Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 31, 2020 | Nov. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Oct. 31, 2020 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | BOX | |
Entity Registrant Name | Box, Inc. | |
Entity Central Index Key | 0001372612 | |
Current Fiscal Year End Date | --01-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Class A Common Stock, $0.0001 par value per share | |
Security Exchange Name | NYSE | |
Entity File Number | 001-36805 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-2714444 | |
Entity Address, Address Line One | 900 Jefferson Ave | |
Entity Address, City or Town | Redwood City | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94063 | |
City Area Code | 877 | |
Local Phone Number | 729-4269 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Common Stock, Shares Outstanding | 158,643,287 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Oct. 31, 2020 | Jan. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 275,400 | $ 195,586 |
Accounts receivable, net of allowance of $3,361 and $3,221 | 115,664 | 209,434 |
Prepaid expenses and other current assets | 23,020 | 21,865 |
Deferred commissions | 35,204 | 30,841 |
Total current assets | 449,288 | 457,726 |
Property and equipment, net | 173,621 | 190,976 |
Operating lease right-of-use assets, net | 205,009 | 197,806 |
Goodwill | 18,740 | 18,740 |
Deferred commissions, non-current | 61,624 | 62,762 |
Other long-term assets | 33,279 | 31,981 |
Total assets | 941,561 | 959,991 |
Current liabilities: | ||
Accounts payable | 5,426 | 16,752 |
Accrued compensation and benefits | 21,856 | 32,516 |
Accrued expenses and other current liabilities | 29,772 | 25,700 |
Finance lease liabilities | 50,512 | 54,634 |
Operating lease liabilities | 49,659 | 40,339 |
Deferred revenue | 339,285 | 407,493 |
Total current liabilities | 496,510 | 577,434 |
Debt, non-current | 50,000 | 40,000 |
Finance lease liabilities, non-current | 70,616 | 83,427 |
Operating lease liabilities, non-current | 202,753 | 206,141 |
Deferred revenue, non-current | 15,078 | 16,356 |
Other long-term liabilities | 19,042 | 14,276 |
Total liabilities | 853,999 | 937,634 |
Commitments and contingencies (Note 6) | ||
Stockholders’ equity: | ||
Preferred stock, par value $0.0001 per share; 100,000 shares authorized, no shares issued and outstanding as of October 31 (unaudited) and January 31, 2020 | ||
Class A common stock, par value $0.0001 per share; 1,000,000 shares authorized; 158,643 shares (unaudited) and 150,611 shares issued and outstanding as of October 31 and January 31, 2020, respectively | 16 | 15 |
Additional paid-in capital | 1,406,756 | 1,302,072 |
Treasury stock | (1,177) | (1,177) |
Accumulated other comprehensive loss | (1,297) | (307) |
Accumulated deficit | (1,316,736) | (1,278,246) |
Total stockholders’ equity | 87,562 | 22,357 |
Total liabilities and stockholders’ equity | $ 941,561 | $ 959,991 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Oct. 31, 2020 | Jan. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Allowance for accounts receivable | $ 3,361 | $ 3,221 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Class A Common Stock, par value | $ 0.0001 | $ 0.0001 |
Class A Common Stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Class A Common Stock, shares issued | 158,643,000 | 150,611,000 |
Class A Common Stock, shares outstanding | 158,643,000 | 150,611,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
Income Statement [Abstract] | ||||
Revenue | $ 196,003 | $ 177,156 | $ 571,857 | $ 512,679 |
Cost of revenue | 56,812 | 56,302 | 166,141 | 158,858 |
Gross profit | 139,191 | 120,854 | 405,716 | 353,821 |
Operating expenses: | ||||
Research and development | 49,454 | 50,652 | 152,683 | 146,589 |
Sales and marketing | 67,112 | 82,939 | 207,619 | 242,164 |
General and administrative | 25,239 | 26,496 | 79,778 | 75,959 |
Total operating expenses | 141,805 | 160,087 | 440,080 | 464,712 |
Loss from operations | (2,614) | (39,233) | (34,364) | (110,891) |
Interest expense, net | (1,733) | (738) | (4,865) | (1,141) |
Other (loss) income, net | (586) | (653) | 1,630 | (840) |
Loss before provision for income taxes | (4,933) | (40,624) | (37,599) | (112,872) |
Provision for income taxes | 351 | 272 | 891 | 1,086 |
Net loss | $ (5,284) | $ (40,896) | $ (38,490) | $ (113,958) |
Net loss per share, basic and diluted | $ (0.03) | $ (0.28) | $ (0.25) | $ (0.78) |
Weighted-average shares used to compute net loss per share, basic and diluted | 157,465 | 148,555 | 154,734 | 146,997 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | ||
Statement Of Income And Comprehensive Income [Abstract] | |||||
Net loss | $ (5,284) | $ (40,896) | $ (38,490) | $ (113,958) | |
Other comprehensive income (loss)*: | |||||
Changes in foreign currency translation adjustment | [1] | (37) | (7) | 135 | (83) |
Changes in unrealized loss on cash flow hedge | [1] | 115 | (51) | (1,125) | (51) |
Other comprehensive income (loss) | 78 | (58) | (990) | (134) | |
Comprehensive loss | $ (5,206) | $ (40,954) | $ (39,480) | $ (114,092) | |
[1] | Tax effect was not material |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Class A Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Balance, Beginning at Jan. 31, 2019 | $ 31,405 | $ 14 | $ 1,166,443 | $ (1,177) | $ 23 | $ (1,133,898) |
Balance, Beginning, Shares at Jan. 31, 2019 | 144,311,000 | |||||
Issuance of common stock upon stock option exercises | 1,213 | 1,213 | ||||
Issuance of common stock upon stock option exercises (in shares) | 152,000 | |||||
Stock-based compensation related to stock awards | 35,678 | 35,678 | ||||
Vesting of restricted stock units, net of shares withheld for employee payroll taxes | 1 | $ 1 | ||||
Vesting of restricted stock units, net of shares withheld for employee payroll taxes (in shares) | 1,205,000 | |||||
Employee payroll taxes withheld related to vesting of restricted stock units | (14,624) | (14,624) | ||||
Common stock issued under employee stock purchase plan | 13,605 | 13,605 | ||||
Common stock issued under employee stock purchase plan (in shares) | 829,000 | |||||
Other comprehensive income (loss) | 88 | 88 | ||||
Net loss | (36,828) | (36,828) | ||||
Balance, Ending at Apr. 30, 2019 | 30,538 | $ 15 | 1,202,315 | (1,177) | 111 | (1,170,726) |
Balance, Ending, Shares at Apr. 30, 2019 | 146,497,000 | |||||
Balance, Beginning at Jan. 31, 2019 | 31,405 | $ 14 | 1,166,443 | (1,177) | 23 | (1,133,898) |
Balance, Beginning, Shares at Jan. 31, 2019 | 144,311,000 | |||||
Other comprehensive income (loss) | (134) | |||||
Net loss | (113,958) | |||||
Balance, Ending at Oct. 31, 2019 | 20,775 | $ 15 | 1,269,904 | (1,177) | (111) | (1,247,856) |
Balance, Ending, Shares at Oct. 31, 2019 | 149,478,000 | |||||
Balance, Beginning at Apr. 30, 2019 | 30,538 | $ 15 | 1,202,315 | (1,177) | 111 | (1,170,726) |
Balance, Beginning, Shares at Apr. 30, 2019 | 146,497,000 | |||||
Issuance of common stock upon stock option exercises | 1,031 | 1,031 | ||||
Issuance of common stock upon stock option exercises (in shares) | 143,000 | |||||
Stock-based compensation related to stock awards | 38,035 | 38,035 | ||||
Vesting of restricted stock units, net of shares withheld for employee payroll taxes (in shares) | 1,082,000 | |||||
Employee payroll taxes withheld related to vesting of restricted stock units | (10,940) | (10,940) | ||||
Other comprehensive income (loss) | (164) | (164) | ||||
Net loss | (36,234) | (36,234) | ||||
Balance, Ending at Jul. 31, 2019 | 22,266 | $ 15 | 1,230,441 | (1,177) | (53) | (1,206,960) |
Balance, Ending, Shares at Jul. 31, 2019 | 147,722,000 | |||||
Issuance of common stock upon stock option exercises | 764 | 764 | ||||
Issuance of common stock upon stock option exercises (in shares) | 122,000 | |||||
Stock-based compensation related to stock awards | 38,373 | 38,373 | ||||
Vesting of restricted stock units, net of shares withheld for employee payroll taxes (in shares) | 989,000 | |||||
Employee payroll taxes withheld related to vesting of restricted stock units | (9,494) | (9,494) | ||||
Common stock issued under employee stock purchase plan | 9,820 | 9,820 | ||||
Common stock issued under employee stock purchase plan (in shares) | 645,000 | |||||
Other comprehensive income (loss) | (58) | (58) | ||||
Net loss | (40,896) | (40,896) | ||||
Balance, Ending at Oct. 31, 2019 | 20,775 | $ 15 | 1,269,904 | (1,177) | (111) | (1,247,856) |
Balance, Ending, Shares at Oct. 31, 2019 | 149,478,000 | |||||
Balance, Beginning at Jan. 31, 2020 | 22,357 | $ 15 | 1,302,072 | (1,177) | (307) | (1,278,246) |
Balance, Beginning, Shares at Jan. 31, 2020 | 150,611,000 | |||||
Issuance of common stock upon stock option exercises | 965 | 965 | ||||
Issuance of common stock upon stock option exercises (in shares) | 222,000 | |||||
Stock-based compensation related to stock awards | 42,766 | 42,766 | ||||
Vesting of restricted stock units, net of shares withheld for employee payroll taxes (in shares) | 1,331,000 | |||||
Employee payroll taxes withheld related to vesting of restricted stock units | (10,264) | (10,264) | ||||
Common stock issued under employee stock purchase plan | 11,906 | 11,906 | ||||
Common stock issued under employee stock purchase plan (in shares) | 1,282,000 | |||||
Other comprehensive income (loss) | (1,332) | (1,332) | ||||
Net loss | (25,550) | (25,550) | ||||
Balance, Ending at Apr. 30, 2020 | 40,848 | $ 15 | 1,347,445 | (1,177) | (1,639) | (1,303,796) |
Balance, Ending, Shares at Apr. 30, 2020 | 153,446,000 | |||||
Balance, Beginning at Jan. 31, 2020 | $ 22,357 | $ 15 | 1,302,072 | (1,177) | (307) | (1,278,246) |
Balance, Beginning, Shares at Jan. 31, 2020 | 150,611,000 | |||||
Issuance of common stock upon stock option exercises (in shares) | 1,830,313 | |||||
Other comprehensive income (loss) | $ (990) | |||||
Net loss | (38,490) | |||||
Balance, Ending at Oct. 31, 2020 | 87,562 | $ 16 | 1,406,756 | (1,177) | (1,297) | (1,316,736) |
Balance, Ending, Shares at Oct. 31, 2020 | 158,643,000 | |||||
Balance, Beginning at Apr. 30, 2020 | 40,848 | $ 15 | 1,347,445 | (1,177) | (1,639) | (1,303,796) |
Balance, Beginning, Shares at Apr. 30, 2020 | 153,446,000 | |||||
Issuance of common stock upon stock option exercises | 7,548 | 7,548 | ||||
Issuance of common stock upon stock option exercises (in shares) | 1,377,000 | |||||
Stock-based compensation related to stock awards | 35,767 | 35,767 | ||||
Vesting of restricted stock units, net of shares withheld for employee payroll taxes | 1 | $ 1 | ||||
Vesting of restricted stock units, net of shares withheld for employee payroll taxes (in shares) | 1,576,000 | |||||
Employee payroll taxes withheld related to vesting of restricted stock units | (17,180) | (17,180) | ||||
Other comprehensive income (loss) | 264 | 264 | ||||
Net loss | (7,656) | (7,656) | ||||
Balance, Ending at Jul. 31, 2020 | 59,592 | $ 16 | 1,373,580 | (1,177) | (1,375) | (1,311,452) |
Balance, Ending, Shares at Jul. 31, 2020 | 156,399,000 | |||||
Issuance of common stock upon stock option exercises | 1,361 | 1,361 | ||||
