Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Jan. 31, 2024 | Feb. 29, 2024 | Jul. 31, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 31, 2024 | ||
Current Fiscal Year End Date | --01-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-36121 | ||
Entity Registrant Name | Veeva Systems Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 20-8235463 | ||
Entity Address, Address Line One | 4280 Hacienda Drive | ||
Entity Address, City or Town | Pleasanton | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94588 | ||
City Area Code | 925 | ||
Local Phone Number | 452-6500 | ||
Title of 12(b) Security | Class A Common Stock,par value $0.00001 per share | ||
Trading Symbol | VEEV | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 29.7 | ||
Entity Common Stock, Shares Outstanding | 161,316,597 | ||
Documents Incorporated by Reference | Portions of the Registrant’s Proxy Statement for the 2024 Annual Meeting of Stockholders are incorporated herein by reference in Part III of this Form 10-K to the extent stated herein. The proxy statement will be filed by the Registrant with the Securities and Exchange Commission within 120 days after the end of the Registrant’s fiscal year ended January 31, 2024. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2024 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001393052 |
Audit Information
Audit Information | 12 Months Ended |
Jan. 31, 2024 | |
Audit Information [Abstract] | |
Auditor Firm ID | 185 |
Auditor Name | KPMG LLP |
Auditor Location | San Francisco, California |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 | |
Current assets: | |||
Cash and cash equivalents | $ 703,487 | $ 886,465 | |
Short-term investments | 3,324,269 | 2,216,163 | |
Accounts receivable, net of allowance for doubtful accounts of $520 and $469, respectively | 852,172 | 703,055 | |
Unbilled accounts receivable | 36,365 | 82,174 | |
Prepaid expenses and other current assets | 86,918 | 81,456 | |
Total current assets | 5,003,211 | 3,969,313 | |
Property and equipment, net | 58,532 | 49,817 | |
Deferred costs, net | 23,916 | 31,825 | |
Lease right-of-use assets | 45,602 | 55,336 | |
Goodwill | 439,877 | 439,877 | |
Intangible assets, net | 63,017 | 82,476 | |
Deferred income taxes | 233,463 | 136,697 | |
Other long-term assets | 43,302 | 38,955 | |
Total assets | 5,910,920 | 4,804,296 | |
Current liabilities: | |||
Accounts payable | 31,513 | 41,678 | |
Accrued compensation and benefits | 43,433 | 44,282 | |
Accrued expenses and other current liabilities | 32,980 | 35,306 | |
Income tax payable | 11,862 | 4,946 | |
Deferred revenue | 1,049,761 | 869,285 | |
Lease liabilities | 9,334 | 11,306 | |
Total current liabilities | 1,178,883 | 1,006,803 | |
Deferred income taxes | 2,052 | 1,492 | |
Lease liabilities, noncurrent | 46,441 | 49,670 | |
Other long-term liabilities | 38,720 | 30,079 | |
Total liabilities | 1,266,096 | 1,088,044 | |
Commitments and contingencies (note 14) | |||
Stockholders’ equity: | |||
Additional paid-in capital | 1,915,002 | 1,532,627 | |
Accumulated other comprehensive loss | (10,637) | (31,129) | |
Retained earnings | 2,740,457 | 2,214,752 | |
Total stockholders’ equity | 4,644,824 | 3,716,252 | |
Total liabilities and stockholders’ equity | 5,910,920 | 4,804,296 | |
Class A common stock | |||
Stockholders’ equity: | |||
Common stock | [1] | $ 2 | $ 2 |
Common stock, shares authorized (in shares) | 800,000,000 | 800,000,000 | |
Class B common stock | |||
Stockholders’ equity: | |||
Common stock | [1] | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 0 | 190,000,000 | |
[1] (1) Class B common stock was converted to Class A common stock on October 15, 2023. We refer to our Class A common stock as common stock. See note 11 Stockholders’ Equity. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Allowance for doubtful accounts | $ 520 | $ 469 |
Common stock, shares outstanding (in shares) | 161,260,172 | |
Class A common stock | ||
Common stock, par value (in usd per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 800,000,000 | 800,000,000 |
Common stock, shares issued (in shares) | 161,260,172 | 143,693,009 |
Common stock, shares outstanding (in shares) | 161,260,172 | 143,693,009 |
Class B common stock | ||
Common stock, par value (in usd per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 0 | 190,000,000 |
Common stock, shares issued (in shares) | 0 | 14,551,598 |
Common stock, shares outstanding (in shares) | 0 | 14,551,598 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | ||
Revenues: | ||||
Total revenues | $ 2,363,673 | $ 2,155,060 | $ 1,850,777 | |
Cost of revenues: | ||||
Total cost of revenues | [1] | 677,291 | 609,405 | 503,678 |
Gross profit | 1,686,382 | 1,545,655 | 1,347,099 | |
Operating expenses: | ||||
Research and development | [1] | 629,031 | 520,278 | 382,035 |
Sales and marketing | [1] | 381,472 | 348,691 | 288,061 |
General and administrative | [1] | 246,545 | 217,595 | 171,507 |
Total operating expenses | [1] | 1,257,048 | 1,086,564 | 841,603 |
Operating income | 429,334 | 459,091 | 505,496 | |
Other income, net | 158,689 | 50,005 | 6,815 | |
Income before income taxes | 588,023 | 509,096 | 512,311 | |
Provision for income taxes | 62,318 | 21,390 | 84,921 | |
Net income | $ 525,705 | $ 487,706 | $ 427,390 | |
Net income per share: | ||||
Basic (in usd per share) | $ 3.27 | $ 3.14 | $ 2.79 | |
Diluted (in usd per share) | $ 3.22 | $ 3 | $ 2.63 | |
Weighted-average shares used to compute net income per share: | ||||
Basic (in shares) | 160,532 | 155,385 | 153,251 | |
Diluted (in shares) | 163,486 | 162,437 | 162,277 | |
Other comprehensive income: | ||||
Net change in unrealized gain (loss) on available-for-sale investments, net of tax | $ 22,038 | $ (14,854) | $ (9,872) | |
Net change in cumulative foreign currency translation loss | (1,546) | (4,317) | (3,078) | |
Comprehensive income | 546,197 | 468,535 | 414,440 | |
Subscription services | ||||
Revenues: | ||||
Total revenues | 1,901,593 | 1,733,002 | 1,483,976 | |
Cost of revenues: | ||||
Total cost of revenues | [1] | 290,577 | 257,635 | 224,911 |
Professional services and other | ||||
Revenues: | ||||
Total revenues | 462,080 | 422,058 | 366,801 | |
Cost of revenues: | ||||
Total cost of revenues | [1] | $ 386,714 | $ 351,770 | $ 278,767 |
[1] (1) Includes stock-based compensation as follows: Cost of revenues: Cost of subscription services $ 6,483 $ 6,257 $ 4,795 Cost of professional services and other 53,237 50,341 36,293 Research and development 172,876 141,571 83,837 Sales and marketing 90,865 87,509 56,830 General and administrative 70,272 66,229 52,881 Total stock-based compensation $ 393,733 $ 351,907 $ 234,636 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Total stock-based compensation | $ 393,733 | $ 351,907 | $ 234,636 |
Cost of subscription services | |||
Total stock-based compensation | 6,483 | 6,257 | 4,795 |
Cost of professional services and other | |||
Total stock-based compensation | 53,237 | 50,341 | 36,293 |
Research and development | |||
Total stock-based compensation | 172,876 | 141,571 | 83,837 |
Sales and marketing | |||
Total stock-based compensation | 90,865 | 87,509 | 56,830 |
General and administrative | |||
Total stock-based compensation | $ 70,272 | $ 66,229 | $ 52,881 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Class A & B common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | ||
Beginning balance (in shares) at Jan. 31, 2021 | [1] | 152,056,808 | |||||
Beginning balance at Jan. 31, 2021 | $ 2,266,320 | $ 2 | [1] | $ 965,670 | $ 1,299,656 | $ 992 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock upon exercise of stock options (in shares) | [1] | 1,476,898 | |||||
Issuance of common stock upon exercise of stock options | 51,538 | 51,538 | |||||
Issuance of common stock upon vesting of restricted stock units (in shares) | [1] | 854,536 | |||||
Shares withheld related to net share settlement (in shares) | [1] | (191,645) | |||||
Shares withheld related to net share settlement | (56,398) | (56,398) | |||||
Stock-based compensation expense | 235,737 | 235,737 | |||||
Other comprehensive income (loss) | (12,950) | (12,950) | |||||
Net income | 427,390 | 427,390 | |||||
Ending balance (in shares) at Jan. 31, 2022 | [1] | 154,196,597 | |||||
Ending balance at Jan. 31, 2022 | 2,911,637 | $ 2 | [1] | 1,196,547 | 1,727,046 | (11,958) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock upon exercise of stock options (in shares) | [1] | 3,421,303 | |||||
Issuance of common stock upon exercise of stock options | 43,654 | 43,654 | |||||
Issuance of common stock upon vesting of restricted stock units (in shares) | [1] | 968,004 | |||||
Shares withheld related to net share settlement (in shares) | [1] | (341,297) | |||||
Shares withheld related to net share settlement | (63,654) | (63,654) | |||||
Stock-based compensation expense | 356,080 | 356,080 | |||||
Other comprehensive income (loss) | (19,171) | (19,171) | |||||
Net income | 487,706 | 487,706 | |||||
Ending balance (in shares) at Jan. 31, 2023 | [1] | 158,244,607 | |||||
Ending balance at Jan. 31, 2023 | $ 3,716,252 | $ 2 | [1] | 1,532,627 | 2,214,752 | (31,129) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock upon exercise of stock options (in shares) | 2,277,533 | 2,277,533 | [1] | ||||
Issuance of common stock upon exercise of stock options | $ 62,687 | 62,687 | |||||
Issuance of common stock upon vesting of restricted stock units (in shares) | [1] | 1,150,059 | |||||
Shares withheld related to net share settlement (in shares) | [1] | (412,027) | |||||
Shares withheld related to net share settlement | (79,825) | (79,825) | |||||
Stock-based compensation expense | 399,513 | 399,513 | |||||
Other comprehensive income (loss) | 20,492 | 20,492 | |||||
Net income | $ 525,705 | 525,705 | |||||
Ending balance (in shares) at Jan. 31, 2024 | 161,260,172 | 161,260,172 | [1] | ||||
Ending balance at Jan. 31, 2024 | $ 4,644,824 | $ 2 | [1] | $ 1,915,002 | $ 2,740,457 | $ (10,637) | |
[1] (1) Class B common stock was converted to Class A common stock on October 15, 2023. We refer to our Class A common stock as common stock. See note 11 Stockholders’ Equity. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Cash flows from operating activities | |||
Net income | $ 525,705 | $ 487,706 | $ 427,390 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 32,628 | 29,122 | 27,448 |
Reduction of operating lease right-of-use assets | 11,691 | 12,198 | 11,445 |
(Accretion) amortization of discount on short-term investments | (26,515) | (3,624) | 6,264 |
Stock-based compensation | 393,733 | 351,907 | 234,636 |
Amortization of deferred costs | 18,177 | 22,096 | 26,050 |
Deferred income taxes | (105,374) | (127,502) | 11,079 |
(Gain) loss on foreign currency from mark-to-market derivatives | (222) | 971 | (782) |
Bad debt expense | 693 | 256 | 272 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (149,810) | (72,177) | (67,020) |
Unbilled accounts receivable | 45,809 | (18,908) | (16,060) |
Deferred costs | (10,268) | (20,815) | (17,084) |
Prepaid expenses and other current and long-term assets | 414 | (47,399) | (2,910) |
Accounts payable | (10,230) | 21,429 | (2,997) |
Accrued expenses and other current liabilities | (4,249) | 9,276 | 9,439 |
Income taxes payable | 6,916 | (2,815) | 5,275 |
Deferred revenue | 188,164 | 140,472 | 116,144 |
Operating lease liabilities | (6,879) | (10,644) | (11,607) |
Other long-term liabilities | 956 | 8,921 | 7,481 |
Net cash provided by operating activities | 911,339 | 780,470 | 764,463 |
Cash flows from investing activities | |||
Purchases of short-term investments | (2,697,968) | (1,996,878) | (1,117,076) |
Maturities and sales of short-term investments | 1,647,813 | 1,002,707 | 792,918 |
Acquisitions, net of cash and restricted cash acquired | 0 | 0 | (7,780) |
Long-term assets | (26,196) | (13,512) | (14,214) |
Net cash used in investing activities | (1,076,351) | (1,007,683) | (346,152) |
Cash flows from financing activities | |||
Changes in lease liabilities - finance leases | 0 | 0 | (384) |
Proceeds from exercise of common stock options | 62,687 | 43,654 | 51,538 |
Taxes paid related to net share settlement of equity awards | (78,875) | (63,030) | (55,294) |
Net cash used in financing activities | (16,188) | (19,376) | (4,140) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (1,780) | (4,986) | (4,657) |
Net change in cash, cash equivalents, and restricted cash | (182,980) | (251,575) | 409,514 |
Cash, cash equivalents, and restricted cash at beginning of period | 889,650 | 1,141,225 | 731,711 |
Cash, cash equivalents, and restricted cash at end of period | 706,670 | 889,650 | 1,141,225 |
Cash, cash equivalents, and restricted cash at end of period: | |||
Cash and cash equivalents | 703,487 | 886,465 | 1,138,040 |
Restricted cash included in other long-term assets | 3,183 | 3,185 | 3,185 |
Total cash, cash equivalents, and restricted cash at end of period | 706,670 | 889,650 | 1,141,225 |
Supplemental disclosures of other cash flow information: | |||
Cash paid for income taxes, net of refunds | 134,473 | 167,952 | 58,627 |
Excess tax benefits from employee stock plans | 71,049 | 82,009 | 56,172 |
Non-cash investing activities: | |||
Changes in accounts payable and accrued expenses related to property and equipment purchases | $ 46 | $ (454) | $ (2,489) |
Summary of Business and Signifi
Summary of Business and Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Business and Significant Accounting Policies | Summary of Business and Significant Accounting Policies Description of Business Veeva is the leading provider of industry cloud solutions for the global life sciences industry. Our offerings span cloud software, data, analytics, professional services, and business consulting and are designed to meet the unique needs of our customers and their most strategic business functions—from research and development (R&D) through commercialization. Our solutions help life sciences companies develop and bring products to market faster and more efficiently, market and sell more effectively, and maintain compliance with government regulations. Our Commercial Solutions help life sciences companies achieve better, more intelligent engagement with healthcare professionals and healthcare organizations across multiple communication channels, and plan and execute more effective media and marketing campaigns. Our R&D Solutions for the clinical, quality, regulatory, and safety functions help life sciences companies streamline their end-to-end product development processes to increase operational efficiency and maintain regulatory compliance throughout the product life cycle. We also bring the benefits of our content and data management solutions to a set of customers outside of life sciences in the consumer product and chemical industries. Our fiscal year end is January 31. Principles of Consolidation and Basis of Presentation These consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding annual financial reporting and include the accounts of our wholly-owned subsidiaries after elimination of intercompany accounts and transactions. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates, judgments and assumptions that affect the consolidated financial statements and the notes thereto. These estimates are based on information available as of the date of the consolidated financial statements. On a regular basis, management evaluates these estimates and assumptions. Items subject to such estimates and assumptions include, but are not limited to: • the standalone selling price for each distinct performance obligation included in customer contracts with multiple performance obligations; • the determination of the period of benefit for amortization of deferred costs; • the realizability of deferred income tax assets; • the fair value of our stock-based awards. As future events cannot be determined with precision, actual results could differ significantly from those estimates. Segment Information Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assessing performance. We define the term “chief operating decision maker” to be our Chief Executive Officer. Our Chief Executive Officer reviews the financial information presented on a consolidated basis for purposes of allocating resources and evaluating our financial performance. Accordingly, we have determined that we operate in a single operating and reportable segment. Since we operate in one operating segment, all required financial segment information can be found in the consolidated financial statements. Revenue Recognition We derive our revenues primarily from subscription services and professional services. Subscription services revenues consist of fees from customers accessing our cloud-based software solutions and fees for our data solutions. Professional services and other revenues consist primarily of fees from implementation services, configuration, data services, business consulting, training, and managed services related to our solutions. Revenues are recognized when control of these services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those services. We determine revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when, or as, we satisfy a performance obligation. Subscription Services Revenues Subscription services revenues are recognized ratably over the respective non-cancellable subscription term because of the continuous transfer of control to the customer. Our subscription arrangements are considered service contracts, and the customer does not have the right to take possession of the software. Professional Services and Other Revenues The majority of our professional services arrangements are billed on a time and materials basis and revenues are recognized over time based on time incurred and contractually agreed upon rates. Certain professional services revenues are billed on a fixed fee basis and revenues are typically recognized over time as the services are delivered based on time incurred. Business consulting services, data services, and training revenues are generally recognized as the services are performed. Contracts with Multiple Performance Obligations Some of our contracts with customers contain multiple performance obligations. For these contracts, we account for individual performance obligations separately when they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. We determine the standalone selling prices based on our overall pricing objectives, taking into consideration market conditions and other factors, including other groupings such as customer type and geography. Deferred Costs Deferred costs represents sales commissions associated with obtaining a contract with a customer. These costs are deferred and then amortized over a period of benefit that we have determined to be three years. We determined the period of benefit by taking into consideration the expected renewal period of our customer contracts, our technology and other factors. Amortization expense is included in sales and marketing expenses in the accompanying consolidated statements of comprehensive income. Certain Risks and Concentrations of Credit Risk Our revenues are derived from subscription services, professional services and other services delivered primarily to the life sciences industry. We operate in markets that are highly competitive and rapidly changing. Significant technological changes, shifting customer needs, the emergence of competitive products or services with new capabilities, and other factors could negatively impact our future operating results. Our financial instruments that potentially subject us to concentration of credit risk consist primarily of cash and cash equivalents, short-term investments, and trade accounts receivable. Our cash equivalents and short-term investments are held by established financial institutions. We have established guidelines relative to credit ratings, diversification, and maturities that seek to maintain safety and liquidity. Deposits in these financial institutions may significantly exceed federally insured limits. We do not require collateral from our customers and generally require payment within 30 days to 60 days of billing. The following customers individually exceeded 10% of total accounts receivable as of the dates shown: January 31, 2024 2023 Customer 1 10.1% 11.4% Customer 2 N/A 10.7% No single customer represented over 10% of our total revenues for any of the years presented. Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Short-term Investments Our short-term investments are classified as available-for-sale and recorded at estimated fair value. Unrealized gains and losses for available-for-sale securities are included in accumulated other comprehensive income, a component of stockholders’ equity. We evaluate our investments to assess whether those with unrealized loss positions are other than temporarily impaired. We consider impairments to be other than temporary if they are related to deterioration in credit risk or if it is likely we will sell the securities before the recovery of their cost basis. Realized gains and losses and declines in value judged to be other than temporary are determined based on the specific identification method and are reported in other income, net, in the consolidated statements of comprehensive income. Interest, amortization of premiums, and accretion of discount on all short-term investments are also included as a component of other income, net, in the consolidated statements of comprehensive income. We may sell our short-term investments at any time, without significant penalty, for use in current operations or for other purposes, even if they have not yet reached maturity. As a result, we classify our investments, including securities with maturities beyond 12 months, as current assets in the accompanying consolidated balance sheets. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at the invoiced amount, net of allowance for doubtful accounts. Property and Equipment Property and equipment is stated at cost less accumulated depreciation. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets and commences once the asset is placed in service or ready for its intended use. Land is not depreciated. The estimated useful lives by asset classification are as follows: Building 30 years Building improvements Remaining useful life of the building Equipment and computers 3 years Furniture and fixtures 5 years Land improvements 10 years Leasehold improvements Shorter of remaining life of the lease term or estimated useful life Leases We have operating leases for corporate offices. Additionally, we are the sublessor for certain office space. We recognize lease right-of-use assets and liabilities at the commencement date based on the present value of lease payments over the lease term. We use an estimate of our discount rate based on the information available at the lease commencement date in determining the present value of lease payments, unless the implicit rate is readily determinable. The lease right-of-use assets also include any lease payments made and exclude lease incentives such as tenant improvement allowances. Options to extend or terminate the lease are included in the lease term when it is reasonably certain that we will exercise the extension or termination option. Our operating leases typically include non-lease components such as common-area maintenance costs. We have elected to exclude non-lease components from lease payments for the purpose of calculating lease right-of-use assets and liabilities and these variable lease payments are expensed as incurred. Leases with a term of one year or less are not recognized on our consolidated balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. Internal-Use Software We capitalize certain costs incurred for the development of computer software for internal use. We capitalize these costs during the development of the software project, when it is determined that it is probable that the project will be completed and the software will be used as intended. Costs related to preliminary project activities, post-implementation activities, training, and maintenance are expensed as incurred. Internal-use software is amortized on a straight-line basis over its estimated useful life of three years, and the amortization expense is recorded as a component of cost of subscription services. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Goodwill and Intangible Assets Goodwill is evaluated for impairment at least annually or more frequently if circumstances indicate that goodwill may be impaired. A qualitative assessment is performed to determine whether it is more likely than not that the fair value of its reporting unit is less than its carrying amount. If the reporting unit does not pass the qualitative assessment, the carrying amount of the reporting unit, including goodwill, is compared to fair value and goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value. Any excess of the carrying value of the goodwill above its fair value is recognized as an impairment loss. We have one reporting unit and evaluate goodwill for impairment at the entity level. We completed our annual impairment test in our fourth quarter of the fiscal year ended January 31, 2024. There were no goodwill impairment charges during any of the periods presented. Intangible assets associated with purchased intangibles, consisting of existing technology, customer relationships, trade names and trademarks, and data supplier and partner relationships are stated at cost less accumulated amortization and are amortized on a straight-line basis over their estimated remaining economic lives. Amortization expense related to existing technology and data supplier and partner relationships are included in cost of subscription services. Amortization expense related to customer relationships and trade names and trademarks are included in sales and marketing expense. Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, we first compare undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. There were no impairment charges recognized during any of the periods presented. Business Combinations The purchase price in a business combination is assigned to the estimated acquisition date fair values of the tangible and intangible assets acquired and the liabilities assumed with the residual recorded as goodwill. Critical estimates in valuing certain of the intangible assets include, but are not limited to, the net present value of future expected cash flows, future revenue growth, margins, customer retention rates, technology life, royalty rates, expected use of acquired assets, and discount rates. Stock-based Compensation We recognize compensation expense for all stock-based awards, including stock options and restricted stock units (RSUs), based on the estimate of fair value of the award at the grant date. The fair value of each option award is estimated on the grant date using either a Black-Scholes option-pricing model or a Monte Carlo simulation, to the extent market conditions exist, and a single option award approach. These models require that at the date of grant we determine the fair value of the underlying common stock, the expected term of the award, the expected volatility of the price of our common stock, risk-free interest rates, and expected dividend yield of our common stock. The fair value of each RSU award is measured based on the closing stock price of our common stock on the date of grant. We account for forfeitures as they occur. The compensation expense is recognized using a straight-line basis over the requisite service periods of the awards. Cost of Revenues Cost of subscription services revenues consists of expenses related to our computing infrastructure provided by third parties, including Salesforce, Inc. and Amazon Web Services, personnel-related costs associated with hosting our subscription services and providing support, including our data stewards, data acquisition costs, and costs of delivering our data solutions, allocated overhead, amortization expense associated with capitalized internal-use software, and amortization expense associated with purchased intangibles related to our subscription services. Cost of subscription services revenues for Veeva CRM and certain of our multichannel customer relationship management applications include fees paid to Salesforce, Inc. for our use of the Salesforce platform and the associated hosting infrastructure and data center operations that are provided by Salesforce, Inc. Cost of professional services and other revenues consists primarily of employee-related expenses associated with providing these services, including salaries, benefits and stock-based compensation expense, the cost of third-party subcontractors, travel costs, and allocated overhead. Advertising Expenses Advertising expenditures are expensed as incurred and were immaterial for each of the years presented. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We regularly assess the realizability of our deferred tax assets and establish a valuation allowance if it is more likely than not that some or all of our deferred tax assets will not be realized. We evaluate and weigh all available positive and negative evidence such as historic results, future reversals of existing deferred tax liabilities, projected future taxable income, as well as prudent and feasible tax-planning strategies. Generally, more weight is given to objectively verifiable evidence such as the cumulative income in recent years. We establish liabilities or reduce assets for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining whether the weight of available evidence indicates that it is more likely than not that the position will be sustained upon an audit, including resolution of related appeals or litigation processes, if any. The second step requires us to measure the tax benefit as the largest amount that is more likely than not to be realized upon ultimate settlement. We recognize interest accrued and penalties related to unrecognized tax benefits as a component of provision for income taxes. Foreign Currency Exchange Assets and liabilities of foreign subsidiaries that do not have U.S. dollars as their functional currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenues and expenses are translated at the average exchange rate during the period. Equity transactions are translated using historical exchange rates. The resulting translation adjustments are recorded as part of a separate component of the consolidated statements of comprehensive income. Foreign currency transaction gains and losses are included in the consolidated statements of comprehensive income for the period. Indemnification Our contracts generally include provisions for indemnifying customers against liabilities if our solutions infringe a third party’s intellectual property rights, and we may also incur liabilities if we breach the security and/or confidentiality obligations in our contracts. To date, we have not incurred any material costs, and we have not accrued any liabilities in the accompanying consolidated financial statements as a result of these obligations. Loss Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. Recently Adopted Accounting Pronouncements Business Combinations In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured in accordance with Topic 606, Revenue from Contracts with Customers, as if the acquirer had originated the contracts. Under the previous standard, such assets and liabilities were recognized by the acquirer at fair value on the acquisition date. We adopted the new standard effective February 1, 2023 and there was no impact to our consolidated financial statements for the fiscal year ended January 31, 2024. Reference Rate Reform In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides accounting relief from the future impact of the cessation of the London Interbank Offered Rate (LIBOR) by, among other things, providing optional expedients to treat contract modifications resulting from such reference rate reform as a continuation of the existing contract and for hedging relationships to not be de-designated as a result of such changes provided certain criteria are met. The guidance, along with the amendments within ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, that extended the period of time preparers can utilize the reference rate reform relief guidance in Topic 848, became effective on March 12, 2020, and the amendments apply prospectively through December 31, 2024. As of January 31, 2024, all of our contracts that previously referenced LIBOR have transitioned to an alternative rate, which did not have a material impact to our consolidated financial statements for the fiscal year ended January 31, 2024. New Accounting Pronouncements Issued and Not yet Adopted Improvements to Reportable Segment Disclosures In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This new standard is effective for our fiscal year beginning on February 1, 2024 and interim periods beginning on February 1, 2025 on a retrospective basis. We are currently evaluating this ASU to determine its impact on our disclosures. Improvements to Income Tax Disclosures In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires disaggregation of rate reconciliation categories and income taxes paid by jurisdiction, among other amendments. This new standard is effective for our fiscal year beginning on February 1, 2025 on a prospective basis and retrospective application is permitted. We are currently evaluating this ASU to determine its impact on our disclosures. |
Short-Term Investments
Short-Term Investments | 12 Months Ended |
Jan. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Short-Term Investments | Short-Term Investments As of January 31, 2024, short-term investments consisted of the following (in thousands): Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Available-for-sale securities: Certificates of deposits $ 94,210 $ 87 $ (14) $ 94,283 Asset-backed securities 605,852 2,916 (1,787) 606,981 Commercial paper 144,218 47 (20) 144,245 Corporate notes and bonds 1,581,382 8,835 (5,188) 1,585,029 Foreign government bonds 50,180 206 (180) 50,206 Municipal securities 79,404 301 (231) 79,474 U.S. agency obligations 49,372 232 (12) 49,592 U.S. treasury securities 717,015 1,268 (3,824) 714,459 Total available-for-sale securities $ 3,321,633 $ 13,892 $ (11,256) $ 3,324,269 As of January 31, 2023, short-term investments consisted of the following (in thousands): Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Available-for-sale securities: Certificates of deposits $ 37,998 $ 31 $ (66) $ 37,963 Asset-backed securities 448,081 585 (5,708) 442,958 Commercial paper 155,097 8 (580) 154,525 Corporate notes and bonds 1,224,195 1,649 (17,880) 1,207,964 Foreign government bonds 24,654 13 (516) 24,151 U.S. agency obligations 32,995 4 (594) 32,405 U.S. treasury securities 321,946 265 (6,014) 316,197 Total available-for-sale securities $ 2,244,966 $ 2,555 $ (31,358) $ 2,216,163 The following table summarizes the estimated fair value of our short-term investments, designated as available-for-sale and classified by the contractual maturity date of the securities as of the dates shown (in thousands): January 31, 2024 2023 Due in one year or less $ 919,871 $ 849,673 Due in greater than one year 2,404,398 1,366,490 Total $ 3,324,269 $ 2,216,163 The following table shows the fair values of available-for-sale securities which were in an unrealized loss position, aggregated by investment category, as of January 31, 2024 (in thousands): 12 months or less Greater than 12 months Fair value Gross unrealized losses Fair Gross Certificates of deposits $ 22,465 $ (14) $ — $ — Asset-backed securities 120,543 (343) 105,419 (1,444) Commercial paper 70,037 (20) — — Corporate notes and bonds 394,823 (1,560) 280,092 (3,628) Foreign government bonds 8,915 (19) 9,784 (161) Municipal securities 31,418 (122) 13,686 (109) U.S. agency obligations 1,795 (3) 4,991 (9) U.S. treasury securities 280,946 (1,227) 204,274 (2,597) The following table shows the fair values of available-for-sale securities which were in an unrealized loss position, aggregated by investment category, as of January 31, 2023 (in thousands): 12 months or less Greater than 12 months Fair value Gross unrealized losses Fair value Gross unrealized losses Certificates of deposits $ 15,934 $ (66) $ — $ — Asset-backed securities 293,854 (3,219) 78,279 (2,489) Commercial paper 144,741 (580) — — Corporate notes and bonds 604,264 (6,801) 370,969 (11,079) Foreign government bonds 11,284 (126) 11,827 (390) U.S. agency obligations 4,941 (61) 24,461 (533) U.S. treasury securities 210,246 (3,661) 63,422 (2,353) We have not recorded an allowance for credit losses as of January 31, 2024 and 2023, as we believe any such losses would be immaterial based on the high credit quality of our investments, and it is more likely than not that we will hold these securities until maturity or a recovery of the cost basis. |
Deferred Costs
Deferred Costs | 12 Months Ended |
Jan. 31, 2024 | |
Deferred Costs [Abstract] | |
Deferred Costs | Deferred Costs Deferred costs, which consist of deferred sales commissions, were $24 million and $32 million as of January 31, 2024 and January 31, 2023, respectively. Amortization expense for the deferred costs included in sales and marketing expenses in the consolidated statements of comprehensive income, was $18 million, $22 million, and $26 million for the fiscal years ended January 31, 2024, 2023, and 2022, respectively. There have been no impairment losses recorded in relation to the costs capitalized for any period presented. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Jan. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net consists of the following as of the dates shown (in thousands): January 31, 2024 2023 Land $ 3,040 $ 3,040 Building 20,984 20,984 Land improvements and building improvements 22,392 22,392 Equipment and computers 2,551 2,233 Furniture and fixtures 15,498 13,995 Leasehold improvements 30,793 18,986 Construction in progress 31 302 95,289 81,932 Less accumulated depreciation (36,757) (32,115) Total property and equipment, net $ 58,532 $ 49,817 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Jan. 31, 2024 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill was $440 million as of both January 31, 2024 and January 31, 2023. The following schedule presents the details of intangible assets as of January 31, 2024 (dollar amounts in thousands): January 31, 2024 Gross carrying amount Accumulated amortization Net Remaining useful life (in years) Existing technology $ 28,580 $ (20,646) $ 7,934 2.0 Customer relationships 113,157 (61,755) 51,402 5.3 Trade name and trademarks 13,900 (11,925) 1,975 0.8 Other intangibles 21,405 (19,699) 1,706 2.2 Total intangible assets $ 177,042 $ (114,025) $ 63,017 The following schedule presents the details of intangible assets as of January 31, 2023 (dollar amounts in thousands): January 31, 2023 Gross Accumulated Net Remaining Existing technology $ 28,580 $ (16,418) $ 12,162 2.9 Customer relationships 113,157 (50,293) 62,864 6.1 Trade name and trademarks 13,900 (9,285) 4,615 1.8 Other intangibles 21,405 (18,570) 2,835 3.0 Total intangible assets $ 177,042 $ (94,566) $ 82,476 Amortization expense associated with intangible assets was $19 million for all the fiscal years ended January 31, 2024, 2023, and 2022. As of January 31, 2024, the estimated amortization expense for intangible assets, for the next five years and thereafter is as follows (in thousands): Fiscal 2025 $ 18,557 Fiscal 2026 14,147 Fiscal 2027 8,922 Fiscal 2028 7,778 Fiscal 2029 7,782 Thereafter 5,831 Total $ 63,017 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Jan. 31, 2024 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consisted of the following as of the dates shown (in thousands): January 31, 2024 2023 Accrued commissions $ 9,848 $ 11,240 Accrued bonus 3,481 3,484 Accrued vacation (1) 7,375 6,653 Payroll tax payable 13,829 16,229 Accrued other compensation and benefits 8,900 6,676 Total accrued compensation and benefits $ 43,433 $ 44,282 Accrued fees payable to Salesforce, Inc. $ 6,562 $ 6,653 Taxes payable 7,632 9,197 Accrued third-party professional services subcontractors' fees 1,298 2,597 Other accrued expenses 17,488 16,859 Total accrued expenses and other current liabilities $ 32,980 $ 35,306 (1) Represents accrued vacation primarily for international employees. Vacation does not accrue for most U.S. employees. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The carrying amounts of accounts receivable and other current assets, accounts payable, and accrued liabilities approximate their fair value due to their short-term nature. Financial assets and liabilities recorded at fair value in the consolidated financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, which are directly related to the amount of subjectivity associated with the inputs to the valuation of these assets or liabilities are as follows: Level 1—Observable inputs, such as quoted prices in active markets for identical assets or liabilities. Level 2—Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Financial assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires management to make judgments and considers factors specific to the asset or liability. The following table presents the fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis as of January 31, 2024 (in thousands): Level 1 Level 2 Total Assets Cash equivalents: Money market funds $ 73,197 $ — $ 73,197 U.S. Treasury securities — 9,969 9,969 Short-term investments: Certificates of deposits — 94,283 94,283 Asset-backed securities — 606,981 606,981 Commercial paper — 144,245 144,245 Corporate notes and bonds — 1,585,029 1,585,029 Foreign government bonds — 50,206 50,206 Municipal securities — 79,474 79,474 U.S. agency obligations — 49,592 49,592 U.S. Treasury securities — 714,459 714,459 Foreign currency derivative contracts — 616 616 Total financial assets $ 73,197 $ 3,334,854 $ 3,408,051 Liabilities Foreign currency derivative contracts $ — $ (232) $ (232) Total financial liabilities $ — $ (232) $ (232) The following table presents the fair value hierarchy for financial assets measured at fair value on a recurring basis as of January 31, 2023 (in thousands): Level 1 Level 2 Total Assets Cash equivalents: Money market funds $ 180,895 $ — $ 180,895 U.S. Treasury securities — 22,929 22,929 Corporate notes and bonds — 6,691 6,691 Short-term investments: Certificates of deposits — 37,963 37,963 Asset-backed securities — 442,958 442,958 Commercial paper — 154,525 154,525 Corporate notes and bonds — 1,207,964 1,207,964 Foreign government bonds — 24,151 24,151 U.S. agency obligations — 32,405 32,405 U.S. Treasury securities — 316,197 316,197 Foreign currency derivative contracts — 251 251 Total financial assets $ 180,895 $ 2,246,034 $ 2,426,929 We determine the fair value of our security holdings based on pricing from our service providers and market prices from industry-standard independent data providers. The valuation techniques used to measure the fair value of financial instruments having Level 2 inputs were derived from non-binding consensus prices that are corroborated by observable market data or quoted market prices for similar instruments. Such market prices may be quoted prices in active markets for identical assets (Level 1 inputs) or pricing determined using inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs). Balance Sheet Hedges We enter into foreign currency forward contracts in order to hedge our foreign currency exposure. These forward contracts are not designated as hedging instruments under applicable accounting guidance, and therefore, we account for them at fair value with changes in the fair value recorded as a component of other income, net in our consolidated statements of comprehensive income. Cash flows from such forward contracts are classified as operating activities. The realized foreign currency gains were not material for the fiscal years ended January 31, 2024, 2023, and 2022. The fair value of our outstanding derivative instruments is summarized below (in thousands): January 31, 2024 2023 Notional amount of foreign currency derivative contracts $ 201,407 $ 137,998 Fair value of foreign currency derivative contracts $ 201,024 $ 137,860 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income before income taxes by U.S. and foreign jurisdictions were as follows for the periods shown (in thousands): Fiscal year ended January 31, 2024 2023 2022 United States $ 546,837 $ 482,885 $ 487,962 Foreign 41,186 26,211 24,349 Total $ 588,023 $ 509,096 $ 512,311 The majority of our revenues from international sales are invoiced from and collected by our U.S. entity and recognized as a component of income before taxes in the United States as opposed to a foreign jurisdiction. Provision for income taxes consisted of the following for the periods shown (in thousands): Fiscal year ended January 31, 2024 2023 2022 Current provision: Federal $ 126,174 $ 110,610 $ 53,426 State 29,361 29,775 12,580 Foreign 12,157 8,507 7,837 Total current provision 167,692 148,892 73,843 Deferred (benefit) provision: Federal (87,651) (98,923) 1,870 State (15,739) (20,755) 945 Foreign (1,984) (7,824) 8,264 Total deferred (benefit) provision (105,374) (127,502) 11,079 Provision for income taxes $ 62,318 $ 21,390 $ 84,921 Provision for income taxes differed from the amount computed by applying the federal statutory income tax rate of 21% for each of the fiscal years ended January 31, 2024, 2023, and 2022 to income before income taxes as a result of the following for the periods shown (in thousands): Fiscal year ended January 31, 2024 2023 2022 Expected provision at statutory tax rate $ 123,485 $ 106,910 $ 107,585 State taxes, net of federal benefit 12,056 7,318 11,035 Tax credits (36,333) (33,463) (25,968) Stock-based compensation (32,054) (52,304) (29,715) Valuation allowance 13,572 5,654 19,402 Foreign derived intangible income deduction (FDII) (15,489) (15,811) (3,406) Release of income tax reserves (1) (9,201) (293) (440) Other (1) 6,282 3,379 6,428 Provision for income taxes $ 62,318 $ 21,390 $ 84,921 (1) Prior period balances were adjusted to conform with current period presentation. The tax effects of temporary differences that give rise to significant portions of our deferred tax assets and liabilities related to the following (in thousands): January 31, 2024 2023 Deferred tax assets: Accruals and reserves $ 9,488 $ 13,137 Capitalized expenditures 228,845 123,746 Stock-based compensation 49,710 32,536 Net operating loss carryforward 6,469 12,245 Tax credit carryforward 65,307 43,732 Lease liabilities 13,967 15,724 Other 2,403 7,890 Gross deferred tax assets 376,189 249,010 Valuation allowance (79,056) (51,685) Total deferred tax assets 297,133 197,325 Deferred tax liabilities: Intangible assets (27,019) (28,799) Lease right-of-use assets (11,410) (14,192) Deferred costs (6,242) (12,949) Other (21,051) (6,180) Total deferred tax liabilities (65,722) (62,120) Net deferred tax assets $ 231,411 $ 135,205 In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The valuation allowance at the end of January 31, 2024 was primarily related to certain foreign and U.S. state deferred tax assets. As of January 31, 2024, the net operating loss carryforwards for state and foreign income tax purposes were approximately $25 million and $18 million, respectively, and will begin to expire in 2031 and 2026, respectively. As of January 31, 2024, we had $3 million of federal and state capital loss carryforwards available to offset future capital gains. The federal and state capital losses begin to expire in 2029. As of January 31, 2024, we had $78 million of California research and development tax credits available to offset future taxes which do not expire. 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 classify unrecognized tax benefits that are not expected to result in payment or receipt of cash within one year as “other non-current liabilities” in the consolidated balance sheets. As of January 31, 2024, the total amount of gross unrecognized tax benefits was $40 million, of which $26 million, if recognized, would favorably impact our effective tax rate. The aggregate changes in our total gross amount of unrecognized tax benefits are summarized as follows for the periods shown (in thousands): Fiscal year ended January 31, 2024 2023 2022 Beginning balance $ 30,713 $ 25,241 $ 18,628 Increases related to tax positions taken during the prior period 7,385 971 3,218 Increases related to tax positions taken during the current period 10,131 4,934 4,122 Decreases related to tax positions taken during the prior period (17) (137) — Audit settlements — — (195) Lapse of statute of limitations (8,475) (296) (532) Ending balance $ 39,737 $ 30,713 $ 25,241 Our policy is to classify interest and penalties associated with unrecognized tax benefits as a component of the provision for income taxes. Accrued interest and penalties included in our liability related to unrecognized tax benefits were $2 million, $3 million, and $2 million as of January 31, 2024, 2023, and 2022, respectively. We file tax returns in the United States for federal, California, and other states. Fiscal years ended January 31, 2021 and forward remain open to examination for federal income tax, and fiscal years ended January 31, 2018 and forward remain open to examination for California and other states. We file tax returns in multiple foreign jurisdictions. The fiscal years ended January 31, 2019 and forward remain open to examination in these foreign jurisdictions. |
Deferred Revenue, Performance O
Deferred Revenue, Performance Obligations, and Unbilled Accounts Receivable | 12 Months Ended |
Jan. 31, 2024 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Deferred Revenue, Performance Obligations, and Unbilled Accounts Receivable | Deferred Revenue, Performance Obligations, and Unbilled Accounts Receivable Of the beginning deferred revenue balance for the respective periods, we recognized $833 million, $708 million, and $605 million of subscription services revenue during the fiscal years ended January 31, 2024, 2023, and 2022, respectively. Professional services revenue recognized in the same periods from the deferred revenue balances at the beginning of the respective periods was immaterial. Transaction Price Allocated to the Remaining Performance Obligations Transaction price allocated to the remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and non-cancellable amounts that will be invoiced and recognized in future periods. Since February 1, 2023, our master subscription agreements that govern multi-year orders generally include a termination for convenience (TFC) right for our customers resulting in the non-cancellable contractual term of most of our subscription services contracts to be one year or less. Based on this change, as of January 31, 2024, we have elected to apply the exemption to not disclose the transaction price allocated to remaining performance obligations for all subscription services contracts with a contract term of one year or less, consistent with our election to not disclose the transaction price allocated to remaining performance obligations related to professional services contracts. As of January 31, 2024, the amount of the transaction price allocated to remaining performance obligations for non-cancellable subscription services contracts greater than one year was not significant with the substantial majority of such allocated transaction price included in deferred revenue and expected to be recognized over the next 12 months. Unbilled Accounts Receivable As of January 31, 2024 unbilled accounts receivable consists of (i) a receivable of $32 million primarily for the revenue recognized for professional services performed but not yet billed and (ii) a contract asset of $4 million primarily related to professional services performed but for which we are not contractually able to invoice until a future period. As of January 31, 2023, unbilled accounts receivable consists of (i) a receivable of $32 million primarily for the revenue recognized for professional services performed but not yet billed and (ii) a contract asset of $50 million primarily for revenue recognized from non-cancellable, multi-year orders in which fees increase annually but for which we are not contractually able to invoice until a future period. |
Leases
Leases | 12 Months Ended |
Jan. 31, 2024 | |
Leases [Abstract] | |
Leases | Leases We have operating leases for our corporate offices. Our leases have various expiration dates through 2034, some of which include options to extend the leases for up to seven years. Additionally, we are the sublessor for certain office space. Our sublease income for the fiscal years ended January 31, 2024, 2023, and 2022 was immaterial. For the fiscal years ended January 31, 2024, 2023, and 2022, our operating lease expense was $16 million, $16 million, and $14 million, respectively. Supplemental cash flow information related to leases was as follows (in thousands): Fiscal year ended January 31, 2024 2023 Cash paid for operating lease liabilities $ 10,291 $ 12,908 Operating lease right-of-use assets obtained in exchange for new operating lease liabilities $ 3,700 $ 14,488 Supplemental balance sheet information related to operating leases was as follows (in thousands, except lease term and discount rate): January 31, 2024 2023 Weighted Average Remaining Lease Term 6.6 years 6.7 years Weighted Average Discount Rate 4.4 % 4.2 % As of January 31, 2024, remaining maturities of operating lease liabilities are as follows (in thousands): Fiscal 2025 $ 10,213 Fiscal 2026 10,710 Fiscal 2027 9,798 Fiscal 2028 9,116 Fiscal 2029 6,553 Thereafter 19,348 Total operating lease payments 65,738 Less imputed interest 9,963 Total operating lease liabilities $ 55,775 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jan. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Automatic Conversion On October 15, 2023, all of our outstanding shares of Class B common stock automatically converted into the same number of shares of Class A common stock pursuant to the terms of our then effective Amended and Restated Certificate of Incorporation. No additional shares of Class B common stock have been or will be issued following the conversion. On October 16, 2023, we filed a certificate with the Secretary of State of the State of Delaware effecting the retirement and cancellation of our Class B common stock. This certificate of retirement had the additional effect of eliminating the authorized Class B shares, thereby reducing our total number of authorized shares of capital stock from 1,000,000,000 to 810,000,000. Of these shares, 800,000,000 are authorized Class A common stock and 10,000,000 are authorized preferred stock. On October 16, 2023, we also filed an Amended and Restated Certificate of Incorporation to reflect the conversion and remove references to Class B common stock. Accordingly, we refer to our Class A common stock as common stock. Holders of common stock are entitled to one vote per share on all matters submitted to a vote of stockholders. Common Stock As of January 31, 2024, we had 161,260,172 shares of common stock outstanding. As of January 31, 2023, we had 143,693,009 shares of Class A common stock and 14,551,598 shares of Class B common stock outstanding. Employee Equity Plans Beginning in the fiscal quarter ended April 30, 2019, we implemented an equity compensation program applicable to the vast majority of our employees but not applicable to our Chief Executive Officer (CEO). Prior to the adoption of the new equity compensation program, at the time of hire, our employees received a grant of RSUs that vested quarterly over 4 years and received additional equity from time to time thereafter. Under the new equity compensation program, the vast majority of our employees are granted both RSUs, which typically vest over a one-year period, and stock options, which typically vest over a four-year period. 2012 Equity Incentive Plan Our board of directors adopted our 2012 Equity Incentive Plan (2012 EIP) in November 2012, and our stockholders approved it in December 2012. An amendment and restatement of the 2012 EIP was approved by our board of directors in March 2013, and our stockholders approved it in March 2013. The 2012 EIP became effective on adoption and replaced our 2007 Plan. No further awards have been made under our 2012 EIP since the adoption of the 2013 Equity Incentive Plan. 2013 Equity Incentive Plan Our board of directors adopted our 2013 Equity Incentive Plan in August 2013, and our stockholders approved it in September 2013. The 2013 Equity Incentive Plan became effective immediately on adoption although no awards were made under it until the date of our IPO on October 15, 2013, at which time our 2013 Equity Incentive Plan replaced our 2012 EIP. Our board of directors approved the amended and restated 2013 Equity Incentive Plan (as amended and restated, 2013 EIP) in March 2022, and our stockholders approved it in June 2022, at which time the amended and restated 2013 EIP took effect. As of January 31, 2024, the number of shares of our common stock available for issuance under the 2013 EIP was 45,510,340. The number of shares available for issuance under the 2013 EIP automatically increases on the first business day of each of our fiscal years, commencing in 2014, by a number equal to the least of (a) 13.75 million shares, (b) 5% of the shares of our common stock outstanding on the last business day of the prior fiscal year, or (c) the number of shares determined by our board of directors. During our fiscal year ended January 31, 2024, our board of directors determined to add 7,912,230 shares of common stock to the 2013 EIP. 2013 Employee Stock Purchase Plan Our Employee Stock Purchase Plan (ESPP) was adopted by our board of directors in August 2013 and our stockholders approved it in September 2013. The ESPP became effective as of our IPO registration statement on Form S-1, on October 15, 2013. Our ESPP is intended to qualify under Section 423 of the Internal Revenue Code of 1986, as amended (Code). The ESPP was approved with a reserve of 4 million shares of common stock for future issuance under various terms provided for in the ESPP. As of January 31, 2024, the number of shares available for issuance under our ESPP was 4,897,856. The number of shares available for issuance under the ESPP automatically increases on the first business day of each of our fiscal years, commencing in 2014, by a number equal to the least of (a) 2.2 million shares, (b) 1% of the shares of our common stock outstanding on the last business day of the prior fiscal year or (c) the number of shares determined by our board of directors. During our fiscal year ended January 31, 2024, our board of directors determined no additional shares were to be made available for issuance under the ESPP. During active offering periods, our ESPP permits eligible employees to acquire shares of our common stock at 85% of the lower of the fair market value of our common stock on the first day of the applicable offering period or the fair market value of our common stock on the purchase date. Participants may purchase shares of common stock through payroll deductions of up to 15% of their eligible compensation, subject to any plan limitations. The initial offering period for our ESPP commenced on the date of our initial public offering and ended on June 15, 2014. We have not had any open offering periods subsequent to the initial offering period. Stock Option Activity The 2012 EIP provided, and the 2013 EIP provides, for the issuance of incentive and nonstatutory options to employees, consultants and non-employee directors. Options issued under the 2012 EIP and 2013 EIP generally are exercisable for periods not to exceed 10 years and generally vest over four years, with certain options vesting over five Number of shares Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate Options outstanding at January 31, 2023 11,503,409 $ 128.62 5.9 $ 705 Options granted 2,511,610 180.59 Options exercised (2,277,533) 27.52 Options forfeited/cancelled (589,676) 200.03 Options outstanding at January 31, 2024 11,147,810 $ 157.20 6.7 $ 626 Options vested and exercisable at January 31, 2024 4,962,412 $ 123.63 5.1 $ 449 Options vested and exercisable at January 31, 2024 and expected to vest thereafter 11,147,810 $ 157.20 6.7 $ 626 The options granted during the fiscal year ended January 31, 2024 were predominantly made in connection with our annual performance review cycle. The weighted average grant-date fair value of options granted was $81.17, $88.25, and $108.42 for the fiscal years ended January 31, 2024, 2023, and 2022, respectively. As of January 31, 2024, there was $343 million in unrecognized compensation cost related to unvested stock options granted under the 2012 Equity Incentive Plan and 2013 Equity Incentive Plan. This cost is expected to be recognized over a weighted average period of 2.2 years. As of January 31, 2024, we had authorized and unissued shares of common stock sufficient to satisfy exercises of stock options. Our closing stock price as reported on the New York Stock Exchange as of January 31, 2024, the last trading day of fiscal year 2024 was $207.41. The total intrinsic value of options exercised was approximately $353 million for the fiscal year ended January 31, 2024. Stock Option Valuation Assumptions The following table presents the weighted-average assumptions used to estimate the grant date fair value of options granted during the periods presented: Fiscal year ended January 31, 2024 2023 2022 Volatility 39% - 41% 37% - 40% 37% - 39% Expected term (in years) 6.25 - 7.00 6.00 - 7.00 6.25 Risk-free interest rate 3.34% - 4.73% 1.90% - 4.20% 0.70% - 1.60% Dividend yield —% —% —% Restricted Stock Units The 2013 EIP provides for the issuance of RSUs to employees. RSUs issued under the 2013 EIP generally vest over a period of one Unreleased restricted stock units Weighted average grant date fair value Balance at January 31, 2023 1,103,679 $ 194.36 RSUs granted 1,181,528 180.78 RSUs vested (1,150,059) 182.95 RSUs forfeited / cancelled (123,417) 183.81 Balance at January 31, 2024 1,011,731 192.77 As of January 31, 2024, there was a total of $122 million in unrecognized compensation cost related to unvested RSUs. This cost is expected to be recognized over a weighted-average period of approximately 1.6 years. The total intrinsic value of RSUs vested was $223 million for the fiscal year ended January 31, 2024. |
Other Income
Other Income | 12 Months Ended |
Jan. 31, 2024 | |
Other Income and Expenses [Abstract] | |
Other Income | Other Income Other income, net, consisted of the following (in thousands): Fiscal year ended January 31, 2024 2023 2022 Foreign currency gain (loss) $ 124 $ 591 $ (714) Accretion (amortization) on investments 24,817 2,982 (7,201) Interest income, net 133,748 45,860 14,730 Miscellaneous income — 572 — Other income, net $ 158,689 $ 50,005 $ 6,815 |
Net Income per Share
Net Income per Share | 12 Months Ended |
Jan. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net Income per Share | Net Income per Share Basic net income per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted-average shares outstanding, including potentially dilutive shares of common equivalents outstanding during the period. The dilutive effect of potential shares of common stock are determined using the treasury stock method. On October 15, 2023, all of our outstanding shares of Class B common stock automatically converted into the same number of shares of Class A common stock pursuant to the terms of our then effective Amended and Restated Certificate of Incorporation. See note 11 Stockholders’ Equity for additional details related to the conversion of Class B common stock. Because shares of Class B common stock were outstanding for a portion of the fiscal year ended January 31, 2024, we have disclosed earnings per share for Class A and Class B common stock for the fiscal year January 31, 2024. For the fiscal year ended January 31, 2024, 2023, and 2022 the computation of fully diluted net income per share of Class A common stock assumes the conversion from Class B common stock, while the fully diluted net income per share of Class B common stock does not assume the conversion of those shares. The numerators and denominators of the basic and diluted net income per share computations for our common stock are calculated as follows (in thousands, except per share data): Fiscal year ended January 31, 2024 2023 2022 Class A Class B (1) Class A Class B Class A Class B Basic Numerator Net income, basic $ 491,747 $ 33,958 $ 441,425 $ 46,281 $ 386,180 $ 41,210 Denominator Weighted average shares used in computing net income per share, basic 150,162 10,370 140,640 14,745 138,474 14,777 Net income per share, basic $ 3.27 $ 3.27 $ 3.14 $ 3.14 $ 2.79 $ 2.79 Diluted Numerator Net income, basic $ 491,747 $ 33,958 $ 441,425 $ 46,281 $ 386,180 $ 41,210 Reallocation as a result of conversion of Class B to Class A common stock: Net income, basic 33,958 — 46,281 — 41,210 — Reallocation of net income to Class B common stock — 8,887 — 19,163 — 21,480 Net income, diluted $ 525,705 $ 42,845 $ 487,706 $ 65,444 $ 427,390 $ 62,690 Denominator Number of shares used for basic net income per share computation 150,162 10,370 140,640 14,745 138,474 14,777 Conversion of Class B to Class A common stock 10,370 — 14,745 — 14,777 — Effect of potentially dilutive common shares 2,954 2,954 7,052 7,052 9,026 9,026 Weighted average shares used in computing net income per share, diluted 163,486 13,324 162,437 21,797 162,277 23,803 Net income per share, diluted $ 3.22 $ 3.22 $ 3.00 $ 3.00 $ 2.63 $ 2.63 (1) Net income per share attributable to Class B common stock was determined for the relevant periods through October 15, 2023. See note 11 Stockholders’ Equity. Potential common share equivalents excluded where the inclusion would be anti-dilutive are as follows: Fiscal year ended January 31, 2024 2023 2022 Options and awards 6,083,281 3,945,110 958,476 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation IQVIA Litigation Matters Veeva OpenData and Veeva Network Action. On January 10, 2017, IQVIA Inc. (formerly Quintiles IMS Incorporated) and IMS Software Services, Ltd. (collectively, IQVIA) filed a complaint against us in the U.S. District Court for the District of New Jersey (IQVIA Inc. v. Veeva Systems Inc. (No. 2:17-cv-00177)). In the complaint, IQVIA alleges that we used unauthorized access to proprietary IQVIA data to improve our software and data products and that our software is designed to steal IQVIA trade secrets. IQVIA further alleges that we have intentionally gained unauthorized access to IQVIA proprietary information to gain an unfair advantage in marketing our products and that we have made false statements concerning IQVIA’s conduct and our data security capabilities. IQVIA asserts claims under both federal and state misappropriation of trade secret laws, federal false advertising law, and common law claims for unjust enrichment, tortious interference, and unfair trade practices. The complaint seeks declaratory and injunctive relief and unspecified monetary damages. On March 13, 2017, we filed our answer denying IQVIA's claims and filed counterclaims. Our counterclaims allege that IQVIA, as the dominant provider of data for life sciences companies, has abused monopoly power to exclude Veeva OpenData and Veeva Network from their respective markets. The counterclaims allege that IQVIA has engaged in various tactics to prevent customers from using our applications and has deliberately raised costs and increased the difficulty of attempting to switch from IQVIA data to our data products. As amended, our counterclaims assert federal and state antitrust claims, as well as claims under California’s Unfair Practices Act and common law claims for intentional interference with contractual relations, intentional interference with prospective economic advantage, and negligent misrepresentation. The counterclaims seek injunctive relief, monetary damages exceeding $200 million, and attorneys’ fees. On October 3, 2018, the court denied IQVIA’s motion to dismiss our antitrust claims. On February 18, 2020, IQVIA filed a motion for sanctions against Veeva, seeking default judgment and dismissal and, in the alternative, an adverse inference at trial related to discovery disputes. On May 7, 2021, the special master appointed to oversee litigation discovery ruled against IQVIA’s request for default judgment and dismissal and ruled in IQVIA’s favor with respect to certain other matters, including recommending to the trial judge that a permissive adverse inference instruction be issued to the jury with respect to certain documents that were not preserved by Veeva. Should the trial judge accept the recommendation, the jury would be permitted, but not required, to infer that certain evidence not preserved by Veeva would have been unfavorable to Veeva, if the jury first concludes that Veeva controlled the evidence, that the evidence was relevant, and that Veeva should have preserved the evidence. The jury is also likely to be instructed that it may also consider whether the non-preserved evidence was duplicative of other evidence produced by Veeva and whether Veeva’s conduct was reasonable in light of all circumstances. Veeva was also ordered to pay IQVIA’s fees and expenses incurred in connection with portions of its sanctions motion. On June 4, 2021, we appealed the special master’s ruling and IQVIA’s fee award to the federal district court judge. Fact discovery is largely complete and expert discovery was completed in October 2023. While it is not possible at this time to predict with any degree of certainty the ultimate outcome of this lawsuit, and we are unable to make a meaningful estimate of the amount or range of gain or loss, if any, that could result from it, we believe that we have substantial defenses against IQVIA’s claims, which we intend to vigorously contest, and that our counterclaims warrant injunctive relief and monetary damages for Veeva. Veeva Nitro Action. On July 17, 2019, IQVIA filed a lawsuit in the U.S. District Court for the District of New Jersey (IQVIA Inc. v. Veeva Systems Inc. (No. 2:19-cv-15517)) (IQVIA Declaratory Action) seeking a declaratory judgment that IQVIA is not liable to Veeva for disallowing use of IQVIA’s data products in Veeva Nitro or any later-introduced Veeva software products. The IQVIA Declaratory Action does not seek any monetary relief. On July 18, 2019, we filed a lawsuit against IQVIA in the U.S. District Court for the Northern District of California (Veeva Systems Inc. v. IQVIA Inc. (No. 3:19-cv-04137)) (Veeva Nitro Action), alleging that IQVIA engaged in anticompetitive conduct as to Veeva Nitro. Our complaint asserts federal and state antitrust claims, as well as claims under California’s Unfair Competition Law and common law claims for intentional interference with contractual relations and intentional interference with prospective economic advantage. The complaint seeks injunctive relief and monetary damages. IQVIA filed its answer and affirmative defenses on September 5, 2019. On September 26, 2019, the Northern District of California transferred the Veeva Nitro Action to the District of New Jersey (Veeva Systems Inc. v. IQVIA Inc. (No. 2:19-cv-18558)). On March 24, 2020, we amended our complaint in the Veeva Nitro Action to include allegations of IQVIA’s anticompetitive conduct as to additional Veeva software applications, such as Veeva Andi, Veeva Align, and Veeva Vault MedComms; additional examples of IQVIA’s monopolistic behavior against Veeva Nitro; IQVIA’s unlawful access of Veeva’s proprietary software products; and a request for declaratory relief. IQVIA answered the amended complaint on May 22, 2020. On August 21, 2020, the District of New Jersey consolidated the Veeva Nitro Action and IQVIA Declaratory Action. Fact discovery is largely complete and expert discovery was completed in October 2023. While it is not possible at this time to predict with any degree of certainty the ultimate outcome of this action, we believe that our claims warrant injunctive and declaratory relief and monetary damages for Veeva. Fee Arrangements Related to the IQVIA Litigation Matters. We have entered into partial contingency fee arrangements with certain law firms representing us in the IQVIA litigations. Pursuant to those arrangements, such law firms are entitled to an agreed portion of any damages we recover from IQVIA or may be entitled to payment of success fees from us based on the achievement of certain outcomes. We are unable to make an estimate of any liability we may have in connection with this arrangement and accordingly have not accrued any related liability at this time. The federal district court judge presiding over all of the IQVIA Litigation Matters described above has set a trial date of February 10, 2025. However, the parties have been asked to brief whether certain claims should be bifurcated for the purposes of trial and whether all cases should be consolidated. The parties have completed briefing, but the court has not yet ruled. Medidata Litigation Matter On January 26, 2017, Medidata Solutions, Inc. filed a complaint in the U.S. District Court for the Southern District of New York ( Medidata Solutions, Inc. v. Veeva Systems Inc. et al. (No. 1:17-cv-00589)) against us and five individual Veeva employees who previously worked for Medidata (Individual Employees). The complaint alleged that we induced and conspired with the Individual Employees to breach their employment agreements, including non-compete and confidentiality provisions, and to misappropriate Medidata’s confidential and trade secret information. On July 15, 2022, after four days of jury trial, the court granted Veeva’s motion for judgment as a matter of law, thereby resolving the case in favor of Veeva. Medidata filed an appeal in the Second Circuit Court of Appeals on January 3, 2023. On January 10, 2024, Veeva and Medidata filed a joint stipulation to dismiss Medidata’s appeal, which was granted by the court on January 18, 2024. Mednet Litigation Matter On July 14, 2020, Mednet Solutions, Inc. filed a complaint in Minnesota state court (Mednet Solutions, Inc. v. Veeva Systems Inc. (No. 27-CV-20-9374)) against us and a Veeva employee who previously worked for Mednet. The complaint alleged that the employee improperly accessed Mednet’s computer systems after joining Veeva, in violation of his employment agreement to misappropriate Mednet’s confidential and trade secret information for our benefit. The complaint sought declaratory and injunctive relief, unspecified monetary damages, and attorneys’ fees. On December 9, 2020, the case was removed to the U.S. District Court for the District of Minnesota (No. 20-cv-2502). The complaint has been amended twice to include additional factual allegations, a claim against the employee under the federal Computer Fraud and Abuse Act, and direct claims against us for misappropriation. The matter is currently in the discovery phase of litigation. A trial date has not been set, but could be as early as late 2024. While it is not possible at this time to predict with any degree of certainty the ultimate outcome of this litigation, and we are unable to make a meaningful estimate of the amount or range of loss, if any, that could result from any unfavorable outcome, we believe that we have substantial defenses against Mednet’s claims and will continue to vigorously defend ourselves against them. Other Litigation Matters From time to time, we may be involved in other legal proceedings and subject to claims incident to the ordinary course of business. Although the results of such legal proceedings and claims cannot be predicted with certainty, we believe we are not currently a party to any other legal proceedings, the outcome of which, if determined adversely to us, would individually or taken together have a material adverse effect on our business, operating results, cash flows or financial position. Regardless of the outcome, such proceedings can have an adverse impact on us because of defense and settlement costs, diversion of resources and other factors, and there can be no assurances that favorable outcomes will be obtained. |
Revenues by Product
Revenues by Product | 12 Months Ended |
Jan. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenues by Product | Revenues by Product We group our revenues into two product areas: Commercial Solutions and R&D Solutions. Commercial Solutions revenues consist of revenues from our Veeva Commercial Cloud, Veeva Data Cloud, and Veeva Claims solutions. R&D Solutions consist of revenues from our Veeva Development Cloud, Veeva RegulatoryOne, and Veeva QualityOne solutions. Total revenues consist of the following (in thousands): Fiscal year ended January 31, 2024 2023 2022 Subscription services Commercial Solutions $ 995,803 $ 946,252 $ 876,458 R&D Solutions 905,790 786,750 607,518 Total subscription services 1,901,593 1,733,002 1,483,976 Professional services Commercial Solutions 185,981 177,188 165,086 R&D Solutions 276,099 244,870 201,715 Total professional services 462,080 422,058 366,801 Total revenues $ 2,363,673 $ 2,155,060 $ 1,850,777 |
Information about Geographic Ar
Information about Geographic Areas | 12 Months Ended |
Jan. 31, 2024 | |
Segment Reporting [Abstract] | |
Information about Geographic Areas | Information about Geographic Areas We track and allocate revenues by principal geographic area rather than by individual country, which makes it impractical to disclose revenues for the United States or other specific foreign countries. We measure subscription services revenue primarily by the estimated location of the end users in each geographic area for our Commercial Solutions and primarily by the estimated location of usage in each geographic area for our R&D Solutions. We measure professional services revenue primarily by the location of the resources performing the professional services. Total revenues by geographic area were as follows for the periods shown below (in thousands): Fiscal year ended January 31, 2024 2023 2022 Revenues by geography North America $ 1,387,425 $ 1,253,760 $ 1,063,770 Europe 662,560 598,828 509,127 Asia Pacific 250,600 244,655 225,968 Middle East, Africa, and Latin America 63,088 57,817 51,912 Total revenues $ 2,363,673 $ 2,155,060 $ 1,850,777 Long-lived assets by geographic area are as follows as of the periods shown below (in thousands): January 31, 2024 2023 Long-lived assets by geography North America $ 49,725 $ 42,003 Europe 6,885 5,336 Asia Pacific 751 963 Middle East, Africa, and Latin America 1,171 1,515 Total long-lived assets $ 58,532 $ 49,817 |
401(k) Plan
401(k) Plan | 12 Months Ended |
Jan. 31, 2024 | |
Retirement Benefits [Abstract] | |
401(k) Plan | 401(k) Plan We have a qualified defined contribution plan under Section 401(k) of the Internal Revenue Code covering eligible employees as well as a Registered Retirement Savings Plan (RRSP) for eligible employees in Canada. Under the 401(k) plan, we match up to $2,000 per employee per year. Under the RRSP plan, we also match up to $2,000 per employee per year. For the fiscal years ended January 31, 2024, 2023, and 2022, total expense related to these plans was $9 million, $8 million, and $7 million, respectively. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Pay vs Performance Disclosure | |||
Net income | $ 525,705 | $ 487,706 | $ 427,390 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 12 Months Ended |
Jan. 31, 2024 shares | Jan. 31, 2024 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Josh Faddis [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | The following table sets forth the material terms of all “Rule 10b5-1 trading arrangements” (as such term is defined under Item 408(a) of Regulation S-K) adopted, modified, or terminated by our Section 16 officers and directors during the fiscal quarter ended January 31, 2024: Name and Title Action Adoption / Termination Date Aggregate Number of Shares of Common Stock to be Sold (1) Expiration Date (2) Josh Faddis Corporate Secretary. SVP & General Counsel Adoption 12/21/2023 7,645 4/15/2025 (1) This number represents the maximum number of shares of common stock that may be sold pursuant to the trading plan. The number of shares actually sold will depend on the satisfaction of certain conditions as set forth in the plan. (2) The trading plan may expire on an earlier date if and when all transactions thereunder are completed. | |
Name | Josh Faddis | |
Title | Corporate Secretary. SVP & General Counsel | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | 12/21/2023 | |
Arrangement Duration | 481 days | |
Aggregate Available | 7,645 | 7,645 |
Summary of Business and Signi_2
Summary of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2024 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business Veeva is the leading provider of industry cloud solutions for the global life sciences industry. Our offerings span cloud software, data, analytics, professional services, and business consulting and are designed to meet the unique needs of our customers and their most strategic business functions—from research and development (R&D) through commercialization. Our solutions help life sciences companies develop and bring products to market faster and more efficiently, market and sell more effectively, and maintain compliance with government regulations. Our Commercial Solutions help life sciences companies achieve better, more intelligent engagement with healthcare professionals and healthcare organizations across multiple communication channels, and plan and execute more effective media and marketing campaigns. Our R&D Solutions for the clinical, quality, regulatory, and safety functions help life sciences companies streamline their end-to-end product development processes to increase operational efficiency and maintain regulatory compliance throughout the product life cycle. We also bring the benefits of our content and data management solutions to a set of customers outside of life sciences in the consumer product and chemical industries. Our fiscal year end is January 31. |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation These consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding annual financial reporting and include the accounts of our wholly-owned subsidiaries after elimination of intercompany accounts and transactions. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates, judgments and assumptions that affect the consolidated financial statements and the notes thereto. These estimates are based on information available as of the date of the consolidated financial statements. On a regular basis, management evaluates these estimates and assumptions. Items subject to such estimates and assumptions include, but are not limited to: • the standalone selling price for each distinct performance obligation included in customer contracts with multiple performance obligations; • the determination of the period of benefit for amortization of deferred costs; • the realizability of deferred income tax assets; • the fair value of our stock-based awards. As future events cannot be determined with precision, actual results could differ significantly from those estimates. |
Segment Information | Segment Information Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assessing performance. We define the term “chief operating decision maker” to be our Chief Executive Officer. Our Chief Executive Officer reviews the financial information presented on a consolidated basis for purposes of allocating resources and evaluating our financial performance. Accordingly, we have determined that we operate in a single operating and reportable segment. Since we operate in one operating segment, all required financial segment information can be found in the consolidated financial statements. |
Revenue Recognition | Revenue Recognition We derive our revenues primarily from subscription services and professional services. Subscription services revenues consist of fees from customers accessing our cloud-based software solutions and fees for our data solutions. Professional services and other revenues consist primarily of fees from implementation services, configuration, data services, business consulting, training, and managed services related to our solutions. Revenues are recognized when control of these services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those services. We determine revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when, or as, we satisfy a performance obligation. Subscription Services Revenues Subscription services revenues are recognized ratably over the respective non-cancellable subscription term because of the continuous transfer of control to the customer. Our subscription arrangements are considered service contracts, and the customer does not have the right to take possession of the software. Professional Services and Other Revenues The majority of our professional services arrangements are billed on a time and materials basis and revenues are recognized over time based on time incurred and contractually agreed upon rates. Certain professional services revenues are billed on a fixed fee basis and revenues are typically recognized over time as the services are delivered based on time incurred. Business consulting services, data services, and training revenues are generally recognized as the services are performed. Contracts with Multiple Performance Obligations Some of our contracts with customers contain multiple performance obligations. For these contracts, we account for individual performance obligations separately when they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. We determine the standalone selling prices based on our overall pricing objectives, taking into consideration market conditions and other factors, including other groupings such as customer type and geography. |
Deferred Costs | Deferred Costs Deferred costs represents sales commissions associated with obtaining a contract with a customer. These costs are deferred and then amortized over a period of benefit that we have determined to be three years. We determined the period of benefit by taking into consideration the expected renewal period of our customer contracts, our technology and other factors. Amortization expense is included in sales and marketing expenses in the accompanying consolidated statements of comprehensive income. |
Certain Risks and Concentrations of Credit Risk | Certain Risks and Concentrations of Credit Risk Our revenues are derived from subscription services, professional services and other services delivered primarily to the life sciences industry. We operate in markets that are highly competitive and rapidly changing. Significant technological changes, shifting customer needs, the emergence of competitive products or services with new capabilities, and other factors could negatively impact our future operating results. Our financial instruments that potentially subject us to concentration of credit risk consist primarily of cash and cash equivalents, short-term investments, and trade accounts receivable. Our cash equivalents and short-term investments are held by established financial institutions. We have established guidelines relative to credit ratings, diversification, and maturities that seek to maintain safety and liquidity. Deposits in these financial institutions may significantly exceed federally insured limits. We do not require collateral from our customers and generally require payment within 30 days to 60 days of billing. |
Cash Equivalents | Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. |
Short-term Investments | Short-term Investments Our short-term investments are classified as available-for-sale and recorded at estimated fair value. Unrealized gains and losses for available-for-sale securities are included in accumulated other comprehensive income, a component of stockholders’ equity. We evaluate our investments to assess whether those with unrealized loss positions are other than temporarily impaired. We consider impairments to be other than temporary if they are related to deterioration in credit risk or if it is likely we will sell the securities before the recovery of their cost basis. Realized gains and losses and declines in value judged to be other than temporary are determined based on the specific identification method and are reported in other income, net, in the consolidated statements of comprehensive income. Interest, amortization of premiums, and accretion of discount on all short-term investments are also included as a component of other income, net, in the consolidated statements of comprehensive income. We may sell our short-term investments at any time, without significant penalty, for use in current operations or for other purposes, even if they have not yet reached maturity. As a result, we classify our investments, including securities with maturities beyond 12 months, as current assets in the accompanying consolidated balance sheets. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at the invoiced amount, net of allowance for doubtful accounts. |
Property and Equipment | Property and Equipment |
Leases | Leases We have operating leases for corporate offices. Additionally, we are the sublessor for certain office space. We recognize lease right-of-use assets and liabilities at the commencement date based on the present value of lease payments over the lease term. We use an estimate of our discount rate based on the information available at the lease commencement date in determining the present value of lease payments, unless the implicit rate is readily determinable. The lease right-of-use assets also include any lease payments made and exclude lease incentives such as tenant improvement allowances. Options to extend or terminate the lease are included in the lease term when it is reasonably certain that we will exercise the extension or termination option. Our operating leases typically include non-lease components such as common-area maintenance costs. We have elected to exclude non-lease components from lease payments for the purpose of calculating lease right-of-use assets and liabilities and these variable lease payments are expensed as incurred. Leases with a term of one year or less are not recognized on our consolidated balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. |
Internal-Use Software | Internal-Use Software We capitalize certain costs incurred for the development of computer software for internal use. We capitalize these costs during the development of the software project, when it is determined that it is probable that the project will be completed and the software will be used as intended. Costs related to preliminary project activities, post-implementation activities, training, and maintenance are expensed as incurred. Internal-use software is amortized on a straight-line basis over its estimated useful life of three years, and the amortization expense is recorded as a component of cost of subscription services. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill is evaluated for impairment at least annually or more frequently if circumstances indicate that goodwill may be impaired. A qualitative assessment is performed to determine whether it is more likely than not that the fair value of its reporting unit is less than its carrying amount. If the reporting unit does not pass the qualitative assessment, the carrying amount of the reporting unit, including goodwill, is compared to fair value and goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value. Any excess of the carrying value of the goodwill above its fair value is recognized as an impairment loss. We have one reporting unit and evaluate goodwill for impairment at the entity level. We completed our annual impairment test in our fourth quarter of the fiscal year ended January 31, 2024. There were no goodwill impairment charges during any of the periods presented. |
Long-Lived Assets | Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, we first compare undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. There were no impairment charges recognized during any of the periods presented. |
Business Combinations | Business Combinations The purchase price in a business combination is assigned to the estimated acquisition date fair values of the tangible and intangible assets acquired and the liabilities assumed with the residual recorded as goodwill. Critical estimates in valuing certain of the intangible assets include, but are not limited to, the net present value of future expected cash flows, future revenue growth, margins, customer retention rates, technology life, royalty rates, expected use of acquired assets, and discount rates. |
Stock-based Compensation | Stock-based Compensation We recognize compensation expense for all stock-based awards, including stock options and restricted stock units (RSUs), based on the estimate of fair value of the award at the grant date. The fair value of each option award is estimated on the grant date using either a Black-Scholes option-pricing model or a Monte Carlo simulation, to the extent market conditions exist, and a single option award approach. These models require that at the date of grant we determine the fair value of the underlying common stock, the expected term of the award, the expected volatility of the price of our common stock, risk-free interest rates, and expected dividend yield of our common stock. The fair value of each RSU award is measured based on the closing stock price of our common stock on the date of grant. We account for forfeitures as they occur. The compensation expense is recognized using a straight-line basis over the requisite service periods of the awards. |
Cost of Revenues | Cost of Revenues Cost of subscription services revenues consists of expenses related to our computing infrastructure provided by third parties, including Salesforce, Inc. and Amazon Web Services, personnel-related costs associated with hosting our subscription services and providing support, including our data stewards, data acquisition costs, and costs of delivering our data solutions, allocated overhead, amortization expense associated with capitalized internal-use software, and amortization expense associated with purchased intangibles related to our subscription services. Cost of subscription services revenues for Veeva CRM and certain of our multichannel customer relationship management applications include fees paid to Salesforce, Inc. for our use of the Salesforce platform and the associated hosting infrastructure and data center operations that are provided by Salesforce, Inc. Cost of professional services and other revenues consists primarily of employee-related expenses associated with providing these services, including salaries, benefits and stock-based compensation expense, the cost of third-party subcontractors, travel costs, and allocated overhead. |
Advertising Expenses | Advertising Expenses Advertising expenditures are expensed as incurred and were immaterial for each of the years presented. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We regularly assess the realizability of our deferred tax assets and establish a valuation allowance if it is more likely than not that some or all of our deferred tax assets will not be realized. We evaluate and weigh all available positive and negative evidence such as historic results, future reversals of existing deferred tax liabilities, projected future taxable income, as well as prudent and feasible tax-planning strategies. Generally, more weight is given to objectively verifiable evidence such as the cumulative income in recent years. We establish liabilities or reduce assets for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining whether the weight of available evidence indicates that it is more likely than not that the position will be sustained upon an audit, including resolution of related appeals or litigation processes, if any. The second step requires us to measure the tax benefit as the largest amount that is more likely than not to be realized upon ultimate settlement. We recognize interest accrued and penalties related to unrecognized tax benefits as a component of provision for income taxes. |
Foreign Currency Exchange | Foreign Currency Exchange Assets and liabilities of foreign subsidiaries that do not have U.S. dollars as their functional currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenues and expenses are translated at the average exchange rate during the period. Equity transactions are translated using historical exchange rates. The resulting translation adjustments are recorded as part of a separate component of the consolidated statements of comprehensive income. Foreign currency transaction gains and losses are included in the consolidated statements of comprehensive income for the period. |
Indemnification | Indemnification Our contracts generally include provisions for indemnifying customers against liabilities if our solutions infringe a third party’s intellectual property rights, and we may also incur liabilities if we breach the security and/or confidentiality obligations in our contracts. To date, we have not incurred any material costs, and we have not accrued any liabilities in the accompanying consolidated financial statements as a result of these obligations. |
Loss Contingencies | Loss Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. |
Recently Adopted Accounting Pronouncements and New Accounting Pronouncements Issued and Not yet Adopted | Recently Adopted Accounting Pronouncements Business Combinations In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured in accordance with Topic 606, Revenue from Contracts with Customers, as if the acquirer had originated the contracts. Under the previous standard, such assets and liabilities were recognized by the acquirer at fair value on the acquisition date. We adopted the new standard effective February 1, 2023 and there was no impact to our consolidated financial statements for the fiscal year ended January 31, 2024. Reference Rate Reform In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides accounting relief from the future impact of the cessation of the London Interbank Offered Rate (LIBOR) by, among other things, providing optional expedients to treat contract modifications resulting from such reference rate reform as a continuation of the existing contract and for hedging relationships to not be de-designated as a result of such changes provided certain criteria are met. The guidance, along with the amendments within ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, that extended the period of time preparers can utilize the reference rate reform relief guidance in Topic 848, became effective on March 12, 2020, and the amendments apply prospectively through December 31, 2024. As of January 31, 2024, all of our contracts that previously referenced LIBOR have transitioned to an alternative rate, which did not have a material impact to our consolidated financial statements for the fiscal year ended January 31, 2024. New Accounting Pronouncements Issued and Not yet Adopted Improvements to Reportable Segment Disclosures In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This new standard is effective for our fiscal year beginning on February 1, 2024 and interim periods beginning on February 1, 2025 on a retrospective basis. We are currently evaluating this ASU to determine its impact on our disclosures. Improvements to Income Tax Disclosures In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires disaggregation of rate reconciliation categories and income taxes paid by jurisdiction, among other amendments. This new standard is effective for our fiscal year beginning on February 1, 2025 on a prospective basis and retrospective application is permitted. We are currently evaluating this ASU to determine its impact on our disclosures. |
Fair Value Measurements | Financial assets and liabilities recorded at fair value in the consolidated financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, which are directly related to the amount of subjectivity associated with the inputs to the valuation of these assets or liabilities are as follows: Level 1—Observable inputs, such as quoted prices in active markets for identical assets or liabilities. Level 2—Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Financial assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires management to make judgments and considers factors specific to the asset or liability. |
Net Income per Share | Basic net income per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted-average shares outstanding, including potentially dilutive shares of common equivalents outstanding during the period. The dilutive effect of potential shares of common stock are determined using the treasury stock method. On October 15, 2023, all of our outstanding shares of Class B common stock automatically converted into the same number of shares of Class A common stock pursuant to the terms of our then effective Amended and Restated Certificate of Incorporation. See note 11 Stockholders’ Equity for additional details related to the conversion of Class B common stock. Because shares of Class B common stock were outstanding for a portion of the fiscal year ended January 31, 2024, we have disclosed earnings per share for Class A and Class B common stock for the fiscal year January 31, 2024. For the fiscal year ended January 31, 2024, 2023, and 2022 the computation of fully diluted net income per share of Class A common stock assumes the conversion from Class B common stock, while the fully diluted net income per share of Class B common stock does not assume the conversion of those shares. |
Summary of Business and Signi_3
Summary of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Certain Risks and Concentrations of Credit Risk | The following customers individually exceeded 10% of total accounts receivable as of the dates shown: January 31, 2024 2023 Customer 1 10.1% 11.4% Customer 2 N/A 10.7% |
Schedule of Estimated Useful Lives of Property and Equipment | The estimated useful lives by asset classification are as follows: Building 30 years Building improvements Remaining useful life of the building Equipment and computers 3 years Furniture and fixtures 5 years Land improvements 10 years Leasehold improvements Shorter of remaining life of the lease term or estimated useful life Property and equipment, net consists of the following as of the dates shown (in thousands): January 31, 2024 2023 Land $ 3,040 $ 3,040 Building 20,984 20,984 Land improvements and building improvements 22,392 22,392 Equipment and computers 2,551 2,233 Furniture and fixtures 15,498 13,995 Leasehold improvements 30,793 18,986 Construction in progress 31 302 95,289 81,932 Less accumulated depreciation (36,757) (32,115) Total property and equipment, net $ 58,532 $ 49,817 |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Short-Term Investments | As of January 31, 2024, short-term investments consisted of the following (in thousands): Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Available-for-sale securities: Certificates of deposits $ 94,210 $ 87 $ (14) $ 94,283 Asset-backed securities 605,852 2,916 (1,787) 606,981 Commercial paper 144,218 47 (20) 144,245 Corporate notes and bonds 1,581,382 8,835 (5,188) 1,585,029 Foreign government bonds 50,180 206 (180) 50,206 Municipal securities 79,404 301 (231) 79,474 U.S. agency obligations 49,372 232 (12) 49,592 U.S. treasury securities 717,015 1,268 (3,824) 714,459 Total available-for-sale securities $ 3,321,633 $ 13,892 $ (11,256) $ 3,324,269 As of January 31, 2023, short-term investments consisted of the following (in thousands): Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Available-for-sale securities: Certificates of deposits $ 37,998 $ 31 $ (66) $ 37,963 Asset-backed securities 448,081 585 (5,708) 442,958 Commercial paper 155,097 8 (580) 154,525 Corporate notes and bonds 1,224,195 1,649 (17,880) 1,207,964 Foreign government bonds 24,654 13 (516) 24,151 U.S. agency obligations 32,995 4 (594) 32,405 U.S. treasury securities 321,946 265 (6,014) 316,197 Total available-for-sale securities $ 2,244,966 $ 2,555 $ (31,358) $ 2,216,163 |
Schedule of Estimated Fair Value of Short-Term Investments, Designated as Available-for-Sale and Classified by Contractual Maturity | The following table summarizes the estimated fair value of our short-term investments, designated as available-for-sale and classified by the contractual maturity date of the securities as of the dates shown (in thousands): January 31, 2024 2023 Due in one year or less $ 919,871 $ 849,673 Due in greater than one year 2,404,398 1,366,490 Total $ 3,324,269 $ 2,216,163 |
Schedule of Fair Values and Gross Unrealized Loss Position of Available-for-Sale Securities Aggregated by Investment Category | The following table shows the fair values of available-for-sale securities which were in an unrealized loss position, aggregated by investment category, as of January 31, 2024 (in thousands): 12 months or less Greater than 12 months Fair value Gross unrealized losses Fair Gross Certificates of deposits $ 22,465 $ (14) $ — $ — Asset-backed securities 120,543 (343) 105,419 (1,444) Commercial paper 70,037 (20) — — Corporate notes and bonds 394,823 (1,560) 280,092 (3,628) Foreign government bonds 8,915 (19) 9,784 (161) Municipal securities 31,418 (122) 13,686 (109) U.S. agency obligations 1,795 (3) 4,991 (9) U.S. treasury securities 280,946 (1,227) 204,274 (2,597) The following table shows the fair values of available-for-sale securities which were in an unrealized loss position, aggregated by investment category, as of January 31, 2023 (in thousands): 12 months or less Greater than 12 months Fair value Gross unrealized losses Fair value Gross unrealized losses Certificates of deposits $ 15,934 $ (66) $ — $ — Asset-backed securities 293,854 (3,219) 78,279 (2,489) Commercial paper 144,741 (580) — — Corporate notes and bonds 604,264 (6,801) 370,969 (11,079) Foreign government bonds 11,284 (126) 11,827 (390) U.S. agency obligations 4,941 (61) 24,461 (533) U.S. treasury securities 210,246 (3,661) 63,422 (2,353) |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | The estimated useful lives by asset classification are as follows: Building 30 years Building improvements Remaining useful life of the building Equipment and computers 3 years Furniture and fixtures 5 years Land improvements 10 years Leasehold improvements Shorter of remaining life of the lease term or estimated useful life Property and equipment, net consists of the following as of the dates shown (in thousands): January 31, 2024 2023 Land $ 3,040 $ 3,040 Building 20,984 20,984 Land improvements and building improvements 22,392 22,392 Equipment and computers 2,551 2,233 Furniture and fixtures 15,498 13,995 Leasehold improvements 30,793 18,986 Construction in progress 31 302 95,289 81,932 Less accumulated depreciation (36,757) (32,115) Total property and equipment, net $ 58,532 $ 49,817 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of Details of Intangible Assets | The following schedule presents the details of intangible assets as of January 31, 2024 (dollar amounts in thousands): January 31, 2024 Gross carrying amount Accumulated amortization Net Remaining useful life (in years) Existing technology $ 28,580 $ (20,646) $ 7,934 2.0 Customer relationships 113,157 (61,755) 51,402 5.3 Trade name and trademarks 13,900 (11,925) 1,975 0.8 Other intangibles 21,405 (19,699) 1,706 2.2 Total intangible assets $ 177,042 $ (114,025) $ 63,017 The following schedule presents the details of intangible assets as of January 31, 2023 (dollar amounts in thousands): January 31, 2023 Gross Accumulated Net Remaining Existing technology $ 28,580 $ (16,418) $ 12,162 2.9 Customer relationships 113,157 (50,293) 62,864 6.1 Trade name and trademarks 13,900 (9,285) 4,615 1.8 Other intangibles 21,405 (18,570) 2,835 3.0 Total intangible assets $ 177,042 $ (94,566) $ 82,476 |
Schedule of Estimated Amortization Expense | As of January 31, 2024, the estimated amortization expense for intangible assets, for the next five years and thereafter is as follows (in thousands): Fiscal 2025 $ 18,557 Fiscal 2026 14,147 Fiscal 2027 8,922 Fiscal 2028 7,778 Fiscal 2029 7,782 Thereafter 5,831 Total $ 63,017 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following as of the dates shown (in thousands): January 31, 2024 2023 Accrued commissions $ 9,848 $ 11,240 Accrued bonus 3,481 3,484 Accrued vacation (1) 7,375 6,653 Payroll tax payable 13,829 16,229 Accrued other compensation and benefits 8,900 6,676 Total accrued compensation and benefits $ 43,433 $ 44,282 Accrued fees payable to Salesforce, Inc. $ 6,562 $ 6,653 Taxes payable 7,632 9,197 Accrued third-party professional services subcontractors' fees 1,298 2,597 Other accrued expenses 17,488 16,859 Total accrued expenses and other current liabilities $ 32,980 $ 35,306 (1) Represents accrued vacation primarily for international employees. Vacation does not accrue for most U.S. employees. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Hierarchy for Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis as of January 31, 2024 (in thousands): Level 1 Level 2 Total Assets Cash equivalents: Money market funds $ 73,197 $ — $ 73,197 U.S. Treasury securities — 9,969 9,969 Short-term investments: Certificates of deposits — 94,283 94,283 Asset-backed securities — 606,981 606,981 Commercial paper — 144,245 144,245 Corporate notes and bonds — 1,585,029 1,585,029 Foreign government bonds — 50,206 50,206 Municipal securities — 79,474 79,474 U.S. agency obligations — 49,592 49,592 U.S. Treasury securities — 714,459 714,459 Foreign currency derivative contracts — 616 616 Total financial assets $ 73,197 $ 3,334,854 $ 3,408,051 Liabilities Foreign currency derivative contracts $ — $ (232) $ (232) Total financial liabilities $ — $ (232) $ (232) The following table presents the fair value hierarchy for financial assets measured at fair value on a recurring basis as of January 31, 2023 (in thousands): Level 1 Level 2 Total Assets Cash equivalents: Money market funds $ 180,895 $ — $ 180,895 U.S. Treasury securities — 22,929 22,929 Corporate notes and bonds — 6,691 6,691 Short-term investments: Certificates of deposits — 37,963 37,963 Asset-backed securities — 442,958 442,958 Commercial paper — 154,525 154,525 Corporate notes and bonds — 1,207,964 1,207,964 Foreign government bonds — 24,151 24,151 U.S. agency obligations — 32,405 32,405 U.S. Treasury securities — 316,197 316,197 Foreign currency derivative contracts — 251 251 Total financial assets $ 180,895 $ 2,246,034 $ 2,426,929 |
Schedule of Fair Value of Outstanding Derivative Instruments | The fair value of our outstanding derivative instruments is summarized below (in thousands): January 31, 2024 2023 Notional amount of foreign currency derivative contracts $ 201,407 $ 137,998 Fair value of foreign currency derivative contracts $ 201,024 $ 137,860 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income before Income Taxes | The components of income before income taxes by U.S. and foreign jurisdictions were as follows for the periods shown (in thousands): Fiscal year ended January 31, 2024 2023 2022 United States $ 546,837 $ 482,885 $ 487,962 Foreign 41,186 26,211 24,349 Total $ 588,023 $ 509,096 $ 512,311 |
Schedule of Components of Provision for Income Taxes | Provision for income taxes consisted of the following for the periods shown (in thousands): Fiscal year ended January 31, 2024 2023 2022 Current provision: Federal $ 126,174 $ 110,610 $ 53,426 State 29,361 29,775 12,580 Foreign 12,157 8,507 7,837 Total current provision 167,692 148,892 73,843 Deferred (benefit) provision: Federal (87,651) (98,923) 1,870 State (15,739) (20,755) 945 Foreign (1,984) (7,824) 8,264 Total deferred (benefit) provision (105,374) (127,502) 11,079 Provision for income taxes $ 62,318 $ 21,390 $ 84,921 |
Schedule of Reconciliation of Statutory Federal Income Tax to Effective Tax | Provision for income taxes differed from the amount computed by applying the federal statutory income tax rate of 21% for each of the fiscal years ended January 31, 2024, 2023, and 2022 to income before income taxes as a result of the following for the periods shown (in thousands): Fiscal year ended January 31, 2024 2023 2022 Expected provision at statutory tax rate $ 123,485 $ 106,910 $ 107,585 State taxes, net of federal benefit 12,056 7,318 11,035 Tax credits (36,333) (33,463) (25,968) Stock-based compensation (32,054) (52,304) (29,715) Valuation allowance 13,572 5,654 19,402 Foreign derived intangible income deduction (FDII) (15,489) (15,811) (3,406) Release of income tax reserves (1) (9,201) (293) (440) Other (1) 6,282 3,379 6,428 Provision for income taxes $ 62,318 $ 21,390 $ 84,921 (1) Prior period balances were adjusted to conform with current period presentation. |
Schedule of Components of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of our deferred tax assets and liabilities related to the following (in thousands): January 31, 2024 2023 Deferred tax assets: Accruals and reserves $ 9,488 $ 13,137 Capitalized expenditures 228,845 123,746 Stock-based compensation 49,710 32,536 Net operating loss carryforward 6,469 12,245 Tax credit carryforward 65,307 43,732 Lease liabilities 13,967 15,724 Other 2,403 7,890 Gross deferred tax assets 376,189 249,010 Valuation allowance (79,056) (51,685) Total deferred tax assets 297,133 197,325 Deferred tax liabilities: Intangible assets (27,019) (28,799) Lease right-of-use assets (11,410) (14,192) Deferred costs (6,242) (12,949) Other (21,051) (6,180) Total deferred tax liabilities (65,722) (62,120) Net deferred tax assets $ 231,411 $ 135,205 |
Schedule of Changes in Total Gross Amount of Unrecognized Tax Benefits | The aggregate changes in our total gross amount of unrecognized tax benefits are summarized as follows for the periods shown (in thousands): Fiscal year ended January 31, 2024 2023 2022 Beginning balance $ 30,713 $ 25,241 $ 18,628 Increases related to tax positions taken during the prior period 7,385 971 3,218 Increases related to tax positions taken during the current period 10,131 4,934 4,122 Decreases related to tax positions taken during the prior period (17) (137) — Audit settlements — — (195) Lapse of statute of limitations (8,475) (296) (532) Ending balance $ 39,737 $ 30,713 $ 25,241 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Leases [Abstract] | |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows (in thousands): Fiscal year ended January 31, 2024 2023 Cash paid for operating lease liabilities $ 10,291 $ 12,908 Operating lease right-of-use assets obtained in exchange for new operating lease liabilities $ 3,700 $ 14,488 |
Schedule of Supplemental Balance Sheet Information Related to Operating Leases | Supplemental balance sheet information related to operating leases was as follows (in thousands, except lease term and discount rate): January 31, 2024 2023 Weighted Average Remaining Lease Term 6.6 years 6.7 years Weighted Average Discount Rate 4.4 % 4.2 % |
Schedule of Maturity of Operating Lease Liabilities | As of January 31, 2024, remaining maturities of operating lease liabilities are as follows (in thousands): Fiscal 2025 $ 10,213 Fiscal 2026 10,710 Fiscal 2027 9,798 Fiscal 2028 9,116 Fiscal 2029 6,553 Thereafter 19,348 Total operating lease payments 65,738 Less imputed interest 9,963 Total operating lease liabilities $ 55,775 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | A summary of stock option activity for the fiscal year ended January 31, 2024 is as follows: Number of shares Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate Options outstanding at January 31, 2023 11,503,409 $ 128.62 5.9 $ 705 Options granted 2,511,610 180.59 Options exercised (2,277,533) 27.52 Options forfeited/cancelled (589,676) 200.03 Options outstanding at January 31, 2024 11,147,810 $ 157.20 6.7 $ 626 Options vested and exercisable at January 31, 2024 4,962,412 $ 123.63 5.1 $ 449 Options vested and exercisable at January 31, 2024 and expected to vest thereafter 11,147,810 $ 157.20 6.7 $ 626 |
Schedule of Weighted-Average Assumptions Used to Estimate Grant Date Fair Value of Options Granted | The following table presents the weighted-average assumptions used to estimate the grant date fair value of options granted during the periods presented: Fiscal year ended January 31, 2024 2023 2022 Volatility 39% - 41% 37% - 40% 37% - 39% Expected term (in years) 6.25 - 7.00 6.00 - 7.00 6.25 Risk-free interest rate 3.34% - 4.73% 1.90% - 4.20% 0.70% - 1.60% Dividend yield —% —% —% |
Schedule of Restricted Stock Unit (RSU) Activity | A summary of RSU activity for the fiscal year ended January 31, 2024 is as follows: Unreleased restricted stock units Weighted average grant date fair value Balance at January 31, 2023 1,103,679 $ 194.36 RSUs granted 1,181,528 180.78 RSUs vested (1,150,059) 182.95 RSUs forfeited / cancelled (123,417) 183.81 Balance at January 31, 2024 1,011,731 192.77 |
Other Income (Tables)
Other Income (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income | Other income, net, consisted of the following (in thousands): Fiscal year ended January 31, 2024 2023 2022 Foreign currency gain (loss) $ 124 $ 591 $ (714) Accretion (amortization) on investments 24,817 2,982 (7,201) Interest income, net 133,748 45,860 14,730 Miscellaneous income — 572 — Other income, net $ 158,689 $ 50,005 $ 6,815 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Numerators and Denominators of the Basic and Diluted EPS Computations for Common Stock | The numerators and denominators of the basic and diluted net income per share computations for our common stock are calculated as follows (in thousands, except per share data): Fiscal year ended January 31, 2024 2023 2022 Class A Class B (1) Class A Class B Class A Class B Basic Numerator Net income, basic $ 491,747 $ 33,958 $ 441,425 $ 46,281 $ 386,180 $ 41,210 Denominator Weighted average shares used in computing net income per share, basic 150,162 10,370 140,640 14,745 138,474 14,777 Net income per share, basic $ 3.27 $ 3.27 $ 3.14 $ 3.14 $ 2.79 $ 2.79 Diluted Numerator Net income, basic $ 491,747 $ 33,958 $ 441,425 $ 46,281 $ 386,180 $ 41,210 Reallocation as a result of conversion of Class B to Class A common stock: Net income, basic 33,958 — 46,281 — 41,210 — Reallocation of net income to Class B common stock — 8,887 — 19,163 — 21,480 Net income, diluted $ 525,705 $ 42,845 $ 487,706 $ 65,444 $ 427,390 $ 62,690 Denominator Number of shares used for basic net income per share computation 150,162 10,370 140,640 14,745 138,474 14,777 Conversion of Class B to Class A common stock 10,370 — 14,745 — 14,777 — Effect of potentially dilutive common shares 2,954 2,954 7,052 7,052 9,026 9,026 Weighted average shares used in computing net income per share, diluted 163,486 13,324 162,437 21,797 162,277 23,803 Net income per share, diluted $ 3.22 $ 3.22 $ 3.00 $ 3.00 $ 2.63 $ 2.63 (1) Net income per share attributable to Class B common stock was determined for the relevant periods through October 15, 2023. See note 11 Stockholders’ Equity. |
Schedule of Potential Common Share Equivalents Excluded where the Inclusion would be Anti-dilutive | Potential common share equivalents excluded where the inclusion would be anti-dilutive are as follows: Fiscal year ended January 31, 2024 2023 2022 Options and awards 6,083,281 3,945,110 958,476 |
Revenues by Product (Tables)
Revenues by Product (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Total Revenues | Total revenues consist of the following (in thousands): Fiscal year ended January 31, 2024 2023 2022 Subscription services Commercial Solutions $ 995,803 $ 946,252 $ 876,458 R&D Solutions 905,790 786,750 607,518 Total subscription services 1,901,593 1,733,002 1,483,976 Professional services Commercial Solutions 185,981 177,188 165,086 R&D Solutions 276,099 244,870 201,715 Total professional services 462,080 422,058 366,801 Total revenues $ 2,363,673 $ 2,155,060 $ 1,850,777 |
Information about Geographic _2
Information about Geographic Areas (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Revenues by Geographic Area | Total revenues by geographic area were as follows for the periods shown below (in thousands): Fiscal year ended January 31, 2024 2023 2022 Revenues by geography North America $ 1,387,425 $ 1,253,760 $ 1,063,770 Europe 662,560 598,828 509,127 Asia Pacific 250,600 244,655 225,968 Middle East, Africa, and Latin America 63,088 57,817 51,912 Total revenues $ 2,363,673 $ 2,155,060 $ 1,850,777 |
Schedule of Long-Lived Assets by Geographic Area | Long-lived assets by geographic area are as follows as of the periods shown below (in thousands): January 31, 2024 2023 Long-lived assets by geography North America $ 49,725 $ 42,003 Europe 6,885 5,336 Asia Pacific 751 963 Middle East, Africa, and Latin America 1,171 1,515 Total long-lived assets $ 58,532 $ 49,817 |
Summary of Business and Signi_4
Summary of Business and Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||
Jan. 31, 2024 USD ($) reporting_unit segment | Jan. 31, 2023 USD ($) | Jan. 31, 2022 USD ($) | |
Concentration Risk [Line Items] | |||
Number of operating segment | segment | 1 | ||
Number of reportable segment | segment | 1 | ||
Amortization period of deferred costs | 3 years | ||
Highly liquid investments maturity | 3 months | ||
Number of reporting units | reporting_unit | 1 | ||
Impairment of goodwill | $ | $ 0 | $ 0 | $ 0 |
Impairment recognized for long-lived assets | $ | $ 0 | $ 0 | $ 0 |
Software Development | |||
Concentration Risk [Line Items] | |||
Finite-lived intangible asset, useful life | 3 years | ||
Minimum | |||
Concentration Risk [Line Items] | |||
Customer payment period | 30 days | ||
Maximum | |||
Concentration Risk [Line Items] | |||
Customer payment period | 60 days |
Summary of Business and Signi_5
Summary of Business and Significant Accounting Policies - Concentrations of Credit Risk (Details) - Accounts Receivable - Customer Concentration Risk | 12 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Customer 1 | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 10.10% | 11.40% |
Customer 2 | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 10.70% |
Summary of Business and Signi_6
Summary of Business and Significant Accounting Policies - Estimated Useful Lives (Details) | Jan. 31, 2024 |
Building | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 30 years |
Equipment and computers | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 3 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 5 years |
Land improvements | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 10 years |
Short-Term Investments - Schedu
Short-Term Investments - Schedule of Short-Term Investments (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost | $ 3,321,633 | $ 2,244,966 |
Gross unrealized gains | 13,892 | 2,555 |
Gross unrealized losses | (11,256) | (31,358) |
Estimated fair value | 3,324,269 | 2,216,163 |
Certificates of deposits | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost | 94,210 | 37,998 |
Gross unrealized gains | 87 | 31 |
Gross unrealized losses | (14) | (66) |
Estimated fair value | 94,283 | 37,963 |
Asset-backed securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost | 605,852 | 448,081 |
Gross unrealized gains | 2,916 | 585 |
Gross unrealized losses | (1,787) | (5,708) |
Estimated fair value | 606,981 | 442,958 |
Commercial paper | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost | 144,218 | 155,097 |
Gross unrealized gains | 47 | 8 |
Gross unrealized losses | (20) | (580) |
Estimated fair value | 144,245 | 154,525 |
Corporate notes and bonds | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost | 1,581,382 | 1,224,195 |
Gross unrealized gains | 8,835 | 1,649 |
Gross unrealized losses | (5,188) | (17,880) |
Estimated fair value | 1,585,029 | 1,207,964 |
Foreign government bonds | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost | 50,180 | 24,654 |
Gross unrealized gains | 206 | 13 |
Gross unrealized losses | (180) | (516) |
Estimated fair value | 50,206 | 24,151 |
Municipal securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost | 79,404 | |
Gross unrealized gains | 301 | |
Gross unrealized losses | (231) | |
Estimated fair value | 79,474 | |
U.S. agency obligations | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost | 49,372 | 32,995 |
Gross unrealized gains | 232 | 4 |
Gross unrealized losses | (12) | (594) |
Estimated fair value | 49,592 | 32,405 |
U.S. treasury securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost | 717,015 | 321,946 |
Gross unrealized gains | 1,268 | 265 |
Gross unrealized losses | (3,824) | (6,014) |
Estimated fair value | $ 714,459 | $ 316,197 |
Short-Term Investments - Sche_2
Short-Term Investments - Schedule of Estimated Fair Value of Short-Term Investments, Designated as Available-for-Sale and Classified by Contractual Maturity (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Investments, Debt and Equity Securities [Abstract] | ||
Due in one year or less | $ 919,871 | $ 849,673 |
Due in greater than one year | 2,404,398 | 1,366,490 |
Total | $ 3,324,269 | $ 2,216,163 |
Short-Term Investments - Sche_3
Short-Term Investments - Schedule of Fair Values and Gross Unrealized Loss Position of Available-for-Sale Securities Aggregated by Investment Category (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Certificates of deposits | ||
Debt Securities, Available-for-Sale [Line Items] | ||
12 months or less, Fair value | $ 22,465 | $ 15,934 |
12 months or less, Gross unrealized losses | (14) | (66) |
Greater than 12 months, Fair value | 0 | 0 |
Greater than 12 months, Gross unrealized losses | 0 | 0 |
Asset-backed securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
12 months or less, Fair value | 120,543 | 293,854 |
12 months or less, Gross unrealized losses | (343) | (3,219) |
Greater than 12 months, Fair value | 105,419 | 78,279 |
Greater than 12 months, Gross unrealized losses | (1,444) | (2,489) |
Commercial paper | ||
Debt Securities, Available-for-Sale [Line Items] | ||
12 months or less, Fair value | 70,037 | 144,741 |
12 months or less, Gross unrealized losses | (20) | (580) |
Greater than 12 months, Fair value | 0 | 0 |
Greater than 12 months, Gross unrealized losses | 0 | 0 |
Corporate notes and bonds | ||
Debt Securities, Available-for-Sale [Line Items] | ||
12 months or less, Fair value | 394,823 | 604,264 |
12 months or less, Gross unrealized losses | (1,560) | (6,801) |
Greater than 12 months, Fair value | 280,092 | 370,969 |
Greater than 12 months, Gross unrealized losses | (3,628) | (11,079) |
Foreign government bonds | ||
Debt Securities, Available-for-Sale [Line Items] | ||
12 months or less, Fair value | 8,915 | 11,284 |
12 months or less, Gross unrealized losses | (19) | (126) |
Greater than 12 months, Fair value | 9,784 | 11,827 |
Greater than 12 months, Gross unrealized losses | (161) | (390) |
Municipal securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
12 months or less, Fair value | 31,418 | |
12 months or less, Gross unrealized losses | (122) | |
Greater than 12 months, Fair value | 13,686 | |
Greater than 12 months, Gross unrealized losses | (109) | |
U.S. agency obligations | ||
Debt Securities, Available-for-Sale [Line Items] | ||
12 months or less, Fair value | 1,795 | 4,941 |
12 months or less, Gross unrealized losses | (3) | (61) |
Greater than 12 months, Fair value | 4,991 | 24,461 |
Greater than 12 months, Gross unrealized losses | (9) | (533) |
U.S. treasury securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
12 months or less, Fair value | 280,946 | 210,246 |
12 months or less, Gross unrealized losses | (1,227) | (3,661) |
Greater than 12 months, Fair value | 204,274 | 63,422 |
Greater than 12 months, Gross unrealized losses | $ (2,597) | $ (2,353) |
Deferred Costs (Details)
Deferred Costs (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Deferred Costs [Abstract] | |||
Deferred costs | $ 23,916,000 | $ 31,825,000 | |
Amortization of deferred costs | 18,000,000 | 22,000,000 | $ 26,000,000 |
Impairment losses recorded in relation to the costs capitalized | $ 0 | $ 0 | $ 0 |
Property and Equipment, Net - C
Property and Equipment, Net - Components of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 95,289 | $ 81,932 |
Less accumulated depreciation | (36,757) | (32,115) |
Total property and equipment, net | 58,532 | 49,817 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,040 | 3,040 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 20,984 | 20,984 |
Land improvements and building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 22,392 | 22,392 |
Equipment and computers | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,551 | 2,233 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 15,498 | 13,995 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 30,793 | 18,986 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 31 | $ 302 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 6 | $ 6 | $ 7 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Goodwill | $ 439,877 | $ 439,877 | |
Amortization expense | $ 19,000 | $ 19,000 | $ 19,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Details of Intangible Assets (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 177,042 | $ 177,042 |
Accumulated amortization | (114,025) | (94,566) |
Net | 63,017 | 82,476 |
Existing technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 28,580 | 28,580 |
Accumulated amortization | (20,646) | (16,418) |
Net | $ 7,934 | $ 12,162 |
Remaining useful life (in years) | 2 years | 2 years 10 months 24 days |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 113,157 | $ 113,157 |
Accumulated amortization | (61,755) | (50,293) |
Net | $ 51,402 | $ 62,864 |
Remaining useful life (in years) | 5 years 3 months 18 days | 6 years 1 month 6 days |
Trade name and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 13,900 | $ 13,900 |
Accumulated amortization | (11,925) | (9,285) |
Net | $ 1,975 | $ 4,615 |
Remaining useful life (in years) | 9 months 18 days | 1 year 9 months 18 days |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 21,405 | $ 21,405 |
Accumulated amortization | (19,699) | (18,570) |
Net | $ 1,706 | $ 2,835 |
Remaining useful life (in years) | 2 years 2 months 12 days | 3 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Fiscal 2025 | $ 18,557 | |
Fiscal 2026 | 14,147 | |
Fiscal 2027 | 8,922 | |
Fiscal 2028 | 7,778 | |
Fiscal 2029 | 7,782 | |
Thereafter | 5,831 | |
Net | $ 63,017 | $ 82,476 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Payables and Accruals [Abstract] | ||
Accrued commissions | $ 9,848 | $ 11,240 |
Accrued bonus | 3,481 | 3,484 |
Accrued vacation | 7,375 | 6,653 |
Payroll tax payable | 13,829 | 16,229 |
Accrued other compensation and benefits | 8,900 | 6,676 |
Total accrued compensation and benefits | 43,433 | 44,282 |
Accrued fees payable to Salesforce, Inc. | 6,562 | 6,653 |
Taxes payable | 7,632 | 9,197 |
Accrued third-party professional services subcontractors' fees | 1,298 | 2,597 |
Other accrued expenses | 17,488 | 16,859 |
Total accrued expenses and other current liabilities | $ 32,980 | $ 35,306 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Hierarchy for Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Assets | ||
Short-term investments | $ 3,324,269 | $ 2,216,163 |
U.S. treasury securities | ||
Assets | ||
Short-term investments | 714,459 | 316,197 |
Certificates of deposits | ||
Assets | ||
Short-term investments | 94,283 | 37,963 |
Asset-backed securities | ||
Assets | ||
Short-term investments | 606,981 | 442,958 |
Commercial paper | ||
Assets | ||
Short-term investments | 144,245 | 154,525 |
Corporate notes and bonds | ||
Assets | ||
Short-term investments | 1,585,029 | 1,207,964 |
Foreign government bonds | ||
Assets | ||
Short-term investments | 50,206 | 24,151 |
Municipal securities | ||
Assets | ||
Short-term investments | 79,474 | |
U.S. agency obligations | ||
Assets | ||
Short-term investments | 49,592 | 32,405 |
Fair value, measurements recurring | ||
Assets | ||
Total financial assets | 3,408,051 | 2,426,929 |
Liabilities | ||
Total financial liabilities | (232) | |
Fair value, measurements recurring | Money market funds | ||
Assets | ||
Cash equivalents: | 73,197 | 180,895 |
Fair value, measurements recurring | U.S. treasury securities | ||
Assets | ||
Cash equivalents: | 9,969 | 22,929 |
Short-term investments | 714,459 | 316,197 |
Fair value, measurements recurring | Certificates of deposits | ||
Assets | ||
Short-term investments | 94,283 | 37,963 |
Fair value, measurements recurring | Asset-backed securities | ||
Assets | ||
Short-term investments | 606,981 | 442,958 |
Fair value, measurements recurring | Commercial paper | ||
Assets | ||
Short-term investments | 144,245 | 154,525 |
Fair value, measurements recurring | Corporate notes and bonds | ||
Assets | ||
Cash equivalents: | 6,691 | |
Short-term investments | 1,585,029 | 1,207,964 |
Fair value, measurements recurring | Foreign government bonds | ||
Assets | ||
Short-term investments | 50,206 | 24,151 |
Fair value, measurements recurring | Municipal securities | ||
Assets | ||
Short-term investments | 79,474 | |
Fair value, measurements recurring | U.S. agency obligations | ||
Assets | ||
Short-term investments | 49,592 | 32,405 |
Fair value, measurements recurring | Foreign currency derivative contracts | ||
Assets | ||
Short-term investments | 616 | 251 |
Fair value, measurements recurring | Foreign currency derivative contracts | ||
Liabilities | ||
Foreign currency derivative contracts | (232) | |
Fair value, measurements recurring | Level 1 | ||
Assets | ||
Total financial assets | 73,197 | 180,895 |
Liabilities | ||
Total financial liabilities | 0 | |
Fair value, measurements recurring | Level 1 | Money market funds | ||
Assets | ||
Cash equivalents: | 73,197 | 180,895 |
Fair value, measurements recurring | Level 1 | U.S. treasury securities | ||
Assets | ||
Cash equivalents: | 0 | 0 |
Short-term investments | 0 | 0 |
Fair value, measurements recurring | Level 1 | Certificates of deposits | ||
Assets | ||
Short-term investments | 0 | 0 |
Fair value, measurements recurring | Level 1 | Asset-backed securities | ||
Assets | ||
Short-term investments | 0 | 0 |
Fair value, measurements recurring | Level 1 | Commercial paper | ||
Assets | ||
Short-term investments | 0 | 0 |
Fair value, measurements recurring | Level 1 | Corporate notes and bonds | ||
Assets | ||
Cash equivalents: | 0 | |
Short-term investments | 0 | 0 |
Fair value, measurements recurring | Level 1 | Foreign government bonds | ||
Assets | ||
Short-term investments | 0 | 0 |
Fair value, measurements recurring | Level 1 | Municipal securities | ||
Assets | ||
Short-term investments | 0 | |
Fair value, measurements recurring | Level 1 | U.S. agency obligations | ||
Assets | ||
Short-term investments | 0 | 0 |
Fair value, measurements recurring | Level 1 | Foreign currency derivative contracts | ||
Assets | ||
Short-term investments | 0 | 0 |
Fair value, measurements recurring | Level 1 | Foreign currency derivative contracts | ||
Liabilities | ||
Foreign currency derivative contracts | 0 | |
Fair value, measurements recurring | Level 2 | ||
Assets | ||
Total financial assets | 3,334,854 | 2,246,034 |
Liabilities | ||
Total financial liabilities | (232) | |
Fair value, measurements recurring | Level 2 | Money market funds | ||
Assets | ||
Cash equivalents: | 0 | 0 |
Fair value, measurements recurring | Level 2 | U.S. treasury securities | ||
Assets | ||
Cash equivalents: | 9,969 | 22,929 |
Short-term investments | 714,459 | 316,197 |
Fair value, measurements recurring | Level 2 | Certificates of deposits | ||
Assets | ||
Short-term investments | 94,283 | 37,963 |
Fair value, measurements recurring | Level 2 | Asset-backed securities | ||
Assets | ||
Short-term investments | 606,981 | 442,958 |
Fair value, measurements recurring | Level 2 | Commercial paper | ||
Assets | ||
Short-term investments | 144,245 | 154,525 |
Fair value, measurements recurring | Level 2 | Corporate notes and bonds | ||
Assets | ||
Cash equivalents: | 6,691 | |
Short-term investments | 1,585,029 | 1,207,964 |
Fair value, measurements recurring | Level 2 | Foreign government bonds | ||
Assets | ||
Short-term investments | 50,206 | 24,151 |
Fair value, measurements recurring | Level 2 | Municipal securities | ||
Assets | ||
Short-term investments | 79,474 | |
Fair value, measurements recurring | Level 2 | U.S. agency obligations | ||
Assets | ||
Short-term investments | 49,592 | 32,405 |
Fair value, measurements recurring | Level 2 | Foreign currency derivative contracts | ||
Assets | ||
Short-term investments | 616 | $ 251 |
Fair value, measurements recurring | Level 2 | Foreign currency derivative contracts | ||
Liabilities | ||
Foreign currency derivative contracts | $ (232) |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Fair Value of Outstanding Derivative Instruments (Details) - Foreign currency derivative contracts - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Derivatives, Fair Value [Line Items] | ||
Notional amount of foreign currency derivative contracts | $ 201,407 | $ 137,998 |
Fair value of foreign currency derivative contracts | $ 201,024 | $ 137,860 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 546,837 | $ 482,885 | $ 487,962 |
Foreign | 41,186 | 26,211 | 24,349 |
Income before income taxes | $ 588,023 | $ 509,096 | $ 512,311 |
Income Taxes - Schedule of Co_2
Income Taxes - Schedule of Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Current provision: | |||
Federal | $ 126,174 | $ 110,610 | $ 53,426 |
State | 29,361 | 29,775 | 12,580 |
Foreign | 12,157 | 8,507 | 7,837 |
Total current provision | 167,692 | 148,892 | 73,843 |
Deferred (benefit) provision: | |||
Federal | (87,651) | (98,923) | 1,870 |
State | (15,739) | (20,755) | 945 |
Foreign | (1,984) | (7,824) | 8,264 |
Total deferred (benefit) provision | (105,374) | (127,502) | 11,079 |
Provision for income taxes | $ 62,318 | $ 21,390 | $ 84,921 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Income Tax Contingency [Line Items] | ||||
Federal statutory income tax rate | 21% | 21% | 21% | |
State net operating loss carryforwards | $ 25,000 | |||
Foreign net operating loss carryforwards | 18,000 | |||
Federal net operating loss carryforwards | 3,000 | |||
Unrecognized tax benefits | 39,737 | $ 30,713 | $ 25,241 | $ 18,628 |
Unrecognized tax benefits that would impact effective tax rate | 26,000 | |||
Accrued interest and penalties | 2,000 | $ 3,000 | $ 2,000 | |
State and Local Jurisdiction | California Franchise Tax Board | ||||
Income Tax Contingency [Line Items] | ||||
Tax credit carryforward | $ 78,000 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Statutory Federal Income Tax to Effective Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||
Expected provision at statutory tax rate | $ 123,485 | $ 106,910 | $ 107,585 |
State taxes, net of federal benefit | 12,056 | 7,318 | 11,035 |
Tax credits | (36,333) | (33,463) | (25,968) |
Stock-based compensation | (32,054) | (52,304) | (29,715) |
Valuation allowance | 13,572 | 5,654 | 19,402 |
Foreign derived intangible income deduction (FDII) | (15,489) | (15,811) | (3,406) |
Release of income tax reserves | (9,201) | (293) | (440) |
Other | 6,282 | 3,379 | 6,428 |
Provision for income taxes | $ 62,318 | $ 21,390 | $ 84,921 |
Income Taxes - Schedule of Co_3
Income Taxes - Schedule of Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Deferred tax assets: | ||
Accruals and reserves | $ 9,488 | $ 13,137 |
Capitalized expenditures | 228,845 | 123,746 |
Stock-based compensation | 49,710 | 32,536 |
Net operating loss carryforward | 6,469 | 12,245 |
Tax credit carryforward | 65,307 | 43,732 |
Lease liabilities | 13,967 | 15,724 |
Other | 2,403 | 7,890 |
Gross deferred tax assets | 376,189 | 249,010 |
Valuation allowance | (79,056) | (51,685) |
Total deferred tax assets | 297,133 | 197,325 |
Deferred tax liabilities: | ||
Intangible assets | (27,019) | (28,799) |
Lease right-of-use assets | (11,410) | (14,192) |
Deferred costs | (6,242) | (12,949) |
Other | (21,051) | (6,180) |
Total deferred tax liabilities | (65,722) | (62,120) |
Net deferred tax assets | $ 231,411 | $ 135,205 |
Income Taxes - Schedule of Chan
Income Taxes - Schedule of Changes in Total Gross Amount of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 30,713 | $ 25,241 | $ 18,628 |
Increases related to tax positions taken during the prior period | 7,385 | 971 | 3,218 |
Increases related to tax positions taken during the current period | 10,131 | 4,934 | 4,122 |
Decreases related to tax positions taken during the prior period | (17) | (137) | 0 |
Audit settlements | 0 | 0 | (195) |
Lapse of statute of limitations | (8,475) | (296) | (532) |
Ending balance | $ 39,737 | $ 30,713 | $ 25,241 |
Deferred Revenue, Performance_2
Deferred Revenue, Performance Obligations, and Unbilled Accounts Receivable - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Disaggregation of Revenue [Line Items] | |||
Unbilled accounts receivable | $ 36,365 | $ 82,174 | |
Subscription services | |||
Disaggregation of Revenue [Line Items] | |||
Recognition of deferred revenue | 833,000 | 708,000 | $ 605,000 |
Unbilled accounts receivable | 4,000 | 50,000 | |
Professional services and other | |||
Disaggregation of Revenue [Line Items] | |||
Unbilled accounts receivable | $ 32,000 | $ 32,000 |
Deferred Revenue, Performance_3
Deferred Revenue, Performance Obligations, and Unbilled Accounts Receivable - Performance Obligation Duration (Details) | Jan. 31, 2024 |
Subscription services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-02-01 | |
Revenue From Contracts With Customers [Line Items] | |
Revenue, remaining performance obligation, recognition period | 12 months |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Leases [Line Items] | |||
Operating lease expense | $ 16 | $ 16 | $ 14 |
Maximum | |||
Leases [Line Items] | |||
Operating leases, options to extend leases term | 7 years | ||
Finance leases, options to extend leases term | 7 years |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Leases [Abstract] | ||
Cash paid for operating lease liabilities | $ 10,291 | $ 12,908 |
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities | $ 3,700 | $ 14,488 |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Balance Sheet Information Related to Operating Leases (Details) | Jan. 31, 2024 | Jan. 31, 2023 |
Leases [Abstract] | ||
Weighted Average Remaining Lease Term | 6 years 7 months 6 days | 6 years 8 months 12 days |
Weighted Average Discount Rate | 4.40% | 4.20% |
Leases- Schedule of Maturities
Leases- Schedule of Maturities of Lease Liabilities (Details) $ in Thousands | Jan. 31, 2024 USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
Fiscal 2025 | $ 10,213 |
Fiscal 2026 | 10,710 |
Fiscal 2027 | 9,798 |
Fiscal 2028 | 9,116 |
Fiscal 2029 | 6,553 |
Thereafter | 19,348 |
Total operating lease payments | 65,738 |
Less imputed interest | 9,963 |
Total operating lease liabilities | $ 55,775 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Jan. 31, 2024 USD ($) vote $ / shares shares | Jan. 31, 2023 $ / shares shares | Jan. 31, 2022 $ / shares | Oct. 17, 2023 shares | Oct. 16, 2023 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock, shares authorized (in shares) | 810,000,000 | 1,000,000,000 | |||
Common stock, shares outstanding (in shares) | 161,260,172 | ||||
Options outstanding (in shares) | 11,147,810 | 11,503,409 | |||
Unrecognized compensation cost related to unvested stock options granted | $ | $ 343 | ||||
Share price (in usd per share) | $ / shares | $ 207.41 | ||||
Intrinsic value of options exercised | $ | $ 353 | ||||
2012 Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options outstanding (in shares) | 0 | ||||
2013 Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options outstanding (in shares) | 0 | ||||
Number of additional shares authorized (in shares) | 13,750,000 | ||||
Common stock, shares outstanding, percentage | 5% | ||||
Weighted-average grant date fair value of options granted (in usd per share) | $ / shares | $ 81.17 | $ 88.25 | $ 108.42 | ||
2013 Equity Incentive Plan | Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares issued in period (in shares) | 7,912,230 | ||||
2013 Employee Stock Purchase Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of additional shares authorized (in shares) | 2,200,000 | ||||
Common stock, shares outstanding, percentage | 1% | ||||
Number of shares reserved for future issuance (in shares) | 4,000,000 | ||||
Number of shares authorized (in shares) | 4,897,856 | ||||
Percent of fair market value paid for shares | 85% | ||||
Percentage of payroll deductions for shares acquired | 15% | ||||
2013 Employee Stock Purchase Plan | Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares issued in period (in shares) | 0 | ||||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 1 year | ||||
Weighted average period of unvested stock (in years) | 1 year 7 months 6 days | ||||
Unrecognized compensation cost related to unvested RSUs | $ | $ 122 | ||||
Total intrinsic value, vested | $ | $ 223 | ||||
Certain Restricted Stock Units | 2013 Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 5 years | ||||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 4 years | ||||
Weighted average period of unvested stock (in years) | 2 years 2 months 12 days | ||||
Stock Options | 2013 Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 4 years | ||||
Maximum | Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 4 years | ||||
Maximum | Restricted Stock Units (RSUs) | 2013 Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 4 years | ||||
Maximum | Stock Options | 2013 Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options exercisable period | 10 years | ||||
Maximum | Certain Employee Stock Options | 2013 Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 7 years | ||||
Minimum | Restricted Stock Units (RSUs) | 2013 Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 1 year | ||||
Minimum | Certain Employee Stock Options | 2013 Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 5 years | ||||
Class A common stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock, shares authorized (in shares) | 800,000,000 | 800,000,000 | |||
Vote per common share | vote | 1 | ||||
Common stock, shares outstanding (in shares) | 161,260,172 | 143,693,009 | |||
Class A common stock | 2013 Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares available for issuance (in shares) | 45,510,340 | ||||
Class B common stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock, shares authorized (in shares) | 0 | 190,000,000 | |||
Common stock, shares outstanding (in shares) | 0 | 14,551,598 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Number of shares | ||
Options outstanding, beginning balance (in shares) | 11,503,409 | |
Options granted (in shares) | 2,511,610 | |
Options exercised (in shares) | (2,277,533) | |
Options forfeited/cancelled (in shares) | (589,676) | |
Options outstanding, ending balance (in shares) | 11,147,810 | 11,503,409 |
Options vested and exercisable (in shares) | 4,962,412 | |
Options vested and exercisable and expected to vest thereafter (in shares) | 11,147,810 | |
Weighted average exercise price | ||
Options outstanding, beginning balance (in usd per share) | $ 128.62 | |
Options granted (in usd per share) | 180.59 | |
Options exercised (in usd per share) | 27.52 | |
Options forfeited/cancelled (in usd per share) | 200.03 | |
Options outstanding, ending balance (in usd per share) | 157.20 | $ 128.62 |
Options vested and exercisable (in usd per share) | 123.63 | |
Options vested and exercisable and expected to vest thereafter (in usd per share) | $ 157.20 | |
Weighted average remaining contractual term (in years), options outstanding | 6 years 8 months 12 days | 5 years 10 months 24 days |
Weighted average remaining contractual term (in years), options vested and exercisable | 5 years 1 month 6 days | |
Weighted average remaining contractual term (in years), options vested and exercisable and expected to vest thereafter | 6 years 8 months 12 days | |
Aggregate intrinsic value (in millions) | ||
Options outstanding | $ 626 | $ 705 |
Options vested and exercisable | 449 | |
Options vested and exercisable and expected to vest thereafter | $ 626 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Weighted-Average Assumptions Used to Estimate Grant Date Fair Value of Options Granted (Details) - Stock Options | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility, minimum | 39% | 37% | 37% |
Volatility, maximum | 41% | 40% | 39% |
Expected term (in years) | 6 years 3 months | ||
Risk-free interest rate, minimum | 3.34% | 1.90% | 0.70% |
Risk-free interest rate, maximum | 4.73% | 4.20% | 1.60% |
Dividend yield | 0% | 0% | 0% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 years 3 months | 6 years | |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 7 years | 7 years |
Stockholders' Equity - Schedu_3
Stockholders' Equity - Schedule of Restricted Stock Unit (RSU) Activity (Details) - Restricted Stock Units (RSUs) | 12 Months Ended |
Jan. 31, 2024 $ / shares shares | |
Unreleased restricted stock units | |
Beginning balance (in shares) | shares | 1,103,679 |
RSUs granted (in shares) | shares | 1,181,528 |
RSUs vested (in shares) | shares | (1,150,059) |
RSUs forfeited/cancelled (in shares) | shares | (123,417) |
Ending balance (in shares) | shares | 1,011,731 |
Weighted average grant date fair value | |
Beginning balance (in usd per share) | $ / shares | $ 194.36 |
RSUs granted (in usd per share) | $ / shares | 180.78 |
RSUs vested (in usd per share) | $ / shares | 182.95 |
RSUs forfeited/cancelled (in usd per share) | $ / shares | 183.81 |
Ending balance (in usd per share) | $ / shares | $ 192.77 |
Other Income (Details)
Other Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Other Income and Expenses [Abstract] | |||
Foreign currency gain (loss) | $ 124 | $ 591 | $ (714) |
Accretion (amortization) on investments | 24,817 | 2,982 | (7,201) |
Interest income, net | 133,748 | 45,860 | 14,730 |
Miscellaneous income | 0 | 572 | 0 |
Other income, net | $ 158,689 | $ 50,005 | $ 6,815 |
Net Income per Share - Schedule
Net Income per Share - Schedule of Numerators and Denominators of the Basic and Diluted EPS Computations for Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | |||
Weighted average shares used in computing net income per share, basic (in shares) | 160,532 | 155,385 | 153,251 |
Net income per share, basic (in usd per share) | $ 3.27 | $ 3.14 | $ 2.79 |
Reallocation as a result of conversion of Class B to Class A common stock: | |||
Weighted average shares used in computing net income per share, diluted (in shares) | 163,486 | 162,437 | 162,277 |
Net income per share, diluted (in usd per share) | $ 3.22 | $ 3 | $ 2.63 |
Class A | |||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | |||
Net income, basic | $ 491,747 | $ 441,425 | $ 386,180 |
Weighted average shares used in computing net income per share, basic (in shares) | 150,162 | 140,640 | 138,474 |
Net income per share, basic (in usd per share) | $ 3.27 | $ 3.14 | $ 2.79 |
Net income, basic | $ 491,747 | $ 441,425 | $ 386,180 |
Reallocation as a result of conversion of Class B to Class A common stock: | |||
Net income, basic | 33,958 | 46,281 | 41,210 |
Reallocation of net income to Class B common stock | 0 | 0 | 0 |
Net income, diluted | $ 525,705 | $ 487,706 | $ 427,390 |
Conversion of Class B to Class A common stock (in shares) | 10,370 | 14,745 | 14,777 |
Effect of potentially dilutive common shares (in shares) | 2,954 | 7,052 | 9,026 |
Weighted average shares used in computing net income per share, diluted (in shares) | 163,486 | 162,437 | 162,277 |
Net income per share, diluted (in usd per share) | $ 3.22 | $ 3 | $ 2.63 |
Class B | |||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | |||
Net income, basic | $ 33,958 | $ 46,281 | $ 41,210 |
Weighted average shares used in computing net income per share, basic (in shares) | 10,370 | 14,745 | 14,777 |
Net income per share, basic (in usd per share) | $ 3.27 | $ 3.14 | $ 2.79 |
Net income, basic | $ 33,958 | $ 46,281 | $ 41,210 |
Reallocation as a result of conversion of Class B to Class A common stock: | |||
Net income, basic | 0 | 0 | 0 |
Reallocation of net income to Class B common stock | 8,887 | 19,163 | 21,480 |
Net income, diluted | $ 42,845 | $ 65,444 | $ 62,690 |
Conversion of Class B to Class A common stock (in shares) | 0 | 0 | 0 |
Effect of potentially dilutive common shares (in shares) | 2,954 | 7,052 | 9,026 |
Weighted average shares used in computing net income per share, diluted (in shares) | 13,324 | 21,797 | 23,803 |
Net income per share, diluted (in usd per share) | $ 3.22 | $ 3 | $ 2.63 |
Net Income per Share - Schedu_2
Net Income per Share - Schedule of Potential Common Share Equivalents Excluded where the Inclusion would be Anti-dilutive (Details) - shares | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Earnings Per Share [Abstract] | |||
Options and awards (in shares) | 6,083,281 | 3,945,110 | 958,476 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Mar. 13, 2017 USD ($) | Jan. 26, 2017 employee |
IQVIA Litigation Matter | Minimum | ||
Long-term Purchase Commitment [Line Items] | ||
Monetary damages | $ | $ 200 | |
Medidata Litigation Matter | ||
Long-term Purchase Commitment [Line Items] | ||
Number of former employees | employee | 5 |
Revenues by Product - Schedule
Revenues by Product - Schedule of Total Revenues (Details) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 USD ($) product_area | Jan. 31, 2023 USD ($) | Jan. 31, 2022 USD ($) | |
Disaggregation of Revenue [Line Items] | |||
Number of product areas | product_area | 2 | ||
Total revenues | $ 2,363,673 | $ 2,155,060 | $ 1,850,777 |
Total subscription services | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,901,593 | 1,733,002 | 1,483,976 |
Commercial Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 995,803 | 946,252 | 876,458 |
R&D Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 905,790 | 786,750 | 607,518 |
Total professional services | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 462,080 | 422,058 | 366,801 |
Commercial Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 185,981 | 177,188 | 165,086 |
R&D Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 276,099 | $ 244,870 | $ 201,715 |
Information about Geographic _3
Information about Geographic Areas - Schedule of Revenues by Geographic Area (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Revenues by geography | |||
Total revenues | $ 2,363,673 | $ 2,155,060 | $ 1,850,777 |
North America | |||
Revenues by geography | |||
Total revenues | 1,387,425 | 1,253,760 | 1,063,770 |
Europe | |||
Revenues by geography | |||
Total revenues | 662,560 | 598,828 | 509,127 |
Asia Pacific | |||
Revenues by geography | |||
Total revenues | 250,600 | 244,655 | 225,968 |
Middle East, Africa, and Latin America | |||
Revenues by geography | |||
Total revenues | $ 63,088 | $ 57,817 | $ 51,912 |
Information about Geographic _4
Information about Geographic Areas - Schedule of Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Long-lived assets by geography | ||
Total long-lived assets | $ 58,532 | $ 49,817 |
North America | ||
Long-lived assets by geography | ||
Total long-lived assets | 49,725 | 42,003 |
Europe | ||
Long-lived assets by geography | ||
Total long-lived assets | 6,885 | 5,336 |
Asia Pacific | ||
Long-lived assets by geography | ||
Total long-lived assets | 751 | 963 |
Middle East, Africa, and Latin America | ||
Long-lived assets by geography | ||
Total long-lived assets | $ 1,171 | $ 1,515 |
401(k) Plan (Details)
401(k) Plan (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Total expense related defined benefit plan | $ 9,000,000 | $ 8,000,000 | $ 7,000,000 |
401(k) Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer maximum matching contribution amount per employee per year | 2,000 | ||
RRSP | CANADA | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer maximum matching contribution amount per employee per year | $ 2,000 |