Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jul. 31, 2014 | Aug. 29, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'Rally Software Development Corp | ' |
Entity Central Index Key | '0001313911 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Jul-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--01-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 25,201,104 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Jul. 31, 2014 | Jan. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $77,005 | $88,891 |
Restricted cash, short-term | 16 | 16 |
Accounts receivable, net | 13,761 | 21,771 |
Other receivables | 179 | 78 |
Prepaid expenses and other current assets | 4,201 | 3,310 |
Total current assets | 95,162 | 114,066 |
Property and equipment, net | 6,330 | 5,569 |
Goodwill | 2,489 | 2,529 |
Intangible assets, net | 1,646 | 1,909 |
Restricted cash, long-term | 4,200 | 4,200 |
Other assets | 888 | 810 |
Total assets | 110,715 | 129,083 |
Current liabilities: | ' | ' |
Accounts payable | 2,657 | 2,170 |
Accrued liabilities | 3,405 | 4,812 |
Deferred revenue | 35,245 | 38,352 |
Other current liabilities | 1,809 | 2,054 |
Total current liabilities | 43,116 | 47,388 |
Deferred revenue, net of current portion | 1,061 | 2,433 |
Other long-term liabilities | 889 | 888 |
Total liabilities | 45,066 | 50,709 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Common stock, $0.0001 par value per share. At July 31, 2014 and January 31, 2014, authorized, 200,000,000 shares; issued and outstanding, 25,199,664 and 24,786,413 shares, respectively | 3 | 3 |
Additional paid-in capital | 178,688 | 174,027 |
Accumulated deficit | -113,047 | -95,660 |
Accumulated other comprehensive income | 5 | 4 |
Total stockholders' equity | 65,649 | 78,374 |
Total liabilities and stockholders' equity | $110,715 | $129,083 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jul. 31, 2014 | Jan. 31, 2014 |
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 | 25,199,664 | 24,786,413 |
Common stock, outstanding shares | 25,199,664 | 24,786,413 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2014 | Jul. 31, 2013 | ||||
Revenue: | ' | ' | ' | ' | ||||
Subscription and support | $17,440 | $14,220 | $33,544 | $27,593 | ||||
Perpetual license | 1,361 | 2,735 | 2,001 | 3,364 | ||||
Total product revenue | 18,801 | 16,955 | 35,545 | 30,957 | ||||
Professional services | 2,711 | 2,840 | 5,398 | 4,888 | ||||
Total revenue | 21,512 | 19,795 | 40,943 | 35,845 | ||||
Cost of revenue: | ' | ' | ' | ' | ||||
Product | 2,840 | [1] | 1,800 | [1] | 5,236 | [1] | 3,485 | [1] |
Professional services | 2,953 | [1] | 2,336 | [1] | 5,724 | [1] | 4,209 | [1] |
Total cost of revenue | 5,793 | [1] | 4,136 | [1] | 10,960 | [1] | 7,694 | [1] |
Gross profit | 15,719 | 15,659 | 29,983 | 28,151 | ||||
Operating expenses: | ' | ' | ' | ' | ||||
Sales and marketing | 12,841 | [1] | 9,085 | [1] | 24,250 | [1] | 17,919 | [1] |
Research and development | 6,495 | [1] | 5,051 | [1] | 12,481 | [1] | 10,131 | [1] |
General and administrative | 4,974 | [1] | 3,782 | [1] | 10,163 | [1] | 7,636 | [1] |
Total operating expenses | 24,310 | [1] | 17,918 | [1] | 46,894 | [1] | 35,686 | [1] |
Loss from operations | -8,591 | -2,259 | -16,911 | -7,535 | ||||
Other (expense) income: | ' | ' | ' | ' | ||||
Interest and other income | 40 | 36 | 79 | 49 | ||||
Interest expense | ' | -2 | ' | -464 | ||||
Loss on foreign currency transactions and other gain (loss) | -70 | -4 | -152 | -24 | ||||
Loss before provision for income taxes | -8,621 | -2,229 | -16,984 | -7,974 | ||||
Provision for income taxes | 286 | 49 | 403 | 94 | ||||
Net loss | ($8,907) | ($2,278) | ($17,387) | ($8,068) | ||||
Net loss per share: | ' | ' | ' | ' | ||||
Basic and diluted (in dollars per share) | ($0.36) | ($0.09) | ($0.70) | ($0.53) | ||||
Weighted-average shares outstanding: | ' | ' | ' | ' | ||||
Basic and diluted (in shares) | 25,026 | 24,014 | 24,923 | 15,109 | ||||
[1] | Includes stock-based compensation expense as follows: Three Months Ended July 31, 2014 --- 2013 (in thousands) Cost of product revenue:$ 74 --- $39 Cost of professional services revenue: 98 --- 46 Sales and marketing: 367 --- 302 Research and development: 237 --- 402 General and administrative: 567 --- 261 Total stock-based compensation: $1,343 --- $1,050. Six Months Ended July 31, 2014 --- 2013 (in thousands) Cost of product revenue: $169 --- $105 Cost of professional services revenue: 187 --- 65 Sales and marketing: 805 --- 407 Research and development: 649 --- 626 General and administrative: 1,089 --- 431 Total stock-based compensation: $2,899 --- $1,634. |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2014 | Jul. 31, 2013 |
Stock-based compensation expense | $1,343 | $1,050 | $2,899 | $1,634 |
Cost of product revenue | ' | ' | ' | ' |
Stock-based compensation expense | 74 | 39 | 169 | 105 |
Cost of professional services revenue | ' | ' | ' | ' |
Stock-based compensation expense | 98 | 46 | 187 | 65 |
Sales and marketing | ' | ' | ' | ' |
Stock-based compensation expense | 367 | 302 | 805 | 407 |
Research and development | ' | ' | ' | ' |
Stock-based compensation expense | 237 | 402 | 649 | 626 |
General and administrative | ' | ' | ' | ' |
Stock-based compensation expense | $567 | $261 | $1,089 | $431 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2014 | Jul. 31, 2013 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ' | ' | ' | ' |
Net loss | ($8,907) | ($2,278) | ($17,387) | ($8,068) |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Foreign currency translation adjustments | -55 | -19 | 1 | -29 |
Comprehensive loss | ($8,962) | ($2,297) | ($17,386) | ($8,097) |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jul. 31, 2014 | Jul. 31, 2013 |
Cash flow from operating activities: | ' | ' |
Net loss | ($17,387) | ($8,068) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 1,503 | 1,302 |
Noncash stock-based compensation expense | 2,899 | 1,634 |
Noncash interest expense | ' | 462 |
Other | 77 | ' |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 8,011 | 5,250 |
Other receivables | -101 | 227 |
Prepaid expenses and other current assets | -891 | -1,151 |
Other assets | -112 | -225 |
Accounts payable and accrued liabilities | -958 | -110 |
Deferred revenue | -4,480 | -2,024 |
Other current liabilities | -245 | 826 |
Other long-term liabilities | 1 | -22 |
Net cash used in operating activities | -11,683 | -1,899 |
Cash flows from investing activities: | ' | ' |
Purchase of property and equipment | -1,980 | -2,679 |
Proceeds from sale of assets | 14 | ' |
Purchase of Flowdock Oy, net of cash received | ' | -2,857 |
Net cash used in investing activities | -1,966 | -5,536 |
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 | 408 | 409 |
Proceeds from employee stock purchase plan | 1,463 | ' |
Payroll Taxes paid in lieu of shares issued for stock-based compensation | -108 | ' |
Payments of offering costs | ' | -1,652 |
Net cash provided by financing activities | 1,763 | 94,479 |
Net increase (decrease) in cash and cash equivalents | -11,886 | 87,044 |
Cash and cash equivalents-beginning of period | 88,891 | 17,609 |
Cash and cash equivalents-end of period | 77,005 | 104,653 |
Supplementary information: | ' | ' |
Cash paid for interest | ' | 2 |
Cash paid for income taxes | 770 | 116 |
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 | 111 | 121 |
Offering costs included in accounts payable | ' | $607 |
Description_and_Nature_of_Busi
Description and Nature of Business and Operations | 6 Months Ended |
Jul. 31, 2014 | |
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) is a provider of cloud-based solutions for managing Agile software development. Our platform transforms the way organizations manage the software development lifecycle by enabling close alignment of software development and strategic business objectives, facilitating collaboration, increasing transparency, and automating manual processes. Organizations use our solutions to accelerate the pace of innovation, improve productivity and more effectively adapt to rapidly-changing customer needs and competitive dynamics. Our enterprise-class platform is extensible, cost-effective and designed to be easy to use. Agile is a software development methodology characterized by short, iterative and highly-adaptable development cycles. We also provide consulting services to help customers adopt and succeed with Agile software development practices as well as to learn to use our solutions. | |
Our headquarters are located in Boulder, Colorado. We were incorporated in the State of Delaware on July 12, 2001. At July 31, 2014, 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 April 30, July 31, October 31 and January 31. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended | |||
Jul. 31, 2014 | ||||
Summary of Significant Accounting Policies | ' | |||
Summary of Significant Accounting Policies | ' | |||
(2) Summary of Significant Accounting Policies | ||||
(a) Basis of Presentation and Consolidation | ||||
The accompanying unaudited condensed consolidated financial statements and condensed notes have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by generally accepted accounting principles in the United States (GAAP) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for the fair statement have been included. The results of operations for the three and six months ended July 31, 2014 are not necessarily indicative of the results to be expected for the year ending January 31, 2015 or for other interim periods or future years. The condensed consolidated balance sheet as of January 31, 2014 is derived from the audited financial statements as of that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K dated as of, and filed with the Securities and Exchange Commission, or SEC, on April 11, 2014. | ||||
(b) Initial Public Offering and Follow-On Public Offering | ||||
On April 17, 2013, we closed our initial public offering (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; capitalization of software development costs; 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) Cash and Cash Equivalents | ||||
We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents consist primarily of investments in a money market mutual fund that invests primarily in short-term United States Treasury Securities, a bank money market account and certificates of deposit. Cash equivalents are carried at cost, which approximates fair value. | ||||
(e) 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 | |||
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 | 5 years | |||
Trademark and domain names | 15 years | |||
(f) 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 condensed 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. | ||||
(g) 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. Reimbursements received were approximately $0.3 million for each of the three months ended July 31, 2014 and 2013, and approximately $0.5 million for each of the six months ended July 31, 2014 and 2013. | ||||
(h) 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 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. | ||||
(i) 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 restricted stock units (RSUs) are measured at fair value 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 our 2013 Employee Stock Purchase Plan (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. | ||||
(j) Foreign Currency Translation | ||||
The functional currency of our foreign subsidiaries is the local currency. We conduct business in the United Kingdom (UK) 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 condensed consolidated statements of operations. | ||||
(k) Fair Value Measurements | ||||
In general, asset and liability fair values are determined using the following inputs: | ||||
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. | ||||
We believe that the carrying amounts of our financial instruments, including cash equivalents and restricted cash, approximate their fair value due to the short-term maturities of these instruments. The carrying amount of cash equivalents, which consists of a money market mutual fund, a bank money market account and certificates of deposits, was $74.8 million and $86.3 million as of July 31, 2014 and January 31, 2014, respectively, and approximates fair value based on quoted market prices, which are Level 1 inputs. The carrying amount of restricted cash, which consists of certificates of deposits, approximates fair value based on quoted market prices, which are Level 1 inputs. | ||||
(l) Concentration of Credit Risk and Significant Customers | ||||
Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. At July 31, 2014, we had $50.0 million in certificates of deposits at various financial institutions, all of which are fully insured by the Federal Deposit Insurance Corporation, and approximately $12.9 million held in a money market mutual fund that invests primarily in short-term United States Treasury securities. Primarily all of the remaining amount of cash and cash equivalents were held in demand deposits, a certificate of deposit or a bank money market account at two financial institutions that we believe to be creditworthy. We perform ongoing evaluations of our customers’ financial condition and do not require any collateral to support receivables. As of July 31, 2014 and January 31, 2014, no customer accounted for more than 10% of accounts receivable. During the three and six months ended July 31, 2014 and 2013, no customer represented more than 10% of revenue. | ||||
(m) 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. | ||||
Effective February 1, 2014, the Company adopted Accounting Standards Update (ASU) No. 2013-11, “Presentation of a Liability for an Unrecognized Tax Benefit When a Net Operating Loss or Tax Credit Carryforward Exists.” This accounting update requires that an unrecognized tax benefit be presented as a reduction of a deferred tax asset for a net operating loss (NOL) carryforward or other tax credit carryforward when settlement in this manner is available under applicable tax law. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial position, results of operations or cash flows. | ||||
On May 28, 2014, the Financial Accounting Standards Board (FASB) issued 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 condensed consolidated financial position, results of operations and cash flows. |
Acquisition
Acquisition | 6 Months Ended |
Jul. 31, 2014 | |
Acquisition | ' |
Acquisition | ' |
(3) Acquisition | |
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 condensed 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 $4.4 million, which was comprised of $1.9 million related to developed software and technology, $0.2 million related to trademark and domain names and $2.3 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. | |
In the fourth quarter of fiscal year ended January 31, 2014, we finalized the purchase accounting for the acquisition of Flowdock as it relates to deferred taxes. We recorded an additional $0.2 million in goodwill and a net deferred tax liability of $0.3 million primarily related to the acquired developed software and technology. |
Goodwill_and_Acquired_Intangib
Goodwill and Acquired Intangible Assets | 6 Months Ended | |||||||
Jul. 31, 2014 | ||||||||
Goodwill and Acquired Intangible Assets | ' | |||||||
Goodwill and Acquired Intangible Assets | ' | |||||||
(4) Goodwill and Acquired 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. The identification and measurement of goodwill impairment involves the estimation of the fair value of the company. The estimate of our fair value, based on the best information available as of the date of the assessment, is subjective and requires judgment, including management assumptions about expected future revenue forecasts and discount rates. | ||||||||
In connection with the acquisition of Flowdock in the first quarter of fiscal 2014, we recorded goodwill of $2.5 million. The change in goodwill from January 31, 2014 to July 31, 2014 was a result of foreign current translation adjustments. As of July 31, 2014 and January 31, 2014, intangible assets, excluding goodwill, consist of the following (in thousands): | ||||||||
July 31, | January 31, | |||||||
2014 | 2014 | |||||||
Developed software technology | $ | 2,578 | $ | 2,578 | ||||
Trademark and domain names | 226 | 226 | ||||||
2,804 | 2,804 | |||||||
Less accumulated amortization | (1,158 | ) | (895 | ) | ||||
$ | 1,646 | $ | 1,909 | |||||
Amortization expense related to acquired intangible assets for each of the three months ended July 31, 2014 and 2013 was $0.1 million, and for each of the six months ended July 31, 2014 and 2013 was $0.3 million. | ||||||||
As of July 31, 2014, future estimated amortization expenses related to acquired intangible assets were as follows (in thousands): | ||||||||
Fiscal year ended January 31: | ||||||||
2015 (remaining six months) | $ | 263 | ||||||
2016 | 457 | |||||||
2017 | 387 | |||||||
2018 | 387 | |||||||
2019 | 15 | |||||||
Thereafter | 137 | |||||||
Total future estimated amortization expense | $ | 1,646 |
Property_and_Equipment
Property and Equipment | 6 Months Ended | |||||||
Jul. 31, 2014 | ||||||||
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 July 31, 2014 and January 31, 2014, property and equipment consisted of the following (in thousands): | ||||||||
July 31, | January 31, | |||||||
2014 | 2014 | |||||||
Computers, peripherals and software | $ | 10,306 | $ | 8,935 | ||||
Office furniture and equipment | 1,926 | 1,523 | ||||||
Leasehold improvements | 1,607 | 1,453 | ||||||
13,839 | 11,911 | |||||||
Less accumulated depreciation | (7,509 | ) | (6,342 | ) | ||||
$ | 6,330 | $ | 5,569 | |||||
Depreciation expense related to property and equipment, for the three months ended July 31, 2014 and 2013 was $0.6 million and $0.6 million, respectively, and for the six months ended July 31, 2014 and 2013 was $1.2 million and $1.0 million, respectively. |
Accrued_Liabilities
Accrued Liabilities | 6 Months Ended | |||||||
Jul. 31, 2014 | ||||||||
Accrued Liabilities | ' | |||||||
Accrued Liabilities | ' | |||||||
(6) Accrued Liabilities | ||||||||
Accrued liabilities as of July 31, 2014 and January 31, 2014 consisted of the following (in thousands): | ||||||||
July 31, | January 31, | |||||||
2014 | 2014 | |||||||
Accrued vacation and employee benefits | $ | 1,938 | $ | 1,731 | ||||
Accrued bonuses | 674 | 733 | ||||||
Accrued commissions and salary | 793 | 2,348 | ||||||
$ | 3,405 | $ | 4,812 |
Warrants
Warrants | 6 Months Ended | |||||||
Jul. 31, 2014 | ||||||||
Warrants | ' | |||||||
Warrants | ' | |||||||
(7) 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 | July 2015 | May 2014 - June 2018 | October 2015 - June 2018 | |||||
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 did not recognize any interest expense during the three months ended July 31, 2014 and 2013 for the change in fair value of the warrants. We did not recognize any interest expense during the six months ended July 31, 2014 for the change in fair value of the warrants and recognized $0.5 million of interest expense during the six months ended July 31, 2013, 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. | ||||||||
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% | |||||||
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 six months ended July 31, 2014, we issued 387 shares of our common stock upon the net exercise of a common stock warrant to acquire 476 shares having an exercise price of $3.79 per share. We did not receive any cash proceeds in connection with this exercise. At July 31, 2014, 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 | 6 Months Ended | ||||||||||||||||
Jul. 31, 2014 | |||||||||||||||||
Redeemable Convertible Preferred Stock | ' | ||||||||||||||||
Redeemable Convertible Preferred Stock | ' | ||||||||||||||||
(8) 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 three months ended April 30, 2013 (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, April 30, 2013 | — | $ | — | — | $ | — | — | $ | — | ||||||||
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, April 30, 2013 | — | $ | — | — | $ | — | $ | — |
Stock_Awards
Stock Awards | 6 Months Ended | |||||||||||||
Jul. 31, 2014 | ||||||||||||||
Stock Awards | ' | |||||||||||||
Stock Awards | ' | |||||||||||||
(9) 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. As of July 31, 2014, we had 3,727,891 shares of common stock reserved for issuance under the 2002 Plan, of which 2,370,250 had been issued upon the exercise of options, the issuance of restricted stock awards or the vesting of RSUs, 1,032,385 were subject to outstanding options, 59,998 were subject to outstanding RSU awards and 265,258 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 July 31, 2014, we had 3,586,015 shares of common stock reserved for issuance under the 2013 Plan, of which 52,138 had been issued upon the vesting of RSUs, 584,499 were subject to outstanding options, 446,965 were subject to outstanding RSU awards and 2,502,413 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, 2014, common stock reserved for issuance under the 2013 Plan automatically increased by 1,239,320 shares. | ||||||||||||||
The ESPP authorizes the issuance of shares of common stock pursuant to purchase rights granted to our employees. As of July 31, 2014, we had 965,067 shares of common stock reserved for issuance under the ESPP, of which 335,993 shares have been issued and 629,074 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, 2014, common stock reserved for issuance under the ESPP automatically increased by 495,728 shares. | ||||||||||||||
Stock Options | ||||||||||||||
Options granted 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. We recognize compensation cost on a straight-line basis over the requisite service period of the award. | ||||||||||||||
During the six months ended July 31, 2014 and 2013, we granted options to employees to purchase 288,950 and 409,301 shares of common stock at a weighted-average exercise price of $13.21 and $18.85 per share and a weighted-average fair value on the date of grant of $6.11 and $9.71, respectively. The intrinsic value of stock options exercised during the six months ended July 31, 2014 and 2013 was $1.3 million and $2.8 million, respectively. | ||||||||||||||
The following table is a summary of stock option activity for the six months ended July 31, 2014: | ||||||||||||||
Number | Weighted-Average | |||||||||||||
of Options | Exercise Price | |||||||||||||
Outstanding at February 1, 2014 | 1,517,943 | $ | 9.46 | |||||||||||
Granted | 288,950 | 13.21 | ||||||||||||
Exercised | (133,271 | ) | 3.06 | |||||||||||
Forfeited | (56,738 | ) | 14.08 | |||||||||||
Outstanding at July 31, 2014 | 1,616,884 | 10.5 | ||||||||||||
The following table summarizes information about stock options outstanding and exercisable as of July 31, 2014: | ||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||
Weighted- | ||||||||||||||
Exercise Price | Number | Average | Weighted- | Number | Weighted- | |||||||||
of Shares | Remaining | Average | of Shares | Average | ||||||||||
Outstanding | Contractual | Exercise | Exercisable | Exercise | ||||||||||
Life (Years) | Price | Price | ||||||||||||
$0.55 — 2.23 | 201,353 | 4.17 | $ | 1.12 | 197,633 | $ | 1.1 | |||||||
5.48 | 516,568 | 7 | 5.48 | 393,218 | 5.48 | |||||||||
5.93 — 10.78 | 330,414 | 8.02 | 9.15 | 154,922 | 8.37 | |||||||||
13.06 — 24.01 | 395,600 | 9.44 | 16.36 | 50,006 | 19.61 | |||||||||
24.60 — 29.96 | 172,949 | 8.93 | 25.58 | 45,599 | 25.08 | |||||||||
1,616,884 | 841,378 | |||||||||||||
Options outstanding at July 31, 2014 have a weighted-average remaining contractual life of 7.7 years and a weighted-average exercise price of $10.50 per share and options exercisable have a weighted-average exercise price of $6.89 per share. As of July 31, 2014 and January 31, 2014, the aggregate intrinsic value of options outstanding was $4.7 million and $19.1 million, respectively. As of July 31, 2014 and January 31, 2014, the aggregate intrinsic value of options exercisable was $4.0 million and $12.6 million, respectively. | ||||||||||||||
We have computed the fair value of all options granted during the three and six months ended July 31, 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 in the three months ended July 31, 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 three and six months ended July 31, 2014 and 2013 using the following weighted-average assumptions: | ||||||||||||||
Three Months Ended July 31, | Six Months Ended July 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Risk-free interest rate | 1.76% | 1.36% – 1.70% | 1.69% – 1.76% | 1.01% – 1.70% | ||||||||||
Expected life | 5.45 years | 5.27 – 6.08 years | 5.45 – 6.02 years | 5.27 – 6.08 years | ||||||||||
Expected dividend yield | — | — | — | — | ||||||||||
Expected volatility | 51.60% | 53.90% | 46.7% – 51.6% | 53.9% – 56.8% | ||||||||||
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 July 31, 2014, we had $4.8 million of unrecognized 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 2.59 years. | ||||||||||||||
Restricted Stock Units | ||||||||||||||
On February 5, 2013, we granted 119,998 RSUs to certain employees under the 2002 Plan. 60,000 RSUs vested in April 2014 and the remaining 59,998 RSUs become fully vested in February 2015. The RSUs that vested in April 2014 were released in June 2014 as the payment of payroll taxes had been satisfied. 50,000 of the RSUs granted on February 5, 2013 were subject to cancellation or forfeiture in satisfaction of certain indemnification obligations under the share purchase agreement entered into in connection with the purchase of Flowdock. In February 2014, the indemnification restrictions were released. | ||||||||||||||
The following table is a summary of RSU activity for the six months ended July 31, 2014: | ||||||||||||||
Number | Weighted-Average | |||||||||||||
of Shares | Grant Date Fair Value | |||||||||||||
Non-vested at February 1, 2014 | 458,982 | $ | 20.88 | |||||||||||
Granted | 194,914 | 14.61 | ||||||||||||
Vested | (112,138 | ) | 17.27 | |||||||||||
Forfeited | (34,795 | ) | 23.86 | |||||||||||
Non-vested at July 31, 2014 | 506,963 | 19.06 | ||||||||||||
Minimum payroll tax withholdings paid to tax authorities on behalf of employees are classified as a financing activity in the statement of cash flows. | ||||||||||||||
Other than the RSUs granted under the 2002 Plan that related to an acquisition, RSUs generally vest in annual or semiannual installments over four years. | ||||||||||||||
Unvested RSUs at July 31, 2014 have a weighted-average remaining contractual life of 1.79 years and a weighted-average grant date fair value of $19.06 per share, which is expected to be recognized over the applicable vesting period. Unrecognized stock-based compensation with respect to all RSUs was $7.7 million as of July 31, 2014 and the cost was expected to be recognized over a weighted-average period of 3.09 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. The restricted stock vested in full on July 19, 2013. The fair value of approximately $0.1 million was recorded as 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. During the three and six months ended July 31, 2014, 177,664 shares were issued under the ESPP for an aggregate purchase price of $1.5 million. Accumulated employee withholdings of $0.4 million at July 31, 2014 associated with the next purchase date on December 15, 2014 were included in other current liabilities. | ||||||||||||||
The following weighted-average assumptions were used to calculate our stock-based compensation for each stock purchase right granted under the ESPP: | ||||||||||||||
Three Months Ended July 31, | Six Months Ended July 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Risk-free interest rate | 0.07% – 0.11% | 0.09% – 0.11% | 0.07% – 0.11% | 0.09% – 0.11% | ||||||||||
Expected life | 0.50 – 1.00 years | 0.67 – 1.17 years | 0.50 – 1.17 years | 0.67 – 1.17 years | ||||||||||
Expected dividend yield | — | — | — | — | ||||||||||
Expected volatility | 67.60% | 45.60% | 45.6% - 67.6% | 45.60% | ||||||||||
As of July 31, 2014, we had $0.9 million of unrecognized 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 | 6 Months Ended | |||||||||||||
Jul. 31, 2014 | ||||||||||||||
Information by Geographic Areas | ' | |||||||||||||
Information by Geographic Areas | ' | |||||||||||||
(10) 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 tables present our revenue by geographic region for the three and six months ended July 31, 2014 and 2013 (in thousands): | ||||||||||||||
Three Months Ended July 31, | Six Months Ended July 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
United States | $ | 18,531 | $ | 16,709 | $ | 35,315 | $ | 30,542 | ||||||
International | 2,981 | 3,086 | 5,628 | 5,303 | ||||||||||
$ | 21,512 | $ | 19,795 | $ | 40,943 | $ | 35,845 | |||||||
Primarily all of our property and equipment is located in the United States. International revenue for the three and six months ended July 31, 2014 is primarily attributable to Australia, Canada, China, the Netherlands and the United Kingdom. |
Income_Taxes
Income Taxes | 6 Months Ended |
Jul. 31, 2014 | |
Income Taxes | ' |
Income Taxes | ' |
(11) Income Taxes | |
Our income tax provision for the three and six months ended July 31, 2014 and 2013 reflects our estimate of the effective tax rates expected to be applicable for the full fiscal years, adjusted for any discrete events that are recorded in the period in which they occur. The estimates are reevaluated each quarter based on our estimated tax expense for the full fiscal year. | |
The tax provision for the three and six months ended July 31, 2014 and 2013 is primarily related to foreign income taxes and is a result of the cost-plus transfer pricing agreements we have in place with our foreign subsidiaries. | |
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 at July 31, 2014 and January 31, 2014. | |
We have not taken any uncertain tax positions. We file federal, state, and foreign income tax returns in jurisdictions with varying statutes of limitations. With few exceptions, tax years 2001 through 2013 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 2013 remain subject to examination. |
Net_Loss_Per_Share
Net Loss Per Share | 6 Months Ended | |||||||||||||
Jul. 31, 2014 | ||||||||||||||
Net Loss Per Share | ' | |||||||||||||
Net Loss Per Share | ' | |||||||||||||
(12) 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 warrants for common stock, outstanding common stock options, outstanding RSUs, restricted common 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. | ||||||||||||||
The following common stock equivalents were excluded from consideration in diluted net loss per share because they had an antidilutive impact: | ||||||||||||||
July 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Options to purchase common stock | 1,616,884 | 1,755,676 | ||||||||||||
Warrants to purchase common stock | 13,252 | 13,728 | ||||||||||||
Restricted stock units | 506,963 | 225,998 | ||||||||||||
ESPP obligations (1) | 319,927 | 76,278 | ||||||||||||
2,457,026 | 2,071,680 | |||||||||||||
(1) ESPP obligations as of July 31, 2014 and 2013 represent an estimate of the number of the shares to be issued to employees when considering employee contributions withheld as of July 31, 2014 and 2013 and an estimate of contributions over the remaining purchase period of the offering. | ||||||||||||||
Basic and diluted net loss per share is calculated as follows (in thousands, except per share data): | ||||||||||||||
Three Months Ended July 31, | Six Months Ended July 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Numerator: | ||||||||||||||
Net loss | $ | (8,907 | ) | $ | (2,278 | ) | $ | (17,387 | ) | $ | (8,068 | ) | ||
Denominator: | ||||||||||||||
Weighted-average shares of common stock outstanding, basic and diluted | 25,026 | 24,014 | 24,923 | 15,109 | ||||||||||
Net loss per share of common stock, basic and diluted | $ | (0.36 | ) | $ | (0.09 | ) | $ | (0.70 | ) | $ | (0.53 | ) |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended | ||||
Jul. 31, 2014 | |||||
Commitments and Contingencies | ' | ||||
Commitments and Contingencies | ' | ||||
(13) Commitments and Contingencies | |||||
(a) Operating leases | |||||
We lease office space and certain equipment under operating leases having terms that expire at various dates through May 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 1, 2015, and extend through May 31, 2025, in each case subject to change based on the construction schedule. The lease term for the current office space has been 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 restricted long-term cash on our balance sheet. 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 occupy additional leased facilities of approximately 22,000 square feet in Denver, Colorado, 10,000 square feet in Raleigh, North Carolina and approximately 5,200 square feet in the Seattle, Washington area. | |||||
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 $0.2 million in rent payments during the term of the sublease, which will offset our rent expense for this facility. | |||||
We also occupy additional leased facilities of less than 5,000 square feet each in London, England; Melbourne, Australia; Sydney, Australia; Helsinki, Finland; Singapore; and Amsterdam, the Netherlands. | |||||
Total rent expense for the three months ended July 31, 2014 and 2013 was $0.8 million and $0.6 million, respectively, and $1.5 million and $1.1 million for the six months ended July 31, 2014 and 2013, respectively. | |||||
As of July 31, 2014, future minimum lease payments under operating leases (assuming a June 1, 2015 commencement date for the amended and restated office lease) were as follows (in thousands): | |||||
Fiscal year ended January 31: | |||||
2015 (remaining six months) | $ | 1,626 | |||
2016 | 4,222 | ||||
2017 | 4,686 | ||||
2018 | 4,547 | ||||
2019 | 4,421 | ||||
Thereafter | 30,449 | ||||
Total minimum lease payments | $ | 49,951 | |||
(b) 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, except for those matters for which we have recorded a loss contingency. 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 July 31, 2014, there were no material pending or threatened legal actions or proceedings against us. | |||||
(c) 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. | |||||
(d) Self-insurance reserves | |||||
We use a combination of insurance and self-insurance plans to provide for the potential liabilities for employee medical health care benefits. 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 $0.3 million at July 31, 2014, which amount was included in accrued liabilities in the accompanying condensed consolidated balance sheets. |
Subsequent_Events
Subsequent Events | 6 Months Ended |
Jul. 31, 2014 | |
Subsequent Events | ' |
Subsequent Events | ' |
(14) Subsequent Events | |
On August 20, 2014, we issued 350,246 RSUs with a grant date fair value of $9.25 per unit. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 6 Months Ended | |||
Jul. 31, 2014 | ||||
Summary of Significant Accounting Policies | ' | |||
Basis of Presentation and Consolidation | ' | |||
(a) Basis of Presentation and Consolidation | ||||
The accompanying unaudited condensed consolidated financial statements and condensed notes have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by generally accepted accounting principles in the United States (GAAP) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for the fair statement have been included. The results of operations for the three and six months ended July 31, 2014 are not necessarily indicative of the results to be expected for the year ending January 31, 2015 or for other interim periods or future years. The condensed consolidated balance sheet as of January 31, 2014 is derived from the audited financial statements as of that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K dated as of, and filed with the Securities and Exchange Commission, or SEC, on April 11, 2014. | ||||
Initial Public Offering and Follow-On Public Offering | ' | |||
(b) Initial Public Offering and Follow-On Public Offering | ||||
On April 17, 2013, we closed our initial public offering (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; capitalization of software development costs; 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. | ||||
Cash and Cash Equivalents | ' | |||
(d) Cash and Cash Equivalents | ||||
We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents consist primarily of investments in a money market mutual fund that invests primarily in short-term United States Treasury Securities, a bank money market account and certificates of deposit. Cash equivalents are carried at cost, which approximates fair value. | ||||
Property and Equipment and Acquired Intangible Assets | ' | |||
(e) 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 | |||
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 | 5 years | |||
Trademark and domain names | 15 years | |||
Deferred Revenue | ' | |||
(f) 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 condensed 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 | ' | |||
(g) 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. Reimbursements received were approximately $0.3 million for each of the three months ended July 31, 2014 and 2013, and approximately $0.5 million for each of the six months ended July 31, 2014 and 2013. | ||||
Commissions | ' | |||
(h) 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 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. | ||||
Stock-Based Compensation | ' | |||
(i) 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 restricted stock units (RSUs) are measured at fair value 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 our 2013 Employee Stock Purchase Plan (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. | ||||
Foreign Currency Translation | ' | |||
(j) Foreign Currency Translation | ||||
The functional currency of our foreign subsidiaries is the local currency. We conduct business in the United Kingdom (UK) 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 condensed consolidated statements of operations. | ||||
Fair Value Measurements | ' | |||
(k) Fair Value Measurements | ||||
In general, asset and liability fair values are determined using the following inputs: | ||||
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. | ||||
We believe that the carrying amounts of our financial instruments, including cash equivalents and restricted cash, approximate their fair value due to the short-term maturities of these instruments. The carrying amount of cash equivalents, which consists of a money market mutual fund, a bank money market account and certificates of deposits, was $74.8 million and $86.3 million as of July 31, 2014 and January 31, 2014, respectively, and approximates fair value based on quoted market prices, which are Level 1 inputs. The carrying amount of restricted cash, which consists of certificates of deposits, approximates fair value based on quoted market prices, which are Level 1 inputs. | ||||
Concentration of Credit Risk and Significant Customers | ' | |||
(l) Concentration of Credit Risk and Significant Customers | ||||
Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. At July 31, 2014, we had $50.0 million in certificates of deposits at various financial institutions, all of which are fully insured by the Federal Deposit Insurance Corporation, and approximately $12.9 million held in a money market mutual fund that invests primarily in short-term United States Treasury securities. Primarily all of the remaining amount of cash and cash equivalents were held in demand deposits, a certificate of deposit or a bank money market account at two financial institutions that we believe to be creditworthy. We perform ongoing evaluations of our customers’ financial condition and do not require any collateral to support receivables. As of July 31, 2014 and January 31, 2014, no customer accounted for more than 10% of accounts receivable. During the three and six months ended July 31, 2014 and 2013, no customer represented more than 10% of revenue. | ||||
Recent Accounting Pronouncements | ' | |||
(m) 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. | ||||
Effective February 1, 2014, the Company adopted Accounting Standards Update (ASU) No. 2013-11, “Presentation of a Liability for an Unrecognized Tax Benefit When a Net Operating Loss or Tax Credit Carryforward Exists.” This accounting update requires that an unrecognized tax benefit be presented as a reduction of a deferred tax asset for a net operating loss (NOL) carryforward or other tax credit carryforward when settlement in this manner is available under applicable tax law. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial position, results of operations or cash flows. | ||||
On May 28, 2014, the Financial Accounting Standards Board (FASB) issued 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 condensed consolidated financial position, results of operations and cash flows. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 6 Months Ended | |||
Jul. 31, 2014 | ||||
Summary of Significant Accounting Policies | ' | |||
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 | 5 years | |||
Trademark and domain names | 15 years |
Goodwill_and_Acquired_Intangib1
Goodwill and Acquired Intangible Assets (Tables) | 6 Months Ended | |||||||
Jul. 31, 2014 | ||||||||
Goodwill and Acquired Intangible Assets | ' | |||||||
Schedule of intangible assets excluding goodwill | ' | |||||||
As of July 31, 2014 and January 31, 2014, intangible assets, excluding goodwill, consist of the following (in thousands): | ||||||||
July 31, | January 31, | |||||||
2014 | 2014 | |||||||
Developed software technology | $ | 2,578 | $ | 2,578 | ||||
Trademark and domain names | 226 | 226 | ||||||
2,804 | 2,804 | |||||||
Less accumulated amortization | (1,158 | ) | (895 | ) | ||||
$ | 1,646 | $ | 1,909 | |||||
Schedule of future estimated amortization expenses related to acquired intangible | ' | |||||||
As of July 31, 2014, future estimated amortization expenses related to acquired intangible assets were as follows (in thousands): | ||||||||
Fiscal year ended January 31: | ||||||||
2015 (remaining six months) | $ | 263 | ||||||
2016 | 457 | |||||||
2017 | 387 | |||||||
2018 | 387 | |||||||
2019 | 15 | |||||||
Thereafter | 137 | |||||||
Total future estimated amortization expense | $ | 1,646 |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 6 Months Ended | |||||||
Jul. 31, 2014 | ||||||||
Property and Equipment | ' | |||||||
Schedule of property and equipment | ' | |||||||
As of July 31, 2014 and January 31, 2014, property and equipment consisted of the following (in thousands): | ||||||||
July 31, | January 31, | |||||||
2014 | 2014 | |||||||
Computers, peripherals and software | $ | 10,306 | $ | 8,935 | ||||
Office furniture and equipment | 1,926 | 1,523 | ||||||
Leasehold improvements | 1,607 | 1,453 | ||||||
13,839 | 11,911 | |||||||
Less accumulated depreciation | (7,509 | ) | (6,342 | ) | ||||
$ | 6,330 | $ | 5,569 |
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 6 Months Ended | |||||||
Jul. 31, 2014 | ||||||||
Accrued Liabilities | ' | |||||||
Schedule of accrued liabilities | ' | |||||||
Accrued liabilities as of July 31, 2014 and January 31, 2014 consisted of the following (in thousands): | ||||||||
July 31, | January 31, | |||||||
2014 | 2014 | |||||||
Accrued vacation and employee benefits | $ | 1,938 | $ | 1,731 | ||||
Accrued bonuses | 674 | 733 | ||||||
Accrued commissions and salary | 793 | 2,348 | ||||||
$ | 3,405 | $ | 4,812 |
Warrants_Tables
Warrants (Tables) | 6 Months Ended | |||||||
Jul. 31, 2014 | ||||||||
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 | July 2015 | May 2014 - June 2018 | October 2015 - June 2018 | |||||
Preferred stock | Warrants | ' | |||||||
Warrants | ' | |||||||
Schedule of assumptions used to calculate fair value of the warrant liability | ' | |||||||
April 17, 2013 | ||||||||
(Close of IPO) | ||||||||
Risk-free interest rate | 0.71% | |||||||
Expected term | Remaining contractual term | |||||||
Expected dividend yield | — | |||||||
Expected volatility | 49.00% | |||||||
Redeemable_Convertible_Preferr1
Redeemable Convertible Preferred Stock (Tables) | 6 Months Ended | ||||||||||||||||
Jul. 31, 2014 | |||||||||||||||||
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 three months ended April 30, 2013 (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, April 30, 2013 | — | $ | — | — | $ | — | — | $ | — | ||||||||
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, April 30, 2013 | — | $ | — | — | $ | — | $ | — |
Stock_Awards_Tables
Stock Awards (Tables) | 6 Months Ended | |||||||||||||
Jul. 31, 2014 | ||||||||||||||
Stock Awards | ' | |||||||||||||
Summary of stock option activity | ' | |||||||||||||
Number | Weighted-Average | |||||||||||||
of Options | Exercise Price | |||||||||||||
Outstanding at February 1, 2014 | 1,517,943 | $ | 9.46 | |||||||||||
Granted | 288,950 | 13.21 | ||||||||||||
Exercised | (133,271 | ) | 3.06 | |||||||||||
Forfeited | (56,738 | ) | 14.08 | |||||||||||
Outstanding at July 31, 2014 | 1,616,884 | 10.5 | ||||||||||||
Summary of information about stock options outstanding and exercisable | ' | |||||||||||||
The following table summarizes information about stock options outstanding and exercisable as of July 31, 2014: | ||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||
Weighted- | ||||||||||||||
Exercise Price | Number | Average | Weighted- | Number | Weighted- | |||||||||
of Shares | Remaining | Average | of Shares | Average | ||||||||||
Outstanding | Contractual | Exercise | Exercisable | Exercise | ||||||||||
Life (Years) | Price | Price | ||||||||||||
$0.55 — 2.23 | 201,353 | 4.17 | $ | 1.12 | 197,633 | $ | 1.1 | |||||||
5.48 | 516,568 | 7 | 5.48 | 393,218 | 5.48 | |||||||||
5.93 — 10.78 | 330,414 | 8.02 | 9.15 | 154,922 | 8.37 | |||||||||
13.06 — 24.01 | 395,600 | 9.44 | 16.36 | 50,006 | 19.61 | |||||||||
24.60 — 29.96 | 172,949 | 8.93 | 25.58 | 45,599 | 25.08 | |||||||||
1,616,884 | 841,378 | |||||||||||||
Schedule of weighted-average assumptions used to compute the fair value of all options granted | ' | |||||||||||||
Three Months Ended July 31, | Six Months Ended July 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Risk-free interest rate | 1.76% | 1.36% – 1.70% | 1.69% – 1.76% | 1.01% – 1.70% | ||||||||||
Expected life | 5.45 years | 5.27 – 6.08 years | 5.45 – 6.02 years | 5.27 – 6.08 years | ||||||||||
Expected dividend yield | — | — | — | — | ||||||||||
Expected volatility | 51.60% | 53.90% | 46.7% – 51.6% | 53.9% – 56.8% | ||||||||||
Summary of RSU activity | ' | |||||||||||||
Number | Weighted-Average | |||||||||||||
of Shares | Grant Date Fair Value | |||||||||||||
Non-vested at February 1, 2014 | 458,982 | $ | 20.88 | |||||||||||
Granted | 194,914 | 14.61 | ||||||||||||
Vested | (112,138 | ) | 17.27 | |||||||||||
Forfeited | (34,795 | ) | 23.86 | |||||||||||
Non-vested at July 31, 2014 | 506,963 | 19.06 | ||||||||||||
Schedule of weighted-average assumptions used to calculate stock-based compensation for each stock purchase right granted | ' | |||||||||||||
Three Months Ended July 31, | Six Months Ended July 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Risk-free interest rate | 0.07% – 0.11% | 0.09% – 0.11% | 0.07% – 0.11% | 0.09% – 0.11% | ||||||||||
Expected life | 0.50 – 1.00 years | 0.67 – 1.17 years | 0.50 – 1.17 years | 0.67 – 1.17 years | ||||||||||
Expected dividend yield | — | — | — | — | ||||||||||
Expected volatility | 67.60% | 45.60% | 45.6% - 67.6% | 45.60% |
Information_by_Geographic_Area1
Information by Geographic Areas (Tables) | 6 Months Ended | |||||||||||||
Jul. 31, 2014 | ||||||||||||||
Information by Geographic Areas | ' | |||||||||||||
Schedule of revenue by geographic region | ' | |||||||||||||
The following tables present our revenue by geographic region for the three and six months ended July 31, 2014 and 2013 (in thousands): | ||||||||||||||
Three Months Ended July 31, | Six Months Ended July 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
United States | $ | 18,531 | $ | 16,709 | $ | 35,315 | $ | 30,542 | ||||||
International | 2,981 | 3,086 | 5,628 | 5,303 | ||||||||||
$ | 21,512 | $ | 19,795 | $ | 40,943 | $ | 35,845 |
Net_Loss_Per_Share_Tables
Net Loss Per Share (Tables) | 6 Months Ended | |||||||||||||
Jul. 31, 2014 | ||||||||||||||
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 | ' | |||||||||||||
July 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Options to purchase common stock | 1,616,884 | 1,755,676 | ||||||||||||
Warrants to purchase common stock | 13,252 | 13,728 | ||||||||||||
Restricted stock units | 506,963 | 225,998 | ||||||||||||
ESPP obligations (1) | 319,927 | 76,278 | ||||||||||||
2,457,026 | 2,071,680 | |||||||||||||
(1) ESPP obligations as of July 31, 2014 and 2013 represent an estimate of the number of the shares to be issued to employees when considering employee contributions withheld as of July 31, 2014 and 2013 and an estimate of contributions over the remaining 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): | ||||||||||||||
Three Months Ended July 31, | Six Months Ended July 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Numerator: | ||||||||||||||
Net loss | $ | (8,907 | ) | $ | (2,278 | ) | $ | (17,387 | ) | $ | (8,068 | ) | ||
Denominator: | ||||||||||||||
Weighted-average shares of common stock outstanding, basic and diluted | 25,026 | 24,014 | 24,923 | 15,109 | ||||||||||
Net loss per share of common stock, basic and diluted | $ | (0.36 | ) | $ | (0.09 | ) | $ | (0.70 | ) | $ | (0.53 | ) |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 6 Months Ended | ||||
Jul. 31, 2014 | |||||
Commitments and Contingencies | ' | ||||
Schedule of future minimum lease payments under operating leases | ' | ||||
As of July 31, 2014, future minimum lease payments under operating leases (assuming a June 1, 2015 commencement date for the amended and restated office lease) were as follows (in thousands): | |||||
Fiscal year ended January 31: | |||||
2015 (remaining six months) | $ | 1,626 | |||
2016 | 4,222 | ||||
2017 | 4,686 | ||||
2018 | 4,547 | ||||
2019 | 4,421 | ||||
Thereafter | 30,449 | ||||
Total minimum lease payments | $ | 49,951 |
Description_and_Nature_of_Busi1
Description and Nature of Business and Operations (Details) | Jul. 31, 2014 |
item | |
Description and Nature of Business and Operations | ' |
Number of subsidiaries | 6 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (Common stock, USD $) | 0 Months Ended | 15 Months Ended | 0 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Apr. 17, 2013 | Apr. 17, 2013 | Apr. 17, 2013 | Jul. 30, 2013 | Jul. 30, 2013 | Jul. 30, 2013 |
IPO | IPO | Follow-on public offering | Follow-on public offering | Selling shareholders | ||
Rally Software | ||||||
Initial Public Offering and Follow-On Public Offering | ' | ' | ' | ' | ' | ' |
Shares issued in public offering (in shares) | ' | 6,900,000 | ' | 5,589,455 | 250,000 | 5,339,455 |
Shares sold pursuant to the underwriters' option to purchase additional shares | ' | 900,000 | ' | 729,058 | ' | ' |
Offering price (in dollars per share) | ' | $14 | $14 | $24.75 | ' | ' |
Shares of common stock issued upon conversion of redeemable convertible preferred stock (in shares) | 14,335,869 | 14,335,869 | ' | ' | ' | ' |
Proceeds from our IPO, net of underwriting discounts and commissions, but before offering expenses | ' | $89.80 | ' | $5.90 | ' | ' |
Offering expenses | ' | ' | $2.90 | $0.60 | ' | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2014 | Jul. 31, 2013 | Jan. 31, 2014 |
item | |||||
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 received | $0.30 | $0.30 | $0.50 | $0.50 | ' |
Stock-Based Compensation | ' | ' | ' | ' | ' |
Offering period over which compensation expense related to shares issued pursuant to the employee stock purchase plan recognized | ' | ' | '1 year | ' | ' |
Initial purchase period within offering period in which compensation expense related to shares issued pursuant to employee stock purchase plan remains unrecognized | ' | ' | '6 months | ' | ' |
Fair Value Measurements | ' | ' | ' | ' | ' |
Carrying amount of cash equivalents | $74.80 | ' | $74.80 | ' | $86.30 |
Developed software and technology | ' | ' | ' | ' | ' |
Property and Equipment and Acquired Intangible Assets | ' | ' | ' | ' | ' |
Estimated useful life of the acquired intangible assets | ' | ' | '5 years | ' | ' |
Trademark and domain names | ' | ' | ' | ' | ' |
Property and Equipment and Acquired Intangible Assets | ' | ' | ' | ' | ' |
Estimated useful life of the acquired intangible assets | ' | ' | '15 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) (Cash and Cash Equivalents, Credit Risk, USD $) | Jul. 31, 2014 |
In Millions, unless otherwise specified | item |
Cash and Cash Equivalents | Credit Risk | ' |
Concentration of Credit Risk and Significant Customers | ' |
Certificates of deposits fully insured by the Federal Deposit Insurance Corporation | $50 |
Security held in a money market mutual fund that invests primarily in short-term United States Treasury securities | $12.90 |
Number of financial institutions where remaining cash and cash equivalents were held in demand deposits or bank money market account | 2 |
Acquisition_Details
Acquisition (Details) (USD $) | Jul. 31, 2014 | Jan. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Feb. 05, 2013 | Jan. 31, 2014 | Apr. 30, 2014 | Apr. 30, 2013 | Jan. 31, 2013 | Feb. 05, 2013 | Feb. 05, 2013 |
Developed software and technology | Trademark and domain names | Flowdock Oy | Flowdock Oy | Flowdock Oy | Flowdock Oy | Flowdock Oy | Flowdock Oy | Flowdock Oy | |||
Developed software and technology | Trademark and domain names | ||||||||||
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 | ' | ' | ' | ' | 4,400,000 | ' | ' | ' | ' | 1,900,000 | 200,000 |
Goodwill | 2,489,000 | 2,529,000 | ' | ' | 2,300,000 | ' | 2,500,000 | ' | ' | ' | ' |
Estimated useful life of the acquired intangible assets | ' | ' | '5 years | '15 years | ' | ' | ' | ' | ' | '5 years | '15 years |
Additional goodwill | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' |
Net deferred tax liability | ' | ' | ' | ' | ' | $300,000 | ' | ' | ' | ' | ' |
Goodwill_and_Acquired_Intangib2
Goodwill and Acquired Intangible Assets (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||||||||
Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2014 | Jul. 31, 2013 | Jan. 31, 2014 | Apr. 30, 2014 | Feb. 05, 2013 | Jul. 31, 2014 | Jan. 31, 2014 | Jul. 31, 2014 | Jan. 31, 2014 | |
item | Flowdock Oy | Flowdock Oy | Developed software and technology | Developed software and technology | Trademark and domain names | Trademark and domain names | |||||
Goodwill and Acquired Intangible Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of reporting unit | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | $2,489,000 | ' | $2,489,000 | ' | $2,529,000 | $2,500,000 | $2,300,000 | ' | ' | ' | ' |
Intangible assets, gross excluding goodwill | 2,804,000 | ' | 2,804,000 | ' | 2,804,000 | ' | ' | 2,578,000 | 2,578,000 | 226,000 | 226,000 |
Less accumulated amortization | -1,158,000 | ' | -1,158,000 | ' | -895,000 | ' | ' | ' | ' | ' | ' |
Intangible assets, net excluding goodwill | 1,646,000 | ' | 1,646,000 | ' | 1,909,000 | ' | ' | ' | ' | ' | ' |
Amortization expense related to acquired intangible assets | 100,000 | 100,000 | 300,000 | 300,000 | ' | ' | ' | ' | ' | ' | ' |
Future estimated amortization expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 (remaining six months) | 263,000 | ' | 263,000 | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 457,000 | ' | 457,000 | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | 387,000 | ' | 387,000 | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | 387,000 | ' | 387,000 | ' | ' | ' | ' | ' | ' | ' | ' |
2019 | 15,000 | ' | 15,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Thereafter | 137,000 | ' | 137,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets, net excluding goodwill | $1,646,000 | ' | $1,646,000 | ' | $1,909,000 | ' | ' | ' | ' | ' | ' |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2014 | Jul. 31, 2013 | Jan. 31, 2014 | |
Property and Equipment and Acquired Intangible Assets | ' | ' | ' | ' | ' |
Property and equipment, gross | $13,839,000 | ' | $13,839,000 | ' | $11,911,000 |
Less accumulated depreciation | -7,509,000 | ' | -7,509,000 | ' | -6,342,000 |
Property and equipment, net | 6,330,000 | ' | 6,330,000 | ' | 5,569,000 |
Depreciation expense | 600,000 | 600,000 | 1,200,000 | 1,000,000 | ' |
Computers, peripherals, and software | ' | ' | ' | ' | ' |
Property and Equipment and Acquired Intangible Assets | ' | ' | ' | ' | ' |
Property and equipment, gross | 10,306,000 | ' | 10,306,000 | ' | 8,935,000 |
Office furniture and equipment | ' | ' | ' | ' | ' |
Property and Equipment and Acquired Intangible Assets | ' | ' | ' | ' | ' |
Property and equipment, gross | 1,926,000 | ' | 1,926,000 | ' | 1,523,000 |
Leasehold improvements | ' | ' | ' | ' | ' |
Property and Equipment and Acquired Intangible Assets | ' | ' | ' | ' | ' |
Property and equipment, gross | $1,607,000 | ' | $1,607,000 | ' | $1,453,000 |
Accrued_Liabilities_Details
Accrued Liabilities (Details) (USD $) | Jul. 31, 2014 | Jan. 31, 2014 |
In Thousands, unless otherwise specified | ||
Accrued Liabilities | ' | ' |
Accrued vacation and employee benefits | $1,938 | $1,731 |
Accrued bonuses | 674 | 733 |
Accrued commissions and salary | 793 | 2,348 |
Accrued liabilities | $3,405 | $4,812 |
Warrants_Details
Warrants (Details) (USD $) | 0 Months Ended | 6 Months Ended | 6 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | ||||||||||
In Millions, except Share data, unless otherwise specified | Apr. 17, 2013 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2013 | Apr. 17, 2013 | Apr. 17, 2013 | Apr. 17, 2013 | Apr. 17, 2013 | Jul. 31, 2014 | Jan. 31, 2014 | Apr. 16, 2013 | Jan. 31, 2014 | Apr. 17, 2013 | Apr. 16, 2013 | Apr. 17, 2013 | Apr. 16, 2013 |
Warrants | Warrants | Warrants | Preferred stock | Preferred stock | Preferred stock | Preferred stock | Preferred stock | Common stock | Common stock | Common stock | Common stock | Common stock | Common stock | Common stock | Common stock | |
Weighted average | Warrants | Warrants | A-1 | B | C | Warrants | Warrants | Warrants | Warrants | Common stock warrants, one | Common stock warrants, one | Common stock warrants, two | Common stock warrants, two | |||
Weighted average | ||||||||||||||||
Warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of warrants outstanding | ' | 13,252 | ' | ' | ' | 32,750 | 40,141 | 64,755 | ' | ' | 2 | ' | ' | 26,000 | ' | 22,400 |
Exercise price (in dollars per share) | ' | ' | $3.79 | ' | ' | $2.50 | $2.82 | $3.78 | $3.79 | ' | ' | $3.13 | ' | $0.65 | ' | $0.00 |
Interest expense recognized for the change in fair value of the warrants | ' | ' | ' | $0.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of the warrants, which was reclassified as a component of additional paid-in capital | ' | ' | ' | ' | $2.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of common stock into which the warrant can be converted | ' | ' | ' | ' | ' | ' | ' | ' | 476 | 123,918 | ' | ' | ' | ' | ' | ' |
Number of warrants exercised | ' | ' | ' | ' | ' | ' | ' | ' | 387 | 107,435 | ' | ' | 24,793 | ' | 22,396 | ' |
Redeemable_Convertible_Preferr2
Redeemable Convertible Preferred Stock (Details) (USD $) | 3 Months Ended | 6 Months Ended | 0 Months Ended | 3 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Apr. 30, 2013 | Jul. 31, 2013 | Apr. 17, 2013 | Apr. 30, 2013 | Apr. 30, 2013 | Apr. 30, 2013 | Apr. 30, 2013 | Apr. 30, 2013 |
Common Stock | Series A-1 redeemable convertible preferred stock | Series B redeemable convertible preferred stock | Series C redeemable convertible preferred stock | Series D redeemable convertible preferred stock | Series E redeemable convertible preferred stock | |||
Redeemable convertible preferred stock | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of common stock into which outstanding shares of redeemable convertible preferred are converted | ' | ' | 14,335,869 | ' | ' | ' | ' | ' |
Shares | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period (in shares) | ' | ' | ' | 3,368,552 | 2,836,586 | 4,350,478 | 2,226,860 | 1,553,393 |
Conversion of preferred stock into common stock | ' | ' | ' | -3,368,552 | -2,836,586 | -4,350,478 | -2,226,860 | -1,553,393 |
Amount | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period | $68,410 | $68,410 | ' | $8,395 | $7,957 | $16,373 | $15,803 | $19,882 |
Conversion of preferred stock into common stock | ($68,410) | ($68,410) | ' | ($8,395) | ($7,957) | ($16,373) | ($15,803) | ($19,882) |
Stock_Awards_Details
Stock Awards (Details) | Jul. 31, 2014 | Jan. 31, 2014 | Jul. 31, 2014 | Jan. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Feb. 02, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Feb. 02, 2014 | Jul. 31, 2014 | Jul. 31, 2014 |
Stock Options | Stock Options | RSUs | RSUs | 2002 Plan | 2002 Plan | 2002 Plan | 2002 Plan | 2013 Plan | 2013 Plan | 2013 Plan | 2013 Plan | 2013 Plan | ESPP | ESPP | ESPP | |
Minimum | Stock Options | RSU awards | Stock Options | RSU awards | RSUs | |||||||||||
Stock awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in the number of authorized and reserved shares of common stock for grant | ' | ' | ' | ' | ' | ' | ' | ' | 1,239,320 | ' | ' | ' | ' | 495,728 | ' | ' |
Number of shares authorized and reserved for issuance | ' | ' | ' | ' | 3,727,891 | ' | ' | ' | ' | 3,586,015 | ' | ' | ' | ' | 965,067 | 965,067 |
Number of shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 52,138 | ' | ' | ' |
Shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 177,664 | 335,993 |
Number of shares issued upon the exercise of options, the issuance of restricted stock awards or the vesting of RSUs | ' | ' | ' | ' | 2,370,250 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares reserved for issuance subject to outstanding options | 1,616,884 | 1,517,943 | ' | ' | ' | ' | 1,032,385 | ' | ' | ' | 584,499 | ' | ' | ' | ' | ' |
Number of shares reserved for issuance subject to outstanding restricted stock unit awards | ' | ' | 506,963 | 458,982 | ' | ' | ' | 59,998 | ' | ' | ' | 446,965 | ' | ' | ' | ' |
Number of shares available for grant included in total shares reserved for issuance | ' | ' | ' | ' | 265,258 | ' | ' | ' | ' | 2,502,413 | ' | ' | ' | ' | 629,074 | 629,074 |
Maximum exercise price as a percentage of fair value of common stock on the date of grant | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% |
Percentage of increase in shares reserved for issuance on February 1 of each fiscal year, starting on February 1, 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | 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 |
Stock_Awards_Details_2
Stock Awards (Details 2) (Stock Options, USD $) | 6 Months Ended | |
In Millions, except Share data, unless otherwise specified | Jul. 31, 2014 | Jul. 31, 2013 |
Stock awards | ' | ' |
Vesting period | '4 years | ' |
Weighted-average fair value on the date of grant (in dollars per share) | $6.11 | $9.71 |
Intrinsic value of stock options exercised | $1.30 | $2.80 |
Number of Shares | ' | ' |
Outstanding at the beginning of the period (in shares) | 1,517,943 | ' |
Granted (in shares) | 288,950 | 409,301 |
Exercised (in shares) | -133,271 | ' |
Forfeited (in shares) | -56,738 | ' |
Outstanding at the end of the period (in shares) | 1,616,884 | ' |
Weighted-Average Exercise Price | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $9.46 | ' |
Granted (in dollars per share) | $13.21 | $18.85 |
Exercised (in dollars per share) | $3.06 | ' |
Forfeited (in dollars per share) | $14.08 | ' |
Outstanding at the end of the period (in dollars per share) | $10.50 | ' |
Maximum | ' | ' |
Stock awards | ' | ' |
Term of the award | '10 years | ' |
First year anniversary | ' | ' |
Stock awards | ' | ' |
Vesting percentage | 25.00% | ' |
Stock_Awards_Details_3
Stock Awards (Details 3) (USD $) | 6 Months Ended | |
In Millions, except Share data, unless otherwise specified | Jul. 31, 2014 | Jan. 31, 2014 |
Options Outstanding | ' | ' |
Number of Shares Outstanding (in shares) | 1,616,884 | ' |
Weighted-Average Remaining Contractual Life | '7 years 8 months 12 days | ' |
Weighted-Average Exercise Price (in dollars per share) | $10.50 | ' |
Options Exercisable | ' | ' |
Number of Shares Exercisable (in shares) | 841,378 | ' |
Weighted-Average Exercise Price (in dollars per share) | $6.89 | ' |
Additional disclosure | ' | ' |
Aggregate intrinsic value of options outstanding | $4.70 | $19.10 |
Aggregate intrinsic value of options exercisable | $4 | $12.60 |
$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) | 201,353 | ' |
Weighted-Average Remaining Contractual Life | '4 years 2 months 1 day | ' |
Weighted-Average Exercise Price (in dollars per share) | $1.12 | ' |
Options Exercisable | ' | ' |
Number of Shares Exercisable (in shares) | 197,633 | ' |
Weighted-Average Exercise Price (in dollars per share) | $1.10 | ' |
5.48 | ' | ' |
Summary of information about stock options outstanding and exercisable | ' | ' |
Exercise price, low end of range (in dollars per share) | $5.48 | ' |
Exercise price, high end of range (in dollars per share) | $5.48 | ' |
Options Outstanding | ' | ' |
Number of Shares Outstanding (in shares) | 516,568 | ' |
Weighted-Average Remaining Contractual Life | '7 years | ' |
Weighted-Average Exercise Price (in dollars per share) | $5.48 | ' |
Options Exercisable | ' | ' |
Number of Shares Exercisable (in shares) | 393,218 | ' |
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) | 330,414 | ' |
Weighted-Average Remaining Contractual Life | '8 years 7 days | ' |
Weighted-Average Exercise Price (in dollars per share) | $9.15 | ' |
Options Exercisable | ' | ' |
Number of Shares Exercisable (in shares) | 154,922 | ' |
Weighted-Average Exercise Price (in dollars per share) | $8.37 | ' |
13.06 - 24.01 | ' | ' |
Summary of information about stock options outstanding and exercisable | ' | ' |
Exercise price, low end of range (in dollars per share) | $13.06 | ' |
Exercise price, high end of range (in dollars per share) | $24.01 | ' |
Options Outstanding | ' | ' |
Number of Shares Outstanding (in shares) | 395,600 | ' |
Weighted-Average Remaining Contractual Life | '9 years 5 months 8 days | ' |
Weighted-Average Exercise Price (in dollars per share) | $16.36 | ' |
Options Exercisable | ' | ' |
Number of Shares Exercisable (in shares) | 50,006 | ' |
Weighted-Average Exercise Price (in dollars per share) | $19.61 | ' |
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) | 172,949 | ' |
Weighted-Average Remaining Contractual Life | '8 years 11 months 5 days | ' |
Weighted-Average Exercise Price (in dollars per share) | $25.58 | ' |
Options Exercisable | ' | ' |
Number of Shares Exercisable (in shares) | 45,599 | ' |
Weighted-Average Exercise Price (in dollars per share) | $25.08 | ' |
Stock_Awards_Details_4
Stock Awards (Details 4) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2014 | Jul. 31, 2013 |
Weighted-average assumptions used to compute the fair value of all options granted | ' | ' | ' | ' |
Excess tax benefit recognized relating to exercised stock options | ' | ' | $0 | ' |
Stock Options | ' | ' | ' | ' |
Weighted-average assumptions used to compute the fair value of all options granted | ' | ' | ' | ' |
Risk-free interest rate, minimum (as a percent) | 1.76% | 1.36% | 1.69% | 1.01% |
Risk-free interest rate, maximum (as a percent) | ' | 1.70% | 1.76% | 1.70% |
Expected life | '5 years 5 months 12 days | ' | ' | ' |
Expected volatility (as a percent) | 51.60% | 53.90% | ' | ' |
Unrecognized compensation costs related to unvested stock options | $4.80 | ' | $4.80 | ' |
Weighted-average period over which unrecognized compensation costs are expected to be recognized | ' | ' | '2 years 7 months 2 days | ' |
Stock Options | Minimum | ' | ' | ' | ' |
Weighted-average assumptions used to compute the fair value of all options granted | ' | ' | ' | ' |
Expected life | ' | '5 years 3 months 7 days | '5 years 5 months 12 days | '5 years 3 months 7 days |
Expected volatility (as a percent) | ' | ' | 46.70% | 53.90% |
Stock Options | Maximum | ' | ' | ' | ' |
Weighted-average assumptions used to compute the fair value of all options granted | ' | ' | ' | ' |
Expected life | ' | '6 years 29 days | '6 years 7 days | '6 years 29 days |
Expected volatility (as a percent) | ' | ' | 51.60% | 56.80% |
Stock_Awards_Details_5
Stock Awards (Details 5) (USD $) | 3 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 0 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2014 | Jul. 31, 2013 | Feb. 05, 2013 | Jul. 31, 2014 | Feb. 05, 2013 | Jul. 31, 2014 | Feb. 05, 2013 | Feb. 05, 2013 | Feb. 05, 2013 | Jul. 31, 2014 | Jul. 31, 2012 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | |
Flowdock Oy | RSUs | 2002 Plan | 2002 Plan | 2002 Plan | 2002 Plan | 2002 Plan | 2002 Plan | 2002 Plan | ESPP | ESPP | 2013 Plan | |||||
RSUs | RSUs | RSUs | RSUs | RSUs | Restricted stock | Restricted stock | Restricted stock | |||||||||
Flowdock Oy | Apr-14 | Feb-15 | Agile Advantage, Inc | |||||||||||||
Restricted Stock Units and Employee Stock Purchase Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
RSUs represent additional indemnification in connection with the purchase of Flowdock Oy | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | ' | ' | 194,914 | 119,998 | ' | ' | 60,000 | 59,998 | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | ' | ' | ' | ' | ' | 458,982 | ' | ' | ' | ' | ' | 59,998 | ' | ' | ' | 446,965 |
Granted (in shares) | ' | ' | ' | ' | ' | 194,914 | 119,998 | ' | ' | 60,000 | 59,998 | ' | ' | ' | ' | ' |
Vested (in shares) | ' | ' | ' | ' | ' | -112,138 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited (in shares) | ' | ' | ' | ' | ' | -34,795 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | ' | ' | ' | ' | ' | 506,963 | ' | ' | ' | ' | ' | 59,998 | ' | ' | ' | 446,965 |
Weighted-Average Grant Date Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | ' | ' | ' | ' | ' | $20.88 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | ' | ' | ' | $14.61 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested (in dollars per share) | ' | ' | ' | ' | ' | $17.27 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited (in dollars per share) | ' | ' | ' | ' | ' | $23.86 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period (in dollars per share) | ' | ' | ' | ' | ' | $19.06 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average remaining contractual life | ' | ' | ' | ' | ' | '1 year 9 months 14 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average grant date fair value (in dollars per share) | ' | ' | ' | ' | ' | $19.06 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized stock-based compensation | ' | ' | ' | ' | ' | $7,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of restricted stock issued | ' | ' | ' | ' | 119,993 | ' | ' | ' | ' | ' | ' | ' | 9,600 | ' | ' | ' |
Fair value of shares of restricted stock issued and recorded as compensation expense | 1,343,000 | 1,050,000 | 2,899,000 | 1,634,000 | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' |
Period over which fair value of shares of restricted stock issued will be recorded as compensation expense | ' | ' | ' | ' | ' | '3 years 1 month 2 days | ' | ' | ' | ' | ' | ' | '12 months | ' | '8 months 12 days | ' |
Exercise price as a percentage of the fair value of common stock on the date of grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | ' |
Shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 177,664 | 335,993 | ' |
Aggregate purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | 1,500,000 | ' |
Accumulated employee withholdings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $400,000 | $400,000 | ' |
Stock_Awards_Details_6
Stock Awards (Details 6) (ESPP, USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2014 | Jul. 31, 2013 |
Weighted-average assumptions were used to calculate our stock-based compensation for each stock purchase right granted | ' | ' | ' | ' |
Expected volatility (as a percent) | 67.60% | 45.60% | ' | 45.60% |
Unrecognized compensation costs | $0.90 | ' | $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% | 0.07% | 0.09% |
Expected life | '6 months | '8 months 1 day | '6 months | '8 months 1 day |
Expected volatility (as a percent) | ' | ' | 45.60% | ' |
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) | 0.11% | 0.11% | 0.11% | 0.11% |
Expected life | '1 year | '1 year 2 months 1 day | '1 year 2 months 1 day | '1 year 2 months 1 day |
Expected volatility (as a percent) | ' | ' | 67.60% | ' |
Information_by_Geographic_Area2
Information by Geographic Areas (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2014 | Jul. 31, 2013 |
Revenue by geographic region | ' | ' | ' | ' |
Total revenue | $21,512 | $19,795 | $40,943 | $35,845 |
United States | ' | ' | ' | ' |
Revenue by geographic region | ' | ' | ' | ' |
Total revenue | 18,531 | 16,709 | 35,315 | 30,542 |
International | ' | ' | ' | ' |
Revenue by geographic region | ' | ' | ' | ' |
Total revenue | $2,981 | $3,086 | $5,628 | $5,303 |
Net_Loss_Per_Share_Details
Net Loss Per Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2014 | Jul. 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) | ' | ' | 2,457,026 | 2,071,680 |
Numerator: | ' | ' | ' | ' |
Net loss | ($8,907) | ($2,278) | ($17,387) | ($8,068) |
Denominator: | ' | ' | ' | ' |
Weighted-average shares of common stock outstanding, basic and diluted | 25,026,000 | 24,014,000 | 24,923,000 | 15,109,000 |
Net loss per common share, basic and diluted (in dollars per share) | ($0.36) | ($0.09) | ($0.70) | ($0.53) |
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) | ' | ' | 1,616,884 | 1,755,676 |
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 |
RSUs | ' | ' | ' | ' |
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) | ' | ' | 506,963 | 225,998 |
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) | ' | ' | 319,927 | 76,278 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | Jul. 31, 2014 | Jan. 31, 2014 | 31-May-14 | Jun. 10, 2013 | Sep. 30, 2013 | Jul. 31, 2014 | Jul. 31, 2014 | 31-May-14 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 |
Forecast | Boulder, Colorado | Boulder, Colorado | Boulder, Colorado | Denver, Colorado | Denver, Colorado | Raleigh, North Carolina | Seattle, Washington | London, England | Melbourne, Australia | Sydney, Australia | Helsinki, Finland | Singapore | Amsterdam, the Netherlands | |||
sqft | item | sqft | sqft | sqft | sqft | Less than | Less than | Less than | Less than | Less than | Less than | |||||
sqft | sqft | sqft | sqft | sqft | sqft | |||||||||||
Operating leases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Space under lease (in square feet) | ' | ' | ' | 89,000 | ' | ' | 22,000 | 5,000 | 10,000 | 5,200 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 |
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 | $4,200,000 | ' | ' | $4,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rental revenue | ' | ' | $200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2014 | Jul. 31, 2013 | |
Operating leases | ' | ' | ' | ' |
Rent expense | $800,000 | $600,000 | $1,500,000 | $1,100,000 |
Future minimum lease payments under operating leases | ' | ' | ' | ' |
2015 (remaining six months) | 1,626,000 | ' | 1,626,000 | ' |
2016 | 4,222,000 | ' | 4,222,000 | ' |
2017 | 4,686,000 | ' | 4,686,000 | ' |
2018 | 4,547,000 | ' | 4,547,000 | ' |
2019 | 4,421,000 | ' | 4,421,000 | ' |
Thereafter | 30,449,000 | ' | 30,449,000 | ' |
Total minimum lease payments | 49,951,000 | ' | 49,951,000 | ' |
Self-insurance reserves | ' | ' | ' | ' |
Self insurance liabilities | $300,000 | ' | $300,000 | ' |
Subsequent_Events_Details
Subsequent Events (Details) (RSUs, USD $) | 6 Months Ended | 0 Months Ended |
Jul. 31, 2014 | Aug. 20, 2014 | |
Subsequent event | ||
Subsequent Event | ' | ' |
Award issued (in shares) | 194,914 | 350,246 |
Grant date fair value of awards issued (in dollars per share) | $14.61 | $9.25 |