Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 30, 2018 | May 31, 2018 | |
Document And Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Apr. 30, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | BOX | |
Entity Registrant Name | BOX INC | |
Entity Central Index Key | 1,372,612 | |
Current Fiscal Year End Date | --01-31 | |
Entity Filer Category | Large Accelerated Filer | |
Class A Common Stock | ||
Document And Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 131,764,530 | |
Class B Common Stock | ||
Document And Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 8,383,930 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 30, 2018 | Jan. 31, 2018 | ||
Current assets: | ||||
Cash and cash equivalents | $ 217,116 | $ 208,076 | ||
Accounts receivable, net of allowance of $1,867 and $1,856 | [1] | 91,025 | 162,133 | |
Prepaid expenses and other current assets | 17,575 | 11,391 | ||
Deferred commissions | 15,091 | 17,589 | ||
Total current assets | 340,807 | 399,189 | ||
Property and equipment, net | 124,518 | 123,977 | ||
Intangible assets, net | 10 | 24 | ||
Goodwill | 16,293 | 16,293 | ||
Restricted cash | 350 | 350 | ||
Deferred commissions, non-current | 41,275 | 8,330 | [2] | |
Other long-term assets | 5,226 | 5,403 | ||
Total assets | 528,479 | 553,566 | ||
Current liabilities: | ||||
Accounts payable | 14,485 | 17,036 | ||
Accrued compensation and benefits | 16,488 | 37,707 | ||
Accrued expenses and other current liabilities | 22,341 | 26,198 | ||
Capital lease obligations | 20,421 | 18,844 | ||
Deferred revenue | 264,427 | 291,902 | ||
Deferred rent | 2,589 | 2,280 | ||
Total current liabilities | 340,751 | 393,967 | ||
Debt, non-current | 40,000 | 40,000 | ||
Capital lease obligations, non-current | 29,941 | 26,980 | ||
Deferred revenue, non-current | 22,522 | 29,021 | ||
Deferred rent, non-current | 45,616 | 45,882 | ||
Other long-term liabilities | 3,034 | 2,748 | ||
Total liabilities | 481,864 | 538,598 | ||
Commitments and contingencies (Note 6) | ||||
Stockholders’ equity: | ||||
Preferred stock, par value $0.0001 per share; 100,000 shares authorized, no shares issued and outstanding as of April 30 (unaudited) and January 31, 2018 | ||||
Additional paid-in capital | 1,083,538 | 1,054,932 | ||
Treasury stock | (1,177) | (1,177) | ||
Accumulated other comprehensive income | 164 | 288 | ||
Accumulated deficit | (1,035,923) | (1,039,088) | ||
Total stockholders’ equity | 46,615 | 14,968 | ||
Total liabilities and stockholders’ equity | 528,479 | 553,566 | ||
Class A Common Stock | ||||
Stockholders’ equity: | ||||
Common stock, value | 8 | 7 | ||
Class B Common Stock | ||||
Stockholders’ equity: | ||||
Common stock, value | $ 5 | $ 6 | ||
[1] | Contract assets are reported as part of accounts receivable upon our adoption of ASC Topic 606. | |||
[2] | As of January 31, 2018, deferred commission, non-current was reported as part of other long-term assets. The condensed consolidated balance sheet as of January 31, 2018 was reclassified to conform to the current period presentation. |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Apr. 30, 2018 | Jan. 31, 2018 |
Allowance for accounts receivable | $ 1,867 | $ 1,856 |
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 | 128,865,000 | 125,933,000 |
Common Stock, shares outstanding | 128,865,000 | 125,933,000 |
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 | 11,110,000 | 11,384,000 |
Common Stock, shares outstanding | 11,110,000 | 11,384,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Income Statement [Abstract] | ||
Revenue | $ 140,507 | $ 117,222 |
Cost of revenue | 39,068 | 32,723 |
Gross profit | 101,439 | 84,499 |
Operating expenses: | ||
Research and development | 38,248 | 33,534 |
Sales and marketing | 76,998 | 70,663 |
General and administrative | 22,053 | 20,281 |
Total operating expenses | 137,299 | 124,478 |
Loss from operations | (35,860) | (39,979) |
Interest expense, net | (70) | (279) |
Other (loss) income, net | (343) | 16 |
Loss before provision (benefit) for income taxes | (36,273) | (40,242) |
Provision (benefit) for income taxes | 364 | (156) |
Net loss | $ (36,637) | $ (40,086) |
Net loss per common share, basic and diluted | $ (0.26) | $ (0.30) |
Weighted-average shares used to compute net loss per share, basic and diluted | 138,524 | 131,469 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | ||
Statement Of Income And Comprehensive Income [Abstract] | |||
Net loss | $ (36,637) | $ (40,086) | |
Other comprehensive (loss) income: | |||
Changes in foreign currency translation adjustment | [1] | (124) | 29 |
Other comprehensive (loss) income: | [1] | (124) | 29 |
Comprehensive loss | $ (36,761) | $ (40,057) | |
[1] | Tax effect was not material |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Jan. 31, 2018 | Jan. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net loss | $ (36,637) | $ (40,086) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||
Depreciation and amortization | 11,395 | 9,572 | ||
Stock-based compensation expense | 26,613 | 22,946 | ||
Amortization of deferred commissions | 3,675 | 4,990 | ||
Other | (21) | 22 | ||
Changes in operating assets and liabilities: | ||||
Accounts receivable, net | 71,690 | 37,346 | ||
Deferred commissions | (4,716) | (2,784) | ||
Prepaid expenses and other assets | (5,200) | (2,541) | ||
Accounts payable | 475 | 7,182 | ||
Accrued expenses and other liabilities | (24,717) | (10,967) | ||
Deferred rent | 43 | 530 | ||
Deferred revenue | (24,160) | (17,669) | ||
Net cash provided by operating activities | 18,440 | 8,541 | $ 61,800 | $ (1,200) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Purchases of property and equipment | (4,040) | (784) | ||
Proceeds from sale of property and equipment | 1 | 27 | ||
Net cash used in investing activities | (4,039) | (757) | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Proceeds from exercise of stock options | 3,362 | 2,456 | ||
Proceeds from issuances of common stock under employee stock purchase plan | 11,846 | 8,881 | ||
Employee payroll taxes paid related to net share settlement of restricted stock units | (13,295) | (9,114) | ||
Payments of capital lease obligations | (7,150) | (3,736) | ||
Net cash used in financing activities | (5,237) | (1,513) | ||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (124) | 29 | ||
Net increase in cash, cash equivalents, and restricted cash | 9,040 | 6,300 | ||
Cash, cash equivalents, and restricted cash, beginning of period | 208,426 | 204,172 | 204,172 | |
Cash, cash equivalents, and restricted cash, end of period | 217,466 | 210,472 | 208,426 | 204,172 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||
Cash paid for interest, net of amounts capitalized | 585 | 423 | ||
Cash paid for income taxes, net of tax refunds | 861 | 545 | ||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES: | ||||
Change in accrued equipment purchases | (2,568) | (1,164) | ||
Purchases of property and equipment under capital lease | 10,056 | 9,709 | ||
Change in unpaid tax related to capital lease | 85 | 235 | ||
Timing of settlement of stock options exercise | 1,007 | |||
CASH, CASH EQUIVALENT AND RESTRICTED CASH INFORMATION: | ||||
Cash and cash equivalents, beginning of period | 208,076 | 177,391 | 177,391 | |
Restricted cash, beginning of period | 350 | 26,781 | 26,781 | |
Cash, cash equivalents, and restricted cash, beginning of period | 208,426 | 204,172 | 204,172 | |
Cash and cash equivalents, end of period | 217,116 | 183,691 | 208,076 | 177,391 |
Restricted cash, end of period | 350 | 26,781 | 350 | 26,781 |
Cash, cash equivalents, and restricted cash, end of period | $ 217,466 | $ 210,472 | $ 208,426 | $ 204,172 |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Apr. 30, 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 cloud content while allowing easy, secure access and sharing of this content from anywhere, on any device. Basis of Presentation The accompanying condensed consolidated balance sheet as of April 30, 2018 and the condensed consolidated statements of operations, the condensed consolidated statements of comprehensive loss and the condensed consolidated statements of cash flows for the three months ended April 30, 2018 and 2017, respectively, are unaudited. The condensed consolidated balance sheet data as of January 31, 2018 was derived from the audited consolidated financial statements that are included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2018 (the “Form 10-K”), which was filed with the Securities and Exchange Commission (the “SEC”) on March 22, 2018. The accompanying statements should be read in conjunction with the audited consolidated financial statements and related notes contained in our Form 10-K. Other than items discussed under Recently Adopted Accounting Pronouncements and Summary of Significant Accounting Policies , there have been no other material changes to our critical accounting policies and estimates during the three months ended April 30, 2018 from those disclosed in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Form 10-K. The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the financial information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of our management, the unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements in the Form 10-K, and include all adjustments necessary for the fair presentation of our balance sheet as of April 30, 2018, and our results of operations, including our comprehensive loss, and our cash flows for the three months ended April 30, 2018 and 2017. All adjustments are of a normal recurring nature. The results for the three months ended April 30, 2018 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending January 31, 2019. Certain prior period amounts reported in our condensed consolidated financial statements and notes thereto have been reclassified to conform to the current year presentation. Such reclassifications did not affect total revenues, operating income or net income. Use of Estimates The preparation of condensed 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, estimate of standalone selling price allocation included in contracts with multiple performance obligations, the estimated expected benefit period for deferred commissions, Certain Risks and Concentrations Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash and accounts receivable. Although we deposit our cash with multiple financial institutions, our deposits, at times, may exceed federally insured limits. We sell to a broad range of customers, including resellers. Our revenue is derived substantially from the United States across a multitude of industries. Accounts receivable are derived from the delivery of our services to customers primarily located in the United States. We accept and settle our accounts receivable using credit cards, electronic payments and checks. A majority of our lower dollar value invoices are settled by credit card on or near the date of the invoice. We do not require collateral from customers to secure accounts receivable. We maintain an allowance for 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 April 30, 2018 and January 31, 2018, one reseller, which is also a customer, accounted for more than 10% of total accounts receivable. One reseller, which is also a customer, represented over 10% of revenue for the three months ended April 30, 2018. No single customer represented over 10% of revenue for the three months ended April 30, 2017. 