Issuance of common stock upon stock option exercises (in shares) | 231,000 | |||||
Stock-based compensation related to stock awards | 35,902 | 35,902 | ||||
Vesting of restricted stock units, net of shares withheld for employee payroll taxes (in shares) | 1,150,000 | |||||
Employee payroll taxes withheld related to vesting of restricted stock units | (10,776) | (10,776) | ||||
Common stock issued under employee stock purchase plan | 6,689 | 6,689 | ||||
Common stock issued under employee stock purchase plan (in shares) | 863,000 | |||||
Other comprehensive income (loss) | 78 | 78 | ||||
Net loss | (5,284) | (5,284) | ||||
Balance, Ending at Oct. 31, 2020 | $ 87,562 | $ 16 | $ 1,406,756 | $ (1,177) | $ (1,297) | $ (1,316,736) |
Balance, Ending, Shares at Oct. 31, 2020 | 158,643,000 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||
Net loss | $ (5,284) | $ (40,896) | $ (38,490) | $ (113,958) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||
Depreciation and amortization | 19,594 | 16,038 | 56,382 | 42,102 | |
Stock-based compensation expense | 37,834 | 37,758 | 115,438 | 106,925 | |
Amortization of deferred commissions | 9,286 | 6,650 | 26,065 | 18,360 | |
Others | 50 | 7 | 53 | (115) | |
Changes in operating assets and liabilities: | |||||
Accounts receivable, net | 7,377 | 9,510 | 93,770 | 66,737 | |
Deferred commissions | (11,464) | (11,617) | (29,290) | (26,571) | |
Operating lease right-of-use assets, net | 10,296 | 9,007 | 30,096 | 26,445 | |
Prepaid expenses and other assets | 2,530 | 1,550 | 634 | (3,289) | |
Accounts payable | (3,039) | (7,486) | (11,213) | (4,201) | |
Accrued expenses and other liabilities | 320 | 919 | (1,245) | (8,392) | |
Operating lease liabilities | (11,940) | (7,360) | (33,420) | (24,950) | |
Deferred revenue | (10,508) | (5,187) | (69,486) | (49,394) | |
Net cash provided by operating activities | 45,052 | 8,893 | 139,294 | 29,699 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||
Purchases of property and equipment | (3,337) | (1,055) | (7,451) | (4,221) | |
Capitalized internal-use software costs | (964) | (2,469) | (6,357) | (6,482) | |
Proceeds from sales of property and equipment | 36 | 6 | |||
Proceeds from the sale of a strategic equity investment | 107 | ||||
Net cash used in investing activities | (4,301) | (3,524) | (13,665) | (10,697) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||
Proceeds from borrowings | 30,000 | ||||
Principal payment of debt obligation | (20,000) | (20,000) | |||
Proceeds from exercise of stock options | 1,363 | 764 | 9,874 | 3,008 | |
Proceeds from issuances of common stock under employee stock purchase plan | 6,689 | 9,820 | 18,595 | 23,425 | |
Employee payroll taxes paid related to net share settlement of restricted stock units | (10,776) | (9,494) | (38,220) | (35,055) | |
Principal payments of finance lease liabilities | (14,584) | (7,055) | (46,159) | (26,200) | |
Acquisition related contingent consideration | (936) | ||||
Net cash used in financing activities | (37,308) | (5,965) | (45,910) | (35,758) | |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (49) | (3) | 488 | (110) | |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 3,394 | (599) | 80,207 | (16,866) | |
Cash, cash equivalents, and restricted cash, beginning of period | 272,399 | 201,489 | 195,586 | 217,756 | |
Cash, cash equivalents, and restricted cash, end of period | 275,793 | 200,890 | 275,793 | 200,890 | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||||
Cash paid for interest, net of amounts capitalized | 1,762 | 1,258 | 5,841 | 3,768 | |
Cash paid for income taxes, net of tax refunds | 114 | 967 | 884 | 2,718 | |
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES: | |||||
Accrued equipment purchases | 845 | 3,835 | 1,203 | 4,012 | |
Increase in long-lived assets resulting from capitalizing asset retirement costs | 297 | 2,717 | |||
Stock-based compensation expense capitalized in internally developed software costs | 555 | 1,188 | 2,275 | 3,626 | |
Accrued capitalized internal-use software costs | 125 | 1,086 | |||
Increase in finance lease liabilities | [1] | 6,072 | 40,530 | 29,148 | 84,950 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH INFORMATION: | |||||
Cash and cash equivalents, beginning of period | 271,874 | 201,489 | 195,586 | 217,518 | |
Restricted cash, beginning of period | 525 | 238 | |||
Cash, cash equivalents, and restricted cash, beginning of period | 272,399 | 201,489 | 195,586 | 217,756 | |
Cash and cash equivalents, end of period | 275,400 | 200,890 | 275,400 | 200,890 | |
Restricted cash, end of period | 393 | 393 | |||
Cash, cash equivalents, and restricted cash, end of period | $ 275,793 | $ 200,890 | $ 275,793 | $ 200,890 | |
[1] | Amounts disclosed for the three and nine months ended October 31, 2019 include the adoption impact of ASC Topic 842 on the opening balance sheet as of February 1, 2019. |
Description of Business and Bas
Description of Business and Basis of Presentation | 9 Months Ended |
Oct. 31, 2020 | |
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, 2020 and the condensed consolidated statements of operations, the condensed consolidated statements of comprehensive loss, the condensed consolidated statements of stockholders’ equity, and the condensed consolidated statements of cash flows for the three and nine months ended October 31, 2020 and 2019, respectively, are unaudited. The condensed consolidated balance sheet data as of January 31, 2020 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, 2020 (the Form 10-K), which was filed with the Securities and Exchange Commission (the SEC) on March 19, 2020. 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 and Recently Adopted Accounting Pronouncements , there have been no other material changes to our critical accounting policies and estimates during the nine months ended October 31, 2020 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, 2020, and our results of operations, including our comprehensive loss, our stockholders’ equity, and our cash flows for the three and nine months ended October 31, 2020 and 2019. All adjustments are of a normal recurring nature. The results for the three and nine months ended October 31, 2020 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending January 31, 2021. Certain prior period amounts reported in our condensed consolidated financial statements and notes thereto have been reclassified to conform to the current year presentation. Such reclassifications did not affect total revenues, operating income, or net income. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make, on an ongoing basis, estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ from these estimates. Such estimates include, but are not limited to, the determination of the allowance for accounts receivable, fair value of acquired intangible assets and goodwill, useful lives of acquired intangible assets and property and equipment, timing and costs associated with our asset retirement obligations, the nature and timing of satisfaction of performance obligations, estimate of standalone selling price allocation included in contracts with multiple performance obligations, the estimated expected benefit period for deferred commissions, the estimated useful life of capitalized internal-use software costs, observable price changes of , the incremental borrowing rate we use to determine our lease liabilities, Certain Risks and Concentrations Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash, cash equivalents, 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. Our revenue is derived primarily 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 probable based on the size, industry diversification, financial condition and past transaction history of our customers. As of October 31, 2020 and January 31, 2020, one reseller, which is also a customer, accounted for more than 10% of total accounts receivable. No single customer represented over 10% of revenue for the three and nine months ended October 31, 2020. One reseller, which is also a customer, represented 10% of our revenue for the three and nine months ended October 31, 2019. We serve our customers and users from data center facilities operated by third parties. In order to reduce the risk of down time of our subscription services, we have established data centers 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 data center facilities. Even with these procedures for disaster recovery in place, our cloud services could be significantly interrupted during the implementation of the procedures to restore services. Geographic Locations For the three and nine months ended October 31, 2020, revenue attributable to customers in the United States was 72% Substantially all of our net assets are located in the United States. As of October 31, 2020 and January 31, 2020, property and equipment located in the United States was approximately 95% and 94%, respectively. Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and the adoption did not have a material impact on our consolidated financial statements. Recently Issued Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Summary of Significant Accounting Policies Other than items discussed under Use of Estimates Recently Adopted Accounting Pronouncements |
Revenue
Revenue | 9 Months Ended |
Oct. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | Note 2. Revenue Contract Assets Contract assets, which are presented within accounts receivable, were not material as of October 31, 2020 and January 31, 2020. Deferred Revenue Deferred revenue was $354.4 million and $423.8 million as of October 31, 2020 and January 31, 2020, respectively. During the three months ended October 31, 2020 and 2019, we recognized During the nine months ended October 31, 2020 and 2019, we recognized Transaction Price Allocated to the Remaining Performance Obligations As of October 31, 2020, we had remaining performance obligations for subscription contracts of $755.9 million. We expect to recognize 64% of these remaining performance obligations as revenue over the next 12 months, with the balance recognized thereafter. Disaggregation of Revenues Refer to Part I, Item 1. Financial Statements—Note 1 for information regarding our disaggregation of revenues. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 31, 2020 | |
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 which are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments. • Level 3—Unobservable inputs that are supported by little or no market activity and 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. Investments Financial assets subject to the fair value disclosure requirements were as follows (in thousands): October 31, 2020 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 109,723 $ — $ — $ 109,723 Total cash equivalents $ 109,723 $ — $ — $ 109,723 January 31, 2020 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 43,558 $ — $ — $ 43,558 Certificates of deposit — 20,000 — 20,000 Total cash equivalents $ 43,558 $ 20,000 $ — $ 63,558 Derivative Instruments and Hedging In association with our debt described in Note 7, we are required to make variable rate interest payments based on a contractually specified interest rate index (e.g., LIBOR). The variable rate interest payments create interest rate risk as interest payments will fluctuate based on changes in the contractually specified interest rate index over the life of the loan. To minimize our risk exposure due to the volatility of the interest rate index, we entered into an interest rate swap agreement with Wells Fargo Bank, National Association, effective as of September 5, 2019 (Swap Agreement). This agreement, which is designated as a cash flow hedge, has a maturity of five years. Under the Swap Agreement, we have hedged a portion of the variable interest payments by effectively fixing our interest payments over the term of the agreement. As of October 31, 2020, our interest rate swap had a notional value of $30.0 million. We classify our interest rate swap hedge agreement within Level 2. As of October 31, 2020, the net unrealized loss of the interest rate swap, which is included in accrued expenses and other current liabilities and accumulated other comprehensive loss in our condensed consolidated balance sheet, was $1.3 million. As of January 31, 2020, the net unrealized loss of the interest rate swap was not material. During the three and nine months ended October 31, 2020, the net derivative loss within accumulated other comprehensive loss reclassified into earnings was not material and we estimate that the amount to be reclassified from accumulated other comprehensive loss into earnings within the next 12 months will not be material. |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Oct. 31, 2020 | |
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, 2020 2020 Prepaid expenses $ 16,210 $ 16,416 Capitalized qualifying implementation costs incurred in a hosting arrangement that is a service contract, net of amortization (1) 1,637 1,202 Other current assets 5,173 4,247 Total prepaid expenses and other current assets $ 23,020 $ 21,865 (1) Capitalized stock-based compensation expense, which is included in these amounts, was not material for the periods presented. The accumulated amortization of the capitalized costs was $1.1 million and $0.6 million as of October 31, 2020 and January 31, 2020, respectively. Amortization expense related to capitalized costs was not material for the three and nine months ended October 31, 2020 and 2019. We have not recorded any material impairment charges during the periods presented. Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): October 31, January 31, 2020 2020 Servers and related equipment $ 348,945 $ 312,369 Leasehold improvements 80,536 79,979 Computer hardware 26,052 23,086 Furniture and fixtures 14,420 14,192 Construction in progress 11,605 18,370 Total property and equipment 481,558 447,996 Less: accumulated depreciation (307,937 ) (257,020 ) Total property and equipment, net $ 173,621 $ 190,976 As of October 31, 2020, the gross carrying amount of property and equipment included $252.7 million of servers and related equipment and $8.2 million of construction in progress acquired under finance leases, and the accumulated depreciation of property and equipment acquired under these finance leases was $138.9 million. As of January 31, 2020, the gross carrying amount of property and equipment included $216.4 million of servers and related equipment and $16.3 million of construction in progress acquired under finance leases, and the accumulated depreciation of property and equipment acquired under these finance leases was $98.0 million. Depreciation expense related to property and equipment was $17.5 million and $15.8 million for the three months ended October 31, 2020 and 2019, respectively, and $51.1 million and $41.7 million for the nine months ended October 31, 2020 and 2019, respectively. Included in these amounts were depreciation expense for servers and related equipment acquired under finance leases in the amount of $14.1 million and $11.7 million for the three months ended October 31, 2020 and 2019, respectively, and $41.0 million and $29.8 million for the nine months ended October 31, 2020 and 2019, respectively. Construction in progress primarily consists of servers and networking equipment and storage infrastructure being provisioned in our data center facilities. Operating Lease Right-of-Use Assets, Net Operating lease right-of-use assets, net consisted of the following (in thousands): October 31, January 31, 2020 2020 Operating lease right-of-use assets $ 270,554 $ 233,255 Less: accumulated amortization (65,545 ) (35,449 ) Operating lease right-of-use assets, net $ 205,009 $ 197,806 Other Long-term Assets Other long-term assets consisted of the following (in thousands): October 31, January 31, 2020 2020 Deposits, noncurrent $ 2,712 $ 2,726 Internally developed software costs, net of amortization (1) (2) 16,675 14,521 On-premises software, net of amortization (2) (3) 9,302 10,594 Other assets, noncurrent 4,590 4,140 Other long-term assets $ 33,279 $ 31,981 (1) Capitalized stock-based compensation expense, which is included in these amounts, was $5.9 million and $5.0 million as October 31, 2020 and January 31, 2020, respectively. (2) The accumulated amortization of capitalized software costs in the aggregate was $ 8.3 million and $ 1.7 million as of October 31, 2020 and January 31, 2020, respectively. Amortization expense related to capitalized software was $ 2.7 million and $ 6.7 million for the three and nine months ended October 31, 2020, respectively, and was not material for the three and nine months ended October 31, 2019. We have not recorded any material impairment charges during the periods presented. (3) The estimated useful lives of on-premises software range from three to four years. |
Leases
Leases | 9 Months Ended |
Oct. 31, 2020 | |
Leases [Abstract] | |
Leases | Note 5. Leases We have entered into various non-cancellable operating lease agreements for certain of our offices and data centers with lease periods expiring primarily between fiscal years 2022 and 2029. Certain of these arrangements have free or escalating rent payment provisions and optional renewal or termination clauses. Our operating leases typically include variable lease payments, which are primarily comprised of common area maintenance and utility charges for our offices and power and network connections for our data centers, that are determined based on actual consumption. Our operating lease agreements do not contain any residual value guarantees, covenants, or other restrictions. We have also entered into various finance lease arrangements to obtain servers and related equipment for our data center operations. These agreements are primarily for four years and certain of these arrangements have optional renewal or termination clauses. The leases are secured by the underlying leased servers and related equipment. We sublease certain floors of our Redwood City, San Francisco, and London offices. Our current subleases have total lease terms ranging from 11 to 96 months that will expire at various dates by fiscal year 2025. The components of lease cost, which were included in operating expenses in our condensed consolidated statements of operations, were as follows (in thousands): Three Months Ended Nine Months Ended October 31, October 31, 2020 2019 2020 2019 Finance lease cost: Amortization of finance lease right-of-use assets $ 14,102 $ 11,713 $ 41,027 $ 29,823 Interest on finance lease liabilities 1,416 1,312 4,440 2,987 Operating lease cost, gross 13,552 12,300 40,095 36,533 Variable lease cost, gross 2,180 3,040 7,074 8,741 Sublease income (2,707 ) (2,741 ) (7,888 ) (8,327 ) Total lease cost (1) $ 28,543 $ 25,624 $ 84,748 $ 69,757 (1) Short-term lease cost was not material for the periods presented and is not included in the table above. Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended Nine Months Ended October 31, October 31, 2020 2019 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 16,121 $ 11,562 $ 44,276 $ 35,053 Operating cash flows for finance leases 1,456 802 4,962 2,531 Financing cash flows for finance leases 14,584 7,055 46,159 26,200 Right-of-use assets obtained in exchange of lease obligations (1) Operating leases $ 9,732 $ 1,016 $ 39,079 $ 230,371 Finance leases 6,072 40,530 29,148 84,950 (1) Amounts disclosed for the three and nine months ended October 31, 2019 include the adoption impact of ASC Topic 842 on the opening balance sheet as of February 1, 2019. Supplemental information related to the remaining lease term and discount rate was as follows: October 31, 2020 2019 Weighted-average remaining lease term (in years) Operating leases 5.93 6.84 Finance leases 2.55 3.07 Weighted-average discount rate Operating leases 5.26 % 5.41 % Finance leases 4.46 % 4.29 % As of October 31, 2020, maturities of our operating and finance lease liabilities, which do not include short-term leases and variable lease payments, are as follows (in thousands): Fiscal years ending January 31: Operating Leases (1) Finance Leases Remainder of 2021 $ 15,157 $ 15,587 2022 59,867 51,192 2023 49,410 41,418 2024 47,927 19,022 2025 32,269 1,317 Thereafter 91,541 — Total lease payments $ 296,171 $ 128,536 Less: imputed interest (43,759 ) (7,408 ) Present value of total lease liabilities $ 252,412 $ 121,128 (1) Non-cancellable sublease proceeds for the remainder of the fiscal year ending January 31, 2021 and the fiscal years ending January 31, 2022, 2023, 2024, and 2025 of $1.9 million, $9.9 million, $8.3 million, $2.2 million, and $2.2 million, respectively, are not included in the table above. As of October 31, 2020, we had two finance leases that had not commenced. These finance leases have immaterial aggregated undiscounted future payments and lease terms ranging from 1 to 3 years. These finance leases are expected to commence during the fourth quarter of fiscal year 2021 and as such, we did not reflect these leases on the condensed consolidated balance sheet as of October 31, 2020 and in the tables above. We did not have any operating leases that have not yet commenced as of October 31, 2020. 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. As of October 31, 2020 and 2019, we recorded $3.1 million and $2.8 million, respectively, in other long-term liabilities related to the present value of our estimated asset retirement obligation for our headquarters facility. The accretion expense, which was included in operating expenses in our condensed consolidated statements of operations, was not material for all periods presented. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 6. Commitments and Contingencies Letters of Credit As of October 31, 2020 and January 31, 2020, we had letters of credit in the aggregate amount of $27.0 million and $26.5 million, respectively, in connection with our operating leases and voluntary disability insurance (VDI) program, which were primarily issued under the available sublimit for the issuance of letters of credit in conjunction with a secured credit agreement as disclosed in Note 7. Purchase Obligations As of October 31, 2020, future payments under non-cancellable contractual purchases, which were not recognized on our condensed consolidated balance sheet and relate primarily to infrastructure services and IT software and support services costs Fiscal years ending January 31: Remainder of 2021 $ 2,341 2022 13,092 2023 32,705 2024 2,340 2025 434 Thereafter 166,234 $ 217,146 In addition to the purchase obligations included above, as of October 31, 2020, we recognized a total of $15.3 million related to non-cancellable contractual purchases, which were included in accounts payable, accrued expenses and other current liabilities, and other long-term liabilities on the condensed consolidated balance sheet. $6.3 million, $3.3 million, $3.8 million, and $1.9 million is due to be paid in the remainder of the fiscal year ending January 31, 2021 and the fiscal years ending January 31, 2022, 2023, and 2024, respectively. Legal Matters From time to time, we are subject to claims that arise in the ordinary course of business, including matters we initiate to defend ourselves or our users by determining the scope, enforceability, and validity of third-party proprietary rights or to establish our proprietary rights. 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, 2020. Additionally, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources, and other factors, regardless of the outcome of such litigation. Indemnification We include service level commitments to our customers warranting certain levels of uptime reliability and performance and permitting those customers to receive credits in the event that we fail to meet those levels. In addition, our customer contracts often include (i) specific obligations that we maintain the availability of the customer’s data through our service and that we secure customer content against unauthorized access or loss, and (ii) indemnity provisions whereby we indemnify our customers for third-party claims asserted against them that result from our failure to maintain the availability of their content or securing the same from unauthorized access or loss. To date, we have not incurred any material costs as a result of such commitments. Our arrangements generally include certain provisions for indemnifying customers against liabilities if our products or services infringe a third party’s intellectual property rights. It is not possible to determine the maximum potential amount under these indemnification obligations due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. To date, we have not incurred any material costs as a result of such obligations and have not accrued any material liabilities related to such obligations in the 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, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Note 7. Debt Line of Credit On November 27, 2017, we entered into a secured credit agreement (as amended or otherwise modified from time to time, the November 2017 Facility) and on July 12, 2019, we entered into Amendment No. 1 to the November 2017 Facility. Pursuant to the terms of the amendment, among other changes, (i) the maturity date of borrowings under the November 2017 Facility was extended from November 27, 2020 to July 12, 2022 ; (ii) the revolving commitments were increased from $ 85.0 million to $ 100.0 million; (iii) the sublimit for the issuance of letters of credit was increased from $ 30.0 million to $ 45.0 million; and (iv) the covenant in the November 2017 Facility that limits the amount of finance leases and debt that we can incur to finance the acquisition, construction or improvement of any equipment or capital assets was increased from $ 100.0 million to $ 200.0 million. 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, incur contractual obligations and commitments 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. In April 2020, we drew an additional $30.0 million on the November 2017 Facility. In October 2020, we paid $20.0 million of our outstanding principal balance on the November 2017 Facility. As of October 31, 2020, we had total debt outstanding with a carrying amount of $50.0 million. As of October 31, 2020, we were in compliance with all financial covenants. In connection with the above credit facility, for the three and nine months ended October 31, 2020 and 2019, 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 facility includes interest charges for our line of credit |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Oct. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 8. Stock-Based Compensation 2015 Equity Incentive Plan In January 2015, our board of directors adopted the 2015 Equity Incentive Plan (2015 Plan), which became effective prior to the completion of our initial public offering (IPO). A total of 12,200,000 shares of Class A common stock was initially reserved for issuance pursuant to future awards under the 2015 Plan. On the first day of each fiscal year, shares available for issuance are increased based on the provisions of the 2015 Plan. Any shares subject to outstanding awards under our 2006 Equity Incentive Plan or 2011 Equity Incentive 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. Generally, our restricted stock units vest over four years and, (a) for employee new hire restricted stock unit grants, twenty-five percent vest one year from the vesting commencement date and continue to vest 1/16th 1/16th 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, 2020, 1,288,378 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, 2020 8,772,585 $ 9.48 4.27 $ 60,221 Options granted 31,666 12.48 Options exercised (1,830,313 ) 5.39 Options forfeited/cancelled (182,213 ) 10.35 Balance as of October 31, 2020 6,791,725 $ 10.57 3.96 $ 42,880 Vested and expected to vest as of October 31, 2020 6,727,337 $ 10.49 3.92 $ 42,876 Exercisable as of October 31, 2020 5,455,872 $ 8.31 3.02 $ 42,803 The aggregate intrinsic value of options vested and expected to vest and exercisable as of October 31, 2020 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, 2020 and 2019 was $25.4 million and $4.5 million, respectively. The aggregate estimated fair value of stock options granted to employees that vested during the nine months ended October 31, 2020 and 2019 was $1.9 million and $2.4 million, respectively. The weighted-average grant date fair value of options granted to employees during the nine months ended October 31, 2020 and 2019 was $5.41 and $8.00 per share, respectively. As of October 31, 2020, there was $2.5 million of unrecognized stock-based compensation expense related to outstanding stock options granted to employees that is expected to be recognized over a weighted-average period of 1.59 years. Stock Options with Market-Based Performance Goals To further align our stockholders’ interests with executive officers’ interests, the Compensation Committee of our board of directors approved and granted performance-based stock options with market-based performance goals under the 2015 Plan to certain executive officers , which are subject to both the achievement of the market-based performance goal established by the Compensation Committee and the continued employment of the participant. These performance-based stock options vest only to the extent that both the market-based performance goal and time-based condition are satisfied. The market-based performance goal will be satisfied if, before the four-year anniversary of the grant date, the closing price of our Class A common stock is maintained at or above a pre-determined share price for a period of 30 consecutive trading days. The time-based vesting condition will be satisfied over the following four-year Twenty-five of the option’s time-based vesting condition is satisfied one year from the vesting commencement date and the remaining 1/48th he total outstanding balance of performance-based stock options was 1,375,000. 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. Of the total $2.5 million in unrecognized stock-based compensation expense for stock options as of October 31, 2020, $1.4 million related to outstanding performance-based stock options with market-based performance goals, which is expected to be recognized over a weighted-average period of 2.09 years. 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, 2020 21,808,107 $ 18.85 Granted 9,766,239 15.59 Vested, net of shares withheld for employee payroll taxes (4,057,217 ) 18.32 Forfeited/cancelled (2,838,306 ) 18.84 Unvested balance - October 31, 2020 24,678,823 $ 17.65 As of October 31, 2020, there was $270.7 million of unrecognized stock-based compensation expense related to outstanding restricted stock units granted to employees that is expected to be recognized over a weighted-average period of 2.69 years. Performance-Based Restricted Stock Units We use performance-based incentives for certain employees, including our named executive officers, to achieve our annual financial and operational objectives, while making progress towards our longer-term strategic and growth goals. Typically, near the beginning of each fiscal year, our Compensation Committee adopts the performance criteria and targets for the incentive compensation plan for that fiscal year, which identifies the plan participants, the performance measures and the associated target levels for each measure, and the potential payouts based on actual performance for the fiscal year. In the first quarter of fiscal year 2020, our Compensation Committee adopted and approved the performance criteria and targets for fiscal year 2020 under our omnibus Executive Incentive Plan (the Fiscal 2020 Executive Bonus Plan). Based on a review of our actual achievement of pre-established corporate financial objectives and additional inputs from our Compensation Committee, the Fiscal 2020 Executive Bonus Plan was determined, settled and paid out in the first quarter of fiscal year 2021 in the form of fully vested restricted stock units. During the first quarter of fiscal year 2021, we recognized stock-based compensation expense related to the Fiscal 2020 Executive Bonus Plan in the amount of $1.5 million. In the first quarter of fiscal year 2021, our Compensation Committee adopted and approved the performance criteria and targets for fiscal year 2021 under our omnibus Executive Plan (the Fiscal 2021 Executive Bonus Plan). The Fiscal 2021 Executive Bonus Plan provides opportunities for 100% equity incentive compensation payouts based on our actual achievement of pre-established corporate financial objectives, subject to review and a final approval by our Compensation Committee. During the nine months ended October 31, 2020, we recognized stock-based compensation expense related to the Fiscal 2021 Executive Bonus Plan in the amount of $7.0 million. The unrecognized compensation expense related to the ungranted and unvested Fiscal 2021 Executive Bonus Plan is $4.1 million, based on the expected performance against the pre-established corporate financial objectives as of October 31, 2020, which is expected to be recognized over a remaining weighted-average period of less than one year. The payouts of the Fiscal 2021 Executive Bonus Plan are expected to be made in the form of fully vested restricted stock units in the first quarter of fiscal year 2022 2015 ESPP As of October 31, 2020, there was $38.3 million of unrecognized stock-based compensation expense related to the 2015 ESPP that is expected to be recognized over the remaining term of the respective offering periods. During the first quarter of fiscal year 2021, the fair market value of our stock on the purchase date (i.e., March 15, 2020) was lower than the fair market value of our stock on certain offering dates. As a result, certain offering periods reset and the new lower price became the new offering price for a new 24 month offering period. These resets resulted in a change in fair value and a corresponding incremental stock-based compensation expense initially totaling $3.9 million, which is expected to be recognized over the term of the new offering period. 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, 2020 2019 2020 2019 Cost of revenue $ 4,731 $ 4,428 $ 13,673 $ 12,399 Research and development 14,581 16,653 46,139 44,878 Sales and marketing 10,619 9,250 31,364 28,644 General and administrative 7,903 7,427 24,262 21,004 Total stock-based compensation $ 37,834 $ 37,758 $ 115,438 $ 106,925 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, 2020 2019 2020 2019 Employee Stock Options Expected term (in years) N/A N/A 5.8 5.5 - 5.8 Risk-free interest rate N/A N/A 0.6% 1.8% Volatility N/A N/A 46% 45% Dividend yield N/A N/A 0% 0% Employee Stock Purchase Plan Expected term (in years) 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 Risk-free interest rate 0.1% 1.7% - 1.9% 0.1% - 0.4% 1.7% - 2.5% Volatility 48% - 54% 34% - 47% 44% - 54% 34% - 55% 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 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, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Note 9. 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, Nine Months Ended October 31, 2020 2019 2020 2019 Numerator: Net loss $ (5,284 ) $ (40,896 ) $ (38,490 ) $ (113,958 ) Denominator: Weighted-average number of shares outstanding—basic and diluted 157,465 148,555 154,734 146,997 Net loss per share—basic and diluted $ (0.03 ) $ (0.28 ) $ (0.25 ) $ (0.78 ) 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, 2020 2019 2020 2019 Options to purchase common stock 4,769 5,880 5,472 7,709 Restricted stock units 16,820 17,006 17,509 16,477 Employee stock purchase plan 2,013 2,035 1,443 1,244 23,602 24,921 24,424 25,430 |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10. Income Taxes We evaluate tax positions for recognition using a more-likely-than-not recognition threshold, and those tax positions eligible for recognition are measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon the effective settlement with a taxing authority that has full knowledge of all relevant information. We believe that we have provided adequate reserves for our income tax uncertainties in all open tax years. We file tax returns in the U.S. 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. |
Restructuring
Restructuring | 9 Months Ended |
Oct. 31, 2020 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | Note 11. Restructuring Consistent with our focused efforts to drive more profitable growth, in the quarter ended January 31, 2020, we completed certain restructuring activities primarily in our sales and marketing organization, and to a lesser extent in our (1) research and development and (2) general and administrative organizations. The restructuring included eliminating specific senior roles, centralizing the reporting structures for certain functions and geographies, eliminating select sales overlay roles, and reducing headcount in lower performing geographies. In connection with the restructuring, we recorded a charge in the quarter ended January 31, 2020 in the amount of $1.65 million, which consisted entirely of severance and other personnel-related costs. As of January 31, 2020, all affected personnel had been notified, $0.6 million of the restructuring charge had been paid, and $1.05 million of the charge remained accrued and included in accrued compensation and benefits in our condensed consolidated balance sheet. As of October 31, 2020, all remaining restructuring charges were paid. |
Segments
Segments | 9 Months Ended |
Oct. 31, 2020 | |
Segment Reporting [Abstract] | |
Segments | Note 12. 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, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated balance sheet as of October 31, 2020 and the condensed consolidated statements of operations, the condensed consolidated statements of comprehensive loss, the condensed consolidated statements of stockholders’ equity, and the condensed consolidated statements of cash flows for the three and nine months ended October 31, 2020 and 2019, respectively, are unaudited. The condensed consolidated balance sheet data as of January 31, 2020 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, 2020 (the Form 10-K), which was filed with the Securities and Exchange Commission (the SEC) on March 19, 2020. 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 and Recently Adopted Accounting Pronouncements , there have been no other material changes to our critical accounting policies and estimates during the nine months ended October 31, 2020 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, 2020, and our results of operations, including our comprehensive loss, our stockholders’ equity, and our cash flows for the three and nine months ended October 31, 2020 and 2019. All adjustments are of a normal recurring nature. The results for the three and nine months ended October 31, 2020 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending January 31, 2021. Certain prior period amounts reported in our condensed consolidated financial statements and notes thereto have been reclassified to conform to the current year presentation. Such reclassifications did not affect total revenues, operating income, or net income. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make, on an ongoing basis, estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ from these estimates. Such estimates include, but are not limited to, the determination of the allowance for accounts receivable, fair value of acquired intangible assets and goodwill, useful lives of acquired intangible assets and property and equipment, timing and costs associated with our asset retirement obligations, the nature and timing of satisfaction of performance obligations, estimate of standalone selling price allocation included in contracts with multiple performance obligations, the estimated expected benefit period for deferred commissions, the estimated useful life of capitalized internal-use software costs, observable price changes of , the incremental borrowing rate we use to determine our lease liabilities, |
Certain Risks and Concentrations | Certain Risks and Concentrations Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash, cash equivalents, 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. Our revenue is derived primarily 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 probable based on the size, industry diversification, financial condition and past transaction history of our customers. As of October 31, 2020 and January 31, 2020, one reseller, which is also a customer, accounted for more than 10% of total accounts receivable. No single customer represented over 10% of revenue for the three and nine months ended October 31, 2020. One reseller, which is also a customer, represented 10% of our revenue for the three and nine months ended October 31, 2019. We serve our customers and users from data center facilities operated by third parties. In order to reduce the risk of down time of our subscription services, we have established data centers 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 data center facilities. Even with these procedures for disaster recovery in place, our cloud services could be significantly interrupted during the implementation of the procedures to restore services. Geographic Locations For the three and nine months ended October 31, 2020, revenue attributable to customers in the United States was 72% Substantially all of our net assets are located in the United States. As of October 31, 2020 and January 31, 2020, property and equipment located in the United States was approximately 95% and 94%, respectively. |
Recently Adopted and Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and the adoption did not have a material impact on our consolidated financial statements. Recently Issued Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Other than items discussed under Use of Estimates Recently Adopted Accounting Pronouncements |
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 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. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets Subject to Fair Value | Financial assets subject to the fair value disclosure requirements were as follows (in thousands): October 31, 2020 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 109,723 $ — $ — $ 109,723 Total cash equivalents $ 109,723 $ — $ — $ 109,723 January 31, 2020 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 43,558 $ — $ — $ 43,558 Certificates of deposit — 20,000 — 20,000 Total cash equivalents $ 43,558 $ 20,000 $ — $ 63,558 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
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, 2020 2020 Prepaid expenses $ 16,210 $ 16,416 Capitalized qualifying implementation costs incurred in a hosting arrangement that is a service contract, net of amortization (1) 1,637 1,202 Other current assets 5,173 4,247 Total prepaid expenses and other current assets $ 23,020 $ 21,865 (1) Capitalized stock-based compensation expense, which is included in these amounts, was not material for the periods presented. The accumulated amortization of the capitalized costs was $1.1 million and $0.6 million as of October 31, 2020 and January 31, 2020, respectively. Amortization expense related to capitalized costs was not material for the three and nine months ended October 31, 2020 and 2019. We have not recorded any material impairment charges during the periods presented. |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): October 31, January 31, 2020 2020 Servers and related equipment $ 348,945 $ 312,369 Leasehold improvements 80,536 79,979 Computer hardware 26,052 23,086 Furniture and fixtures 14,420 14,192 Construction in progress 11,605 18,370 Total property and equipment 481,558 447,996 Less: accumulated depreciation (307,937 ) (257,020 ) Total property and equipment, net $ 173,621 $ 190,976 |
Schedule of Operating Lease Right-of-Use Assets, Net | Operating lease right-of-use assets, net consisted of the following (in thousands): October 31, January 31, 2020 2020 Operating lease right-of-use assets $ 270,554 $ 233,255 Less: accumulated amortization (65,545 ) (35,449 ) Operating lease right-of-use assets, net $ 205,009 $ 197,806 |
Schedule of Other Long-Term Assets | Other long-term assets consisted of the following (in thousands): October 31, January 31, 2020 2020 Deposits, noncurrent $ 2,712 $ 2,726 Internally developed software costs, net of amortization (1) (2) 16,675 14,521 On-premises software, net of amortization (2) (3) 9,302 10,594 Other assets, noncurrent 4,590 4,140 Other long-term assets $ 33,279 $ 31,981 (1) Capitalized stock-based compensation expense, which is included in these amounts, was $5.9 million and $5.0 million as October 31, 2020 and January 31, 2020, respectively. (2) The accumulated amortization of capitalized software costs in the aggregate was $ 8.3 million and $ 1.7 million as of October 31, 2020 and January 31, 2020, respectively. Amortization expense related to capitalized software was $ 2.7 million and $ 6.7 million for the three and nine months ended October 31, 2020, respectively, and was not material for the three and nine months ended October 31, 2019. We have not recorded any material impairment charges during the periods presented. (3) The estimated useful lives of on-premises software range from three to four years. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
Leases [Abstract] | |
Summary of Components of Lease Cost, Supplemental Cash Flow Information and Supplemental Information Related to Remaining Lease Term and Discount Rate | The components of lease cost, which were included in operating expenses in our condensed consolidated statements of operations, were as follows (in thousands): Three Months Ended Nine Months Ended October 31, October 31, 2020 2019 2020 2019 Finance lease cost: Amortization of finance lease right-of-use assets $ 14,102 $ 11,713 $ 41,027 $ 29,823 Interest on finance lease liabilities 1,416 1,312 4,440 2,987 Operating lease cost, gross 13,552 12,300 40,095 36,533 Variable lease cost, gross 2,180 3,040 7,074 8,741 Sublease income (2,707 ) (2,741 ) (7,888 ) (8,327 ) Total lease cost (1) $ 28,543 $ 25,624 $ 84,748 $ 69,757 (1) Short-term lease cost was not material for the periods presented and is not included in the table above. Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended Nine Months Ended October 31, October 31, 2020 2019 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 16,121 $ 11,562 $ 44,276 $ 35,053 Operating cash flows for finance leases 1,456 802 4,962 2,531 Financing cash flows for finance leases 14,584 7,055 46,159 26,200 Right-of-use assets obtained in exchange of lease obligations (1) Operating leases $ 9,732 $ 1,016 $ 39,079 $ 230,371 Finance leases 6,072 40,530 29,148 84,950 (1) Amounts disclosed for the three and nine months ended October 31, 2019 include the adoption impact of ASC Topic 842 on the opening balance sheet as of February 1, 2019. Supplemental information related to the remaining lease term and discount rate was as follows: October 31, 2020 2019 Weighted-average remaining lease term (in years) Operating leases 5.93 6.84 Finance leases 2.55 3.07 Weighted-average discount rate Operating leases 5.26 % 5.41 % Finance leases 4.46 % 4.29 % |
Summary of Maturities of Operating and Finance Lease Liabilities | As of October 31, 2020, maturities of our operating and finance lease liabilities, which do not include short-term leases and variable lease payments, are as follows (in thousands): Fiscal years ending January 31: Operating Leases (1) Finance Leases Remainder of 2021 $ 15,157 $ 15,587 2022 59,867 51,192 2023 49,410 41,418 2024 47,927 19,022 2025 32,269 1,317 Thereafter 91,541 — Total lease payments $ 296,171 $ 128,536 Less: imputed interest (43,759 ) (7,408 ) Present value of total lease liabilities $ 252,412 $ 121,128 (1) Non-cancellable sublease proceeds for the remainder of the fiscal year ending January 31, 2021 and the fiscal years ending January 31, 2022, 2023, 2024, and 2025 of $1.9 million, $9.9 million, $8.3 million, $2.2 million, and $2.2 million, respectively, are not included in the table above. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Payments under Non-cancellable Contractual Purchases | As of October 31, 2020, future payments under non-cancellable contractual purchases, which were not recognized on our condensed consolidated balance sheet and relate primarily to infrastructure services and IT software and support services costs Fiscal years ending January 31: Remainder of 2021 $ 2,341 2022 13,092 2023 32,705 2024 2,340 2025 434 Thereafter 166,234 $ 217,146 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
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, 2020 8,772,585 $ 9.48 4.27 $ 60,221 Options granted 31,666 12.48 Options exercised (1,830,313 ) 5.39 Options forfeited/cancelled (182,213 ) 10.35 Balance as of October 31, 2020 6,791,725 $ 10.57 3.96 $ 42,880 Vested and expected to vest as of October 31, 2020 6,727,337 $ 10.49 3.92 $ 42,876 Exercisable as of October 31, 2020 5,455,872 $ 8.31 3.02 $ 42,803 |
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, 2020 21,808,107 $ 18.85 Granted 9,766,239 15.59 Vested, net of shares withheld for employee payroll taxes (4,057,217 ) 18.32 Forfeited/cancelled (2,838,306 ) 18.84 Unvested balance - October 31, 2020 24,678,823 $ 17.65 |
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, 2020 2019 2020 2019 Cost of revenue $ 4,731 $ 4,428 $ 13,673 $ 12,399 Research and development 14,581 16,653 46,139 44,878 Sales and marketing 10,619 9,250 31,364 28,644 General and administrative 7,903 7,427 24,262 21,004 Total stock-based compensation $ 37,834 $ 37,758 $ 115,438 $ 106,925 |
Summary of Estimated Fair Value of Employee Stock Options and 2015 ESPP | 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, 2020 2019 2020 2019 Employee Stock Options Expected term (in years) N/A N/A 5.8 5.5 - 5.8 Risk-free interest rate N/A N/A 0.6% 1.8% Volatility N/A N/A 46% 45% Dividend yield N/A N/A 0% 0% Employee Stock Purchase Plan Expected term (in years) 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 Risk-free interest rate 0.1% 1.7% - 1.9% 0.1% - 0.4% 1.7% - 2.5% Volatility 48% - 54% 34% - 47% 44% - 54% 34% - 55% Dividend yield 0% 0% 0% 0% |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
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, Nine Months Ended October 31, 2020 2019 2020 2019 Numerator: Net loss $ (5,284 ) $ (40,896 ) $ (38,490 ) $ (113,958 ) Denominator: Weighted-average number of shares outstanding—basic and diluted 157,465 148,555 154,734 146,997 Net loss per share—basic and diluted $ (0.03 ) $ (0.28 ) $ (0.25 ) $ (0.78 ) |
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, 2020 2019 2020 2019 Options to purchase common stock 4,769 5,880 5,472 7,709 Restricted stock units 16,820 17,006 17,509 16,477 Employee stock purchase plan 2,013 2,035 1,443 1,244 23,602 24,921 24,424 25,430 |
Description of Business and B_3
Description of Business and Basis of Presentation - Additional Information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | Jan. 31, 2020 | |
Credit Concentration Risk | Accounts Receivable | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Number of major customers | one | one | |||
Concentration risk percentage | 10.00% | 10.00% | |||
Customer Concentration Risk | Revenue | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Number of major customers | No | One | No | One | |
Concentration risk percentage | 10.00% | 10.00% | 10.00% | 10.00% | |
Geographic Concentration Risk | Revenue | United States | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Concentration risk percentage | 72.00% | 75.00% | 72.00% | 75.00% | |
Geographic Concentration Risk | Revenue | Japan | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Concentration risk percentage | 14.00% | 10.00% | 13.00% | ||
Geographic Concentration Risk | Property and Equipment | United States | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Concentration risk percentage | 95.00% | 94.00% |
Revenues - Additional Informati
Revenues - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | Jan. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |||||
Deferred revenue | $ 354.4 | $ 354.4 | $ 423.8 | ||
Deferred revenue, revenue recognized out of beginning balance | 159.7 | $ 141.5 | 363.2 | $ 315.9 | |
Remaining performance obligation, revenue expected to be recognized | $ 755.9 | $ 755.9 | |||
Revenue remaining performance obligation, percentage | 64.00% | 64.00% |
Revenues - Additional Informa_2
Revenues - Additional Information (Details 1) | Oct. 31, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-11-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets Subject to Fair Value (Details) - Recurring - USD ($) $ in Thousands | Oct. 31, 2020 | Jan. 31, 2020 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents | $ 109,723 | $ 63,558 |
Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 109,723 | 43,558 |
Certificates of Deposit | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 20,000 | |
Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 109,723 | 43,558 |
Level 1 | Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents | $ 109,723 | 43,558 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 20,000 | |
Level 2 | Certificates of Deposit | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents | $ 20,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - Interest Rate Swap $ in Millions | 9 Months Ended |
Oct. 31, 2020USD ($) | |
Derivative [Line Items] | |
Derivative, effective date | Sep. 5, 2019 |
Derivative, maturity period | 5 years |
Derivative, notional value | $ 30 |
Net unrealized loss of interest rate swap | $ 1.3 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Jan. 31, 2020 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |||
Prepaid expenses | $ 16,210 | $ 16,416 | |
Capitalized qualifying implementation costs incurred in a hosting arrangement that is a service contract, net of amortization | [1] | 1,637 | 1,202 |
Other current assets | 5,173 | 4,247 | |
Total prepaid expenses and other current assets | $ 23,020 | $ 21,865 | |
[1] | Capitalized stock-based compensation expense, which is included in these amounts, was not material for the periods presented. The accumulated amortization of the capitalized costs was $1.1 million and $0.6 million as of October 31, 2020 and January 31, 2020, respectively. Amortization expense related to capitalized costs was not material for the three and nine months ended October 31, 2020 and 2019. We have not recorded any material impairment charges during the periods presented. |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Prepaid Expenses and Other Current Assets (Parenthetical) (Details) - USD ($) $ in Millions | Oct. 31, 2020 | Jan. 31, 2020 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Accumulated amortization of capitalized costs | $ 1.1 | $ 0.6 |
Balance Sheet Components - Sc_3
Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Jan. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | $ 481,558 | $ 447,996 |
Less: accumulated depreciation | (307,937) | (257,020) |
Total property and equipment, net | 173,621 | 190,976 |
Servers and related equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 348,945 | 312,369 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 80,536 | 79,979 |
Computer hardware | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 26,052 | 23,086 |
Furniture and fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 14,420 | 14,192 |
Construction in progress | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | $ 11,605 | $ 18,370 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | Jan. 31, 2020 | |
Property Plant And Equipment [Line Items] | |||||
Accumulated depreciation of property and equipment acquired under finance lease | $ 138.9 | $ 138.9 | $ 98 | ||
Depreciation expense | 17.5 | $ 15.8 | 51.1 | $ 41.7 | |
Servers and related equipment | |||||
Property Plant And Equipment [Line Items] | |||||
Gross amount of property and equipment acquired under finance lease | 252.7 | 252.7 | 216.4 | ||
Depreciation expense | 14.1 | $ 11.7 | 41 | $ 29.8 | |
Construction in progress | |||||
Property Plant And Equipment [Line Items] | |||||
Gross amount of property and equipment acquired under finance lease | $ 8.2 | $ 8.2 | $ 16.3 |
Balance Sheet Components - Sc_4
Balance Sheet Components - Schedule of Operating Lease Right-of-Use Assets, Net (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Jan. 31, 2020 |
Balance Sheet Related Disclosures [Abstract] | ||
Operating lease right-of-use assets | $ 270,554 | $ 233,255 |
Less: accumulated amortization | (65,545) | (35,449) |
Operating lease right-of-use assets, net | $ 205,009 | $ 197,806 |
Balance Sheet Components - Sc_5
Balance Sheet Components - Schedule of Other Long-Term Assets (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Jan. 31, 2020 | |
Property Plant And Equipment [Line Items] | |||
Deposits, noncurrent | $ 2,712 | $ 2,726 | |
Internally developed software costs, net of amortization | [1],[2] | 16,675 | 14,521 |
Other assets, noncurrent | 4,590 | 4,140 | |
Other long-term assets | 33,279 | 31,981 | |
On-premises software | |||
Property Plant And Equipment [Line Items] | |||
Internally developed software costs, net of amortization | [1],[3] | $ 9,302 | $ 10,594 |
[1] | The accumulated amortization of capitalized software costs in the aggregate was $ 8.3 million and $ 1.7 million as of October 31, 2020 and January 31, 2020, respectively. Amortization expense related to capitalized software was $ 2.7 million and $ 6.7 million for the three and nine months ended October 31, 2020, respectively, and was not material for the three and nine months ended October 31, 2019. We have not recorded any material impairment charges during the periods presented. | ||
[2] | Capitalized stock-based compensation expense, which is included in these amounts, was $5.9 million and $5.0 million as October 31, 2020 and January 31, 2020, respectively. | ||
[3] | The estimated useful lives of on-premises software range from three to four years. |
Balance Sheet Components - Sc_6
Balance Sheet Components - Schedule of Other Long-Term Assets (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2020 | Jan. 31, 2020 | |
Property Plant And Equipment [Line Items] | |||
Capitalized stock-based compensation expenses | $ 5.9 | $ 5.9 | $ 5 |
Accumulated amortization of capitalized software costs | 8.3 | 8.3 | $ 1.7 |
Amortization expense related to capitalized software | $ 2.7 | $ 6.7 | |
On-premises software | Maximum | |||
Property Plant And Equipment [Line Items] | |||
Finite-lived intangible asset, estimated useful life | 4 years | ||
On-premises software | Minimum | |||
Property Plant And Equipment [Line Items] | |||
Finite-lived intangible asset, estimated useful life | 3 years |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 9 Months Ended | |
Oct. 31, 2020USD ($)FinanceLease | Oct. 31, 2019USD ($) | |
Lessee Lease Description [Line Items] | ||
Finance lease agreements term | 4 years | |
Sublease expiration year | 2025 | |
Number of finance leases not yet commenced | FinanceLease | 2 | |
Finance leases not yet commenced, description | These finance leases are expected to commence during the fourth quarter of fiscal year 2021 and as such, we did not reflect these leases on the condensed consolidated balance sheet as of October 31, 2020 and in the tables above. | |
Operating lease not yet commenced, description | We did not have any operating leases that have not yet commenced as of October 31, 2020. | |
Other Long-term Liabilities | ||
Lessee Lease Description [Line Items] | ||
Asset retirement obligation | $ | $ 3.1 | $ 2.8 |
Minimum | ||
Lessee Lease Description [Line Items] | ||
Operating lease expiration year | 2022 | |
Total lease term of sublease arrangement | 11 months | |
Finance leases has not yet commenced lease term | 1 year | |
Maximum | ||
Lessee Lease Description [Line Items] | ||
Operating lease expiration year | 2029 | |
Total lease term of sublease arrangement | 96 months | |
Finance leases has not yet commenced lease term | 3 years |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost Included In Operating Expenses in Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | ||
Finance lease cost: | |||||
Amortization of finance lease right-of-use assets | $ 14,102 | $ 11,713 | $ 41,027 | $ 29,823 | |
Interest on finance lease liabilities | 1,416 | 1,312 | 4,440 | 2,987 | |
Operating lease cost, gross | 13,552 | 12,300 | 40,095 | 36,533 | |
Variable lease cost, gross | 2,180 | 3,040 | 7,074 | 8,741 | |
Sublease income | (2,707) | (2,741) | (7,888) | (8,327) | |
Total lease cost | [1] | $ 28,543 | $ 25,624 | $ 84,748 | $ 69,757 |
[1] | Short-term lease cost was not material for the periods presented and is not included in the table above. |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | ||
Cash paid for amounts included in the measurement of lease liabilities | |||||
Operating cash flows for operating leases | $ 16,121 | $ 11,562 | $ 44,276 | $ 35,053 | |
Operating cash flows for finance leases | 1,456 | 802 | 4,962 | 2,531 | |
Financing cash flows for finance leases | 14,584 | 7,055 | 46,159 | 26,200 | |
Right-of-use assets obtained in exchange of lease obligations | |||||
Operating leases | [1] | 9,732 | 1,016 | 39,079 | 230,371 |
Finance leases | [1] | $ 6,072 | $ 40,530 | $ 29,148 | $ 84,950 |
[1] | Amounts disclosed for the three and nine months ended October 31, 2019 include the adoption impact of ASC Topic 842 on the opening balance sheet as of February 1, 2019. |
Leases - Summary of Information
Leases - Summary of Information Related to Remaining Lease Term and Discount Rate (Details) | Oct. 31, 2020 | Oct. 31, 2019 |
Leases [Abstract] | ||
Weighted average remaining lease term, Operating leases (in years) | 5 years 11 months 4 days | 6 years 10 months 2 days |
Weighted average remaining lease term, Finance leases (in years) | 2 years 6 months 18 days | 3 years 25 days |
Weighted average discount rate, Operating leases | 5.26% | 5.41% |
Weighted average discount rate, Finance leases | 4.46% | 4.29% |
Leases - Summary of Maturities
Leases - Summary of Maturities of Operating and Finance Lease Liabilities (Details) $ in Thousands | Oct. 31, 2020USD ($) | |
Leases [Abstract] | ||
Operating Leases, Remainder of 2021 | $ 15,157 | [1] |
Operating Leases, 2022 | 59,867 | [1] |
Operating Leases, 2023 | 49,410 | [1] |
Operating Leases, 2024 | 47,927 | [1] |
Operating Leases, 2025 | 32,269 | [1] |
Operating Leases, Thereafter | 91,541 | [1] |
Operating Leases, Total lease payments | 296,171 | [1] |
Less: Operating Leases imputed interest | (43,759) | [1] |
Operating Leases, Present value of total lease liabilities | 252,412 | [1] |
Finance Leases, Remainder of 2021 | 15,587 | |
Finance Leases, 2022 | 51,192 | |
Finance Leases, 2023 | 41,418 | |
Finance Leases, 2024 | 19,022 | |
Finance Leases, 2025 | 1,317 | |
Finance Leases, Total lease payments | 128,536 | |
Less: Finance Leases imputed interest | (7,408) | |
Finance Leases, Present value of total lease liabilities | $ 121,128 | |
[1] | Non-cancellable sublease proceeds for the remainder of the fiscal year ending January 31, 2021 and the fiscal years ending January 31, 2022, 2023, 2024, and 2025 of $1.9 million, $9.9 million, $8.3 million, $2.2 million, and $2.2 million, respectively, are not included in the table above. |
Leases - Summary of Maturitie_2
Leases - Summary of Maturities of Operating and Finance Lease Liabilities (Parenthetical) (Details) $ in Millions | Oct. 31, 2020USD ($) |
Leases [Abstract] | |
Non-cancellable sublease proceeds for the year ending January 31, 2021 | $ 1.9 |
Non-cancellable sublease proceeds for the year ending January 31, 2022 | 9.9 |
Non-cancellable sublease proceeds for the year ending January 31, 2023 | 8.3 |
Non-cancellable sublease proceeds for the year ending January 31, 2024 | 2.2 |
Non-cancellable sublease proceeds for the year ending January 31, 2025 | $ 2.2 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Jan. 31, 2020 |
Commitments And Contingencies [Line Items] | ||
Purchase obligation | $ 217,146 | |
Purchase obligation, due to be paid in 2021 | 2,341 | |
Purchase obligation, due to be paid in 2022 | 13,092 | |
Purchase obligation, due to be paid in 2023 | 32,705 | |
Purchase obligation, due to be paid in 2024 | 2,340 | |
Accounts Payable Accrued Expenses and Other Current Liabilities and Other Long Term Liabilities | ||
Commitments And Contingencies [Line Items] | ||
Purchase obligation | 15,300 | |
Purchase obligation, due to be paid in 2021 | 6,300 | |
Purchase obligation, due to be paid in 2022 | 3,300 | |
Purchase obligation, due to be paid in 2023 | 3,800 | |
Purchase obligation, due to be paid in 2024 | 1,900 | |
November 2017 Facility | Wells Fargo Bank | Secured Debt | Letters of Credit | ||
Commitments And Contingencies [Line Items] | ||
Letters of credit facility | $ 27,000 | $ 26,500 |
Commitments and Contingencies_2
Commitments and Contingencies - Future Payments under Non-cancellable Contractual Purchases (Details) $ in Thousands | Oct. 31, 2020USD ($) |
Purchase Obligation Fiscal Year Maturity [Abstract] | |
Remainder of 2021 | $ 2,341 |
2022 | 13,092 |
2023 | 32,705 |
2024 | 2,340 |
2025 | 434 |
Thereafter | 166,234 |
Purchase Obligation | $ 217,146 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Thousands | Jul. 12, 2019 | Nov. 27, 2017 | Oct. 31, 2020 | Oct. 31, 2020 | Apr. 30, 2020 |
Debt Instrument [Line Items] | |||||
Repayment of outstanding principal balance | $ 20,000 | $ 20,000 | |||
November 2017 Facility | Secured Debt | Wells Fargo Bank | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility maturity date | Jul. 12, 2022 | Nov. 27, 2020 | |||
Line of credit facility, finance leases and debt covenant limit | $ 200,000 | $ 100,000 | |||
November 2017 Facility | Revolving Credit Facility | Secured Debt | Wells Fargo Bank | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, termination date | Nov. 27, 2017 | ||||
Line of credit facility, maximum borrowing capacity | 100,000 | $ 85,000 | |||
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). | ||||
Line of credit facility additional amount drawn | $ 30,000 | ||||
Total debt outstanding with carrying amount | $ 50,000 | $ 50,000 | |||
Repayment of outstanding principal balance | $ 20,000 | ||||
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 | Letters of Credit | Secured Debt | Wells Fargo Bank | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity sublimit | $ 45,000 | $ 30,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Oct. 31, 2020 | Apr. 30, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | Jan. 31, 2020 | Jan. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Aggregate intrinsic value of exercised options | $ 25,400 | $ 4,500 | |||||
Aggregate estimated fair value of stock options granted to employees vested | $ 1,900 | $ 2,400 | |||||
Weighted-average grant date fair value of options granted to employees | $ 5.41 | $ 8 | |||||
Unrecognized stock-based compensation expense related to stock option | $ 2,500 | $ 2,500 | |||||
Remaining weighted-average period | 1 year 7 months 2 days | ||||||
Stock options outstanding | 6,791,725 | 6,791,725 | 8,772,585 | ||||
Unrecognized stock-based compensation expense | $ 3,900 | $ 3,900 | |||||
Share-based compensation expense | 37,834 | $ 37,758 | $ 115,438 | $ 106,925 | |||
Restricted Stock Units | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Remaining weighted-average period | 2 years 8 months 8 days | ||||||
Unrecognized stock-based compensation expense | 270,700 | $ 270,700 | |||||
Performance-Based Stock Options | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Unrecognized stock-based compensation expense related to stock option | $ 1,400 | $ 1,400 | |||||
Remaining weighted-average period | 2 years 1 month 2 days | ||||||
Employee Stock Option | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Dividend yield | 0.00% | 0.00% | |||||
2015 Equity Incentive Plan | Restricted Stock Units | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vesting period | 4 years | ||||||
2015 Equity Incentive Plan | Performance-Based Stock Options | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Stock options outstanding | 1,375,000 | 1,375,000 | |||||
2015 Equity Incentive Plan | Time-Based Stock Options | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vesting period | 4 years | ||||||
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 | 22,898,009 | 22,898,009 | 12,200,000 | ||||
2015 Employee Stock Purchase Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Percentage of eligible compensation allowed to employees to purchase shares at a discount | 15.00% | 15.00% | |||||
Description of offering period excluding initial offering period | 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 | $ 38,300 | $ 38,300 | |||||
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 | 1,288,378 | 1,288,378 | 2,500,000 | ||||
Fiscal 2020 Executive Bonus Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Share-based compensation expense | $ 1,500 | ||||||
Fiscal 2021 Executive Bonus Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Unrecognized stock-based compensation expense | $ 4,100 | $ 4,100 | |||||
Share-based compensation expense | $ 7,000 | ||||||
Equity incentive compensation description | The Fiscal 2021 Executive Bonus Plan provides opportunities for 100% equity incentive compensation payouts based on our actual achievement of pre-established corporate financial objectives, subject to review and a final approval by our Compensation Committee. | ||||||
Fiscal 2021 Executive Bonus Plan | Maximum | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Remaining weighted-average period | 1 year | ||||||
One Year from Vesting Commencement Date | 2015 Equity Incentive Plan | Restricted Stock Units | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vesting percentage | 25.00% | ||||||
One Year from Vesting Commencement Date | 2015 Equity Incentive Plan | Time-Based Stock Options | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vesting percentage | 25.00% | ||||||
Per Month after One Year of Vesting Commencement Date | 2015 Equity Incentive Plan | Restricted Stock Units | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vesting percentage | 6.25% | ||||||
Per Month after One Year of Vesting Commencement Date | 2015 Equity Incentive Plan | Time-Based Stock Options | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vesting percentage | 2.08% | ||||||
Per Quarter after One Year Of Vesting Commencement Date | 2015 Equity Incentive Plan | Restricted Stock Units | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vesting percentage | 6.25% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity Under Equity Incentive Plans and Related Information (Details) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Oct. 31, 2020USD ($)$ / sharesshares | Jan. 31, 2020USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Shares Subject to Options Outstanding, Beginning balance | shares | 8,772,585 | |
Shares Subject to Options Outstanding, Options granted | shares | 31,666 | |
Shares Subject to Options Outstanding, Options exercised | shares | (1,830,313) | |
Shares Subject to Options Outstanding, Options forfeited/cancelled | shares | (182,213) | |
Shares Subject to Options Outstanding, Ending balance | shares | 6,791,725 | 8,772,585 |
Shares Subject to Options Outstanding, Vested and expected to vest | shares | 6,727,337 | |
Shares Subject to Options Outstanding, Exercisable | shares | 5,455,872 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Weighted-Average Exercise Price, Beginning Balance | $ / shares | $ 9.48 | |
Weighted-Average Exercise Price, Options granted | $ / shares | 12.48 | |
Weighted-Average Exercise Price, Options exercised | $ / shares | 5.39 | |
Weighted-Average Exercise Price, Options forfeited/cancelled | $ / shares | 10.35 | |
Weighted-Average Exercise Price, Ending Balance | $ / shares | 10.57 | $ 9.48 |
Weighted-Average Exercise Price, Vested and expected to vest | $ / shares | 10.49 | |
Weighted-Average Exercise Price, Exercisable | $ / shares | $ 8.31 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted-Average Remaining Contractual Life (Years) | 3 years 11 months 15 days | 4 years 3 months 7 days |
Weighted-Average Remaining Contractual Life (Years), Vested and expected to vest | 3 years 11 months 1 day | |
Weighted-Average Remaining Contractual Life (Years), Exercisable | 3 years 7 days | |
Aggregate Intrinsic Value, Balance | $ | $ 42,880 | $ 60,221 |
Aggregate Intrinsic Value, Vested and expected to vest | $ | 42,876 | |
Aggregate Intrinsic Value, Exercisable | $ | $ 42,803 |
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, 2020$ / 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 | 21,808,107 |
Number of Restricted Stock Units/Awards Outstanding, Granted | shares | 9,766,239 |
Number of Restricted Stock Units, Vested, net of shares withheld for employee payroll taxes | shares | (4,057,217) |
Number of Restricted Stock Units/Awards Outstanding, Forfeited/cancelled | shares | (2,838,306) |
Number of Restricted Stock Units/Awards Outstanding Unvested Ending Balance | shares | 24,678,823 |
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 | $ 18.85 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 15.59 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 18.32 |
Weighted-Average Grant Date Fair Value, Forfeited/cancelled | $ / shares | 18.84 |
Weighted-Average Grant Date Fair Value, Unvested Ending Balance | $ / shares | $ 17.65 |
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, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 37,834 | $ 37,758 | $ 115,438 | $ 106,925 |
Cost of Revenue | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 4,731 | 4,428 | 13,673 | 12,399 |
Research and Development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 14,581 | 16,653 | 46,139 | 44,878 |
Sales and Marketing | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 10,619 | 9,250 | 31,364 | 28,644 |
General and Administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 7,903 | $ 7,427 | $ 24,262 | $ 21,004 |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of Estimated Fair Value of Employee Stock Options and 2015 ESPP (Details) | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
2015 Employee Stock Purchase Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Risk-free interest rate | 0.10% | |||
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Risk-free interest rate, Minimum | 1.70% | 0.10% | 1.70% | |
Risk-free interest rate, Maximum | 1.90% | 0.40% | 2.50% | |
Volatility, Minimum | 48.00% | 34.00% | 44.00% | 34.00% |
Volatility, Maximum | 54.00% | 47.00% | 54.00% | 55.00% |
2015 Employee Stock Purchase Plan | Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (in years) | 6 months | 6 months | 6 months | 6 months |
2015 Employee Stock Purchase Plan | Maximum | ||||
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 | |||
Risk-free interest rate | 0.60% | 1.80% | ||
Volatility | 46.00% | 45.00% | ||
Dividend yield | 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 | |||
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 |
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, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
Numerator: | ||||||||
Net loss | $ (5,284) | $ (7,656) | $ (25,550) | $ (40,896) | $ (36,234) | $ (36,828) | $ (38,490) | $ (113,958) |
Denominator: | ||||||||
Weighted-average number of shares outstanding—basic and diluted | 157,465 | 148,555 | 154,734 | 146,997 | ||||
Net loss per share—basic and diluted | $ (0.03) | $ (0.28) | $ (0.25) | $ (0.78) |
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, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 23,602 | 24,921 | 24,424 | 25,430 |
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 | 4,769 | 5,880 | 5,472 | 7,709 |
Restricted Stock Units | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 16,820 | 17,006 | 17,509 | 16,477 |
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 | 2,013 | 2,035 | 1,443 | 1,244 |
Restructuring - Additional Info
Restructuring - Additional Information (Details) $ in Thousands | 3 Months Ended |
Jan. 31, 2020USD ($) | |
Restructuring Cost And Reserve [Line Items] | |
Severance and other personnel-related costs | $ 1,650 |
Payments for restructuring | 600 |
Accrued Compensation and Employee Benefits | |
Restructuring Cost And Reserve [Line Items] | |
Accrued restructuring charge | $ 1,050 |
Segments - Additional Informati
Segments - Additional Information (Details) | 9 Months Ended |
Oct. 31, 2020Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |