Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Jan. 31, 2018 | Feb. 28, 2018 | Jul. 31, 2017 | |
Document And Entity Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
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 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 2 | ||
Class A Common Stock | |||
Document And Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 126,152,757 | ||
Class B Common Stock | |||
Document And Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 11,357,861 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jan. 31, 2018 | Jan. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 208,076 | $ 177,391 |
Accounts receivable, net of allowance of $1,856 and $3,346 | 162,133 | 120,113 |
Prepaid expenses and other current assets | 11,391 | 10,826 |
Deferred commissions | 17,589 | 13,771 |
Total current assets | 399,189 | 322,101 |
Property and equipment, net | 123,977 | 117,176 |
Intangible assets, net | 24 | 543 |
Goodwill | 16,293 | 16,293 |
Restricted cash | 350 | 26,781 |
Other long-term assets | 13,733 | 10,780 |
Total assets | 553,566 | 493,674 |
Current liabilities: | ||
Accounts payable | 17,036 | 6,658 |
Accrued compensation and benefits | 37,707 | 30,415 |
Accrued expenses and other current liabilities | 26,198 | 17,713 |
Capital lease obligations | 18,844 | 13,748 |
Deferred revenue | 291,902 | 228,656 |
Deferred rent | 2,280 | 751 |
Total current liabilities | 393,967 | 297,941 |
Debt, non-current | 40,000 | 40,000 |
Capital lease obligations, non-current | 26,980 | 21,697 |
Deferred revenue, non-current | 29,021 | 13,328 |
Deferred rent, non-current | 45,882 | 44,207 |
Other long-term liabilities | 2,748 | 1,769 |
Total liabilities | 538,598 | 418,942 |
Commitments and contingencies (Note 7) | ||
Stockholders’ equity: | ||
Preferred stock, par value $0.0001 per share; 100,000 shares authorized, no shares issued and outstanding as of January 31, 2018 and January 31, 2017, respectively | ||
Additional paid-in capital | 1,054,932 | 960,144 |
Treasury stock | (1,177) | (1,177) |
Accumulated other comprehensive income (loss) | 288 | (120) |
Accumulated deficit | (1,039,088) | (884,128) |
Total stockholders’ equity | 14,968 | 74,732 |
Total liabilities and stockholders’ equity | 553,566 | 493,674 |
Class A Common Stock | ||
Stockholders’ equity: | ||
Common stock, value | 7 | 7 |
Class B Common Stock | ||
Stockholders’ equity: | ||
Common stock, value | $ 6 | $ 6 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2018 | Jan. 31, 2017 |
Allowance for accounts receivable | $ 1,856 | $ 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 | 125,933,000 | 67,831,000 |
Common Stock, shares outstanding | 125,933,000 | 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 | 11,384,000 | 62,780,000 |
Common Stock, shares outstanding | 11,384,000 | 62,780,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Income Statement [Abstract] | |||
Revenue | $ 506,142 | $ 398,605 | $ 302,704 |
Cost of revenue | 135,248 | 112,130 | 87,100 |
Gross profit | 370,894 | 286,475 | 215,604 |
Operating expenses: | |||
Research and development | 136,791 | 115,928 | 102,500 |
Sales and marketing | 303,319 | 253,020 | 242,184 |
General and administrative | 84,805 | 68,182 | 71,923 |
Total operating expenses | 524,915 | 437,130 | 416,607 |
Loss from operations | (154,021) | (150,655) | (201,003) |
Interest expense, net | (1,013) | (896) | (1,157) |
Other income (expense), net | 789 | 678 | (98) |
Loss before provision for income taxes | (154,245) | (150,873) | (202,258) |
Provision for income taxes | 715 | 914 | 690 |
Net loss attributable to common stockholders | $ (154,960) | $ (151,787) | $ (202,948) |
Net loss per common share, basic and diluted | $ (1.16) | $ (1.19) | $ (1.67) |
Weighted-average shares used to compute net loss per share, basic and diluted | 133,932 | 127,469 | 121,240 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | ||
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net loss | $ (154,960) | $ (151,787) | $ (202,948) | |
Other comprehensive income (loss)*: | ||||
Changes in foreign currency translation adjustment | [1] | 408 | (37) | (26) |
Net change in unrealized gain (loss) on available-for-sale investments | [1] | 2 | (2) | |
Other comprehensive income (loss)*: | [1] | 408 | (36) | (28) |
Comprehensive loss** | [2] | $ (154,552) | $ (151,823) | $ (202,976) |
[1] | Tax effect was not material | |||
[2] | Due to rounding, numbers presented may not add up precisely to totals provided. |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY - USD ($) $ in Thousands | Total | Class A and Class B Common Stock | Class A and Class B Common StockNon-employee | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive (Loss) Income | Accumulated Deficit | |
Balance, Beginning at Jan. 31, 2015 | $ 268,129 | $ 12 | $ 798,743 | $ (1,177) | $ (56) | $ (529,393) | ||
Balance, Beginning, Shares at Jan. 31, 2015 | 119,655,000 | |||||||
Issuance of common stock upon stock option exercises | 7,164 | 7,164 | ||||||
Issuance of common stock upon stock option exercises (in shares) | 2,197,000 | |||||||
Issuance of common stock in connection with acquisitions | 6,108 | 6,108 | ||||||
Issuance of common stock in connection with acquisitions (in shares) | 344,000 | |||||||
Stock-based compensation related to stock awards | 59,504 | 59,504 | ||||||
Vesting of restricted stock units and restricted stock awards, net of shares withheld for employee payroll taxes | 1,016,000 | |||||||
Employee payroll taxes withheld related to vesting of restricted stock units and restricted stock awards | (10,436) | (10,436) | ||||||
Restricted stock awards granted to non-employees (in shares) | 11,000 | |||||||
Restricted stock awards forfeited due to termination (in shares) | (13,000) | |||||||
Vesting of shares subject to repurchase | 126 | 126 | ||||||
Repurchase of shares | (24,000) | |||||||
Common stock issued under employee stock purchase plan | 10,282 | 10,282 | ||||||
Common stock issued under employee stock purchase plan (in shares) | 935,000 | |||||||
Other comprehensive income (loss) | (28) | [1] | (28) | |||||
Net loss | (202,948) | (202,948) | ||||||
Balance, Ending at Jan. 31, 2016 | 137,901 | $ 12 | 871,491 | (1,177) | (84) | (732,341) | ||
Balance, Ending, Shares at Jan. 31, 2016 | 124,121,000 | |||||||
Issuance of common stock upon stock option exercises | $ 11,087 | $ 1 | 11,086 | |||||
Issuance of common stock upon stock option exercises (in shares) | 2,908,077 | 2,908,000 | ||||||
Issuance of common stock in connection with acquisitions | $ 1,011 | 1,011 | ||||||
Issuance of common stock in connection with acquisitions (in shares) | 71,000 | |||||||
Issuance of common stock in connection with prior year acquisitions (in shares) | 8,000 | |||||||
Stock-based compensation related to stock awards | 78,372 | 78,372 | ||||||
Vesting of restricted stock units and restricted stock awards, net of shares withheld for employee payroll taxes | 1,987,000 | |||||||
Employee payroll taxes withheld related to vesting of restricted stock units and restricted stock awards | (17,552) | (17,552) | ||||||
Common stock issued to non-employees for services rendered (in shares) | 8,000 | |||||||
Vesting of shares subject to repurchase | 10 | 10 | ||||||
Common stock issued under employee stock purchase plan | 15,726 | 15,726 | ||||||
Common stock issued under employee stock purchase plan (in shares) | 1,508,000 | |||||||
Other comprehensive income (loss) | (36) | [1] | (36) | |||||
Net loss | (151,787) | (151,787) | ||||||
Balance, Ending at Jan. 31, 2017 | 74,732 | $ 13 | 960,144 | (1,177) | (120) | (884,128) | ||
Balance, Ending, Shares at Jan. 31, 2017 | 130,611,000 | |||||||
Issuance of common stock upon stock option exercises | $ 14,558 | 14,558 | ||||||
Issuance of common stock upon stock option exercises (in shares) | 2,098,726 | 2,099,000 | ||||||
Stock-based compensation related to stock awards | $ 97,485 | 97,485 | ||||||
Vesting of restricted stock units and restricted stock awards, net of shares withheld for employee payroll taxes | 3,008,000 | |||||||
Employee payroll taxes withheld related to vesting of restricted stock units and restricted stock awards | (34,776) | (34,776) | ||||||
Common stock issued under employee stock purchase plan | 17,521 | 17,521 | ||||||
Common stock issued under employee stock purchase plan (in shares) | 1,599,000 | |||||||
Other comprehensive income (loss) | 408 | [1] | 408 | |||||
Net loss | (154,960) | (154,960) | ||||||
Balance, Ending at Jan. 31, 2018 | $ 14,968 | $ 13 | $ 1,054,932 | $ (1,177) | $ 288 | $ (1,039,088) | ||
Balance, Ending, Shares at Jan. 31, 2018 | 137,317,000 | |||||||
[1] | Tax effect was not material |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | $ (154,960) | $ (151,787) | $ (202,948) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 40,112 | 40,154 | 40,394 |
Stock-based compensation expense | 97,485 | 78,372 | 59,504 |
Amortization of deferred commissions | 21,476 | 18,260 | 15,816 |
Other | (101) | 114 | 1,089 |
Changes in operating assets and liabilities, net of effects of acquisitions: | |||
Accounts receivable, net | (42,020) | (20,571) | (45,368) |
Deferred commissions | (26,133) | (20,047) | (21,725) |
Prepaid expenses, restricted cash and other assets, current and noncurrent | 23,990 | 5,858 | (25,717) |
Accounts payable | 6,900 | (1,093) | (4,022) |
Accrued expenses and other liabilities | 12,930 | (9,035) | 17,943 |
Deferred rent | 3,204 | 2,986 | 32,357 |
Deferred revenue | 78,939 | 55,571 | 66,356 |
Net cash provided by (used in) operating activities | 61,822 | (1,218) | (66,321) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of marketable securities | (112,521) | ||
Sales of marketable securities | 240 | 78,427 | |
Maturities of marketable securities | 7,057 | 26,370 | |
Purchases of property and equipment | (11,822) | (14,956) | (72,939) |
Proceeds from sale of property and equipment | 107 | 87 | 73 |
Acquisitions and purchases of intangible assets, net of cash acquired | (271) | ||
Net cash used in investing activities | (11,715) | (7,572) | (80,861) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from initial public offering, net of offering costs | (2,172) | ||
Proceeds from borrowings, net of borrowing costs | 39,930 | (106) | 39,860 |
Principal payments on borrowings | (40,000) | (40,000) | |
Proceeds from exercise of stock options, net of repurchases of early exercised stock options | 14,538 | 11,086 | 7,015 |
Proceeds from issuances of common stock under employee stock purchase plan | 17,521 | 15,726 | 10,282 |
Employee payroll taxes paid related to net share settlement of restricted stock units | (34,776) | (17,552) | (10,436) |
Payments of capital lease obligations | (16,052) | (8,675) | (2,036) |
Acquisition related contingent consideration | (991) | ||
Net cash (used in) provided by financing activities | (19,830) | 479 | 2,513 |
Effect of exchange rate changes on cash and cash equivalents | 408 | (39) | (26) |
Net increase (decrease) in cash and cash equivalents | 30,685 | (8,350) | (144,695) |
Cash and cash equivalents, beginning of period | 177,391 | 185,741 | 330,436 |
Cash and cash equivalents, end of period | 208,076 | 177,391 | 185,741 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Cash paid for interest, net of amounts capitalized | 1,936 | 1,235 | 1,183 |
Cash paid for income taxes, net of tax refunds | 1,259 | 239 | 832 |
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES: | |||
Change in accrued equipment purchases | 4,983 | (14,781) | 10,766 |
Purchases of property and equipment under capital lease | 26,431 | 31,849 | 13,138 |
Change in unpaid tax related to capital lease | $ 753 | 1,521 | |
Issuance of common stock in connection with acquisitions and purchases of intangible assets | 1,011 | 6,108 | |
Vesting of early exercised stock options and restricted stock | $ 10 | 127 | |
Change in unpaid deferred offering costs | $ (2,172) |
Description of Business and Bas
Description of Business and Basis of Presentation | 12 Months Ended |
Jan. 31, 2018 | |
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 their content while allowing easy, secure access and sharing of this content from anywhere, on any device. Basis of Presentation and Principles of Consolidation The consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) and include the consolidated accounts of Box, Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies 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. In accordance with our property and equipment policy, we review the estimated useful lives of our fixed assets on an ongoing basis. A review of this policy indicated that the actual lives of certain data center assets not acquired under capital leases were longer than previously estimated useful lives used for depreciation purposes in our financial statements. As a result, effective September 1, 2016, we changed the estimated useful lives of certain data center assets not acquired under capital leases to better reflect the estimated periods during which these assets will remain in service. The estimated useful lives of these assets, which we previously depreciated for three years, have now been increased to four years. The effect of this change in estimate to net loss and earnings per share was not material in fiscal year 2017. Revenue Recognition We derive our revenue from three sources: (1) subscription revenue, which is comprised of subscription fees from customers utilizing our cloud content management platform and other subscription-based services, which all include routine customer support; (2) revenue from customers purchasing our premier support package; and (3) revenue from professional services such as implementing best practice use cases, project management and implementation consulting services. We recognize revenue when all of the following conditions are met: • there is persuasive evidence of an arrangement; • the amount of fees to be paid by the customer is fixed or determinable • the service has been provided to the customer; and • the collection of fees is reasonably assured. We typically invoice our customers at the beginning of the term, in multiyear, annual, quarterly or monthly installments. Our subscription and support contracts are typically non-cancellable and do not contain refund-type provisions. Revenue is presented net of sales and other taxes we collect on behalf of governmental authorities. In instances where we collect fees in advance of service delivery, revenue under the contract is deferred until we successfully deliver such services. Subscription revenue is recognized ratably over the period of the subscription beginning once all requirements for revenue recognition have been met, including provisioning the service so that it is available to our customers. Premier support is sold together with the subscription services, and the term of the premier support is generally the same as the related subscription services arrangement. Accordingly, we recognize premier support revenue in the same manner as the associated subscription. Professional services revenue is recognized as the services are rendered for time and material contracts, and using the proportional performance method over the period the services are performed for fixed price contracts. We assess collectability based on a number of factors, such as past collection history and creditworthiness of the customer. If management determines collectability is not reasonably assured, we defer revenue recognition until collectability becomes reasonably assured. Our arrangements can include multiple elements which may consist of some or all of subscription services, premier support and professional services. When multiple-element arrangements exist, we evaluate whether these individual deliverables should be accounted for as separate units of accounting or one single unit of accounting. In order to treat deliverables in a multiple-element arrangement as separate units of accounting, the delivered item or items must have standalone value upon delivery. A delivered item has standalone value to the customer when either (1) any vendor sells that item separately or (2) the customer could resell that item on a standalone basis. Our subscription services have standalone value as such services are often sold separately. Our premier support services do not have standalone value because we and other vendors do not sell premier support services separately. Our professional services have standalone value because there are other vendors which sell the same professional services separately. For new services, we assess standalone value consistently with the foregoing policy. Accordingly, we consider the separate units of accounting in our multiple deliverable arrangements to be the professional services, subscription services or a combined deliverable comprised of subscription services and premier support services. When multiple deliverables included in an arrangement are separable into different units of accounting, the arrangement consideration is allocated to the identified separate units of accounting based on their relative selling price. Multiple-element arrangement accounting guidance provides a hierarchy to use when determining the relative selling price for each unit of accounting. Vendor-specific objective evidence (VSOE) of selling price, based on the price at which the item is regularly sold by the vendor on a standalone basis, should be used if it exists. If VSOE of selling price is not available, third-party evidence (TPE) of selling price is used to establish the selling price if it exists. We have not established VSOE for our subscription services, premier support or professional services due to lack of pricing consistency, the introduction of new services and other factors. We have also concluded that third-party evidence of selling price is not a practical alternative due to differences in our service offerings compared to other parties and the availability of relevant third-party pricing information. Accordingly, we use our best estimate of selling price (BESP) to determine the relative selling price for our subscription, premier support and professional services offerings. For arrangements with multiple deliverables which can be separated into different units of accounting, we allocate the arrangement fee to the separate units of accounting based on our BESP. The amount of arrangement fee allocated is limited by contingent revenue, if any. We determined BESP by considering our overall pricing objectives and market conditions. Significant pricing practices taken into consideration for our subscription services, which may also include premier support, and professional services, include discounting practices, the size and volume of our transactions, the customer demographic, the geographic area where services are sold, price lists, our go-to-market strategy, historical standalone sales and contract prices. The determination of BESP is made through consultation with and approval by our management, taking into consideration the go-to-market strategy. As our go-to-market strategies evolve, we may modify our pricing practices in the future, which could result in changes in relative selling prices. Cost of Revenue Cost of revenue consists primarily of costs related to providing our subscription services to our paying customers, including employee compensation and related expenses for datacenter operations, customer support and professional services personnel, payments to outside technology service providers, depreciation of servers and equipment, security services and other tools, as well as amortization of acquired technology. We allocate overhead such as rent, information technology costs and employee benefit costs to all departments based on headcount. Deferred Commissions Deferred commissions consist of direct incremental costs paid to our sales force associated with non-cancellable terms of the related contracts. The deferred commission amounts are recoverable through future revenue streams under the non-cancellable customer contracts. Direct sales commissions are deferred when earned and amortized over the same period that revenue is recognized for the related non-cancellable subscription period. Amortization of deferred commissions is included in sales and marketing expense in the consolidated statements of operations. We deferred sales commissions costs of, $26.1 million, $20.0 million and 21.7 million during the years ended January 31, 2018, 2017 and 2016, respectively, and amortized $21.5 million, $18.3 million and 15.8 million of deferred commissions during the same periods respectively. Deferred Revenue Deferred revenue consists of billings and payments received in advance of revenue recognition generated by our subscription services, premier customer support and professional services described above. For these services, we typically invoice our customers at the beginning of the term, in multiyear, annual, quarterly or monthly installments. Accordingly, the deferred revenue balance does not represent the total contract value of annual or multiyear, non-cancellable subscription contracts. 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. 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 doubtful accounts 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 January 31, 2018, one customer accounted for more than 10% of total accounts receivable. As of January 31. 2017, two customers accounted for more than 10% of total accounts receivable. No single customer represented over 10% of revenue in any of the years ended January 31, 2018, 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 subscription 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 years ended January 31, 2018, 2017 and 2016, revenue attributed to the United States was 78%, 82% and 82%, respectively. No other country outside of the United States comprised 10% or greater of our revenue for the years ended January 31, 2018, 2017 and 2016. Substantially all of our net assets are located in the United States. As of January 31, 2018 and 2017, property and equipment located in the United States was approximately 95% and 99.7%, respectively. Foreign Currency Translation and Transactions The functional currency of our principal foreign subsidiaries is generally the U.S. dollar. Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars for those entities that do not have U.S. dollars as their functional currency are recorded as part of a separate component of the consolidated statements of comprehensive loss. Foreign currency transaction gains and losses are included in the consolidated statements of operations for the period. Monetary assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenue and expenses are translated at the average exchange rate during the period. Equity transactions are translated using historical exchange rates. Translation adjustments at the balance sheet dates were not material. Transaction gains and losses recognized were not material for all periods presented. Cash and Cash Equivalents We consider all highly liquid investments with an initial maturity of 90 days or less at the date of purchase to be cash equivalents. We maintain such funds in overnight cash deposits. Restricted Cash Restricted cash is comprised of certificates of deposits primarily related to our leases. These restricted cash balances have been excluded from our cash and cash equivalents balance and is classified as restricted cash on our consolidated balance sheets. The amount of restricted cash as of January 31, 2018 and 2017 was $0.4 million and $26.8 million, respectively, which was classified as non-current. Marketable Securities Our marketable securities consist of short-term, investment-grade corporate debt and asset-backed securities. We classify our marketable securities as available-for-sale at the time of purchase and reevaluate such classification as of each balance sheet date. All marketable securities are recorded at their estimated fair value. Unrealized gains and losses for available-for-sale securities are recorded in other comprehensive income (loss). We evaluate our investments to assess whether those with unrealized loss positions are other than temporarily impaired. We consider impairments to be other than temporary if they are related to deterioration in credit risk or if it is likely we will sell the securities before the recovery of their cost basis. Realized gains and losses and declines in value deemed to be other than temporary are determined based on the specific identification method and are reported in other income (expense), net in the consolidated statements of operations. As of January 31, 2018 and 2017, we had no marketable securities in our investment portfolio. We do not have any gross realized gains and losses on marketable securities for the years ended January 31, 2018 and 2017, and the gross realized gains and losses on marketable securities were not material for the year ended January 31, 2016. Fair Value of Financial Instruments Our financial assets and financial liabilities which may include cash equivalents, marketable securities, and restricted cash are measured and recorded at fair value on a recurring basis. We measure certain other assets including our non-marketable equity securities at fair value on a nonrecurring basis when they are deemed to be other-than-temporarily impaired. Our other current financial assets have fair values which approximate their carrying value due to their short-term maturities. Accounts Receivable and Related Allowance Accounts receivable are recorded at the invoiced amounts and do not bear interest. We maintain an allowance for estimated losses inherent in our accounts receivable portfolio. We assess the collectability of the accounts by taking into consideration the aging of our trade receivables, historical experience, and management judgment. We write off trade receivables against the allowance when management determines a balance is uncollectible and no longer actively pursues collection of the receivable. Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the respective assets, generally three to four years. Leasehold improvements are amortized over the shorter of their estimated useful lives or the remaining lease term. Depreciation commences once the asset is placed in service. Construction in progress is primarily related to the construction or development of property and equipment which have not yet been placed in service for their intended use. Business Combinations We allocate the fair value of purchase consideration to the tangible assets acquired, liabilities assumed and intangible assets acquired based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired users, acquired technology, and trade names from a market participant perspective, useful lives and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, which is one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to earnings. Long-Lived Assets, Including Goodwill and Other Acquired Intangible Assets We evaluate the recoverability of property and equipment for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If such review indicates that the carrying amount of property and equipment and intangible assets is not recoverable, the carrying amount of such assets is reduced to fair value. We have not recorded any significant impairment charge during the years presented. We review goodwill for impairment at least annually or more frequently if events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable. We have elected to first assess the qualitative factors to determine whether it is more likely than not that the fair value of our single reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the quantitative goodwill impairment test. If we determine that it is more likely than not that its fair value is less than its carrying amount, then the quantitative goodwill impairment test will be performed. The quantitative goodwill impairment test identifies goodwill impairment and measures the amount of goodwill impairment loss to be recognized by comparing the fair value of our single reporting unit with its carrying amount. If the carrying amount exceeds its fair value, no further analysis is required; otherwise, any excess of the goodwill carrying amount over the implied fair value is recognized as an impairment loss, and the carrying value of goodwill is written down to fair value. No impairment of goodwill has been identified during the years presented. Acquired finite-lived intangible assets are typically amortized over the estimated useful lives of the assets, which is generally two to seven years. We evaluate the recoverability of our intangible assets for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If such review indicates that the carrying amount of intangible assets is not recoverable, the carrying amount of such assets is reduced to fair value. We have not recorded any such impairment charge during the years presented. Legal Contingencies From time to time, we are a party of 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. Because the results of litigation and claims cannot be predicted with certainty, we base our loss accruals on the best information available at the time. As additional information becomes available, we reassess our potential liability and may revise our estimates. Such revisions could have a material impact on future quarterly or annual results of operations. Research and Development Costs Research and development costs include personnel costs, including stock-based compensation expense, associated with our engineering personnel and consultants responsible for the design, development and testing of the product, depreciation of equipment used in research and development and allocated overhead for facilities, information technology, and employee benefit costs. Research and development costs are expensed as incurred. Internal-Use Software Costs We capitalize costs to develop software for internal use incurred during the application development stage. Costs related to preliminary project activities and post implementation activities are expensed as incurred. Once an application has reached the development stage, management has authorized and committed to the funding of the software project, it is probable the project will be completed and the software will be used to perform the function intended, internal and external costs, if direct and incremental, are capitalized until the application is substantially complete and ready for its intended use. There were no material qualifying costs incurred during the application development stage in any of the periods presented. Advertising Costs Advertising costs are expensed as incurred and are included in sales and marketing expense. Advertising costs for the years ended January 31, 2018, 2017 and 2016 were $32.1 million, $28.1 million and $28.5 million, respectively. Stock-Based Compensation We determine the fair value of stock options and purchase rights issued to employees under our 2015 Equity Incentive Plan (2015 Plan) and 2015 Employee Stock Purchase Plan (2015 ESPP), on the date of grant using the Black-Scholes option pricing model, which is impacted by the fair value of our common stock, as well as changes in assumptions regarding a number of complex and subjective variables. These variables include, but are not limited to, the expected common stock price volatility over the term of the awards, the expected term of the awards, risk-free interest rates and the expected dividend yield. We use the market closing price of our Class A common stock as reported on the New York Stock Exchange for the fair value of restricted stock units and restricted stock granted after our IPO. We recognize compensation expense for stock options, restricted stock units and restricted stock, net of estimated forfeitures, on a straight-line basis over the period during which an employee is required to provide services in exchange for the award (generally the vesting period of the award). We estimate future forfeitures at the date of grant and revise the estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. We recognize compensation expense of purchase rights granted under our 2015 ESPP on a straight-line basis over the offering period. Income Taxes We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the temporary differences between the financial statement and tax basis of assets and liabilities using the enacted tax rates in effect for the years in which the differences are expected to reverse. The effect on deferred taxes of a change in income tax rates is recognized in the consolidated statements of operations in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts we believe are more likely than not to be realized. We recognize tax benefits from uncertain tax positions only if we believe that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. Recently Adopted Accounting Pronouncements in Fiscal Year 2018 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 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 our prior periods presented. In April 2016, the FASB issued ASU 2016-09, Compensation- Stock Compensation: Improvements to Employee Share-Based Payment Accounting 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 consolidated statements of income as a component of the provision for income taxes rather than on the consolidated balance sheet as a paid-in capital. Included in our net operating loss and research and development tax credit carryforwards as of January 31, 2018 are approximately $25.1 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 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 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 consolidated financial statements. Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09 and its related amendments regarding ASC Topic 606, Revenue from Contracts with Customers The adoption of this ASU will primarily impact our capitalization and amortization of incremental costs of obtaining a contract, the timing of our revenue recognition for certain sales contracts, and disclosures. The quantitative ranges provided below are estimates of the expected effects of our adoption of ASC Topic 606. These ranges represent management’s best estimates of the effects of adopting ASC Topic 606 at the time of the preparation of this Annual Report on Form 10-K. The actual impact of ASC Topic 606 is subject to change from these estimates and such change may be significant, pending remaining final steps in the completion of our assessment. Costs to Obtain a Contract Under ASC Topic 606, we will capitalize costs based on the definition of incremental costs of obtaining a contract and commence amortization upon the transfer of services to the customer. Such costs will be amortized over a longer period than we had previously amortized in order to align to an estimated expected benefit period under ASC Topic 606 of five years. We expect the new commissions policy will have a material impact on our opening balance sheet as of February 1, 2018, resulting in a decrease of the accumulated deficit by approximately $28 million to $30 million and a corresponding increase to deferred commissions. Revenue Recognition There will be a change in the timing of revenue recognition for certain sales contracts due primarily to the removal of the current limitation on contingent revenue. The new revenue recognition policy will have a material impact on our opening balance sheet as of February 1, 2018 resulting in a decrease to accumulated deficit of $9 million to $11 million with a corresponding decrease to deferred revenue of approximately $9 million to $11 million and a corresponding increase to contract asset by less than $1 million. In November 2016, the FASB issued ASU 2016-18 , Statement of Cash Flows: Restricted Cash The new standard should be applied using a retrospective transition method to each period presented. consolidated statement of cash flows and related disclosures In February 2016, the FASB issued ASU 2016-02, Leases In June 2016, the FASB issued ASU 2016-13, Financial Instruments- Credit Losses |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 3. Fair Value Measurements 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 our 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 had restricted cash in the form of certificates of deposits of $0.4 million and $26.8 million as of January 31, 2018 and January 31, 2017, respectively, classified within Level 2. |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Jan. 31, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | Note 4. Balance Sheet Components Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): January 31, 2018 2017 Prepaid expenses $ 8,494 $ 9,256 Other current assets 2,897 1,570 Total prepaid expenses and other current assets $ 11,391 $ 10,826 Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): January 31, 2018 2017 Servers and related equipment $ 170,422 $ 143,219 Leasehold improvements 72,599 64,379 Computer hardware and software 14,558 11,373 Furniture and fixtures 14,254 12,824 Construction in progress 7,348 5,882 Total property and equipment 279,181 237,677 Less: accumulated depreciation (155,204 ) (120,501 ) Total property and equipment, net $ 123,977 $ 117,176 As of January 31, 2018, the gross carrying amount of property and equipment includes $74.7 million of servers and related equipment 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 $29.1 million. As of January 31, 2017, the gross carrying amount of property and equipment includes $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 $39.5 million, $36.8 million and $34.8 million for the years ended January 31, 2018, 2017 and 2016, respectively. Included in these amounts were depreciation expense for servers and related equipment acquired under capital leases in the amount of $18.8 million, $7.9 million and $2.3 million, for the same periods respectively. Construction in progress may include servers, networking equipment and storage infrastructure being provisioned in our datacenter facilities. In addition, the amounts of interest capitalized to property and equipment were $29,000, $27,000 and $400,000 for the years ended January 31, 2018, 2017 and 2016, respectively. Other Long-term Assets Other long-term assets consisted of the following (in thousands): January 31, 2018 2017 Deferred commissions, noncurrent $ 8,330 $ 7,491 Deposits, noncurrent 2,934 1,564 Other assets, noncurrent 2,469 1,725 Other long-term assets $ 13,733 $ 10,780 |
Acquisitions
Acquisitions | 12 Months Ended |
Jan. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Note 5. Acquisition Fiscal 2018 Acquisitions During the year ended January 31, 2018, we made no acquisitions. Fiscal 2017 Acquisitions 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 solutions 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 acquisition have been included in our consolidated statements of operations since the acquisition dates and were not material. Pro forma results of operations for this acquisition have not been presented because it was also not material to the consolidated results of operations. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Jan. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 6. Goodwill and Intangible Assets There were no goodwill activities during the year ended January 31, 2018. Goodwill activity for the year ended January 31, 2017 is reflected in the following table (in thousands): Balance as of January 31, 2016 $ 14,301 Goodwill acquired—Wagon 1,992 Balance as of January 31, 2017 16,293 Intangible assets consisted of the following (in thousands): Weighted Average Useful Life (1) Gross Value Accumulated Amortization Net Carrying Value January 31, 2018 Developed technology 2.5 years $ 14,273 $ (14,273 ) $ — Trade name and other 6.9 years 1,201 (1,177 ) 24 Intangibles, net $ 15,474 $ (15,450 ) $ 24 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 $0.5 million, $3.4 million and $5.6 million for the years ended January 31, 2018, 2017 and 2016, respectively. Amortization of acquired technology is included in cost of revenue and amortization for trade names is included in general and administrative expenses in the consolidated statements of operations. As of January 31, 2018, expected amortization expense for intangible assets for each of the next five years and thereafter was not material. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 7. Commitments and Contingencies Letters of Credit As of January 31, 2018, we had letters of credit in the aggregate amount of $26.4 million, in connection with our operating leases, which were primarily issued under the available sublimit of $30.0 million in conjunction with a secured credit agreement entered on November 27, 2017 (November 2017 Facility). Refer to Note 8 for additional details related to the November 2017 Facility. As of January 31, 2017, we had letters of credit in the aggregate amount of $26.8 million in connection with our operating leases, which were primarily collateralized by certificates of deposits. Leases We have entered into various non-cancellable operating lease agreements for certain of our offices and datacenters with lease periods expiring between fiscal year 2019 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 and related equipment for our operations. These agreements are typically for three to four years. The leases are secured by the underlying leased servers and related equipment. As of January 31, 2018, 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 2019 $ 19,748 $ 27,012 2020 14,046 30,950 2021 10,429 32,775 2022 3,219 30,434 2023 — 24,204 Thereafter — 138,545 Total minimum lease payments $ 47,442 $ 283,920 Less: amount representing interest (1,618 ) Present value of minimum lease payments $ 45,824 In fiscal years 2018 and 2017, we subleased certain floors of our Redwood City headquarters and one floor of our office in San Francisco 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 January 31, 2018 and January 31, 2017. In addition, sufficient information did not exist as of January 31, 2018 to reasonably estimate the fair value of asset retirement obligations for the Tokyo office lease. We recognize rent expense under our operating leases on a straight-line basis. Rent expense totaled $28.7 million, $18.5 million and $20.9 million, net of sublease income of $7.4 million, $6.8 million and $1.3 million for the years ended January 31, 2018, 2017 and 2016, respectively. Purchase Obligations As of January 31, 2018, 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: 2019 30,010 2020 27,410 2021 3,153 2022 256 $ 60,829 Legal Matters On June 5, 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 infringe 12 patents of Open Text. Open Text sought preliminary and permanent injunctions against infringement, treble damages, and attorneys’ fees. This case was subsequently transferred to the U.S. District Court for the Northern District of California. On September 13, 2013, Open Text filed a motion for preliminary injunction seeking to enjoin us from providing our Box Edit feature to companies with more than 100 users. On April 9, 2014, the California court denied Open Text’s motion for preliminary injunction, finding that (1) Open Text failed to meet its burden to show irreparable harm, (2) Open Text failed to show a reasonable likelihood of success on the merits of its case, and (3) we have raised a substantial question as to the validity of the patents asserted during the preliminary injunction proceedings. On September 19, 2014, in a related action, Open Text S.A. v. Alfresco Software Ltd. Trial commenced on February 2, 2015. On February 13, 2015, the jury returned a verdict, finding the asserted claims of the File Synchronization patents infringed and were not invalid. The jury awarded damages in favor of Open Text in a lump sum and fully paid-up royalty in the amount of $4.9 million. The Court found no willful infringement of the asserted claims and foreclosed Open Text’s request for a permanent injunction since the jury returned a lump-sum award. On February 19, 2015, Open Text filed a notice of appeal to the United States Court of Appeals for the Federal Circuit from the Court’s Order granting our motion for judgment of invalidity of the Groupware Patents. On March 9, 2015, Open Text filed a first amended notice of appeal from additional orders by the Court. On August 19, 2015, following a July 1, 2015 hearing in which portions of the jury’s verdict were challenged, the Court entered judgment in favor of Open Text with respect to infringement of the asserted claims of the File Synchronization patents in the amount of approximately $4.9 million plus pre-judgment interest, and with respect to validity of the asserted claims of the File Synchronization patents. The Court also entered judgment in our favor with respect to invalidity of the asserted claims of the Groupware Patents, and no willful infringement with respect to the asserted claims of the File Synchronization patents. We filed a notice of appeal on August 28, 2015, challenging a number of findings in the final judgment entered on August 19, 2015, including the jury’s finding that the Synchronization Patents were infringed and not invalid. While we continued to defend the lawsuit vigorously and continued to believe we have valid defense to Open Text’s claims, we considered the issuance of the verdict a recognized subsequent event that provided additional evidence about conditions existed as of January 31, 2015. Accordingly, we accrued $4.9 million of settlement payment as of January 31, 2015, 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 settlement amount attributable to prior periods. The portion of the settlement amount attributable to future periods is recorded as an asset as of January 31, 2015. This asset was being amortized over an estimated useful life of 14 months, and the amortization expense was $855,000 for the year ended January 31, 2016. In addition, as a result of the July 1, 2015 hearing, we deemed the claim for interest on the legal verdict amount to be probable and estimable for the first time. As such, we accrued additional expenses in the aggregate amount of $659,000 during the year ended January 31, 2016, in relation to the interest on the legal verdict amount. On March 31, 2016, Open Text and the Company entered into a Confidential Settlement and Release Agreement (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, the Company paid an amount equal to $3. 75 million in total to Open Text, and the Company's 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. The settlement has no impact on the Groupware Patent and Dialog Patent claims that were found to be invalid by the Court during the litigation against the Company and against Alfresco Software. We recorded the settlement payment of $3.75 million, reversed previous settlement 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 consolidated statement of operations for the year ended January 31, 2017. 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 January 31, 2018. 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 | 12 Months Ended |
Jan. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Note 8. Debt Line of Credit In December 2015, we entered into a revolving credit facility (December 2015 Facility), which provided for a revolving loan facility in the amount of up to $40.0 million originally maturing in December 2017. In February 2017, we amended the December 2015 Facility to extend the maturity date to December 2018. The December 2015 Facility was denominated in U.S. dollars and, depending on certain conditions, each borrowing was 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 was required for the December 2015 Facility, we were eligible for the lowest interest rate if we maintained at least $40.0 million in deposits with the lender. In addition, there was an annual fee of 0.2% on the total commitment amount. At closing, we drew $40.0 million at 1.82% (six month LIBOR plus 1.25%) which we used to repay the outstanding principal balance under our secured revolving credit facility entered in August 2013. Borrowings under the December 2015 Facility were collateralized by substantially all of our assets in the United States. It also contained 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 January 31, 2017, we were in compliance with all financial covenants. On November 27, 2017, we paid in full all amounts outstanding under the December 2015 Facility, including the outstanding principal balance of $40.0 million, and terminated the December 2015 Facility and all related loan and collateral documents, in conjunction with entering into the November 2017 Facility with a different lender with a maturity date of November 27, 2020. The November 2017 Facility provides for an $85.0 million revolving credit facility, with a sublimit of $30.0 million available for the issuance of letters of credit. The proceeds of the revolving loans may be used for general corporate purposes. The revolving loans accrue interest at a prime rate plus a margin of 0.25% or, at our option, a LIBOR rate (based on one, three or six-month interest periods) plus a margin of 1.00%. Interest on the revolving loans is payable quarterly in arrears with respect to loans based on the prime rate and at the end of an interest period in the case of loans based on the LIBOR rate (or at each three-month interval if the interest period is longer than three months). Borrowings under the November 2017 Facility are collateralized by substantially all of our assets. The November 2017 Facility requires us to comply with a maximum leverage ratio and a minimum liquidity requirement. Additionally, the November 2017 Facility contains customary affirmative and negative covenants, including covenants limiting our, and our subsidiaries’, ability to, among other things, grant liens, incur debt, pay dividends or distributions on the capital stock, effect certain mergers, make investments, dispose of assets and enter into transactions with affiliates, in each case subject to customary exceptions for a credit facility of the size and type of the November 2017 Facility. On November 29, 2017, the restrictions on our certificates of deposits that previously collateralized existing letters of credit were released as the letters of credit were included under the November 2017 Facility letter of credit sublimit. As such, we released $26.1 million from restricted cash to cash and cash equivalents. Refer to Note 8 for additional details on the letters of credit and Note 3 for additional details on restricted cash in the form of certificates of deposits. As of January 31, 2018, we were in compliance with all financial covenants. In connection with the above credit facilities, we incurred interest expense, net of capitalized interest costs, of $1.0 million, $0.9 million and $1.9 million during the years ended January 31, 2018, 2017 and 2016, respectively. During the same periods, we capitalized $29,000, $27,000 and $400,000 of interest costs. Interest expense in connection with the above credit facilities may include interest charges for our line of credit |
Common Stock and Stockholders'
Common Stock and Stockholders' Equity | 12 Months Ended |
Jan. 31, 2018 | |
Class Of Stock Disclosures [Abstract] | |
Common Stock and Stockholders' Equity | Note 9. Common Stock and Stockholders’ Equity Amended and Restated Certificate of Incorporation Our amended and restated certificate of incorporation became effective upon completion of our IPO in January 2015. Our amended and restated certificate of incorporation: • increased the number of authorized shares of capital stock to 1,300,000,000 shares, $0.0001 par value per share, of which 1,000,000,000 shares are designated as Class A common stock, 200,000,000 shares as designated as Class B common stock; and 100,000,000 shares are designated as preferred stock; • established that, on any matter that is submitted to a vote of the stockholders, the holder of each share of Class A common stock is entitled to 1 vote per share, while the holder of each share of Class B common stock is entitled to 10 votes per share; • established that, except with respect to voting, as discussed above, the rights of the holders of Class A and Class B common stock are identical; and • established that shares of our Class B common stock are voluntarily convertible into shares of our Class A common stock at the option of the holder, generally automatically convertible into shares of our Class A common stock upon transfer, and all outstanding shares of our Class B common stock will automatically convert into shares of our Class A common stock once the aggregate number of shares of our Class B common stock represents less than 5% of the then outstanding shares of Class A and Class B common stock. Our Class A and Class B common stock are referred to as common stock throughout the notes to these financial statements, unless otherwise noted. As of January 31, 2018 and 2017, we held an aggregate of 3,052,953 shares of common stock as treasury stock. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jan. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 10. 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 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. Twenty-five percent of each grant of stock options and restricted stock units generally vest one year from the vesting commencement date and continue to vest (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 may 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 January 31, 2018, 2,202,188 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, 2016 15,634,518 $ 6.92 7.12 $ 82,541 Options granted 1,018,136 13.88 Option exercised (2,908,077 ) 3.81 Options forfeited/cancelled (1,425,777 ) 13.68 Balance as of January 31, 2017 12,318,800 $ 7.44 6.42 $ 119,606 Options granted 1,533,056 17.46 Option exercised (2,098,726 ) 6.94 Options forfeited/cancelled (910,010 ) 15.03 Balance as of January 31, 2018 10,843,120 $ 8.32 5.74 $ 150,922 Vested and expected to vest as of January 31, 2018 10,750,742 $ 8.26 5.71 $ 150,334 Exercisable as of January 31, 2018 8,703,037 $ 6.46 5.07 $ 137,306 The aggregate intrinsic value of options vested and expected to vest and exercisable as of January 31, 2018 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 years ended January 31, 2018, 2017 and 2016 was $25.6 million, $26.9 million and $24.8 million, respectively. The aggregate estimated fair value of stock options granted to employees that vested during the years ended January 31, 2018, 2017 and 2016 was $9.0 million, $15.2 million and $16.7 million, respectively. The weighted-average grant date fair value of options granted to employees during the years ended January 31, 2018, 2017 and 2016 was $7.04, $5.77 and $6.72 per share, respectively. As of January 31, 2018, there was $11.5 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 2.48 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, 25% of 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, 2016 8,204,968 $ 15.54 Granted 9,078,555 14.15 Vested, net of shares withheld for employee payroll taxes (1,994,363 ) 15.33 Forfeited/cancelled (3,466,844 ) 14.97 Unvested balance - January 31, 2017 11,822,316 $ 14.67 Granted 7,807,240 18.11 Vested, net of shares withheld for employee payroll taxes (3,007,876 ) 14.68 Forfeited/cancelled (2,002,428 ) 15.24 Unvested balance - January 31, 2018 14,619,252 $ 16.42 As of January 31, 2018, there was $186.2 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 2.84 years. 2015 ESPP and Other As of January 31, 2018, there was $6.3 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): Year Ended January 31, 2018 2017 2016 Cost of revenue $ 10,742 $ 7,882 $ 4,664 Research and development 37,733 30,796 24,696 Sales and marketing 31,742 26,142 19,530 General and administrative 17,268 13,552 10,614 Total stock-based compensation $ 97,485 $ 78,372 $ 59,504 Determination of Fair Value We estimated the fair value of employee stock options and 2015 ESPP purchase rights using a Black-Scholes option pricing model with the following assumptions: Year Ended January 31, 2018 2017 2016 Employee Stock Options Expected term (in years) 5.5 – 6.1 5.5 – 6.0 5.5 – 6.1 Risk-free interest rate 1.8 % – 2.1% 1.3 % – 2.0% 1.5 % – 1.9% Volatility 38 % – 40% 40 % – 43% 42 % – 44% Dividend yield 0% 0% 0% Employee Stock Purchase Plan Expected term (in years) 0.5 – 2.0 0.5 – 2.0 0.5 – 2.0 Risk-free interest rate 0.9 % – 1.4% 0.5 % – 0.9% 0.2 % – 0.8% Volatility 28 % – 43% 39 % – 60% 33 % – 41% Dividend yield 0% 0% 0% The assumptions used in the Black-Scholes option pricing model were determined as follows: Fair Value of Common Stock. 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 to estimate the expected volatility of the stock option grants, we determine the expected volatility of the stock option grants based on 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. We estimated the expected volatility of 2015 ESPP purchase rights based on the historical volatility of our common stock. Risk-free Interest Rate . The risk-free rate that we use is based on the implied yield available on U.S. Treasury zero-coupon issues with remaining terms similar to the expected term on the options and 2015 ESPP purchase rights. 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 | 12 Months Ended |
Jan. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Note 11. 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, shares issuable pursuant to our employee stock purchase plan, shares subject to repurchase 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): Year Ended January 31, 2018 2017 2016 Class A Class B Class A Class B Class A Class B Numerator: Net loss $ (115,847 ) $ (39,113 ) $ (64,771 ) $ (87,016 ) $ (49,448 ) $ (153,500 ) Denominator: Weighted-average number of shares outstanding—basic and diluted 100,127 33,805 54,394 73,075 29,540 91,700 Net loss per share—basic and diluted $ (1.16 ) $ (1.16 ) $ (1.19 ) $ (1.19 ) $ (1.67 ) $ (1.67 ) 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): Year Ended January 31, 2018 2017 2016 Options to purchase common stock 11,971 13,550 16,654 Restricted stock units 13,369 10,121 7,233 Employee stock purchase plan 1,624 2,090 3,944 Repurchasable shares from early-exercised options and unvested restricted stock 98 324 551 Contingently issuable common stock 3 77 115 27,065 26,162 28,497 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 12. Income Taxes The components of loss before provision for income taxes were as follows (in thousands): Year Ended January 31, 2018 2017 2016 United States $ (107,701 ) $ (115,640 ) $ (155,794 ) Foreign (46,544 ) (35,233 ) (46,464 ) Total $ (154,245 ) $ (150,873 ) $ (202,258 ) The components of the provision for income taxes were as follows (in thousands): Year Ended January 31, 2018 2017 2016 Current: Federal $ (430 ) $ 26 $ 29 State 75 122 146 Foreign 1,426 770 298 Total $ 1,071 $ 918 $ 473 Deferred: Federal $ (134 ) $ 96 $ 61 State 18 — — Foreign (240 ) (100 ) 156 Total $ (356 ) $ (4 ) $ 217 Provision for income taxes $ 715 $ 914 $ 690 On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (“Tax Act”). The Tax Act reduces the U.S. federal corporate tax rate from 34% to 21%, imposes a one-time repatriation tax, and numerous other provisions transitioning to a territorial system. As a result of the Tax Act, the corporate tax rate changed from 34% to 21% effective January 1, 2018. For the fiscal year ended January 31, 2018, we are subject to a blended rate of 32.92%, determined based on the number of days before and after the effective date of the new corporate tax rate. The items accounting for the difference between income taxes computed at the federal statutory income tax rate of 32.92% and the provision for income taxes consisted of the following (in thousands): Year Ended January 31, 2018 2017 2016 Tax benefit at federal statutory rate $ (50,772 ) $ (51,297 ) $ (68,767 ) State taxes, net of federal benefit (7,803 ) (7,778 ) (8,799 ) Foreign rate difference 7,988 7,363 6,744 Nondeductible expenses 689 594 429 Research and development credit (3,967 ) (3,607 ) (3,533 ) Stock-based compensation (4,148 ) 6,451 6,214 Change in reserve for unrecognized tax benefits 3,537 3,634 3,562 Other (383 ) 97 61 Change in valuation allowance, including the effect of tax rate change (34,119 ) 45,457 64,779 Effect of tax rate change on deferred tax assets 89,693 — — Total provision for income taxes $ 715 $ 914 $ 690 The significant components of our deferred tax assets and liabilities were as follows (in thousands): January 31, 2018 2017 Deferred tax assets: Net operating loss carryforward $ 210,143 $ 227,023 Accruals and reserves 17,433 23,960 Stock-based compensation 11,673 13,304 Depreciation and amortization 5,809 7,513 Tax credit carryover 4,325 4,002 Acquired intangible assets 597 811 Total deferred tax assets 249,980 276,613 Valuation allowance (249,359 ) (276,392 ) Total deferred tax assets, net of valuation allowance 621 221 Deferred tax liabilities: Goodwill with indefinite life amortization (191 ) (157 ) Total deferred tax liabilities (191 ) (157 ) Net deferred tax assets $ 430 $ 64 In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. As a result, we have established a full valuation allowance against our U.S. and United Kingdom deferred tax assets to the extent they are not offset by liabilities from uncertain tax positions based on our history of losses. The valuation allowance decreased by $27.0 million and increased by $44.2 million, respectively, during the years ended January 31, 2018 and 2017. Under the Tax Act, NOLs generated for tax years ending after December 31, 2017, will have an indefinite carryforward period. In light of the Tax Act, we have assessed and believe that, it is more likely than not, that the NOLs generated for the fiscal year ended January 31, 2018, in the U.S. will be realized to the extent of future reversal of taxable temporary difference associated with indefinite-lived intangible assets. Based on provisions of the Tax Act, we remeasured the deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21%. Accordingly, we recorded a provisional tax expense of $89.7 million associated with the remeasurement of our deferred tax balances. However, as we recognize a valuation allowance on deferred tax assets if it is more likely than not that the assets will not be realized in future years, there is no impact to the effective tax rate, as any change to deferred taxes are offset by the valuation allowance. The one-time repatriation tax is based on our post-1986 earnings and profits (E&P) that were previously deferred from U.S. income taxes. Due to the ability to offset positive accumulated foreign earnings with existing accumulated foreign deficits, our provisional estimate of the one-time repatriation tax did not result in additional income tax expense. The changes included in the Tax Act are broad and complex. The final transition impacts of the Tax Act may differ from the above estimate, possibly materially, due to, among other things, changes in interpretations of the Tax Act any legislative action to address questions that arise because of the Tax Act, any changes in accounting standards for income taxes or related interpretations in response to the Tax Act, or any updates or changes to estimates we have utilized to calculate the transition impacts, including impacts from changes to current year earnings estimates and foreign exchange rates of foreign subsidiaries. The Securities Exchange Commission has issued SAB 118 that would allow for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts. We currently anticipate finalizing and recording any resulting adjustments by the year ending January 31, 2019. As of January 31, 2018, we had federal, state and foreign net operating loss carryforwards of $624.7 million, $613.7 million and $214.7 million, respectively, available to offset future taxable income. The federal net operating loss carryforwards generated prior to fiscal year 2018 will expire at various dates beginning in 2025, if not utilized. The state net operating loss carryforwards will expire at various dates beginning in 2028, if not utilized. The foreign net operating loss carryforwards do not expire. In addition, as of January 31, 2018, we had federal and state research and development tax credit carryforwards of $18.2 million and $20.8 million, respectively. The federal research and development tax credit carryforwards will expire beginning in 2025 if not utilized. The state research and development tax credit carryforwards do not expire. Utilization of the federal and state NOLs 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 believe that we have provided adequate reserves for our income tax uncertainties in all open tax years. A reconciliation of the gross unrecognized tax benefits is as follows (in thousands): Year Ended January 31, 2018 2017 2016 Unrecognized tax benefits—beginning of period $ 28,644 $ 20,656 $ 13,607 Reductions for tax positions related to prior year (971 ) — — Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations (337 ) — — Additions for tax positions related to prior year — 447 238 Additions for tax positions related to current year 8,858 7,541 6,811 Unrecognized tax benefits—end of period $ 36,194 $ 28,644 $ 20,656 The gross unrecognized tax benefits, if recognized, would not materially affect the effective tax rate as of January 31, 2018, 2017 and 2016. We do not expect our gross unrecognized tax benefits to change significantly over the next 12 months. Our policy is to classify interest and penalties associated with uncertain tax positions, if any, as a component of our income tax provision. Interest and penalties were not significant during the years ended January 31, 2018, 2017 and 2016. 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 began to 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. Certain tax years remain open to examination. |
Segments
Segments | 12 Months Ended |
Jan. 31, 2018 | |
Segment Reporting [Abstract] | |
Segments | Note 13. 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. |
401(k) Plan
401(k) Plan | 12 Months Ended |
Jan. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
401(k) Plan | Note 14. 401(k) Plan We have a 401(k) Savings Plan (the 401(k) Plan) which qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Under the 401(k) Plan, participating employees may elect to contribute up to 100% of their eligible compensation, subject to certain limitations. We have not made any matching contributions to date. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2018 | |
Accounting Policies [Abstract] | |
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. In accordance with our property and equipment policy, we review the estimated useful lives of our fixed assets on an ongoing basis. A review of this policy indicated that the actual lives of certain data center assets not acquired under capital leases were longer than previously estimated useful lives used for depreciation purposes in our financial statements. As a result, effective September 1, 2016, we changed the estimated useful lives of certain data center assets not acquired under capital leases to better reflect the estimated periods during which these assets will remain in service. The estimated useful lives of these assets, which we previously depreciated for three years, have now been increased to four years. The effect of this change in estimate to net loss and earnings per share was not material in fiscal year 2017. |
Revenue Recognition | Revenue Recognition We derive our revenue from three sources: (1) subscription revenue, which is comprised of subscription fees from customers utilizing our cloud content management platform and other subscription-based services, which all include routine customer support; (2) revenue from customers purchasing our premier support package; and (3) revenue from professional services such as implementing best practice use cases, project management and implementation consulting services. We recognize revenue when all of the following conditions are met: • there is persuasive evidence of an arrangement; • the amount of fees to be paid by the customer is fixed or determinable • the service has been provided to the customer; and • the collection of fees is reasonably assured. We typically invoice our customers at the beginning of the term, in multiyear, annual, quarterly or monthly installments. Our subscription and support contracts are typically non-cancellable and do not contain refund-type provisions. Revenue is presented net of sales and other taxes we collect on behalf of governmental authorities. In instances where we collect fees in advance of service delivery, revenue under the contract is deferred until we successfully deliver such services. Subscription revenue is recognized ratably over the period of the subscription beginning once all requirements for revenue recognition have been met, including provisioning the service so that it is available to our customers. Premier support is sold together with the subscription services, and the term of the premier support is generally the same as the related subscription services arrangement. Accordingly, we recognize premier support revenue in the same manner as the associated subscription. Professional services revenue is recognized as the services are rendered for time and material contracts, and using the proportional performance method over the period the services are performed for fixed price contracts. We assess collectability based on a number of factors, such as past collection history and creditworthiness of the customer. If management determines collectability is not reasonably assured, we defer revenue recognition until collectability becomes reasonably assured. Our arrangements can include multiple elements which may consist of some or all of subscription services, premier support and professional services. When multiple-element arrangements exist, we evaluate whether these individual deliverables should be accounted for as separate units of accounting or one single unit of accounting. In order to treat deliverables in a multiple-element arrangement as separate units of accounting, the delivered item or items must have standalone value upon delivery. A delivered item has standalone value to the customer when either (1) any vendor sells that item separately or (2) the customer could resell that item on a standalone basis. Our subscription services have standalone value as such services are often sold separately. Our premier support services do not have standalone value because we and other vendors do not sell premier support services separately. Our professional services have standalone value because there are other vendors which sell the same professional services separately. For new services, we assess standalone value consistently with the foregoing policy. Accordingly, we consider the separate units of accounting in our multiple deliverable arrangements to be the professional services, subscription services or a combined deliverable comprised of subscription services and premier support services. When multiple deliverables included in an arrangement are separable into different units of accounting, the arrangement consideration is allocated to the identified separate units of accounting based on their relative selling price. Multiple-element arrangement accounting guidance provides a hierarchy to use when determining the relative selling price for each unit of accounting. Vendor-specific objective evidence (VSOE) of selling price, based on the price at which the item is regularly sold by the vendor on a standalone basis, should be used if it exists. If VSOE of selling price is not available, third-party evidence (TPE) of selling price is used to establish the selling price if it exists. We have not established VSOE for our subscription services, premier support or professional services due to lack of pricing consistency, the introduction of new services and other factors. We have also concluded that third-party evidence of selling price is not a practical alternative due to differences in our service offerings compared to other parties and the availability of relevant third-party pricing information. Accordingly, we use our best estimate of selling price (BESP) to determine the relative selling price for our subscription, premier support and professional services offerings. For arrangements with multiple deliverables which can be separated into different units of accounting, we allocate the arrangement fee to the separate units of accounting based on our BESP. The amount of arrangement fee allocated is limited by contingent revenue, if any. We determined BESP by considering our overall pricing objectives and market conditions. Significant pricing practices taken into consideration for our subscription services, which may also include premier support, and professional services, include discounting practices, the size and volume of our transactions, the customer demographic, the geographic area where services are sold, price lists, our go-to-market strategy, historical standalone sales and contract prices. The determination of BESP is made through consultation with and approval by our management, taking into consideration the go-to-market strategy. As our go-to-market strategies evolve, we may modify our pricing practices in the future, which could result in changes in relative selling prices. |
Cost of Revenue | Cost of Revenue Cost of revenue consists primarily of costs related to providing our subscription services to our paying customers, including employee compensation and related expenses for datacenter operations, customer support and professional services personnel, payments to outside technology service providers, depreciation of servers and equipment, security services and other tools, as well as amortization of acquired technology. We allocate overhead such as rent, information technology costs and employee benefit costs to all departments based on headcount. |
Deferred Commissions | Deferred Commissions Deferred commissions consist of direct incremental costs paid to our sales force associated with non-cancellable terms of the related contracts. The deferred commission amounts are recoverable through future revenue streams under the non-cancellable customer contracts. Direct sales commissions are deferred when earned and amortized over the same period that revenue is recognized for the related non-cancellable subscription period. Amortization of deferred commissions is included in sales and marketing expense in the consolidated statements of operations. We deferred sales commissions costs of, $26.1 million, $20.0 million and 21.7 million during the years ended January 31, 2018, 2017 and 2016, respectively, and amortized $21.5 million, $18.3 million and 15.8 million of deferred commissions during the same periods respectively. |
Deferred Revenue | Deferred Revenue Deferred revenue consists of billings and payments received in advance of revenue recognition generated by our subscription services, premier customer support and professional services described above. For these services, we typically invoice our customers at the beginning of the term, in multiyear, annual, quarterly or monthly installments. Accordingly, the deferred revenue balance does not represent the total contract value of annual or multiyear, non-cancellable subscription contracts. |
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. 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 doubtful accounts 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 January 31, 2018, one customer accounted for more than 10% of total accounts receivable. As of January 31. 2017, two customers accounted for more than 10% of total accounts receivable. No single customer represented over 10% of revenue in any of the years ended January 31, 2018, 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 subscription 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 years ended January 31, 2018, 2017 and 2016, revenue attributed to the United States was 78%, 82% and 82%, respectively. No other country outside of the United States comprised 10% or greater of our revenue for the years ended January 31, 2018, 2017 and 2016. Substantially all of our net assets are located in the United States. As of January 31, 2018 and 2017, property and equipment located in the United States was approximately 95% and 99.7%, respectively. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions The functional currency of our principal foreign subsidiaries is generally the U.S. dollar. Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars for those entities that do not have U.S. dollars as their functional currency are recorded as part of a separate component of the consolidated statements of comprehensive loss. Foreign currency transaction gains and losses are included in the consolidated statements of operations for the period. Monetary assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenue and expenses are translated at the average exchange rate during the period. Equity transactions are translated using historical exchange rates. Translation adjustments at the balance sheet dates were not material. Transaction gains and losses recognized were not material for all periods presented. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid investments with an initial maturity of 90 days or less at the date of purchase to be cash equivalents. We maintain such funds in overnight cash deposits. |
Restricted Cash | Restricted Cash Restricted cash is comprised of certificates of deposits primarily related to our leases. These restricted cash balances have been excluded from our cash and cash equivalents balance and is classified as restricted cash on our consolidated balance sheets. The amount of restricted cash as of January 31, 2018 and 2017 was $0.4 million and $26.8 million, respectively, which was classified as non-current. |
Marketable Securities | Marketable Securities Our marketable securities consist of short-term, investment-grade corporate debt and asset-backed securities. We classify our marketable securities as available-for-sale at the time of purchase and reevaluate such classification as of each balance sheet date. All marketable securities are recorded at their estimated fair value. Unrealized gains and losses for available-for-sale securities are recorded in other comprehensive income (loss). We evaluate our investments to assess whether those with unrealized loss positions are other than temporarily impaired. We consider impairments to be other than temporary if they are related to deterioration in credit risk or if it is likely we will sell the securities before the recovery of their cost basis. Realized gains and losses and declines in value deemed to be other than temporary are determined based on the specific identification method and are reported in other income (expense), net in the consolidated statements of operations. As of January 31, 2018 and 2017, we had no marketable securities in our investment portfolio. We do not have any gross realized gains and losses on marketable securities for the years ended January 31, 2018 and 2017, and the gross realized gains and losses on marketable securities were not material for the year ended January 31, 2016. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Our financial assets and financial liabilities which may include cash equivalents, marketable securities, and restricted cash are measured and recorded at fair value on a recurring basis. We measure certain other assets including our non-marketable equity securities at fair value on a nonrecurring basis when they are deemed to be other-than-temporarily impaired. Our other current financial assets have fair values which approximate their carrying value due to their short-term maturities. |
Accounts Receivable and Related Allowance | Accounts Receivable and Related Allowance Accounts receivable are recorded at the invoiced amounts and do not bear interest. We maintain an allowance for estimated losses inherent in our accounts receivable portfolio. We assess the collectability of the accounts by taking into consideration the aging of our trade receivables, historical experience, and management judgment. We write off trade receivables against the allowance when management determines a balance is uncollectible and no longer actively pursues collection of the receivable. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the respective assets, generally three to four years. Leasehold improvements are amortized over the shorter of their estimated useful lives or the remaining lease term. Depreciation commences once the asset is placed in service. Construction in progress is primarily related to the construction or development of property and equipment which have not yet been placed in service for their intended use. |
Business Combinations | Business Combinations We allocate the fair value of purchase consideration to the tangible assets acquired, liabilities assumed and intangible assets acquired based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired users, acquired technology, and trade names from a market participant perspective, useful lives and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, which is one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to earnings. |
Long-Lived Assets, Including Goodwill and Other Acquired Intangible Assets | Long-Lived Assets, Including Goodwill and Other Acquired Intangible Assets We evaluate the recoverability of property and equipment for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If such review indicates that the carrying amount of property and equipment and intangible assets is not recoverable, the carrying amount of such assets is reduced to fair value. We have not recorded any significant impairment charge during the years presented. We review goodwill for impairment at least annually or more frequently if events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable. We have elected to first assess the qualitative factors to determine whether it is more likely than not that the fair value of our single reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the quantitative goodwill impairment test. If we determine that it is more likely than not that its fair value is less than its carrying amount, then the quantitative goodwill impairment test will be performed. The quantitative goodwill impairment test identifies goodwill impairment and measures the amount of goodwill impairment loss to be recognized by comparing the fair value of our single reporting unit with its carrying amount. If the carrying amount exceeds its fair value, no further analysis is required; otherwise, any excess of the goodwill carrying amount over the implied fair value is recognized as an impairment loss, and the carrying value of goodwill is written down to fair value. No impairment of goodwill has been identified during the years presented. Acquired finite-lived intangible assets are typically amortized over the estimated useful lives of the assets, which is generally two to seven years. We evaluate the recoverability of our intangible assets for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If such review indicates that the carrying amount of intangible assets is not recoverable, the carrying amount of such assets is reduced to fair value. We have not recorded any such impairment charge during the years presented. |
Legal Contingencies | Legal Contingencies From time to time, we are a party of 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. Because the results of litigation and claims cannot be predicted with certainty, we base our loss accruals on the best information available at the time. As additional information becomes available, we reassess our potential liability and may revise our estimates. Such revisions could have a material impact on future quarterly or annual results of operations. |
Research and Development Costs | Research and Development Costs Research and development costs include personnel costs, including stock-based compensation expense, associated with our engineering personnel and consultants responsible for the design, development and testing of the product, depreciation of equipment used in research and development and allocated overhead for facilities, information technology, and employee benefit costs. Research and development costs are expensed as incurred. |
Internal-Use Software Costs | Internal-Use Software Costs We capitalize costs to develop software for internal use incurred during the application development stage. Costs related to preliminary project activities and post implementation activities are expensed as incurred. Once an application has reached the development stage, management has authorized and committed to the funding of the software project, it is probable the project will be completed and the software will be used to perform the function intended, internal and external costs, if direct and incremental, are capitalized until the application is substantially complete and ready for its intended use. There were no material qualifying costs incurred during the application development stage in any of the periods presented. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and are included in sales and marketing expense. Advertising costs for the years ended January 31, 2018, 2017 and 2016 were $32.1 million, $28.1 million and $28.5 million, respectively. |
Income Taxes | Income Taxes We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the temporary differences between the financial statement and tax basis of assets and liabilities using the enacted tax rates in effect for the years in which the differences are expected to reverse. The effect on deferred taxes of a change in income tax rates is recognized in the consolidated statements of operations in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts we believe are more likely than not to be realized. We recognize tax benefits from uncertain tax positions only if we believe that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. |
Stock-Based Compensation | Stock-Based Compensation We determine the fair value of stock options and purchase rights issued to employees under our 2015 Equity Incentive Plan (2015 Plan) and 2015 Employee Stock Purchase Plan (2015 ESPP), on the date of grant using the Black-Scholes option pricing model, which is impacted by the fair value of our common stock, as well as changes in assumptions regarding a number of complex and subjective variables. These variables include, but are not limited to, the expected common stock price volatility over the term of the awards, the expected term of the awards, risk-free interest rates and the expected dividend yield. We use the market closing price of our Class A common stock as reported on the New York Stock Exchange for the fair value of restricted stock units and restricted stock granted after our IPO. We recognize compensation expense for stock options, restricted stock units and restricted stock, net of estimated forfeitures, on a straight-line basis over the period during which an employee is required to provide services in exchange for the award (generally the vesting period of the award). We estimate future forfeitures at the date of grant and revise the estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. We recognize compensation expense of purchase rights granted under our 2015 ESPP on a straight-line basis over the offering period. The assumptions used in the Black-Scholes option pricing model were determined as follows: Fair Value of Common Stock. 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 to estimate the expected volatility of the stock option grants, we determine the expected volatility of the stock option grants based on 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. We estimated the expected volatility of 2015 ESPP purchase rights based on the historical volatility of our common stock. Risk-free Interest Rate . The risk-free rate that we use is based on the implied yield available on U.S. Treasury zero-coupon issues with remaining terms similar to the expected term on the options and 2015 ESPP purchase rights. 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. |
Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements in Fiscal Year 2018 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 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 our prior periods presented. In April 2016, the FASB issued ASU 2016-09, Compensation- Stock Compensation: Improvements to Employee Share-Based Payment Accounting 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 consolidated statements of income as a component of the provision for income taxes rather than on the consolidated balance sheet as a paid-in capital. Included in our net operating loss and research and development tax credit carryforwards as of January 31, 2018 are approximately $25.1 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 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 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 consolidated financial statements. Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09 and its related amendments regarding ASC Topic 606, Revenue from Contracts with Customers The adoption of this ASU will primarily impact our capitalization and amortization of incremental costs of obtaining a contract, the timing of our revenue recognition for certain sales contracts, and disclosures. The quantitative ranges provided below are estimates of the expected effects of our adoption of ASC Topic 606. These ranges represent management’s best estimates of the effects of adopting ASC Topic 606 at the time of the preparation of this Annual Report on Form 10-K. The actual impact of ASC Topic 606 is subject to change from these estimates and such change may be significant, pending remaining final steps in the completion of our assessment. Costs to Obtain a Contract Under ASC Topic 606, we will capitalize costs based on the definition of incremental costs of obtaining a contract and commence amortization upon the transfer of services to the customer. Such costs will be amortized over a longer period than we had previously amortized in order to align to an estimated expected benefit period under ASC Topic 606 of five years. We expect the new commissions policy will have a material impact on our opening balance sheet as of February 1, 2018, resulting in a decrease of the accumulated deficit by approximately $28 million to $30 million and a corresponding increase to deferred commissions. Revenue Recognition There will be a change in the timing of revenue recognition for certain sales contracts due primarily to the removal of the current limitation on contingent revenue. The new revenue recognition policy will have a material impact on our opening balance sheet as of February 1, 2018 resulting in a decrease to accumulated deficit of $9 million to $11 million with a corresponding decrease to deferred revenue of approximately $9 million to $11 million and a corresponding increase to contract asset by less than $1 million. In November 2016, the FASB issued ASU 2016-18 , Statement of Cash Flows: Restricted Cash The new standard should be applied using a retrospective transition method to each period presented. consolidated statement of cash flows and related disclosures In February 2016, the FASB issued ASU 2016-02, Leases In June 2016, the FASB issued ASU 2016-13, Financial Instruments- Credit Losses |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
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): January 31, 2018 2017 Prepaid expenses $ 8,494 $ 9,256 Other current assets 2,897 1,570 Total prepaid expenses and other current assets $ 11,391 $ 10,826 |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): January 31, 2018 2017 Servers and related equipment $ 170,422 $ 143,219 Leasehold improvements 72,599 64,379 Computer hardware and software 14,558 11,373 Furniture and fixtures 14,254 12,824 Construction in progress 7,348 5,882 Total property and equipment 279,181 237,677 Less: accumulated depreciation (155,204 ) (120,501 ) Total property and equipment, net $ 123,977 $ 117,176 |
Schedule of Other Long-Term Assets | Other long-term assets consisted of the following (in thousands): January 31, 2018 2017 Deferred commissions, noncurrent $ 8,330 $ 7,491 Deposits, noncurrent 2,934 1,564 Other assets, noncurrent 2,469 1,725 Other long-term assets $ 13,733 $ 10,780 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill Activity | Goodwill activity for the year ended January 31, 2017 is reflected in the following table (in thousands): Balance as of January 31, 2016 $ 14,301 Goodwill acquired—Wagon 1,992 Balance as of January 31, 2017 16,293 |
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 January 31, 2018 Developed technology 2.5 years $ 14,273 $ (14,273 ) $ — Trade name and other 6.9 years 1,201 (1,177 ) 24 Intangibles, net $ 15,474 $ (15,450 ) $ 24 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) | 12 Months Ended |
Jan. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments under Non-cancellable Capital and Operating Leases | As of January 31, 2018, 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 2019 $ 19,748 $ 27,012 2020 14,046 30,950 2021 10,429 32,775 2022 3,219 30,434 2023 — 24,204 Thereafter — 138,545 Total minimum lease payments $ 47,442 $ 283,920 Less: amount representing interest (1,618 ) Present value of minimum lease payments $ 45,824 |
Future Payments under Non-cancellable Contractual Purchases | As of January 31, 2018, 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: 2019 30,010 2020 27,410 2021 3,153 2022 256 $ 60,829 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
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, 2016 15,634,518 $ 6.92 7.12 $ 82,541 Options granted 1,018,136 13.88 Option exercised (2,908,077 ) 3.81 Options forfeited/cancelled (1,425,777 ) 13.68 Balance as of January 31, 2017 12,318,800 $ 7.44 6.42 $ 119,606 Options granted 1,533,056 17.46 Option exercised (2,098,726 ) 6.94 Options forfeited/cancelled (910,010 ) 15.03 Balance as of January 31, 2018 10,843,120 $ 8.32 5.74 $ 150,922 Vested and expected to vest as of January 31, 2018 10,750,742 $ 8.26 5.71 $ 150,334 Exercisable as of January 31, 2018 8,703,037 $ 6.46 5.07 $ 137,306 |
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, 2016 8,204,968 $ 15.54 Granted 9,078,555 14.15 Vested, net of shares withheld for employee payroll taxes (1,994,363 ) 15.33 Forfeited/cancelled (3,466,844 ) 14.97 Unvested balance - January 31, 2017 11,822,316 $ 14.67 Granted 7,807,240 18.11 Vested, net of shares withheld for employee payroll taxes (3,007,876 ) 14.68 Forfeited/cancelled (2,002,428 ) 15.24 Unvested balance - January 31, 2018 14,619,252 $ 16.42 |
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): Year Ended January 31, 2018 2017 2016 Cost of revenue $ 10,742 $ 7,882 $ 4,664 Research and development 37,733 30,796 24,696 Sales and marketing 31,742 26,142 19,530 General and administrative 17,268 13,552 10,614 Total stock-based compensation $ 97,485 $ 78,372 $ 59,504 |
Summary of Estimated Fair Value of Employee Stock Options | We estimated the fair value of employee stock options and 2015 ESPP purchase rights using a Black-Scholes option pricing model with the following assumptions: Year Ended January 31, 2018 2017 2016 Employee Stock Options Expected term (in years) 5.5 – 6.1 5.5 – 6.0 5.5 – 6.1 Risk-free interest rate 1.8 % – 2.1% 1.3 % – 2.0% 1.5 % – 1.9% Volatility 38 % – 40% 40 % – 43% 42 % – 44% Dividend yield 0% 0% 0% Employee Stock Purchase Plan Expected term (in years) 0.5 – 2.0 0.5 – 2.0 0.5 – 2.0 Risk-free interest rate 0.9 % – 1.4% 0.5 % – 0.9% 0.2 % – 0.8% Volatility 28 % – 43% 39 % – 60% 33 % – 41% Dividend yield 0% 0% 0% |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
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): Year Ended January 31, 2018 2017 2016 Class A Class B Class A Class B Class A Class B Numerator: Net loss $ (115,847 ) $ (39,113 ) $ (64,771 ) $ (87,016 ) $ (49,448 ) $ (153,500 ) Denominator: Weighted-average number of shares outstanding—basic and diluted 100,127 33,805 54,394 73,075 29,540 91,700 Net loss per share—basic and diluted $ (1.16 ) $ (1.16 ) $ (1.19 ) $ (1.19 ) $ (1.67 ) $ (1.67 ) |
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): Year Ended January 31, 2018 2017 2016 Options to purchase common stock 11,971 13,550 16,654 Restricted stock units 13,369 10,121 7,233 Employee stock purchase plan 1,624 2,090 3,944 Repurchasable shares from early-exercised options and unvested restricted stock 98 324 551 Contingently issuable common stock 3 77 115 27,065 26,162 28,497 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Loss Before Provision For Income | The components of loss before provision for income taxes were as follows (in thousands): Year Ended January 31, 2018 2017 2016 United States $ (107,701 ) $ (115,640 ) $ (155,794 ) Foreign (46,544 ) (35,233 ) (46,464 ) Total $ (154,245 ) $ (150,873 ) $ (202,258 ) |
Schedule of Provision For Income Taxes | The components of the provision for income taxes were as follows (in thousands): Year Ended January 31, 2018 2017 2016 Current: Federal $ (430 ) $ 26 $ 29 State 75 122 146 Foreign 1,426 770 298 Total $ 1,071 $ 918 $ 473 Deferred: Federal $ (134 ) $ 96 $ 61 State 18 — — Foreign (240 ) (100 ) 156 Total $ (356 ) $ (4 ) $ 217 Provision for income taxes $ 715 $ 914 $ 690 |
Schedule of Reconciliation of The Federal Statutory Income Tax Rate And The Provision For Income Taxes | The items accounting for the difference between income taxes computed at the federal statutory income tax rate of 32.92% and the provision for income taxes consisted of the following (in thousands): Year Ended January 31, 2018 2017 2016 Tax benefit at federal statutory rate $ (50,772 ) $ (51,297 ) $ (68,767 ) State taxes, net of federal benefit (7,803 ) (7,778 ) (8,799 ) Foreign rate difference 7,988 7,363 6,744 Nondeductible expenses 689 594 429 Research and development credit (3,967 ) (3,607 ) (3,533 ) Stock-based compensation (4,148 ) 6,451 6,214 Change in reserve for unrecognized tax benefits 3,537 3,634 3,562 Other (383 ) 97 61 Change in valuation allowance, including the effect of tax rate change (34,119 ) 45,457 64,779 Effect of tax rate change on deferred tax assets 89,693 — — Total provision for income taxes $ 715 $ 914 $ 690 |
Schedule of Components of Deferred Tax Assets and Liabilities | The significant components of our deferred tax assets and liabilities were as follows (in thousands): January 31, 2018 2017 Deferred tax assets: Net operating loss carryforward $ 210,143 $ 227,023 Accruals and reserves 17,433 23,960 Stock-based compensation 11,673 13,304 Depreciation and amortization 5,809 7,513 Tax credit carryover 4,325 4,002 Acquired intangible assets 597 811 Total deferred tax assets 249,980 276,613 Valuation allowance (249,359 ) (276,392 ) Total deferred tax assets, net of valuation allowance 621 221 Deferred tax liabilities: Goodwill with indefinite life amortization (191 ) (157 ) Total deferred tax liabilities (191 ) (157 ) Net deferred tax assets $ 430 $ 64 |
Schedule of Reconciliation of Unrecognized Tax Benefit | A reconciliation of the gross unrecognized tax benefits is as follows (in thousands): Year Ended January 31, 2018 2017 2016 Unrecognized tax benefits—beginning of period $ 28,644 $ 20,656 $ 13,607 Reductions for tax positions related to prior year (971 ) — — Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations (337 ) — — Additions for tax positions related to prior year — 447 238 Additions for tax positions related to current year 8,858 7,541 6,811 Unrecognized tax benefits—end of period $ 36,194 $ 28,644 $ 20,656 |
Summary of Significant Accoun29
Summary of Significant Accounting Policies - Additional Information (Details) | Jan. 31, 2018USD ($)Customer | Jan. 31, 2017USD ($)Customer | Jan. 31, 2019 | Jan. 31, 2018USD ($)SourceCustomer | Jan. 31, 2017USD ($)Customer | Jan. 31, 2016USD ($)Customer |
Significant Accounting Policies [Line Items] | ||||||
Number of revenue sources | Source | 3 | |||||
Deferred sales commissions costs | $ 26,100,000 | $ 20,000,000 | $ 21,700,000 | |||
Amortization of deferred commissions | $ 21,476,000 | 18,260,000 | 15,816,000 | |||
Cash and cash equivalents liquid investments original maturity period | 90 days | |||||
Restricted cash | $ 400,000 | $ 26,800,000 | $ 400,000 | 26,800,000 | ||
Marketable securities | 0 | 0 | 0 | 0 | ||
Gross realized gains and losses on marketable securities | 0 | 0 | 0 | |||
Goodwill impairment | 0 | |||||
Costs incurred during the application development stage | 0 | |||||
Advertising costs | $ 32,100,000 | 28,100,000 | $ 28,500,000 | |||
Measured tax percentage of likelihood realized upon settlement | 50.00% | |||||
Excess tax benefits from employee stock option exercises included in net operating loss and research and development tax credit forwards | $ 25,100,000 | |||||
Accumulated deficit | (1,039,088,000) | (884,128,000) | (1,039,088,000) | (884,128,000) | ||
Deferred commissions | 17,589,000 | 13,771,000 | 17,589,000 | 13,771,000 | ||
Accounting Standards Update 2016-18 | ||||||
Significant Accounting Policies [Line Items] | ||||||
Restricted cash | 400,000 | $ 26,800,000 | $ 400,000 | $ 26,800,000 | ||
Minimum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Property and equipment, estimated useful lives | 3 years | |||||
Finite-lived intangible assets estimated useful lives | 2 years | |||||
Minimum | New Commissions Policy | Accounting Standards Update 2014-09 | Effect of Adoption of ASU Topic 606 | ||||||
Significant Accounting Policies [Line Items] | ||||||
Accumulated deficit | 28,000,000 | $ 28,000,000 | ||||
Deferred commissions | 28,000,000 | 28,000,000 | ||||
Minimum | New Revenue Recognition Policy | Accounting Standards Update 2014-09 | Effect of Adoption of ASU Topic 606 | ||||||
Significant Accounting Policies [Line Items] | ||||||
Accumulated deficit | 9,000,000 | 9,000,000 | ||||
Deferred revenue | 9,000,000 | $ 9,000,000 | ||||
Maximum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Property and equipment, estimated useful lives | 4 years | |||||
Finite-lived intangible assets estimated useful lives | 7 years | |||||
Maximum | New Commissions Policy | Accounting Standards Update 2014-09 | Effect of Adoption of ASU Topic 606 | ||||||
Significant Accounting Policies [Line Items] | ||||||
Accumulated deficit | 30,000,000 | $ 30,000,000 | ||||
Deferred commissions | 30,000,000 | 30,000,000 | ||||
Maximum | New Revenue Recognition Policy | Accounting Standards Update 2014-09 | Effect of Adoption of ASU Topic 606 | ||||||
Significant Accounting Policies [Line Items] | ||||||
Accumulated deficit | 11,000,000 | 11,000,000 | ||||
Deferred revenue | 11,000,000 | 11,000,000 | ||||
Contract asset | $ 1,000,000 | $ 1,000,000 | ||||
Credit Concentration Risk | Accounts Receivable | ||||||
Significant Accounting Policies [Line Items] | ||||||
Number of major customer | Customer | 1 | 2 | 1 | 2 | ||
Concentration risk percentage | 10.00% | 10.00% | ||||
Customer Concentration Risk | Revenue | ||||||
Significant Accounting Policies [Line Items] | ||||||
Number of major customer | Customer | 0 | 0 | 0 | 0 | 0 | |
Concentration risk percentage | 10.00% | 10.00% | 10.00% | |||
Geographic Concentration Risk | Revenue | United States | ||||||
Significant Accounting Policies [Line Items] | ||||||
Concentration risk percentage | 78.00% | 82.00% | 82.00% | |||
Geographic Concentration Risk | Property and Equipment | United States | ||||||
Significant Accounting Policies [Line Items] | ||||||
Concentration risk percentage | 95.00% | 99.70% | ||||
Scenario, Forecast | ||||||
Significant Accounting Policies [Line Items] | ||||||
Customer contracts, expected benefit period | 5 years | |||||
Data Center Assets | ||||||
Significant Accounting Policies [Line Items] | ||||||
Property and equipment, estimated useful lives | 4 years | |||||
Data Center Assets | Scenario, Previously Reported | ||||||
Significant Accounting Policies [Line Items] | ||||||
Property and equipment, estimated useful lives | 3 years |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | Jan. 31, 2018 | Jan. 31, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Restricted cash | $ 350 | $ 26,781 |
Certificates of Deposit | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Restricted cash | $ 400 | $ 26,800 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jan. 31, 2018 | Jan. 31, 2017 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 8,494 | $ 9,256 |
Other current assets | 2,897 | 1,570 |
Total prepaid expenses and other current assets | $ 11,391 | $ 10,826 |
Balance Sheet Components - Sc32
Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jan. 31, 2018 | Jan. 31, 2017 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | $ 279,181 | $ 237,677 |
Less: accumulated depreciation | (155,204) | (120,501) |
Total property and equipment, net | 123,977 | 117,176 |
Servers and related equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 170,422 | 143,219 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 72,599 | 64,379 |
Computer hardware and software | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 14,558 | 11,373 |
Furniture and fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 14,254 | 12,824 |
Construction in progress | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | $ 7,348 | $ 5,882 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Property Plant And Equipment [Line Items] | |||
Accumulated depreciation of property and equipment acquired under capital lease | $ 29,100,000 | $ 10,400,000 | |
Depreciation expense | 39,500,000 | 36,800,000 | $ 34,800,000 |
Amount of interest capitalized to property and equipment | 29,000 | 27,000 | 400,000 |
Servers and related equipment | |||
Property Plant And Equipment [Line Items] | |||
Gross amount of property and equipment acquired under capital lease | 74,700,000 | 43,200,000 | |
Depreciation expense | 18,800,000 | 7,900,000 | $ 2,300,000 |
Construction in progress | |||
Property Plant And Equipment [Line Items] | |||
Gross amount of property and equipment acquired under capital lease | $ 3,700,000 | $ 5,600,000 |
Balance Sheet Components - Sc34
Balance Sheet Components - Schedule of Other Long-Term Assets (Details) - USD ($) $ in Thousands | Jan. 31, 2018 | Jan. 31, 2017 |
Assets Noncurrent [Abstract] | ||
Deferred commissions, noncurrent | $ 8,330 | $ 7,491 |
Deposits, noncurrent | 2,934 | 1,564 |
Other assets, noncurrent | 2,469 | 1,725 |
Other long-term assets | $ 13,733 | $ 10,780 |
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 Asset36
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Goodwill acquired | $ 0 | ||
Amortization of intangible assets | $ 500,000 | $ 3,400,000 | $ 5,600,000 |
Goodwill and Intangible Asset37
Goodwill and Intangible Assets - Summary of Goodwill Activity (Details) - USD ($) | 12 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | |
Goodwill - Roll forward | ||
Beginning Balance | $ 16,293,000 | $ 14,301,000 |
Goodwill acquired | 0 | |
Ending Balance | $ 16,293,000 | 16,293,000 |
Wagon | ||
Goodwill - Roll forward | ||
Goodwill acquired | $ 1,992,000 |
Goodwill and Intangible Asset38
Goodwill and Intangible Assets - Schedule of Components of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | ||
Finite Lived Intangible Assets [Line Items] | |||
Gross Value | $ 15,474 | $ 15,474 | |
Accumulated Amortization | (15,450) | (14,931) | |
Net Carrying Value | $ 24 | $ 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 | (1,177) | (1,023) | |
Net Carrying Value | $ 24 | $ 178 | |
[1] | From the date of acquisition |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | Mar. 31, 2016USD ($) | Feb. 13, 2015USD ($) | Jan. 31, 2018USD ($)Floor | Jan. 31, 2017USD ($) | Jan. 31, 2016USD ($) | Jan. 31, 2015USD ($) | Nov. 27, 2017USD ($) |
Commitments And Contingencies [Line Items] | |||||||
Letters of credit facility | $ 26,800,000 | ||||||
Non-cancellable sublease expiration year | 2,022 | ||||||
Rent expense | $ 28,700,000 | 18,500,000 | $ 20,900,000 | ||||
Sublease income | 7,400,000 | 6,800,000 | 1,300,000 | ||||
Amortization of intangible assets | $ 500,000 | $ 3,400,000 | 5,600,000 | ||||
Settlement Agreement | |||||||
Commitments And Contingencies [Line Items] | |||||||
Amortization of intangible assets | $ 100,000 | ||||||
Date of settlement agreement | March 31, 2016 | ||||||
Jury award amount | 4,900,000 | ||||||
Reversal of Previous Settlement Accruals and Interest | 5,600,000 | ||||||
Income (Loss) Related to Litigation Settlement | $ 1,700,000 | ||||||
Open Text S.A. | |||||||
Commitments And Contingencies [Line Items] | |||||||
Damage awarded | $ 4,900,000 | ||||||
Accrual for settlement payable | $ 4,900,000 | ||||||
Litigation expense | $ 3,900,000 | ||||||
Weighted Average Useful Life | 14 months | ||||||
Accrued additional liability related to the interest on the jury award | 659,000 | ||||||
Open Text S.A. | Settlement Agreement | |||||||
Commitments And Contingencies [Line Items] | |||||||
Settlement amount paid | $ 3,750,000 | ||||||
Open Text S.A. | General and Administrative Expense | |||||||
Commitments And Contingencies [Line Items] | |||||||
Amortization of intangible assets | $ 855,000 | ||||||
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, 2019 | $ 7,600,000 | ||||||
Non-cancellable sublease proceeds for the year ending January 31, 2020 | 3,600,000 | ||||||
Non-cancellable sublease proceeds for the year ending January 31, 2021 | 2,700,000 | ||||||
Non-cancellable sublease proceeds for the year ending January 31, 2022 | $ 600,000 | ||||||
Minimum | |||||||
Commitments And Contingencies [Line Items] | |||||||
Operating lease expiration year | 2,019 | ||||||
Capital lease term | 3 years | ||||||
Term of sublease arrangement | 19 months | ||||||
Weighted Average Useful Life | 2 years | ||||||
Maximum | |||||||
Commitments And Contingencies [Line Items] | |||||||
Operating lease expiration year | 2,029 | ||||||
Capital lease term | 4 years | ||||||
Term of sublease arrangement | 49 months | ||||||
Weighted Average Useful Life | 7 years | ||||||
November 2017 Facility | Wells Fargo Bank | Secured Debt | Letter of Credit | |||||||
Commitments And Contingencies [Line Items] | |||||||
Letters of credit facility | $ 26,400,000 | ||||||
Line of credit facility, maximum borrowing capacity sublimit | $ 30,000,000 | ||||||
Agreement entered date | Nov. 27, 2017 |
Commitments and Contingencies40
Commitments and Contingencies - Future Minimum Lease Payments under Non-cancellable Capital and Operating Leases (Details) $ in Thousands | Jan. 31, 2018USD ($) |
Capital Leases | |
Capital Leases, 2019 | $ 19,748 |
Capital Leases, 2020 | 14,046 |
Capital Leases, 2021 | 10,429 |
Capital Leases, 2022 | 3,219 |
Capital Leases, Total minimum lease payments | 47,442 |
Capital Leases, Less: amount representing interest | (1,618) |
Capital Leases, Present value of minimum lease payments | 45,824 |
Operating Leases | |
Operating Leases, net of Sublease Income, 2019 | 27,012 |
Operating Leases, net of Sublease Income, 2020 | 30,950 |
Operating Leases, net of Sublease Income, 2021 | 32,775 |
Operating Leases, net of Sublease Income, 2022 | 30,434 |
Operating Leases, net of Sublease Income, 2023 | 24,204 |
Operating Leases, net of Sublease Income, Thereafter | 138,545 |
Operating Leases, net of Sublease Income, Total minimum lease payments | $ 283,920 |
Commitments and Contingencies41
Commitments and Contingencies - Future Payments under Non-cancellable Contractual Purchases (Details) $ in Thousands | Jan. 31, 2018USD ($) |
Purchase Obligation Fiscal Year Maturity [Abstract] | |
2,019 | $ 30,010 |
2,020 | 27,410 |
2,021 | 3,153 |
2,022 | 256 |
Total | $ 60,829 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Nov. 29, 2017 | Nov. 27, 2017 | Feb. 28, 2017 | Dec. 31, 2015 | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 |
Debt Instrument [Line Items] | |||||||
Decrease in restricted cash | $ 26,100,000 | ||||||
Interest cost capitalized | $ 29,000 | $ 27,000 | $ 400,000 | ||||
Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, interest expense | 1,000,000 | 900,000 | 1,900,000 | ||||
Interest cost capitalized | $ 29,000 | $ 27,000 | $ 400,000 | ||||
December 2015 Facility | Revolving Credit Facility | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 40,000,000 | ||||||
Line of credit facility maturity date | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Line of credit facility, floating interest rate | 1.25% | ||||||
Debt instrument, description of variable rate basis | The December 2015 Facility was denominated in U.S. dollars and, depending on certain conditions, each borrowing was 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% | ||||||
Repayment of outstanding principal balance | $ 40,000,000 | ||||||
Line of credit facility, termination date | Nov. 27, 2017 | ||||||
December 2015 Facility | Revolving Credit Facility | Secured Debt | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Minimum deposit held as collateral for line of credit | $ 0 | ||||||
Minimum deposit amount with lender | $ 40,000,000 | ||||||
December 2015 Facility | Revolving Credit Facility | Secured Debt | Minimum | Prime Rate | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, floating interest rate | 0.25% | ||||||
December 2015 Facility | Revolving Credit Facility | Secured Debt | Minimum | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, floating interest rate | 1.25% | ||||||
December 2015 Facility | Revolving Credit Facility | Secured Debt | Maximum | Prime Rate | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, floating interest rate | 2.75% | ||||||
December 2015 Facility | Revolving Credit Facility | Secured Debt | Maximum | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, floating interest rate | 3.75% | ||||||
November 2017 Facility | Secured Debt | Wells Fargo Bank | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility maturity date | Nov. 27, 2020 | ||||||
November 2017 Facility | Revolving Credit Facility | Secured Debt | Wells Fargo Bank | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 85,000,000 | ||||||
Line of credit facility, interest payment terms | Interest on the revolving loans is payable quarterly in arrears with respect to loans based on the prime rate and at the end of an interest period in the case of loans based on the LIBOR rate (or at each three-month interval if the interest period is longer than three months). | ||||||
November 2017 Facility | Revolving Credit Facility | Secured Debt | Prime Rate | Wells Fargo Bank | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, floating interest rate | 0.25% | ||||||
November 2017 Facility | Revolving Credit Facility | Secured Debt | London Interbank Offered Rate (LIBOR) | Wells Fargo Bank | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, floating interest rate | 1.00% | ||||||
November 2017 Facility | Letter of Credit | Secured Debt | Wells Fargo Bank | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity sublimit | $ 30,000,000 |
Common Stock and Stockholders43
Common Stock and Stockholders' Equity (Details) - $ / shares | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2015 | |
Class Of Stock [Line Items] | |||
Capital stock shares authorized | 1,300,000,000 | ||
Common Stock, par value | $ 0.0001 | ||
Preferred stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Common Stock, conversion features | Established that shares of our Class B common stock are voluntarily convertible into shares of our Class A common stock at the option of the holder, generally automatically convertible into shares of our Class A common stock upon transfer, and all outstanding shares of our Class B common stock will automatically convert into shares of our Class A common stock once the aggregate number of shares of our Class B common stock represents less than 5% of the then outstanding shares of Class A and Class B common stock | ||
Treasury Stock, shares | 3,052,953 | 3,052,953 | |
Class A Common Stock | |||
Class Of Stock [Line Items] | |||
Common Stock, par value | $ 0.0001 | $ 0.0001 | |
Common Stock, shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 |
Common stock, voting rights | 1 vote per share | ||
Class B Common Stock | |||
Class Of Stock [Line Items] | |||
Common Stock, par value | $ 0.0001 | $ 0.0001 | |
Common Stock, shares authorized | 200,000,000 | 200,000,000 | 200,000,000 |
Common stock, voting rights | 10 votes per share | ||
Maximum percentage of outstanding shares of Class A and Class B common stock, for automatic conversion of shares of Class B common stock | 5.00% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2017 | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Aggregate intrinsic value of exercised options | $ 25.6 | $ 26.9 | $ 24.8 | ||
Aggregate estimated fair value of stock options granted to employees vested | $ 9 | $ 15.2 | $ 16.7 | ||
Weighted-average grant date fair value of options granted to employees | $ 7.04 | $ 5.77 | $ 6.72 | ||
Unrecognized stock-based compensation expense related to stock option | $ 11.5 | ||||
Remaining weighted-average period | 2 years 5 months 23 days | ||||
Stock options forfeited | 910,010 | 1,425,777 | |||
Restricted Stock Units | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Remaining weighted-average period | 2 years 10 months 2 days | ||||
Unrecognized stock-based compensation expense | $ 186.2 | ||||
Employee Stock Option | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Dividend yield | 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 | 16,772,606 | 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 | 2,202,188 | ||||
Percentage of eligible compensation allowed to employees to purchase shares at a discount | 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% | ||||
Description of offering period resets | the offering period resets and the new lower price becomes the new offering price for a new 24 month offering period. | ||||
Unrecognized stock-based compensation expense | $ 6.3 | ||||
Dividend yield | 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) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Shares Subject to Options Outstanding, Beginning balance | 12,318,800 | 15,634,518 | |
Shares Subject to Options Outstanding, Options granted | 1,533,056 | 1,018,136 | |
Shares Subject to Options Outstanding, Options exercised | (2,098,726) | (2,908,077) | |
Shares Subject to Options Outstanding, Options forfeited/cancelled | (910,010) | (1,425,777) | |
Shares Subject to Options Outstanding, Ending balance | 10,843,120 | 12,318,800 | 15,634,518 |
Shares Subject to Options Outstanding, Vested and expected to vest | 10,750,742 | ||
Shares Subject to Options Outstanding, Exercisable | 8,703,037 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Weighted Average Exercise Price, Beginning Balance | $ 7.44 | $ 6.92 | |
Weighted Average Exercise Price, Options granted | 17.46 | 13.88 | |
Weighted Average Exercise Price, Options exercised | 6.94 | 3.81 | |
Weighted Average Exercise Price, Options forfeited/cancelled | 15.03 | 13.68 | |
Weighted Average Exercise Price, Ending Balance | 8.32 | $ 7.44 | $ 6.92 |
Weighted Average Exercise Price, Vested and expected to vest | 8.26 | ||
Weighted Average Exercise Price, Exercisable | $ 6.46 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Weighted Average Remaining Contractual Life (Years) | 5 years 8 months 26 days | 6 years 5 months 1 day | 7 years 1 month 13 days |
Weighted Average Remaining Contractual Life (Years), Vested and expected to vest | 5 years 8 months 15 days | ||
Weighted Average Remaining Contractual Life (Years), Exercisable | 5 years 25 days | ||
Aggregate Intrinsic Value, Balance | $ 150,922 | $ 119,606 | $ 82,541 |
Aggregate Intrinsic Value, Vested and expected to vest | 150,334 | ||
Aggregate Intrinsic Value, Exercisable | $ 137,306 |
Stock-Based Compensation - Su46
Stock-Based Compensation - Summary of Restricted Stock Unit and Awards Activity Under Equity Incentive Plans and Related Information (Details) - Restricted Stock Units - $ / shares | 12 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | |
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 | 11,822,316 | 8,204,968 |
Number of Restricted Stock Units/Awards Outstanding Granted | 7,807,240 | 9,078,555 |
Number of Restricted Stock Units/Awards Outstanding, Vested | (3,007,876) | (1,994,363) |
Number of Restricted Stock Units/Awards Outstanding, Forfeited/cancelled | (2,002,428) | (3,466,844) |
Number of Restricted Stock Units/Awards Outstanding Unvested Ending Balance | 14,619,252 | 11,822,316 |
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 | $ 14.67 | $ 15.54 |
Weighted-Average Grant Date Fair Value, Granted | 18.11 | 14.15 |
Weighted-Average Grant Date Fair Value, Vested | 14.68 | 15.33 |
Weighted-Average Grant Date Fair Value, Forfeited/cancelled | 15.24 | 14.97 |
Weighted-Average Grant Date Fair Value, Unvested Ending Balance | $ 16.42 | $ 14.67 |
Stock-Based Compensation - Su47
Stock-Based Compensation - Summary of Components of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 97,485 | $ 78,372 | $ 59,504 |
Cost of Revenue | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 10,742 | 7,882 | 4,664 |
Research and Development | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 37,733 | 30,796 | 24,696 |
Sales and Marketing | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 31,742 | 26,142 | 19,530 |
General and Administrative Expense | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 17,268 | $ 13,552 | $ 10,614 |
Stock-Based Compensation - Su48
Stock-Based Compensation - Summary of Estimated Fair Value of Employee Stock Options (Details) | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 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% | 0.20% |
Risk-free interest rate, Maximum | 1.40% | 0.90% | 0.80% |
Volatility, Minimum | 28.00% | 39.00% | 33.00% |
Volatility, Maximum | 43.00% | 60.00% | 41.00% |
Dividend yield | 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 |
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 | 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% | 1.50% |
Risk-free interest rate, Maximum | 2.10% | 2.00% | 1.90% |
Volatility, Minimum | 38.00% | 40.00% | 42.00% |
Volatility, Maximum | 40.00% | 43.00% | 44.00% |
Dividend yield | 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 |
Employee Stock Option | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 6 years 1 month 6 days | 6 years | 6 years 1 month 6 days |
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 | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Numerator: | |||
Net loss | $ (154,960) | $ (151,787) | $ (202,948) |
Denominator: | |||
Weighted-average number of shares outstanding—basic and diluted | 133,932 | 127,469 | 121,240 |
Net loss per share—basic and diluted | $ (1.16) | $ (1.19) | $ (1.67) |
Class A Common Stock | |||
Numerator: | |||
Net loss | $ (115,847) | $ (64,771) | $ (49,448) |
Denominator: | |||
Weighted-average number of shares outstanding—basic and diluted | 100,127 | 54,394 | 29,540 |
Net loss per share—basic and diluted | $ (1.16) | $ (1.19) | $ (1.67) |
Class B Common Stock | |||
Numerator: | |||
Net loss | $ (39,113) | $ (87,016) | $ (153,500) |
Denominator: | |||
Weighted-average number of shares outstanding—basic and diluted | 33,805 | 73,075 | 91,700 |
Net loss per share—basic and diluted | $ (1.16) | $ (1.19) | $ (1.67) |
Net Loss per Share - Summary 50
Net Loss per Share - Summary of Weighted Average Outstanding Shares Excluded from Computation of Diluted Net Loss per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 27,065 | 26,162 | 28,497 |
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 | 11,971 | 13,550 | 16,654 |
Restricted Stock Units | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 13,369 | 10,121 | 7,233 |
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 | 98 | 324 | 551 |
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 | 3 | 77 | 115 |
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 | 1,624 | 2,090 | 3,944 |
Income Taxes - Schedule of Loss
Income Taxes - Schedule of Loss Before Provision For Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (107,701) | $ (115,640) | $ (155,794) |
Foreign | (46,544) | (35,233) | (46,464) |
Loss before provision for income taxes | $ (154,245) | $ (150,873) | $ (202,258) |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision For Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Current: | |||
Federal | $ (430) | $ 26 | $ 29 |
State | 75 | 122 | 146 |
Foreign | 1,426 | 770 | 298 |
Total | 1,071 | 918 | 473 |
Deferred: | |||
Federal | (134) | 96 | 61 |
State | 18 | ||
Foreign | (240) | (100) | 156 |
Total | (356) | (4) | 217 |
Provision for income taxes | $ 715 | $ 914 | $ 690 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2018 | Dec. 31, 2017 | Jan. 31, 2018 | Jan. 31, 2017 | |
Income Tax Disclosure [Line Items] | ||||
Federal corporate tax rate | 21.00% | 34.00% | 32.92% | |
Valuation allowance (decrease) increase, amount | $ (27) | $ 44.2 | ||
Provisional tax expense associated with remeasurement of deferred tax balances | 89.7 | |||
Federal | ||||
Income Tax Disclosure [Line Items] | ||||
Net operating loss carry forwards | $ 624.7 | 624.7 | ||
Tax credit carry forward | 18.2 | $ 18.2 | ||
Operating loss carryforwards expiration year | 2,025 | |||
Research and development tax credit carryforwards expiration year | 2,025 | |||
State | ||||
Income Tax Disclosure [Line Items] | ||||
Net operating loss carry forwards | 613.7 | $ 613.7 | ||
Tax credit carry forward | 20.8 | $ 20.8 | ||
Operating loss carryforwards expiration year | 2,028 | |||
Foreign | ||||
Income Tax Disclosure [Line Items] | ||||
Net operating loss carry forwards | $ 214.7 | $ 214.7 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of The Federal Statutory Income Tax Rate And The Provision For Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Tax benefit at federal statutory rate | $ (50,772) | $ (51,297) | $ (68,767) |
State taxes, net of federal benefit | (7,803) | (7,778) | (8,799) |
Foreign rate difference | 7,988 | 7,363 | 6,744 |
Nondeductible expenses | 689 | 594 | 429 |
Research and development credit | (3,967) | (3,607) | (3,533) |
Stock-based compensation | (4,148) | 6,451 | 6,214 |
Change in reserve for unrecognized tax benefits | 3,537 | 3,634 | 3,562 |
Other | (383) | 97 | 61 |
Change in valuation allowance, including the effect of tax rate change | (34,119) | 45,457 | 64,779 |
Effect of tax rate change on deferred tax assets | 89,693 | ||
Provision for income taxes | $ 715 | $ 914 | $ 690 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2018 | Jan. 31, 2017 |
Deferred tax assets: | ||
Net operating loss carryforward | $ 210,143 | $ 227,023 |
Accruals and reserves | 17,433 | 23,960 |
Stock-based compensation | 11,673 | 13,304 |
Depreciation and amortization | 5,809 | 7,513 |
Tax credit carryover | 4,325 | 4,002 |
Acquired intangible assets | 597 | 811 |
Total deferred tax assets | 249,980 | 276,613 |
Valuation allowance | (249,359) | (276,392) |
Total deferred tax assets, net of valuation allowance | 621 | 221 |
Deferred tax liabilities: | ||
Goodwill with indefinite life amortization | (191) | (157) |
Total deferred tax liabilities | (191) | (157) |
Net deferred tax assets | $ 430 | $ 64 |
Income Taxes - Schedule of Re56
Income Taxes - Schedule of Reconciliation of Unrecognized Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits—beginning of period | $ 28,644 | $ 20,656 | $ 13,607 |
Reductions for tax positions related to prior year | (971) | ||
Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations | (337) | ||
Additions for tax positions related to prior year | 447 | 238 | |
Additions for tax positions related to current year | 8,858 | 7,541 | 6,811 |
Unrecognized tax benefits—end of period | $ 36,194 | $ 28,644 | $ 20,656 |
Segments - Additional Informati
Segments - Additional Information (Details) | 12 Months Ended |
Jan. 31, 2018Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
401(k) Plan - Additional Inform
401(k) Plan - Additional Information (Details) | 12 Months Ended |
Jan. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Maximum allowed percentage of employee's pre-tax salary contributed to the 401(k) plan | 100.00% |
Defined contribution plan, plan name | 401(k) Savings Plan |