Document and Entity Information
Document and Entity Information - shares shares in Millions | 3 Months Ended | |
Apr. 30, 2017 | May 31, 2017 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Workday, Inc. | |
Entity Central Index Key | 1,327,811 | |
Current Fiscal Year End Date | --01-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Apr. 30, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Trading Symbol | WDAY | |
Entity Common Stock, Shares Outstanding | 207 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 30, 2017 | Jan. 31, 2017 | [1] |
Current assets: | |||
Cash and cash equivalents | $ 498,931 | $ 539,923 | |
Marketable securities | 1,616,770 | 1,456,822 | |
Trade and other receivables, net | 297,894 | 409,780 | |
Deferred costs | 51,819 | 51,330 | |
Prepaid expenses and other current assets | 68,406 | 66,590 | |
Total current assets | 2,533,820 | 2,524,445 | |
Property and equipment, net | 404,102 | 365,877 | |
Deferred costs, noncurrent | 114,504 | 117,249 | |
Acquisition-related intangible assets, net | 43,915 | 48,787 | |
Goodwill | 158,193 | 158,354 | |
Other assets | 54,207 | 53,570 | |
Total assets | 3,308,741 | 3,268,282 | |
Current liabilities: | |||
Accounts payable | 28,182 | 26,824 | |
Accrued expenses and other current liabilities | 71,161 | 61,582 | |
Accrued compensation | 110,227 | 110,625 | |
Unearned revenue | 1,079,874 | 1,086,212 | |
Total current liabilities | 1,289,444 | 1,285,243 | |
Convertible senior notes, net | 541,393 | 534,423 | |
Unearned revenue, noncurrent | 120,389 | 135,331 | |
Other liabilities | 36,658 | 36,677 | |
Total liabilities | 1,987,884 | 1,991,674 | |
Stockholders’ equity: | |||
Common stock | 205 | 202 | |
Additional paid-in capital | 2,791,520 | 2,681,200 | |
Accumulated other comprehensive income (loss) | (190) | 2,071 | |
Accumulated deficit | (1,470,678) | (1,406,865) | |
Total stockholders’ equity | 1,320,857 | 1,276,608 | |
Total liabilities and stockholders’ equity | $ 3,308,741 | $ 3,268,282 | |
[1] | See Note 2 for a summary of adjustments. |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |||
Apr. 30, 2017 | Apr. 30, 2016 | [1] | ||
Revenues: | ||||
Subscription services | $ 399,736 | $ 280,168 | ||
Professional services | 80,125 | 67,509 | ||
Total revenues | 479,861 | 347,677 | ||
Costs and expenses: | ||||
Costs of subscription services | [2] | 59,798 | 49,200 | |
Costs of professional services | [2] | 76,913 | 59,427 | |
Product development | [2] | 196,439 | 141,778 | |
Sales and marketing | [2] | 155,709 | 127,619 | |
General and administrative | [2] | 51,202 | 41,183 | |
Total costs and expenses | [2] | 540,061 | 419,207 | |
Operating loss | (60,200) | (71,530) | ||
Other expense, net | (1,663) | (5,838) | ||
Loss before provision for income taxes | (61,863) | (77,368) | ||
Provision for income taxes | 2,181 | 1,135 | ||
Net loss | $ (64,044) | $ (78,503) | ||
Net loss per share, basic and diluted (in dollars per share) | $ (0.31) | $ (0.40) | ||
Weighted-average shares used to compute net loss per share, basic and diluted (in shares) | 203,818 | 194,529 | ||
[1] | See Note 2 for a summary of adjustments. | |||
[2] | Costs and expenses include share-based compensation expense as follows: Costs of subscription services $5,691 $4,397 Costs of professional services $8,021 $5,293 Product development $51,029 $32,968 Sales and marketing $23,159 $19,002 General and administrative $19,888 $16,575 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Costs of subscription services | ||
Allocated share-based compensation expense | $ 5,691 | $ 4,397 |
Costs of professional services | ||
Allocated share-based compensation expense | 8,021 | 5,293 |
Product development | ||
Allocated share-based compensation expense | 51,029 | 32,968 |
Sales and marketing | ||
Allocated share-based compensation expense | 23,159 | 19,002 |
General and administrative | ||
Allocated share-based compensation expense | $ 19,888 | $ 16,575 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | [1] | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (64,044) | $ (78,503) | |
Other comprehensive loss, net of tax: | |||
Net change in foreign currency translation adjustment | (277) | 681 | |
Net change in unrealized gains (losses) on available-for-sale investments | (775) | 552 | |
Net change in market value of effective foreign currency forward exchange contracts | (1,209) | (11,064) | |
Other comprehensive loss, net of tax | (2,261) | (9,831) | |
Comprehensive loss | $ (66,305) | $ (88,334) | |
[1] | See Note 2 for a summary of adjustments. |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | ||
Cash flows from operating activities | |||
Net loss | $ (64,044) | $ (78,503) | [1] |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 33,377 | 26,124 | [1] |
Share-based compensation expenses | 107,788 | 78,235 | [1] |
Amortization of deferred costs | 13,637 | 10,439 | [1] |
Amortization of debt discount and issuance costs | 6,950 | 6,599 | [1] |
Other | 2,678 | (318) | [1] |
Changes in operating assets and liabilities: | |||
Trade and other receivables, net | 111,815 | 98,319 | [1] |
Deferred costs | (11,381) | (9,226) | [1] |
Prepaid expenses and other assets | (3,050) | 2,388 | [1] |
Accounts payable | (565) | (1,722) | [1] |
Accrued expenses and other liabilities | 4,089 | 5,545 | [1] |
Unearned revenue | (21,272) | 24,937 | [1] |
Net cash provided by (used in) operating activities | 180,022 | 162,817 | [1] |
Cash flows from investing activities | |||
Purchases of marketable securities | (613,251) | (633,956) | [1] |
Maturities of marketable securities | 441,870 | 625,588 | [1] |
Sales of available-for-sale securities | 9,074 | 200 | [1] |
Owned real estate projects | (29,539) | (18,986) | [1] |
Capital expenditures, excluding owned real estate projects | (30,593) | (34,478) | [1] |
Purchases of cost method investments | (450) | (100) | [1] |
Other | 0 | 388 | [1] |
Net cash provided by (used in) investing activities | (222,889) | (61,344) | [1] |
Cash flows from financing activities | |||
Proceeds from issuance of common stock from employee equity plans | 2,253 | 3,381 | [1] |
Other | (44) | 376 | [1] |
Net cash provided by (used in) financing activities | 2,209 | 3,757 | [1] |
Effect of exchange rate changes | (132) | 638 | [1] |
Net increase (decrease) in cash, cash equivalents and restricted cash | (40,790) | 105,868 | [1] |
Cash, cash equivalents and restricted cash at the beginning of period | 541,894 | 300,087 | |
Cash, cash equivalents and restricted cash at the end of period | 501,104 | 405,955 | [1] |
Supplemental cash flow data | |||
Cash paid for interest | 0 | 4 | [1] |
Cash paid for income taxes | 1,346 | 581 | [1] |
Non-cash investing and financing activities: | |||
Vesting of early exercise stock options | 282 | 460 | [1] |
Property and equipment, accrued but not paid | 32,515 | 21,507 | [1] |
Non-cash additions to property and equipment | $ 142 | $ 521 | [1] |
[1] | See Note 2 for a summary of adjustments. |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Reconciliation) - USD ($) $ in Thousands | Apr. 30, 2017 | Apr. 30, 2016 | [1] |
Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets | |||
Cash and cash equivalents | $ 498,931 | $ 404,604 | |
Restricted cash included in Prepaid expenses and other current assets | 2,173 | 1,351 | |
Total cash, cash equivalents and restricted cash | $ 501,104 | $ 405,955 | |
[1] | See Note 2 for a summary of adjustments. |
Overview and Basis of Presentat
Overview and Basis of Presentation | 3 Months Ended |
Apr. 30, 2017 | |
Accounting Policies [Abstract] | |
Overview and Basis of Presentation | Overview and Basis of Presentation Company and Background Workday provides financial management, human capital management, and analytics applications designed for the world's largest companies, educational institutions, and government agencies. We offer innovative and adaptable technology focused on the consumer internet experience and cloud delivery model. Our applications are designed for global enterprises to manage complex and dynamic operating environments. We provide our customers highly adaptable, accessible and reliable applications to manage critical business functions that enable them to optimize their financial and human capital resources. We were originally incorporated in March 2005 in Nevada and in June 2012, we reincorporated in Delaware. As used in this report, the terms "Workday," "registrant," "we," "us," and "our" mean Workday, Inc. and its subsidiaries unless the context indicates otherwise. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("GAAP") and applicable rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. The condensed consolidated financial statements include the results of Workday, Inc. and its wholly-owned subsidiaries. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of our management, the information contained herein reflects all adjustments necessary for a fair presentation of Workday’s results of operations, financial position and cash flows. All such adjustments are of a normal, recurring nature. The results of operations for the quarter ended April 30, 2017 shown in this report are not necessarily indicative of results to be expected for the full year ending January 31, 2018 . The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements in our Annual Report on Form 10-K for the year ended January 31, 2017 , filed with the SEC on March 20, 2017. Effective February 1, 2017, we adopted the requirements of Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers and ASU No. 2016-18, Statement of Cash Flows, Restricted C ash as discussed in Note 2. All amounts and disclosures set forth in this Form 10-Q have been updated to comply with the new standards, as indicated by the "as adjusted" footnote. Certain prior period amounts reported in our condensed consolidated financial statements and notes thereto have been reclassified to conform to current period presentation. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires us to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. These estimates include, but are not limited to, the determination of the period of benefit for deferred commissions, certain assumptions used in the valuation of equity awards, and the fair value of assets acquired and liabilities assumed through business combinations. Actual results could differ from those estimates and such differences could be material to our condensed consolidated financial position and results of operations. Segment Information We operate in one operating segment, cloud applications. Operating segments are defined as components of an enterprise where separate financial information is evaluated regularly by the chief operating decision maker, who is our chief executive officer, in deciding how to allocate resources and assessing performance. Our chief operating decision maker allocates resources and assesses performance based upon discrete financial information at the consolidated level. |
Accounting Standards and Signif
Accounting Standards and Significant Accounting Policies | 3 Months Ended |
Apr. 30, 2017 | |
Accounting Policies [Abstract] | |
Accounting Standards and Significant Accounting Policies | Significant Accounting Policies Recently Adopted Accounting Pronouncements ASU No. 2014-09 In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU No. 2014-09, Revenue from Contracts with Customers ("Topic 606") . Topic 606 supersedes the revenue recognition requirements in Accounting Standards Codification ("ASC") Topic 605, Revenue Recognition ("Topic 605"), and requires the recognition of revenue when promised goods or services are transferred to customers in an amount that reflects the considerations to which the entity expects to be entitled to in exchange for those goods or services. Topic 606 also includes Subtopic 340-40, Other Assets and Deferred Costs - Contracts with Customers, which requires the deferral of incremental costs of obtaining a contract with a customer. Collectively, we refer to Topic 606 and Subtopic 340-40 as the "new standard." We early adopted the requirements of the new standard as of February 1, 2017, utilizing the full retrospective method of transition. Adoption of the new standard resulted in changes to our accounting policies for revenue recognition, trade and other receivables, and deferred commissions as detailed below. We applied the new standard using a practical expedient where the consideration allocated to the remaining performance obligations or an explanation of when we expect to recognize that amount as revenue for all reporting periods presented before the date of the initial application is not disclosed. The impact of adopting the new standard on our fiscal 2017 and fiscal 2016 revenues is not material. The primary impact of adopting the new standard relates to the deferral of incremental commission costs of obtaining subscription contracts. Under Topic 605, we deferred only direct and incremental commission costs to obtain a contract and amortized those costs over the term of the related subscription contract, which was generally between three and five years. Under the new standard, we defer all incremental commission costs to obtain the contract. We amortize these costs over a period of benefit that we have determined to be five years. ASU No. 2016-09 In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718), which simplifies the accounting for share-based payment transactions, including accounting for income taxes, forfeitures, and classification in the statement of cash flows. As of February 1, 2017, we adopted the applicable provisions of ASU No. 2016-09 as follows: • The guidance requires excess tax benefits and tax deficiencies to be recorded as income tax benefit or expense in the statement of operations when the awards vest or are settled, and eliminates the requirement to reclassify cash flows related to excess tax benefits from operating activities to financing activities on the statement of cash flows. We adopted the guidance prospectively effective February 1, 2017. Amounts previously recorded to Additional paid-in capital related to windfall tax benefits prior to February 1, 2017 remain in Stockholders' equity. • The guidance eliminates the requirement that excess tax benefits must be realized (through a reduction in income taxes payable) before companies can recognize them. We have applied the modified retrospective transition method upon adoption. The previously unrecognized excess tax effects were recorded as a deferred tax asset in the amount of $448.0 million , of which $447.8 million was fully offset by a valuation allowance, and the remaining $0.2 million resulted in a cumulative-effect adjustment to Accumulated deficit as of February 1, 2017. ASU No. 2016-18 In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows, Restricted Cash (Topic 230) , which requires that a statement of cash flows explain the change during the period for the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The guidance is effective for our fiscal year beginning February 1, 2018. We early adopted ASU No. 2016-18 retrospectively, effective February 1, 2017. As a result of including restricted cash with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts presented on the condensed consolidated statement of cash flows, net cash flows for the three months ended April 30, 2016 increased by $1 million . We adjusted our condensed consolidated financial statements from amounts previously reported due to the adoption of ASU No. 2014-09 and ASU No. 2016-18. Select condensed consolidated balance sheet line items, which reflect the adoption of the new ASU's are as follows (in thousands): January 31, 2017 As previously reported Adjustments As adjusted Assets Trade and other receivables, net $ 383,908 $ 25,872 a $ 409,780 Prepaid expenses and other current assets 88,336 (21,746 ) a 66,590 Deferred costs 27,537 23,793 a 51,330 Deferred costs, noncurrent 43,310 73,939 a 117,249 Liabilities Unearned revenue $ 1,097,417 $ (11,205 ) a $ 1,086,212 Unearned revenue, noncurrent 135,970 (639 ) a 135,331 Select unaudited condensed consolidated statement of operations line items, which reflect the adoption of the new ASUs are as follows (in thousands): Three months ended April 30, 2016 As previously reported Adjustments As adjusted Revenues: Subscription services $ 280,003 $ 165 a $ 280,168 Professional services 65,427 2,082 a 67,509 Total revenues 345,430 2,247 a 347,677 Costs and expenses: Sales and marketing 127,491 128 a 127,619 Operating loss (73,649 ) 2,119 a (71,530 ) Net loss $ (80,622 ) $ 2,119 a $ (78,503 ) Net loss per share, basic and diluted $ (0.41 ) $ 0.01 a $ (0.40 ) Select unaudited condensed consolidated statement of cash flows line items, which reflect the adoption of the new ASUs are as follows (in thousands): Three months ended April 30, 2016 As previously reported Adjustments As adjusted Cash flows from operating activities Net loss $ (80,622 ) $ 2,119 a $ (78,503 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Amortization of deferred costs 5,873 4,566 a 10,439 Changes in operating assets and liabilities: Trade and other receivables, net 101,047 (2,728 ) a 98,319 Deferred costs (4,788 ) (4,438 ) a (9,226 ) Prepaid expenses and other assets (776 ) 3,164 a, b 2,388 Unearned revenue 26,269 (1,332 ) a 24,937 Net cash provided by (used in) operating activities 161,466 1,351 b 162,817 Net increase (decrease) in cash and cash equivalents 104,517 1,351 b 105,868 Cash, cash equivalents and restricted cash at the end of period $ 404,604 $ 1,351 b $ 405,955 a Adjusted to reflect the adoption of ASU No. 2014-09, Revenue from Contracts with Customers. b Adjusted to reflect the adoption of ASU No. 2016-18, Statement of Cash Flows, Restricted Cash. Summary of Significant Accounting Policies Except for the accounting policies for revenue recognition, trade and other receivables, and deferred commissions that were updated as a result of adopting ASU No. 2014-09, there have been no changes to our significant accounting policies described in the Annual Report on Form 10-K for the year ended January 31, 2017 , filed with the SEC on March 20, 2017, that have had a material impact on our condensed consolidated financial statements and related notes. Revenue Recognition We derive our revenues primarily from subscription services and professional services. Revenues are recognized when control of these services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those services. We determine revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, we satisfy a performance obligation Subscription Services Revenues Subscription services revenues primarily consist of fees that provide customers access to one or more of our cloud applications for finance, human resources, and analytics, with routine customer support. Revenue is generally recognized over time on a ratable basis over the contract term beginning on the date that our service is made available to the customer. Our subscription contracts are generally three years or longer in length, billed annually in advance, and non-cancelable. Professional Services Revenues Professional services revenues primarily consist of fees for deployment and optimization services, as well as training. The majority of our consulting contracts are billed on a time and materials basis and revenue is recognized over time as the services are performed. For contracts billed on a fixed price basis, revenue is recognized over time based on the proportion performed. Contracts with Multiple Performance Obligations Some of our contracts with customers contain multiple performance obligations. For these contracts, we account for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. We determine the standalone selling prices based on our overall pricing objectives, taking into consideration market conditions and other factors, including the value of our contracts, the cloud applications sold, customer demographics, geographic locations, and the number and types of users within our contracts. Trade and Other Receivables Trade and other receivables are primarily comprised of trade receivables that are recorded at the invoice amount, net of an allowance for doubtful accounts, which is not material. Other receivables represent unbilled receivables related to subscription and professional services contracts. Deferred Commissions Sales commissions earned by our sales force are considered incremental and recoverable costs of obtaining a contract with a customer. These costs are deferred and then amortized over a period of benefit that we have determined to be five years. We determined the period of benefit by taking into consideration our customer contracts, our technology and other factors. Amortization expense is included in Sales and marketing expenses in the accompanying condensed consolidated statements of operations. Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which requires the recognition of lease assets and lease liabilities on the balance sheet by lessees for those leases currently classified as operating leases under ASC Topic 840 Leases. The guidance is effective for our fiscal year beginning February 1, 2019. Early adoption is permitted. We are evaluating the accounting, transition and disclosure requirements of the standard and cannot currently estimate the financial statement impact of adoption. In October 2016, the FASB issued ASU No. 2016-16, Intra-Entity Transfers of Assets Other Than Inventory (Topic 740) , which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Prior to the issuance of this ASU, existing guidance prohibited the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset had been sold to an outside party. The guidance is effective for our fiscal year beginning February 1, 2018. Early adoption is permitted. We are evaluating the accounting, transition and disclosure requirements of the standard and cannot currently estimate the financial statement impact of adoption. |
Marketable Securities
Marketable Securities | 3 Months Ended |
Apr. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | Marketable Securities At April 30, 2017 , marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value U.S. agency obligations $ 1,022,208 $ 22 $ (1,067 ) $ 1,021,163 U.S. treasury securities 254,523 2 (103 ) 254,422 Corporate bonds 320,798 18 (367 ) 320,449 Commercial paper 362,364 — — 362,364 Money market funds 57,308 — — 57,308 $ 2,017,201 $ 42 $ (1,537 ) $ 2,015,706 Included in cash and cash equivalents $ 398,936 $ — $ — $ 398,936 Included in marketable securities $ 1,618,265 $ 42 $ (1,537 ) $ 1,616,770 At January 31, 2017 , marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value U.S. agency obligations $ 908,874 $ 179 $ (535 ) $ 908,518 U.S. treasury securities 192,028 48 (25 ) 192,051 Corporate bonds 290,272 42 (429 ) 289,885 Commercial paper 323,106 — — 323,106 Money market funds 24,425 — — 24,425 $ 1,738,705 $ 269 $ (989 ) $ 1,737,985 Included in cash and cash equivalents $ 281,163 $ — $ — $ 281,163 Included in marketable securities $ 1,457,542 $ 269 $ (989 ) $ 1,456,822 We do not believe the unrealized losses represent other-than-temporary impairments based on our evaluation of available evidence, which includes our intent to hold these investments to maturity as of April 30, 2017 . No marketable securities held as of April 30, 2017 have been in a continuous unrealized loss position for more than 12 months. We classify our marketable securities as available-for-sale at the time of purchase and reevaluate such classification as of each balance sheet date. We consider all marketable securities as available for use in current operations, including those with maturity dates beyond one year, and therefore classify these securities as current assets in the accompanying condensed consolidated balance sheets. Marketable securities on the condensed consolidated balance sheets consist of securities with original maturities at the time of purchase greater than three months and the remainder of the securities are reflected in cash and cash equivalents. During the three months ended April 30, 2017 and 2016 , we sold $9 million and $0.2 million , respectively, of our marketable securities and the realized gains from the sales are immaterial. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We measure our financial assets and liabilities at fair value at each reporting period using a fair value hierarchy that requires that we maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 — Other inputs that are directly or indirectly observable in the marketplace. Level 3 — Unobservable inputs that are supported by little or no market activity. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents information about our assets and liabilities that are measured at fair value on a recurring basis and their assigned levels within the valuation hierarchy as of April 30, 2017 (in thousands): Description Level 1 Level 2 Level 3 Total U.S. agency obligations $ — $ 1,021,163 $ — $ 1,021,163 U.S. treasury securities 254,422 — — 254,422 Corporate bonds — 320,449 — 320,449 Commercial paper — 362,364 — 362,364 Money market funds 57,308 — — 57,308 Foreign currency derivative assets — 6,934 — 6,934 Total assets $ 311,730 $ 1,710,910 $ — $ 2,022,640 Foreign currency derivative liabilities $ — $ 4,229 $ — $ 4,229 Total liabilities $ — $ 4,229 $ — $ 4,229 The following table presents information about our assets and liabilities that are measured at fair value on a recurring basis and their assigned levels within the valuation hierarchy as of January 31, 2017 (in thousands): Description Level 1 Level 2 Level 3 Total U.S. agency obligations $ — $ 908,518 $ — $ 908,518 U.S. treasury securities 192,051 — — 192,051 Corporate bonds — 289,885 — 289,885 Commercial paper — 323,106 — 323,106 Money market funds 24,425 — — 24,425 Foreign currency derivative assets — 7,909 — 7,909 Total assets $ 216,476 $ 1,529,418 $ — $ 1,745,894 Foreign currency derivative liabilities $ — $ 2,127 $ — $ 2,127 Total liabilities $ — $ 2,127 $ — $ 2,127 Fair Value Measurements of Other Financial Instruments The following table presents the carrying amounts and estimated fair values of our financial instruments that are not recorded at fair value in the condensed consolidated balance sheets (in thousands): April 30, 2017 January 31, 2017 Net Carrying Amount Before Unamortized Debt Issuance Costs Estimated Fair Value Net Carrying Amount Before Unamortized Debt Issuance Costs Estimated Fair Value 0.75% Convertible senior notes $ 329,664 $ 407,313 $ 325,620 $ 402,259 1.50% Convertible senior notes 215,586 311,480 213,180 310,470 The difference between the principal amount of the notes, $350 million for the 0.75% convertible senior notes and $250 million for the 1.50% convertible senior notes, and the net carrying amount before unamortized debt issuance costs represents the unamortized debt discount (see Note 10). The estimated fair value of the convertible senior notes, which we have classified as Level 2 financial instruments, was determined based on the quoted bid price of the convertible senior notes in an over-the-counter market on the last trading day of each reporting period. Based on the closing price of our common stock of $87.40 on April 30, 2017 , the if-converted value of the 0.75% convertible senior notes and the if-converted value of the 1.50% convertible senior notes were greater than their respective principal amounts. |
Deferred Costs
Deferred Costs | 3 Months Ended |
Apr. 30, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Deferred Costs | Deferred Costs Deferred costs, which primarily consist of deferred sales commissions, were $166 million and $169 million as of April 30, 2017 and January 31, 2017 , respectively. For the three months ended April 30, 2017 and 2016 , amortization expense for the deferred costs was $14 million and $10 million , respectively, and there was no impairment loss in relation to the costs capitalized. |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Apr. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): April 30, 2017 January 31, 2017 Land $ 6,592 $ 6,592 Buildings 144,657 115,302 Computers, equipment and software 344,875 323,311 Computers, equipment and software acquired under capital leases 16,830 18,298 Furniture and fixtures 26,552 24,462 Leasehold improvements 113,320 108,673 Property and equipment, gross (1) 652,826 596,638 Less accumulated depreciation and amortization (248,724 ) (230,761 ) Property and equipment, net $ 404,102 $ 365,877 (1) Property and equipment, gross includes construction-in-progress for owned real estate projects of $120 million and $115 million that has not yet been placed in service as of April 30, 2017 and January 31, 2017 , respectively. Depreciation expense totaled $27 million and $22 million for the three months ended April 30, 2017 and 2016 , respectively. |
Acquisition-related Intangible
Acquisition-related Intangible Assets, Net | 3 Months Ended |
Apr. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Acquisition-related Intangible Assets, Net | Acquisition-related Intangible Assets, Net Acquisition-related intangible assets, net consisted of the following (in thousands): April 30, 2017 January 31, 2017 Acquired developed technology $ 64,900 $ 64,900 Customer relationship assets 1,000 1,000 65,900 65,900 Less accumulated amortization (21,985 ) (17,113 ) Acquisition-related intangible assets, net $ 43,915 $ 48,787 Amortization expense related to acquired developed technology and customer relationship assets was $5 million and $1 million for the three months ended April 30, 2017 and 2016 , respectively. As of April 30, 2017 , our future estimated amortization expense related to acquired developed technology and customer relationship assets is as follows (in thousands): Fiscal Period: 2018 $ 14,414 2019 18,904 2020 10,281 2021 316 Total $ 43,915 |
Other Assets
Other Assets | 3 Months Ended |
Apr. 30, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets Other assets consisted of the following (in thousands): April 30, 2017 January 31, 2017 Cost method investments $ 14,454 $ 14,004 Acquired land leasehold interest, net 9,649 9,676 Deposits 4,024 3,488 Net deferred tax assets 3,784 4,336 Other 22,296 22,066 Total $ 54,207 $ 53,570 Our cost method investments include investments in private companies in which we do not have the ability to exert significant influence. The investments are tested for impairment at least annually, and more frequently upon the occurrence of certain events. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Apr. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Derivative Financial Instruments We conduct business on a global basis in multiple foreign currencies, subjecting Workday to foreign currency risk. To mitigate this risk, we utilize hedging contracts as described below. We do not enter into any derivatives for trading or speculative purposes. Our foreign currency contracts are classified within Level 2 of the fair value hierarchy because the valuation inputs are based on quoted prices and market observable data of similar instruments in active markets, such as currency spot and forward rates. Cash Flow Hedges We are exposed to foreign currency fluctuations resulting from customer contracts denominated in foreign currencies. We have a hedging program in which we enter into foreign currency forward contracts related to certain customer contracts. We designate these forward contracts as cash flow hedging instruments as the accounting criteria for such designation have been met. The effective portion of the gains or losses resulting from changes in the fair value of these hedges is recorded in Accumulated other comprehensive income (loss) ("OCI") on the condensed consolidated balance sheets and will be subsequently reclassified to the related revenue line item in the condensed consolidated statements of operations in the same period that the underlying revenues are earned. The changes in value of these contracts resulting from changes in forward points are excluded from the assessment of hedge effectiveness and are recorded as incurred in Other expense, net in the condensed consolidated statements of operations. Cash flows from such forward contracts are classified as operating activities. As of April 30, 2017 and January 31, 2017 , we had outstanding foreign currency forward contracts designated as cash flow hedges with total notional values of $325 million and $252 million , respectively. All contracts have maturities not greater than 25 months. The notional value represents the amount that will be bought or sold upon maturity of the forward contract. During the three months ended April 30, 2017 and 2016 , all cash flow hedges were considered effective. Foreign Currency Forward Contracts not Designated as Hedges We also enter into foreign currency forward contracts to hedge a portion of our net outstanding monetary assets and liabilities. These forward contracts are not designated as hedging instruments under applicable accounting guidance, and therefore all changes in the fair value of the forward contracts are recorded in Other expense, net in the condensed consolidated statements of operations. These forward contracts are intended to offset the foreign currency gains or losses associated with the underlying monetary assets and liabilities. Cash flows from such forward contracts are classified as operating activities. As of April 30, 2017 and January 31, 2017 , we had outstanding forward contracts with total notional values of $42 million and $51 million , respectively. All contracts have maturities not greater than 15 months. The fair values of outstanding derivative instruments were as follows (in thousands): Condensed Consolidated Balance Sheets Location April 30, 2017 January 31, 2017 Derivative Assets: Foreign currency forward contracts designated as cash flow hedges Prepaid expenses and other current assets and Other assets $ 5,882 $ 7,149 Foreign currency forward contracts not designated as hedges Prepaid expenses and other current assets 1,052 760 Derivative Liabilities: Foreign currency forward contracts designated as cash flow hedges Accrued expenses and other current liabilities and Other liabilities $ 3,728 $ 1,605 Foreign currency forward contracts not designated as hedges Accrued expenses and other current liabilities 501 522 Gains (losses) associated with foreign currency forward contracts designated as cash flow hedges were as follows (in thousands): Condensed Consolidated Statement of Operations and Statement of Comprehensive Loss Locations Three Months Ended April 30, 2017 2016 Gains (losses) recognized in OCI (effective portion) (1) Net change in market value of effective foreign currency forward exchange contracts $ (975 ) $ (10,954 ) Gains (losses) reclassified from OCI into income (effective portion) Revenues 234 110 Gains (losses) recognized in income (amount excluded from effectiveness testing and ineffective portion) Other expense, net 623 151 (1) Of the total effective portion of foreign currency forward contracts designated as cash flow hedges as of April 30, 2017 , net gains of $4 million are expected to be reclassified out of OCI within the next 12 months. Gains (losses) associated with foreign currency forward contracts not designated as cash flow hedges were as follows (in thousands): Condensed Consolidated Statement of Operations Location Three Months Ended April 30, Derivative Type 2017 2016 Foreign currency forward contracts not designated as hedges Other expense, net $ (6 ) $ (1,319 ) We are subject to master netting agreements with certain counterparties of the foreign exchange contracts, under which we are permitted to net settle transactions of the same currency with a single net amount payable by one party to the other. It is our policy to present the derivatives gross in the condensed consolidated balance sheets. Our foreign currency forward contracts are not subject to any credit contingent features or collateral requirements and we do not believe we are subject to significant counterparty concentration risk given the short-term nature, volume, and size of the derivative contracts outstanding. As of April 30, 2017 , information related to these offsetting arrangements was as follows (in thousands): Gross Amounts of Recognized Assets Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets Net Assets Exposed Financial Instruments Cash Collateral Received Derivative Assets: Counterparty A $ 1,081 $ — $ 1,081 $ (1,081 ) $ — $ — Counterparty B 5,827 — 5,827 (2,720 ) — 3,107 Counterparty C 2 — 2 — — 2 Counterparty D 24 — 24 — — 24 Total $ 6,934 $ — $ 6,934 $ (3,801 ) $ — $ 3,133 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets Net Liabilities Exposed Financial Instruments Cash Collateral Pledged Derivative Liabilities: Counterparty A $ 1,509 $ — $ 1,509 $ (1,081 ) $ — $ 428 Counterparty B 2,720 — 2,720 (2,720 ) — — Total $ 4,229 $ — $ 4,229 $ (3,801 ) $ — $ 428 |
Convertible Senior Notes, Net
Convertible Senior Notes, Net | 3 Months Ended |
Apr. 30, 2017 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes, Net | Convertible Senior Notes, Net Convertible Senior Notes In June 2013, we issued 0.75% convertible senior notes due July 15, 2018 ("2018 Notes") with a principal amount of $350 million . The 2018 Notes are unsecured, unsubordinated obligations, and interest is payable in cash in arrears at a fixed rate of 0.75% on January 15 and July 15 of each year. The 2018 Notes mature on July 15, 2018 unless repurchased or converted in accordance with their terms prior to such date. We cannot redeem the 2018 Notes prior to maturity. Concurrently, we issued 1.50% convertible senior notes due July 15, 2020 ("2020 Notes") with a principal amount of $250 million (together with the 2018 Notes, referred to as "the Notes"). The 2020 Notes are unsecured, unsubordinated obligations, and interest is payable in cash in arrears at a fixed rate of 1.50% on January 15 and July 15 of each year. The 2020 Notes mature on July 15, 2020 unless repurchased or converted in accordance with their terms prior to such date. We cannot redeem the 2020 Notes prior to maturity. The terms of the Notes are governed by Indentures by and between us and Wells Fargo Bank, National Association, as Trustee ("the Indentures"). Upon conversion, holders of the Notes will receive cash, shares of Class A common stock or a combination of cash and shares of Class A common stock, at our election. For the 2018 Notes, the initial conversion rate is 12.0075 shares of Class A common stock per $1,000 principal amount, which is equal to an initial conversion price of approximately $83.28 per share of Class A common stock, subject to adjustment. Prior to the close of business on March 14, 2018 , the conversion is subject to the satisfaction of certain conditions as described below. For the 2020 Notes, the initial conversion rate is 12.2340 shares of Class A common stock per $1,000 principal amount, which is equal to an initial conversion price of approximately $81.74 per share of Class A common stock, subject to adjustment. Prior to the close of business on March 13, 2020 , the conversion is subject to the satisfaction of certain conditions, as described below. Holders of the Notes who convert their Notes in connection with certain corporate events that constitute a make-whole fundamental change (as defined in the Indentures) are, under certain circumstances, entitled to an increase in the conversion rate. Additionally, in the event of a corporate event that constitutes a fundamental change (as defined in the Indentures), holders of the Notes may require us to repurchase all or a portion of their Notes at a price equal to 100% of the principal amount of the Notes, plus any accrued and unpaid interest. Holders of the Notes may convert all or a portion of their Notes prior to the close of business on March 14, 2018 for the 2018 Notes and March 13, 2020 for the 2020 Notes, in multiples of $1,000 principal amount, only under the following circumstances: • if the last reported sale price of Class A common stock for at least twenty trading days during a period of thirty consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price of the respective Notes on each applicable trading day; • during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the respective Notes for each day of that five day consecutive trading day period was less than 98% of the product of the last reported sale price of Class A common stock and the conversion rate of the respective Notes on such trading day; or • upon the occurrence of specified corporate events, as noted in the Indentures. In accounting for the issuance of the Notes, we separated each of the Notes into liability and equity components. The carrying amounts of the liability components were calculated by measuring the fair value of similar liabilities that do not have associated convertible features. The carrying amount of the equity components representing the conversion option were determined by deducting the fair value of the liability components from the par value of the respective Notes. These differences represent debt discounts that are amortized to interest expense over the respective terms of the Notes. The equity components are not remeasured as long as they continue to meet the conditions for equity classification. We allocated the total issuance costs incurred to the Notes on a prorated basis using the aggregate principal balances. In accounting for the issuance costs related to the Notes, we allocated the total amount of issuance costs incurred to liability and equity components. Issuance costs attributable to the liability components are being amortized to interest expense over the respective terms of the Notes, and the issuance costs attributable to the equity components were netted against the respective equity components in Additional paid-in capital. For the 2018 Notes, we recorded liability issuance costs of $7 million and equity issuance costs of $2 million . Amortization expense for the liability issuance costs was $0.4 million for each of the three month periods ended April 30, 2017 and 2016 . For the 2020 Notes, we recorded liability issuance costs of $5 million and equity issuance costs of $2 million . Amortization expense for the liability issuance costs was $0.2 million for each of the three month periods ended April 30, 2017 and 2016 . The Notes, net consisted of the following (in thousands): April 30, 2017 January 31, 2017 2018 Notes 2020 Notes 2018 Notes 2020 Notes Principal amounts: Principal $ 350,000 $ 250,000 $ 350,000 $ 250,000 Unamortized debt discount (1) (20,336 ) (34,414 ) (24,380 ) (36,820 ) Net carrying amount before unamortized debt issuance costs 329,664 215,586 325,620 213,180 Unamortized debt issuance costs (1) (1,698 ) (2,159 ) (2,050 ) (2,327 ) Net carrying amount $ 327,966 $ 213,427 $ 323,570 $ 210,853 Carrying amount of the equity component (2) $ 74,892 $ 66,007 $ 74,892 $ 66,007 (1) Included in the condensed consolidated balance sheets within Convertible senior notes, net and amortized over the remaining lives of the Notes on a straight-line basis as it approximates the effective interest rate method. (2) Included in the condensed consolidated balance sheets within Additional paid-in capital, net of $2 million and $2 million for the 2018 Notes and 2020 Notes, respectively, in equity issuance costs. As of April 30, 2017 , the remaining life of the 2018 Notes and 2020 Notes is approximately 14 months and 38 months, respectively. The effective interest rates of the liability components of the 2018 Notes and 2020 Notes are 5.75% and 6.25% , respectively. These interest rates were based on the interest rates of similar liabilities at the time of issuance that did not have associated convertible features. The following table sets forth total interest expense recognized related to the Notes (in thousands): Three Months Ended April 30, 2017 2016 2018 2020 2018 2020 Contractual interest expense $ 656 $ 938 $ 656 $ 938 Interest cost related to amortization of debt issuance costs 352 168 352 167 Interest cost related to amortization of the debt discount 4,044 2,406 3,819 2,261 Notes Hedges In connection with the issuance of the Notes, we entered into convertible note hedge transactions with respect to our Class A common stock ("Purchased Options"). The Purchased Options cover, subject to anti-dilution adjustments substantially identical to those in the Notes, approximately 7.3 million shares of our Class A common stock and are exercisable upon conversion of the Notes. The Purchased Options have initial exercise prices that correspond to the initial conversion prices of the 2018 Notes and 2020 Notes, respectively, subject to anti-dilution adjustments substantially similar to those in the Notes. The Purchased Options will expire in 2018 for the 2018 Notes and in 2020 for the 2020 Notes, if not earlier exercised. The Purchased Options are intended to offset potential economic dilution to our Class A common stock upon any conversion of the Notes. The Purchased Options are separate transactions and are not part of the terms of the Notes. We paid an aggregate amount of $144 million for the Purchased Options, which is included in Additional paid-in capital in the condensed consolidated balance sheets. Warrants In connection with the issuance of the Notes, we also entered into warrant transactions to sell warrants ("the Warrants") to acquire, subject to anti-dilution adjustments, up to approximately 4.2 million shares in July 2018 and 3.1 million shares in July 2020 of our Class A common stock at an exercise price of $107.96 per share. If the Warrants are not exercised on their exercise dates, they will expire. If the market value per share of our Class A common stock exceeds the applicable exercise price of the Warrants, the Warrants will have a dilutive effect on our earnings per share assuming that we are profitable. The Warrants are separate transactions, and are not part of the terms of the Notes or the Purchased Options. We received aggregate proceeds of $93 million from the sale of the Warrants, which is recorded in Additional paid-in capital in the condensed consolidated balance sheets. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Facility and Computing Infrastructure-related Commitments We have entered into non-cancelable agreements for certain of our offices and data centers with various expiration dates. Certain of our office leases are with an affiliate of our Chairman, David Duffield, who is also a significant stockholder (see Note 17). Our operating lease agreements generally provide for rental payments on a graduated basis and for options to renew, which could increase future minimum lease payments if exercised. This includes payments for office and data center square footage, as well as data center power capacity for certain data centers. We generally recognize these expenses on a straight-line basis over the period in which we benefit from the lease and we have accrued for rent expense incurred but not paid. Total rent expense was $19 million and $17 million for the three months ended April 30, 2017 and 2016 , respectively. In January 2014, we entered into a 95 -year lease for a 6.9 -acre parcel of vacant land in Pleasanton, California, under which we paid $2 million for base rent from commencement through December 31, 2020. Annual rent payments of $0.2 million plus increases based on increases in the consumer price index begin on January 1, 2021 and continue through the end of the lease. Additionally, we have entered into a non-cancelable agreement with a computing infrastructure vendor that expires on October 31, 2024. Legal Matters We are a party to various legal proceedings and claims which arise in the ordinary course of business. We make a provision for a liability relating to legal matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular matter. In our opinion, as of April 30, 2017 , there was not at least a reasonable possibility that we had incurred a material loss, or a material loss in excess of a recorded accrual, with respect to such loss contingencies. |
Common Stock and Stockholders'
Common Stock and Stockholders' Equity | 3 Months Ended |
Apr. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Common Stock and Stockholders' Equity | Common Stock and Stockholders’ Equity Common Stock As of April 30, 2017 , there were 131 million shares of Class A common stock and 75 million shares of Class B common stock outstanding. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting and conversion. Each share of Class A common stock is entitled to one vote per share and each share of Class B common stock is entitled to ten votes per share. Each share of Class B common stock can be converted into a share of Class A common stock at any time at the option of the holder. Employee Equity Plans Our 2012 Equity Incentive Plan ("EIP") serves as the successor to our 2005 Stock Plan (together with the EIP, the "Stock Plans"). Pursuant to the terms of the EIP, the share reserve increased by 10 million shares in March 2017, and as of April 30, 2017 , we had approximately 62 million shares of Class A common stock available for future grants. We also have a 2012 Employee Stock Purchase Plan ("ESPP"). Under the ESPP, eligible employees are granted options to purchase shares at the lower of 85% of the fair market value of the stock at the time of grant or 85% of the fair market value at the time of exercise. Options to purchase shares are granted twice yearly on or about June 16 and December 16 and exercisable on or about the succeeding December 15 and June 15, respectively, of each year. Pursuant to the terms of the ESPP, the share reserve increased by 2 million shares in March 2017. As of April 30, 2017 , 8 million shares of Class A common stock were available for issuance under the ESPP. Stock Options The Stock Plans provide for the issuance of incentive and nonstatutory options to employees and non-employees. Options issued under the Stock Plans generally are exercisable for periods not to exceed 10 years and generally vest over five years. A summary of information related to stock option activity during the three months ended April 30, 2017 is as follows: Outstanding Stock Options Weighted- Average Exercise Price Aggregate Intrinsic Value (in millions) Balance as of January 31, 2017 9,096,592 $ 4.34 $ 716 Stock option grants — — Stock options exercised (625,290 ) 3.60 Stock options canceled (3,575 ) 9.08 Balance as of April 30, 2017 8,467,727 $ 4.39 $ 703 Vested and expected to vest as of April 30, 2017 8,465,367 $ 4.39 $ 703 Exercisable as of April 30, 2017 8,364,499 $ 4.32 $ 695 As of April 30, 2017 , there was a total of $2 million in unrecognized compensation cost related to unvested stock options which is expected to be recognized over a weighted-average period of approximately 6 months . Restricted Stock Units The Stock Plans provide for the issuance of restricted stock units ("RSUs") to employees. RSUs generally vest over four years. A summary of information related to RSU activity during the three months ended April 30, 2017 is as follows: Number of Shares Weighted-Average Grant Date Fair Value Balance as of January 31, 2017 11,502,721 $ 78.45 RSUs granted 5,726,171 83.77 RSUs vested (1,987,516 ) 76.70 RSUs forfeited (272,289 ) 71.93 Balance as of April 30, 2017 14,969,087 $ 80.84 As of April 30, 2017 , there was a total of $1.1 billion in unrecognized compensation cost related to unvested RSUs, which is expected to be recognized over a weighted-average period of approximately 3.1 years. Performance-based Restricted Stock Units During fiscal 2017 , 0.3 million shares of performance-based restricted stock units ("PRSUs") were granted to all employees other than executive management and included performance conditions related to company-wide goals and service conditions. These performance conditions were met and the PRSUs vested on March 15, 2017. During the three months ended April 30, 2017 , we recognized $6 million in compensation cost related to these PRSUs. |
Unearned Revenue and Performanc
Unearned Revenue and Performance Obligations | 3 Months Ended |
Apr. 30, 2017 | |
Deferred Revenue Disclosure [Abstract] | |
Unearned Revenue and Performance Obligations | Unearned Revenue and Performance Obligations $361 million and $251 million of subscription services revenue was recognized during the three months ended April 30, 2017 and 2016 , respectively, that was included in the unearned revenue balances at the beginning of the respective periods. Professional services revenue recognized in the same periods from unearned revenue balances at the beginning of the respective periods was not material. Transaction Price Allocated to the Remaining Performance Obligations As of April 30, 2017 , approximately $4.0 billion of revenue is expected to be recognized from remaining performance obligations for subscription contracts. We expect to recognize revenue on approximately two thirds of these remaining performance obligations over the next 24 months , with the balance recognized thereafter. Revenue from remaining performance obligations for professional services contracts as of April 30, 2017 was not material. |
Other Expense, Net
Other Expense, Net | 3 Months Ended |
Apr. 30, 2017 | |
Other Income and Expenses [Abstract] | |
Other Expense, Net | Other Expense, Net Other expense, net consisted of the following (in thousands): Three Months Ended April 30, 2017 2016 Interest income $ 4,029 $ 2,214 Interest expense (1) (6,986 ) (8,031 ) Other income (expense) 1,294 (21 ) Other expense, net $ (1,663 ) $ (5,838 ) (1) Interest expense includes the contractual interest expense related to the 2018 Notes and 2020 Notes and non-cash interest related to amortization of the debt discount and debt issuance costs (see Note 10). |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We compute the year-to-date income tax provision by applying the estimated annual effective tax rate to the year-to-date pre-tax income or loss and adjust for discrete tax items in the period. We reported a tax expense of $2 million and $1 million for the three months ended April 30, 2017 and 2016 , respectively. The income tax provision for each of the three month periods ended April 30, 2017 and 2016 was primarily attributable to state taxes and income tax expense in profitable foreign jurisdictions. We are subject to income tax audits in the U.S. and foreign jurisdictions. We record liabilities related to uncertain tax positions and believe that we have provided adequate reserves for income tax uncertainties in all open tax years. Due to our history of tax losses, all years remain open to tax audit. We periodically evaluate the realizability of our net deferred tax assets based on all available evidence, both positive and negative. The realization of net deferred tax assets is dependent on our ability to generate sufficient future taxable income during periods prior to the expiration of tax attributes to fully utilize these assets. As of April 30, 2017 , we intend to continue maintaining a full valuation allowance on our deferred tax assets except for certain jurisdictions. |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Apr. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share Basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including our outstanding stock options, outstanding warrants, common stock related to unvested early exercised stock options, common stock related to unvested restricted stock units and awards and convertible senior notes to the extent dilutive, and common stock issuable pursuant to the ESPP. Basic and diluted net loss per share was the same for each period presented, as the inclusion of all potential common shares outstanding would have been anti-dilutive. The net loss per share attributable to common stockholders is allocated based on the contractual participation rights of the Class A common shares and Class B common shares as if the loss for the year had been distributed. As the liquidation and dividend rights are identical, the net loss attributable to common stockholders is allocated on a proportionate basis. We consider shares issued upon the early exercise of options subject to repurchase and unvested restricted stock awards to be participating securities because holders of such shares have non-forfeitable dividend rights in the event of our declaration of a dividend for common shares. In future periods, to the extent we are profitable, we will subtract earnings allocated to these participating securities from net income to determine net income attributable to common stockholders. The following table presents the calculation of basic and diluted net loss attributable to common stockholders per share (in thousands, except per share data): Three Months Ended April 30, 2017 2016 * As Adjusted Class A Class B Class A Class B Net loss per share, basic and diluted: Numerator: Allocation of distributed net loss $ (40,599 ) $ (23,445 ) $ (47,433 ) $ (31,070 ) Denominator: Weighted-average common shares outstanding 129,206 74,612 117,537 76,992 Basic and diluted net loss per share $ (0.31 ) $ (0.31 ) $ (0.40 ) $ (0.40 ) * Adjusted to reflect adoption of ASU No. 2014-09, Revenue from Contracts with Customers . For further information, see Note 2. The anti-dilutive securities excluded from the weighted-average shares used to calculate the diluted net loss per common share were as follows (in thousands): Three Months Ended April 30, 2017 2016 Outstanding common stock options 8,468 11,843 Shares subject to repurchase 70 492 Unvested restricted stock awards, units, and PRSUs 15,133 13,214 Shares related to the convertible senior notes 7,261 7,261 Shares subject to warrants related to the issuance of convertible senior notes 7,261 7,261 Shares issuable pursuant to the ESPP 485 314 38,678 40,385 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Apr. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions We currently lease certain office space from an affiliate of our Chairman, Mr. Duffield, adjacent to our corporate headquarters in Pleasanton, California under various lease agreements. The average term of the agreements is 10 years and the total rent due under the agreements is $9 million for the fiscal year ended January 31, 2018 , and $91 million in total. Rent expense under these agreements was $2 million for each of the three month periods ended April 30, 2017 and 2016 . |
Geographic Information
Geographic Information | 3 Months Ended |
Apr. 30, 2017 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information Disaggregation of Revenue We sell our subscription contracts and related services in two primary geographical markets: to customers located in the United States, and to customers located outside of the United States. Revenue by geography is generally based on the address of the customer as specified in our master subscription agreement. The following table sets forth revenue by geographic area (in thousands): Three Months Ended April 30, 2017 2016 *As Adjusted United States $ 383,171 $ 286,349 Other countries 96,690 61,328 Total $ 479,861 $ 347,677 * Adjusted to reflect adoption of ASU No. 2014-09, Revenue from Contracts with Customers . For further information, see Note 2. No single country other than the United States had revenues greater than 10% of total revenues for the three months ended April 30, 2017 and 2016 . No customer individually accounted for more than 10% of our trade and other receivables, net as of April 30, 2017 or January 31, 2017 . Long-Lived Assets We attribute our long-lived assets, which primarily consist of property and equipment, to a country based on the physical location of the assets. The following table sets forth property and equipment by geographic area (in thousands): April 30, 2017 January 31, 2017 United States $ 356,186 $ 321,442 Ireland 39,356 35,720 Other countries 8,560 8,715 Total $ 404,102 $ 365,877 |
Overview and Basis of Present26
Overview and Basis of Presentation (Policies) | 3 Months Ended |
Apr. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("GAAP") and applicable rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. The condensed consolidated financial statements include the results of Workday, Inc. and its wholly-owned subsidiaries. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of our management, the information contained herein reflects all adjustments necessary for a fair presentation of Workday’s results of operations, financial position and cash flows. All such adjustments are of a normal, recurring nature. The results of operations for the quarter ended April 30, 2017 shown in this report are not necessarily indicative of results to be expected for the full year ending January 31, 2018 . The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements in our Annual Report on Form 10-K for the year ended January 31, 2017 , filed with the SEC on March 20, 2017. Effective February 1, 2017, we adopted the requirements of Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers and ASU No. 2016-18, Statement of Cash Flows, Restricted C ash as discussed in Note 2. All amounts and disclosures set forth in this Form 10-Q have been updated to comply with the new standards, as indicated by the "as adjusted" footnote. Certain prior period amounts reported in our condensed consolidated financial statements and notes thereto have been reclassified to conform to current period presentation. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires us to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. These estimates include, but are not limited to, the determination of the period of benefit for deferred commissions, certain assumptions used in the valuation of equity awards, and the fair value of assets acquired and liabilities assumed through business combinations. Actual results could differ from those estimates and such differences could be material to our condensed consolidated financial position and results of operations. |
Segment Information | Segment Information We operate in one operating segment, cloud applications. Operating segments are defined as components of an enterprise where separate financial information is evaluated regularly by the chief operating decision maker, who is our chief executive officer, in deciding how to allocate resources and assessing performance. Our chief operating decision maker allocates resources and assesses performance based upon discrete financial information at the consolidated level. |
Accounting Pronouncements Adopted and Pending | Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which requires the recognition of lease assets and lease liabilities on the balance sheet by lessees for those leases currently classified as operating leases under ASC Topic 840 Leases. The guidance is effective for our fiscal year beginning February 1, 2019. Early adoption is permitted. We are evaluating the accounting, transition and disclosure requirements of the standard and cannot currently estimate the financial statement impact of adoption. In October 2016, the FASB issued ASU No. 2016-16, Intra-Entity Transfers of Assets Other Than Inventory (Topic 740) , which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Prior to the issuance of this ASU, existing guidance prohibited the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset had been sold to an outside party. The guidance is effective for our fiscal year beginning February 1, 2018. Early adoption is permitted. We are evaluating the accounting, transition and disclosure requirements of the standard and cannot currently estimate the financial statement impact of adoption. Recently Adopted Accounting Pronouncements ASU No. 2014-09 In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU No. 2014-09, Revenue from Contracts with Customers ("Topic 606") . Topic 606 supersedes the revenue recognition requirements in Accounting Standards Codification ("ASC") Topic 605, Revenue Recognition ("Topic 605"), and requires the recognition of revenue when promised goods or services are transferred to customers in an amount that reflects the considerations to which the entity expects to be entitled to in exchange for those goods or services. Topic 606 also includes Subtopic 340-40, Other Assets and Deferred Costs - Contracts with Customers, which requires the deferral of incremental costs of obtaining a contract with a customer. Collectively, we refer to Topic 606 and Subtopic 340-40 as the "new standard." We early adopted the requirements of the new standard as of February 1, 2017, utilizing the full retrospective method of transition. Adoption of the new standard resulted in changes to our accounting policies for revenue recognition, trade and other receivables, and deferred commissions as detailed below. We applied the new standard using a practical expedient where the consideration allocated to the remaining performance obligations or an explanation of when we expect to recognize that amount as revenue for all reporting periods presented before the date of the initial application is not disclosed. The impact of adopting the new standard on our fiscal 2017 and fiscal 2016 revenues is not material. The primary impact of adopting the new standard relates to the deferral of incremental commission costs of obtaining subscription contracts. Under Topic 605, we deferred only direct and incremental commission costs to obtain a contract and amortized those costs over the term of the related subscription contract, which was generally between three and five years. Under the new standard, we defer all incremental commission costs to obtain the contract. We amortize these costs over a period of benefit that we have determined to be five years. ASU No. 2016-09 In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718), which simplifies the accounting for share-based payment transactions, including accounting for income taxes, forfeitures, and classification in the statement of cash flows. As of February 1, 2017, we adopted the applicable provisions of ASU No. 2016-09 as follows: • The guidance requires excess tax benefits and tax deficiencies to be recorded as income tax benefit or expense in the statement of operations when the awards vest or are settled, and eliminates the requirement to reclassify cash flows related to excess tax benefits from operating activities to financing activities on the statement of cash flows. We adopted the guidance prospectively effective February 1, 2017. Amounts previously recorded to Additional paid-in capital related to windfall tax benefits prior to February 1, 2017 remain in Stockholders' equity. • The guidance eliminates the requirement that excess tax benefits must be realized (through a reduction in income taxes payable) before companies can recognize them. We have applied the modified retrospective transition method upon adoption. The previously unrecognized excess tax effects were recorded as a deferred tax asset in the amount of $448.0 million , of which $447.8 million was fully offset by a valuation allowance, and the remaining $0.2 million resulted in a cumulative-effect adjustment to Accumulated deficit as of February 1, 2017. ASU No. 2016-18 In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows, Restricted Cash (Topic 230) , which requires that a statement of cash flows explain the change during the period for the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The guidance is effective for our fiscal year beginning February 1, 2018. We early adopted ASU No. 2016-18 retrospectively, effective February 1, 2017. As a result of including restricted cash with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts presented on the condensed consolidated statement of cash flows, net cash flows for the three months ended April 30, 2016 increased by $1 million . We adjusted our condensed consolidated financial statements from amounts previously reported due to the adoption of ASU No. 2014-09 and ASU No. 2016-18. Select condensed consolidated balance sheet line items, which reflect the adoption of the new ASU's are as follows (in thousands): January 31, 2017 As previously reported Adjustments As adjusted Assets Trade and other receivables, net $ 383,908 $ 25,872 a $ 409,780 Prepaid expenses and other current assets 88,336 (21,746 ) a 66,590 Deferred costs 27,537 23,793 a 51,330 Deferred costs, noncurrent 43,310 73,939 a 117,249 Liabilities Unearned revenue $ 1,097,417 $ (11,205 ) a $ 1,086,212 Unearned revenue, noncurrent 135,970 (639 ) a 135,331 Select unaudited condensed consolidated statement of operations line items, which reflect the adoption of the new ASUs are as follows (in thousands): Three months ended April 30, 2016 As previously reported Adjustments As adjusted Revenues: Subscription services $ 280,003 $ 165 a $ 280,168 Professional services 65,427 2,082 a 67,509 Total revenues 345,430 2,247 a 347,677 Costs and expenses: Sales and marketing 127,491 128 a 127,619 Operating loss (73,649 ) 2,119 a (71,530 ) Net loss $ (80,622 ) $ 2,119 a $ (78,503 ) Net loss per share, basic and diluted $ (0.41 ) $ 0.01 a $ (0.40 ) Select unaudited condensed consolidated statement of cash flows line items, which reflect the adoption of the new ASUs are as follows (in thousands): Three months ended April 30, 2016 As previously reported Adjustments As adjusted Cash flows from operating activities Net loss $ (80,622 ) $ 2,119 a $ (78,503 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Amortization of deferred costs 5,873 4,566 a 10,439 Changes in operating assets and liabilities: Trade and other receivables, net 101,047 (2,728 ) a 98,319 Deferred costs (4,788 ) (4,438 ) a (9,226 ) Prepaid expenses and other assets (776 ) 3,164 a, b 2,388 Unearned revenue 26,269 (1,332 ) a 24,937 Net cash provided by (used in) operating activities 161,466 1,351 b 162,817 Net increase (decrease) in cash and cash equivalents 104,517 1,351 b 105,868 Cash, cash equivalents and restricted cash at the end of period $ 404,604 $ 1,351 b $ 405,955 a Adjusted to reflect the adoption of ASU No. 2014-09, Revenue from Contracts with Customers. b Adjusted to reflect the adoption of ASU No. 2016-18, Statement of Cash Flows, Restricted Cash. |
Revenue Recognition | Revenue Recognition We derive our revenues primarily from subscription services and professional services. Revenues are recognized when control of these services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those services. We determine revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, we satisfy a performance obligation Subscription Services Revenues Subscription services revenues primarily consist of fees that provide customers access to one or more of our cloud applications for finance, human resources, and analytics, with routine customer support. Revenue is generally recognized over time on a ratable basis over the contract term beginning on the date that our service is made available to the customer. Our subscription contracts are generally three years or longer in length, billed annually in advance, and non-cancelable. Professional Services Revenues Professional services revenues primarily consist of fees for deployment and optimization services, as well as training. The majority of our consulting contracts are billed on a time and materials basis and revenue is recognized over time as the services are performed. For contracts billed on a fixed price basis, revenue is recognized over time based on the proportion performed. Contracts with Multiple Performance Obligations Some of our contracts with customers contain multiple performance obligations. For these contracts, we account for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. We determine the standalone selling prices based on our overall pricing objectives, taking into consideration market conditions and other factors, including the value of our contracts, the cloud applications sold, customer demographics, geographic locations, and the number and types of users within our contracts. |
Trade and Other Receivables | Trade and Other Receivables Trade and other receivables are primarily comprised of trade receivables that are recorded at the invoice amount, net of an allowance for doubtful accounts, which is not material. |
Deferred Commissions | Deferred Commissions Sales commissions earned by our sales force are considered incremental and recoverable costs of obtaining a contract with a customer. These costs are deferred and then amortized over a period of benefit that we have determined to be five years. We determined the period of benefit by taking into consideration our customer contracts, our technology and other factors. Amortization expense is included in Sales and marketing expenses in the accompanying condensed consolidated statements of operations. |
Marketable Securities | We classify our marketable securities as available-for-sale at the time of purchase and reevaluate such classification as of each balance sheet date. We consider all marketable securities as available for use in current operations, including those with maturity dates beyond one year, and therefore classify these securities as current assets in the accompanying condensed consolidated balance sheets. Marketable securities on the condensed consolidated balance sheets consist of securities with original maturities at the time of purchase greater than three months and the remainder of the securities are reflected in cash and cash equivalents. |
Fair Value Measurements | We measure our financial assets and liabilities at fair value at each reporting period using a fair value hierarchy that requires that we maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 — Other inputs that are directly or indirectly observable in the marketplace. Level 3 — Unobservable inputs that are supported by little or no market activity. |
Net Loss Per Share | Basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including our outstanding stock options, outstanding warrants, common stock related to unvested early exercised stock options, common stock related to unvested restricted stock units and awards and convertible senior notes to the extent dilutive, and common stock issuable pursuant to the ESPP. Basic and diluted net loss per share was the same for each period presented, as the inclusion of all potential common shares outstanding would have been anti-dilutive. The net loss per share attributable to common stockholders is allocated based on the contractual participation rights of the Class A common shares and Class B common shares as if the loss for the year had been distributed. As the liquidation and dividend rights are identical, the net loss attributable to common stockholders is allocated on a proportionate basis. We consider shares issued upon the early exercise of options subject to repurchase and unvested restricted stock awards to be participating securities because holders of such shares have non-forfeitable dividend rights in the event of our declaration of a dividend for common shares. In future periods, to the extent we are profitable, we will subtract earnings allocated to these participating securities from net income to determine net income attributable to common stockholders. |
Accounting Standards and Sign27
Accounting Standards and Significant Accounting Policies (Tables) | 3 Months Ended |
Apr. 30, 2017 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Select condensed consolidated balance sheet line items, which reflect the adoption of the new ASU's are as follows (in thousands): January 31, 2017 As previously reported Adjustments As adjusted Assets Trade and other receivables, net $ 383,908 $ 25,872 a $ 409,780 Prepaid expenses and other current assets 88,336 (21,746 ) a 66,590 Deferred costs 27,537 23,793 a 51,330 Deferred costs, noncurrent 43,310 73,939 a 117,249 Liabilities Unearned revenue $ 1,097,417 $ (11,205 ) a $ 1,086,212 Unearned revenue, noncurrent 135,970 (639 ) a 135,331 Select unaudited condensed consolidated statement of operations line items, which reflect the adoption of the new ASUs are as follows (in thousands): Three months ended April 30, 2016 As previously reported Adjustments As adjusted Revenues: Subscription services $ 280,003 $ 165 a $ 280,168 Professional services 65,427 2,082 a 67,509 Total revenues 345,430 2,247 a 347,677 Costs and expenses: Sales and marketing 127,491 128 a 127,619 Operating loss (73,649 ) 2,119 a (71,530 ) Net loss $ (80,622 ) $ 2,119 a $ (78,503 ) Net loss per share, basic and diluted $ (0.41 ) $ 0.01 a $ (0.40 ) Select unaudited condensed consolidated statement of cash flows line items, which reflect the adoption of the new ASUs are as follows (in thousands): Three months ended April 30, 2016 As previously reported Adjustments As adjusted Cash flows from operating activities Net loss $ (80,622 ) $ 2,119 a $ (78,503 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Amortization of deferred costs 5,873 4,566 a 10,439 Changes in operating assets and liabilities: Trade and other receivables, net 101,047 (2,728 ) a 98,319 Deferred costs (4,788 ) (4,438 ) a (9,226 ) Prepaid expenses and other assets (776 ) 3,164 a, b 2,388 Unearned revenue 26,269 (1,332 ) a 24,937 Net cash provided by (used in) operating activities 161,466 1,351 b 162,817 Net increase (decrease) in cash and cash equivalents 104,517 1,351 b 105,868 Cash, cash equivalents and restricted cash at the end of period $ 404,604 $ 1,351 b $ 405,955 a Adjusted to reflect the adoption of ASU No. 2014-09, Revenue from Contracts with Customers. b Adjusted to reflect the adoption of ASU No. 2016-18, Statement of Cash Flows, Restricted Cash. |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Apr. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Marketable Securities | At April 30, 2017 , marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value U.S. agency obligations $ 1,022,208 $ 22 $ (1,067 ) $ 1,021,163 U.S. treasury securities 254,523 2 (103 ) 254,422 Corporate bonds 320,798 18 (367 ) 320,449 Commercial paper 362,364 — — 362,364 Money market funds 57,308 — — 57,308 $ 2,017,201 $ 42 $ (1,537 ) $ 2,015,706 Included in cash and cash equivalents $ 398,936 $ — $ — $ 398,936 Included in marketable securities $ 1,618,265 $ 42 $ (1,537 ) $ 1,616,770 At January 31, 2017 , marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value U.S. agency obligations $ 908,874 $ 179 $ (535 ) $ 908,518 U.S. treasury securities 192,028 48 (25 ) 192,051 Corporate bonds 290,272 42 (429 ) 289,885 Commercial paper 323,106 — — 323,106 Money market funds 24,425 — — 24,425 $ 1,738,705 $ 269 $ (989 ) $ 1,737,985 Included in cash and cash equivalents $ 281,163 $ — $ — $ 281,163 Included in marketable securities $ 1,457,542 $ 269 $ (989 ) $ 1,456,822 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Information about Assets that are Measured at Fair Value on a Recurring Basis | The following table presents information about our assets and liabilities that are measured at fair value on a recurring basis and their assigned levels within the valuation hierarchy as of April 30, 2017 (in thousands): Description Level 1 Level 2 Level 3 Total U.S. agency obligations $ — $ 1,021,163 $ — $ 1,021,163 U.S. treasury securities 254,422 — — 254,422 Corporate bonds — 320,449 — 320,449 Commercial paper — 362,364 — 362,364 Money market funds 57,308 — — 57,308 Foreign currency derivative assets — 6,934 — 6,934 Total assets $ 311,730 $ 1,710,910 $ — $ 2,022,640 Foreign currency derivative liabilities $ — $ 4,229 $ — $ 4,229 Total liabilities $ — $ 4,229 $ — $ 4,229 The following table presents information about our assets and liabilities that are measured at fair value on a recurring basis and their assigned levels within the valuation hierarchy as of January 31, 2017 (in thousands): Description Level 1 Level 2 Level 3 Total U.S. agency obligations $ — $ 908,518 $ — $ 908,518 U.S. treasury securities 192,051 — — 192,051 Corporate bonds — 289,885 — 289,885 Commercial paper — 323,106 — 323,106 Money market funds 24,425 — — 24,425 Foreign currency derivative assets — 7,909 — 7,909 Total assets $ 216,476 $ 1,529,418 $ — $ 1,745,894 Foreign currency derivative liabilities $ — $ 2,127 $ — $ 2,127 Total liabilities $ — $ 2,127 $ — $ 2,127 |
Summary of Carrying Amounts and Estimated Fair Values of Financial Instruments | The following table presents the carrying amounts and estimated fair values of our financial instruments that are not recorded at fair value in the condensed consolidated balance sheets (in thousands): April 30, 2017 January 31, 2017 Net Carrying Amount Before Unamortized Debt Issuance Costs Estimated Fair Value Net Carrying Amount Before Unamortized Debt Issuance Costs Estimated Fair Value 0.75% Convertible senior notes $ 329,664 $ 407,313 $ 325,620 $ 402,259 1.50% Convertible senior notes 215,586 311,480 213,180 310,470 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Apr. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): April 30, 2017 January 31, 2017 Land $ 6,592 $ 6,592 Buildings 144,657 115,302 Computers, equipment and software 344,875 323,311 Computers, equipment and software acquired under capital leases 16,830 18,298 Furniture and fixtures 26,552 24,462 Leasehold improvements 113,320 108,673 Property and equipment, gross (1) 652,826 596,638 Less accumulated depreciation and amortization (248,724 ) (230,761 ) Property and equipment, net $ 404,102 $ 365,877 (1) Property and equipment, gross includes construction-in-progress for owned real estate projects of $120 million and $115 million that has not yet been placed in service as of April 30, 2017 and January 31, 2017 , respectively. |
Acquisition-related Intangibl31
Acquisition-related Intangible Assets, Net (Tables) | 3 Months Ended |
Apr. 30, 2017 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Schedule of Acquired Assets | Acquisition-related intangible assets, net consisted of the following (in thousands): April 30, 2017 January 31, 2017 Acquired developed technology $ 64,900 $ 64,900 Customer relationship assets 1,000 1,000 65,900 65,900 Less accumulated amortization (21,985 ) (17,113 ) Acquisition-related intangible assets, net $ 43,915 $ 48,787 |
Developed Technology and Customer Relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of April 30, 2017 , our future estimated amortization expense related to acquired developed technology and customer relationship assets is as follows (in thousands): Fiscal Period: 2018 $ 14,414 2019 18,904 2020 10,281 2021 316 Total $ 43,915 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Apr. 30, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consisted of the following (in thousands): April 30, 2017 January 31, 2017 Cost method investments $ 14,454 $ 14,004 Acquired land leasehold interest, net 9,649 9,676 Deposits 4,024 3,488 Net deferred tax assets 3,784 4,336 Other 22,296 22,066 Total $ 54,207 $ 53,570 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Apr. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair values of outstanding derivative instruments were as follows (in thousands): Condensed Consolidated Balance Sheets Location April 30, 2017 January 31, 2017 Derivative Assets: Foreign currency forward contracts designated as cash flow hedges Prepaid expenses and other current assets and Other assets $ 5,882 $ 7,149 Foreign currency forward contracts not designated as hedges Prepaid expenses and other current assets 1,052 760 Derivative Liabilities: Foreign currency forward contracts designated as cash flow hedges Accrued expenses and other current liabilities and Other liabilities $ 3,728 $ 1,605 Foreign currency forward contracts not designated as hedges Accrued expenses and other current liabilities 501 522 |
Derivative Instruments, Gain (Loss) | Gains (losses) associated with foreign currency forward contracts designated as cash flow hedges were as follows (in thousands): Condensed Consolidated Statement of Operations and Statement of Comprehensive Loss Locations Three Months Ended April 30, 2017 2016 Gains (losses) recognized in OCI (effective portion) (1) Net change in market value of effective foreign currency forward exchange contracts $ (975 ) $ (10,954 ) Gains (losses) reclassified from OCI into income (effective portion) Revenues 234 110 Gains (losses) recognized in income (amount excluded from effectiveness testing and ineffective portion) Other expense, net 623 151 (1) Of the total effective portion of foreign currency forward contracts designated as cash flow hedges as of April 30, 2017 , net gains of $4 million are expected to be reclassified out of OCI within the next 12 months. Gains (losses) associated with foreign currency forward contracts not designated as cash flow hedges were as follows (in thousands): Condensed Consolidated Statement of Operations Location Three Months Ended April 30, Derivative Type 2017 2016 Foreign currency forward contracts not designated as hedges Other expense, net $ (6 ) $ (1,319 ) |
Offsetting Assets | As of April 30, 2017 , information related to these offsetting arrangements was as follows (in thousands): Gross Amounts of Recognized Assets Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets Net Assets Exposed Financial Instruments Cash Collateral Received Derivative Assets: Counterparty A $ 1,081 $ — $ 1,081 $ (1,081 ) $ — $ — Counterparty B 5,827 — 5,827 (2,720 ) — 3,107 Counterparty C 2 — 2 — — 2 Counterparty D 24 — 24 — — 24 Total $ 6,934 $ — $ 6,934 $ (3,801 ) $ — $ 3,133 |
Offsetting Liabilities | Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets Net Liabilities Exposed Financial Instruments Cash Collateral Pledged Derivative Liabilities: Counterparty A $ 1,509 $ — $ 1,509 $ (1,081 ) $ — $ 428 Counterparty B 2,720 — 2,720 (2,720 ) — — Total $ 4,229 $ — $ 4,229 $ (3,801 ) $ — $ 428 |
Convertible Senior Notes, Net (
Convertible Senior Notes, Net (Tables) | 3 Months Ended |
Apr. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Senior Notes | The Notes, net consisted of the following (in thousands): April 30, 2017 January 31, 2017 2018 Notes 2020 Notes 2018 Notes 2020 Notes Principal amounts: Principal $ 350,000 $ 250,000 $ 350,000 $ 250,000 Unamortized debt discount (1) (20,336 ) (34,414 ) (24,380 ) (36,820 ) Net carrying amount before unamortized debt issuance costs 329,664 215,586 325,620 213,180 Unamortized debt issuance costs (1) (1,698 ) (2,159 ) (2,050 ) (2,327 ) Net carrying amount $ 327,966 $ 213,427 $ 323,570 $ 210,853 Carrying amount of the equity component (2) $ 74,892 $ 66,007 $ 74,892 $ 66,007 (1) Included in the condensed consolidated balance sheets within Convertible senior notes, net and amortized over the remaining lives of the Notes on a straight-line basis as it approximates the effective interest rate method. (2) Included in the condensed consolidated balance sheets within Additional paid-in capital, net of $2 million and $2 million for the 2018 Notes and 2020 Notes, respectively, in equity issuance costs. |
Schedule of Interest Expense Recognized Related to Convertible Senior Notes | The following table sets forth total interest expense recognized related to the Notes (in thousands): Three Months Ended April 30, 2017 2016 2018 2020 2018 2020 Contractual interest expense $ 656 $ 938 $ 656 $ 938 Interest cost related to amortization of debt issuance costs 352 168 352 167 Interest cost related to amortization of the debt discount 4,044 2,406 3,819 2,261 |
Common Stock and Stockholders35
Common Stock and Stockholders' Equity (Tables) | 3 Months Ended |
Apr. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Information Related to Stock Option Activity | A summary of information related to stock option activity during the three months ended April 30, 2017 is as follows: Outstanding Stock Options Weighted- Average Exercise Price Aggregate Intrinsic Value (in millions) Balance as of January 31, 2017 9,096,592 $ 4.34 $ 716 Stock option grants — — Stock options exercised (625,290 ) 3.60 Stock options canceled (3,575 ) 9.08 Balance as of April 30, 2017 8,467,727 $ 4.39 $ 703 Vested and expected to vest as of April 30, 2017 8,465,367 $ 4.39 $ 703 Exercisable as of April 30, 2017 8,364,499 $ 4.32 $ 695 |
Summary of Information Related to Restricted Stock Units Activity | A summary of information related to RSU activity during the three months ended April 30, 2017 is as follows: Number of Shares Weighted-Average Grant Date Fair Value Balance as of January 31, 2017 11,502,721 $ 78.45 RSUs granted 5,726,171 83.77 RSUs vested (1,987,516 ) 76.70 RSUs forfeited (272,289 ) 71.93 Balance as of April 30, 2017 14,969,087 $ 80.84 |
Other Expense, Net (Tables)
Other Expense, Net (Tables) | 3 Months Ended |
Apr. 30, 2017 | |
Other Income and Expenses [Abstract] | |
Other Expense, Net | Other expense, net consisted of the following (in thousands): Three Months Ended April 30, 2017 2016 Interest income $ 4,029 $ 2,214 Interest expense (1) (6,986 ) (8,031 ) Other income (expense) 1,294 (21 ) Other expense, net $ (1,663 ) $ (5,838 ) (1) Interest expense includes the contractual interest expense related to the 2018 Notes and 2020 Notes and non-cash interest related to amortization of the debt discount and debt issuance costs (see Note 10). |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Apr. 30, 2017 | |
Earnings Per Share [Abstract] | |
Summary of Calculation of Basic and Diluted Net Loss Per Share | The following table presents the calculation of basic and diluted net loss attributable to common stockholders per share (in thousands, except per share data): Three Months Ended April 30, 2017 2016 * As Adjusted Class A Class B Class A Class B Net loss per share, basic and diluted: Numerator: Allocation of distributed net loss $ (40,599 ) $ (23,445 ) $ (47,433 ) $ (31,070 ) Denominator: Weighted-average common shares outstanding 129,206 74,612 117,537 76,992 Basic and diluted net loss per share $ (0.31 ) $ (0.31 ) $ (0.40 ) $ (0.40 ) * Adjusted to reflect adoption of ASU No. 2014-09, Revenue from Contracts with Customers . For further information, see Note 2. |
Shares Excluded from Diluted Loss Per Share | The anti-dilutive securities excluded from the weighted-average shares used to calculate the diluted net loss per common share were as follows (in thousands): Three Months Ended April 30, 2017 2016 Outstanding common stock options 8,468 11,843 Shares subject to repurchase 70 492 Unvested restricted stock awards, units, and PRSUs 15,133 13,214 Shares related to the convertible senior notes 7,261 7,261 Shares subject to warrants related to the issuance of convertible senior notes 7,261 7,261 Shares issuable pursuant to the ESPP 485 314 38,678 40,385 |
Geographic Information (Tables)
Geographic Information (Tables) | 3 Months Ended |
Apr. 30, 2017 | |
Segment Reporting [Abstract] | |
Summary of Revenues by Geographic Area | The following table sets forth revenue by geographic area (in thousands): Three Months Ended April 30, 2017 2016 *As Adjusted United States $ 383,171 $ 286,349 Other countries 96,690 61,328 Total $ 479,861 $ 347,677 * Adjusted to reflect adoption of ASU No. 2014-09, Revenue from Contracts with Customers . For further information, see Note 2. |
Long-lived Assets by Geographic Areas | The following table sets forth property and equipment by geographic area (in thousands): April 30, 2017 January 31, 2017 United States $ 356,186 $ 321,442 Ireland 39,356 35,720 Other countries 8,560 8,715 Total $ 404,102 $ 365,877 |
Overview and Basis of Present39
Overview and Basis of Presentation (Detail) | 3 Months Ended |
Apr. 30, 2017segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 1 |
Accounting Standards and Sign40
Accounting Standards and Significant Accounting Policies - Recently Adopted Accounting Pronouncements (Details) - USD ($) $ in Millions | Feb. 01, 2017 | Apr. 30, 2017 | Apr. 30, 2016 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Amortization period, deferred commissions | 5 years | ||
Excess tax benefit | $ 448 | ||
Accounting Standards Update 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Subscription contract period | 3 years | ||
Accounting Standards Update 2016-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Deferred tax asset, valuation allowance | 447.8 | ||
Deferred income tax assets, net | 0.2 | ||
Accounting Standards Update 2016-18 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cash, cash equivalents and restricted cash increase (decrease) | $ 1 | ||
Retained Earnings | Accounting Standards Update 2016-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of new accounting principle in period of adoption | $ 0.2 | ||
Minimum | Accounting Standards Update 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Amortization period, deferred commissions | 3 years | ||
Maximum | Accounting Standards Update 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Amortization period, deferred commissions | 5 years |
Accounting Standards and Sign41
Accounting Standards and Significant Accounting Policies - Adjustments to the Balance Sheet (Details) - USD ($) $ in Thousands | Apr. 30, 2017 | Jan. 31, 2017 | |
Assets | |||
Trade and other receivables, net | $ 297,894 | $ 409,780 | [1] |
Prepaid expenses and other current assets | 68,406 | 66,590 | [1] |
Deferred costs | 51,819 | 51,330 | [1] |
Deferred costs, noncurrent | 114,504 | 117,249 | [1] |
Liabilities | |||
Unearned revenue | 1,079,874 | 1,086,212 | [1] |
Unearned revenue, noncurrent | $ 120,389 | 135,331 | [1] |
As previously reported | |||
Assets | |||
Trade and other receivables, net | 383,908 | ||
Prepaid expenses and other current assets | 88,336 | ||
Deferred costs | 27,537 | ||
Deferred costs, noncurrent | 43,310 | ||
Liabilities | |||
Unearned revenue | 1,097,417 | ||
Unearned revenue, noncurrent | 135,970 | ||
Adjustments | Adjustments | |||
Assets | |||
Trade and other receivables, net | 25,872 | ||
Prepaid expenses and other current assets | (21,746) | ||
Deferred costs | 23,793 | ||
Deferred costs, noncurrent | 73,939 | ||
Liabilities | |||
Unearned revenue | (11,205) | ||
Unearned revenue, noncurrent | $ (639) | ||
[1] | See Note 2 for a summary of adjustments. |
Accounting Standards and Sign42
Accounting Standards and Significant Accounting Policies - Adjustments to the Income Statement (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Apr. 30, 2017 | Apr. 30, 2016 | |||
Revenues [Abstract] | ||||
Subscription services | $ 399,736 | $ 280,168 | [1] | |
Professional services | 80,125 | 67,509 | [1] | |
Total revenues | 479,861 | 347,677 | [1] | |
Costs and expenses: | ||||
Sales and marketing | [2] | 155,709 | 127,619 | [1] |
Operating Income (Loss) | (60,200) | (71,530) | [1] | |
Net loss | $ (64,044) | $ (78,503) | [1] | |
Net loss per share, basic and diluted (in dollars per share) | $ (0.31) | $ (0.40) | [1] | |
As previously reported | ||||
Revenues [Abstract] | ||||
Subscription services | $ 280,003 | |||
Professional services | 65,427 | |||
Total revenues | 345,430 | |||
Costs and expenses: | ||||
Sales and marketing | 127,491 | |||
Operating Income (Loss) | (73,649) | |||
Net loss | $ (80,622) | |||
Net loss per share, basic and diluted (in dollars per share) | $ (0.41) | |||
Adjustments | Adjustments | ||||
Revenues [Abstract] | ||||
Subscription services | $ 165 | |||
Professional services | 2,082 | |||
Total revenues | 2,247 | |||
Costs and expenses: | ||||
Sales and marketing | 128 | |||
Operating Income (Loss) | 2,119 | |||
Net loss | $ 2,119 | |||
Net loss per share, basic and diluted (in dollars per share) | $ 0.01 | |||
[1] | See Note 2 for a summary of adjustments. | |||
[2] | Costs and expenses include share-based compensation expense as follows: Costs of subscription services $5,691 $4,397 Costs of professional services $8,021 $5,293 Product development $51,029 $32,968 Sales and marketing $23,159 $19,002 General and administrative $19,888 $16,575 |
Accounting Standards and Sign43
Accounting Standards and Significant Accounting Policies - Adjustments to the Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Apr. 30, 2017 | Apr. 30, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | ||
Cash flows from operating activities | |||||
Net loss | $ (64,044) | $ (78,503) | [1] | ||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||
Amortization of deferred costs | 13,637 | 10,439 | [1] | ||
Trade and other receivables, net | 111,815 | 98,319 | [1] | ||
Deferred costs | (11,381) | (9,226) | [1] | ||
Prepaid expenses and other assets | (3,050) | 2,388 | [1] | ||
Unearned revenue | (21,272) | 24,937 | [1] | ||
Net cash provided by (used in) operating activities | 180,022 | 162,817 | [1] | ||
Net increase (decrease) in cash and cash equivalents | (40,790) | 105,868 | [1] | ||
Cash, cash equivalents and restricted cash at the end of period | $ 501,104 | 405,955 | [1] | $ 541,894 | $ 300,087 |
As previously reported | |||||
Cash flows from operating activities | |||||
Net loss | (80,622) | ||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||
Amortization of deferred costs | 5,873 | ||||
Trade and other receivables, net | 101,047 | ||||
Deferred costs | (4,788) | ||||
Prepaid expenses and other assets | (776) | ||||
Unearned revenue | 26,269 | ||||
Net cash provided by (used in) operating activities | 161,466 | ||||
Net increase (decrease) in cash and cash equivalents | 104,517 | ||||
Cash, cash equivalents and restricted cash at the end of period | 404,604 | ||||
Adjustments | Adjustments | |||||
Cash flows from operating activities | |||||
Net loss | 2,119 | ||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||
Amortization of deferred costs | 4,566 | ||||
Trade and other receivables, net | (2,728) | ||||
Deferred costs | (4,438) | ||||
Prepaid expenses and other assets | 3,164 | ||||
Unearned revenue | (1,332) | ||||
Net cash provided by (used in) operating activities | 1,351 | ||||
Net increase (decrease) in cash and cash equivalents | 1,351 | ||||
Cash, cash equivalents and restricted cash at the end of period | $ 1,351 | ||||
[1] | See Note 2 for a summary of adjustments. |
Marketable Securities - Summary
Marketable Securities - Summary of Marketable Securities (Detail) - USD ($) $ in Thousands | Apr. 30, 2017 | Jan. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 2,017,201 | $ 1,738,705 |
Unrealized Gains | 42 | 269 |
Unrealized Losses | (1,537) | (989) |
Aggregate Fair Value | 2,015,706 | 1,737,985 |
U.S. agency obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,022,208 | 908,874 |
Unrealized Gains | 22 | 179 |
Unrealized Losses | (1,067) | (535) |
Aggregate Fair Value | 1,021,163 | 908,518 |
U.S. treasury securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 254,523 | 192,028 |
Unrealized Gains | 2 | 48 |
Unrealized Losses | (103) | (25) |
Aggregate Fair Value | 254,422 | 192,051 |
Corporate bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 320,798 | 290,272 |
Unrealized Gains | 18 | 42 |
Unrealized Losses | (367) | (429) |
Aggregate Fair Value | 320,449 | 289,885 |
Commercial paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 362,364 | 323,106 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Aggregate Fair Value | 362,364 | 323,106 |
Money market funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 57,308 | 24,425 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Aggregate Fair Value | 57,308 | 24,425 |
Included in cash and cash equivalents | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 398,936 | 281,163 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Aggregate Fair Value | 398,936 | 281,163 |
Included in marketable securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,618,265 | 1,457,542 |
Unrealized Gains | 42 | 269 |
Unrealized Losses | (1,537) | (989) |
Aggregate Fair Value | $ 1,616,770 | $ 1,456,822 |
Marketable Securities (Detail)
Marketable Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | ||
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds of sale of marketable securities | $ 9,074 | $ 200 | [1] |
[1] | See Note 2 for a summary of adjustments. |
Fair Value Measurements - Infor
Fair Value Measurements - Information about Assets that are Measured at Fair Value on a Recurring Basis (Detail) - Recurring - USD ($) $ in Thousands | Apr. 30, 2017 | Jan. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 2,022,640 | $ 1,745,894 |
Total liabilities | 4,229 | 2,127 |
U.S. agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 1,021,163 | 908,518 |
U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 254,422 | 192,051 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 320,449 | 289,885 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 362,364 | 323,106 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 57,308 | 24,425 |
Foreign currency derivative assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 6,934 | 7,909 |
Foreign currency derivative liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities | 4,229 | 2,127 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 311,730 | 216,476 |
Total liabilities | 0 | 0 |
Level 1 | U.S. agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Level 1 | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 254,422 | 192,051 |
Level 1 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Level 1 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 57,308 | 24,425 |
Level 1 | Foreign currency derivative assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Level 1 | Foreign currency derivative liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 1,710,910 | 1,529,418 |
Total liabilities | 4,229 | 2,127 |
Level 2 | U.S. agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 1,021,163 | 908,518 |
Level 2 | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 320,449 | 289,885 |
Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 362,364 | 323,106 |
Level 2 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Level 2 | Foreign currency derivative assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 6,934 | 7,909 |
Level 2 | Foreign currency derivative liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities | 4,229 | 2,127 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Total liabilities | 0 | 0 |
Level 3 | U.S. agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Level 3 | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Level 3 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Level 3 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Level 3 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Level 3 | Foreign currency derivative assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Level 3 | Foreign currency derivative liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities | $ 0 | $ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Carrying Amounts and Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Apr. 30, 2017 | Jan. 31, 2017 | Jun. 30, 2013 |
0.75% Convertible senior notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Net Carrying Amount Before Unamortized Debt Issuance Costs | $ 329,664 | $ 325,620 | |
Estimated Fair Value | $ 407,313 | 402,259 | |
Contractual interest rate | 0.75% | 0.75% | |
1.50% Convertible senior notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Net Carrying Amount Before Unamortized Debt Issuance Costs | $ 215,586 | 213,180 | |
Estimated Fair Value | $ 311,480 | $ 310,470 | |
Contractual interest rate | 1.50% | 1.50% |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Detail) - USD ($) | Apr. 30, 2017 | Jan. 31, 2017 | Jun. 30, 2013 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Closing price of company's common stock, dollars per share | $ 87.4 | ||
2018 Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Convertible senior notes, principal amount | $ 350,000,000 | $ 350,000,000 | $ 350,000,000 |
Contractual interest rate | 0.75% | 0.75% | |
2020 Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Convertible senior notes, principal amount | $ 250,000,000 | $ 250,000,000 | $ 250,000,000 |
Contractual interest rate | 1.50% | 1.50% |
Deferred Costs (Detail)
Deferred Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Apr. 30, 2017 | Apr. 30, 2016 | [1] | Jan. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||
Deferred sales commissions | $ 166,000 | $ 169,000 | ||
Amortization of deferred costs | $ 13,637 | $ 10,439 | ||
[1] | See Note 2 for a summary of adjustments. |
Property and Equipment, Net - S
Property and Equipment, Net - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | Apr. 30, 2017 | Jan. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 652,826 | $ 596,638 | |
Less accumulated depreciation and amortization | (248,724) | (230,761) | |
Property and equipment, net | 404,102 | 365,877 | [1] |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 6,592 | 6,592 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 144,657 | 115,302 | |
Computers, equipment and software | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 344,875 | 323,311 | |
Computers, equipment and software acquired under capital leases | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 16,830 | 18,298 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 26,552 | 24,462 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 113,320 | 108,673 | |
Construction in Progress Related to Owned Real Estate Projects | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 120,000 | $ 115,000 | |
[1] | See Note 2 for a summary of adjustments. |
Property and Equipment, Net (De
Property and Equipment, Net (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 27 | $ 22 |
Acquisition-related Intangibl52
Acquisition-related Intangible Assets, Net - Schedule of Acquired Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Apr. 30, 2017 | Apr. 30, 2016 | Jan. 31, 2017 | ||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets, gross | $ 65,900 | $ 65,900 | ||
Less accumulated amortization | (21,985) | (17,113) | ||
Acquisition-related intangible assets, net | 43,915 | 48,787 | [1] | |
Acquired developed technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets, gross | 64,900 | 64,900 | ||
Customer relationship assets | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets, gross | 1,000 | $ 1,000 | ||
Developed Technology and Customer Relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 5,000 | $ 1,000 | ||
[1] | See Note 2 for a summary of adjustments. |
Acquisition-related Intangibl53
Acquisition-related Intangible Assets, Net - Schedule of Future Amortization Expense (Detail) - Acquired developed technology and customer relationship assets $ in Thousands | Apr. 30, 2017USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Rolling Maturity [Abstract] | |
2,018 | $ 14,414 |
2,019 | 18,904 |
2,020 | 10,281 |
2,021 | 316 |
Total | $ 43,915 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Detail) - USD ($) $ in Thousands | Apr. 30, 2017 | Jan. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Cost method investments | $ 14,454 | $ 14,004 | |
Acquired land leasehold interest, net | 9,649 | 9,676 | |
Deposits | 4,024 | 3,488 | |
Net deferred tax assets | 3,784 | 4,336 | |
Other | 22,296 | 22,066 | |
Total | $ 54,207 | $ 53,570 | [1] |
[1] | See Note 2 for a summary of adjustments. |
Derivative Instruments (Detail)
Derivative Instruments (Detail) - Forward Contracts - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2017 | Jan. 31, 2017 | |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 325 | $ 252 |
Designated as Hedging Instrument | Maximum | ||
Derivative [Line Items] | ||
Derivative, remaining maturity | 25 months | |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 42 | $ 51 |
Not Designated as Hedging Instrument | Maximum | ||
Derivative [Line Items] | ||
Derivative, remaining maturity | 15 months |
Derivative Instruments - Fair V
Derivative Instruments - Fair Values of Outstanding Derivative Instruments (Detail) - USD ($) $ in Thousands | Apr. 30, 2017 | Jan. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 6,934 | |
Derivative Liabilities | 4,229 | |
Forward Contracts | Designated as Hedging Instrument | Prepaid expenses and other current assets and Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 5,882 | $ 7,149 |
Forward Contracts | Designated as Hedging Instrument | Accrued expenses and other current liabilities and Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 3,728 | 1,605 |
Forward Contracts | Not Designated as Hedging Instrument | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 1,052 | 760 |
Forward Contracts | Not Designated as Hedging Instrument | Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 501 | $ 522 |
Derivative Instruments - Gains
Derivative Instruments - Gains (losses) Associated with Foreign Currency Forward Contracts (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative instruments, gain (loss) expected to be reclassified from accumulated OCI within the next 12 months | $ 4,000 | |
Other expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Foreign currency forward contracts not designated as hedges | (6) | $ (1,319) |
Designated as Hedging Instrument | Revenues | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) reclassified from OCI into income (effective portion) | 234 | 110 |
Designated as Hedging Instrument | Other expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in income (amount excluded from effectiveness testing and ineffective portion) | 623 | 151 |
Designated as Hedging Instrument | Net change in market value of effective foreign currency forward exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in OCI (effective portion) | $ (975) | $ (10,954) |
Derivative Instruments - Offset
Derivative Instruments - Offsetting Assets (Detail) $ in Thousands | Apr. 30, 2017USD ($) |
Offsetting Assets [Line Items] | |
Gross Amounts of Recognized Assets | $ 6,934 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 6,934 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Financial Instruments | (3,801) |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Cash Collateral Received | 0 |
Net Assets Exposed | 3,133 |
Counterparty A | |
Offsetting Assets [Line Items] | |
Gross Amounts of Recognized Assets | 1,081 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 1,081 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Financial Instruments | (1,081) |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Cash Collateral Received | 0 |
Net Assets Exposed | 0 |
Counterparty B | |
Offsetting Assets [Line Items] | |
Gross Amounts of Recognized Assets | 5,827 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 5,827 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Financial Instruments | (2,720) |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Cash Collateral Received | 0 |
Net Assets Exposed | 3,107 |
Counterparty C | |
Offsetting Assets [Line Items] | |
Gross Amounts of Recognized Assets | 2 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 2 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Financial Instruments | 0 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Cash Collateral Received | 0 |
Net Assets Exposed | 2 |
Counterparty D | |
Offsetting Assets [Line Items] | |
Gross Amounts of Recognized Assets | 24 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 24 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Financial Instruments | 0 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Cash Collateral Received | 0 |
Net Assets Exposed | $ 24 |
Derivative Instruments - Offs59
Derivative Instruments - Offsetting Liabilities (Detail) $ in Thousands | Apr. 30, 2017USD ($) |
Offsetting Liabilities [Line Items] | |
Gross Amounts of Recognized Liabilities | $ 4,229 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 |
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets | 4,229 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Financial Instruments | (3,801) |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Cash Collateral Pledged | 0 |
Net Liabilities Exposed | 428 |
Counterparty A | |
Offsetting Liabilities [Line Items] | |
Gross Amounts of Recognized Liabilities | 1,509 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 |
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets | 1,509 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Financial Instruments | (1,081) |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Cash Collateral Pledged | 0 |
Net Liabilities Exposed | 428 |
Counterparty B | |
Offsetting Liabilities [Line Items] | |
Gross Amounts of Recognized Liabilities | 2,720 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 |
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets | 2,720 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Financial Instruments | (2,720) |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Cash Collateral Pledged | 0 |
Net Liabilities Exposed | $ 0 |
Convertible Senior Notes, Net60
Convertible Senior Notes, Net (Detail) $ / shares in Units, shares in Millions | 3 Months Ended | |||
Apr. 30, 2017USD ($)trading_day$ / sharesshares | Apr. 30, 2016USD ($) | Jan. 31, 2017USD ($) | Jun. 30, 2013USD ($) | |
2018 Notes | ||||
Debt Instrument [Line Items] | ||||
Contractual interest rate | 0.75% | 0.75% | ||
Convertible senior notes, principal amount | $ 350,000,000 | $ 350,000,000 | $ 350,000,000 | |
Liability issuance costs | 7,000,000 | |||
Equity issuance costs | 2,000,000 | |||
Amortization expense for liability issuance costs | $ 352,000 | $ 352,000 | ||
Remaining life of the Notes | 14 months | |||
Effective interest rates of the liability components | 5.75% | |||
2020 Notes | ||||
Debt Instrument [Line Items] | ||||
Contractual interest rate | 1.50% | 1.50% | ||
Convertible senior notes, principal amount | $ 250,000,000 | $ 250,000,000 | $ 250,000,000 | |
Liability issuance costs | 5,000,000 | |||
Equity issuance costs | 2,000,000 | |||
Amortization expense for liability issuance costs | $ 168,000 | $ 167,000 | ||
Remaining life of the Notes | 38 months | |||
Effective interest rates of the liability components | 6.25% | |||
Shares related to the convertible senior notes | ||||
Debt Instrument [Line Items] | ||||
Repurchase of notes percentage | 100.00% | |||
Exercise price of warrants (in dollars per share) | $ / shares | $ 107.96 | |||
Proceeds from sale of warrants | $ 93,000,000 | |||
Shares related to the convertible senior notes | Employee Stock Option | ||||
Debt Instrument [Line Items] | ||||
Shares covered by each purchased options or warrants (in shares) | shares | 7.3 | |||
Aggregate amount for Purchased Options | $ 144,000,000 | |||
Warrants expires in July 2018 | ||||
Debt Instrument [Line Items] | ||||
Shares covered by each purchased options or warrants (in shares) | shares | 4.2 | |||
Warrants expires in July 2020 | ||||
Debt Instrument [Line Items] | ||||
Shares covered by each purchased options or warrants (in shares) | shares | 3.1 | |||
Class A | 2018 Notes | ||||
Debt Instrument [Line Items] | ||||
Initial conversion rate | 12.0075 | |||
Principal amount converted into Class A Common Stock | $ 1,000 | |||
Initial conversion price (in dollars per share) | $ / shares | $ 83.28 | |||
Class A | 2020 Notes | ||||
Debt Instrument [Line Items] | ||||
Initial conversion rate | 12.2340 | |||
Principal amount converted into Class A Common Stock | $ 1,000 | |||
Initial conversion price (in dollars per share) | $ / shares | $ 81.74 | |||
Debt Conversion, Option One | Shares related to the convertible senior notes | ||||
Debt Instrument [Line Items] | ||||
Threshold trading days (in trading days) | trading_day | 20 | |||
Threshold consecutive trading days | 30 days | |||
Threshold percentage of conversion price | 130.00% | |||
Debt Conversion, Option Two | Shares related to the convertible senior notes | ||||
Debt Instrument [Line Items] | ||||
Threshold trading days (in trading days) | trading_day | 5 | |||
Threshold consecutive trading days | 5 days | |||
Debt Conversion, Option Two | Shares related to the convertible senior notes | Maximum | ||||
Debt Instrument [Line Items] | ||||
Threshold percentage of conversion price | 98.00% |
Convertible Senior Notes, Net -
Convertible Senior Notes, Net - Schedule of Senior Notes (Detail) - USD ($) | 3 Months Ended | |||
Apr. 30, 2017 | Jan. 31, 2017 | Jun. 30, 2013 | ||
Convertible Debt [Abstract] | ||||
Net carrying amount | $ 541,393,000 | $ 534,423,000 | [1] | |
2018 Notes | ||||
Convertible Debt [Abstract] | ||||
Principal | 350,000,000 | 350,000,000 | $ 350,000,000 | |
Unamortized debt discount | (20,336,000) | (24,380,000) | ||
Net carrying amount before unamortized debt issuance costs | 329,664,000 | 325,620,000 | ||
Unamortized debt issuance costs | (1,698,000) | (2,050,000) | ||
Net carrying amount | 327,966,000 | 323,570,000 | ||
Carrying amount of the equity component | 74,892,000 | 74,892,000 | ||
Equity issuance costs | 2,000,000 | |||
2020 Notes | ||||
Convertible Debt [Abstract] | ||||
Principal | 250,000,000 | 250,000,000 | $ 250,000,000 | |
Unamortized debt discount | (34,414,000) | (36,820,000) | ||
Net carrying amount before unamortized debt issuance costs | 215,586,000 | 213,180,000 | ||
Unamortized debt issuance costs | (2,159,000) | (2,327,000) | ||
Net carrying amount | 213,427,000 | 210,853,000 | ||
Carrying amount of the equity component | 66,007,000 | $ 66,007,000 | ||
Equity issuance costs | $ 2,000,000 | |||
[1] | See Note 2 for a summary of adjustments. |
Convertible Senior Notes, Net62
Convertible Senior Notes, Net - Schedule of Interest Expense Recognized Related to Convertible Senior Notes (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
2018 Notes | ||
Debt Instrument [Line Items] | ||
Contractual interest expense | $ 656 | $ 656 |
Interest cost related to amortization of debt issuance costs | 352 | 352 |
Interest cost related to amortization of the debt discount | 4,044 | 3,819 |
2020 Notes | ||
Debt Instrument [Line Items] | ||
Contractual interest expense | 938 | 938 |
Interest cost related to amortization of debt issuance costs | 168 | 167 |
Interest cost related to amortization of the debt discount | $ 2,406 | $ 2,261 |
Commitments and Contingencies (
Commitments and Contingencies (Detail) $ in Millions | 1 Months Ended | 3 Months Ended | |
Jan. 31, 2014USD ($)a | Apr. 30, 2017USD ($) | Apr. 30, 2016USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expense | $ 19 | $ 17 | |
Lease term period | 95 years | ||
Parcel of vacant land (in acres) | a | 6.9 | ||
Lease rent, prepaid | $ 2 | ||
Annual rent payments plus increases based on increases in consumer price index | $ 0.2 |
Common Stock and Stockholders64
Common Stock and Stockholders' Equity - Additional Information (Detail) shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended |
Mar. 31, 2017shares | Apr. 30, 2017USD ($)vote / sharesshares | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Period of which options become exercisable | 10 years | |
Period of vesting | 5 years | |
Unrecognized compensation cost | $ | $ 2 | |
Unrecognized compensation cost recognized over weighted-average period | 6 months | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Period of vesting | 4 years | |
Unrecognized compensation cost recognized over weighted-average period | 3 years 1 month | |
Unrecognized compensation cost - other than options | $ | $ 1,100 | |
Class A | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock, outstanding (in shares) | 131 | |
Common stock, votes per share | vote / shares | 1 | |
Class B | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock, outstanding (in shares) | 75 | |
Common stock, votes per share | vote / shares | 10 | |
2012 Equity Incentive Plan | Class A | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share reserve increased (in shares) | 10 | |
Common stock available for future grants (in shares) | 62 | |
Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share reserve increased (in shares) | 2 | |
Common stock available for future grants (in shares) | 8 | |
Percentage of fair market value of stock at which employees are granted shares | 85.00% |
Common Stock and Stockholders65
Common Stock and Stockholders' Equity - Stock Options (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Apr. 30, 2017 | Jan. 31, 2017 | |
Outstanding Stock Options | ||
Beginning Balance (in shares) | 9,096,592 | |
Stock option grants (in shares) | 0 | |
Stock options exercised (in shares) | (625,290) | |
Stock options canceled (in shares) | (3,575) | |
Ending Balance (in shares) | 8,467,727 | |
Vested and expected to vest (in shares) | 8,465,367 | |
Exercisable (in shares) | 8,364,499 | |
Weighted- Average Exercise Price | ||
Beginning Balance (in dollars per share) | $ 4.34 | |
Stock option grants (in dollars per share) | 0 | |
Stock options exercised (in dollars per share) | 3.60 | |
Stock options canceled (in dollars per share) | 9.08 | |
Ending Balance (in dollars per share) | 4.39 | |
Vested and expected to vest, Weighted-Average Exercise Price (in dollars per share) | 4.39 | |
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 4.32 | |
Aggregate Intrinsic Value (in millions) | $ 703 | $ 716 |
Vested and expected to vest, Aggregate Intrinsic Value | 703 | |
Exercisable, Aggregate Intrinsic Value | $ 695 |
Common Stock and Stockholders66
Common Stock and Stockholders' Equity - Restricted Stock Units Activity (Detail) - Restricted Stock Units | 3 Months Ended |
Apr. 30, 2017$ / sharesshares | |
Restricted Stock Units | |
Beginning Balance, Number of Shares | shares | 11,502,721 |
RSUs granted, Number of Shares | shares | 5,726,171 |
RSUs vested, Number of Shares | shares | (1,987,516) |
RSUs forfeited, Number of Shares | shares | (272,289) |
Ending Balance, Number of Shares | shares | 14,969,087 |
Weighted-Average Grant Date Fair Value | |
Beginning Balance (in dollars per share) | $ / shares | $ 78.45 |
RSUs granted (in dollars per share) | $ / shares | 83.77 |
RSUs vested (in dollars per share) | $ / shares | 76.70 |
RSUs forfeited (in dollars per share) | $ / shares | 71.93 |
Ending Balance (in dollars per share) | $ / shares | $ 80.84 |
Common Stock and Stockholders67
Common Stock and Stockholders' Equity - PRSU's (Detail) - All Other Employees - Performance Based Restricted Stock Unit PRSU - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended |
Apr. 30, 2017 | Jan. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
RSUs granted, number of Shares | 0.3 | |
Compensation related cost | $ 6 |
Unearned Revenue and Performa68
Unearned Revenue and Performance Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Deferred Revenue Disclosure [Abstract] | ||
Subscription revenue recognized that was included in total unearned revenue balance at beginning of period | $ 361 | $ 251 |
Revenue is expected to be recognized from remaining performance obligations for subscription contracts | $ 4,000 | |
Remaining performance obligations to be recognized in the next 2 years | 66.67% | |
Recognition period | 24 months |
Other Expense, Net - Additional
Other Expense, Net - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | ||
Other Income and Expenses [Abstract] | |||
Interest income | $ 4,029 | $ 2,214 | |
Interest expense | (6,986) | (8,031) | |
Other income (expense) | 1,294 | (21) | |
Other expense, net | $ (1,663) | $ (5,838) | [1] |
[1] | See Note 2 for a summary of adjustments. |
Income Taxes (Detail)
Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | ||
Income Tax Disclosure [Abstract] | |||
Provision for income taxes | $ 2,181 | $ 1,135 | [1] |
[1] | See Note 2 for a summary of adjustments. |
Net Loss Per Share - Summary of
Net Loss Per Share - Summary of Calculation of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | ||
Denominator: | |||
Weighted-average common shares outstanding (in shares) | 203,818 | 194,529 | [1] |
Basic and diluted net loss per share (in dollars per share) | $ (0.31) | $ (0.40) | [1] |
Class A | |||
Numerator: | |||
Allocation of distributed net loss | $ (40,599) | $ (47,433) | |
Denominator: | |||
Weighted-average common shares outstanding (in shares) | 129,206 | 117,537 | |
Basic and diluted net loss per share (in dollars per share) | $ (0.31) | $ (0.40) | |
Class B | |||
Numerator: | |||
Allocation of distributed net loss | $ (23,445) | $ (31,070) | |
Denominator: | |||
Weighted-average common shares outstanding (in shares) | 74,612 | 76,992 | |
Basic and diluted net loss per share (in dollars per share) | $ (0.31) | $ (0.40) | |
[1] | See Note 2 for a summary of adjustments. |
Net Loss Per Share - Summary 72
Net Loss Per Share - Summary of Diluted Net Loss Per Common Share (Detail) - shares shares in Thousands | 3 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive securities (in shares) | 38,678 | 40,385 |
Outstanding common stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive securities (in shares) | 8,468 | 11,843 |
Shares subject to repurchase | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive securities (in shares) | 70 | 492 |
Unvested restricted stock awards, units, and PRSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive securities (in shares) | 15,133 | 13,214 |
Shares related to the convertible senior notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive securities (in shares) | 7,261 | 7,261 |
Shares subject to warrants related to the issuance of convertible senior notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive securities (in shares) | 7,261 | 7,261 |
Shares issuable pursuant to the ESPP | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive securities (in shares) | 485 | 314 |
Related Party Transactions (Det
Related Party Transactions (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Jan. 31, 2014 | Apr. 30, 2017 | Apr. 30, 2016 | |
Related Party Transaction [Line Items] | |||
Term of agreements (in years) | 95 years | ||
Management | |||
Related Party Transaction [Line Items] | |||
Term of agreements (in years) | 10 years | ||
Total rent due under agreements fiscal year end January 31, 2018 | $ 9 | ||
Total rent due under agreements | 91 | ||
Rent expense | $ 2 | $ 2 |
Geographic Information Summary
Geographic Information Summary of Revenues by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | ||
Revenue from External Customer [Line Items] | |||
Revenues | $ 479,861 | $ 347,677 | [1] |
United States | |||
Revenue from External Customer [Line Items] | |||
Revenues | 383,171 | 286,349 | |
Other countries | |||
Revenue from External Customer [Line Items] | |||
Revenues | $ 96,690 | $ 61,328 | |
[1] | See Note 2 for a summary of adjustments. |
Geographic Information - Long-L
Geographic Information - Long-Lived Assets (Details) - USD ($) $ in Thousands | Apr. 30, 2017 | Jan. 31, 2017 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 404,102 | $ 365,877 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 356,186 | 321,442 |
Ireland | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 39,356 | 35,720 |
Other countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 8,560 | $ 8,715 |