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 three months ended April 30, 2018, revenue attributable to customers in the United States and customers outside the United States was 76% and 24%, respectively. For the three months ended April 30, 2017, revenue attributable to customers in the United States and customers outside the United States was 78% and 22%, respectively. No other country outside of the United States comprised 10% or greater of our revenue for any of the periods presented. Substantially all of our net assets are located in the United States. As of April 30, 2018 and January 31, 2018, property and equipment located in the United States was 93% and 95%, respectively. Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09 and its related amendments regarding Accounting Standards Codification Topic 606 (ASC Topic 606), Revenue from Contracts with Customers Adoption Impact of ASC Topic 606 on the Opening Balance Sheet as of February 1, 2018 Under ASC Topic 606, there is a change in the timing of revenue recognition for certain sales contracts primarily due to the removal of the contingent revenue limitation pursuant to ASC Topic 605. Under ASC Topic 606, we 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 are generally amortized over five years, which represents a longer period over which we had previously amortized, in order to align to an estimated expected benefit period under ASC Topic 606. Additionally, the scope of costs capitalized under ASC Topic 606 is significantly broader than the scope prior to ASC Topic 606, resulting in additional costs being capitalized. The adoption of ASC Topic 606 had no impact on our cash flows from operations. The following table summarizes the adjustments made to account on the condensed consolidated balance sheet as of February 1, 2018 as a result of applying the modified retrospective method to adopt ASC Topic 606 (in thousands): As Reported Adjustments As Adjusted January 31, 2018 Revenue Recognition Incremental Costs of Obtaining a Contract February 1, 2018 Accounts receivable * $ 162,133 $ 582 $ 162,715 Deferred commission 17,589 $ (3,449 ) 14,140 Deferred commission, non-current ** 8,330 32,855 41,185 Deferred revenue 291,902 (8,483 ) 283,419 Deferred revenue, non-current 29,021 (1,331 ) 27,690 Accumulated deficit (1,039,088 ) 10,396 29,406 (999,286 ) * Contract assets are reported as part of accounts receivable upon our adoption of ASC Topic 606. ** As of January 31, 2018, deferred commission, non-current was reported as part of other long-term assets. The condensed consolidated balance sheet as of January 31, 2018 was reclassified to conform to the current period presentation. The decrease of deferred revenue and increase to deferred commissions as of February 1, 2018 resulted in additional deferred tax liabilities that reduced our net deferred tax asset position. The net deferred tax assets in the jurisdictions impacted by the adoption of ASC Topic 606 were fully reserved and, accordingly, this impact was offset by a corresponding reduction to the valuation allowance with no resulting net impact to our net assets or accumulated deficit. In addition, the adoption of the ASC Topic 606 resulted in changes to our accounting estimates and policies for revenue recognition, deferred commissions, deferred revenue, and accounts receivable and related allowance. Please see Summary of Significant Accounting Policies for a discussion of our updated policies. Ongoing ASC Topic 606 Financial Statement Impact as of and for the three months ended April 30, 2018 Refer to “ Note 2. Revenue ” for the ongoing ASC Topic 606 impact on the condensed consolidated financial statement line items as of and for the three months ended April 30, 2018. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows: Restricted Cash In January 2016, the FASB issued ASU 2016-01, Financial Instruments (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. In addition, the adoption of the ASU 2016-01 and 2018-03 resulted in changes to our accounting policies for fair value of financial instruments. Please see Summary of Significant Accounting Policies for a discussion of our updated policies. In October 2016, the FASB issued ASU 2016-16 related to the accounting for income tax effects on intra-entity asset transfers of assets other than inventory. The new guidance requires reporting entities to recognize tax expense from the sale of assets when the transfer occurs, even though the pre-tax effects of the transaction are eliminated in consolidation. We adopted ASU 2016-16 in the first quarter of fiscal year 2019 on a modified retrospective basis. The adoption did not result in a material impact on our condensed consolidated financial statements. Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases Note 6. Commitments and Contingencies In June 2016, the FASB issued ASU 2016-13, Financial Instruments- Credit Losses Summary of Significant Accounting Policies Except for the accounting policies for revenue recognition, deferred commissions, deferred revenue, accounts receivable and related allowance, and fair value of financial instruments Summary of Significant Accounting Policies Revenue Recognition We derive our revenue primarily from three sources: (1) subscription revenue, which is comprised of subscription fees from customers who have access to our cloud content management platform and other subscription-based services, which all include routine customer support; (2) revenue from customers purchasing our premier services package; and (3) revenue from professional services such as implementing best practice use cases, project management and implementation consulting services. Revenue is recognized when control of these services are transferred to a customer. The amount of revenue recognized reflects the consideration we expect to be entitled to in exchange for those services. We determine revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as we, satisfy a performance obligation Subscription and Premier Services Revenues Subscription and premier services revenue is generally recognized on a ratable basis over the contract term beginning on the date that our service is made available to the customer. We typically invoice our customers at the beginning of the term, in multiyear, annual, quarterly or monthly installments. Our subscription and premier services contracts generally range from one to three years in length, 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. Professional Services Professional services are generally billed on a fixed price basis, for which revenue is recognized over time based on the proportion performed. Contracts with Multiple Performance Obligations Our contracts can include multiple performance obligations which may consist of some or all of subscription services, premier services, and professional services. For these contracts, we account for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. We determine the standalone selling prices based on our overall pricing objectives, taking into consideration 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. Deferred Commissions Sales commissions earned by our sales force are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions for new contracts are deferred and then amortized on a straight-line basis over a period of benefit that we have estimated to be five years. We determined the period of benefit by taking into consideration our customer contracts, our technology and other factors. Sales commissions for renewal contracts are deferred and then amortized on a straight-line basis over the related contractual renewal period. Amortization expense is included in sales and marketing expenses on the condensed consolidated statements of operations. We apply the practical expedient in ASC Topic 606 to expense costs as incurred for sales commissions when the amortization period would have been one year or less. Deferred Revenue Deferred revenue consists of billings and payments received in advance of revenue recognition generated by our subscription services, premier services, and professional services described above. Topic 606 introduced the concept of contract liabilities, which is substantially similar to deferred revenue under previous accounting guidance. 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 intends to actively pursue collection of the receivable. We record a contract asset when revenue is recognized in advance of invoicing. Contract assets are presented within accounts receivable on the condensed consolidated balance sheets. 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. Non-marketable equity securities include our privately held strategic equity securities without readily determinable fair values. We record these privately held strategic equity securities without readily determinable fair values using a measurement alternative which measures the securities at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes with a same or similar security from the same issuer. Our non-marketable equity securities are recorded at fair value only if an impairment or observable price adjustment is recognized in the current period. If an observable price adjustment or impairment is recognized on our non-marketable equity securities, we classify these assets as Level 3 within the fair value hierarchy based on the nature of the fair value inputs. Our other current financial assets have fair values which approximate their carrying value due to their short-term maturities. |
Revenue
Revenue | 3 Months Ended |
Apr. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | Note 2. Revenue Impact of ASC Topic 606 on Condensed Consolidated Financial Statement Line Items The adoption of ASC Topic 606 impacted revenue recognition and incremental costs of obtaining a contract on our condensed consolidated balance sheet and statement of operations for the three months ended April 30, 2018. In addition, there were offsetting shifts in cash flows throughout net loss and various changes in operating assets and liabilities, which resulted in no impact on the total cash provided by operating activities. Refer to Note 1 for a description of the primary impacts resulting from the adoption of ASC Topic 606. The following tables present the amount by which each condensed consolidated financial statement line item is affected as of and for the three months ended April 30, 2018 by ASC Topic 606 (in thousands, except per share data): April 30, 2018 As Reported Balances without adoption of ASC Topic 606 Effect of Change Higher/(Lower) ASSETS Accounts receivable * $ 91,025 $ 90,829 $ 196 Deferred commissions 15,091 15,512 (421 ) Deferred commissions, non-current 41,275 7,208 34,067 LIABILITIES AND STOCKHOLDERS’ EQUITY Deferred revenue 264,427 270,834 (6,407 ) Deferred revenue, non-current 22,522 23,569 (1,047 ) Accumulated deficit (1,035,923 ) (1,077,219 ) 41,296 * Contract assets are reported as part of accounts receivable upon our adoption of ASC Topic 606. Three Months Ended April 30, 2018 As Reported Balances without adoption of ASC Topic 606 Effect of Change Higher/(Lower) Revenue $ 140,507 $ 143,253 $ (2,746 ) Operating expenses: Sales and marketing 76,998 81,238 (4,240 ) Loss from operations (35,860 ) (37,354 ) 1,494 Net loss (36,637 ) (38,131 ) 1,494 Net loss per common share, basic and diluted * $ (0.26 ) $ (0.28 ) $ 0.01 Weighted-average shares used to compute net loss per share, basic and diluted 138,524 138,524 138,524 * Due to rounding, numbers presented may not add up precisely to totals provided. Three Months Ended April 30, 2018 As Reported Balances without adoption of ASC Topic 606 Effect of Change Higher/(Lower) CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (36,637 ) $ (38,131 ) $ 1,494 Adjustments to reconcile net loss to net cash provided by operating activities: Amortization of deferred commissions 3,675 5,962 (2,287 ) Changes in operating assets and liabilities: Accounts receivable, net 71,690 71,304 386 Deferred commissions (4,716 ) (2,763 ) (1,953 ) Deferred revenue (24,160 ) (26,520 ) 2,360 Net cash provided by operating activities 18,440 18,440 — Contract Assets Contract assets, which are presented within accounts receivable, were $0.2 million as of April 30, 2018. Deferred revenue was $286.9 million as of April 30, 2018. $110.9 million of revenue was recognized during the three months ended April 30, 2018, that was included in the deferred revenue balances at the beginning of the same period. Transaction Price Allocated to the Remaining Performance Obligations As of April 30, 2018, approximately $547.9 million of revenue is expected to be recognized from remaining performance obligations for subscription contracts. We expect to recognize revenue on 69% of these remaining performance obligations over the next 12 months, with the balance recognized thereafter. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 3. 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 that 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 that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. These inputs are based on our own assumptions used to measure assets and liabilities at fair value and require significant management judgment or estimation. We measure restricted cash at fair value on a recurring basis. We classify this asset within Level 1 or Level 2 because they are valued using either quoted market prices for identical assets or inputs other than quoted prices that 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 related to our leases |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Apr. 30, 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): April 30, January 31, 2018 2018 Prepaid expenses $ 13,388 $ 8,494 Other current assets 4,187 2,897 Total prepaid expenses and other current assets $ 17,575 $ 11,391 Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): April 30, January 31, 2018 2018 Servers $ 179,490 $ 170,422 Leasehold improvements 72,976 72,599 Computer hardware and software 14,999 14,558 Furniture and fixtures 14,487 14,254 Construction in progress 9,052 7,348 Total property and equipment 291,004 279,181 Less: accumulated depreciation (166,486 ) (155,204 ) Total property and equipment, net $ 124,518 $ 123,977 As of April 30, 2018, the gross carrying amount of property and equipment included $84.6 million of servers and $4.4 million of construction in progress acquired under capital leases, and the accumulated depreciation of property and equipment acquired under these capital leases was $35.0 million. As of January 31, 2018, the gross carrying amount of property and equipment included $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. Depreciation expense related to property and equipment was $11.4 million and $9.2 million for the three months ended April 30, 2018 and 2017. Included in these amounts was depreciation expense for servers acquired under capital leases in the amount of $5.9 million and $3.8 million for the three months ended April 30, 2018 and 2017, respectively. Construction in progress primarily consists of servers, networking equipment and storage infrastructure being provisioned in our datacenter facilities as well as leasehold improvements due to facilities investments. Other Long-term Assets Other long-term assets consisted of the following (in thousands): April 30, January 31, 2018 2018 Deposits, non-current $ 2,723 $ 2,934 Other assets, non-current 2,503 2,469 Other long-term assets $ 5,226 $ 5,403 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Apr. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 5. Goodwill and Intangible Assets There was no goodwill activity for the three months ended April 30, 2018. Intangible assets consisted of the following (in thousands): Weighted Average Useful Life (1) Gross Value Accumulated Amortization Net Carrying Value April 30, 2018 Developed technology 2.5 years $ 14,273 $ (14,273 ) $ — Trade name and other 6.9 years 1,201 (1,191 ) 10 Intangibles, net $ 15,474 $ (15,464 ) $ 10 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 (1) From the date of acquisition Intangible amortization expense was not material for the three months ended April 30, 2018 and was $0.4 million for the three months ended April 30, 2017. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 6. Commitments and Contingencies Letters of Credit As of April 30, 2018 and 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. Refer to Note 7 for additional details related to the secured credit agreement mentioned. Leases We have entered into various non-cancellable operating lease agreements for certain of our offices and datacenters with lease periods expiring primarily between fiscal years 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 included in the table below. We also entered into various capital lease arrangements to obtain servers and related equipment for our operations. These agreements typically have an initial term of three to four years. The leases are secured by the underlying leased servers and related equipment. As of April 30, 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, net of Sublease Income Remainder of 2019 $ 16,634 $ 21,406 2020 16,947 32,763 2021 13,071 35,214 2022 5,333 34,562 2023 202 26,747 Thereafter — 140,221 Total minimum lease payments $ 52,187 $ 290,913 Less: amount representing interest (1,825 ) Present value of minimum lease payments $ 50,362 We sublease certain floors of our headquarters and San Francisco office. These subleases have terms ranging from 19 to 49 months that will expire at various dates by fiscal year 2022. Non-cancellable sublease proceeds for the years ending January 31, 2019, 2020, 2021 and 2022 of $5.5 million, $3.6 million, $2.7 million and $0.6 million, respectively, are included in the table above. We establish assets and liabilities for the present value of estimated future costs to return certain of our leased facilities to their original condition. Such assets are depreciated over the lease period into operating expense, and the recorded liabilities are accreted to the future value of the estimated restoration costs. We did not have material asset retirement obligations as of April 30, 2018 and January 31, 2018. In addition, sufficient information did not exist as of April 30, 2018 to reasonably estimate the fair value of asset retirement obligations for our Tokyo office. We recognize rent expense under our operating leases on a straight-line basis. Rent expense totaled $8.3 million and $5.3 million, net of sublease income of $1.9 million for both the three months ended April 30, 2018 and 2017. Purchase Obligations As of April 30, 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: Remainder of 2019 $ 22,281 2020 35,345 2021 4,242 2022 272 $ 62,140 Legal Matters 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 April 30, 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 on the condensed 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 | 3 Months Ended |
Apr. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Note 7. 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 million in deposits with the lender. In addition, there was an annual fee of 0.2% on the total commitment amount. We drew $40.0 million at 1.82% (six month LIBOR plus 1.25%). Borrowings under the December 2015 Facility were collateralized by substantially all of our assets in the United States. The December 2015 Facility 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. In February 2017, we amended the December 2015 Facility to extend the maturity date to December 2018. Interest expense, net of capitalized interest costs, for the periods presented is not material. On November 27, 2017, we 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 6 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 April 30, 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 $0.3 million and $0.2 million for the three months ended April 30, 2018 and 2017, respectively. During the same periods, the amounts of interest capitalized were not material. Interest expense in connection with the above credit facilities may include interest charges for our line of credit |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Apr. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 8. Stock-Based Compensation 2015 Equity Incentive Plan In January 2015, our board of directors adopted the 2015 Equity Incentive Plan (2015 Plan), which became effective prior to the completion of our initial public offering (IPO). A total of 12,200,000 shares of Class A common stock was initially reserved for issuance pursuant to future awards under the 2015 Plan. On the first day of each fiscal year, shares available for issuance are increased based on the provisions of the 2015 Plan. Any shares subject to outstanding awards under our 2006 Equity Incentive Plan (2006 Plan) or 2011 Equity Incentive Plan (2011 Plan) that are cancelled or repurchased subsequent to the 2015 Plan’s effective date are returned to the pool of shares reserved for issuance under the 2015 Plan. Awards granted under the 2015 Plan may be (i) incentive stock options, (ii) nonstatutory stock options, (iii) restricted stock units, (iv) restricted stock awards or (v) stock appreciation rights, as determined by our board of directors at the time of grant. 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. 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 April 30, 2018, 2,571,580 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, 2018 10,843,120 $ 8.32 5.74 $ 150,922 Options granted 650,000 20.28 Option exercised (631,210 ) 6.92 Options forfeited/cancelled (283,185 ) 13.67 Balance as of April 30, 2018 10,578,725 $ 9.00 5.73 $ 146,660 Vested and expected to vest as of April 30, 2018 10,483,748 $ 8.92 5.70 $ 146,139 Exercisable as of April 30, 2018 8,425,468 $ 6.85 4.95 $ 134,858 The aggregate intrinsic value of options vested and expected to vest and exercisable as of April 30, 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 three months ended April 30, 2018 and 2017 was $9.4 million and $6.6 million, respectively. The aggregate estimated fair value of stock options granted to employees that vested for the three months ended April 30, 2018 and 2017 was $2.5 million and $2.6 million, respectively. The weighted-average grant date fair value of options granted to employees during the three months ended April 30, 2018 and 2017 was $7.92 and $6.74 per share, respectively. As of April 30, 2018, there was $13.2 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 2.95 years. In April 2018, the compensation committee of our board of directors approved and granted 650,000 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 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, out of which . Subject to both the continued employment of the participant and the achievement of market-based performance goals established by the compensation committee, 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, 2018 14,619,252 $ 16.42 Granted 5,211,663 20.98 Vested, net of shares withheld for employee payroll taxes (1,010,888 ) 15.91 Forfeited/cancelled (838,952 ) 16.18 Unvested balance - April 30, 2018 17,981,075 $ 17.79 As of April 30, 2018, there was $260.0 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 3.15 years. 2015 ESPP As of April 30, 2018, there was $13.0 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 condensed consolidated statements of operations (in thousands): Three Months Ended April 30, 2018 2017 Cost of revenue $ 3,121 $ 2,468 Research and development 10,148 9,160 Sales and marketing 8,061 7,740 General and administrative 5,283 3,578 Total stock-based compensation $ 26,613 $ 22,946 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 assumption. During the three months ended April 30, 2018, we had no stock option grants awarded using a Black-Scholes option pricing model. Three Months Ended April 30, 2017 Employee Stock Options Expected term (in years) 6.0 Risk-free interest rate 2.1 % - 2.4 % Volatility 39 % - 40 % Dividend yield 0 % Three Months Ended April 30, Employee Stock Purchase Plan 2018 2017 Expected term (in years) 0.5 - 2.0 0.5 - 2.0 Risk-free interest rate 2.0 % - 2.3 % 0.9 % - 1.4 % Volatility 37 % - 50 % 28 % - 43 % Dividend yield 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 . We estimate the expected volatility of the stock option grants and 2015 ESPP purchase rights based on the historical volatility of our common stock over a period equivalent to the expected term of the stock option grants and 2015 ESPP purchase rights, respectively. 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 stock 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 | 3 Months Ended |
Apr. 30, 2018 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Note 9. Net Loss per Share We calculate our basic and diluted net loss per share in conformity with the two-class method required for companies with participating securities. Under the two-class method, basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding for the period, less shares subject to repurchase. The diluted net loss per share is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, options to purchase common stock, restricted stock units, 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): Three Months Ended April 30, 2018 2017 Class A Class B Class A Class B Numerator: Net loss $ (33,706 ) $ (2,931 ) $ (22,061 ) $ (18,025 ) Denominator: Weighted-average number of shares outstanding— basic and diluted 127,444 11,080 72,352 59,117 Net loss per share—basic and diluted $ (0.26 ) $ (0.26 ) $ (0.30 ) $ (0.30 ) The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net loss per share for the periods presented because the impact of including them would have been antidilutive (in thousands): Three Months Ended April 30, 2018 2017 Options to purchase common stock 10,532 10,534 Restricted stock units 13,495 12,650 Employee stock purchase plan 1,633 2,187 Repurchasable shares from early-exercised options and unvested restricted stock — 240 Contingently issuable common stock — 60 25,660 25,671 |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10. Income Taxes 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. The changes included in the Tax Act are broad and complex. The SEC 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. The Tax Act also includes provisions for Global Intangible Low-Taxed Income (“GILTI”) wherein taxes on foreign income are imposed in excess of a deemed return on tangible assets of foreign corporations. The FASB Staff Q&A, Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income 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 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. As a result of our adoption of ASC Topic 606 as of February 1, 2018, the $9.8 million decrease of deferred revenue and the $29.4 million increase to deferred commissions resulted in additional deferred tax liabilities that reduced our net deferred tax asset position. The net deferred tax assets in the jurisdictions impacted by the adoption of ASC Topic 606 were fully reserved and, accordingly, this impact was offset by a corresponding reduction to the valuation allowance with no resulting net impact to our net assets or accumulated deficit. We believe that we have provided adequate reserves for our income tax uncertainties in all open tax years. We do not expect our gross unrecognized tax benefits to change significantly over the next 12 months. |
Segments
Segments | 3 Months Ended |
Apr. 30, 2018 | |
Segment Reporting [Abstract] | |
Segments | Note 11. Segments Our chief operating decision maker reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. As such, we have a single reporting segment and operating unit structure. Since we operate in one operating segment, all required segment information can be found in the condensed consolidated financial statements. |
Description of Business and B18
Description of Business and Basis of Presentation (Policies) | 3 Months Ended |
Apr. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated balance sheet as of April 30, 2018 and the condensed consolidated statements of operations, the condensed consolidated statements of comprehensive loss and the condensed consolidated statements of cash flows for the three months ended April 30, 2018 and 2017, respectively, are unaudited. The condensed consolidated balance sheet data as of January 31, 2018 was derived from the audited consolidated financial statements that are included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2018 (the “Form 10-K”), which was filed with the Securities and Exchange Commission (the “SEC”) on March 22, 2018. The accompanying statements should be read in conjunction with the audited consolidated financial statements and related notes contained in our Form 10-K. Other than items discussed under Recently Adopted Accounting Pronouncements and Summary of Significant Accounting Policies , there have been no other material changes to our critical accounting policies and estimates during the three months ended April 30, 2018 from those disclosed in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Form 10-K. The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the financial information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of our management, the unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements in the Form 10-K, and include all adjustments necessary for the fair presentation of our balance sheet as of April 30, 2018, and our results of operations, including our comprehensive loss, and our cash flows for the three months ended April 30, 2018 and 2017. All adjustments are of a normal recurring nature. The results for the three months ended April 30, 2018 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending January 31, 2019. Certain prior period amounts reported in our condensed consolidated financial statements and notes thereto have been reclassified to conform to the current year presentation. Such reclassifications did not affect total revenues, operating income or net income. |
Use of Estimates | Use of Estimates The preparation of condensed 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, estimate of standalone selling price allocation included in contracts with multiple performance obligations, the estimated expected benefit period for deferred commissions, |
Certain Risks and Concentrations | Certain Risks and Concentrations Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash and accounts receivable. Although we deposit our cash with multiple financial institutions, our deposits, at times, may exceed federally insured limits. We sell to a broad range of customers, including resellers. Our revenue is derived substantially from the United States across a multitude of industries. Accounts receivable are derived from the delivery of our services to customers primarily located in the United States. We accept and settle our accounts receivable using credit cards, electronic payments and checks. A majority of our lower dollar value invoices are settled by credit card on or near the date of the invoice. We do not require collateral from customers to secure accounts receivable. We maintain an allowance for 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 April 30, 2018 and January 31, 2018, one reseller, which is also a customer, accounted for more than 10% of total accounts receivable. One reseller, which is also a customer, represented over 10% of revenue for the three months ended April 30, 2018. No single customer represented over 10% of revenue for the three months ended April 30, 2017. 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 three months ended April 30, 2018, revenue attributable to customers in the United States and customers outside the United States was 76% and 24%, respectively. For the three months ended April 30, 2017, revenue attributable to customers in the United States and customers outside the United States was 78% and 22%, respectively. No other country outside of the United States comprised 10% or greater of our revenue for any of the periods presented. Substantially all of our net assets are located in the United States. As of April 30, 2018 and January 31, 2018, property and equipment located in the United States was 93% and 95%, respectively. |
Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09 and its related amendments regarding Accounting Standards Codification Topic 606 (ASC Topic 606), Revenue from Contracts with Customers Adoption Impact of ASC Topic 606 on the Opening Balance Sheet as of February 1, 2018 Under ASC Topic 606, there is a change in the timing of revenue recognition for certain sales contracts primarily due to the removal of the contingent revenue limitation pursuant to ASC Topic 605. Under ASC Topic 606, we 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 are generally amortized over five years, which represents a longer period over which we had previously amortized, in order to align to an estimated expected benefit period under ASC Topic 606. Additionally, the scope of costs capitalized under ASC Topic 606 is significantly broader than the scope prior to ASC Topic 606, resulting in additional costs being capitalized. The adoption of ASC Topic 606 had no impact on our cash flows from operations. The following table summarizes the adjustments made to account on the condensed consolidated balance sheet as of February 1, 2018 as a result of applying the modified retrospective method to adopt ASC Topic 606 (in thousands): As Reported Adjustments As Adjusted January 31, 2018 Revenue Recognition Incremental Costs of Obtaining a Contract February 1, 2018 Accounts receivable * $ 162,133 $ 582 $ 162,715 Deferred commission 17,589 $ (3,449 ) 14,140 Deferred commission, non-current ** 8,330 32,855 41,185 Deferred revenue 291,902 (8,483 ) 283,419 Deferred revenue, non-current 29,021 (1,331 ) 27,690 Accumulated deficit (1,039,088 ) 10,396 29,406 (999,286 ) * Contract assets are reported as part of accounts receivable upon our adoption of ASC Topic 606. ** As of January 31, 2018, deferred commission, non-current was reported as part of other long-term assets. The condensed consolidated balance sheet as of January 31, 2018 was reclassified to conform to the current period presentation. The decrease of deferred revenue and increase to deferred commissions as of February 1, 2018 resulted in additional deferred tax liabilities that reduced our net deferred tax asset position. The net deferred tax assets in the jurisdictions impacted by the adoption of ASC Topic 606 were fully reserved and, accordingly, this impact was offset by a corresponding reduction to the valuation allowance with no resulting net impact to our net assets or accumulated deficit. In addition, the adoption of the ASC Topic 606 resulted in changes to our accounting estimates and policies for revenue recognition, deferred commissions, deferred revenue, and accounts receivable and related allowance. Please see Summary of Significant Accounting Policies for a discussion of our updated policies. Ongoing ASC Topic 606 Financial Statement Impact as of and for the three months ended April 30, 2018 Refer to “ Note 2. Revenue ” for the ongoing ASC Topic 606 impact on the condensed consolidated financial statement line items as of and for the three months ended April 30, 2018. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows: Restricted Cash In January 2016, the FASB issued ASU 2016-01, Financial Instruments (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. In addition, the adoption of the ASU 2016-01 and 2018-03 resulted in changes to our accounting policies for fair value of financial instruments. Please see Summary of Significant Accounting Policies for a discussion of our updated policies. In October 2016, the FASB issued ASU 2016-16 related to the accounting for income tax effects on intra-entity asset transfers of assets other than inventory. The new guidance requires reporting entities to recognize tax expense from the sale of assets when the transfer occurs, even though the pre-tax effects of the transaction are eliminated in consolidation. We adopted ASU 2016-16 in the first quarter of fiscal year 2019 on a modified retrospective basis. The adoption did not result in a material impact on our condensed consolidated financial statements. Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases Note 6. Commitments and Contingencies In June 2016, the FASB issued ASU 2016-13, Financial Instruments- Credit Losses |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Except for the accounting policies for revenue recognition, deferred commissions, deferred revenue, accounts receivable and related allowance, and fair value of financial instruments Summary of Significant Accounting Policies |
Revenue Recognition | Revenue Recognition We derive our revenue primarily from three sources: (1) subscription revenue, which is comprised of subscription fees from customers who have access to our cloud content management platform and other subscription-based services, which all include routine customer support; (2) revenue from customers purchasing our premier services package; and (3) revenue from professional services such as implementing best practice use cases, project management and implementation consulting services. Revenue is recognized when control of these services are transferred to a customer. The amount of revenue recognized reflects the consideration we expect to be entitled to in exchange for those services. We determine revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as we, satisfy a performance obligation Subscription and Premier Services Revenues Subscription and premier services revenue is generally recognized on a ratable basis over the contract term beginning on the date that our service is made available to the customer. We typically invoice our customers at the beginning of the term, in multiyear, annual, quarterly or monthly installments. Our subscription and premier services contracts generally range from one to three years in length, 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. Professional Services Professional services are generally billed on a fixed price basis, for which revenue is recognized over time based on the proportion performed. Contracts with Multiple Performance Obligations Our contracts can include multiple performance obligations which may consist of some or all of subscription services, premier services, and professional services. For these contracts, we account for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. We determine the standalone selling prices based on our overall pricing objectives, taking into consideration 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. |
Deferred Commissions | Deferred Commissions Sales commissions earned by our sales force are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions for new contracts are deferred and then amortized on a straight-line basis over a period of benefit that we have estimated to be five years. We determined the period of benefit by taking into consideration our customer contracts, our technology and other factors. Sales commissions for renewal contracts are deferred and then amortized on a straight-line basis over the related contractual renewal period. Amortization expense is included in sales and marketing expenses on the condensed consolidated statements of operations. We apply the practical expedient in ASC Topic 606 to expense costs as incurred for sales commissions when the amortization period would have been one year or less. |
Deferred Revenue | Deferred Revenue Deferred revenue consists of billings and payments received in advance of revenue recognition generated by our subscription services, premier services, and professional services described above. Topic 606 introduced the concept of contract liabilities, which is substantially similar to deferred revenue under previous accounting guidance. |
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 intends to actively pursue collection of the receivable. We record a contract asset when revenue is recognized in advance of invoicing. Contract assets are presented within accounts receivable on the condensed consolidated balance sheets. |
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. Non-marketable equity securities include our privately held strategic equity securities without readily determinable fair values. We record these privately held strategic equity securities without readily determinable fair values using a measurement alternative which measures the securities at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes with a same or similar security from the same issuer. Our non-marketable equity securities are recorded at fair value only if an impairment or observable price adjustment is recognized in the current period. If an observable price adjustment or impairment is recognized on our non-marketable equity securities, we classify these assets as Level 3 within the fair value hierarchy based on the nature of the fair value inputs. Our other current financial assets have fair values which approximate their carrying value due to their short-term maturities. |
Stock-Based Compensation | 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 . We estimate the expected volatility of the stock option grants and 2015 ESPP purchase rights based on the historical volatility of our common stock over a period equivalent to the expected term of the stock option grants and 2015 ESPP purchase rights, respectively. 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 stock 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. |
Description of Business and B19
Description of Business and Basis of Presentation (Tables) | 3 Months Ended |
Apr. 30, 2018 | |
Accounting Standards Update 2014-09 | |
Schedule of Effect of Adoption on Condensed Consolidated Financial Statements | The following table summarizes the adjustments made to account on the condensed consolidated balance sheet as of February 1, 2018 as a result of applying the modified retrospective method to adopt ASC Topic 606 (in thousands): As Reported Adjustments As Adjusted January 31, 2018 Revenue Recognition Incremental Costs of Obtaining a Contract February 1, 2018 Accounts receivable * $ 162,133 $ 582 $ 162,715 Deferred commission 17,589 $ (3,449 ) 14,140 Deferred commission, non-current ** 8,330 32,855 41,185 Deferred revenue 291,902 (8,483 ) 283,419 Deferred revenue, non-current 29,021 (1,331 ) 27,690 Accumulated deficit (1,039,088 ) 10,396 29,406 (999,286 ) * Contract assets are reported as part of accounts receivable upon our adoption of ASC Topic 606. ** As of January 31, 2018, deferred commission, non-current was reported as part of other long-term assets. The condensed consolidated balance sheet as of January 31, 2018 was reclassified to conform to the current period presentation. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Apr. 30, 2018 | |
Accounting Standards Update 2014-09 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Summary of Financial Statement Impact of ASC 606 | The following tables present the amount by which each condensed consolidated financial statement line item is affected as of and for the three months ended April 30, 2018 by ASC Topic 606 (in thousands, except per share data): April 30, 2018 As Reported Balances without adoption of ASC Topic 606 Effect of Change Higher/(Lower) ASSETS Accounts receivable * $ 91,025 $ 90,829 $ 196 Deferred commissions 15,091 15,512 (421 ) Deferred commissions, non-current 41,275 7,208 34,067 LIABILITIES AND STOCKHOLDERS’ EQUITY Deferred revenue 264,427 270,834 (6,407 ) Deferred revenue, non-current 22,522 23,569 (1,047 ) Accumulated deficit (1,035,923 ) (1,077,219 ) 41,296 * Contract assets are reported as part of accounts receivable upon our adoption of ASC Topic 606. Three Months Ended April 30, 2018 As Reported Balances without adoption of ASC Topic 606 Effect of Change Higher/(Lower) Revenue $ 140,507 $ 143,253 $ (2,746 ) Operating expenses: Sales and marketing 76,998 81,238 (4,240 ) Loss from operations (35,860 ) (37,354 ) 1,494 Net loss (36,637 ) (38,131 ) 1,494 Net loss per common share, basic and diluted * $ (0.26 ) $ (0.28 ) $ 0.01 Weighted-average shares used to compute net loss per share, basic and diluted 138,524 138,524 138,524 * Due to rounding, numbers presented may not add up precisely to totals provided. Three Months Ended April 30, 2018 As Reported Balances without adoption of ASC Topic 606 Effect of Change Higher/(Lower) CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (36,637 ) $ (38,131 ) $ 1,494 Adjustments to reconcile net loss to net cash provided by operating activities: Amortization of deferred commissions 3,675 5,962 (2,287 ) Changes in operating assets and liabilities: Accounts receivable, net 71,690 71,304 386 Deferred commissions (4,716 ) (2,763 ) (1,953 ) Deferred revenue (24,160 ) (26,520 ) 2,360 Net cash provided by operating activities 18,440 18,440 — |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Apr. 30, 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): April 30, January 31, 2018 2018 Prepaid expenses $ 13,388 $ 8,494 Other current assets 4,187 2,897 Total prepaid expenses and other current assets $ 17,575 $ 11,391 |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): April 30, January 31, 2018 2018 Servers $ 179,490 $ 170,422 Leasehold improvements 72,976 72,599 Computer hardware and software 14,999 14,558 Furniture and fixtures 14,487 14,254 Construction in progress 9,052 7,348 Total property and equipment 291,004 279,181 Less: accumulated depreciation (166,486 ) (155,204 ) Total property and equipment, net $ 124,518 $ 123,977 |
Schedule of Other Long-Term Assets | Other long-term assets consisted of the following (in thousands): April 30, January 31, 2018 2018 Deposits, non-current $ 2,723 $ 2,934 Other assets, non-current 2,503 2,469 Other long-term assets $ 5,226 $ 5,403 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Apr. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Components of Intangible Assets | Intangible assets consisted of the following (in thousands): Weighted Average Useful Life (1) Gross Value Accumulated Amortization Net Carrying Value April 30, 2018 Developed technology 2.5 years $ 14,273 $ (14,273 ) $ — Trade name and other 6.9 years 1,201 (1,191 ) 10 Intangibles, net $ 15,474 $ (15,464 ) $ 10 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 (1) From the date of acquisition |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Apr. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments under Non-cancellable Capital and Operating Leases | As of April 30, 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, net of Sublease Income Remainder of 2019 $ 16,634 $ 21,406 2020 16,947 32,763 2021 13,071 35,214 2022 5,333 34,562 2023 202 26,747 Thereafter — 140,221 Total minimum lease payments $ 52,187 $ 290,913 Less: amount representing interest (1,825 ) Present value of minimum lease payments $ 50,362 |
Future Payments under Non-cancellable Contractual Purchases | As of April 30, 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: Remainder of 2019 $ 22,281 2020 35,345 2021 4,242 2022 272 $ 62,140 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Apr. 30, 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, 2018 10,843,120 $ 8.32 5.74 $ 150,922 Options granted 650,000 20.28 Option exercised (631,210 ) 6.92 Options forfeited/cancelled (283,185 ) 13.67 Balance as of April 30, 2018 10,578,725 $ 9.00 5.73 $ 146,660 Vested and expected to vest as of April 30, 2018 10,483,748 $ 8.92 5.70 $ 146,139 Exercisable as of April 30, 2018 8,425,468 $ 6.85 4.95 $ 134,858 |
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, 2018 14,619,252 $ 16.42 Granted 5,211,663 20.98 Vested, net of shares withheld for employee payroll taxes (1,010,888 ) 15.91 Forfeited/cancelled (838,952 ) 16.18 Unvested balance - April 30, 2018 17,981,075 $ 17.79 |
Summary of Components of Stock-Based Compensation Expense | The following table summarizes the components of stock-based compensation expense recognized in the condensed consolidated statements of operations (in thousands): Three Months Ended April 30, 2018 2017 Cost of revenue $ 3,121 $ 2,468 Research and development 10,148 9,160 Sales and marketing 8,061 7,740 General and administrative 5,283 3,578 Total stock-based compensation $ 26,613 $ 22,946 |
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 assumption. During the three months ended April 30, 2018, we had no stock option grants awarded using a Black-Scholes option pricing model. Three Months Ended April 30, 2017 Employee Stock Options Expected term (in years) 6.0 Risk-free interest rate 2.1 % - 2.4 % Volatility 39 % - 40 % Dividend yield 0 % Three Months Ended April 30, Employee Stock Purchase Plan 2018 2017 Expected term (in years) 0.5 - 2.0 0.5 - 2.0 Risk-free interest rate 2.0 % - 2.3 % 0.9 % - 1.4 % Volatility 37 % - 50 % 28 % - 43 % Dividend yield 0 % 0 % |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Apr. 30, 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): Three Months Ended April 30, 2018 2017 Class A Class B Class A Class B Numerator: Net loss $ (33,706 ) $ (2,931 ) $ (22,061 ) $ (18,025 ) Denominator: Weighted-average number of shares outstanding— basic and diluted 127,444 11,080 72,352 59,117 Net loss per share—basic and diluted $ (0.26 ) $ (0.26 ) $ (0.30 ) $ (0.30 ) |
Summary of Weighted Average Outstanding Shares Excluded from Computation of Diluted Net Loss per Share | The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net loss per share for the periods presented because the impact of including them would have been antidilutive (in thousands): Three Months Ended April 30, 2018 2017 Options to purchase common stock 10,532 10,534 Restricted stock units 13,495 12,650 Employee stock purchase plan 1,633 2,187 Repurchasable shares from early-exercised options and unvested restricted stock — 240 Contingently issuable common stock — 60 25,660 25,671 |
Description of Business and B26
Description of Business and Basis of Presentation - Additional Information (Details) | Nov. 29, 2017USD ($) | Apr. 30, 2018USD ($)Customer | Apr. 30, 2017USD ($)Customer | Jan. 31, 2018USD ($)Customer | Jan. 31, 2017USD ($) |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Customer contracts, estimated expected benefit period | 5 years | ||||
Net cash provided by (used in) operating activities | $ 18,440,000 | $ 8,541,000 | $ 61,800,000 | $ (1,200,000) | |
Release of restricted cash | $ (26,100,000) | ||||
Restricted cash | $ 350,000 | 350,000 | |||
Sales commission estimated period of amortization on straight-line basis | 5 years | ||||
Minimum | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Period of subscription and premier services contracts | 1 year | ||||
Maximum | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Period of subscription and premier services contracts | 3 years | ||||
Accounting Standards Update 2016-18 | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Release of restricted cash | 26,400,000 | ||||
Accounting Standards Update 2016-18 | Adjustment | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Net cash provided by (used in) operating activities | 35,400,000 | $ (2,400,000) | |||
Release of restricted cash | $ 25,000,000 | ||||
Accounting Standards Update 2016-01 | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Impairment adjustment on investments | $ 0 | ||||
Accounting Standards Update 2016-01 | Reported Value Measurement | Other Long-Term Assets | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Investments on equity securities | $ 100,000 | ||||
Credit Concentration Risk | Accounts Receivable | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Number of major customer | Customer | 1 | 1 | |||
Concentration risk percentage | 10.00% | 10.00% | |||
Customer Concentration Risk | Revenue | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Number of major customer | Customer | 1 | 0 | |||
Concentration risk percentage | 10.00% | 10.00% | |||
Geographic Concentration Risk | Revenue | Non-U.S. | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Concentration risk percentage | 24.00% | 22.00% | |||
Geographic Concentration Risk | Revenue | United States | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Concentration risk percentage | 76.00% | 78.00% | |||
Geographic Concentration Risk | Property and Equipment | United States | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Concentration risk percentage | 93.00% | 95.00% |
Description of Business and B27
Description of Business and Basis of Presentation - Schedule of Adjustments made to Account on Condensed Consolidated Balance Sheet as a Result of Applying Retrospective Method (Details) - USD ($) $ in Thousands | Apr. 30, 2018 | Feb. 01, 2018 | Jan. 31, 2018 | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Accounts receivable | [1] | $ 91,025 | $ 162,133 | ||
Deferred commission | 15,091 | 17,589 | |||
Deferred commission, non-current | 41,275 | 8,330 | [2] | ||
Deferred revenue | 264,427 | 291,902 | |||
Deferred revenue, non-current | 22,522 | 29,021 | |||
Accumulated deficit | $ (1,035,923) | $ (1,039,088) | |||
Accounting Standards Update 2014-09 | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Accounts receivable | [1] | $ 162,715 | |||
Deferred commission | 14,140 | ||||
Deferred commission, non-current | [2] | 41,185 | |||
Deferred revenue | 283,419 | ||||
Deferred revenue, non-current | 27,690 | ||||
Accumulated deficit | (999,286) | ||||
Accounting Standards Update 2014-09 | Effect of Adoption of ASU Topic 606 | Revenue Recognition | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Accounts receivable | [1] | 582 | |||
Deferred revenue | (8,483) | ||||
Deferred revenue, non-current | (1,331) | ||||
Accumulated deficit | 10,396 | ||||
Accounting Standards Update 2014-09 | Effect of Adoption of ASU Topic 606 | Incremental Costs of Obtaining a Contract | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Deferred commission | (3,449) | ||||
Deferred commission, non-current | [2] | 32,855 | |||
Accumulated deficit | $ 29,406 | ||||
[1] | Contract assets are reported as part of accounts receivable upon our adoption of ASC Topic 606. | ||||
[2] | As of January 31, 2018, deferred commission, non-current was reported as part of other long-term assets. The condensed consolidated balance sheet as of January 31, 2018 was reclassified to conform to the current period presentation. |
Revenue - Financial Statement I
Revenue - Financial Statement Impact of ASC 606 (Balance Sheet) (Details) - USD ($) $ in Thousands | Apr. 30, 2018 | Jan. 31, 2018 | ||
ASSETS | ||||
Accounts receivable | [1] | $ 91,025 | $ 162,133 | |
Deferred commissions | 15,091 | 17,589 | ||
Deferred commissions, non-current | 41,275 | 8,330 | [2] | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Deferred revenue | 264,427 | 291,902 | ||
Deferred revenue, non-current | 22,522 | 29,021 | ||
Accumulated deficit | (1,035,923) | $ (1,039,088) | ||
Balances without adoption of ASC Topic 606 | Accounting Standards Update 2014-09 | ||||
ASSETS | ||||
Accounts receivable | [1] | 90,829 | ||
Deferred commissions | 15,512 | |||
Deferred commissions, non-current | 7,208 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Deferred revenue | 270,834 | |||
Deferred revenue, non-current | 23,569 | |||
Accumulated deficit | (1,077,219) | |||
Effect of Change Higher/(Lower) | Accounting Standards Update 2014-09 | ||||
ASSETS | ||||
Accounts receivable | [1] | 196 | ||
Deferred commissions | (421) | |||
Deferred commissions, non-current | 34,067 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Deferred revenue | (6,407) | |||
Deferred revenue, non-current | (1,047) | |||
Accumulated deficit | $ 41,296 | |||
[1] | Contract assets are reported as part of accounts receivable upon our adoption of ASC Topic 606. | |||
[2] | As of January 31, 2018, deferred commission, non-current was reported as part of other long-term assets. The condensed consolidated balance sheet as of January 31, 2018 was reclassified to conform to the current period presentation. |
Revenue - Financial Statement29
Revenue - Financial Statement Impact of ASC 606 (Income Statement) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Revenue | $ 140,507 | $ 117,222 |
Operating expenses: | ||
Sales and marketing | 76,998 | 70,663 |
Loss from operations | (35,860) | (39,979) |
Net loss | $ (36,637) | $ (40,086) |
Net loss per common share, basic and diluted | $ (0.26) | $ (0.30) |
Weighted-average shares used to compute net loss per share, basic and diluted | 138,524 | 131,469 |
Balances without adoption of ASC Topic 606 | Accounting Standards Update 2014-09 | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Revenue | $ 143,253 | |
Operating expenses: | ||
Sales and marketing | 81,238 | |
Loss from operations | (37,354) | |
Net loss | $ (38,131) | |
Net loss per common share, basic and diluted | $ (0.28) | |
Weighted-average shares used to compute net loss per share, basic and diluted | 138,524 | |
Effect of Change Higher/(Lower) | Accounting Standards Update 2014-09 | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Revenue | $ (2,746) | |
Operating expenses: | ||
Sales and marketing | (4,240) | |
Loss from operations | 1,494 | |
Net loss | $ 1,494 | |
Net loss per common share, basic and diluted | $ 0.01 | |
Weighted-average shares used to compute net loss per share, basic and diluted | 138,524 |
Revenue - Financial Statement30
Revenue - Financial Statement Impact of ASC 606 (Cash Flow) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Jan. 31, 2018 | Jan. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net loss | $ (36,637) | $ (40,086) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||
Amortization of deferred commissions | 3,675 | 4,990 | ||
Changes in operating assets and liabilities: | ||||
Accounts receivable, net | 71,690 | 37,346 | ||
Deferred commissions | (4,716) | (2,784) | ||
Deferred revenue | (24,160) | (17,669) | ||
Net cash provided by operating activities | 18,440 | $ 8,541 | $ 61,800 | $ (1,200) |
Balances without adoption of ASC Topic 606 | Accounting Standards Update 2014-09 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net loss | (38,131) | |||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||
Amortization of deferred commissions | 5,962 | |||
Changes in operating assets and liabilities: | ||||
Accounts receivable, net | 71,304 | |||
Deferred commissions | (2,763) | |||
Deferred revenue | (26,520) | |||
Net cash provided by operating activities | 18,440 | |||
Effect of Change Higher/(Lower) | Accounting Standards Update 2014-09 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net loss | 1,494 | |||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||
Amortization of deferred commissions | (2,287) | |||
Changes in operating assets and liabilities: | ||||
Accounts receivable, net | 386 | |||
Deferred commissions | (1,953) | |||
Deferred revenue | $ 2,360 |
Revenues - Additional Informati
Revenues - Additional Information (Details) $ in Millions | 3 Months Ended |
Apr. 30, 2018USD ($) | |
Revenue From Contract With Customer [Abstract] | |
Contract assets presented within accounts receivable | $ 0.2 |
Deferred revenue | 286.9 |
Deferred revenue recognized out of the beginning balance | 110.9 |
Remaining performance obligation, revenue recognized | $ 547.9 |
Revenue remaining performance obligation | 69.00% |
Revenues - Additional Informa32
Revenues - Additional Information (Details 1) | Apr. 30, 2018 |
Revenue From Contract With Customer [Abstract] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions | Apr. 30, 2018 | Jan. 31, 2018 |
Certificates of Deposit | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Restricted cash | $ 0.4 | $ 0.4 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Apr. 30, 2018 | Jan. 31, 2018 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 13,388 | $ 8,494 |
Other current assets | 4,187 | 2,897 |
Total prepaid expenses and other current assets | $ 17,575 | $ 11,391 |
Balance Sheet Components - Sc35
Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Apr. 30, 2018 | Jan. 31, 2018 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | $ 291,004 | $ 279,181 |
Less: accumulated depreciation | (166,486) | (155,204) |
Total property and equipment, net | 124,518 | 123,977 |
Servers | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 179,490 | 170,422 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 72,976 | 72,599 |
Computer hardware and software | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 14,999 | 14,558 |
Furniture and fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 14,487 | 14,254 |
Construction in progress | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | $ 9,052 | $ 7,348 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Jan. 31, 2018 | |
Property Plant And Equipment [Line Items] | |||
Accumulated depreciation of property and equipment acquired under capital lease | $ 35 | $ 29.1 | |
Depreciation expense | 11.4 | $ 9.2 | |
Servers | |||
Property Plant And Equipment [Line Items] | |||
Gross amount of property and equipment acquired under capital lease | 84.6 | 74.7 | |
Depreciation expense | 5.9 | $ 3.8 | |
Construction in progress | |||
Property Plant And Equipment [Line Items] | |||
Gross amount of property and equipment acquired under capital lease | $ 4.4 | $ 3.7 |
Balance Sheet Components - Sc37
Balance Sheet Components - Schedule of Other Long-Term Assets (Details) - USD ($) $ in Thousands | Apr. 30, 2018 | Jan. 31, 2018 |
Assets Noncurrent [Abstract] | ||
Deposits, non-current | $ 2,723 | $ 2,934 |
Other assets, non-current | 2,503 | 2,469 |
Other long-term assets | $ 5,226 | $ 5,403 |
Goodwill and Intangible Asset38
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Goodwill acquired | $ 0 | |
Amortization of intangible assets | $ 400,000 |
Goodwill and Intangible Asset39
Goodwill and Intangible Assets - Schedule of Components of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2018 | Jan. 31, 2018 | ||
Finite Lived Intangible Assets [Line Items] | |||
Gross Value | $ 15,474 | $ 15,474 | |
Accumulated Amortization | (15,464) | (15,450) | |
Net Carrying Value | $ 10 | $ 24 | |
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) | $ (14,273) | |
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 | (1,191) | (1,177) | |
Net Carrying Value | $ 10 | $ 24 | |
[1] | From the date of acquisition |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Apr. 30, 2018 | Apr. 30, 2017 | Jan. 31, 2018 | Nov. 27, 2017 | |
Commitments And Contingencies [Line Items] | ||||
Non-cancellable sublease expiration year | 2,022 | |||
Rent expense | $ 8.3 | $ 5.3 | ||
Sublease income | 1.9 | $ 1.9 | ||
Subleases Expire in Fiscal 2018 and 2021 | ||||
Commitments And Contingencies [Line Items] | ||||
Non-cancellable sublease proceeds for the year ending January 31, 2019 | 5.5 | |||
Non-cancellable sublease proceeds for the year ending January 31, 2020 | 3.6 | |||
Non-cancellable sublease proceeds for the year ending January 31, 2021 | 2.7 | |||
Non-cancellable sublease proceeds for the year ending January 31, 2022 | $ 0.6 | |||
Minimum | ||||
Commitments And Contingencies [Line Items] | ||||
Operating lease expiration year | 2,019 | |||
Capital lease initial term | 3 years | |||
Term of sublease arrangement | 19 months | |||
Maximum | ||||
Commitments And Contingencies [Line Items] | ||||
Operating lease expiration year | 2,029 | |||
Capital lease initial term | 4 years | |||
Term of sublease arrangement | 49 months | |||
November 2017 Facility | Letters of Credit | Secured Debt | Wells Fargo Bank | ||||
Commitments And Contingencies [Line Items] | ||||
Agreement entered date | Nov. 27, 2017 | |||
Letters of credit facility | $ 26.4 | $ 26.4 | ||
Line of credit facility, maximum borrowing capacity sublimit | $ 30 |
Commitments and Contingencies41
Commitments and Contingencies - Future Minimum Lease Payments under Non-cancellable Capital and Operating Leases (Details) $ in Thousands | Apr. 30, 2018USD ($) |
Capital Leases | |
Capital Leases, Remainder of 2019 | $ 16,634 |
Capital Leases, 2020 | 16,947 |
Capital Leases, 2021 | 13,071 |
Capital Leases, 2022 | 5,333 |
Capital Leases, 2023 | 202 |
Capital Leases, Total minimum lease payments | 52,187 |
Capital Leases, Less: amount representing interest | (1,825) |
Capital Leases, Present value of minimum lease payments | 50,362 |
Operating Leases | |
Operating Leases, net of Sublease Income, Remainder of 2019 | 21,406 |
Operating Leases, net of Sublease Income, 2020 | 32,763 |
Operating Leases, net of Sublease Income, 2021 | 35,214 |
Operating Leases, net of Sublease Income, 2022 | 34,562 |
Operating Leases, net of Sublease Income, 2023 | 26,747 |
Operating Leases, net of Sublease Income, Thereafter | 140,221 |
Operating Leases, net of Sublease Income, Total minimum lease payments | $ 290,913 |
Commitments and Contingencies42
Commitments and Contingencies - Future Payments under Non-cancellable Contractual Purchases (Details) $ in Thousands | Apr. 30, 2018USD ($) |
Purchase Obligation Fiscal Year Maturity [Abstract] | |
Remainder of 2019 | $ 22,281 |
2,020 | 35,345 |
2,021 | 4,242 |
2,022 | 272 |
Total | $ 62,140 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Nov. 29, 2017 | Nov. 27, 2017 | Feb. 28, 2017 | Dec. 31, 2015 | Apr. 30, 2018 | Apr. 30, 2017 |
Debt Instrument [Line Items] | ||||||
Decrease in restricted cash | $ 26,100,000 | |||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, interest expense | $ 300,000 | $ 200,000 | ||||
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 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | ||||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Oct. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Aggregate intrinsic value of exercised options | $ 9.4 | $ 6.6 | ||||
Aggregate estimated fair value of stock options granted to employees vested | $ 2.5 | $ 2.6 | ||||
Weighted-average grant date fair value of options granted to employees | $ 7.92 | $ 6.74 | ||||
Unrecognized stock-based compensation expense related to stock option | $ 13.2 | $ 13.2 | ||||
Remaining weighted-average period | 2 years 11 months 12 days | |||||
Stock options forfeited | 283,185 | |||||
Stock option grants awarded | 0 | |||||
Restricted Stock Units | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Remaining weighted-average period | 3 years 1 month 24 days | |||||
Unrecognized stock-based compensation expense | $ 260 | $ 260 | ||||
Employee Stock Option | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Dividend yield | 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 | 650,000 | 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 | 19,511,725 | 19,511,725 | 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 | 2,571,580 | 2,571,580 | ||||
Percentage of eligible compensation allowed to employees to purchase shares at a discount | 15.00% | 15.00% | ||||
Description of 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 | $ 13 | $ 13 | ||||
Dividend yield | 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 | 3 Months Ended | 12 Months Ended |
Apr. 30, 2018 | Jan. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Shares Subject to Options Outstanding, Beginning balance | 10,843,120 | |
Shares Subject to Options Outstanding, Options granted | 650,000 | |
Shares Subject to Options Outstanding, Options exercised | (631,210) | |
Shares Subject to Options Outstanding, Options forfeited/cancelled | (283,185) | |
Shares Subject to Options Outstanding, Ending balance | 10,578,725 | 10,843,120 |
Shares Subject to Options Outstanding, Vested and expected to vest | 10,483,748 | |
Shares Subject to Options Outstanding, Exercisable | 8,425,468 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Weighted Average Exercise Price, Beginning Balance | $ 8.32 | |
Weighted Average Exercise Price, Options granted | 20.28 | |
Weighted Average Exercise Price, Options exercised | 6.92 | |
Weighted Average Exercise Price, Options forfeited/cancelled | 13.67 | |
Weighted Average Exercise Price, Ending Balance | 9 | $ 8.32 |
Weighted Average Exercise Price, Vested and expected to vest | 8.92 | |
Weighted Average Exercise Price, Exercisable | $ 6.85 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted Average Remaining Contractual Life (Years) | 5 years 8 months 23 days | 5 years 8 months 26 days |
Weighted Average Remaining Contractual Life (Years), Vested and expected to vest | 5 years 8 months 12 days | |
Weighted Average Remaining Contractual Life (Years), Exercisable | 4 years 11 months 12 days | |
Aggregate Intrinsic Value, Balance | $ 146,660 | $ 150,922 |
Aggregate Intrinsic Value, Vested and expected to vest | 146,139 | |
Aggregate Intrinsic Value, Exercisable | $ 134,858 |
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 | 3 Months Ended |
Apr. 30, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Number of Restricted Stock Units/Awards Outstanding, Unvested Beginning Balance | shares | 14,619,252 |
Number of Restricted Stock Units/Awards Outstanding Granted | shares | 5,211,663 |
Number of Restricted Stock Units/Awards Outstanding, Vested | shares | (1,010,888) |
Number of Restricted Stock Units/Awards Outstanding, Forfeited/cancelled | shares | (838,952) |
Number of Restricted Stock Units/Awards Outstanding Unvested Ending Balance | shares | 17,981,075 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-Average Grant Date Fair Value, Unvested Beginning Balance | $ / shares | $ 16.42 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 20.98 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 15.91 |
Weighted-Average Grant Date Fair Value, Forfeited/cancelled | $ / shares | 16.18 |
Weighted-Average Grant Date Fair Value, Unvested Ending Balance | $ / shares | $ 17.79 |
Stock-Based Compensation - Su47
Stock-Based Compensation - Summary of Components of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 26,613 | $ 22,946 |
Cost of Revenue | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 3,121 | 2,468 |
Research and Development | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 10,148 | 9,160 |
Sales and Marketing | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 8,061 | 7,740 |
General and Administrative | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 5,283 | $ 3,578 |
Stock-Based Compensation - Su48
Stock-Based Compensation - Summary of Estimated Fair Value of Employee Stock Options (Details) | 3 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
2015 Employee Stock Purchase Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate, Minimum | 2.00% | 0.90% |
Risk-free interest rate, Maximum | 2.30% | 1.40% |
Volatility, Minimum | 37.00% | 28.00% |
Volatility, Maximum | 50.00% | 43.00% |
Dividend yield | 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 |
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 |
Employee Stock Option | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term (in years) | 6 years | |
Risk-free interest rate, Minimum | 2.10% | |
Risk-free interest rate, Maximum | 2.40% | |
Volatility, Minimum | 39.00% | |
Volatility, Maximum | 40.00% | |
Dividend yield | 0.00% | 0.00% |
Net Loss per Share - Summary of
Net Loss per Share - Summary of Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Numerator: | ||
Net loss | $ (36,637) | $ (40,086) |
Denominator: | ||
Weighted-average number of shares outstanding— basic and diluted | 138,524 | 131,469 |
Net loss per share—basic and diluted | $ (0.26) | $ (0.30) |
Class A Common Stock | ||
Numerator: | ||
Net loss | $ (33,706) | $ (22,061) |
Denominator: | ||
Weighted-average number of shares outstanding— basic and diluted | 127,444 | 72,352 |
Net loss per share—basic and diluted | $ (0.26) | $ (0.30) |
Class B Common Stock | ||
Numerator: | ||
Net loss | $ (2,931) | $ (18,025) |
Denominator: | ||
Weighted-average number of shares outstanding— basic and diluted | 11,080 | 59,117 |
Net loss per share—basic and diluted | $ (0.26) | $ (0.30) |
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 | 3 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 25,660 | 25,671 |
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 | 10,532 | 10,534 |
Restricted Stock Units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 13,495 | 12,650 |
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 | 240 | |
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 | 60 | |
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 | 1,633 | 2,187 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 4 Months Ended | 11 Months Ended | |
Apr. 30, 2018 | Dec. 31, 2017 | Feb. 01, 2018 | |
Income Tax Disclosure [Line Items] | |||
Federal corporate tax rate | 21.00% | 34.00% | |
Deferred revenue | $ 286.9 | ||
Accounting Standards Update 2014-09 | Effect of Adoption of ASU Topic 606 | Revenue Recognition | |||
Income Tax Disclosure [Line Items] | |||
Deferred revenue | $ (9.8) | ||
Accounting Standards Update 2014-09 | Effect of Adoption of ASU Topic 606 | Incremental Costs of Obtaining a Contract | |||
Income Tax Disclosure [Line Items] | |||
Deferred commission | $ 29.4 |
Segments - Additional Informati
Segments - Additional Information (Details) | 3 Months Ended |
Apr. 30, 2018Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |