Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 31, 2017 | Aug. 31, 2017 | |
Document And Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 31, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | BOX | |
Entity Registrant Name | BOX INC | |
Entity Central Index Key | 1,372,612 | |
Current Fiscal Year End Date | --01-31 | |
Entity Filer Category | Large Accelerated Filer | |
Class A Common Stock | ||
Document And Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 105,876,070 | |
Class B Common Stock | ||
Document And Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 27,889,042 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jul. 31, 2017 | Jan. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 165,275 | $ 177,391 |
Accounts receivable, net of allowance of $2,640 and $3,346 | 107,891 | 120,113 |
Prepaid expenses and other current assets | 16,631 | 10,826 |
Deferred commissions | 13,287 | 13,771 |
Total current assets | 303,084 | 322,101 |
Property and equipment, net | 117,083 | 117,176 |
Intangible assets, net | 101 | 543 |
Goodwill | 16,293 | 16,293 |
Restricted cash | 26,543 | 26,781 |
Other long-term assets | 10,606 | 10,780 |
Total assets | 473,710 | 493,674 |
Current liabilities: | ||
Accounts payable | 13,834 | 6,658 |
Accrued compensation and benefits | 25,121 | 30,415 |
Accrued expenses and other current liabilities | 18,118 | 17,713 |
Capital lease obligations | 17,266 | 13,748 |
Deferred revenue | 220,682 | 228,656 |
Deferred rent | 2,065 | 751 |
Total current liabilities | 297,086 | 297,941 |
Debt, non-current | 40,000 | 40,000 |
Capital lease obligations, non-current | 26,037 | 21,697 |
Deferred revenue, non-current | 20,157 | 13,328 |
Deferred rent, non-current | 45,537 | 44,207 |
Other long-term liabilities | 2,982 | 1,769 |
Total liabilities | 431,799 | 418,942 |
Commitments and contingencies (Note 6) | ||
Stockholders’ equity: | ||
Preferred stock, par value $0.0001 per share; 100,000 shares authorized, no shares issued and outstanding as of July 31 (unaudited) and January 31, 2017 | ||
Additional paid-in capital | 1,006,516 | 960,144 |
Treasury stock | (1,177) | (1,177) |
Accumulated other comprehensive income (loss) | 58 | (120) |
Accumulated deficit | (963,499) | (884,128) |
Total stockholders’ equity | 41,911 | 74,732 |
Total liabilities and stockholders’ equity | 473,710 | 493,674 |
Class A Common Stock | ||
Stockholders’ equity: | ||
Common stock, value | 8 | 7 |
Class B Common Stock | ||
Stockholders’ equity: | ||
Common stock, value | $ 5 | $ 6 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jul. 31, 2017 | Jan. 31, 2016 |
Allowance for accounts receivable | $ 2,640 | $ 3,346 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Class A Common Stock | ||
Common Stock, par value | $ 0.0001 | $ 0.0001 |
Common Stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common Stock, shares issued | 105,689,000 | 67,831,000 |
Common Stock, shares outstanding | 105,689,000 | 67,831,000 |
Class B Common Stock | ||
Common Stock, par value | $ 0.0001 | $ 0.0001 |
Common Stock, shares authorized | 200,000,000 | 200,000,000 |
Common Stock, shares issued | 27,994,000 | 62,780,000 |
Common Stock, shares outstanding | 27,994,000 | 62,780,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Income Statement [Abstract] | ||||
Revenue | $ 122,941 | $ 95,713 | $ 240,163 | $ 185,868 |
Cost of revenue | 32,778 | 27,602 | 65,501 | 55,461 |
Gross profit | 90,163 | 68,111 | 174,662 | 130,407 |
Operating expenses: | ||||
Research and development | 34,042 | 28,265 | 67,576 | 55,172 |
Sales and marketing | 73,271 | 60,186 | 143,934 | 119,658 |
General and administrative | 21,846 | 17,579 | 42,127 | 32,088 |
Total operating expenses | 129,159 | 106,030 | 253,637 | 206,918 |
Loss from operations | (38,996) | (37,919) | (78,975) | (76,511) |
Interest expense, net | (236) | (189) | (515) | (365) |
Other income, net | 267 | 190 | 283 | 631 |
Loss before provision for income taxes | (38,965) | (37,918) | (79,207) | (76,245) |
Provision for income taxes | 320 | 184 | 164 | 432 |
Net loss | $ (39,285) | $ (38,102) | $ (79,371) | $ (76,677) |
Net loss per common share, basic and diluted | $ (0.30) | $ (0.30) | $ (0.60) | $ (0.61) |
Weighted-average shares used to compute net loss per share, basic and diluted | 132,981 | 126,776 | 132,237 | 125,864 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | ||
Statement Of Income And Comprehensive Income [Abstract] | |||||
Net loss | $ (39,285) | $ (38,102) | $ (79,371) | $ (76,677) | |
Other comprehensive income (loss): | |||||
Changes in foreign currency translation adjustment | [1] | 149 | (49) | 178 | 65 |
Net change in unrealized gain on available-for-sale investments | [1] | 1 | 3 | ||
Other comprehensive income (loss): | [1] | 149 | (48) | 178 | 68 |
Comprehensive loss | $ (39,136) | $ (38,150) | $ (79,193) | $ (76,609) | |
[1] | Tax effect was not material |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net loss | $ (39,285) | $ (38,102) | $ (79,371) | $ (76,677) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Depreciation and amortization | 9,765 | 10,721 | 19,337 | 22,805 |
Stock-based compensation expense | 24,067 | 19,064 | 47,013 | 35,153 |
Amortization of deferred commissions | 5,368 | 4,605 | 10,358 | 9,376 |
Other | 19 | (25) | 41 | 83 |
Changes in operating assets and liabilities: | ||||
Accounts receivable, net | (25,124) | (17,555) | 12,222 | 24,372 |
Deferred commissions | (5,835) | (4,149) | (8,619) | (6,406) |
Prepaid expenses and other assets, current and noncurrent | (3,164) | 2,664 | (5,705) | 2,437 |
Accounts payable | (121) | (550) | 7,061 | (284) |
Accrued expenses and other liabilities | 7,074 | 7,484 | (3,893) | (19,214) |
Deferred rent | 1,189 | 144 | 1,719 | 2,654 |
Deferred revenue | 16,524 | 10,820 | (1,145) | (3,409) |
Net cash used in operating activities | (9,523) | (4,879) | (982) | (9,110) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Sales of marketable securities | 240 | 240 | ||
Maturities of marketable securities | 471 | 7,057 | ||
Purchases of property and equipment | (1,013) | (771) | (1,797) | (11,747) |
Proceeds from sale of property and equipment | 2 | 72 | 29 | 76 |
Net cash (used in) provided by investing activities | (1,011) | 12 | (1,768) | (4,374) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Payment of borrowing costs | (93) | |||
Proceeds from exercise of stock options, net of repurchases of early exercised stock options | 2,957 | 1,969 | 5,413 | 4,215 |
Proceeds from issuances of common stock under employee stock purchase plan | 8,881 | 9,016 | ||
Employee payroll taxes paid related to net share settlement of restricted stock units | (5,821) | (4,100) | (14,935) | (8,868) |
Acquisition related contingent consideration | (991) | (991) | ||
Payments of capital lease obligations | (4,176) | (2,312) | (7,912) | (3,261) |
Net cash (used in) provided by financing activities | (8,031) | (4,443) | (9,544) | 1,009 |
Effect of exchange rate changes on cash and cash equivalents | 149 | (49) | 178 | 65 |
Net decrease in cash and cash equivalents | (18,416) | (9,359) | (12,116) | (12,410) |
Cash and cash equivalents, beginning of period | 183,691 | 182,690 | 177,391 | 185,741 |
Cash and cash equivalents, end of period | 165,275 | 173,331 | 165,275 | 173,331 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||
Cash paid for interest, net of amounts capitalized | 466 | 555 | 889 | 788 |
Cash paid (received) for income taxes, net of tax refunds | 188 | (2) | 733 | 116 |
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES: | ||||
Change in accrued equipment purchases | 2,054 | (2,180) | 890 | (15,024) |
Purchases of property and equipment under capital lease | 5,972 | 5,562 | 15,681 | 9,910 |
Change in unpaid tax related to capital lease | $ 200 | 628 | $ 435 | 430 |
Change in unpaid taxes related to net share settlement of restricted stock units | $ (461) | |||
Vesting of early exercised stock options and restricted stock units | $ 11 |
Description of Business and Bas
Description of Business and Basis of Presentation | 6 Months Ended |
Jul. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Note 1. Description of Business and Basis of Presentation Description of Business We were incorporated in the state of Washington in April 2005, and were reincorporated in the state of Delaware in March 2008. We changed our name from Box.Net, Inc. to Box, Inc. in November 2011. Box provides a leading cloud content management platform that enables organizations of all sizes to securely manage cloud content while allowing easy, secure access and sharing of this content from anywhere, on any device. Basis of Presentation The accompanying condensed consolidated balance sheet as of July 31, 2017 and the condensed consolidated statements of operations, the condensed consolidated statements of comprehensive loss and the condensed consolidated statements of cash flows for the three and six months ended July 31, 2017 and 2016, respectively, are unaudited. The condensed consolidated balance sheet data as of January 31, 2017 was derived from the audited consolidated financial statements that are included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2017 (the “Form 10-K”), which was filed with the Securities and Exchange Commission (the “SEC”) on March 24, 2017. The accompanying statements should be read in conjunction with the audited consolidated financial statements and related notes contained in our Form 10-K. Other than items discussed under Recently Adopted Accounting Pronouncements , there have been no other material changes to our critical accounting policies and estimates during the six months ended July 31, 2017 from those disclosed in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Form 10-K. The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the financial information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of our management, the unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements in the Form 10-K, and include all adjustments necessary for the fair presentation of our balance sheet as of July 31, 2017, and our results of operations, including our comprehensive loss, and our cash flows for the three and six months ended July 31, 2017 and 2016. All adjustments are of a normal recurring nature. The results for the three and six months ended July 31, 2017 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending January 31, 2018. Certain prior year balances have been reclassified to conform to the current year presentation. Such reclassifications did not affect total revenues, operating income or net income. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make, on an ongoing basis, estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ from these estimates. Such estimates include, but are not limited to, the determination of the allowance for accounts receivable, fair value of acquired intangible assets and goodwill, useful lives of acquired intangible assets and property and equipment, best estimate of selling price included in multiple-deliverable revenue arrangements, fair values of stock-based awards, legal contingencies, and the provision for income taxes, including related reserves, among others. Management bases its estimates on historical experience and on various other assumptions which management believes to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Certain Risks and Concentrations Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash and accounts receivable. Although we deposit our cash with multiple financial institutions, our deposits, at times, may exceed federally insured limits. We sell to a broad range of customers, including resellers. Our revenue is derived substantially from the United States across a multitude of industries. Accounts receivable are derived from the delivery of our services to customers primarily located in the United States. We accept and settle our accounts receivable using credit cards, electronic payments and checks. A majority of our lower dollar value invoices are settled by credit card on or near the date of the invoice. We do not require collateral from customers to secure accounts receivable. We maintain an allowance for accounts receivable based upon the expected collectability, which takes into consideration specific customer creditworthiness and current economic trends. We believe collections of our accounts receivable are reasonably assured based on the size, industry diversification, financial condition and past transaction history of our customers. As of July 31, 2017, one customer, which was a reseller, accounted for more than 10% of total accounts receivable. As of January 31, 2017, two customers, which were both resellers, accounted for more than 10% of total accounts receivable. No single customer, including resellers, represented over 10% of revenue for the three and six months ended July 31, 2017 and 2016. We serve our customers and users from datacenter facilities operated by third parties. In order to reduce the risk of down time of our enterprise cloud content services, we have established datacenters and third-party cloud computing and hosting providers in various locations in the United States and abroad. We have internal procedures to restore services in the event of disaster at any one of our current datacenter facilities. Even with these procedures for disaster recovery in place, our cloud services could be significantly interrupted during the implementation of the procedures to restore services. Geographic Locations For the three and six months ended July 31, 2017, revenue attributable to customers in the United States and customers outside the United States was 79% and 21%, respectively. For the three and six months ended July 31, 2016, revenue attributable to customers in the United States and customers outside the United States was 83% and 17%, respectively. No other country outside of the United States comprised 10% or greater of our revenue for any of the periods presented. Substantially all of our net assets are located in the United States. As of July 31, 2017 and January 31, 2017, property and equipment located in the United States was 99.7%. Recently Issued Accounting Pronouncements In November 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (“ASU”) 2016-18 , Statement of Cash Flows: Restricted Cash In June 2016, the FASB issued ASU 2016-13, Financial Instruments- Credit Losses In February 2016, the FASB issued ASU 2016-02, Leases In May 2014, the FASB issued ASU 2014-09 regarding ASC Topic 606, We have established a cross-functional coordinated implementation team to implement the standard update related to the recognition of revenue from contracts with customers. We have identified, and are in the process of implementing, appropriate changes to our business processes, systems and controls to support recognition and disclosure under the new standard. Based on our ongoing evaluation, we believe the impacts of this ASU will be related to the capitalization and amortization of sales commissions, the timing of revenue recognition for certain sales contracts, and their respective disclosures. There will be a change to the period over which sales commissions will be amortized to align to an expected period of benefit and a change to the scope of capitalized sales commissions based on the definition of incremental costs of obtaining a contract. In addition, there will be a change in relation to the timing of revenue recognition for certain sales contracts, due primarily to the removal of the current limitation on contingent revenue. These changes are being evaluated to determine the potential impact to our financial statements and disclosures. We continue to assess all potential impacts of this ASU, so our preliminary conclusions may change. Recently Adopted Accounting Pronouncements In January 2017, FASB issued ASU 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment. We elected to early adopt ASU 2107-04 during the second quarter of fiscal year 2018. The adoption of this ASU had no impact on our condensed consolidated financial statements. We expect that adoption of this ASU will simplify the evaluation and recording of goodwill impairment charges, if any. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payment We elected to early adopt ASU 2016-15 during the second quarter of fiscal year 2018. The new standard requires application using a retrospective transition method. We have evaluated the impact on a quantitative and qualitative basis and concluded it was not material to any of prior periods presented. In April 2016, the FASB issued ASU 2016-09, Compensation- Stock Compensation We adopted ASU 2016-09 during the first quarter of fiscal year 2018. As required by the standard, excess tax benefits recognized on stock-based compensation expense were prospectively reflected in our condensed consolidated statements of income as a component of the provision for income taxes rather than on the condensed consolidated balance sheet as a paid-in capital. Included in our net operating loss and research and development tax credit carryforwards are approximately $25.2 million of excess tax benefits from employee stock option exercises, for which we have not realized a deferred tax asset since it is fully offset by a valuation allowance, resulting in no impact to our condensed consolidated financial statements including any cumulative effect to accumulated deficit from previously unrecognized excess tax benefits. Our policy has been to classify cash flows related to excess tax benefits as part of operating activities and cash payments made on employee’s behalf for withheld shares as part of financing activities, and thus, the adoption of this standard had no effect on our condensed consolidated statements of cash flows. Further, we did not elect an accounting policy change to record forfeitures as they occur and thus will continue to estimate the number of forfeitures expected to occur. Other amendments in the guidance did not impact our condensed consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jul. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 2. Fair Value Measurements We define fair value as the exchange price that would be received from selling an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We measure our financial assets and liabilities at fair value at each reporting period using a fair value hierarchy which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: • Level 1—Observable inputs are unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2—Observable inputs are quoted prices for similar assets and liabilities in active markets or inputs other than quoted prices which are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments. • Level 3—Unobservable inputs which are supported by little or no market activity and which are significant to the fair value of the assets or liabilities. These inputs are based on our own assumptions used to measure assets and liabilities at fair value and require significant management judgment or estimation. We measure restricted cash at fair value on a recurring basis. We classify this asset within Level 1 or Level 2 because they are valued using either quoted market prices for identical assets or inputs other than quoted prices which are directly or indirectly observable in the market, including readily-available pricing sources for the identical underlying security which may not be actively traded. We have restricted cash in the form of certificates of deposits of $26.5 million and $26.8 million as of July 31, 2017 and January 31, 2017, respectively, classified within Level 2. |
Balance Sheet Components
Balance Sheet Components | 6 Months Ended |
Jul. 31, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | Note 3. Balance Sheet Components Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): July 31, January 31, 2017 2017 Prepaid expenses $ 12,940 $ 9,256 Other current assets 3,691 1,570 Total prepaid expenses and other current assets $ 16,631 $ 10,826 Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): July 31, January 31, 2017 2017 Servers $ 156,297 $ 143,219 Leasehold improvements 64,457 64,379 Computer hardware and software 12,119 11,373 Furniture and fixtures 13,061 12,824 Construction in progress 6,477 5,882 Total property and equipment 252,411 237,677 Less: accumulated depreciation (135,328 ) (120,501 ) Total property and equipment, net $ 117,083 $ 117,176 As of July 31, 2017, the gross carrying amount of property and equipment included $61.7 million of servers and $3.7 million of construction in progress acquired under capital leases, and the accumulated depreciation of property and equipment acquired under these capital leases was $18.8 million. As of January 31, 2017, the gross carrying amount of property and equipment included $43.2 million of servers and related equipment and $5.6 million of construction in progress acquired under capital leases, and the accumulated depreciation of property and equipment acquired under these capital leases was $10.4 million. Depreciation expense related to property and equipment was $9.7 million and $9.8 million for the three months ended July 31, 2017 and 2016, respectively, and $18.9 million and $20.4 million for the six months ended July 31, 2017 and 2016, respectively. Included in these amounts was depreciation expense for servers acquired under capital leases in the amount of $4.6 million and $1.6 million for the three months ended July 31, 2017 and 2016, respectively, and $8.4 million and $2.9 million for the six months ended July 31, 2017 and 2016, respectively. Construction in progress primarily consists of servers, networking equipment and storage infrastructure being provisioned in our datacenter facilities as well as leasehold improvements. |
Acquisitions
Acquisitions | 6 Months Ended |
Jul. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Note 4. Acquisitions Wagon Analytics, Inc. On August 30, 2016, we entered into an agreement to license certain technology and hire certain employees from Wagon Analytics, Inc., a privately-held data analysis company, for a total purchase price of $2.0 million. This agreement has been accounted for as a business combination. The entire purchase price was allocated to goodwill. Goodwill is attributable to future growth and potential enhancement opportunities for our analytics platform . Goodwill is deductible for U.S. income tax purposes. Transaction costs related to this business combination were not material. Results of operations for this business combination have been included in our consolidated statements of operations since the acquisition date and were not material. Pro forma results of operations for this business combination have not been presented because they were also not material to the consolidated results of operations. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jul. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 5. Goodwill and Intangible Assets There was no goodwill activity for the three and six months ended July 31, 2017. Intangible assets consisted of the following (in thousands): Weighted Average Useful Life (1) Gross Value Accumulated Amortization Net Carrying Value July 31, 2017 Developed technology 2.5 years $ 14,273 $ (14,273 ) $ — Trade name and other 6.9 years 1,201 (1,100 ) 101 Intangibles, net $ 15,474 $ (15,373 ) $ 101 January 31, 2017 Developed technology 2.5 years $ 14,273 $ (13,908 ) $ 365 Trade name and other 6.9 years 1,201 (1,023 ) 178 Intangibles, net $ 15,474 $ (14,931 ) $ 543 (1) From the date of acquisition Intangible amortization expense was not material for the three months ended July 31, 2017 and was $0.9 million for the three months ended July 31, 2016. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 6. Commitments and Contingencies Letters of Credit As of July 31, 2017 and January 31, 2017, we had letters of credit in the aggregate amount of $26.5 million and $26.8 million, respectively, in connection with our operating and capital leases. Letters of credit in connection with our facility leases are collateralized by certificates of deposit. Refer to Note 7 for additional details. Leases We have entered into various non-cancellable operating lease agreements for certain of our offices and datacenters with lease periods expiring primarily between fiscal years 2018 and 2029. Certain of these arrangements have free or escalating rent payment provisions and optional renewal clauses. We are also committed to pay a portion of the actual operating expenses under certain of these lease agreements. These operating expenses are not included in the table below. We also entered into various capital lease arrangements to obtain servers for our operations. These agreements are typically for three to four years. The leases are secured by the underlying leased servers. As of July 31, 2017, future minimum lease payments under non-cancellable capital and operating leases are as follows (in thousands): Years ending January 31: Capital Leases Operating Leases, Sublease Income Remainder of 2018 $ 9,512 $ 12,442 2019 16,283 28,068 2020 10,782 32,454 2021 7,297 33,398 2022 916 30,705 Thereafter — 161,202 Total minimum lease payments $ 44,790 $ 298,269 Less: amount representing interest (1,487 ) Present value of minimum lease payments $ 43,303 We sublease certain floors of our headquarters and one floor of our office in San Francisco. These subleases have terms ranging from 19 to 49 months that will expire between fiscal 2018 and 2021. Non-cancellable sublease proceeds for the years ending January 31, 2018, 2019, 2020 and 2021 of $3.6 million, $5.8 million, $1.9 million and $1.7 million, respectively, are included in the table above. We establish assets and liabilities for the present value of estimated future costs to return certain of our leased facilities to their original condition. Such assets are depreciated over the lease period into operating expense, and the recorded liabilities are accreted to the future value of the estimated restoration costs. We did not have material asset retirement obligations as of July 31, 2017 and January 31, 2017. In addition, sufficient information did not exist as of July 31, 2017 to reasonably estimate the fair value of asset retirement obligations for a Tokyo, Japan lease signed in April 2017. We recognize rent expense under our operating leases on a straight-line basis. Rent expense totaled $6.9 million and $4.2 million, net of sublease income of $1.9 million and $1.7 million for the three months ended July 31, 2017 and 2016, respectively, and rent expense totaled $12.2 million and $8.6 million, net of sublease income of $3.7 million and $3.2 million for the six months ended July 31, 2017 and 2016, respectively. Purchase Obligations As of July 31, 2017, future payments under non-cancellable contractual purchases, which relate primarily to datacenter operations and sales and marketing activities, are as follows (in thousands): Years ending January 31: Remainder of 2018 $ 6,055 2019 21,533 2020 16,683 $ 44,271 Legal Matters In June 2013, Open Text S.A. (Open Text) filed a lawsuit against us in the U.S. District Court, Eastern District of Virginia, alleging that our core cloud software and Box Edit application infringed 12 patents of Open Text. This case was subsequently transferred to the U.S. District Court for the Northern District of California and, in February 2015, went to trial. In February 2015, the jury returned a verdict in which it awarded damages in favor of Open Text in a lump sum and fully paid-up royalty in the amount of $4.9 million. Both parties appealed certain aspects of the trial. While we continued to defend the lawsuit vigorously and continued to believe we had valid defense to Open Text’s claims, we considered the issuance of the verdict a recognized subsequent event that provided additional evidence about conditions which existed as of January 31, 2015. Accordingly, as of January 31, 2015, we accrued $4.9 million in relation to the jury award and recorded an expense in the amount of $3.9 million for the year ended January 31, 2015, in relation to the portion of the jury award attributable to prior periods. The portion of the jury award attributable to future periods was recorded as an asset as of January 31, 2015. This asset was amortized over an estimated useful life of 14 months, and the amortization expense was $0.9 million for the year ended January 31, 2016. In addition, we deemed Open Text’s claim for interest on the jury award amount to be probable and estimable for the first time in July 2015. As such, we accrued additional expenses in the aggregate amount of $0.7 million during the year ended January 31, 2016, in relation to the interest on the jury award amount. On March 31, 2016, we entered into a Confidential Settlement and Release Agreement with Open Text (the “Settlement Agreement”), which fully settled the lawsuit and resulted in a full dismissal of the case against the Company. In connection with such settlement, we paid $3. 75 million in total to Open Text, and our obligation to pay the jury award amount of approximately $4.9 million and all pre- and post-judgment interest was terminated. The parties agreed to drop all appeals pending in connection with the litigation and each agreed to certain standard mutual releases related to the subject matter of the suit. We recorded the settlement payment of $3.75 million, reversed previous related accruals and interest of $5.6 million, and recorded $0.1 million in recurring amortization for the asset, resulting in net income of $1.7 million in our condensed consolidated statement of operations for the three months ended April 30, 2016 . In addition to the litigation discussed above, from time to time, we are a party to litigation and subject to claims that arise in the ordinary course of business. We investigate these claims as they arise, and accrue estimates for resolution of legal and other contingencies when losses are probable and estimable. Although the results of litigation and claims cannot be predicted with certainty, we believe there was not at least a reasonable possibility that we had incurred a material loss with respect to such loss contingencies as of July 31, 2017 Indemnification We include service level commitments to our customers warranting certain levels of uptime reliability and performance and permitting those customers to receive credits in the event that we fail to meet those levels. In addition, our customer contracts often include (i) specific obligations that we maintain the availability of the customer’s data through our service and that we secure customer content against unauthorized access or loss, and (ii) indemnity provisions whereby we indemnify our customers for third-party claims asserted against them that result from our failure to maintain the availability of their content or securing the same from unauthorized access or loss. To date, we have not incurred any material costs as a result of such commitments. Our arrangements generally include certain provisions for indemnifying customers against liabilities if our products or services infringe a third party’s intellectual property rights. It is not possible to determine the maximum potential amount under these indemnification obligations due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. To date, we have not incurred any material costs as a result of such obligations and have not accrued any material liabilities related to such obligations in the consolidated financial statements. In addition, we indemnify our officers, directors and certain key employees while they are serving in good faith in their respective capacities. To date, there have been no claims under any indemnification provisions. |
Debt
Debt | 6 Months Ended |
Jul. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Note 7. Debt Line of Credit In December 2015, we entered into a revolving credit facility (December 2015 Facility) with a lender in the amount of up to $40.0 million maturing in December 2017. The December 2015 Facility is denominated in U.S. dollars and, depending on certain conditions, each borrowing is subject to a floating interest rate equal to either the prime rate plus a spread of 0.25% to 2.75% or a reserve adjusted LIBOR rate (based on one, three or six-month interest periods) plus a spread of 1.25% to 3.75%. Although no minimum deposit is required for the December 2015 Facility, we are eligible for the lowest interest rate if we maintain at least $40 million in deposits with the lender. In addition, there is an annual fee of 0.2% on the total commitment amount. We drew $40.0 million at 1.82% (six month LIBOR plus 1.25%). Borrowings under the December 2015 Facility are collateralized by substantially all of our assets in the United States. It also contains various covenants, including covenants related to the delivery of financial and other information, the maintenance of quarterly financial covenants, as well as customary limitations on dispositions, mergers or consolidations and other corporate activities. As of July 31, 2017, we were in compliance with all financial covenants. In February 2017, we amended the December 2015 Facility to extend the maturity date to December 2018. Interest expense, net of capitalized interest costs, for the periods presented is not material. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jul. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 8. Stock-Based Compensation 2015 Equity Incentive Plan In January 2015, our board of directors adopted the 2015 Equity Incentive Plan (2015 Plan), which became effective prior to the completion of our initial public offering (IPO). A total of 12,200,000 shares of Class A common stock was initially reserved for issuance pursuant to future awards under the 2015 Plan. On the first day of each fiscal year, shares available for issuance are increased based on the provisions of the 2015 Plan. Any shares subject to outstanding awards under our 2006 Equity Incentive Plan (2006 Plan) or 2011 Equity Incentive Plan (2011 Plan) that are cancelled or repurchased subsequent to the 2015 Plan’s effective date are returned to the pool of shares reserved for issuance under the 2015 Plan. Awards granted under the 2015 Plan may be (i) incentive stock options, (ii) nonstatutory stock options, (iii) restricted stock units, (iv) restricted stock awards or (v) stock appreciation rights, as determined by our board of directors at the time of grant. Options and restricted stock units generally vest 25% one year from the vesting commencement date and (a) in the case of options, 1/48 th 2015 Employee Stock Purchase Plan In January 2015, our board of directors adopted the 2015 Employee Stock Purchase Plan (2015 ESPP), which became effective prior to the completion of our IPO. A total of 2,500,000 shares of Class A common stock was initially reserved for issuance under the 2015 ESPP. On the first day of each fiscal year, shares available for issuance are increased based on the provisions of the 2015 ESPP. The 2015 ESPP allows eligible employees to purchase shares of our Class A common stock at a discount of up to 15% through payroll deductions of their eligible compensation, subject to any plan limitations. Except for the initial offering period, the 2015 ESPP provides for 24-month offering periods beginning March 16 and September 16 of each year, and each offering period consists of four six-month purchase periods. On each purchase date, eligible employees will purchase our stock at a price per share equal to 85% of the lesser of (1) the fair market value of our stock on the offering date or (2) the fair market value of our stock on the purchase date. In the event the price is lower on the last day of any purchase price period, in addition to using that price as the basis for that purchase period, the offering period resets and the new lower price becomes the new offering price for a new 24 month offering period. As of July 31, 2017, 2,969,790 shares were reserved for future issuance under the 2015 ESPP. Stock Options The following table summarizes the stock option activity under the equity incentive plans and related information: Shares Weighted-Average Weighted- Remaining Average Exercise Contractual Life Aggregate Shares Price (Years) Intrinsic Value (in thousands) Balance as of January 31, 2017 12,318,800 $ 7.44 6.42 $ 119,606 Options granted 1,133,056 16.91 Option exercised (930,595 ) 5.82 Options forfeited/cancelled (784,749 ) 15.26 Balance as of July 31, 2017 11,736,512 $ 7.96 6.12 $ 127,825 Vested and expected to vest as of July 31, 2017 11,628,379 $ 7.90 6.10 $ 127,359 Exercisable as of July 31, 2017 9,164,951 $ 6.11 5.49 $ 116,739 The aggregate intrinsic value of options vested and expected to vest and exercisable as of July 31, 2017 is calculated based on the difference between the exercise price and the current fair value of our common stock. The aggregate intrinsic value of exercised options for the six months ended July 31, 2017 and 2016 was $11.2 million and $15.4 million, respectively. The aggregate estimated fair value of stock options granted to employees that vested for the six months ended July 31, 2017 and 2016 was $4.8 million and $9.6 million, respectively. The weighted-average grant date fair value of options granted to employees during the six months ended July 31, 2017 and 2016 was $6.82 and $5.10 per share, respectively. As of July 31, 2017, there was $14.3 million of unrecognized stock-based compensation expense related to outstanding stock options granted to employees that is expected to be recognized over a weighted-average period of 2.32 years. In April 2017, the compensation committee of our board of directors approved and granted 475,000 performance-based stock options under the 2015 Plan to certain executive officers where vesting is subject to both the continued employment of the participant and the achievement of market based performance goals established by the Compensation Committee. Subject to the achievement of the performance goals, th Restricted Stock Units The following table summarizes the restricted stock unit activity under the equity incentive plans and related information: Number of Weighted- Restricted Average Stock Units Grant Date Outstanding Fair Value Unvested balance - January 31, 2017 11,822,316 $ 14.67 Granted 5,260,434 17.57 Vested, net of shares withheld for employee payroll taxes (1,297,031 ) 13.68 Forfeited/cancelled, including shares withheld for employee payroll taxes (1,603,930 ) 14.38 Unvested balance - July 31, 2017 14,181,789 $ 15.87 As of July 31, 2017, there was $197.4 million of unrecognized stock-based compensation expense related to outstanding restricted stock units granted to employees that is expected to be recognized over a weighted-average period of 2.93 years. 2015 ESPP As of July 31, 2017, there was $7.1 million of unrecognized stock-based compensation expense related to the 2015 ESPP that is expected to be recognized over the remaining term of the respective offering periods. Stock-Based Compensation The following table summarizes the components of stock-based compensation expense recognized in the consolidated statements of operations (in thousands): Three Months Ended Six Months Ended July 31, July 31, 2017 2016 2017 2016 Cost of revenue $ 2,663 $ 1,830 $ 5,131 $ 3,342 Research and development 9,554 7,348 18,714 13,872 Sales and marketing 7,934 6,416 15,674 11,646 General and administrative 3,916 3,470 7,494 6,293 Total stock-based compensation $ 24,067 $ 19,064 $ 47,013 $ 35,153 Determination of Fair Value We estimated the fair value of employee stock options and 2015 ESPP purchase rights using generally a Black-Scholes option pricing model with the following assumptions: Three Months Ended Six Months Ended July 31, July 31, 2017 2016 2017 2016 Employee Stock Options Expected term (in years) 5.5 - 6.0 5.5 - 6.0 5.5 - 6.0 5.5 - 6.0 Risk-free interest rate 1.8 % - 2.0% 1.3 % - 1.5% 1.8 % - 2.4% 1.3 % - 1.5% Volatility 38 % - 39% 43% 38 % - 40% 43% Dividend yield 0% 0% 0% 0% Employee Stock Purchase Plan Expected term (in years) 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 Risk-free interest rate 0.9 % - 1.4% 0.5 % - 0.9% 0.9 % - 1.4% 0.5 % - 0.9% Volatility 28 % - 43% 46 % - 60% 28 % - 43% 46 % - 60% Dividend yield 0% 0% 0% 0% The assumptions used in the Black-Scholes option pricing model were determined as follows: Fair Value of Common Stock . Prior to our IPO in January 2015, our board of directors considered numerous objective and subjective factors to determine the fair value of our common stock at each grant date. These factors included, but were not limited to, (i) contemporaneous valuations of our common stock performed by unrelated third-party specialists; (ii) the prices for our redeemable convertible preferred stock sold to outside investors; (iii) the rights, preferences and privileges of our redeemable convertible preferred stock relative to our common stock; (iv) the lack of marketability of our common stock; (v) developments in the business; and (vi) the likelihood of achieving a liquidity event, such as an IPO or a merger or acquisition, given prevailing market conditions. Subsequent to the completion of our IPO, we use the market closing price for our Class A common stock as reported on the New York Stock Exchange to determine the fair value of our common stock at each grant date. Expected Term . The expected term represents the period that our share-based awards are expected to be outstanding. The expected term assumptions were determined based on the vesting terms, exercise terms and contractual lives of the options and 2015 ESPP purchase rights. Expected Volatility . Since we do not have sufficient trading history of our common stock, the expected volatility was derived from the historical stock volatilities of several unrelated public companies within the same industry that we consider to be comparable to our business over a period equivalent to the expected term of the stock option grants and 2015 ESPP purchase rights. Risk-free Interest Rate . The risk-free rate that we use is based on U.S. Treasury zero-coupon issues with remaining terms similar to the expected term on the options. Dividend Yield . We have never declared or paid any cash dividends and do not plan to pay cash dividends in the foreseeable future, and, therefore, use an expected dividend yield of zero. |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Jul. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Note 9. Net Loss per Share We calculate our basic and diluted net loss per share in conformity with the two-class method required for companies with participating securities. Under the two-class method, basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding for the period, less shares subject to repurchase. The diluted net loss per share is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, options to purchase common stock, restricted stock units, employee stock purchase plan, repurchasable shares from early exercised options and unvested restricted stock, and contingently issuable shares are considered common stock equivalents but have been excluded from the calculation of diluted net loss per share as their effect is antidilutive. The rights, including the liquidation and dividend rights, of the holders of our Class A and Class B common stock are identical, except with respect to voting and conversion. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis and the resulting net loss per share will, therefore, be the same for both Class A and Class B common stock on an individual or combined basis. We did not present dilutive net loss per share on an as-if converted basis because the impact was not dilutive. The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share amounts): Three Months Ended July 31, 2017 2016 Class A Class B Class A Class B Numerator: Net loss $ (27,909 ) $ (11,376 ) $ (15,305 ) $ (22,797 ) Denominator: Weighted-average number of shares outstanding—basic and diluted 94,471 38,510 50,925 75,851 Net loss per share—basic and diluted $ (0.30 ) $ (0.30 ) $ (0.30 ) $ (0.30 ) Six Months Ended July 31, 2017 2016 Class A Class B Class A Class B Numerator: Net loss $ (50,163 ) $ (29,208 ) $ (28,983 ) $ (47,694 ) Denominator: Weighted-average number of shares outstanding—basic and diluted 83,574 48,663 47,575 78,289 Net loss per share—basic and diluted $ (0.60 ) $ (0.60 ) $ (0.61 ) $ (0.61 ) The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net loss per share for the periods presented because the impact of including them would have been antidilutive (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2017 2016 2017 2016 Options to purchase common stock 12,345 13,782 12,267 14,338 Restricted stock units 13,624 10,218 13,088 9,305 Employee stock purchase plan 1,989 2,906 2,075 2,891 Repurchasable shares from early-exercised options and unvested restricted stock 214 346 227 370 Contingently issuable common stock 54 80 56 84 28,226 27,332 27,713 26,988 |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10. Income Taxes Utilization of the net operating loss carryforwards and credits may be subject to substantial annual limitation due to the ownership change limitations provided by Section 382 of the Internal Revenue Code of 1986, as amended, and similar state provisions. The annual limitation may result in the expiration of net operating losses and credits before utilization. We evaluate tax positions for recognition using a more-likely-than-not recognition threshold, and those tax positions eligible for recognition are measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon the effective settlement with a taxing authority that has full knowledge of all relevant information. We file tax returns in the United States for federal, California, and other states. All tax years remain open to examination for both federal and state purposes as a result of our net operating loss and credit carryforwards. We file foreign tax returns in the United Kingdom starting with the year ended January 31, 2013, in France, Germany and Japan starting with the year ended January 31, 2014, in Canada starting with the year ended January 31, 2015, and in Australia, Sweden, and Netherlands starting with the year ended January 31, 2016. These tax years remain open to examination. We believe that we have provided adequate reserves for our income tax uncertainties in all open tax years. We do not expect our gross unrecognized tax benefits to change significantly over the next 12 months. |
Segments
Segments | 6 Months Ended |
Jul. 31, 2017 | |
Segment Reporting [Abstract] | |
Segments | Note 11. Segments Our chief operating decision maker reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. As such, we have a single reporting segment and operating unit structure. Since we operate in one operating segment, all required segment information can be found in the consolidated financial statements. |
Description of Business and B18
Description of Business and Basis of Presentation (Policies) | 6 Months Ended |
Jul. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated balance sheet as of July 31, 2017 and the condensed consolidated statements of operations, the condensed consolidated statements of comprehensive loss and the condensed consolidated statements of cash flows for the three and six months ended July 31, 2017 and 2016, respectively, are unaudited. The condensed consolidated balance sheet data as of January 31, 2017 was derived from the audited consolidated financial statements that are included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2017 (the “Form 10-K”), which was filed with the Securities and Exchange Commission (the “SEC”) on March 24, 2017. The accompanying statements should be read in conjunction with the audited consolidated financial statements and related notes contained in our Form 10-K. Other than items discussed under Recently Adopted Accounting Pronouncements , there have been no other material changes to our critical accounting policies and estimates during the six months ended July 31, 2017 from those disclosed in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Form 10-K. The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the financial information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of our management, the unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements in the Form 10-K, and include all adjustments necessary for the fair presentation of our balance sheet as of July 31, 2017, and our results of operations, including our comprehensive loss, and our cash flows for the three and six months ended July 31, 2017 and 2016. All adjustments are of a normal recurring nature. The results for the three and six months ended July 31, 2017 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending January 31, 2018. Certain prior year balances have been reclassified to conform to the current year presentation. Such reclassifications did not affect total revenues, operating income or net income. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make, on an ongoing basis, estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ from these estimates. Such estimates include, but are not limited to, the determination of the allowance for accounts receivable, fair value of acquired intangible assets and goodwill, useful lives of acquired intangible assets and property and equipment, best estimate of selling price included in multiple-deliverable revenue arrangements, fair values of stock-based awards, legal contingencies, and the provision for income taxes, including related reserves, among others. Management bases its estimates on historical experience and on various other assumptions which management believes to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. |
Certain Risks and Concentrations | Certain Risks and Concentrations Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash and accounts receivable. Although we deposit our cash with multiple financial institutions, our deposits, at times, may exceed federally insured limits. We sell to a broad range of customers, including resellers. Our revenue is derived substantially from the United States across a multitude of industries. Accounts receivable are derived from the delivery of our services to customers primarily located in the United States. We accept and settle our accounts receivable using credit cards, electronic payments and checks. A majority of our lower dollar value invoices are settled by credit card on or near the date of the invoice. We do not require collateral from customers to secure accounts receivable. We maintain an allowance for accounts receivable based upon the expected collectability, which takes into consideration specific customer creditworthiness and current economic trends. We believe collections of our accounts receivable are reasonably assured based on the size, industry diversification, financial condition and past transaction history of our customers. As of July 31, 2017, one customer, which was a reseller, accounted for more than 10% of total accounts receivable. As of January 31, 2017, two customers, which were both resellers, accounted for more than 10% of total accounts receivable. No single customer, including resellers, represented over 10% of revenue for the three and six months ended July 31, 2017 and 2016. We serve our customers and users from datacenter facilities operated by third parties. In order to reduce the risk of down time of our enterprise cloud content services, we have established datacenters and third-party cloud computing and hosting providers in various locations in the United States and abroad. We have internal procedures to restore services in the event of disaster at any one of our current datacenter facilities. Even with these procedures for disaster recovery in place, our cloud services could be significantly interrupted during the implementation of the procedures to restore services. Geographic Locations For the three and six months ended July 31, 2017, revenue attributable to customers in the United States and customers outside the United States was 79% and 21%, respectively. For the three and six months ended July 31, 2016, revenue attributable to customers in the United States and customers outside the United States was 83% and 17%, respectively. No other country outside of the United States comprised 10% or greater of our revenue for any of the periods presented. Substantially all of our net assets are located in the United States. As of July 31, 2017 and January 31, 2017, property and equipment located in the United States was 99.7%. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In November 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (“ASU”) 2016-18 , Statement of Cash Flows: Restricted Cash In June 2016, the FASB issued ASU 2016-13, Financial Instruments- Credit Losses In February 2016, the FASB issued ASU 2016-02, Leases In May 2014, the FASB issued ASU 2014-09 regarding ASC Topic 606, We have established a cross-functional coordinated implementation team to implement the standard update related to the recognition of revenue from contracts with customers. We have identified, and are in the process of implementing, appropriate changes to our business processes, systems and controls to support recognition and disclosure under the new standard. Based on our ongoing evaluation, we believe the impacts of this ASU will be related to the capitalization and amortization of sales commissions, the timing of revenue recognition for certain sales contracts, and their respective disclosures. There will be a change to the period over which sales commissions will be amortized to align to an expected period of benefit and a change to the scope of capitalized sales commissions based on the definition of incremental costs of obtaining a contract. In addition, there will be a change in relation to the timing of revenue recognition for certain sales contracts, due primarily to the removal of the current limitation on contingent revenue. These changes are being evaluated to determine the potential impact to our financial statements and disclosures. We continue to assess all potential impacts of this ASU, so our preliminary conclusions may change. Recently Adopted Accounting Pronouncements In January 2017, FASB issued ASU 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment. We elected to early adopt ASU 2107-04 during the second quarter of fiscal year 2018. The adoption of this ASU had no impact on our condensed consolidated financial statements. We expect that adoption of this ASU will simplify the evaluation and recording of goodwill impairment charges, if any. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payment We elected to early adopt ASU 2016-15 during the second quarter of fiscal year 2018. The new standard requires application using a retrospective transition method. We have evaluated the impact on a quantitative and qualitative basis and concluded it was not material to any of prior periods presented. In April 2016, the FASB issued ASU 2016-09, Compensation- Stock Compensation We adopted ASU 2016-09 during the first quarter of fiscal year 2018. As required by the standard, excess tax benefits recognized on stock-based compensation expense were prospectively reflected in our condensed consolidated statements of income as a component of the provision for income taxes rather than on the condensed consolidated balance sheet as a paid-in capital. Included in our net operating loss and research and development tax credit carryforwards are approximately $25.2 million of excess tax benefits from employee stock option exercises, for which we have not realized a deferred tax asset since it is fully offset by a valuation allowance, resulting in no impact to our condensed consolidated financial statements including any cumulative effect to accumulated deficit from previously unrecognized excess tax benefits. Our policy has been to classify cash flows related to excess tax benefits as part of operating activities and cash payments made on employee’s behalf for withheld shares as part of financing activities, and thus, the adoption of this standard had no effect on our condensed consolidated statements of cash flows. Further, we did not elect an accounting policy change to record forfeitures as they occur and thus will continue to estimate the number of forfeitures expected to occur. Other amendments in the guidance did not impact our condensed consolidated financial statements. |
Stock-Based Compensation | The assumptions used in the Black-Scholes option pricing model were determined as follows: Fair Value of Common Stock . Prior to our IPO in January 2015, our board of directors considered numerous objective and subjective factors to determine the fair value of our common stock at each grant date. These factors included, but were not limited to, (i) contemporaneous valuations of our common stock performed by unrelated third-party specialists; (ii) the prices for our redeemable convertible preferred stock sold to outside investors; (iii) the rights, preferences and privileges of our redeemable convertible preferred stock relative to our common stock; (iv) the lack of marketability of our common stock; (v) developments in the business; and (vi) the likelihood of achieving a liquidity event, such as an IPO or a merger or acquisition, given prevailing market conditions. Subsequent to the completion of our IPO, we use the market closing price for our Class A common stock as reported on the New York Stock Exchange to determine the fair value of our common stock at each grant date. Expected Term . The expected term represents the period that our share-based awards are expected to be outstanding. The expected term assumptions were determined based on the vesting terms, exercise terms and contractual lives of the options and 2015 ESPP purchase rights. Expected Volatility . Since we do not have sufficient trading history of our common stock, the expected volatility was derived from the historical stock volatilities of several unrelated public companies within the same industry that we consider to be comparable to our business over a period equivalent to the expected term of the stock option grants and 2015 ESPP purchase rights. Risk-free Interest Rate . The risk-free rate that we use is based on U.S. Treasury zero-coupon issues with remaining terms similar to the expected term on the options. Dividend Yield . We have never declared or paid any cash dividends and do not plan to pay cash dividends in the foreseeable future, and, therefore, use an expected dividend yield of zero. |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 6 Months Ended |
Jul. 31, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands): July 31, January 31, 2017 2017 Prepaid expenses $ 12,940 $ 9,256 Other current assets 3,691 1,570 Total prepaid expenses and other current assets $ 16,631 $ 10,826 |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): July 31, January 31, 2017 2017 Servers $ 156,297 $ 143,219 Leasehold improvements 64,457 64,379 Computer hardware and software 12,119 11,373 Furniture and fixtures 13,061 12,824 Construction in progress 6,477 5,882 Total property and equipment 252,411 237,677 Less: accumulated depreciation (135,328 ) (120,501 ) Total property and equipment, net $ 117,083 $ 117,176 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jul. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Components of Intangible Assets | Intangible assets consisted of the following (in thousands): Weighted Average Useful Life (1) Gross Value Accumulated Amortization Net Carrying Value July 31, 2017 Developed technology 2.5 years $ 14,273 $ (14,273 ) $ — Trade name and other 6.9 years 1,201 (1,100 ) 101 Intangibles, net $ 15,474 $ (15,373 ) $ 101 January 31, 2017 Developed technology 2.5 years $ 14,273 $ (13,908 ) $ 365 Trade name and other 6.9 years 1,201 (1,023 ) 178 Intangibles, net $ 15,474 $ (14,931 ) $ 543 (1) From the date of acquisition |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jul. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments under Non-cancellable Capital and Operating Leases | As of July 31, 2017, future minimum lease payments under non-cancellable capital and operating leases are as follows (in thousands): Years ending January 31: Capital Leases Operating Leases, Sublease Income Remainder of 2018 $ 9,512 $ 12,442 2019 16,283 28,068 2020 10,782 32,454 2021 7,297 33,398 2022 916 30,705 Thereafter — 161,202 Total minimum lease payments $ 44,790 $ 298,269 Less: amount representing interest (1,487 ) Present value of minimum lease payments $ 43,303 |
Future Payments under Non-cancellable Contractual Purchases | As of July 31, 2017, future payments under non-cancellable contractual purchases, which relate primarily to datacenter operations and sales and marketing activities, are as follows (in thousands): Years ending January 31: Remainder of 2018 $ 6,055 2019 21,533 2020 16,683 $ 44,271 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jul. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity Under Equity Incentive Plans and Related Information | The following table summarizes the stock option activity under the equity incentive plans and related information: Shares Weighted-Average Weighted- Remaining Average Exercise Contractual Life Aggregate Shares Price (Years) Intrinsic Value (in thousands) Balance as of January 31, 2017 12,318,800 $ 7.44 6.42 $ 119,606 Options granted 1,133,056 16.91 Option exercised (930,595 ) 5.82 Options forfeited/cancelled (784,749 ) 15.26 Balance as of July 31, 2017 11,736,512 $ 7.96 6.12 $ 127,825 Vested and expected to vest as of July 31, 2017 11,628,379 $ 7.90 6.10 $ 127,359 Exercisable as of July 31, 2017 9,164,951 $ 6.11 5.49 $ 116,739 |
Summary of Restricted Stock Unit Activity Under Equity Incentive Plans and Related Information | The following table summarizes the restricted stock unit activity under the equity incentive plans and related information: Number of Weighted- Restricted Average Stock Units Grant Date Outstanding Fair Value Unvested balance - January 31, 2017 11,822,316 $ 14.67 Granted 5,260,434 17.57 Vested, net of shares withheld for employee payroll taxes (1,297,031 ) 13.68 Forfeited/cancelled, including shares withheld for employee payroll taxes (1,603,930 ) 14.38 Unvested balance - July 31, 2017 14,181,789 $ 15.87 |
Summary of Components of Stock-Based Compensation Expense | The following table summarizes the components of stock-based compensation expense recognized in the consolidated statements of operations (in thousands): Three Months Ended Six Months Ended July 31, July 31, 2017 2016 2017 2016 Cost of revenue $ 2,663 $ 1,830 $ 5,131 $ 3,342 Research and development 9,554 7,348 18,714 13,872 Sales and marketing 7,934 6,416 15,674 11,646 General and administrative 3,916 3,470 7,494 6,293 Total stock-based compensation $ 24,067 $ 19,064 $ 47,013 $ 35,153 |
Summary of Estimated Fair Value of Employee Stock Options | We estimated the fair value of employee stock options and 2015 ESPP purchase rights using generally a Black-Scholes option pricing model with the following assumptions: Three Months Ended Six Months Ended July 31, July 31, 2017 2016 2017 2016 Employee Stock Options Expected term (in years) 5.5 - 6.0 5.5 - 6.0 5.5 - 6.0 5.5 - 6.0 Risk-free interest rate 1.8 % - 2.0% 1.3 % - 1.5% 1.8 % - 2.4% 1.3 % - 1.5% Volatility 38 % - 39% 43% 38 % - 40% 43% Dividend yield 0% 0% 0% 0% Employee Stock Purchase Plan Expected term (in years) 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 Risk-free interest rate 0.9 % - 1.4% 0.5 % - 0.9% 0.9 % - 1.4% 0.5 % - 0.9% Volatility 28 % - 43% 46 % - 60% 28 % - 43% 46 % - 60% Dividend yield 0% 0% 0% 0% |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 6 Months Ended |
Jul. 31, 2017 | |
Earnings Per Share [Abstract] | |
Summary of Computation of Basic and Diluted Net Loss Per Share | The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share amounts): Three Months Ended July 31, 2017 2016 Class A Class B Class A Class B Numerator: Net loss $ (27,909 ) $ (11,376 ) $ (15,305 ) $ (22,797 ) Denominator: Weighted-average number of shares outstanding—basic and diluted 94,471 38,510 50,925 75,851 Net loss per share—basic and diluted $ (0.30 ) $ (0.30 ) $ (0.30 ) $ (0.30 ) Six Months Ended July 31, 2017 2016 Class A Class B Class A Class B Numerator: Net loss $ (50,163 ) $ (29,208 ) $ (28,983 ) $ (47,694 ) Denominator: Weighted-average number of shares outstanding—basic and diluted 83,574 48,663 47,575 78,289 Net loss per share—basic and diluted $ (0.60 ) $ (0.60 ) $ (0.61 ) $ (0.61 ) |
Summary of Weighted Average Outstanding Shares Excluded from Computation of Diluted Net Loss per Share | The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net loss per share for the periods presented because the impact of including them would have been antidilutive (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2017 2016 2017 2016 Options to purchase common stock 12,345 13,782 12,267 14,338 Restricted stock units 13,624 10,218 13,088 9,305 Employee stock purchase plan 1,989 2,906 2,075 2,891 Repurchasable shares from early-exercised options and unvested restricted stock 214 346 227 370 Contingently issuable common stock 54 80 56 84 28,226 27,332 27,713 26,988 |
Description of Business and B24
Description of Business and Basis of Presentation - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jul. 31, 2017USD ($)Customer | Jul. 31, 2016Customer | Jul. 31, 2017USD ($)Customer | Jul. 31, 2016Customer | Jan. 31, 2017USD ($)Customer | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Restricted cash | $ | $ 26,543 | $ 26,543 | $ 26,781 | ||
Excess tax benefits from employee stock option exercises included in net operating loss and research and development tax credit forwards | $ | $ 25,200 | ||||
Credit Concentration Risk | Accounts Receivable | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Number of major customer | Customer | 1 | 1 | 2 | ||
Concentration risk percentage | 10.00% | 10.00% | |||
Customer Concentration Risk | Revenue | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Number of major customer | Customer | 0 | 0 | 0 | 0 | |
Concentration risk percentage | 10.00% | 10.00% | 10.00% | 10.00% | |
Geographic Concentration Risk | Revenue | Non-U.S. | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Concentration risk percentage | 21.00% | 17.00% | 21.00% | 17.00% | |
Geographic Concentration Risk | Revenue | United States | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Concentration risk percentage | 79.00% | 83.00% | 79.00% | 83.00% | |
Geographic Concentration Risk | Property and Equipment | United States | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Concentration risk percentage | 99.70% | 99.70% |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | Jul. 31, 2017 | Jan. 31, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Restricted cash | $ 26,543 | $ 26,781 |
Certificates of Deposit | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Restricted cash | $ 26,500 | $ 26,800 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jul. 31, 2017 | Jan. 31, 2017 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 12,940 | $ 9,256 |
Other current assets | 3,691 | 1,570 |
Total prepaid expenses and other current assets | $ 16,631 | $ 10,826 |
Balance Sheet Components - Sc27
Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jul. 31, 2017 | Jan. 31, 2017 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | $ 252,411 | $ 237,677 |
Less: accumulated depreciation | (135,328) | (120,501) |
Total property and equipment, net | 117,083 | 117,176 |
Servers | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 156,297 | 143,219 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 64,457 | 64,379 |
Computer hardware and software | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 12,119 | 11,373 |
Furniture and fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 13,061 | 12,824 |
Construction in progress | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | $ 6,477 | $ 5,882 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | Jan. 31, 2017 | |
Property Plant And Equipment [Line Items] | |||||
Accumulated depreciation of property and equipment acquired under capital lease | $ 18.8 | $ 18.8 | $ 10.4 | ||
Depreciation expense | 9.7 | $ 9.8 | 18.9 | $ 20.4 | |
Servers | |||||
Property Plant And Equipment [Line Items] | |||||
Gross amount of property and equipment acquired under capital lease | 61.7 | 61.7 | 43.2 | ||
Depreciation expense | 4.6 | $ 1.6 | 8.4 | $ 2.9 | |
Construction in progress | |||||
Property Plant And Equipment [Line Items] | |||||
Gross amount of property and equipment acquired under capital lease | $ 3.7 | $ 3.7 | $ 5.6 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) $ in Millions | Aug. 30, 2016USD ($) |
Wagon Analytics, Inc. | |
Business Acquisition [Line Items] | |
Business acquisition, aggregate purchase price | $ 2 |
Goodwill and Intangible Asset30
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Goodwill acquired | $ 0 | $ 0 | ||
Amortization of intangible assets | $ 900,000 | $ 400,000 | $ 2,400,000 |
Goodwill and Intangible Asset31
Goodwill and Intangible Assets - Schedule of Components of Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jul. 31, 2017 | Jan. 31, 2017 | ||
Finite Lived Intangible Assets [Line Items] | |||
Gross Value | $ 15,474 | $ 15,474 | |
Accumulated Amortization | (15,373) | (14,931) | |
Net Carrying Value | $ 101 | $ 543 | |
Developed Technology | |||
Finite Lived Intangible Assets [Line Items] | |||
Weighted Average Useful Life | [1] | 2 years 6 months | 2 years 6 months |
Gross Value | $ 14,273 | $ 14,273 | |
Accumulated Amortization | $ (14,273) | (13,908) | |
Net Carrying Value | $ 365 | ||
Trade name and other | |||
Finite Lived Intangible Assets [Line Items] | |||
Weighted Average Useful Life | [1] | 6 years 10 months 24 days | 6 years 10 months 24 days |
Gross Value | $ 1,201 | $ 1,201 | |
Accumulated Amortization | (1,100) | (1,023) | |
Net Carrying Value | $ 101 | $ 178 | |
[1] | From the date of acquisition |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Thousands | Mar. 31, 2016USD ($) | Feb. 13, 2015USD ($) | Jul. 31, 2017USD ($) | Jul. 31, 2016USD ($) | Apr. 30, 2016USD ($) | Jul. 31, 2017USD ($) | Jul. 31, 2016USD ($) | Jan. 31, 2017USD ($)Floor | Jan. 31, 2016USD ($) | Jan. 31, 2015USD ($) |
Commitments And Contingencies [Line Items] | ||||||||||
Letters of credit facility | $ 26,500 | $ 26,500 | $ 26,800 | |||||||
Rent expense | 6,900 | $ 4,200 | 12,200 | $ 8,600 | ||||||
Sublease income | 1,900 | 1,700 | 3,700 | 3,200 | ||||||
Amortization of intangible assets | $ 900 | $ 400 | $ 2,400 | |||||||
Settlement Agreement | ||||||||||
Commitments And Contingencies [Line Items] | ||||||||||
Amortization of intangible assets | $ 100 | |||||||||
Date of settlement agreement | Mar. 31, 2016 | |||||||||
Jury award amount | 4,900 | |||||||||
Reversal of Previous Settlement Accruals and Interest | 5,600 | |||||||||
Income (Loss) Related to Litigation Settlement | $ 1,700 | |||||||||
Open Text S.A. | ||||||||||
Commitments And Contingencies [Line Items] | ||||||||||
Damage awarded | $ 4,900 | |||||||||
Accrual in relation to the jury award | $ 4,900 | |||||||||
Litigation expense | $ 3,900 | |||||||||
Weighted Average Useful Life | 14 months | |||||||||
Accrued additional liability related to the interest on the jury award | $ 700 | |||||||||
Open Text S.A. | Settlement Agreement | ||||||||||
Commitments And Contingencies [Line Items] | ||||||||||
Settlement amount paid | $ 3,750 | |||||||||
Open Text S.A. | General and Administrative Expense | ||||||||||
Commitments And Contingencies [Line Items] | ||||||||||
Amortization of intangible assets | $ 900 | |||||||||
San Francisco Building | ||||||||||
Commitments And Contingencies [Line Items] | ||||||||||
Number of floors for headquarters | Floor | 1 | |||||||||
Subleases Expire in Fiscal 2018 and 2021 | ||||||||||
Commitments And Contingencies [Line Items] | ||||||||||
Non-cancellable sublease proceeds for the year ending January 31, 2018 | 3,600 | $ 3,600 | ||||||||
Non-cancellable sublease proceeds for the year ending January 31, 2019 | 5,800 | 5,800 | ||||||||
Non-cancellable sublease proceeds for the year ending January 31, 2020 | 1,900 | 1,900 | ||||||||
Non-cancellable sublease proceeds for the year ending January 31, 2021 | $ 1,700 | $ 1,700 | ||||||||
Minimum | ||||||||||
Commitments And Contingencies [Line Items] | ||||||||||
Operating lease expiration year | 2,018 | |||||||||
Capital lease term | 3 years | |||||||||
Term of sublease arrangement | 19 months | |||||||||
Non-cancellable sublease expiration year | 2,018 | |||||||||
Maximum | ||||||||||
Commitments And Contingencies [Line Items] | ||||||||||
Operating lease expiration year | 2,029 | |||||||||
Capital lease term | 4 years | |||||||||
Term of sublease arrangement | 49 months | |||||||||
Non-cancellable sublease expiration year | 2,021 |
Commitments and Contingencies33
Commitments and Contingencies - Future Minimum Lease Payments under Non-cancellable Capital and Operating Leases (Details) $ in Thousands | Jul. 31, 2017USD ($) |
Capital Leases | |
Capital Leases, Remainder of 2018 | $ 9,512 |
Capital Leases, 2019 | 16,283 |
Capital Leases, 2020 | 10,782 |
Capital Leases, 2021 | 7,297 |
Capital Leases, 2022 | 916 |
Capital Leases, Total minimum lease payments | 44,790 |
Capital Leases, Less: amount representing interest | (1,487) |
Capital Leases, Present value of minimum lease payments | 43,303 |
Operating Leases | |
Operating Leases, net of Sublease Income, Remainder of 2018 | 12,442 |
Operating Leases, net of Sublease Income, 2019 | 28,068 |
Operating Leases, net of Sublease Income, 2020 | 32,454 |
Operating Leases, net of Sublease Income, 2021 | 33,398 |
Operating Leases, net of Sublease Income, 2022 | 30,705 |
Operating Leases, net of Sublease Income, Thereafter | 161,202 |
Operating Leases, net of Sublease Income, Total minimum lease payments | $ 298,269 |
Commitments and Contingencies34
Commitments and Contingencies - Future Payments under Non-cancellable Contractual Purchases (Details) $ in Thousands | Jul. 31, 2017USD ($) |
Contractual Obligation Fiscal Year Maturity [Abstract] | |
Remainder of 2018 | $ 6,055 |
2,019 | 21,533 |
2,020 | 16,683 |
Total | $ 44,271 |
Debt - Additional Information (
Debt - Additional Information (Details) - December Two Thousand Fifteen Facility - Revolving Credit Facility - Secured Debt - USD ($) | 1 Months Ended | 6 Months Ended |
Dec. 31, 2015 | Jul. 31, 2017 | |
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 40,000,000 | |
Debt instrument, description of variable rate basis | The December 2015 Facility is denominated in U.S. dollars and, depending on certain conditions, each borrowing is subject to a floating interest rate equal to either the prime rate plus a spread of 0.25% to 2.75% or a reserve adjusted LIBOR rate (based on one, three or six-month interest periods) plus a spread of 1.25% to 3.75%. | |
Line of credit facility, commitment fee percentage | 0.20% | |
Line of credit facility, amount drawn | $ 40,000,000 | |
Line of credit facility, interest rate | 1.82% | |
Line of credit facility maturity date | Dec. 31, 2018 | |
London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Line of credit facility, floating interest rate | 1.25% | |
Minimum | ||
Debt Instrument [Line Items] | ||
Minimum deposit held as collateral for line of credit | $ 0 | |
Minimum deposit amount with lender | $ 40,000,000 | |
Minimum | Prime Rate | ||
Debt Instrument [Line Items] | ||
Line of credit facility, floating interest rate | 0.25% | |
Minimum | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Line of credit facility, floating interest rate | 1.25% | |
Maximum | Prime Rate | ||
Debt Instrument [Line Items] | ||
Line of credit facility, floating interest rate | 2.75% | |
Maximum | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Line of credit facility, floating interest rate | 3.75% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2017 | Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | Jan. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Description of offering period excluding initial offering period | the offering period resets and the new lower price becomes the new offering price for a new 24 month offering period | |||||
Aggregate intrinsic value of exercised options | $ 11.2 | $ 15.4 | ||||
Aggregate estimated fair value of stock options granted to employees vested | $ 4.8 | $ 9.6 | ||||
Weighted-average grant date fair value of options granted to employees | $ 6.82 | $ 5.10 | ||||
Unrecognized stock-based compensation expense related to stock option | $ 14.3 | $ 14.3 | ||||
Remaining weighted-average period | 2 years 3 months 26 days | |||||
Stock options forfeited | 784,749 | |||||
Restricted Stock Units | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Remaining weighted-average period | 2 years 11 months 5 days | |||||
Unrecognized stock-based compensation expense | $ 197.4 | $ 197.4 | ||||
Employee Stock Option | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% | ||
2015 Equity Incentive Plan | Performance-Based Stock Options | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock options granted | 475,000 | |||||
Stock options forfeited | 250,000 | |||||
2015 Equity Incentive Plan | Class A Common Stock | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares common stock reserved for issuance | 17,308,516 | 17,308,516 | 12,200,000 | |||
2015 Employee Stock Purchase Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares common stock reserved for issuance | 2,969,790 | 2,969,790 | ||||
Percentage of eligible compensation allowed to employees to purchase shares at a discount | 15.00% | 15.00% | ||||
Description of offering period excluding initial offering period | Except for the initial offering period, the 2015 ESPP provides for 24-month offering periods beginning March 16 and September 16 of each year, and each offering period consists of four six-month purchase periods. | |||||
Purchase price of common stock, percentage | 85.00% | |||||
Unrecognized stock-based compensation expense | $ 7.1 | $ 7.1 | ||||
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% | ||
2015 Employee Stock Purchase Plan | Class A Common Stock | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares common stock reserved for issuance | 2,500,000 | |||||
Vesting Commencement Per Year | 2015 Equity Incentive Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Options and restricted stock units vesting percentage | 25.00% | |||||
Vesting Commencement Per Month | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Options and restricted stock units vesting percentage | 2.08% | |||||
Vesting Commencement Per Quarter | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Options and restricted stock units vesting percentage | 6.25% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity Under Equity Incentive Plans and Related Information (Details) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jul. 31, 2017USD ($)$ / sharesshares | Jan. 31, 2017USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Shares Subject to Options Outstanding, Beginning balance | shares | 12,318,800 | |
Shares Subject to Options Outstanding, Options granted | shares | 1,133,056 | |
Shares Subject to Options Outstanding, Options exercised | shares | (930,595) | |
Shares Subject to Options Outstanding, Options forfeited/cancelled | shares | (784,749) | |
Shares Subject to Options Outstanding, Ending balance | shares | 11,736,512 | 12,318,800 |
Shares Subject to Options Outstanding, Vested and expected to vest | shares | 11,628,379 | |
Shares Subject to Options Outstanding, Exercisable | shares | 9,164,951 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Weighted Average Exercise Price, Beginning Balance | $ / shares | $ 7.44 | |
Weighted Average Exercise Price, Options granted | $ / shares | 16.91 | |
Weighted Average Exercise Price, Options exercised | $ / shares | 5.82 | |
Weighted Average Exercise Price, Options forfeited/cancelled | $ / shares | 15.26 | |
Weighted Average Exercise Price, Ending Balance | $ / shares | 7.96 | $ 7.44 |
Weighted Average Exercise Price, Vested and expected to vest | $ / shares | 7.90 | |
Weighted Average Exercise Price, Exercisable | $ / shares | $ 6.11 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted Average Remaining Contractual Life (Years) | 6 years 1 month 13 days | 6 years 5 months 1 day |
Weighted Average Remaining Contractual Life (Years), Vested and expected to vest | 6 years 1 month 6 days | |
Weighted Average Remaining Contractual Life (Years), Exercisable | 5 years 5 months 27 days | |
Aggregate Intrinsic Value, Balance | $ | $ 127,825 | $ 119,606 |
Aggregate Intrinsic Value, Vested and expected to vest | $ | 127,359 | |
Aggregate Intrinsic Value, Exercisable | $ | $ 116,739 |
Stock-Based Compensation - Su38
Stock-Based Compensation - Summary of Restricted Stock Unit and Awards Activity Under Equity Incentive Plans and Related Information (Details) - Restricted Stock Units | 6 Months Ended |
Jul. 31, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Number of Restricted Stock Units/Awards Outstanding, Unvested Beginning Balance | shares | 11,822,316 |
Number of Restricted Stock Units/Awards Outstanding Granted | shares | 5,260,434 |
Number of Restricted Stock Units/Awards Outstanding, Vested | shares | (1,297,031) |
Number of Restricted Stock Units/Awards Outstanding, Forfeited/cancelled | shares | (1,603,930) |
Number of Restricted Stock Units/Awards Outstanding Unvested Ending Balance | shares | 14,181,789 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-Average Grant Date Fair Value, Unvested Beginning Balance | $ / shares | $ 14.67 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 17.57 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 13.68 |
Weighted-Average Grant Date Fair Value, Forfeited/cancelled | $ / shares | 14.38 |
Weighted-Average Grant Date Fair Value, Unvested Ending Balance | $ / shares | $ 15.87 |
Stock-Based Compensation - Su39
Stock-Based Compensation - Summary of Components of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 24,067 | $ 19,064 | $ 47,013 | $ 35,153 |
Cost of Revenue | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 2,663 | 1,830 | 5,131 | 3,342 |
Research and Development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 9,554 | 7,348 | 18,714 | 13,872 |
Sales and Marketing | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 7,934 | 6,416 | 15,674 | 11,646 |
General and Administrative Expense | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 3,916 | $ 3,470 | $ 7,494 | $ 6,293 |
Stock-Based Compensation - Su40
Stock-Based Compensation - Summary of Estimated Fair Value of Employee Stock Options (Details) | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
2015 Employee Stock Purchase Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Risk-free interest rate, Minimum | 0.90% | 0.50% | 0.90% | 0.50% |
Risk-free interest rate, Maximum | 1.40% | 0.90% | 1.40% | 0.90% |
Volatility, Minimum | 28.00% | 46.00% | 28.00% | 46.00% |
Volatility, Maximum | 43.00% | 60.00% | 43.00% | 60.00% |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Minimum | 2015 Employee Stock Purchase Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (in years) | 6 months | 6 months | 6 months | 6 months |
Maximum | 2015 Employee Stock Purchase Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (in years) | 2 years | 2 years | 0 years | 2 years |
Employee Stock Option | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Risk-free interest rate, Minimum | 1.80% | 1.30% | 1.80% | 1.30% |
Risk-free interest rate, Maximum | 2.00% | 1.50% | 2.40% | 1.50% |
Volatility | 43.00% | 43.00% | ||
Volatility, Minimum | 38.00% | 38.00% | ||
Volatility, Maximum | 39.00% | 40.00% | ||
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Employee Stock Option | Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (in years) | 5 years 6 months | 5 years 6 months | 5 years 6 months | 5 years 6 months |
Employee Stock Option | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (in years) | 6 years | 6 years | 6 years | 6 years |
Net Loss per Share - Summary of
Net Loss per Share - Summary of Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Numerator: | ||||
Net loss | $ (39,285) | $ (38,102) | $ (79,371) | $ (76,677) |
Denominator: | ||||
Weighted-average number of shares outstanding—basic and diluted | 132,981 | 126,776 | 132,237 | 125,864 |
Net loss per share—basic and diluted | $ (0.30) | $ (0.30) | $ (0.60) | $ (0.61) |
Class A Common Stock | ||||
Numerator: | ||||
Net loss | $ (27,909) | $ (15,305) | $ (50,163) | $ (28,983) |
Denominator: | ||||
Weighted-average number of shares outstanding—basic and diluted | 94,471 | 50,925 | 83,574 | 47,575 |
Net loss per share—basic and diluted | $ (0.30) | $ (0.30) | $ (0.60) | $ (0.61) |
Class B Common Stock | ||||
Numerator: | ||||
Net loss | $ (11,376) | $ (22,797) | $ (29,208) | $ (47,694) |
Denominator: | ||||
Weighted-average number of shares outstanding—basic and diluted | 38,510 | 75,851 | 48,663 | 78,289 |
Net loss per share—basic and diluted | $ (0.30) | $ (0.30) | $ (0.60) | $ (0.61) |
Net Loss per Share - Summary 42
Net Loss per Share - Summary of Weighted Average Outstanding Shares Excluded from Computation of Diluted Net Loss per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 28,226 | 27,332 | 27,713 | 26,988 |
Options to purchase common stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 12,345 | 13,782 | 12,267 | 14,338 |
Restricted Stock Units | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 13,624 | 10,218 | 13,088 | 9,305 |
Repurchasable shares from early-exercised options and unvested restricted stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 214 | 346 | 227 | 370 |
Contingently issuable common stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 54 | 80 | 56 | 84 |
Employee stock purchase plan | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,989 | 2,906 | 2,075 | 2,891 |
Segments - Additional Informati
Segments - Additional Information (Details) | 6 Months Ended |
Jul. 31, 2017Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |