Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 31, 2018 | Nov. 30, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Oct. 31, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | BOX | |
Entity Registrant Name | BOX INC | |
Entity Central Index Key | 1,372,612 | |
Current Fiscal Year End Date | --01-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 143,405,095 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Oct. 31, 2018 | Jan. 31, 2018 | ||
Current assets: | ||||
Cash and cash equivalents | $ 200,104 | $ 208,076 | ||
Accounts receivable, net of allowance of $2,213 and $1,856 | [1] | 105,714 | 162,133 | |
Prepaid expenses and other current assets | 15,037 | 11,391 | ||
Deferred commissions | 18,772 | 17,589 | ||
Total current assets | 339,627 | 399,189 | ||
Property and equipment, net | 133,374 | 123,977 | ||
Intangible assets, net | 24 | |||
Goodwill | 18,740 | 16,293 | ||
Restricted cash | 238 | 350 | ||
Deferred commissions, non-current | 47,379 | 8,330 | [2] | |
Other long-term assets | 7,529 | 5,403 | ||
Total assets | 546,887 | 553,566 | ||
Current liabilities: | ||||
Accounts payable | 14,038 | 17,036 | ||
Accrued compensation and benefits | 23,077 | 37,707 | ||
Accrued expenses and other current liabilities | 32,048 | 26,198 | ||
Capital lease obligations | 24,285 | 18,844 | ||
Deferred revenue | 281,289 | 291,902 | ||
Deferred rent | 3,251 | 2,280 | ||
Total current liabilities | 377,988 | 393,967 | ||
Debt, non-current | 40,000 | 40,000 | ||
Capital lease obligations, non-current | 33,965 | 26,980 | ||
Deferred revenue, non-current | 19,952 | 29,021 | ||
Deferred rent, non-current | 45,160 | 45,882 | ||
Other long-term liabilities | 4,176 | 2,748 | ||
Total liabilities | 521,241 | 538,598 | ||
Commitments and contingencies (Note 7) | ||||
Stockholders’ equity: | ||||
Common stock | 14 | 13 | ||
Additional paid-in capital | 1,141,100 | 1,054,932 | ||
Treasury stock | (1,177) | (1,177) | ||
Accumulated other comprehensive (loss) income | (87) | 288 | ||
Accumulated deficit | (1,114,204) | (1,039,088) | ||
Total stockholders’ equity | 25,646 | 14,968 | ||
Total liabilities and stockholders’ equity | $ 546,887 | $ 553,566 | ||
[1] | Contract assets are reported as part of accounts receivable upon the adoption of ASC Topic 606. | |||
[2] | As of January 31, 2018, deferred commissions, 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 BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Oct. 31, 2018 | Jan. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Allowance for accounts receivable | $ 2,213 | $ 1,856 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | |
Income Statement [Abstract] | ||||
Revenue | $ 155,944 | $ 129,304 | $ 444,673 | $ 369,467 |
Cost of revenue | 44,724 | 34,471 | 126,397 | 99,972 |
Gross profit | 111,220 | 94,833 | 318,276 | 269,495 |
Operating expenses: | ||||
Research and development | 42,310 | 34,812 | 122,388 | 102,388 |
Sales and marketing | 84,490 | 81,670 | 238,472 | 225,604 |
General and administrative | 23,884 | 20,910 | 69,959 | 63,037 |
Total operating expenses | 150,684 | 137,392 | 430,819 | 391,029 |
Loss from operations | (39,464) | (42,559) | (112,543) | (121,534) |
Interest expense, net | (47) | (287) | (208) | (802) |
Other (loss) income, net | (321) | 277 | (1,243) | 560 |
Loss before provision for income taxes | (39,832) | (42,569) | (113,994) | (121,776) |
Provision for income taxes | 364 | 355 | 924 | 519 |
Net loss | $ (40,196) | $ (42,924) | $ (114,918) | $ (122,295) |
Net loss per common share, basic and diluted | $ (0.28) | $ (0.32) | $ (0.82) | $ (0.92) |
Weighted-average shares used to compute net loss per share, basic and diluted | 142,366 | 134,636 | 140,559 | 133,044 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | ||
Statement Of Income And Comprehensive Income [Abstract] | |||||
Net loss | $ (40,196) | $ (42,924) | $ (114,918) | $ (122,295) | |
Changes in foreign currency translation adjustment | [1] | (89) | (88) | (375) | 90 |
Comprehensive loss | $ (40,285) | $ (43,012) | $ (115,293) | $ (122,205) | |
[1] | Tax effect was not material |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | Jan. 31, 2018 | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net loss | $ (40,196) | $ (42,924) | $ (114,918) | $ (122,295) | |||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation and amortization | 11,433 | 9,913 | 34,677 | 29,250 | |||
Stock-based compensation expense | 31,790 | 25,523 | 89,086 | 72,536 | |||
Amortization of deferred commissions | 4,516 | 5,393 | 12,231 | 15,751 | |||
Loss on disposal of property and equipment | 586 | 586 | |||||
Other | (18) | (124) | (13) | (83) | |||
Changes in operating assets and liabilities: | |||||||
Accounts receivable, net | 9,065 | 12,023 | 57,001 | 24,245 | |||
Deferred commissions | (9,753) | (4,616) | (23,057) | (13,235) | |||
Prepaid expenses and other assets | 350 | 2,746 | [1] | (4,583) | (3,197) | [1] | |
Accounts payable | 959 | (2,592) | (246) | 4,469 | |||
Accrued expenses and other liabilities | (1,552) | (4,828) | (17,156) | (8,721) | |||
Deferred rent | (88) | 1,413 | 249 | 3,132 | |||
Deferred revenue | (276) | 12,167 | (9,868) | 11,022 | |||
Net cash provided by operating activities | 6,816 | 14,094 | [1] | 23,989 | 12,874 | [1] | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Purchases of property and equipment | (5,247) | (3,003) | (12,613) | (4,800) | |||
Capitalized internal-use software costs | (1,343) | (1,343) | |||||
Proceeds from sale of property and equipment | 1 | 2 | 2 | 31 | |||
Acquisitions | (458) | ||||||
Net cash used in investing activities | (6,589) | (3,001) | (14,412) | (4,769) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Proceeds from exercise of stock options | 2,145 | 4,002 | 14,976 | 9,415 | |||
Proceeds from issuances of common stock under employee stock purchase plan | 10,015 | 8,640 | 21,861 | 17,521 | |||
Employee payroll taxes paid related to net share settlement of restricted stock units | (11,596) | (11,284) | (36,901) | (26,219) | |||
Acquisition related contingent consideration | (991) | ||||||
Payments of capital lease obligations | (4,290) | (4,781) | (17,192) | (12,693) | |||
Net cash used in financing activities | (3,726) | (3,423) | (17,256) | (12,967) | |||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (123) | (88) | (405) | 90 | |||
Net (decrease) increase in cash, cash equivalents, and restricted cash | (3,622) | 7,582 | [1] | (8,084) | (4,772) | [1] | |
Cash, cash equivalents, and restricted cash, beginning of period | 203,964 | 191,818 | 208,426 | 204,172 | $ 204,172 | ||
Cash, cash equivalents, and restricted cash, end of period | 200,342 | 199,400 | 200,342 | 199,400 | 208,426 | ||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||||||
Cash paid for interest, net of amounts capitalized | 623 | 527 | 1,795 | 1,416 | |||
Cash paid for income taxes, net of tax refunds | 501 | 425 | 1,493 | 1,158 | |||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES: | |||||||
Change in accrued equipment purchases | 5,115 | 1,714 | 2,938 | 2,604 | |||
Purchases of property and equipment under capital lease | 9,230 | 6,194 | 27,751 | 21,875 | |||
Change in unpaid tax related to capital lease | 253 | 160 | 488 | 595 | |||
Issuance of common stock in connection with acquisitions | 1,053 | ||||||
Contingent consideration accruals in connection with acquisitions | 936 | ||||||
Timing of settlement of stock options exercise | 520 | 520 | |||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH INFORMATION: | |||||||
Cash and cash equivalents, beginning of period | 203,726 | 165,275 | 208,076 | 177,391 | 177,391 | ||
Restricted cash, beginning of period | 238 | 26,543 | 350 | 26,781 | 26,781 | ||
Cash, cash equivalents, and restricted cash, beginning of period | 203,964 | 191,818 | 208,426 | 204,172 | 204,172 | ||
Cash and cash equivalents, end of period | 200,104 | 172,857 | 200,104 | 172,857 | 208,076 | ||
Restricted cash, end of period | 238 | 26,543 | 238 | 26,543 | 350 | ||
Cash, cash equivalents, and restricted cash, end of period | $ 200,342 | $ 199,400 | $ 200,342 | $ 199,400 | $ 208,426 | ||
[1] | Adjusted due to the adoption of ASU 2016-18 |
Description of Business and Bas
Description of Business and Basis of Presentation | 9 Months Ended |
Oct. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Note 1. Description of Business and Basis of Presentation Description of Business We were incorporated in the state of Washington in April 2005, and were reincorporated in the state of Delaware in March 2008. We changed our name from Box.Net, Inc. to Box, Inc. in November 2011. Box provides a leading cloud content management platform that enables organizations of all sizes to securely manage 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 October 31, 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 and nine months ended October 31, 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 Use of Estimates , 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 nine months ended October 31, 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 October 31, 2018, and our results of operations, including our comprehensive loss, and our cash flows for the three and nine months ended October 31, 2018 and 2017. All adjustments are of a normal recurring nature. The results for the three and nine months ended October 31, 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 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, observable price changes of , In accordance with our property and equipment policy, we review the estimated useful lives of our fixed assets on an ongoing basis. The most recent review indicated that the actual lives of certain furniture and fixtures were longer than previously estimated useful lives used for depreciation purposes in our financial statements. As a result, effective September 1, 2018, we changed the estimated useful lives of certain furniture and fixtures to better reflect the estimated periods during which these assets will remain in service. The estimated useful lives of these assets previously depreciated for three years have now been increased to five years. This change was made prospectively for all existing furniture and fixtures as of September 1, 2018 and will continue to apply to all future furniture and fixtures purchased thereafter. The effect of this change in estimate in the current period to net income and earnings per share was not material 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 deposit insurance coverage 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 October 31, 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 and nine months ended October 31, 2018. No single customer represented over 10% of revenue for the three and nine months ended October 31, 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 October 31, 2018, revenue attributable to customers in the United States and customers outside the United States was 75% and 25%, respectively. For the nine months ended October 31, 2018, revenue attributable to customers in the United States and customers outside the United States was 76% and 24%, respectively. For the three and nine months ended October 31, 2017, revenue attributable to customers in the United States and customers outside the United States was 79% and 21%, 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 October 31, 2018 and January 31, 2018, property and equipment located in the United States was 91% and 95%, respectively. Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09 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 accounts 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 commissions 17,589 $ (3,449 ) 14,140 Deferred commissions, 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 the adoption of ASC Topic 606. ** As of January 31, 2018, deferred commissions, 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 and nine months ended October 31, 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 and nine months ended October 31, 2018. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows: Restricted Cash As indicated in the table below, Three Months Ended October 31, 2017 Nine Months Ended October 31, 2017 As Reported Adjustments As Adjusted As Reported Adjustments As Adjusted Changes in operating assets and liabilities: Prepaid expenses and other assets* $ 2,746 $ — $ 2,746 $ (2,959 ) $ (238 ) $ (3,197 ) Net cash provided by operating activities 14,094 — 14,094 13,112 (238 ) 12,874 Net increase (decrease) in cash, cash equivalents, and restricted cash 7,582 — 7,582 (4,534 ) (238 ) (4,772 ) Cash, cash equivalents, and restricted cash, beginning of period 165,275 26,543 191,818 177,391 26,781 204,172 Cash, cash equivalents, and restricted cash, end of period 172,857 26,543 199,400 172,857 26,543 199,400 * Changes in restricted cash were included as part of prepaid expenses and other assets. 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 June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting In October 2016, the FASB issued ASU 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract with regards to internal-use software costs to reflect ASU 2018-15 under Summary of Significant Accounting Policies . R Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases, Codification Improvements to Topic 842, Leases, Leases – Targeted Improvements, Leases”, The new accounting guidance is effective for us beginning February 1, 2019; we have not elected to adopt this standard earlier. We currently anticipate adopting the standard using the modified retrospective method with an option to not restate comparative periods in the period of adoption. We are in the process of implementing changes to our systems, processes and controls, in conjunction with our review of existing lease agreements, in order to adopt the new standard in our first quarter of fiscal 2020. While we expect an increase to the reported assets and liabilities due to substantially all of our operating leases designated in “Note 7. Commitments and Contingencies” upon adoption, we have not yet determined the full impact that the adoption of this standard will have on our consolidated financial statements and related disclosures. 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, fair value of financial instruments, and internal-use software costs 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 are 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. ASC 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 Our other current financial assets have fair values which approximate their carrying value due to their short-term maturities. Internal-Use Software Costs We capitalize costs to develop software for internal use incurred during the application development stage. Costs related to preliminary project activities and post implementation activities are expensed as incurred. Once an application has reached the development stage, management has authorized and committed to the funding of the software project, it is probable the project will be completed and the software will be used to perform the function intended, internal and external costs are capitalized until the application is substantially complete and ready for its intended use. Capitalized qualifying costs are amortized on a straight-line basis when the software is ready for its intended use. We capitalize qualifying implementation costs incurred in a hosting arrangement that is a service contract based on the existing guidance for internal-use software, where external and internal costs incurred during the application development stage of implementation would generally be capitalized and costs during the preliminary project and post implementation stages would generally be expensed as incurred. We amortize capitalized qualifying implementation costs on a straight-line basis over the term of the associated hosting arrangement when the module or component of the hosting arrangement is ready for its intended use. The amortization of capitalized qualifying implementation cost is presented in the same line item as fees for the associated hosting arrangement in the condensed consolidated statements of operations. |
Revenue
Revenue | 9 Months Ended |
Oct. 31, 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 as of October 31, 2018 and statement of operations for the three and nine months ended October 31, 2018. There was no impact on the total cash provided by operating activities The following tables present the amount by which each condensed consolidated financial statement line item is affected as of and for the three and nine months ended October 31, 2018 by ASC Topic 606 (in thousands, except per share data): October 31, 2018 As Reported Balances without adoption of ASC Topic 606 Effect of Change ASSETS Accounts receivable* $ 105,714 $ 105,498 $ 216 Deferred commissions 18,772 14,912 3,860 Deferred commissions, non-current 47,379 6,658 40,721 LIABILITIES AND STOCKHOLDERS’ EQUITY Deferred revenue 281,289 282,491 (1,202 ) Deferred revenue, non-current 19,952 20,955 (1,003 ) Accumulated deficit (1,114,204 ) (1,161,206 ) 47,002 * Contract assets are reported as part of accounts receivable upon the adoption of ASC Topic 606. Three Months Ended October 31, 2018 Nine Months Ended October 31, 2018 As Reported Balances without adoption of ASC Topic 606 Effect of Change As Reported Balances without adoption of ASC Topic 606 Effect of Change Revenue $ 155,944 $ 158,454 $ (2,510 ) $ 444,673 $ 452,648 $ (7,975 ) Operating expenses: Sales and marketing 84,490 89,821 (5,331 ) 238,472 253,647 (15,175 ) Loss from operations (39,464 ) (42,285 ) 2,821 (112,543 ) (119,743 ) 7,200 Net loss (40,196 ) (43,017 ) 2,821 (114,918 ) (122,118 ) 7,200 Net loss per common share, basic and diluted $ (0.28 ) $ (0.30 ) $ 0.02 $ (0.82 ) $ (0.87 ) $ 0.05 Weighted-average shares used to compute net loss per share, basic and diluted 142,366 142,366 142,366 140,559 140,559 140,559 Three Months Ended October 31, 2018 Nine Months Ended October 31, 2018 As Reported Balances without adoption of ASC Topic 606 Effect of Change As Reported Balances without adoption of ASC Topic 606 Effect of Change CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (40,196 ) $ (43,017 ) $ 2,821 $ (114,918 ) $ (122,118 ) $ 7,200 Adjustments to reconcile net loss to net cash provided by operating activities: Amortization of deferred commissions 4,516 6,177 (1,661 ) 12,231 18,119 (5,888 ) Changes in operating assets and liabilities: Accounts receivable, net 9,065 9,124 (59 ) 57,001 56,635 366 Deferred commissions (9,753 ) (6,083 ) (3,670 ) (23,057 ) (13,770 ) (9,287 ) Deferred revenue (276 ) (2,845 ) 2,569 (9,868 ) (17,477 ) 7,609 Net cash provided by operating activities 6,816 6,816 — 23,989 23,989 — Contract Assets Contract assets, which are presented within accounts receivable, were $0.2 million as of October 31, 2018. Deferred Revenue Deferred revenue was $301.2 million as of October 31, 2018. $120.1 million of revenue was recognized during the three months ended October 31, 2018 Transaction Price Allocated to the Remaining Performance Obligations As of October 31, 2018, approximately $607.4 million of revenue is expected to be recognized from remaining performance obligations for subscription contracts. We expect to recognize revenue on 66% of these remaining performance obligations over the next 12 months, with the balance recognized thereafter. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 31, 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. Restricted cash in the form of certificates of deposits related to our leases |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Oct. 31, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | Note 4. Balance Sheet Components Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): October 31, January 31, 2018 2018 Prepaid expenses $ 11,652 $ 8,494 Other current assets 3,385 2,897 Total prepaid expenses and other current assets $ 15,037 $ 11,391 Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): October 31, January 31, 2018 2018 Servers $ 195,594 $ 170,422 Leasehold improvements 76,789 72,599 Computer hardware and software 19,711 14,558 Furniture and fixtures 13,625 14,254 Construction in progress 14,867 7,348 Total property and equipment 320,586 279,181 Less: accumulated depreciation (187,212 ) (155,204 ) Total property and equipment, net $ 133,374 $ 123,977 As of October 31, 2018, the gross carrying amount of property and equipment included $100.7 million of servers and $5.7 million of construction in progress acquired under capital leases, and the accumulated depreciation of property and equipment acquired under these capital leases was $47.1 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 $9.9 million for the three months ended October 31, 2018 and 2017, respectively, and $34.7 million and $28.8 million for the nine months ended October 31, 2018 and 2017, respectively. Included in these amounts was depreciation expense for servers acquired under capital leases in the amount of $6.6 million and $4.9 million for the three months ended October 31, 2018 and 2017, respectively and $19.0 million and $13.3 million for nine months ended October 31, 2018 and 2017, respectively. Construction in progress primarily consists of servers and networking equipment and storage infrastructure being provisioned in our datacenter facilities. Other Long-term Assets Other long-term assets consisted of the following (in thousands): October 31, January 31, 2018 2018 Deposits, non-current $ 2,593 $ 2,934 Other assets, non-current 4,936 2,469 Other long-term assets $ 7,529 $ 5,403 Internal-Use Software Costs As of October 31, 2018, we capitalized $1.3 million in qualifying costs to develop software for internal use As of October 31, 2018 , we capitalized $1.6 million in qualifying implementation costs incurred in a hosting arrangement that is a service contract, which is presented in the same line item as prepayment of the fees for the associated hosting arrangement in the condensed consolidated balance sheets. There were no material qualifying costs as of January 31, 2018. The amortization of the capitalized implementation cost is not material for any of the periods presented. |
Business Combinations
Business Combinations | 9 Months Ended |
Oct. 31, 2018 | |
Business Combinations [Abstract] | |
Business Combinations | Note 5. Business Combinations Other Business Combinations and Similar Transactions During fiscal year 2019, we entered into agreements to hire certain employees from three privately-held technology companies for total aggregate consideration of $2.4 million paid in a mix of cash and shares of our Class A common stock. We accounted for these transactions as business combinations. The entire consideration for these transactions was allocated to goodwill. Goodwill is primarily attributable to the enhancement of the Box user experience and the value of hired personnel Results of operations for these business combinations have been included in our condensed consolidated statements of operations subsequent to the transaction completion date and were not material. Pro forma results of operations for these transactions have not been presented because they were also not material to the consolidated results of operations. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Oct. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 6. Goodwill and Intangible Assets Goodwill There was no goodwill activity for the three months ended October 31, 2018. Goodwill activity for the nine months ended October 31, 2018 is reflected in the following table (in thousands): Balance as of January 31, 2018 $ 16,293 Goodwill acquired 2,447 Balance as of October 31, 2018 $ 18,740 Intangible Assets We have not incurred any intangible amortization expense for the three months ended October 31, 2018, as all intangible assets were fully amortized as of July 31, 2018. Intangible amortization expense was not material for the nine months ended October 31, 2018. For the three and nine months ended October 31, 2017, intangible amortization expense was not material. Amortization of acquired technology is included in cost of revenue and amortization for trade names is included in general and administrative expenses in the condensed consolidated statements of operations. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 7. Commitments and Contingencies Letters of Credit As of October 31, 2018 and January 31, 2018, we had letters of credit in the aggregate amount of $26.8 million and $26.4 million, respectively, 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 8 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 2020 and 2029. Certain of these arrangements have free or escalating rent payment provisions and optional renewal clauses. We are also committed to pay a portion of the actual operating expenses under certain of these lease agreements. These operating expenses are not included in the table below. We also entered into various capital lease arrangements to obtain servers and related equipment for our operations. These agreements typically have an initial term of three to four years. The leases are secured by the underlying leased servers and related equipment. As of October 31, 2018, future minimum lease payments under non-cancellable capital and operating leases are as follows (in thousands): Years ending January 31: Capital Leases Operating Leases, Sublease Income Remainder of 2019 $ 8,799 $ 8,764 2020 21,979 35,221 2021 17,794 35,907 2022 9,740 34,146 2023 2,376 26,361 Thereafter — 142,922 Total minimum lease payments $ 60,688 $ 283,321 Less: amount representing interest (2,438 ) Present value of minimum lease payments $ 58,250 We sublease certain floors of our Redwood City, San 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 October 31, 2018 and January 31, 2018. We recognize rent expense under our operating leases on a straight-line basis. Rent expense totaled $8.8 million and $8.1 million, net of sublease income of $1.8 million and $1.9 million for the three months ended October 31, 2018 and 2017, respectively, and rent expense totaled $25.4 million and $20.3 million, net of sublease income of $5.7 million and $5.6 million for the nine months ended October 31, 2018 and 2017, respectively. Purchase Obligations As of October 31, 2018, future payments under non-cancellable contractual purchases, which relate primarily to infrastructure services, datacenter operations, and sales and marketing activities, are as follows (in thousands): Years ending January 31: Remainder of 2019 $ 10,761 2020 47,478 2021 12,267 2022 2,280 2023 1,315 Thereafter 694 $ 74,795 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 October 31, 2018. Indemnification We include service level commitments to our customers warranting certain levels of uptime reliability and performance and permitting those customers to receive credits in the event that we fail to meet those levels. In addition, our customer contracts often include (i) specific obligations that we maintain the availability of the customer’s data through our service and that we secure customer content against unauthorized access or loss, and (ii) indemnity provisions whereby we indemnify our customers for third-party claims asserted against them that result from our failure to maintain the availability of their content or securing the same from unauthorized access or loss. To date, we have not incurred any material costs as a result of such commitments Our arrangements generally include certain provisions for indemnifying customers against liabilities if our products or services infringe a third party’s intellectual property rights. It is not possible to determine the maximum potential amount under these indemnification obligations due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. To date, we have not incurred any material costs as a result of such obligations and have not accrued any material liabilities related to such obligations 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 | 9 Months Ended |
Oct. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Note 8. Debt Line of Credit In December 2015, we entered into a revolving credit facility (December 2015 Facility), which provided for a revolving loan facility in the amount of up to $40.0 million originally maturing in December 2017. In February 2017, we amended the December 2015 Facility to extend the maturity date to December 2018. On November 27, 2017, we 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. 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 7 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 October 31, 2018, we were in compliance In connection with the above credit facilities, for the three and nine months ended October 31, 2018 and 2017, interest expense, net of capitalized interest costs, was not material. 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 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Oct. 31, 2018 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | Note 9. Stockholders’ Equity Material modification of rights of security holders On June 14, 2018, all of our outstanding shares of Class B common stock automatically converted into the same number of shares of Class A common stock pursuant to the terms of our Amended and Restated Certificate of Incorporation. No additional shares of Class B common stock will be issued following such conversion. The conversion occurred pursuant to Article IV of the Amended and Restated Certificate of Incorporation, which provided that each one share of Class B common stock would convert automatically, without any further action, into one share of Class A common stock on the first trading day falling on or after the date on which the outstanding shares of Class B common stock represent less than 5% of the aggregate number of shares of the then outstanding Class A common stock and Class B common stock. On June 15, 2018, we filed a certificate with the Secretary of State of the State of Delaware effecting the retirement and cancellation of our Class B common stock. This certificate of retirement had the additional effect of eliminating the authorized Class B common stock, thereby reducing the total number of our authorized shares of common stock by 200,000,000. Our Class A and Class B common stock are referred to as common stock throughout the notes to the financial statements, unless otherwise noted. After June 14, 2018, common stock refers to our Class A common stock. Common stock As of October 31, 2018, we had authorized 1,000,000,000 shares of Class A common stock, par value of $0.0001 per share. As of January 31, 2018, we had authorized 1,000,000,000 shares of Class A common stock and 200,000,000 shares of Class B common stock, each at par value of $0.0001 per share. As of January 31, 2018, 125,933,323 shares of Class A common stock and 11,383,525 shares of Class B common stock were issued and outstanding. Preferred stock As of October 31, 2018 and January 31, 2018, we had authorized 100,000,000 shares of undesignated preferred stock, par value of $0.0001 per share. No shares issued and outstanding in the same respective periods. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Oct. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 10. Stock-Based Compensation 2015 Equity Incentive Plan In January 2015, our board of directors adopted the 2015 Equity Incentive Plan (2015 Plan), which became effective prior to the completion of our 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 October 31, 2018, 1,957,913 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 717,658 20.78 Options exercised (1,745,370 ) 8.58 Options forfeited/cancelled (461,801 ) 14.10 Balance as of October 31, 2018 9,353,607 $ 8.94 5.20 $ 87,143 Vested and expected to vest as of October 31, 2018 9,281,847 $ 8.87 5.17 $ 87,071 Exercisable as of October 31, 2018 7,788,714 $ 7.04 4.50 $ 85,578 The aggregate intrinsic value of options vested and expected to vest and exercisable as of October 31, 2018 is calculated based on the difference between the exercise price and the current fair value of our common stock. The aggregate intrinsic value of exercised options for the nine months ended October 31, 2018 and 2017 was $27.5 million and $18.8 million, respectively. The aggregate estimated fair value of stock options granted to employees that vested for the nine months ended October 31, 2018 and 2017 was $5.6 million and $7.2 million, respectively. The weighted-average grant date fair value of options granted to employees during the nine months ended October 31, 2018 and 2017 was $8.24 and $7.04 per share, respectively. As of October 31, 2018, there was $9.0 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 2.59 years. Out of the total unrecognized stock-based compensation expense, as of October 31, 2018, $3.8 million related to outstanding performance-based stock option, based on the probable market-based performance goals and service condition at that date, which is expected to be recognized over a weighted-average period of 3.29 years. Performance-Based Stock Options In April 2017, the compensation committee of our board of directors approved and granted 475,000 performance-based stock options under the 2015 Plan to certain executive officers where vesting is subject to both the continued employment of the participant and the achievement of market-based performance goals established by the compensation committee. Subject to both the continued employment of the participant and the achievement of market-based performance goals established by the compensation committee, 25% of the performance-based options vest one year from the vesting commencement date, and 1/48th continue to vest each month thereafter. The total amount of compensation expense recognized is based on the number of shares that we determine are probable of vesting and is recognized over the vesting term of the awards. Of the 475,000 performance-based stock options, 250,000 were forfeited in connection with a participant’s resignation of employment during the three months ended October 31, 2017. During fiscal year 2019, the market-based performance goals were met. The performance-based stock options are vesting based on the continued employment of the participant. The grant date fair value of these awards was determined using a Monte Carlo valuation model and the related stock-based compensation expense is recognized based on an accelerated attribution method. 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 both the continued employment of the participant and the achievement of market-based performance goals established by the compensation committee, 25% of the performance-based options vest one year from the vesting commencement date, and 1/48th continue to vest each month thereafter. The total amount of compensation expense recognized is based on the number of shares that we determine are probable of vesting and is recognized over the vesting term of the awards. As of October 31, 2018, the market-based performance goals were not met. The grant date fair value of these awards was determined using a Monte Carlo valuation model and the related stock-based compensation expense is recognized based on an accelerated attribution method. 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 9,298,770 22.58 Vested, net of shares withheld for employee payroll taxes (2,656,081 ) 16.51 Forfeited/cancelled (2,922,723 ) 17.41 Unvested balance - October 31, 2018 18,339,218 $ 19.38 As of October 31, 2018, there was $273.1 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 3.08 years. 2015 ESPP As of October 31, 2018, there was $16.8 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 Nine Months Ended October 31, October 31, 2018 2017 2018 2017 Cost of revenue $ 3,598 $ 2,814 $ 10,280 $ 7,945 Research and development 12,043 9,705 33,668 28,419 Sales and marketing 9,708 8,208 27,701 23,882 General and administrative 6,441 4,796 17,437 12,290 Total stock-based compensation $ 31,790 $ 25,523 $ 89,086 $ 72,536 Determination of Fair Value We estimated the fair value of employee stock options and 2015 ESPP purchase rights using a Black-Scholes option pricing model with the following assumptions. Three Months Ended Nine Months Ended October 31, October 31, 2018 2017 2018 2017 Employee Stock Options Expected term (in years) 5.8 6.1 5.5 - 5.8 5.5 - 6.1 Risk-free interest rate 3.1% 2.0% 2.8% - 3.1% 1.8% - 2.1% Volatility 45% 39% 45% 38% - 40% Dividend yield 0% 0% 0% 0% Employee Stock Purchase Plan Expected term (in years) 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 Risk-free interest rate 2.3% - 2.8% 1.2% - 1.4% 2.0% - 2.8% 0.9% - 1.4% Volatility 40% - 48% 29% - 40% 37% - 50% 28% - 43% Dividend yield 0% 0% 0% 0% The assumptions used in the Black-Scholes option pricing model were determined as follows: Fair Value of Common Stock . 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 Class A 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 | 9 Months Ended |
Oct. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Note 11. Net Loss per Share On June 14, 2018, all of our outstanding shares of Class B common stock automatically converted into the same number of shares of Class A common stock pursuant to the terms of our Amended and Restated Certificate of Incorporation. No additional shares of Class B common stock will be issued following such conversion. Refer to Note 9 for additional details related to the conversion of Class B common stock. For periods where there were Class B shares outstanding, 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 October 31, 2018 2017 Class A Class B Class A Class B Numerator: Net loss $ (40,196 ) $ — $ (35,061 ) $ (7,863 ) Denominator: Weighted-average number of shares outstanding—basic and diluted 142,366 — 109,972 24,664 Net loss per share—basic and diluted $ (0.28 ) $ — $ (0.32 ) $ (0.32 ) Nine Months Ended October 31, 2018 2017 Class A Class B Class A Class B Numerator: Net loss $ (110,868 ) $ (4,050 ) $ (84,998 ) $ (37,297 ) Denominator: Weighted-average number of shares outstanding—basic and diluted 135,605 4,954 92,469 40,575 Net loss per share—basic and diluted $ (0.82 ) $ (0.82 ) $ (0.92 ) $ (0.92 ) 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 October 31, Nine Months Ended October 31, 2018 2017 2018 2017 Options to purchase common stock 9,488 11,997 10,026 12,094 Restricted stock units 14,791 13,962 14,474 13,382 Employee stock purchase plan 1,679 1,845 1,131 3,437 Repurchasable shares from early-exercised options and unvested restricted stock — 164 — 206 Contingently issuable common stock — 52 — 55 25,958 28,020 25,631 29,174 |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 12. 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. Our initial accounting for the transition tax was not complete as of January 31, 2018 because there was uncertainty regarding the calculation of the amounts subject to the tax. We completed our analysis of the transition tax and related interpretive guidance during the third quarter of fiscal year 2019. No significant measurement period adjustment to our initial accounting was required. We will continue to evaluate the remaining provisional amounts recorded for the year ended January 31, 2019 throughout the remainder of the measurement period. 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 | 9 Months Ended |
Oct. 31, 2018 | |
Segment Reporting [Abstract] | |
Segments | Note 13. Segments Our chief operating decision maker reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. As such, we have a single reporting segment and operating unit structure. Since we operate in one operating segment, all required segment information can be found in the condensed consolidated financial statements. |
Description of Business and B_2
Description of Business and Basis of Presentation (Policies) | 9 Months Ended |
Oct. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated balance sheet as of October 31, 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 and nine months ended October 31, 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 Use of Estimates , 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 nine months ended October 31, 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 October 31, 2018, and our results of operations, including our comprehensive loss, and our cash flows for the three and nine months ended October 31, 2018 and 2017. All adjustments are of a normal recurring nature. The results for the three and nine months ended October 31, 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 |
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, observable price changes of , In accordance with our property and equipment policy, we review the estimated useful lives of our fixed assets on an ongoing basis. The most recent review indicated that the actual lives of certain furniture and fixtures were longer than previously estimated useful lives used for depreciation purposes in our financial statements. As a result, effective September 1, 2018, we changed the estimated useful lives of certain furniture and fixtures to better reflect the estimated periods during which these assets will remain in service. The estimated useful lives of these assets previously depreciated for three years have now been increased to five years. This change was made prospectively for all existing furniture and fixtures as of September 1, 2018 and will continue to apply to all future furniture and fixtures purchased thereafter. The effect of this change in estimate in the current period to net income and earnings per share was not material |
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 deposit insurance coverage 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 October 31, 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 and nine months ended October 31, 2018. No single customer represented over 10% of revenue for the three and nine months ended October 31, 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 October 31, 2018, revenue attributable to customers in the United States and customers outside the United States was 75% and 25%, respectively. For the nine months ended October 31, 2018, revenue attributable to customers in the United States and customers outside the United States was 76% and 24%, respectively. For the three and nine months ended October 31, 2017, revenue attributable to customers in the United States and customers outside the United States was 79% and 21%, 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 October 31, 2018 and January 31, 2018, property and equipment located in the United States was 91% and 95%, respectively. |
Recently Adopted and Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09 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 accounts 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 commissions 17,589 $ (3,449 ) 14,140 Deferred commissions, 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 the adoption of ASC Topic 606. ** As of January 31, 2018, deferred commissions, 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 and nine months ended October 31, 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 and nine months ended October 31, 2018. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows: Restricted Cash As indicated in the table below, Three Months Ended October 31, 2017 Nine Months Ended October 31, 2017 As Reported Adjustments As Adjusted As Reported Adjustments As Adjusted Changes in operating assets and liabilities: Prepaid expenses and other assets* $ 2,746 $ — $ 2,746 $ (2,959 ) $ (238 ) $ (3,197 ) Net cash provided by operating activities 14,094 — 14,094 13,112 (238 ) 12,874 Net increase (decrease) in cash, cash equivalents, and restricted cash 7,582 — 7,582 (4,534 ) (238 ) (4,772 ) Cash, cash equivalents, and restricted cash, beginning of period 165,275 26,543 191,818 177,391 26,781 204,172 Cash, cash equivalents, and restricted cash, end of period 172,857 26,543 199,400 172,857 26,543 199,400 * Changes in restricted cash were included as part of prepaid expenses and other assets. 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 June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting In October 2016, the FASB issued ASU 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract with regards to internal-use software costs to reflect ASU 2018-15 under Summary of Significant Accounting Policies . R Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases, Codification Improvements to Topic 842, Leases, Leases – Targeted Improvements, Leases”, The new accounting guidance is effective for us beginning February 1, 2019; we have not elected to adopt this standard earlier. We currently anticipate adopting the standard using the modified retrospective method with an option to not restate comparative periods in the period of adoption. We are in the process of implementing changes to our systems, processes and controls, in conjunction with our review of existing lease agreements, in order to adopt the new standard in our first quarter of fiscal 2020. While we expect an increase to the reported assets and liabilities due to substantially all of our operating leases designated in “Note 7. Commitments and Contingencies” upon adoption, we have not yet determined the full impact that the adoption of this standard will have on our consolidated financial statements and related disclosures. 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, fair value of financial instruments, and internal-use software costs 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 are 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. ASC 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 Our other current financial assets have fair values which approximate their carrying value due to their short-term maturities. |
Internal-Use Software Costs | Internal-Use Software Costs We capitalize costs to develop software for internal use incurred during the application development stage. Costs related to preliminary project activities and post implementation activities are expensed as incurred. Once an application has reached the development stage, management has authorized and committed to the funding of the software project, it is probable the project will be completed and the software will be used to perform the function intended, internal and external costs are capitalized until the application is substantially complete and ready for its intended use. Capitalized qualifying costs are amortized on a straight-line basis when the software is ready for its intended use. We capitalize qualifying implementation costs incurred in a hosting arrangement that is a service contract based on the existing guidance for internal-use software, where external and internal costs incurred during the application development stage of implementation would generally be capitalized and costs during the preliminary project and post implementation stages would generally be expensed as incurred. We amortize capitalized qualifying implementation costs on a straight-line basis over the term of the associated hosting arrangement when the module or component of the hosting arrangement is ready for its intended use. The amortization of capitalized qualifying implementation cost is presented in the same line item as fees for the associated hosting arrangement in the condensed consolidated statements of operations. |
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 Class A 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 B_3
Description of Business and Basis of Presentation (Tables) | 9 Months Ended |
Oct. 31, 2018 | |
Accounting Standards Update 2014-09 | |
Schedule of Effect of Adoption on Condensed Consolidated Financial Statements | The following table summarizes the adjustments made to accounts 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 commissions 17,589 $ (3,449 ) 14,140 Deferred commissions, 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 the adoption of ASC Topic 606. ** As of January 31, 2018, deferred commissions, 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. |
Accounting Standards Update 2016-18 | |
Schedule of Effect of Adoption on Condensed Consolidated Financial Statements | As indicated in the table below, Three Months Ended October 31, 2017 Nine Months Ended October 31, 2017 As Reported Adjustments As Adjusted As Reported Adjustments As Adjusted Changes in operating assets and liabilities: Prepaid expenses and other assets* $ 2,746 $ — $ 2,746 $ (2,959 ) $ (238 ) $ (3,197 ) Net cash provided by operating activities 14,094 — 14,094 13,112 (238 ) 12,874 Net increase (decrease) in cash, cash equivalents, and restricted cash 7,582 — 7,582 (4,534 ) (238 ) (4,772 ) Cash, cash equivalents, and restricted cash, beginning of period 165,275 26,543 191,818 177,391 26,781 204,172 Cash, cash equivalents, and restricted cash, end of period 172,857 26,543 199,400 172,857 26,543 199,400 * Changes in restricted cash were included as part of prepaid expenses and other assets. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Oct. 31, 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 and nine months ended October 31, 2018 by ASC Topic 606 (in thousands, except per share data): October 31, 2018 As Reported Balances without adoption of ASC Topic 606 Effect of Change ASSETS Accounts receivable* $ 105,714 $ 105,498 $ 216 Deferred commissions 18,772 14,912 3,860 Deferred commissions, non-current 47,379 6,658 40,721 LIABILITIES AND STOCKHOLDERS’ EQUITY Deferred revenue 281,289 282,491 (1,202 ) Deferred revenue, non-current 19,952 20,955 (1,003 ) Accumulated deficit (1,114,204 ) (1,161,206 ) 47,002 * Contract assets are reported as part of accounts receivable upon the adoption of ASC Topic 606. Three Months Ended October 31, 2018 Nine Months Ended October 31, 2018 As Reported Balances without adoption of ASC Topic 606 Effect of Change As Reported Balances without adoption of ASC Topic 606 Effect of Change Revenue $ 155,944 $ 158,454 $ (2,510 ) $ 444,673 $ 452,648 $ (7,975 ) Operating expenses: Sales and marketing 84,490 89,821 (5,331 ) 238,472 253,647 (15,175 ) Loss from operations (39,464 ) (42,285 ) 2,821 (112,543 ) (119,743 ) 7,200 Net loss (40,196 ) (43,017 ) 2,821 (114,918 ) (122,118 ) 7,200 Net loss per common share, basic and diluted $ (0.28 ) $ (0.30 ) $ 0.02 $ (0.82 ) $ (0.87 ) $ 0.05 Weighted-average shares used to compute net loss per share, basic and diluted 142,366 142,366 142,366 140,559 140,559 140,559 Three Months Ended October 31, 2018 Nine Months Ended October 31, 2018 As Reported Balances without adoption of ASC Topic 606 Effect of Change As Reported Balances without adoption of ASC Topic 606 Effect of Change CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (40,196 ) $ (43,017 ) $ 2,821 $ (114,918 ) $ (122,118 ) $ 7,200 Adjustments to reconcile net loss to net cash provided by operating activities: Amortization of deferred commissions 4,516 6,177 (1,661 ) 12,231 18,119 (5,888 ) Changes in operating assets and liabilities: Accounts receivable, net 9,065 9,124 (59 ) 57,001 56,635 366 Deferred commissions (9,753 ) (6,083 ) (3,670 ) (23,057 ) (13,770 ) (9,287 ) Deferred revenue (276 ) (2,845 ) 2,569 (9,868 ) (17,477 ) 7,609 Net cash provided by operating activities 6,816 6,816 — 23,989 23,989 — |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Oct. 31, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands): October 31, January 31, 2018 2018 Prepaid expenses $ 11,652 $ 8,494 Other current assets 3,385 2,897 Total prepaid expenses and other current assets $ 15,037 $ 11,391 |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): October 31, January 31, 2018 2018 Servers $ 195,594 $ 170,422 Leasehold improvements 76,789 72,599 Computer hardware and software 19,711 14,558 Furniture and fixtures 13,625 14,254 Construction in progress 14,867 7,348 Total property and equipment 320,586 279,181 Less: accumulated depreciation (187,212 ) (155,204 ) Total property and equipment, net $ 133,374 $ 123,977 |
Schedule of Other Long-Term Assets | Other long-term assets consisted of the following (in thousands): October 31, January 31, 2018 2018 Deposits, non-current $ 2,593 $ 2,934 Other assets, non-current 4,936 2,469 Other long-term assets $ 7,529 $ 5,403 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Oct. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill Activity | Goodwill activity for the nine months ended October 31, 2018 is reflected in the following table (in thousands): Balance as of January 31, 2018 $ 16,293 Goodwill acquired 2,447 Balance as of October 31, 2018 $ 18,740 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Oct. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments under Non-cancellable Capital and Operating Leases | As of October 31, 2018, future minimum lease payments under non-cancellable capital and operating leases are as follows (in thousands): Years ending January 31: Capital Leases Operating Leases, Sublease Income Remainder of 2019 $ 8,799 $ 8,764 2020 21,979 35,221 2021 17,794 35,907 2022 9,740 34,146 2023 2,376 26,361 Thereafter — 142,922 Total minimum lease payments $ 60,688 $ 283,321 Less: amount representing interest (2,438 ) Present value of minimum lease payments $ 58,250 |
Future Payments under Non-cancellable Contractual Purchases | As of October 31, 2018, future payments under non-cancellable contractual purchases, which relate primarily to infrastructure services, datacenter operations, and sales and marketing activities, are as follows (in thousands): Years ending January 31: Remainder of 2019 $ 10,761 2020 47,478 2021 12,267 2022 2,280 2023 1,315 Thereafter 694 $ 74,795 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Oct. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity Under Equity Incentive Plans and Related Information | The following table summarizes the stock option activity under the equity incentive plans and related information: Shares Weighted-Average Weighted- Remaining Average Exercise Contractual Life Aggregate Shares Price (Years) Intrinsic Value (in thousands) Balance as of January 31, 2018 10,843,120 $ 8.32 5.74 $ 150,922 Options granted 717,658 20.78 Options exercised (1,745,370 ) 8.58 Options forfeited/cancelled (461,801 ) 14.10 Balance as of October 31, 2018 9,353,607 $ 8.94 5.20 $ 87,143 Vested and expected to vest as of October 31, 2018 9,281,847 $ 8.87 5.17 $ 87,071 Exercisable as of October 31, 2018 7,788,714 $ 7.04 4.50 $ 85,578 |
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 9,298,770 22.58 Vested, net of shares withheld for employee payroll taxes (2,656,081 ) 16.51 Forfeited/cancelled (2,922,723 ) 17.41 Unvested balance - October 31, 2018 18,339,218 $ 19.38 |
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 Nine Months Ended October 31, October 31, 2018 2017 2018 2017 Cost of revenue $ 3,598 $ 2,814 $ 10,280 $ 7,945 Research and development 12,043 9,705 33,668 28,419 Sales and marketing 9,708 8,208 27,701 23,882 General and administrative 6,441 4,796 17,437 12,290 Total stock-based compensation $ 31,790 $ 25,523 $ 89,086 $ 72,536 |
Summary of Estimated Fair Value of Employee Stock Options | We estimated the fair value of employee stock options and 2015 ESPP purchase rights using a Black-Scholes option pricing model with the following assumptions. Three Months Ended Nine Months Ended October 31, October 31, 2018 2017 2018 2017 Employee Stock Options Expected term (in years) 5.8 6.1 5.5 - 5.8 5.5 - 6.1 Risk-free interest rate 3.1% 2.0% 2.8% - 3.1% 1.8% - 2.1% Volatility 45% 39% 45% 38% - 40% Dividend yield 0% 0% 0% 0% Employee Stock Purchase Plan Expected term (in years) 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 Risk-free interest rate 2.3% - 2.8% 1.2% - 1.4% 2.0% - 2.8% 0.9% - 1.4% Volatility 40% - 48% 29% - 40% 37% - 50% 28% - 43% Dividend yield 0% 0% 0% 0% |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Oct. 31, 2018 | |
Earnings Per Share [Abstract] | |
Summary of Computation of Basic and Diluted Net Loss Per Share | The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share amounts): Three Months Ended October 31, 2018 2017 Class A Class B Class A Class B Numerator: Net loss $ (40,196 ) $ — $ (35,061 ) $ (7,863 ) Denominator: Weighted-average number of shares outstanding—basic and diluted 142,366 — 109,972 24,664 Net loss per share—basic and diluted $ (0.28 ) $ — $ (0.32 ) $ (0.32 ) Nine Months Ended October 31, 2018 2017 Class A Class B Class A Class B Numerator: Net loss $ (110,868 ) $ (4,050 ) $ (84,998 ) $ (37,297 ) Denominator: Weighted-average number of shares outstanding—basic and diluted 135,605 4,954 92,469 40,575 Net loss per share—basic and diluted $ (0.82 ) $ (0.82 ) $ (0.92 ) $ (0.92 ) |
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 October 31, Nine Months Ended October 31, 2018 2017 2018 2017 Options to purchase common stock 9,488 11,997 10,026 12,094 Restricted stock units 14,791 13,962 14,474 13,382 Employee stock purchase plan 1,679 1,845 1,131 3,437 Repurchasable shares from early-exercised options and unvested restricted stock — 164 — 206 Contingently issuable common stock — 52 — 55 25,958 28,020 25,631 29,174 |
Description of Business and B_4
Description of Business and Basis of Presentation - Additional Information (Details) | Nov. 29, 2017USD ($) | Oct. 31, 2018USD ($)Customer | Oct. 31, 2017USD ($)Customer | Oct. 31, 2018USD ($)Customer | Oct. 31, 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 | $ 6,816,000 | $ 14,094,000 | [1] | $ 23,989,000 | $ 12,874,000 | [1] | |||
Release and decrease of restricted cash | $ (26,100,000) | ||||||||
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] | |||||||||
Net cash provided by (used in) operating activities | $ 14,094,000 | 12,874,000 | $ 35,400,000 | $ (2,400,000) | |||||
Release and decrease of restricted cash | $ (200,000) | ||||||||
Accounting Standards Update 2016-01 | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||
Impairment adjustment on investments | 0 | $ 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 | $ 100,000 | |||||||
Credit Concentration Risk | Accounts Receivable | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||
Number of major customers | Customer | 1 | 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 customers | Customer | 1 | 0 | 1 | 0 | |||||
Concentration risk percentage | 10.00% | 10.00% | 10.00% | 10.00% | |||||
Geographic Concentration Risk | Revenue | Non-U.S. | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||
Concentration risk percentage | 25.00% | 21.00% | 24.00% | 21.00% | |||||
Geographic Concentration Risk | Revenue | United States | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||
Concentration risk percentage | 75.00% | 79.00% | 76.00% | 79.00% | |||||
Geographic Concentration Risk | Property and Equipment | United States | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||
Concentration risk percentage | 91.00% | 95.00% | |||||||
Previously Reported | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||
Net cash provided by (used in) operating activities | $ 14,094,000 | $ 13,112,000 | $ 61,800,000 | $ (1,200,000) | |||||
Furniture and Fixtures | Service Life | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||
Property and equipment, estimated useful lives | 5 years | ||||||||
Furniture and Fixtures | Previously Reported | Service Life | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||
Property and equipment, estimated useful lives | 3 years | ||||||||
[1] | Adjusted due to the adoption of ASU 2016-18 |
Description of Business and B_5
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 | Oct. 31, 2018 | Feb. 01, 2018 | Jan. 31, 2018 | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Accounts receivable | [1] | $ 105,714 | $ 162,133 | ||
Deferred commissions | 18,772 | 17,589 | |||
Deferred commissions, non-current | 47,379 | 8,330 | [2] | ||
Deferred revenue | 281,289 | 291,902 | |||
Deferred revenue, non-current | 19,952 | 29,021 | |||
Accumulated deficit | $ (1,114,204) | $ (1,039,088) | |||
Accounting Standards Update 2014-09 | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Accounts receivable | [1] | $ 162,715 | |||
Deferred commissions | 14,140 | ||||
Deferred commissions, 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 commissions | (3,449) | ||||
Deferred commissions, non-current | [2] | 32,855 | |||
Accumulated deficit | $ 29,406 | ||||
[1] | Contract assets are reported as part of accounts receivable upon the adoption of ASC Topic 606. | ||||
[2] | As of January 31, 2018, deferred commissions, 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. |
Description of Business and B_6
Description of Business and Basis of Presentation - Schedule of Decreases Cash Flows from Operating Activities Due to Adoption of ASU 2016-18 (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | Jan. 31, 2018 | Jan. 31, 2017 | ||||
Changes in operating assets and liabilities: | |||||||||
Prepaid expenses and other assets | $ 350 | $ 2,746 | [1] | $ (4,583) | $ (3,197) | [1] | |||
Net cash provided by operating activities | 6,816 | 14,094 | [1] | 23,989 | 12,874 | [1] | |||
Net increase (decrease) in cash, cash equivalents, and restricted cash | (3,622) | 7,582 | [1] | (8,084) | (4,772) | [1] | |||
Cash, cash equivalents, and restricted cash, beginning of period | 203,964 | 191,818 | 208,426 | 204,172 | $ 204,172 | ||||
Cash, cash equivalents, and restricted cash, end of period | $ 200,342 | 199,400 | $ 200,342 | 199,400 | 208,426 | $ 204,172 | |||
As Reported | |||||||||
Changes in operating assets and liabilities: | |||||||||
Prepaid expenses and other assets | [2] | 2,746 | (2,959) | ||||||
Net cash provided by operating activities | 14,094 | 13,112 | 61,800 | (1,200) | |||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 7,582 | (4,534) | |||||||
Cash, cash equivalents, and restricted cash, beginning of period | 165,275 | 177,391 | 177,391 | ||||||
Cash, cash equivalents, and restricted cash, end of period | 172,857 | 172,857 | 177,391 | ||||||
Accounting Standards Update 2016-18 | |||||||||
Changes in operating assets and liabilities: | |||||||||
Prepaid expenses and other assets | [2] | 2,746 | (3,197) | ||||||
Net cash provided by operating activities | 14,094 | 12,874 | 35,400 | (2,400) | |||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 7,582 | (4,772) | |||||||
Cash, cash equivalents, and restricted cash, beginning of period | 191,818 | 204,172 | 204,172 | ||||||
Cash, cash equivalents, and restricted cash, end of period | 199,400 | 199,400 | 204,172 | ||||||
Accounting Standards Update 2016-18 | Adjustments | |||||||||
Changes in operating assets and liabilities: | |||||||||
Prepaid expenses and other assets | [2] | (238) | |||||||
Net cash provided by operating activities | (238) | ||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | (238) | ||||||||
Cash, cash equivalents, and restricted cash, beginning of period | 26,543 | 26,781 | $ 26,781 | ||||||
Cash, cash equivalents, and restricted cash, end of period | $ 26,543 | $ 26,543 | $ 26,781 | ||||||
[1] | Adjusted due to the adoption of ASU 2016-18 | ||||||||
[2] | Changes in restricted cash were included as part of prepaid expenses and other assets. |
Revenue - Financial Statement I
Revenue - Financial Statement Impact of ASC 606 (Balance Sheet) (Details) - USD ($) $ in Thousands | Oct. 31, 2018 | Jan. 31, 2018 | ||
ASSETS | ||||
Accounts receivable | [1] | $ 105,714 | $ 162,133 | |
Deferred commissions | 18,772 | 17,589 | ||
Deferred commissions, non-current | 47,379 | 8,330 | [2] | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Deferred revenue | 281,289 | 291,902 | ||
Deferred revenue, non-current | 19,952 | 29,021 | ||
Accumulated deficit | (1,114,204) | $ (1,039,088) | ||
Balances without adoption of ASC Topic 606 | Accounting Standards Update 2014-09 | ||||
ASSETS | ||||
Accounts receivable | [1] | 105,498 | ||
Deferred commissions | 14,912 | |||
Deferred commissions, non-current | 6,658 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Deferred revenue | 282,491 | |||
Deferred revenue, non-current | 20,955 | |||
Accumulated deficit | (1,161,206) | |||
Effect of Change | Accounting Standards Update 2014-09 | ||||
ASSETS | ||||
Accounts receivable | [1] | 216 | ||
Deferred commissions | 3,860 | |||
Deferred commissions, non-current | 40,721 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Deferred revenue | (1,202) | |||
Deferred revenue, non-current | (1,003) | |||
Accumulated deficit | $ 47,002 | |||
[1] | Contract assets are reported as part of accounts receivable upon the adoption of ASC Topic 606. | |||
[2] | As of January 31, 2018, deferred commissions, 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_2
Revenue - Financial Statement Impact of ASC 606 (Income Statement) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Revenue | $ 155,944 | $ 129,304 | $ 444,673 | $ 369,467 |
Operating expenses: | ||||
Sales and marketing | 84,490 | 81,670 | 238,472 | 225,604 |
Loss from operations | (39,464) | (42,559) | (112,543) | (121,534) |
Net loss | $ (40,196) | $ (42,924) | $ (114,918) | $ (122,295) |
Net loss per common share, basic and diluted | $ (0.28) | $ (0.32) | $ (0.82) | $ (0.92) |
Weighted-average shares used to compute net loss per share, basic and diluted | 142,366 | 134,636 | 140,559 | 133,044 |
Balances without adoption of ASC Topic 606 | Accounting Standards Update 2014-09 | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Revenue | $ 158,454 | $ 452,648 | ||
Operating expenses: | ||||
Sales and marketing | 89,821 | 253,647 | ||
Loss from operations | (42,285) | (119,743) | ||
Net loss | $ (43,017) | $ (122,118) | ||
Net loss per common share, basic and diluted | $ (0.30) | $ (0.87) | ||
Weighted-average shares used to compute net loss per share, basic and diluted | 142,366 | 140,559 | ||
Effect of Change | Accounting Standards Update 2014-09 | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Revenue | $ (2,510) | $ (7,975) | ||
Operating expenses: | ||||
Sales and marketing | (5,331) | (15,175) | ||
Loss from operations | 2,821 | 7,200 | ||
Net loss | $ 2,821 | $ 7,200 | ||
Net loss per common share, basic and diluted | $ 0.02 | $ 0.05 | ||
Weighted-average shares used to compute net loss per share, basic and diluted | 142,366 | 140,559 |
Revenue - Financial Statement_3
Revenue - Financial Statement Impact of ASC 606 (Cash Flow) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Net loss | $ (40,196) | $ (42,924) | $ (114,918) | $ (122,295) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||
Amortization of deferred commissions | 4,516 | 5,393 | 12,231 | 15,751 | ||
Changes in operating assets and liabilities: | ||||||
Accounts receivable, net | 9,065 | 12,023 | 57,001 | 24,245 | ||
Deferred commissions | (9,753) | (4,616) | (23,057) | (13,235) | ||
Deferred revenue | (276) | 12,167 | (9,868) | 11,022 | ||
Net cash provided by operating activities | 6,816 | $ 14,094 | [1] | 23,989 | $ 12,874 | [1] |
Balances without adoption of ASC Topic 606 | Accounting Standards Update 2014-09 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Net loss | (43,017) | (122,118) | ||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||
Amortization of deferred commissions | 6,177 | 18,119 | ||||
Changes in operating assets and liabilities: | ||||||
Accounts receivable, net | 9,124 | 56,635 | ||||
Deferred commissions | (6,083) | (13,770) | ||||
Deferred revenue | (2,845) | (17,477) | ||||
Net cash provided by operating activities | 6,816 | 23,989 | ||||
Effect of Change | Accounting Standards Update 2014-09 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Net loss | 2,821 | 7,200 | ||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||
Amortization of deferred commissions | (1,661) | (5,888) | ||||
Changes in operating assets and liabilities: | ||||||
Accounts receivable, net | (59) | 366 | ||||
Deferred commissions | (3,670) | (9,287) | ||||
Deferred revenue | $ 2,569 | $ 7,609 | ||||
[1] | Adjusted due to the adoption of ASU 2016-18 |
Revenues - Additional Informati
Revenues - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Oct. 31, 2018USD ($) | Oct. 31, 2018USD ($) | |
Revenue From Contract With Customer [Abstract] | ||
Contract assets presented within accounts receivable | $ 0.2 | $ 0.2 |
Deferred revenue | 301.2 | 301.2 |
Deferred revenue, revenue recognized out of beginning balance | 120.1 | 252.1 |
Remaining performance obligation, revenue expected to be recognized | $ 607.4 | $ 607.4 |
Revenue remaining performance obligation, percentage | 66.00% | 66.00% |
Revenues - Additional Informa_2
Revenues - Additional Information (Details 1) | Oct. 31, 2018 |
Revenue From Contract With Customer [Abstract] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Oct. 31, 2018 | Jan. 31, 2018 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 11,652 | $ 8,494 |
Other current assets | 3,385 | 2,897 |
Total prepaid expenses and other current assets | $ 15,037 | $ 11,391 |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Oct. 31, 2018 | Jan. 31, 2018 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | $ 320,586 | $ 279,181 |
Less: accumulated depreciation | (187,212) | (155,204) |
Total property and equipment, net | 133,374 | 123,977 |
Servers | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 195,594 | 170,422 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 76,789 | 72,599 |
Computer hardware and software | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 19,711 | 14,558 |
Furniture and fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 13,625 | 14,254 |
Construction in progress | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | $ 14,867 | $ 7,348 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | Jan. 31, 2018 | |
Property Plant And Equipment [Line Items] | |||||
Accumulated depreciation of property and equipment acquired under capital lease | $ 47.1 | $ 47.1 | $ 29.1 | ||
Depreciation expense | 11.4 | $ 9.9 | 34.7 | $ 28.8 | |
Capitalized qualifying implementation costs incurred for service contract | 1.6 | 1.6 | |||
Other Long-Term Assets | |||||
Property Plant And Equipment [Line Items] | |||||
Capitalized qualifying costs to develop software for internal use | 1.3 | 1.3 | |||
Servers | |||||
Property Plant And Equipment [Line Items] | |||||
Gross amount of property and equipment acquired under capital lease | 100.7 | 100.7 | 74.7 | ||
Depreciation expense | 6.6 | $ 4.9 | 19 | $ 13.3 | |
Construction in progress | |||||
Property Plant And Equipment [Line Items] | |||||
Gross amount of property and equipment acquired under capital lease | $ 5.7 | $ 5.7 | $ 3.7 |
Balance Sheet Components - Sc_3
Balance Sheet Components - Schedule of Other Long-Term Assets (Details) - USD ($) $ in Thousands | Oct. 31, 2018 | Jan. 31, 2018 |
Assets Noncurrent [Abstract] | ||
Deposits, non-current | $ 2,593 | $ 2,934 |
Other assets, non-current | 4,936 | 2,469 |
Other long-term assets | $ 7,529 | $ 5,403 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) $ in Millions | 12 Months Ended |
Jan. 31, 2019USD ($) | |
Three Privately-held Technology Companies | Scenario Forecast | |
Business Acquisition [Line Items] | |
Business acquisition, aggregate consideration paid | $ 2.4 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Oct. 31, 2018 | Oct. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Goodwill acquired | $ 0 | $ 2,447,000 |
Amortization of intangible assets | $ 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Goodwill Activity (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Oct. 31, 2018 | Oct. 31, 2018 | |
Goodwill - Roll forward | ||
Beginning Balance | $ 16,293,000 | |
Goodwill acquired | $ 0 | 2,447,000 |
Ending Balance | $ 18,740,000 | $ 18,740,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | Jan. 31, 2018 | Nov. 27, 2017 | |
Commitments And Contingencies [Line Items] | ||||||
Non-cancellable sublease expiration year | 2,023 | |||||
Rent expense | $ 8.8 | $ 8.1 | $ 25.4 | $ 20.3 | ||
Sublease income | 1.8 | $ 1.9 | 5.7 | $ 5.6 | ||
Subleases Expire in Fiscal 2018 and 2023 | ||||||
Commitments And Contingencies [Line Items] | ||||||
Non-cancellable sublease proceeds for the year ending January 31, 2019 | 1.9 | 1.9 | ||||
Non-cancellable sublease proceeds for the year ending January 31, 2020 | 8.2 | 8.2 | ||||
Non-cancellable sublease proceeds for the year ending January 31, 2021 | 7.5 | 7.5 | ||||
Non-cancellable sublease proceeds for the year ending January 31, 2022 | 5.1 | 5.1 | ||||
Non-cancellable sublease proceeds for the year ending January 31, 2023 | 4.2 | $ 4.2 | ||||
Minimum | ||||||
Commitments And Contingencies [Line Items] | ||||||
Operating lease expiration year | 2,020 | |||||
Capital lease initial term | 3 years | |||||
Term of sublease arrangement | 25 months | |||||
Maximum | ||||||
Commitments And Contingencies [Line Items] | ||||||
Operating lease expiration year | 2,029 | |||||
Capital lease initial term | 4 years | |||||
Term of sublease arrangement | 55 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 | $ 26.8 | $ 26.8 | $ 26.4 | |||
Line of credit facility, maximum borrowing capacity sublimit | $ 30 |
Commitments and Contingencies_2
Commitments and Contingencies - Future Minimum Lease Payments under Non-cancellable Capital and Operating Leases (Details) $ in Thousands | Oct. 31, 2018USD ($) |
Capital Leases | |
Capital Leases, Remainder of 2019 | $ 8,799 |
Capital Leases, 2020 | 21,979 |
Capital Leases, 2021 | 17,794 |
Capital Leases, 2022 | 9,740 |
Capital Leases, 2023 | 2,376 |
Capital Leases, Total minimum lease payments | 60,688 |
Capital Leases, Less: amount representing interest | (2,438) |
Capital Leases, Present value of minimum lease payments | 58,250 |
Operating Leases | |
Operating Leases, net of Sublease Income, Remainder of 2019 | 8,764 |
Operating Leases, net of Sublease Income, 2020 | 35,221 |
Operating Leases, net of Sublease Income, 2021 | 35,907 |
Operating Leases, net of Sublease Income, 2022 | 34,146 |
Operating Leases, net of Sublease Income, 2023 | 26,361 |
Operating Leases, net of Sublease Income, Thereafter | 142,922 |
Operating Leases, net of Sublease Income, Total minimum lease payments | $ 283,321 |
Commitments and Contingencies_3
Commitments and Contingencies - Future Payments under Non-cancellable Contractual Purchases (Details) $ in Thousands | Oct. 31, 2018USD ($) |
Purchase Obligation Fiscal Year Maturity [Abstract] | |
Remainder of 2019 | $ 10,761 |
2,020 | 47,478 |
2,021 | 12,267 |
2,022 | 2,280 |
2,023 | 1,315 |
Thereafter | 694 |
Total | $ 74,795 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Nov. 29, 2017 | Nov. 27, 2017 | Feb. 28, 2017 | Dec. 31, 2015 | Oct. 31, 2018 |
Debt Instrument [Line Items] | |||||
Decrease in restricted cash | $ 26,100,000 | ||||
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 | |||
Repayment of outstanding principal balance | $ 40,000,000 | ||||
Line of credit facility, termination date | Nov. 27, 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% | ||||
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 | Wells Fargo Bank | Prime Rate | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, floating interest rate | 0.25% | ||||
November 2017 Facility | Revolving Credit Facility | Secured Debt | Wells Fargo Bank | London Interbank Offered Rate (LIBOR) | |||||
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 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - $ / shares | Jun. 15, 2018 | Oct. 31, 2018 | Jun. 14, 2018 | Jan. 31, 2018 |
Class Of Stock [Line Items] | ||||
Common Stock, conversion features | On June 14, 2018, all of our outstanding shares of Class B common stock automatically converted into the same number of shares of Class A common stock pursuant to the terms of our Amended and Restated Certificate of Incorporation. No additional shares of Class B common stock will be issued following such conversion. The conversion occurred pursuant to Article IV of the Amended and Restated Certificate of Incorporation, which provided that each one share of Class B common stock would convert automatically, without any further action, into one share of Class A common stock on the first trading day falling on or after the date on which the outstanding shares of Class B common stock represent less than 5% of the aggregate number of shares of the then outstanding Class A common stock and Class B common stock. | |||
Preferred stock, shares authorized | 100,000,000 | 100,000,000 | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 | ||
Preferred stock, shares issued | 0 | 0 | ||
Preferred stock, shares outstanding | 0 | 0 | ||
Class B Common Stock | ||||
Class Of Stock [Line Items] | ||||
Maximum percentage of outstanding shares of Class A and Class B common stock, for automatic conversion of shares of Class B common stock | 5.00% | |||
Additional common shares issued | 0 | |||
Reduction in number of authorized shares of common stock | 200,000,000 | |||
Common Stock, shares authorized | 200,000,000 | |||
Common Stock, par value | $ 0.0001 | |||
Common Stock, shares issued | 11,383,525 | |||
Common Stock, shares outstanding | 11,383,525 | |||
Class A Common Stock | ||||
Class Of Stock [Line Items] | ||||
Common Stock, shares authorized | 1,000,000,000 | 1,000,000,000 | ||
Common Stock, par value | $ 0.0001 | $ 0.0001 | ||
Common Stock, shares issued | 143,387,495 | 125,933,323 | ||
Common Stock, shares outstanding | 143,387,495 | 125,933,323 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Apr. 30, 2018 | Apr. 30, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | Jan. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Aggregate intrinsic value of exercised options | $ 27.5 | $ 18.8 | |||||
Aggregate estimated fair value of stock options granted to employees vested | $ 5.6 | $ 7.2 | |||||
Weighted-average grant date fair value of options granted to employees | $ 8.24 | $ 7.04 | |||||
Unrecognized stock-based compensation expense related to stock option | $ 9 | $ 9 | |||||
Remaining weighted-average period | 2 years 7 months 2 days | ||||||
Stock options forfeited | 461,801 | ||||||
Performance-Based Stock Options | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Unrecognized stock-based compensation expense related to stock option | 3.8 | $ 3.8 | |||||
Remaining weighted-average period | 3 years 3 months 14 days | ||||||
Restricted Stock Units | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Remaining weighted-average period | 3 years 29 days | ||||||
Unrecognized stock-based compensation expense | $ 273.1 | $ 273.1 | |||||
Employee Stock Option | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% | |||
2015 Equity Incentive Plan | Performance-Based Stock Options | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Stock options granted | 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 | 18,518,116 | 18,518,116 | 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 | 1,957,913 | 1,957,913 | |||||
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 | $ 16.8 | $ 16.8 | |||||
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% | |||
2015 Employee Stock Purchase Plan | Class A Common Stock | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Shares common stock reserved for issuance | 2,500,000 | ||||||
Vesting Commencement Per Year | 2015 Equity Incentive Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Options and restricted stock units vesting percentage | 25.00% | ||||||
Vesting Commencement Per Year | 2015 Equity Incentive Plan | Performance-Based Stock Options | |||||||
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 Month | 2015 Equity Incentive Plan | Performance-Based Stock Options | |||||||
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 | 9 Months Ended | 12 Months Ended |
Oct. 31, 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 | 717,658 | |
Shares Subject to Options Outstanding, Options exercised | (1,745,370) | |
Shares Subject to Options Outstanding, Options forfeited/cancelled | (461,801) | |
Shares Subject to Options Outstanding, Ending balance | 9,353,607 | 10,843,120 |
Shares Subject to Options Outstanding, Vested and expected to vest | 9,281,847 | |
Shares Subject to Options Outstanding, Exercisable | 7,788,714 | |
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 | 20.78 | |
Weighted Average Exercise Price, Options exercised | 8.58 | |
Weighted Average Exercise Price, Options forfeited/cancelled | 14.10 | |
Weighted Average Exercise Price, Ending Balance | 8.94 | $ 8.32 |
Weighted Average Exercise Price, Vested and expected to vest | 8.87 | |
Weighted Average Exercise Price, Exercisable | $ 7.04 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted Average Remaining Contractual Life (Years) | 5 years 2 months 12 days | 5 years 8 months 26 days |
Weighted Average Remaining Contractual Life (Years), Vested and expected to vest | 5 years 2 months 1 day | |
Weighted Average Remaining Contractual Life (Years), Exercisable | 4 years 6 months | |
Aggregate Intrinsic Value, Balance | $ 87,143 | $ 150,922 |
Aggregate Intrinsic Value, Vested and expected to vest | 87,071 | |
Aggregate Intrinsic Value, Exercisable | $ 85,578 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Restricted Stock Unit and Awards Activity Under Equity Incentive Plans and Related Information (Details) - Restricted Stock Units | 9 Months Ended |
Oct. 31, 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 | 9,298,770 |
Number of Restricted Stock Units/Awards Outstanding, Vested | shares | (2,656,081) |
Number of Restricted Stock Units/Awards Outstanding, Forfeited/cancelled | shares | (2,922,723) |
Number of Restricted Stock Units/Awards Outstanding Unvested Ending Balance | shares | 18,339,218 |
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 | 22.58 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 16.51 |
Weighted-Average Grant Date Fair Value, Forfeited/cancelled | $ / shares | 17.41 |
Weighted-Average Grant Date Fair Value, Unvested Ending Balance | $ / shares | $ 19.38 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Components of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 31,790 | $ 25,523 | $ 89,086 | $ 72,536 |
Cost of Revenue | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 3,598 | 2,814 | 10,280 | 7,945 |
Research and Development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 12,043 | 9,705 | 33,668 | 28,419 |
Sales and Marketing | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 9,708 | 8,208 | 27,701 | 23,882 |
General and Administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 6,441 | $ 4,796 | $ 17,437 | $ 12,290 |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of Estimated Fair Value of Employee Stock Options (Details) | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | |
2015 Employee Stock Purchase Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Risk-free interest rate, Minimum | 2.30% | 1.20% | 2.00% | 0.90% |
Risk-free interest rate, Maximum | 2.80% | 1.40% | 2.80% | 1.40% |
Volatility, Minimum | 40.00% | 29.00% | 37.00% | 28.00% |
Volatility, Maximum | 48.00% | 40.00% | 50.00% | 43.00% |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Minimum | 2015 Employee Stock Purchase Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (in years) | 6 months | 6 months | 6 months | 6 months |
Maximum | 2015 Employee Stock Purchase Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (in years) | 2 years | 2 years | 2 years | 2 years |
Employee Stock Option | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (in years) | 5 years 9 months 18 days | 6 years 1 month 6 days | ||
Risk-free interest rate | 3.10% | 2.00% | ||
Risk-free interest rate, Minimum | 2.80% | 1.80% | ||
Risk-free interest rate, Maximum | 3.10% | 2.10% | ||
Volatility | 45.00% | 39.00% | 45.00% | |
Volatility, Minimum | 38.00% | |||
Volatility, Maximum | 40.00% | |||
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Employee Stock Option | Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (in years) | 5 years 6 months | 5 years 6 months | ||
Employee Stock Option | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (in years) | 5 years 9 months 18 days | 6 years 1 month 6 days |
Net Loss per Share - Additional
Net Loss per Share - Additional Information (Details) | Jun. 14, 2018shares |
Class B Common Stock | |
Class Of Stock [Line Items] | |
Additional common shares issued | 0 |
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 | 9 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | |
Numerator: | ||||
Net loss | $ (40,196) | $ (42,924) | $ (114,918) | $ (122,295) |
Denominator: | ||||
Weighted-average number of shares outstanding—basic and diluted | 142,366 | 134,636 | 140,559 | 133,044 |
Net loss per share—basic and diluted | $ (0.28) | $ (0.32) | $ (0.82) | $ (0.92) |
Class A Common Stock | ||||
Numerator: | ||||
Net loss | $ (40,196) | $ (35,061) | $ (110,868) | $ (84,998) |
Denominator: | ||||
Weighted-average number of shares outstanding—basic and diluted | 142,366 | 109,972 | 135,605 | 92,469 |
Net loss per share—basic and diluted | $ (0.28) | $ (0.32) | $ (0.82) | $ (0.92) |
Class B Common Stock | ||||
Numerator: | ||||
Net loss | $ (7,863) | $ (4,050) | $ (37,297) | |
Denominator: | ||||
Weighted-average number of shares outstanding—basic and diluted | 24,664 | 4,954 | 40,575 | |
Net loss per share—basic and diluted | $ (0.32) | $ (0.82) | $ (0.92) |
Net Loss per Share - Summary _2
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 | 9 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 25,958 | 28,020 | 25,631 | 29,174 |
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 | 9,488 | 11,997 | 10,026 | 12,094 |
Restricted Stock Units | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 14,791 | 13,962 | 14,474 | 13,382 |
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 | 164 | 206 | ||
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 | 52 | 55 | ||
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 | 1,679 | 1,845 | 1,131 | 3,437 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 10 Months Ended | 11 Months Ended | |
Oct. 31, 2018 | Dec. 31, 2017 | Feb. 01, 2018 | |
Income Tax Disclosure [Line Items] | |||
Federal corporate tax rate | 21.00% | 34.00% | |
Deferred revenue | $ 301.2 | ||
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) | 9 Months Ended |
Oct. 31, 2018Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |