Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 31, 2016 | Sep. 01, 2016 | |
Document and Entity Information | ||
Entity Registrant Name | SPLUNK INC | |
Entity Central Index Key | 1,353,283 | |
Document Type | 10-Q | |
Document Period End Date | Jul. 31, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --01-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 134,543,363 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jul. 31, 2016 | Jan. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 409,949 | $ 424,541 |
Investments, current portion | 610,660 | 584,498 |
Accounts receivable, net | 131,262 | 181,665 |
Prepaid expenses and other current assets | 26,882 | 26,565 |
Total current assets | 1,178,753 | 1,217,269 |
Investments, non-current | 5,000 | 1,500 |
Property and equipment, net | 151,953 | 134,995 |
Intangible assets, net | 43,410 | 49,482 |
Goodwill | 124,642 | 123,318 |
Other assets | 13,833 | 10,275 |
Total assets | 1,517,591 | 1,536,839 |
Current liabilities: | ||
Accounts payable | 5,429 | 4,868 |
Accrued payroll and compensation | 64,913 | 95,898 |
Accrued expenses and other liabilities | 60,273 | 49,879 |
Deferred revenue, current portion | 367,834 | 347,121 |
Total current liabilities | 498,449 | 497,766 |
Deferred revenue, non-current | 99,525 | 102,382 |
Other liabilities, non-current | 90,476 | 77,277 |
Total non-current liabilities | 190,001 | 179,659 |
Total liabilities | 688,450 | 677,425 |
Commitments and contingencies (Note 3) | ||
Stockholders' equity: | ||
Common stock: $0.001 par value; 1,000,000,000 shares authorized; 134,448,442 shares issued and outstanding at July 31, 2016, and 131,543,467 shares issued and outstanding at January 31, 2016 | 134 | 132 |
Accumulated other comprehensive loss | (1,774) | (3,770) |
Additional paid-in capital | 1,683,869 | 1,528,647 |
Accumulated deficit | (853,088) | (665,595) |
Total stockholders' equity | 829,141 | 859,414 |
Total liabilities and stockholders' equity | $ 1,517,591 | $ 1,536,839 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jul. 31, 2016 | Jan. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 134,448,442 | 131,543,467 |
Common stock, shares outstanding | 134,448,442 | 131,543,467 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | ||
Revenues | |||||
License | $ 115,695 | $ 87,960 | $ 216,687 | $ 159,832 | |
Maintenance and services | 97,058 | 60,366 | 182,018 | 114,159 | |
Total revenues | 212,753 | 148,326 | 398,705 | 273,991 | |
Cost of revenues | |||||
License | [1] | 2,868 | 1,813 | 5,830 | 2,974 |
Maintenance and services | [1] | 41,748 | 23,227 | 78,286 | 45,151 |
Total cost of revenues | [1] | 44,616 | 25,040 | 84,116 | 48,125 |
Gross profit | 168,137 | 123,286 | 314,589 | 225,866 | |
Operating expenses | |||||
Research and development | [1] | 67,224 | 48,308 | 134,595 | 93,006 |
Sales and marketing | [1] | 150,228 | 111,786 | 295,379 | 213,775 |
General and administrative | [1] | 34,312 | 28,760 | 66,385 | 55,632 |
Total operating expenses | [1] | 251,764 | 188,854 | 496,359 | 362,413 |
Operating loss | (83,627) | (65,568) | (181,770) | (136,547) | |
Interest and other income (expense), net | |||||
Interest income (expense), net | (797) | 425 | (1,200) | 785 | |
Other income (expense), net | (1,063) | (295) | (2,188) | (206) | |
Total interest and other income (expense), net | (1,860) | 130 | (3,388) | 579 | |
Loss before income taxes | (85,487) | (65,438) | (185,158) | (135,968) | |
Income tax provision (benefit) | 1,110 | (10,149) | 2,335 | (9,493) | |
Net loss | $ (86,597) | $ (55,289) | $ (187,493) | $ (126,475) | |
Net loss per share: | |||||
Basic and diluted (in dollars per share) | $ (0.65) | $ (0.44) | $ (1.42) | $ (1.01) | |
Weighted-average shares outstanding: | |||||
Basic and diluted (in shares) | 133,041 | 126,621 | 132,310 | 125,602 | |
Stock-based compensation | $ 180,233 | $ 129,718 | |||
[1] | Amounts include stock-based compensation expense, as follows: Cost of revenues, $7,310 thousand, $5,662 thousand, $14,865 thousand and $12,194 thousand; Research and development, $27,742 thousand, $19,301 thousand, $56,948 thousand and $39,376 thousand; Sales and marketing, $39,371 thousand, $28,210 thousand, $79,604 thousand and $57,820 thousand; General and administrative, $14,440 thousand, $10,436 thousand, $28,816 thousand and $20,328 thousand for the three and six months ended July 31, 2016 and 2015, respectively. |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | |
Stock-based compensation | $ 180,233 | $ 129,718 | ||
Cost of revenues | ||||
Stock-based compensation | $ 7,310 | $ 5,662 | 14,865 | 12,194 |
Research and development | ||||
Stock-based compensation | 27,742 | 19,301 | 56,948 | 39,376 |
Sales and marketing | ||||
Stock-based compensation | 39,371 | 28,210 | 79,604 | 57,820 |
General and administrative | ||||
Stock-based compensation | $ 14,440 | $ 10,436 | $ 28,816 | $ 20,328 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | |
Net loss | $ (86,597) | $ (55,289) | $ (187,493) | $ (126,475) |
Other comprehensive gain (loss): | ||||
Net unrealized gain (loss) on investments | 17 | (20) | 356 | (45) |
Foreign currency translation adjustments | (558) | (1,297) | 1,640 | (1,282) |
Total other comprehensive gain (loss) | (541) | (1,317) | 1,996 | (1,327) |
Comprehensive loss | $ (87,138) | $ (56,606) | $ (185,497) | $ (127,802) |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Cash flows from operating activities | ||
Net loss | $ (187,493) | $ (126,475) |
Adjustments to reconcile net loss to net cash provided by operating activities | ||
Depreciation and amortization | 14,635 | 7,776 |
Amortization of investment premiums | 447 | 722 |
Stock-based compensation | 180,233 | 129,718 |
Deferred income taxes | (698) | (11,305) |
Excess tax benefit from employee stock plans | (1,027) | (652) |
Changes in operating assets and liabilities, net of acquisitions | ||
Accounts receivable, net | 50,403 | 28,719 |
Prepaid expenses, other current and non-current assets | (3,177) | 12,468 |
Accounts payable | 265 | (100) |
Accrued payroll and compensation | (30,985) | (8,698) |
Accrued expenses and other liabilities | 13,579 | (7,085) |
Deferred revenue | 17,856 | 17,165 |
Net cash provided by operating activities | 54,038 | 42,253 |
Cash flows from investing activities | ||
Purchases of investments | (316,528) | (219,195) |
Maturities of investments | 290,275 | 247,000 |
Acquisitions, net of cash acquired | 0 | (142,693) |
Purchases of property and equipment | (14,250) | (9,224) |
Other investment activities | (3,500) | (1,500) |
Net cash used in investing activities | (44,003) | (125,612) |
Cash flows from financing activities | ||
Proceeds from exercise of stock options | 5,603 | 10,736 |
Taxes paid related to net share settlement of equity awards | (46,822) | 0 |
Excess tax benefit from employee stock plans | 1,027 | 652 |
Proceeds from employee stock purchase plans | 15,183 | 10,906 |
Net cash provided (used in) by financing activities | (25,009) | 22,294 |
Effect of exchange rate changes on cash and cash equivalents | 382 | (50) |
Net increase in cash and cash equivalents | (14,592) | (61,115) |
Cash and cash equivalents | ||
Beginning of period | 424,541 | 387,315 |
End of period | 409,949 | 326,200 |
Supplemental disclosures | ||
Cash paid for income taxes | 1,726 | 706 |
Interest Paid | 1,920 | 0 |
Non-cash investing and financing activities | ||
Change in accrued purchases of property and equipment | (1,016) | (145) |
Vesting of early exercised options | 0 | 56 |
Change in capitalized construction costs related to build-to-suit lease | $ 10,065 | $ 22,109 |
Description of the Business and
Description of the Business and Significant Accounting Policies | 6 Months Ended |
Jul. 31, 2016 | |
Accounting Policies [Abstract] | |
Description of the Business and Significant Accounting Policies | Description of the Business and Significant Accounting Policies Business Splunk Inc. (“we,” “us,” “our”) provides innovative software solutions that enable organizations to gain real-time operational intelligence by harnessing the value of their data. Our offerings enable users to collect, index, search, explore, monitor and analyze data regardless of format or source. Our offerings address large and diverse data sets, commonly referred to as big data, and are specifically tailored for machine data. Machine data is produced by nearly every software application and electronic device and contains a definitive, time-stamped record of various activities, such as transactions, customer and user activities and security threats. Our offerings help users derive new insights from machine data that can be used to, among other things, improve service levels, reduce operational costs, mitigate security risks, demonstrate and maintain compliance, and drive better business decisions. We were incorporated in California in October 2003 and reincorporated in Delaware in May 2006. Fiscal Year Our fiscal year ends on January 31. References to fiscal 2017 or fiscal year 2017, for example, refer to the fiscal year ending January 31, 2017. 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. 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. The condensed consolidated balance sheet data as of January 31, 2016 was derived from audited financial statements, but does not include all disclosures required by GAAP. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Annual Report on Form 10-K for the fiscal year ended January 31, 2016 , filed with the SEC on March 30, 2016 . There have been no changes in the significant accounting policies from those that were disclosed in the audited consolidated financial statements for the fiscal year ended January 31, 2016 included in the Annual Report on Form 10-K. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to state fairly the financial position, results of operations, comprehensive loss and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year 2017. Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13 (Topic 326), Financial Instruments - Credit Losses. The amendments in this update require a financial asset (or a group of financial assets) measured at an amortized cost basis to be presented at the net amount expected to be collected. The new approach to estimating credit losses (referred to as the current expected credit losses model) applies to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loans and held-to-maturity debt securities. The standard is effective for our first quarter of fiscal 2021, although early adoption is permitted. We are currently evaluating adoption methods and whether this standard will have a material impact on our condensed consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09 (Topic 718), Compensation - Stock Compensation, which has been issued as part of its Simplification Initiative. The areas for simplification in this update involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The standard is effective for our first quarter of fiscal 2018, although early adoption is permitted. We are currently evaluating adoption methods and whether this standard will have a material impact on our condensed consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02 (Topic 842), Leases, which supersedes the lease recognition requirements in ASC Topic 840, Leases. The standard requires an entity to recognize right-of-use assets and lease liabilities arising from a lease, for both financing and operating leases, in the condensed consolidated balance sheets but recognize the impact of such leases on the condensed consolidated statement of operations and cash flows in a similar manner under current GAAP. The standard also requires additional qualitative and quantitative disclosures. The standard is effective for our first quarter of fiscal 2020, although early adoption is permitted. We are currently evaluating adoption methods and whether this standard will have a material impact on our condensed consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09 (Topic 606), Revenue from Contracts with Customers, which supersedes the revenue recognition requirements in Accounting Standards Codification 605, Revenue Recognition and establishes a new revenue standard. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenues and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations, which clarifies the guidance in the new revenue standard on assessing whether an entity is a principal or an agent in a revenue transaction. This conclusion impacts whether an entity reports revenue on a gross or net basis. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing, which clarifies the guidance in the new revenue standard regarding an entity’s identification of its performance obligations in a contract. In May 2016, the FASB issued ASU No. 2016-12, Narrow-Scope Improvements and Practical Expedients, which amends the guidance in the new revenue standard on collectibility, non-cash consideration, presentation of sales tax, and transition. The standard permits the use of either the retrospective or cumulative effect transition method. This new revenue standard, as amended by ASU No. 2015-14, is effective in the first quarter of fiscal year 2019. Early adoption is permitted, but not earlier than the original effective date for annual and interim periods. We are currently evaluating adoption methods and the effect that the updated standard will have on our condensed consolidated financial statements and related disclosures. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting periods covered by the financial statements and accompanying notes. In particular, we make estimates with respect to the fair value of multiple elements in revenue recognition, uncollectible accounts receivable, the assessment of the useful life and recoverability of long-lived assets (property and equipment, goodwill and identified intangibles), stock-based compensation expense, the fair value of assets acquired and liabilities assumed for business combinations, income taxes and contingencies. Actual results could differ from those estimates. Segments We operate our business as one operating segment: the development and marketing of software solutions that enable our customers to gain real-time operational intelligence by harnessing the value of their data. Our chief operating decision maker is our Chief Executive Officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources. Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Splunk Inc. and its direct and indirect wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. Foreign Currency The functional currencies of our foreign subsidiaries are their respective local currencies. Translation adjustments arising from the use of differing exchange rates from period to period are included in Accumulated other comprehensive loss within the condensed consolidated statement of stockholders’ equity. Foreign currency transaction gains and losses are included in Other income (expense), net and were not material for the three and six months ended July 31, 2016 and 2015 . All assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Expenses are translated at the average exchange rate during the period. Equity transactions are translated using historical exchange rates. Foreign Currency Contracts In fiscal 2016, we began to use foreign currency forward contracts as a part of our strategy to manage exposure related to foreign currency denominated monetary assets and liabilities. These contracts typically have maturities of one month. They are not designated as cash flow or fair value hedges under ASC Topic 815, Derivatives and Hedging. These contracts hedge assets and liabilities that are denominated in foreign currencies and are carried at fair value as either assets or liabilities on the condensed consolidated balance sheets with changes in the fair value recorded to Other income (expense), net in the condensed consolidated statements of operations. Investments We determine the appropriate classification of our investments at the time of purchase and reevaluate such determination at each balance sheet date. Securities are classified as available-for-sale and are carried at fair value, with the change in unrealized gains and losses, net of tax, reported as a separate component on the condensed consolidated statements of comprehensive income (loss). Fair value is determined based on quoted market rates when observable or utilizing data points that are observable, such as quoted prices, interest rates and yield curves. Declines in fair value judged to be other-than-temporary on securities available for sale are included as a component of investment income. In order to determine whether a decline in value is other-than-temporary, we evaluate, among other factors, the duration and extent to which the fair value has been less than the carrying value and our intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair value. The cost of securities sold is based on the specific-identification method. Interest on securities classified as available-for-sale is included as a component of Interest income, net. Business Combinations We use our best estimates and assumptions to allocate the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Our estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. In addition, uncertain tax positions and tax-related valuation allowances are initially established in connection with a business combination as of the acquisition date. We continue to collect information and reevaluate these estimates and assumptions quarterly and record any adjustments to our preliminary estimates to goodwill provided that we are within the measurement period. Upon the conclusion of the final determination of the fair value of assets acquired or liabilities assumed during the measurement period, any subsequent adjustments are recorded to our condensed consolidated statements of operations. |
Investments and Fair Value Meas
Investments and Fair Value Measurements | 6 Months Ended |
Jul. 31, 2016 | |
Investments, Debt And Equity Securities And Fair Value Disclosures [Abstract] | |
Investments and Fair Value Measurements | Investments and Fair Value Measurements The carrying amounts of certain of our financial instruments including cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate fair value due to their short-term maturities. Assets and liabilities recorded at fair value in the financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels that are directly related to the amount of subjectivity associated with the inputs to the valuation of these assets or liabilities are as follows: Level 1—Observable inputs, such as quoted prices in active markets for identical assets or liabilities. Level 2—Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments and consider factors specific to the asset or liability. The following table sets forth the fair value of our financial assets and liabilities that were measured on a recurring basis as of July 31, 2016 and January 31, 2016 (in thousands): July 31, 2016 January 31, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Money market funds $ 346,910 $ — $ — $ 346,910 $ 374,571 $ — $ — $ 374,571 U.S. treasury securities — 610,660 — 610,660 — 607,892 — 607,892 Other — — 3,000 3,000 — — 1,500 1,500 Reported as: Assets: Cash and cash equivalents $ 346,910 $ 397,965 Investments, current portion 610,660 584,498 Investments, non-current 3,000 1,500 Total $ 960,570 $ 983,963 Our investments in money market funds are measured at fair value on a recurring basis. These money market funds are actively traded and reported daily through a variety of sources. The fair value of the money market fund investments is classified as Level 1. The following table represents our investments in U.S. treasury securities, which we have classified as available-for-sale investments as of July 31, 2016 (in thousands): July 31, 2016 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Investments, current portion: U.S. treasury securities $ 610,361 $ 364 $ (65 ) $ 610,660 Total available-for-sale investments in U.S. treasury securities $ 610,361 $ 364 $ (65 ) $ 610,660 As of July 31, 2016 , the following marketable securities were in an unrealized loss position (in thousands): Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. treasury securities $ 119,072 $ (65 ) $ — $ — $ 119,072 $ (65 ) As of July 31, 2016 , we did not consider any of our investments to be other-than-temporarily impaired. The contractual maturities of our investments in U.S. treasury securities are as follows (in thousands): July 31, 2016 Due within one year $ 610,660 Total $ 610,660 Investments with maturities of less than 12 months from the balance sheet date are classified as current assets, which are available for use to fund current operations. Investments with maturities greater than 12 months from the balance sheet date are classified as long-term assets. Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs During fiscal 2016, we made an investment in the form of a convertible promissory note in a privately-held company that we have classified as an available-for-sale investment, which is included in investments, non-current, on our condensed consolidated balance sheets. During fiscal 2017, we made an additional $1.5 million convertible promissory note investment in this privately-held company. These investments are recorded at fair value using significant unobservable inputs or data in an inactive market and the valuation requires our judgment due to the absence of quoted prices in active markets and inherent lack of liquidity. Unrealized gains and losses on our available-for-sale investments are excluded from earnings and reported, net of tax, as a separate component on the condensed consolidated statements of comprehensive income (loss). During the six months ended July 31, 2016, we have not recognized any unrealized gains or losses or an other-than-temporary impairment charge on these investments. The carrying value of these investments were $3.0 million and $1.5 million as of July 31, 2016 and January 31, 2016 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Lease Commitments We lease our office spaces under non-cancelable leases and rent expense associated with our operating leases is recognized on a straight-line basis over the lease term. Rent expense was $3.9 million and $3.4 million for the three months ended July 31, 2016 and 2015 , respectively, and $8.6 million and $6.3 million for the six months ended July 31, 2016 and 2015 , respectively. On August 24, 2015, we entered into an office lease for approximately 235,000 square feet located at 500 Santana Row, San Jose, California. This lease is expected to commence in the third quarter of fiscal 2017, subject to the completion of certain pre-occupancy improvements. Our total obligation for the base rent is approximately $120.5 million . The following summarizes our operating lease commitments as of July 31, 2016 (in thousands): Payments Due by Period Total Less Than 1 1-3 years 3-5 years More Than 5 Operating lease commitments (1) $ 183,596 $ 18,426 $ 48,264 $ 37,048 $ 79,858 _________________________ (1) We entered into sublease agreements for portions of our office space and the future rental income of $1.5 million from these agreements has been included as an offset to our future minimum rental payments. Financing Lease Obligation On April 29, 2014, we entered into an office lease (the “Lease”) for approximately 182,000 square feet located at 270 Brannan Street, San Francisco, California (the “Premises”) for a term of 84 months. Our total obligation for the base rent is approximately $92.0 million . On May 13, 2014, we entered into an irrevocable, standby letter of credit with Silicon Valley Bank for $6.0 million to serve as a security deposit for the Lease. As a result of our involvement during the construction period, whereby we had certain indemnification obligations related to the construction, we were considered for accounting purposes only, the owner of the construction project under build-to-suit lease accounting. We have recorded estimated project construction costs incurred by the landlord as an asset and a corresponding long term liability in “Property and equipment, net” and “Other liabilities, non-current,” respectively, on our condensed consolidated balance sheets. During the construction period, we increased the asset and corresponding long term liability as additional building costs were incurred by the landlord. The landlord completed the construction of the Premises in February 2016 and we have determined that the lease does not meet the criteria for “sale-leaseback” treatment, due to our continuing involvement in the project resulting from our standby letter of credit. Accordingly, the Lease will continue to be accounted for as a financing obligation. As of July 31, 2016 , future payments on the financing lease obligation are as follows (in thousands): Fiscal Period: Remaining six months of fiscal 2017 $ 3,135 Fiscal 2018 11,683 Fiscal 2019 12,510 Fiscal 2020 12,886 Fiscal 2021 13,272 Fiscal 2022 13,670 Thereafter 21,977 Total future minimum lease payments $ 89,133 Legal Proceedings We are subject to certain routine legal and regulatory proceedings, as well as demands and claims that arise in the normal course of our 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 impact of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. In our opinion, resolution of any pending claims (either individually or in the aggregate) is not expected to have a material adverse impact on our condensed consolidated results of operations, cash flows or financial position, nor is it possible to provide an estimated amount of any such loss. However, depending on the nature and timing of any such dispute, an unfavorable resolution of a matter could materially affect our future results of operations or cash flows, or both, in a particular quarter. Indemnification Arrangements During the ordinary course of business, we may indemnify, hold harmless and agree to reimburse for losses suffered or incurred, our customers, vendors and their affiliates for certain intellectual property infringement and other claims by third parties with respect to our offerings, in connection with our commercial license arrangements or related to general business dealings with those parties. As permitted under Delaware law, we have entered into indemnification agreements with our officers, directors and certain employees, indemnifying them for certain events or occurrences while they serve as our officers or directors or those of our direct and indirect subsidiaries. To date, there have not been any costs incurred in connection with such indemnification obligations; therefore, there is no accrual of such amounts at July 31, 2016 . We are unable to estimate the maximum potential impact of these indemnifications on our future results of operations. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jul. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation and amortization. These assets are depreciated and amortized using the straight-line method over their estimated useful lives. Property and equipment consisted of the following (in thousands): As of July 31, 2016 January 31, 2016 Computer equipment and software $ 49,356 $ 43,883 Furniture and fixtures 14,953 13,398 Leasehold and building improvements (1) 49,266 41,028 Building (2) 82,250 72,186 195,825 170,495 Less: accumulated depreciation and amortization (43,872 ) (35,500 ) Property and equipment, net $ 151,953 $ 134,995 _________________________ (1) Includes costs related to assets not yet placed into service of $9.6 million and $28.9 million , as of July 31, 2016 and January 31, 2016 , respectively. (2) This relates to the capitalization of construction costs in connection with our build-to-suit lease obligation, where we are considered the owner of the asset, for accounting purposes only. There is a corresponding long-term liability for this asset on our condensed consolidated balance sheets under “Other liabilities, non-current.” Refer to Note 3 “Commitments and Contingencies” for details. Depreciation and amortization expense on Property and Equipment, net was $5.1 million and $2.5 million for the three months ended July 31, 2016 and 2015 , respectively, and $8.4 million and $4.8 million for the six months ended July 31, 2016 and 2015 , respectively. |
Acquisitions, Goodwill and Inta
Acquisitions, Goodwill and Intangible Assets | 6 Months Ended |
Jul. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions, Goodwill and Intangible Assets | Acquisitions, Goodwill and Intangible Assets Metafor Software On June 23, 2015, we acquired 100% of the voting equity interest of Metafor Software Inc. (“Metafor Software”), a privately-held British Columbia corporation, which develops technology that provides anomaly detection and behavioral analytics for IT operations. This acquisition has been accounted for as a business combination. The purchase price of $16.4 million , paid in cash, was preliminarily allocated as follows: $2.7 million to identifiable intangible assets, $0.5 million to net assets acquired and $0.1 million to net deferred tax assets, with the excess $13.1 million of the purchase price over the fair value of net tangible and intangible assets acquired recorded as goodwill, allocated to our one operating segment. Goodwill is primarily attributable to the value expected from the synergies of the combination, including accelerating our anomaly detection capabilities for our core IT operations and security use cases. This goodwill is not deductible for income tax purposes. The results of operations of Metafor Software, which are not material, have been included in our condensed consolidated financial statements from the date of purchase. Pro forma results of operations of Metafor Software have not been presented as we do not consider the results to have a material effect on any of the periods presented in our condensed consolidated statements of operations. The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands, except useful life): Fair Value Useful Life (months) Developed technology $ 2,300 48 Other acquired intangible assets 370 36 Total intangible assets acquired $ 2,670 Caspida On July 9, 2015, we acquired 100% of the voting equity interest of Caspida, Inc. (“Caspida”), a privately-held Delaware corporation, which develops technology that provides behavioral analytics to help detect, respond to and mitigate advanced security threats and insider security threats. This acquisition has been accounted for as a business combination. The purchase price of $128.4 million , paid in cash, was preliminarily allocated as follows: $45.8 million to identifiable intangible assets, $11.4 million to net deferred tax liability and $1.2 million to net assets acquired, with the excess $92.8 million of the purchase price over the fair value of net tangible and intangible assets acquired recorded as goodwill, allocated to our one operating segment. Goodwill is primarily attributable to the value expected from the synergies of the combination, including combined selling opportunities with our products as well as our ability to sell into the security market. This goodwill is not deductible for income tax purposes. The results of operations of Caspida, which are not material, have been included in our condensed consolidated financial statements from the date of purchase. Per the terms of the merger agreement with Caspida, certain unvested shares of stock and unvested stock options held by Caspida employees were canceled and exchanged for unvested restricted stock units and replacement stock options to purchase shares of our common stock under our 2012 Equity Incentive Plan. Additionally, certain shares of stock held by key employees of Caspida were canceled and exchanged for unregistered restricted shares of our common stock subject to vesting. The fair value of $61.6 million of these issued awards, which are subject to the recipient's continued service with us and thus excluded from the purchase price, is recognized ratably as stock-based compensation expense over the required service period. The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands, except useful life): Fair Value Useful Life (months) Developed technology $ 44,300 72 In-process research and development 1,300 Indefinite (1) Customer relationships 190 36 Total intangible assets acquired $ 45,790 ______________________ (1) The in-process research and development is considered an indefinite-lived intangible asset until the completion or abandonment of the associated research and development efforts. Unaudited Pro Forma Financial Information The following unaudited pro forma information presents the combined results of operations as if the acquisition of Caspida had been completed on February 1, 2014. The unaudited pro forma results include: (i) amortization associated with preliminary estimates for the acquired intangible assets; (ii) recognition of post-acquisition stock-based compensation; and (iii) the associated tax impact on these unaudited pro forma adjustments. The unaudited pro forma results do not reflect any cost saving synergies from operating efficiencies or the effect of the incremental costs incurred in integrating the two companies. Accordingly, these unaudited pro forma results are presented for informational purpose only and are not necessarily indicative of what the actual results of operations of the combined company would have been if the acquisition had occurred at the beginning of the period presented, nor are they indicative of future results of operations (in thousands, except per share amounts): Three Months Six Months Revenues $ 148,326 $ 273,991 Net loss $ (71,916 ) $ (149,562 ) Basic and diluted net loss per share $ (0.57 ) $ (1.19 ) Goodwill Goodwill balances are presented below (in thousands): Carrying amount Balance as of January 31, 2016 $ 123,318 Foreign currency translation adjustments 1,324 Balance as of July 31, 2016 $ 124,642 Intangible Assets Intangible assets subject to amortization obtained from acquisitions as of July 31, 2016 are as follows (in thousands, except useful life): Gross Fair Value Accumulated Amortization Net Book Value Weighted Average Remaining Useful Life (months) Developed technology $ 59,370 $ (17,758 ) $ 41,612 54 Customer relationships 1,810 (1,590 ) 220 14 Other acquired intangible assets 1,180 (902 ) 278 20 Total intangible assets subject to amortization $ 62,360 $ (20,250 ) $ 42,110 Additionally, we obtained $1.3 million of in-process research and development upon the acquisition of Caspida, which has an indefinite useful life. We will assess the carrying value and useful life of the asset once the associated research and development efforts are completed. Amortization expense from acquired intangible assets was $ 3.1 million and $1.8 million for the three months ended July 31, 2016 and 2015 , respectively, and $6.2 million and $2.9 million for the six months ended July 31, 2016 and 2015 . The expected future amortization expense for acquired intangible assets as of July 31, 2016 is as follows (in thousands): Fiscal Period: Remaining six months of fiscal 2017 $ 5,710 Fiscal 2018 10,290 Fiscal 2019 8,030 Fiscal 2020 7,621 Fiscal 2021 7,383 Thereafter 3,076 Total amortization expense $ 42,110 |
Debt Financing Facilities
Debt Financing Facilities | 6 Months Ended |
Jul. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt Financing Facilities | Debt Financing Facilities On May 9, 2013 we entered into a Loan Agreement with Silicon Valley Bank, which was most recently amended in May 2015. As amended, the agreement provides for a revolving line of credit facility, which expires May 9, 2017. Under the agreement, we are able to borrow up to $25 million . Interest on any drawdown under the revolving line of credit accrues either at the prime rate ( 3.50% in July 2016) or the LIBOR rate plus 2.75% . As of July 31, 2016 , we had no balance outstanding under this agreement. The agreement contains customary financial covenants and other affirmative and negative covenants. We were in compliance with all covenants as of July 31, 2016 . |
Stock Compensation Plans
Stock Compensation Plans | 6 Months Ended |
Jul. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Compensation Plans | Stock Compensation Plans The following table summarizes the stock option, restricted stock unit (“RSU”) and performance unit (“PSU”) award activity during the six months ended July 31, 2016 : Options Outstanding RSUs and PSUs Outstanding Shares Available for Grant Shares Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value (1) Shares (in years) (in thousands) Balances as of January 31, 2016 6,553,144 3,715,999 $ 4.72 4.24 $ 154,696 14,752,253 Additional shares authorized 6,577,173 Options exercised (994,023 ) 5.64 Options forfeited and expired 13,273 (13,273 ) 2.57 RSUs and PSUs granted (2,344,484 ) 2,344,484 RSUs and PSUs vested (2,493,633 ) Shares withheld related to net share settlement of RSUs and PSUs 914,342 RSUs and PSUs forfeited and canceled 788,949 (788,949 ) Balances as of July 31, 2016 12,502,397 2,708,703 $ 4.39 3.63 $ 157,640 13,814,155 Vested and expected to vest 2,708,561 $ 4.39 3.63 $ 157,631 13,391,056 Exercisable as of July 31, 2016 2,652,562 $ 4.35 3.53 $ 154,420 _________________________ (1) The intrinsic value is calculated as the difference between the exercise price of the underlying stock option award and the closing market price of our common stock as of July 31, 2016 . Beginning in fiscal 2016, we granted PSUs to certain executives under our 2012 Equity Incentive Plan. The number of PSUs earned and eligible to vest will be determined after a one-year performance period, based on achievement of certain company financial performance measures and the recipient's continued service with us. The number of shares of our stock to be received at vesting can range from 0% to 200% of the target amount. Compensation expense for PSUs is measured using the fair value at the date of grant and recorded over the vesting period under the graded-vesting attribution method, and may be adjusted over the vesting period based on interim estimates of performance against the pre-set objectives. During the six months ended July 31, 2016 , $1.0 million of tax benefits have been realized from exercised stock options. At July 31, 2016 , total unrecognized compensation cost related to these stock options was $3.1 million , adjusted for estimated forfeitures, which is expected to be recognized over a weighted-average period of 1.9 years. At July 31, 2016 , total unrecognized compensation cost was $602.8 million related to RSUs, adjusted for estimated forfeitures, which is expected to be recognized over the next 2.7 years. At July 31, 2016 , total unrecognized compensation cost was $27.4 million related to PSUs, adjusted for estimated forfeitures, which is expected to be recognized over the next 3.3 years. Additionally, during fiscal 2016, we issued 671,782 restricted shares of our common stock (“RSAs”) and at July 31, 2016 , total unrecognized compensation cost was $33.0 million related to RSAs, adjusted for estimated forfeitures, which is expected to be recognized over the next 2.4 years. At July 31, 2016 , 99,769 RSAs were vested and 572,013 RSAs were outstanding. The total intrinsic value of options exercised during the six months ended July 31, 2016 was $47.7 million . The weighted-average grant date fair value of RSUs granted was $50.14 per share for the six months ended July 31, 2016 . The weighted-average grant date fair value of PSUs granted was $49.25 per share for the six months ended July 31, 2016 . The weighted-average grant date fair value of RSAs granted was $69.00 per share during fiscal 2016. No RSAs were granted during the six months ended July 31, 2016 . |
Geographic Information
Geographic Information | 6 Months Ended |
Jul. 31, 2016 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information Revenues Revenues by geography are based on the shipping address of the customer. The following table presents our revenues by geographic region for the periods presented (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2016 2015 2016 2015 United States $ 165,073 $ 114,273 $ 302,878 $ 209,460 International 47,680 34,053 95,827 64,531 Total revenues $ 212,753 $ 148,326 $ 398,705 $ 273,991 Other than the United States, no other individual country exceeded 10% of total revenues during any of the periods presented. One channel partner represented approximately 25% of total revenues during the three months ended July 31, 2016 , and approximately 24% of total revenues during the six months ended July 31, 2016 . A second channel partner represented approximately 17% and 13% of total revenues during the three months ended July 31, 2016 and 2015 , respectively, and approximately 16% and 12% of total revenues during the six months ended July 31, 2016 and 2015 . The revenues from these channel partners are comprised of a number of customer transactions, none of which were individually greater than 10% of total revenues for the three months or six months ended July 31, 2016 and 2015 . At July 31, 2016 , one channel partner represented approximately 26% of total accounts receivable. At January 31, 2016 , one channel partner represented 26% and one customer represented 16% of total accounts receivable. Property and Equipment The following table presents our property and equipment by geographic region for the periods presented (in thousands): As of July 31, 2016 January 31, 2016 United States $ 145,015 $ 129,268 International 6,938 5,727 Total property and equipment, net $ 151,953 $ 134,995 Other than the United States, no other country represented 10% or more of our total property and equipment as of July 31, 2016 or January 31, 2016 . |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three months ended July 31, 2016 and 2015 , we recorded $1.1 million in income tax expense and $10.1 million in income tax benefit, respectively. For the six months ended July 31, 2016 and 2015 , we recorded $2.3 million in income tax expense and $9.5 million in income tax benefit, respectively. The increase in income tax expense was primarily attributable to the absence of the partial release of the valuation allowance as a result of a prior year acquisition and an increase in taxable income in our international jurisdictions. We recorded income taxes that were principally attributable to foreign and state taxes. During the three months ended July 31, 2016 , there were no material changes to our unrecognized tax benefits, and we do not expect to have any significant changes to unrecognized tax benefits through the end of the fiscal year. Because of our history of tax losses, all years remain open to tax audit. |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Jul. 31, 2016 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period, less the weighted-average unvested common stock subject to repurchase or forfeiture. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including preferred stock, stock options, RSUs, PSUs and RSAs to the extent dilutive. The following table sets forth the computation of historical basic and diluted net loss per share (in thousands, except per share data): Three Months Ended July 31, Six Months Ended July 31, 2016 2015 2016 2015 Numerator: Net loss $ (86,597 ) $ (55,289 ) $ (187,493 ) $ (126,475 ) Denominator: Weighted-average common shares outstanding 133,624 126,627 132,873 125,612 Less: Weighted-average unvested common shares subject to repurchase or forfeiture (583 ) (6 ) (563 ) (10 ) Weighted-average shares used to compute net loss per share, basic and diluted 133,041 126,621 132,310 125,602 Net loss per share, basic and diluted $ (0.65 ) $ (0.44 ) $ (1.42 ) $ (1.01 ) Since we were in a net loss position for all periods presented, basic net loss per share is the same as diluted net loss per share for all periods as the inclusion of all potential common shares outstanding would have been anti-dilutive. Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows (in thousands): As of July 31, 2016 2015 Shares subject to outstanding common stock options 2,709 4,432 Shares subject to outstanding RSUs, PSUs and RSAs 14,386 12,482 Employee stock purchase plan 323 319 Total 17,418 17,233 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jul. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Certain members of our board of directors (“Board”) serve on the board of directors of and/or are executive officers of, and, in some cases, are investors in, companies that are customers or vendors of ours. Certain of our executive officers also serve on the board of directors of companies that are customers or vendors of ours. All contracts with related parties are executed in the ordinary course of business. We recognized revenues from sales to these companies of $1.2 million and $1.4 million for the three months ended July 31, 2016 and 2015 , respectively, and $2.4 million and $2.5 million for the six months ended July 31, 2016 and 2015 , respectively. We also recorded $0.1 million and $0.5 million in expenses related to purchases from these companies during the three months ended July 31, 2016 and 2015 , respectively, and $0.2 million and $1.1 million for the six months ended July 31, 2016 and 2015 , respectively. We had $2.6 million and $0.5 million of accounts receivable from these companies as of July 31, 2016 and January 31, 2016 , respectively. There were no accounts payable to these companies as of July 31, 2016 or January 31, 2016 . |
Description of the Business a19
Description of the Business and Significant Accounting Policies (Policies) | 6 Months Ended |
Jul. 31, 2016 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year Our fiscal year ends on January 31. References to fiscal 2017 or fiscal year 2017, for example, refer to the fiscal year ending January 31, 2017. |
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. 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. The condensed consolidated balance sheet data as of January 31, 2016 was derived from audited financial statements, but does not include all disclosures required by GAAP. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Annual Report on Form 10-K for the fiscal year ended January 31, 2016 , filed with the SEC on March 30, 2016 . There have been no changes in the significant accounting policies from those that were disclosed in the audited consolidated financial statements for the fiscal year ended January 31, 2016 included in the Annual Report on Form 10-K. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to state fairly the financial position, results of operations, comprehensive loss and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year 2017. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting periods covered by the financial statements and accompanying notes. In particular, we make estimates with respect to the fair value of multiple elements in revenue recognition, uncollectible accounts receivable, the assessment of the useful life and recoverability of long-lived assets (property and equipment, goodwill and identified intangibles), stock-based compensation expense, the fair value of assets acquired and liabilities assumed for business combinations, income taxes and contingencies. Actual results could differ from those estimates. |
Segments | Segments We operate our business as one operating segment: the development and marketing of software solutions that enable our customers to gain real-time operational intelligence by harnessing the value of their data. Our chief operating decision maker is our Chief Executive Officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources. |
Principles of Consolidation | Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Splunk Inc. and its direct and indirect wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. |
Foreign Currency | Foreign Currency The functional currencies of our foreign subsidiaries are their respective local currencies. Translation adjustments arising from the use of differing exchange rates from period to period are included in Accumulated other comprehensive loss within the condensed consolidated statement of stockholders’ equity. Foreign currency transaction gains and losses are included in Other income (expense), net and were not material for the three and six months ended July 31, 2016 and 2015 . All assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Expenses are translated at the average exchange rate during the period. Equity transactions are translated using historical exchange rates. |
Foreign Currency Contracts | Foreign Currency Contracts In fiscal 2016, we began to use foreign currency forward contracts as a part of our strategy to manage exposure related to foreign currency denominated monetary assets and liabilities. These contracts typically have maturities of one month. They are not designated as cash flow or fair value hedges under ASC Topic 815, Derivatives and Hedging. These contracts hedge assets and liabilities that are denominated in foreign currencies and are carried at fair value as either assets or liabilities on the condensed consolidated balance sheets with changes in the fair value recorded to Other income (expense), net in the condensed consolidated statements of operations. |
Investments | Investments We determine the appropriate classification of our investments at the time of purchase and reevaluate such determination at each balance sheet date. Securities are classified as available-for-sale and are carried at fair value, with the change in unrealized gains and losses, net of tax, reported as a separate component on the condensed consolidated statements of comprehensive income (loss). Fair value is determined based on quoted market rates when observable or utilizing data points that are observable, such as quoted prices, interest rates and yield curves. Declines in fair value judged to be other-than-temporary on securities available for sale are included as a component of investment income. In order to determine whether a decline in value is other-than-temporary, we evaluate, among other factors, the duration and extent to which the fair value has been less than the carrying value and our intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair value. The cost of securities sold is based on the specific-identification method. Interest on securities classified as available-for-sale is included as a component of Interest income, net. |
Business Combinations | Business Combinations We use our best estimates and assumptions to allocate the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Our estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. In addition, uncertain tax positions and tax-related valuation allowances are initially established in connection with a business combination as of the acquisition date. We continue to collect information and reevaluate these estimates and assumptions quarterly and record any adjustments to our preliminary estimates to goodwill provided that we are within the measurement period. Upon the conclusion of the final determination of the fair value of assets acquired or liabilities assumed during the measurement period, any subsequent adjustments are recorded to our condensed consolidated statements of operations. |
Investments and Fair Value Me20
Investments and Fair Value Measurements (Tables) | 6 Months Ended |
Jul. 31, 2016 | |
Investments, Debt And Equity Securities And Fair Value Disclosures [Abstract] | |
Schedule of fair value of financial assets and liabilities that were measured on a recurring basis | The following table sets forth the fair value of our financial assets and liabilities that were measured on a recurring basis as of July 31, 2016 and January 31, 2016 (in thousands): July 31, 2016 January 31, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Money market funds $ 346,910 $ — $ — $ 346,910 $ 374,571 $ — $ — $ 374,571 U.S. treasury securities — 610,660 — 610,660 — 607,892 — 607,892 Other — — 3,000 3,000 — — 1,500 1,500 Reported as: Assets: Cash and cash equivalents $ 346,910 $ 397,965 Investments, current portion 610,660 584,498 Investments, non-current 3,000 1,500 Total $ 960,570 $ 983,963 |
Schedule of available-for-sale securities reconciliation | The following table represents our investments in U.S. treasury securities, which we have classified as available-for-sale investments as of July 31, 2016 (in thousands): July 31, 2016 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Investments, current portion: U.S. treasury securities $ 610,361 $ 364 $ (65 ) $ 610,660 Total available-for-sale investments in U.S. treasury securities $ 610,361 $ 364 $ (65 ) $ 610,660 |
Schedule of unrealized loss on investments | As of July 31, 2016 , the following marketable securities were in an unrealized loss position (in thousands): Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. treasury securities $ 119,072 $ (65 ) $ — $ — $ 119,072 $ (65 ) |
Investments classified by contractual maturity date | The contractual maturities of our investments in U.S. treasury securities are as follows (in thousands): July 31, 2016 Due within one year $ 610,660 Total $ 610,660 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jul. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | The following summarizes our operating lease commitments as of July 31, 2016 (in thousands): Payments Due by Period Total Less Than 1 1-3 years 3-5 years More Than 5 Operating lease commitments (1) $ 183,596 $ 18,426 $ 48,264 $ 37,048 $ 79,858 _________________________ (1) We entered into sublease agreements for portions of our office space and the future rental income of $1.5 million from these agreements has been included as an offset to our future minimum rental payments. |
Schedule of Future Minimum Lease Payments for Financing Lease Obligation | As of July 31, 2016 , future payments on the financing lease obligation are as follows (in thousands): Fiscal Period: Remaining six months of fiscal 2017 $ 3,135 Fiscal 2018 11,683 Fiscal 2019 12,510 Fiscal 2020 12,886 Fiscal 2021 13,272 Fiscal 2022 13,670 Thereafter 21,977 Total future minimum lease payments $ 89,133 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jul. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consisted of the following (in thousands): As of July 31, 2016 January 31, 2016 Computer equipment and software $ 49,356 $ 43,883 Furniture and fixtures 14,953 13,398 Leasehold and building improvements (1) 49,266 41,028 Building (2) 82,250 72,186 195,825 170,495 Less: accumulated depreciation and amortization (43,872 ) (35,500 ) Property and equipment, net $ 151,953 $ 134,995 |
Acquisitions, Goodwill and In23
Acquisitions, Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jul. 31, 2016 | |
Business Combinations [Abstract] | |
Schedule of finite-lived intangible assets acquired as part of business combination | The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands, except useful life): Fair Value Useful Life (months) Developed technology $ 2,300 48 Other acquired intangible assets 370 36 Total intangible assets acquired $ 2,670 The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands, except useful life): Fair Value Useful Life (months) Developed technology $ 44,300 72 In-process research and development 1,300 Indefinite (1) Customer relationships 190 36 Total intangible assets acquired $ 45,790 |
Schedule of pro forma information of business acquisitions | Accordingly, these unaudited pro forma results are presented for informational purpose only and are not necessarily indicative of what the actual results of operations of the combined company would have been if the acquisition had occurred at the beginning of the period presented, nor are they indicative of future results of operations (in thousands, except per share amounts): Three Months Six Months Revenues $ 148,326 $ 273,991 Net loss $ (71,916 ) $ (149,562 ) Basic and diluted net loss per share $ (0.57 ) $ (1.19 ) |
Schedule of goodwill | Goodwill balances are presented below (in thousands): Carrying amount Balance as of January 31, 2016 $ 123,318 Foreign currency translation adjustments 1,324 Balance as of July 31, 2016 $ 124,642 |
Schedule of finite-lived intangible assets | Intangible assets subject to amortization obtained from acquisitions as of July 31, 2016 are as follows (in thousands, except useful life): Gross Fair Value Accumulated Amortization Net Book Value Weighted Average Remaining Useful Life (months) Developed technology $ 59,370 $ (17,758 ) $ 41,612 54 Customer relationships 1,810 (1,590 ) 220 14 Other acquired intangible assets 1,180 (902 ) 278 20 Total intangible assets subject to amortization $ 62,360 $ (20,250 ) $ 42,110 |
Schedule of expected future amortization for capitalized computer software costs developed for internal use | The expected future amortization expense for acquired intangible assets as of July 31, 2016 is as follows (in thousands): Fiscal Period: Remaining six months of fiscal 2017 $ 5,710 Fiscal 2018 10,290 Fiscal 2019 8,030 Fiscal 2020 7,621 Fiscal 2021 7,383 Thereafter 3,076 Total amortization expense $ 42,110 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 6 Months Ended |
Jul. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share Based Compensation Stock Options and Restricted Stock Units Award Activity | The following table summarizes the stock option, restricted stock unit (“RSU”) and performance unit (“PSU”) award activity during the six months ended July 31, 2016 : Options Outstanding RSUs and PSUs Outstanding Shares Available for Grant Shares Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value (1) Shares (in years) (in thousands) Balances as of January 31, 2016 6,553,144 3,715,999 $ 4.72 4.24 $ 154,696 14,752,253 Additional shares authorized 6,577,173 Options exercised (994,023 ) 5.64 Options forfeited and expired 13,273 (13,273 ) 2.57 RSUs and PSUs granted (2,344,484 ) 2,344,484 RSUs and PSUs vested (2,493,633 ) Shares withheld related to net share settlement of RSUs and PSUs 914,342 RSUs and PSUs forfeited and canceled 788,949 (788,949 ) Balances as of July 31, 2016 12,502,397 2,708,703 $ 4.39 3.63 $ 157,640 13,814,155 Vested and expected to vest 2,708,561 $ 4.39 3.63 $ 157,631 13,391,056 Exercisable as of July 31, 2016 2,652,562 $ 4.35 3.53 $ 154,420 _________________________ (1) The intrinsic value is calculated as the difference between the exercise price of the underlying stock option award and the closing market price of our common stock as of July 31, 2016 . |
Geographic Information (Tables)
Geographic Information (Tables) | 6 Months Ended |
Jul. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of revenues by geographic region | Revenues by geography are based on the shipping address of the customer. The following table presents our revenues by geographic region for the periods presented (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2016 2015 2016 2015 United States $ 165,073 $ 114,273 $ 302,878 $ 209,460 International 47,680 34,053 95,827 64,531 Total revenues $ 212,753 $ 148,326 $ 398,705 $ 273,991 |
Schedule of property and equipment | The following table presents our property and equipment by geographic region for the periods presented (in thousands): As of July 31, 2016 January 31, 2016 United States $ 145,015 $ 129,268 International 6,938 5,727 Total property and equipment, net $ 151,953 $ 134,995 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 6 Months Ended |
Jul. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of computation of historical basic and diluted net loss per share | The following table sets forth the computation of historical basic and diluted net loss per share (in thousands, except per share data): Three Months Ended July 31, Six Months Ended July 31, 2016 2015 2016 2015 Numerator: Net loss $ (86,597 ) $ (55,289 ) $ (187,493 ) $ (126,475 ) Denominator: Weighted-average common shares outstanding 133,624 126,627 132,873 125,612 Less: Weighted-average unvested common shares subject to repurchase or forfeiture (583 ) (6 ) (563 ) (10 ) Weighted-average shares used to compute net loss per share, basic and diluted 133,041 126,621 132,310 125,602 Net loss per share, basic and diluted $ (0.65 ) $ (0.44 ) $ (1.42 ) $ (1.01 ) |
Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive | Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows (in thousands): As of July 31, 2016 2015 Shares subject to outstanding common stock options 2,709 4,432 Shares subject to outstanding RSUs, PSUs and RSAs 14,386 12,482 Employee stock purchase plan 323 319 Total 17,418 17,233 |
Description of the Business a27
Description of the Business and Significant Accounting Policies (Details) - segment | Jul. 09, 2015 | Jun. 23, 2015 | Jul. 31, 2016 |
Accounting Policies [Abstract] | |||
Number of operating segments | 1 | 1 | 1 |
Investments and Fair Value Me28
Investments and Fair Value Measurements (Details) - USD ($) $ in Thousands | Jul. 31, 2016 | Jan. 31, 2016 |
Fair Value Measurements | ||
U.S. treasury securities | $ 610,660 | |
Estimate of Fair Value Measurement | Recurring basis | ||
Fair Value Measurements | ||
Money market funds | 346,910 | $ 374,571 |
U.S. treasury securities | 610,660 | 607,892 |
Other | 3,000 | 1,500 |
Assets: | ||
Cash and cash equivalents | 346,910 | 397,965 |
Investments, current portion | 610,660 | 584,498 |
Investments, non-current | 3,000 | 1,500 |
Total | 960,570 | 983,963 |
Estimate of Fair Value Measurement | Recurring basis | Level 1 | ||
Fair Value Measurements | ||
Money market funds | 346,910 | 374,571 |
U.S. treasury securities | 0 | 0 |
Other | 0 | 0 |
Estimate of Fair Value Measurement | Recurring basis | Level 2 | ||
Fair Value Measurements | ||
Money market funds | 0 | 0 |
U.S. treasury securities | 610,660 | 607,892 |
Other | 0 | 0 |
Estimate of Fair Value Measurement | Recurring basis | Level 3 | ||
Fair Value Measurements | ||
Money market funds | 0 | 0 |
U.S. treasury securities | 0 | 0 |
Other | $ 3,000 | $ 1,500 |
Investments and Fair Value Me29
Investments and Fair Value Measurements - Amortized Cost to Fair Value Reconciliation (Details) $ in Thousands | Jul. 31, 2016USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
U.S. treasury securities, Fair Value | $ 610,660 |
US Treasury Securities | |
Schedule of Available-for-sale Securities [Line Items] | |
U.S. treasury securities, Amortized Cost | 610,361 |
U.S. treasury securities, Unrealized Gains | 364 |
U.S. treasury securities, Unrealized Losses | (65) |
U.S. treasury securities, Fair Value | 610,660 |
US Treasury Securities | Investments, Current Portion | |
Schedule of Available-for-sale Securities [Line Items] | |
U.S. treasury securities, Amortized Cost | 610,361 |
U.S. treasury securities, Unrealized Gains | 364 |
U.S. treasury securities, Unrealized Losses | (65) |
U.S. treasury securities, Fair Value | $ 610,660 |
Investments and Fair Value Me30
Investments and Fair Value Measurements Fair Value Measurements - Securities in Unrealized Loss Position (Details) - US Treasury Securities $ in Thousands | Jul. 31, 2016USD ($) |
Fair Value | |
Less than 12 Months | $ 119,072 |
12 Months or Greater | 0 |
Total | 119,072 |
Unrealized Losses | |
Less than 12 Months | (65) |
12 Months or Greater | 0 |
Total | $ (65) |
Investments and Fair Value Me31
Investments and Fair Value Measurements - Contractual Maturities (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 31, 2016 | Jan. 31, 2016 | |
Investments, Debt And Equity Securities And Fair Value Disclosures [Abstract] | ||
Due within one year | $ 610,660 | |
Total | 610,660 | |
Convertible promissory note | Recurring basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Purchase of level 3 asset | 1,500 | |
Available-for-sale security | $ 3,000 | $ 1,500 |
Commitments and Contingencies32
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | ||
Commitments and Contingencies Disclosure [Abstract] | |||||
Rent expense | $ 3,900 | $ 3,400 | $ 8,600 | $ 6,300 | |
Operating lease obligations, Total | [1] | 183,596 | 183,596 | ||
Operating lease obligations, Less than 1 year | [1] | 18,426 | 18,426 | ||
Operating lease obligations, 1-3 years | [1] | 48,264 | 48,264 | ||
Operating lease obligations, 3-5 years | [1] | 37,048 | 37,048 | ||
Operating lease obligations, More than 5 years | [1] | 79,858 | 79,858 | ||
Future sublease rental income | $ 1,500 | $ 1,500 | |||
[1] | $1.5 million from these agreements has been included as an offset to our future minimum rental payments. |
Commitments and Contingencies -
Commitments and Contingencies - Office Lease (Details) $ in Thousands | Aug. 24, 2015USD ($)ft² | Apr. 29, 2014USD ($)ft² | Jul. 31, 2016USD ($) | Jul. 31, 2015USD ($) | Jul. 31, 2016USD ($) | Jul. 31, 2015USD ($) | May 13, 2014USD ($) | |
Operating Leased Assets [Line Items] | ||||||||
Operating Leases, Rent Expense, Net | $ 3,900 | $ 3,400 | $ 8,600 | $ 6,300 | ||||
Financing lease obligation | 89,133 | 89,133 | ||||||
Base rent obligation | [1] | $ 183,596 | $ 183,596 | |||||
500 Santana Row, San Jose, CA | ||||||||
Operating Leased Assets [Line Items] | ||||||||
Area of Real Estate Property | ft² | 235,000 | |||||||
Term of office lease | ||||||||
Base rent obligation | $ 120,500 | |||||||
270 Brannan Street, San Francisco, CA | ||||||||
Operating Leased Assets [Line Items] | ||||||||
Area of Real Estate Property | ft² | 182,000 | |||||||
Term of office lease | 84 months | |||||||
Financing lease obligation | $ 92,000 | |||||||
Amount to be Maintained in Letter of Credit as Security for Lease Agreement | $ 6,000 | |||||||
[1] | $1.5 million from these agreements has been included as an offset to our future minimum rental payments. |
Commitments and Contingencies34
Commitments and Contingencies - Capital Leases (Details) $ in Thousands | Jul. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remaining six months of fiscal 2017 | $ 3,135 |
Fiscal 2,018 | 11,683 |
Fiscal 2,019 | 12,510 |
Fiscal 2,020 | 12,886 |
Fiscal 2,021 | 13,272 |
Fiscal 2,022 | 13,670 |
Thereafter | 21,977 |
Total future minimum lease payments | $ 89,133 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | Jan. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||||
Depreciation and amortization expense on Property and Equipment, net | $ 5,100 | $ 2,500 | $ 8,400 | $ 4,800 | |
Property and equipment, gross | 195,825 | 195,825 | $ 170,495 | ||
Less: accumulated depreciation and amortization | (43,872) | (43,872) | (35,500) | ||
Property and equipment, net | 151,953 | 151,953 | 134,995 | ||
Computer equipment and software | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 49,356 | 49,356 | 43,883 | ||
Furniture and fixtures | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 14,953 | 14,953 | 13,398 | ||
Leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 49,266 | 49,266 | 41,028 | ||
Leasehold improvements not in service | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 9,600 | 9,600 | 28,900 | ||
Construction in progress | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | $ 82,250 | $ 82,250 | $ 72,186 |
Acquisitions, Goodwill and In36
Acquisitions, Goodwill and Intangible Assets (Details Textual) $ in Thousands | Jul. 09, 2015USD ($)segment | Jun. 23, 2015USD ($)segment | Jul. 31, 2016USD ($) | Jul. 31, 2015USD ($) | Jul. 31, 2016USD ($)companysegment | Jul. 31, 2015USD ($) | Jan. 31, 2016USD ($) |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 124,642 | $ 124,642 | $ 123,318 | ||||
Number of operating segments | segment | 1 | 1 | 1 | ||||
Number of businesses acquired | company | 2 | ||||||
Amortization of intangible assets | $ 3,100 | $ 1,800 | $ 6,200 | $ 2,900 | |||
Metafor Software | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of voting interests acquired | 100.00% | ||||||
Purchase price paid in cash | $ 16,400 | ||||||
Identifiable intangible assets acquired | 2,670 | ||||||
Net assets acquired | 500 | ||||||
Net deferred tax assets acquired | 100 | ||||||
Goodwill | $ 13,100 | ||||||
Caspida | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of voting interests acquired | 100.00% | ||||||
Purchase price paid in cash | $ 128,400 | ||||||
Identifiable intangible assets acquired | 45,790 | ||||||
Net assets acquired | 1,200 | ||||||
Net deferred tax liabilities assumed | 11,400 | ||||||
Goodwill | 92,800 | ||||||
Fair value of issued awards under merger agreement | 61,600 | ||||||
In-process research and development | Caspida | |||||||
Business Acquisition [Line Items] | |||||||
Indefinite-lived intangible assets, acquired fair value | $ 1,300 |
Acquisitions, Goodwill and In37
Acquisitions, Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | Jul. 09, 2015 | Jun. 23, 2015 | Jul. 31, 2016 |
Developed technology | |||
Finite-Lived and Indefinite-lived Intangible Assets Acquired as Part of Business Combination [Line Items] | |||
Useful Life | 54 months | ||
Customer relationships | |||
Finite-Lived and Indefinite-lived Intangible Assets Acquired as Part of Business Combination [Line Items] | |||
Useful Life | 14 months | ||
Other acquired intangible assets | |||
Finite-Lived and Indefinite-lived Intangible Assets Acquired as Part of Business Combination [Line Items] | |||
Useful Life | 20 months | ||
Metafor Software | |||
Finite-Lived and Indefinite-lived Intangible Assets Acquired as Part of Business Combination [Line Items] | |||
Finite-lived intangible assets, acquired fair value | $ 2,670 | ||
Intangible assets, acquired fair value | 2,670 | ||
Metafor Software | Developed technology | |||
Finite-Lived and Indefinite-lived Intangible Assets Acquired as Part of Business Combination [Line Items] | |||
Finite-lived intangible assets, acquired fair value | $ 2,300 | ||
Useful Life | 48 months | ||
Metafor Software | Other acquired intangible assets | |||
Finite-Lived and Indefinite-lived Intangible Assets Acquired as Part of Business Combination [Line Items] | |||
Finite-lived intangible assets, acquired fair value | $ 370 | ||
Useful Life | 36 months | ||
Caspida | |||
Finite-Lived and Indefinite-lived Intangible Assets Acquired as Part of Business Combination [Line Items] | |||
Intangible assets, acquired fair value | $ 45,790 | ||
Caspida | Developed technology | |||
Finite-Lived and Indefinite-lived Intangible Assets Acquired as Part of Business Combination [Line Items] | |||
Finite-lived intangible assets, acquired fair value | $ 44,300 | ||
Useful Life | 72 months | ||
Caspida | Customer relationships | |||
Finite-Lived and Indefinite-lived Intangible Assets Acquired as Part of Business Combination [Line Items] | |||
Finite-lived intangible assets, acquired fair value | $ 190 | ||
Useful Life | 36 months | ||
Caspida | In-process research and development | |||
Finite-Lived and Indefinite-lived Intangible Assets Acquired as Part of Business Combination [Line Items] | |||
Indefinite-lived intangible assets, acquired fair value | $ 1,300 |
Acquisitions, Goodwill and In38
Acquisitions, Goodwill and Intangible Assets (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended |
Jul. 31, 2015 | Jul. 31, 2015 | |
Business Combinations [Abstract] | ||
Revenues | $ 148,326 | $ 273,991 |
Net loss | $ (71,916) | $ (149,562) |
Basic and diluted net loss per share (in usd per share) | $ (0.57) | $ (1.19) |
Acquisitions, Goodwill and In39
Acquisitions, Goodwill and Intangible Assets (Details 2) $ in Thousands | 6 Months Ended |
Jul. 31, 2016USD ($) | |
Goodwill [Roll Forward] | |
Balance as of January 31, 2016 | $ 123,318 |
Foreign currency translation adjustments | 1,324 |
Balance as of July 31, 2016 | $ 124,642 |
Acquisitions, Goodwill and In40
Acquisitions, Goodwill and Intangible Assets (Details 3) $ in Thousands | 6 Months Ended |
Jul. 31, 2016USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
Gross Fair Value | $ 62,360 |
Accumulated Amortization | (20,250) |
Total | 42,110 |
Developed technology | |
Finite-Lived Intangible Assets [Line Items] | |
Gross Fair Value | 59,370 |
Accumulated Amortization | (17,758) |
Total | $ 41,612 |
Weighted Average Remaining Useful Life | 54 months |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Gross Fair Value | $ 1,810 |
Accumulated Amortization | (1,590) |
Total | $ 220 |
Weighted Average Remaining Useful Life | 14 months |
Other acquired intangible assets | |
Finite-Lived Intangible Assets [Line Items] | |
Gross Fair Value | $ 1,180 |
Accumulated Amortization | (902) |
Total | $ 278 |
Weighted Average Remaining Useful Life | 20 months |
Acquisitions, Goodwill and In41
Acquisitions, Goodwill and Intangible Assets (Details 4) $ in Thousands | Jul. 31, 2016USD ($) |
Business Combinations [Abstract] | |
Remaining six months of fiscal 2017 | $ 5,710 |
Fiscal 2,018 | 10,290 |
Fiscal 2,019 | 8,030 |
Fiscal 2,020 | 7,621 |
Fiscal 2,021 | 7,383 |
Thereafter | 3,076 |
Total | $ 42,110 |
Debt Financing Facilities (Deta
Debt Financing Facilities (Details) - Revolving line of credit facility - USD ($) | 6 Months Ended | |
Jul. 31, 2016 | May 09, 2013 | |
Debt Financing Facilities | ||
Maximum borrowing capacity | $ 25,000,000 | |
Prime rate | 3.50% | |
Amount outstanding | $ 0 | |
London Interbank Offered Rate (LIBOR) | ||
Debt Financing Facilities | ||
Basis spread on variable rate | 2.75% |
Stock Compensation Plans (Detai
Stock Compensation Plans (Details) | 6 Months Ended |
Jul. 31, 2016shares | |
Available for Grant | |
Balances at the beginning of the period (in shares) | 6,553,144 |
Additional Shares Authorized (in shares) | 6,577,173 |
Options forfeited and expired (in shares) | 13,273 |
RSUs and PSUs granted (in shares) | 2,344,484 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Withheld Related to Share Settlement | 914,342 |
RSUs and PSUs forfeited (in shares) | 788,949 |
Balances at the end of the period (in shares) | 12,502,397 |
Stock Compensation Plans (Det44
Stock Compensation Plans (Details 2) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2016 | Jan. 31, 2016 | ||
Shares | ||||
Options exercised (in shares) | ||||
Options forfeited and expired (in shares) | (13,273) | |||
Number of Shares | ||||
RSUs and PSUs granted (in shares) | 2,344,484 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Withheld Related to Share Settlement | 914,342 | |||
RSUs and PSUs forfeited (in shares) | (788,949) | |||
Options | ||||
Shares | ||||
Outstanding at the beginning of the period (in shares) | 3,715,999 | |||
Options exercised (in shares) | (994,023) | |||
Options forfeited and expired (in shares) | (13,273) | |||
Outstanding at the end of the period (in shares) | 2,708,703 | 2,708,703 | 3,715,999 | |
Vested and expected to vest at the end of the period (in shares) | 2,708,561 | 2,708,561 | ||
Exercisable at the end of the period (in shares) | 2,652,562 | 2,652,562 | ||
Weighted-Average Exercise Price Per Share | ||||
Balances at the beginning of the period (in dollars per share) | $ 4.72 | |||
Options exercised (in dollars per share) | 5.64 | |||
Options forfeited (in dollars per share) | 2.57 | |||
Balances at the end of the period (in dollars per share) | $ 4.39 | 4.39 | $ 4.72 | |
Vested and expected to vest at the end of the period (in dollars per share) | 4.39 | 4.39 | ||
Exercisable at the end of the period (in dollars per share) | $ 4.35 | $ 4.35 | ||
Weighted-Average Remaining Contractual Term | ||||
Balances at the end of the period | 3 years 7 months 17 days | 4 years 2 months 27 days | ||
Vested and expected to vest at the end of the period | 3 years 7 months 17 days | |||
Vested and exercisable at the end of the period | 3 years 6 months 11 days | |||
Aggregate Intrinsic Value | ||||
Outstanding at the end of the period (in dollars) | [1] | $ 157,640 | $ 157,640 | $ 154,696 |
Vested and expected to vest at the end of the period (in dollars) | [1] | 157,631 | 157,631 | |
Vested and exercisable at the end of the period (in dollars) | [1] | 154,420 | 154,420 | |
Tax benefits | ||||
Tax benefits that have been realized from exercised stock options | 1,000 | |||
Unrecognized compensation cost | ||||
Total unrecognized compensation cost related to stock options | $ 3,100 | 3,100 | ||
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 1 year 10 months 24 days | |||
Additional disclosures | ||||
Total intrinsic value of options exercised (in dollars) | $ 47,700 | |||
RSUs and PSUs | ||||
Number of Shares | ||||
Balances at the beginning of the period (in shares) | 14,752,253 | |||
RSUs and PSUs granted (in shares) | 2,344,484 | |||
RSUs and PSUs vested (in shares) | (2,493,633) | |||
RSUs and PSUs forfeited (in shares) | (788,949) | |||
Balances at the end of the period (in shares) | 13,814,155 | 13,814,155 | 14,752,253 | |
RSUs vested and expected to vest at the end of the period (in shares) | 13,391,056 | 13,391,056 | ||
Unrecognized compensation cost | ||||
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 2 years 8 months 12 days | |||
Total unrecognized compensation cost | $ 602,800 | $ 602,800 | ||
Additional disclosures | ||||
Weighted-average grant date fair value of awards granted (in dollars per share) | $ 50.14 | |||
PSUs | ||||
Unrecognized compensation cost | ||||
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 3 years 4 months | |||
Total unrecognized compensation cost | $ 27,400 | $ 27,400 | ||
Additional disclosures | ||||
Weighted-average grant date fair value of awards granted (in dollars per share) | $ 49.25 | |||
Unregistered Restricted Shares | ||||
Number of Shares | ||||
RSUs and PSUs granted (in shares) | 671,782 | |||
RSUs and PSUs vested (in shares) | (99,769) | |||
Balances at the end of the period (in shares) | 572,013 | 572,013 | ||
Unrecognized compensation cost | ||||
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 2 years 5 months 8 days | |||
Total unrecognized compensation cost | $ 33,000 | $ 33,000 | ||
Additional disclosures | ||||
Weighted-average grant date fair value of awards granted (in dollars per share) | $ 69 | |||
Minimum | PSUs | ||||
Tax benefits | ||||
Award vesting rights | 0.00% | |||
Maximum | PSUs | ||||
Tax benefits | ||||
Award vesting rights | 200.00% | |||
[1] | The intrinsic value is calculated as the difference between the exercise price of the underlying stock option award and the closing market price of our common stock as of July 31, 2016. |
Geographic Information (Details
Geographic Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jul. 31, 2016USD ($)customer | Jul. 31, 2015USD ($)customer | Jul. 31, 2016USD ($)customer | Jul. 31, 2015USD ($)customer | Jan. 31, 2016customer | |
Revenues by geographic region | |||||
Revenue | $ 212,753 | $ 148,326 | $ 398,705 | $ 273,991 | |
United States | |||||
Revenues by geographic region | |||||
Revenue | 165,073 | 114,273 | 302,878 | 209,460 | |
International | |||||
Revenues by geographic region | |||||
Revenue | $ 47,680 | $ 34,053 | $ 95,827 | $ 64,531 | |
Revenues | Customer concentration risk | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Concentration Risk, Number of Customers | customer | 2 | 1 | 2 | 1 | |
Accounts receivable | Customer concentration risk | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Concentration Risk, Number of Customers | customer | 1 | 1 | 2 | ||
Customer One | Revenues | Customer concentration risk | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Concentration risk, percentage | 25.00% | 24.00% | |||
Customer One | Accounts receivable | Customer concentration risk | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Concentration risk, percentage | 26.00% | 26.00% |
Geographic Information Narrativ
Geographic Information Narrative (Details) - customer | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | Jan. 31, 2016 | |
Customer concentration risk | Accounts receivable | |||||
Concentration Risk [Line Items] | |||||
Number of customers accounting for 10 percent or more of the concentration risk | 1 | 1 | 2 | ||
Customer concentration risk | Revenues | |||||
Concentration Risk [Line Items] | |||||
Number of customers accounting for 10 percent or more of the concentration risk | 2 | 1 | 2 | 1 | |
Geographic concentration | Property and equipment | United States | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 10.00% | 10.00% | |||
Customer One | Customer concentration risk | Accounts receivable | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 26.00% | 26.00% | |||
Customer One | Customer concentration risk | Revenues | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 25.00% | 24.00% | |||
Customer Two | Customer concentration risk | Accounts receivable | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 16.00% | ||||
Customer Two | Customer concentration risk | Revenues | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 17.00% | 13.00% | 16.00% | 12.00% |
Geographic Information (Detai47
Geographic Information (Details 2) - USD ($) $ in Thousands | Jul. 31, 2016 | Jan. 31, 2016 |
Property and Equipment by Geographic Area | ||
Property and equipment | $ 151,953 | $ 134,995 |
United States | ||
Property and Equipment by Geographic Area | ||
Property and equipment | 145,015 | 129,268 |
International | ||
Property and Equipment by Geographic Area | ||
Property and equipment | $ 6,938 | $ 5,727 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision (benefit) | $ 1,110 | $ (10,149) | $ 2,335 | $ (9,493) |
Net Loss Per Share (Details)
Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | |
Numerator | ||||
Net loss | $ (86,597) | $ (55,289) | $ (187,493) | $ (126,475) |
Denominator: | ||||
Weighted-average common shares outstanding (in shares) | 133,624 | 126,627 | 132,873 | 125,612 |
Less: Weighted-average unvested common shares subject to repurchase or forfeiture (in shares) | (583) | (6) | (563) | (10) |
Weighted-average shares used to compute net loss per share, basic and diluted (in shares) | 133,041 | 126,621 | 132,310 | 125,602 |
Net loss per share | ||||
Net loss per share, basic and diluted (in dollars per share) | $ (0.65) | $ (0.44) | $ (1.42) | $ (1.01) |
Net Loss Per Share (Details 2)
Net Loss Per Share (Details 2) - shares shares in Thousands | 6 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Potentially dilutive securities | ||
Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive (in shares) | 17,418 | 17,233 |
Shares subject to outstanding common stock options | ||
Potentially dilutive securities | ||
Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive (in shares) | 2,709 | 4,432 |
Shares subject to outstanding RSUs, PSUs and RSAs | ||
Potentially dilutive securities | ||
Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive (in shares) | 14,386 | 12,482 |
Employee stock purchase plan | ||
Potentially dilutive securities | ||
Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive (in shares) | 323 | 319 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | Jan. 31, 2016 | |
Related Party Transactions [Abstract] | |||||
Revenue from sales to the related party | $ 1,200,000 | $ 1,400,000 | $ 2,400,000 | $ 2,500,000 | |
Expenses related to purchases from the related party | 100,000 | $ 500,000 | 200,000 | $ 1,100,000 | |
Accounts receivable from the related party | 2,600,000 | 2,600,000 | $ 500,000 | ||
Accounts payable to related parties | $ 0 | $ 0 | $ 0 |