vesting period | 1 year | ||||||||
First year anniversary | Restricted stock units | New employees | |||||||||
Restricted Stock Units and Employee Stock Purchase Plan | |||||||||
Vesting percentage | 25.00% | ||||||||
2002 Plan | Minimum | |||||||||
Weighted-Average Grant Date Fair Value | |||||||||
Exercise price as a percentage of the fair value of common stock on the date of grant | 100.00% | ||||||||
2002 Plan | Restricted stock units | |||||||||
Restricted Stock Units and Employee Stock Purchase Plan | |||||||||
Granted (in shares) | 119,998 | ||||||||
Number of Shares | |||||||||
Outstanding at the beginning of the period (in shares) | 59,998 | ||||||||
Granted (in shares) | 119,998 | ||||||||
Vested (in shares) | -59,998 | -60,000 | |||||||
2002 Plan | Restricted common stock | Agile Advantage, Inc | |||||||||
Weighted-Average Grant Date Fair Value | |||||||||
Shares of restricted stock issued | 9,600 | ||||||||
Fair value of shares of restricted stock issued and recorded as stock-based compensation expense | 100,000 | ||||||||
Period over which fair value of shares of restricted stock issued will be recorded as compensation expense | 12 months | ||||||||
ESPP obligations | |||||||||
Weighted-Average Grant Date Fair Value | |||||||||
Period over which fair value of shares of restricted stock issued will be recorded as compensation expense | 8 months 12 days | ||||||||
Exercise price as a percentage of the fair value of common stock on the date of grant | 85.00% | 85.00% | |||||||
Shares price (in dollars per share) | $9.59 | ||||||||
Discounted share price (in dollars per share) | $8.15 | ||||||||
Shares issued | 331,565 | 489,894 | |||||||
Aggregate purchase price | 2,700,000 | ||||||||
Accumulated employee withholdings | $400,000 | $400,000 |
Stock_Awards_Details_6
Stock Awards (Details 6) (ESPP obligations, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Weighted-average assumptions were used to calculate our stock-based compensation for each stock purchase right granted | ||
Expected volatility (as a percent) | 45.60% | |
Unrecognized stock-based compensation costs | $0.90 | |
Weighted-average period over which unrecognized compensation costs are expected to be recognized | 8 months 12 days | |
Minimum | ||
Weighted-average assumptions were used to calculate our stock-based compensation for each stock purchase right granted | ||
Risk-free interest rate (as a percent) | 0.07% | 0.09% |
Expected life | 6 months | 8 months 1 day |
Expected volatility (as a percent) | 56.40% | |
Maximum | ||
Weighted-average assumptions were used to calculate our stock-based compensation for each stock purchase right granted | ||
Risk-free interest rate (as a percent) | 0.21% | 0.11% |
Expected life | 1 year | 1 year 2 months 1 day |
Expected volatility (as a percent) | 67.60% |
Information_by_Geographic_Area2
Information by Geographic Areas (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 |
Revenue by geographic region | |||
Total revenue | $87,503 | $74,329 | $56,846 |
United States | |||
Revenue by geographic region | |||
Total revenue | 75,948 | 63,575 | 49,233 |
International | |||
Revenue by geographic region | |||
Total revenue | $11,555 | $10,754 | $7,613 |
International | Total revenue | Geographic Concentration | Maximum | |||
Revenue by geographic region | |||
Percentage of total revenue | 4.00% | 4.00% | 4.00% |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 |
Net loss before income taxes: | |||
Domestic | ($34,044) | ($22,249) | ($11,059) |
Foreign | 972 | 2,291 | 407 |
Net loss before income taxes | -33,072 | -19,958 | -10,652 |
Current provision: | |||
Foreign | 692 | 173 | 128 |
Current provision | 692 | 173 | 128 |
Income tax provision (benefit) | 692 | 173 | 128 |
Reconciliation of effective tax rate: | |||
Federal taxes at statutory rate | 35.00% | 35.00% | 35.00% |
State taxes, net of federal benefit | 3.70% | 3.60% | 2.50% |
Permanent items | -6.20% | -9.20% | -8.40% |
Valuation allowance | -37.10% | -34.30% | -40.60% |
Research and experimentation credits | 2.60% | 10.10% | |
Foreign rate differential | 0.20% | 1.20% | 0.30% |
Other | -0.30% | 2.80% | -0.10% |
Effective income tax rate | -2.10% | -0.90% | -1.20% |
Deferred tax assets: | |||
Research and experimentation carryforwards | 5,902 | 3,704 | |
Net operating loss carryforwards | 38,817 | 28,390 | |
Deferred compensation | 691 | 587 | |
Deferred revenue | 968 | 2,052 | |
Intangible assets | 253 | 293 | |
Deferred rent | 578 | 618 | |
Share-based compensation | 1,275 | 641 | |
Other | 168 | 194 | |
Gross deferred tax assets | 48,652 | 36,480 | |
Deferred tax liabilities: | |||
Fixed assets | 151 | 229 | |
Gross deferred tax liabilities | 151 | 229 | |
Net deferred tax assets before valuation allowance | 48,501 | 36,251 | |
Valuation allowance | ($48,501) | ($36,251) |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended | 3 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2014 |
Net operating loss carryforwards | |||
Increase in the amount of valuation allowance due to an increase in deferred tax assets | $12.20 | $6.90 | |
Federal | |||
Net operating loss carryforwards | |||
Amount of net operating loss carryforwards | 101.9 | ||
Federal | Federal research and experimentation tax credit carryforwards | |||
Net operating loss carryforwards | |||
Amount of federal research and experimentation tax credit carryforwards | 5.9 | ||
State | |||
Net operating loss carryforwards | |||
Amount of net operating loss carryforwards | 87 | ||
Flowdock Oy | |||
Net operating loss carryforwards | |||
Current tax liability | 0.6 | ||
Deferred charge | $0.30 | $0.30 |
Net_Loss_per_Share_Details
Net Loss per Share (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 |
Common stock equivalents excluded from consideration in diluted net loss per share | |||
Common stock equivalents excluded from consideration in diluted net loss per share (in shares) | 2,607,326 | 2,137,183 | 16,128,869 |
Numerator: | |||
Net loss | ($33,764) | ($20,131) | ($10,780) |
Denominator: | |||
Weighted-average shares of common stock outstanding, basic and diluted | 25,093,000 | 19,841,000 | 2,101,000 |
Net loss per common share, basic and diluted (in dollars per share) | ($1.35) | ($1.01) | ($5.13) |
Options to purchase | Common stock | |||
Common stock equivalents excluded from consideration in diluted net loss per share | |||
Common stock equivalents excluded from consideration in diluted net loss per share (in shares) | 1,502,410 | 1,517,943 | 1,597,354 |
Warrants to purchase | Common stock | |||
Common stock equivalents excluded from consideration in diluted net loss per share | |||
Common stock equivalents excluded from consideration in diluted net loss per share (in shares) | 13,252 | 13,728 | 48,400 |
Warrants to purchase | Preferred stock | |||
Common stock equivalents excluded from consideration in diluted net loss per share | |||
Common stock equivalents excluded from consideration in diluted net loss per share (in shares) | 137,646 | ||
Restricted common stock | |||
Common stock equivalents excluded from consideration in diluted net loss per share | |||
Common stock equivalents excluded from consideration in diluted net loss per share (in shares) | 9,600 | ||
Restricted stock units | |||
Common stock equivalents excluded from consideration in diluted net loss per share | |||
Common stock equivalents excluded from consideration in diluted net loss per share (in shares) | 931,227 | 458,982 | |
Preferred stock | |||
Common stock equivalents excluded from consideration in diluted net loss per share | |||
Common stock equivalents excluded from consideration in diluted net loss per share (in shares) | 14,335,869 | ||
ESPP obligations | |||
Common stock equivalents excluded from consideration in diluted net loss per share | |||
Common stock equivalents excluded from consideration in diluted net loss per share (in shares) | 160,437 | 146,530 |
Employee_Benefit_Plan_Details
Employee Benefit Plan (Details) (USD $) | 12 Months Ended |
Jan. 31, 2014 | |
Employee Benefit Plan | |
Minimum age to be attained in order to participate in the 401(k) Plan | 21 years |
Maximum employee contribution as a percentage of eligible compensation | 90.00% |
Amount of employee contribution or matching provisions | $0 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | 1 Months Ended | |||
Jan. 31, 2015 | Sep. 30, 2013 | Jan. 31, 2014 | Jun. 10, 2013 | 31-May-14 | |
sqft | sqft | ||||
Operating leases | |||||
Cash pledged to the landlord as a security deposit | $4,200,000 | $4,200,000 | |||
Forecast | |||||
Operating leases | |||||
Rental revenue | 100,000 | ||||
Boulder, Colorado | |||||
Operating leases | |||||
Space under lease (in square feet) | 89,000 | ||||
Lease term | 10 years | ||||
Number of five year periods for which the term of the lease can be extended under option | 2 | ||||
Period for which each option to extend the lease term is available | 5 years | ||||
Cash pledged to the landlord as a security deposit | 4,200,000 | ||||
Letters of credit, amount cancelled | 2,500,000 | ||||
Financial covenant compliance period | 5 years | ||||
Cash security deposit assuming no default under lease and compliance of certain financial covenants | 2,100,000 | ||||
Tenant finish allowance | $4,600,000 | ||||
Denver, Colorado | |||||
Operating leases | |||||
Space under lease (in square feet) | 22,000 | 5,000 | |||
Raleigh, North Carolina | |||||
Operating leases | |||||
Space under lease (in square feet) | 10,000 | ||||
Seattle, Washington | |||||
Operating leases | |||||
Space under lease (in square feet) | 5,200 | ||||
London, England | Maximum | |||||
Operating leases | |||||
Space under lease (in square feet) | 6,000 | ||||
Melbourne, Australia | Maximum | |||||
Operating leases | |||||
Space under lease (in square feet) | 6,000 | ||||
Sydney, Australia | Maximum | |||||
Operating leases | |||||
Space under lease (in square feet) | 6,000 | ||||
Helsinki, Finland | Maximum | |||||
Operating leases | |||||
Space under lease (in square feet) | 6,000 | ||||
Singapore | Maximum | |||||
Operating leases | |||||
Space under lease (in square feet) | 6,000 | ||||
Amsterdam, the Netherlands | Maximum | |||||
Operating leases | |||||
Space under lease (in square feet) | 6,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details 2) (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 | |
item | |||
Operating leases | |||
Rent expense | $3,200,000 | $2,300,000 | $1,600,000 |
Future minimum lease payments under operating leases | |||
2016 | 4,367,000 | ||
2017 | 4,674,000 | ||
2018 | 4,538,000 | ||
2019 | 4,421,000 | ||
2020 | 4,509,000 | ||
Thereafter | 26,278,000 | ||
Total future minimum lease payments | 48,787,000 | ||
Purchase Commitments | |||
2016 | 361,000 | ||
2017 | 92,000 | ||
2018 | 23,000 | ||
Total future minimum purchase commitments | 476,000 | ||
Self-insurance reserves | |||
Self insurance liabilities | $200,000 | $100,000 | |
Legal | |||
Number of pending or threatened legal actions or proceedings | 0 |
Commitments_and_Contingencies_3
Commitments and Contingencies (Details 3) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2015 |
Severance | ||
Severance | ||
Severance obligations included in accrued liabilities | $0.20 | $0.30 |
Sales and marketing | ||
Severance | ||
Severance obligations | 1.1 | |
Severance obligations payable in cash | 1 | |
Severance obligations, share-based compensation | 0.1 | |
Sales and marketing | Severance | ||
Severance | ||
Severance obligations | $0.40 |