Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 30, 2016 | May. 27, 2016 | |
Document And Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Apr. 30, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | VEEV | |
Entity Registrant Name | VEEVA SYSTEMS INC | |
Entity Central Index Key | 1,393,052 | |
Current Fiscal Year End Date | --01-31 | |
Entity Filer Category | Large Accelerated Filer | |
Class A common stock [Member] | ||
Document And Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 96,768,253 | |
Class B common stock [Member] | ||
Document And Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 37,996,223 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 30, 2016 | Jan. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 245,942 | $ 132,179 |
Short-term investments | 211,493 | 214,024 |
Accounts receivable, net of allowance for doubtful accounts of $337 and $413, respectively | 81,776 | 144,798 |
Prepaid expenses and other current assets | 9,163 | 9,963 |
Total current assets | 548,374 | 500,964 |
Property and equipment, net | 47,659 | 47,469 |
Capitalized internal-use software, net | 969 | 979 |
Goodwill | 95,804 | 95,804 |
Intangible assets, net | 45,446 | 47,500 |
Deferred income taxes, noncurrent | 9,865 | 9,359 |
Other long-term assets | 3,675 | 3,724 |
Total assets | 751,792 | 705,799 |
Current liabilities: | ||
Accounts payable | 4,630 | 4,600 |
Accrued compensation and benefits | 11,894 | 12,451 |
Accrued expenses and other current liabilities | 8,045 | 11,059 |
Income tax payable | 1,753 | 750 |
Deferred revenue | 180,776 | 157,419 |
Total current liabilities | 207,098 | 186,279 |
Deferred income taxes, noncurrent | 10,287 | 10,622 |
Other long-term liabilities | 3,861 | 3,649 |
Total liabilities | $ 221,246 | $ 200,550 |
Commitments and contingencies (Note 12) | ||
Stockholders’ equity: | ||
Additional paid-in capital | $ 374,192 | $ 361,691 |
Accumulated other comprehensive income | 459 | 172 |
Retained earnings | 155,894 | 143,385 |
Total stockholders’ equity | 530,546 | 505,249 |
Total liabilities and stockholders’ equity | 751,792 | 705,799 |
Class A common stock [Member] | ||
Stockholders’ equity: | ||
Common stock | $ 1 | $ 1 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Apr. 30, 2016 | Jan. 31, 2016 |
Allowance for doubtful accounts | $ 337 | $ 413 |
Class A common stock [Member] | ||
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 800,000,000 | 800,000,000 |
Common stock, shares issued | 96,341,558 | 87,359,026 |
Common stock, shares outstanding | 96,341,558 | 87,359,026 |
Class B common stock [Member] | ||
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 190,000,000 | 190,000,000 |
Common stock, shares issued | 38,047,403 | 46,186,159 |
Common stock, shares outstanding | 38,047,403 | 46,186,159 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | ||
Revenues: | |||
Subscription services | $ 96,032 | $ 68,894 | |
Professional services and other | 23,732 | 21,029 | |
Total revenues | 119,764 | 89,923 | |
Cost of revenues: | |||
Cost of subscription services | [1] | 21,745 | 15,873 |
Cost of professional services and other | [1] | 19,346 | 16,112 |
Total cost of revenues | [1] | 41,091 | 31,985 |
Gross profit | 78,673 | 57,938 | |
Operating expenses: | |||
Research and development | [1] | 22,073 | 12,957 |
Sales and marketing | [1] | 26,723 | 15,496 |
General and administrative | [1] | 12,071 | 8,560 |
Total operating expenses | [1] | 60,867 | 37,013 |
Operating income | 17,806 | 20,925 | |
Other income, net | 2,747 | 763 | |
Income before income taxes | 20,553 | 21,688 | |
Provision for income taxes | 8,044 | 8,706 | |
Net income | 12,509 | 12,982 | |
Net income attributable to Class A and Class B common stockholders, basic and diluted | $ 12,505 | $ 12,964 | |
Net income per share attributable to Class A and Class B common stockholders: | |||
Basic | $ 0.09 | $ 0.10 | |
Diluted | $ 0.09 | $ 0.09 | |
Weighted-average shares used to compute net income per share attributable to Class A and Class B common stockholders: | |||
Basic | 133,996 | 131,163 | |
Diluted | 145,708 | 144,734 | |
Other comprehensive income (loss): | |||
Net change in unrealized gains (losses) on available-for-sale investments | $ 174 | $ (3) | |
Net change in cumulative foreign currency translation gain (loss) | 113 | (8) | |
Comprehensive income | $ 12,796 | $ 12,971 | |
[1] | Includes stock-based compensation as follows: Cost of revenues: Cost of subscription services$209 $111 Cost of professional services and other 1,178 742 Research and development 2,394 1,383 Sales and marketing 2,455 1,120 General and administrative 1,907 1,443 Total stock-based compensation$8,143 $4,799 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Stock-based compensation | $ 8,143 | $ 4,799 |
Cost of subscription services [Member] | ||
Stock-based compensation | 209 | 111 |
Cost of professional services and other [Member] | ||
Stock-based compensation | 1,178 | 742 |
Research and development [Member] | ||
Stock-based compensation | 2,394 | 1,383 |
Sales and marketing [Member] | ||
Stock-based compensation | 2,455 | 1,120 |
General and administrative [Member] | ||
Stock-based compensation | $ 1,907 | $ 1,443 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Cash flows from operating activities | ||
Net income | $ 12,509 | $ 12,982 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 3,405 | 1,024 |
Amortization of premiums on short-term investments | 420 | 763 |
Stock-based compensation | 8,143 | 4,799 |
Deferred income taxes | (838) | |
Bad debt recovery | (205) | (7) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 63,227 | 23,536 |
Income taxes | 380 | 2,862 |
Prepaid expenses and other current and long-term assets | 1,390 | 33 |
Accounts payable | 66 | (760) |
Accrued expenses and other current liabilities | (2,905) | (1,336) |
Deferred revenue | 23,357 | (2,197) |
Other long-term liabilities | 411 | 92 |
Net cash provided by operating activities | 109,360 | 41,791 |
Cash flows from investing activities | ||
Purchases of short-term investments | (67,740) | (100,837) |
Maturities and sales of short-term investments | 70,025 | 47,744 |
Purchases of property and equipment | (2,057) | (4,710) |
Acquisitions, net of cash acquired | (9,987) | |
Capitalized internal-use software development costs | (140) | (22) |
Changes in restricted cash and deposits | (6) | 1 |
Net cash provided by (used in) investing activities | 82 | (67,811) |
Cash flows from financing activities | ||
Proceeds from early exercise of common stock options | 8 | |
Proceeds from exercise of common stock options | 1,345 | 1,162 |
Restricted stock units acquired to settle employee tax withholding liability | (1) | (4) |
Excess tax benefits from employee stock plans | 2,861 | 3,169 |
Net cash provided by financing activities | 4,205 | 4,335 |
Effect of exchange rate changes on cash and cash equivalents | 116 | (7) |
Net change in cash and cash equivalents | 113,763 | (21,692) |
Cash and cash equivalents at beginning of period | 132,179 | 129,253 |
Cash and cash equivalents at end of period | 245,942 | 107,561 |
Supplemental disclosures of other cash flow information: | ||
Cash paid for income taxes, net of refunds | 2,965 | 2,642 |
Non-cash investing and financing activities: | ||
Changes in accounts payable and accrued liabilities related to property and equipment purchases | (689) | 2,482 |
Vesting of early exercised stock options | $ 16 | $ 17 |
Summary of Business and Signifi
Summary of Business and Significant Accounting Policies | 3 Months Ended |
Apr. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Business and Significant Accounting Policies | Note 1. Summary of Business and Significant Accounting Policies Description of Business Veeva is a leading provider of industry cloud software and data solutions for life sciences companies. We were founded in 2007 on the premise that industry-specific cloud solutions could best address the operating challenges and regulatory requirements of the global life sciences industry. Our solutions are designed to meet the unique needs of life sciences companies regardless of size and to address their most strategic business functions. From research and development to commercialization, our solutions are designed to help our customers bring products to market faster and more efficiently, market and sell more effectively and maintain compliance with government regulations. We provide multichannel customer relationship management, regulated content and information management, master data management and data and data services that meet the specialized functional and compliance needs of life sciences companies. Recently, we announced that we will begin selling certain of our regulated content and information management applications to companies in regulated industries adjacent to life sciences. Our fiscal year end is January 31. Principles of Consolidation and Basis of Presentation These unaudited condensed 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 interim financial reporting and include the accounts of our wholly owned subsidiaries after elimination of intercompany accounts and transactions. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in Veeva’s Annual Report on Form 10-K for the fiscal year ended January 31, 2016, filed on March 31, 2016. There have been no changes to our significant accounting policies described in the annual report that have had a material impact on our condensed consolidated financial statements and related notes. The consolidated balance sheet as of January 31, 2016 included herein was derived from the audited financial statements as of that date. These unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, our comprehensive income and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year ending January 31, 2017 or any other period. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires us to make estimates, judgments and assumptions that affect the condensed consolidated financial statements and the notes thereto. These estimates are based on information available as of the date of the condensed consolidated financial statements. On a regular basis, management evaluates these estimates and assumptions. Significant items subject to such estimates and assumptions include, but are not limited to: · the best estimate of selling price of the deliverables included in multiple-deliverable revenue arrangements; · the collectibility of our accounts receivable; · the fair value of assets acquired and liabilities assumed for business combinations; · the valuation of short-term investments and the determination of other-than-temporary impairments; · the valuation of building and land; · the realizability of deferred income tax assets and liabilities; · the fair value of our stock-based awards and related forfeiture rates; and · the capitalization and estimated useful life of internal-use software development costs. As future events cannot be determined with precision, actual results could differ significantly from those estimates. Revenue Recognition We derive our revenues primarily from subscription services fees and professional services fees. Subscription services revenues consist of fees from customers accessing our cloud-based software solutions and subscription or license fees for our data solutions. In addition, Zinc Ahead, a company we recently acquired, had a limited number of perpetual license agreements with accompanying maintenance and hosting fees. We have included such on-going maintenance and hosting fees in our subscription services revenues. Professional services and other revenues consist primarily of fees from implementation services, configuration, data services, training and managed services related to our solutions. We commence revenue recognition when all of the following conditions are satisfied: · there is persuasive evidence of an arrangement; · the service has been or is being provided to the customer; · the collection of the fees is reasonably assured; and · the amount of fees to be paid by the customer is fixed or determinable. Our subscription services arrangements are generally non-cancellable and do not provide for refunds to customers in the event of cancellations. We record revenues net of any sales taxes. Subscription Services Revenues Subscription services revenues are recognized ratably over the order term beginning when the solution has been provisioned to the customer. Our subscription arrangements are considered service contracts, and the customer does not have the right to take possession of the software. On-going maintenance and hosting fees for Zinc Ahead solutions are also recognized ratably over the accompanying maintenance and hosting term. Professional Services and Other Revenues The majority of our professional services arrangements are recognized on a time and materials basis. Professional services revenues recognized on a time and materials basis are measured monthly based on time incurred and contractually agreed upon rates. Certain professional services revenues are based on fixed fee arrangements and revenues are recognized based on the proportional performance method. In some cases, the terms of our time and materials and fixed fee arrangements may require that we defer the recognition of revenue until contractual conditions are met. Data services and training revenues are generally recognized as the services are performed. Multiple Element Arrangements We apply the provisions of Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2009-13, Multiple—Deliverable Revenue Arrangements, to allocate revenues based on relative best estimated selling price to each unit of accounting in multiple element arrangements, which generally include subscriptions and professional services. Best estimated selling price of each unit of accounting included in a multiple element arrangement is based upon management’s estimate of the selling price of deliverables when vendor specific objective evidence or third-party evidence of selling price is not available. We enter into arrangements with multiple deliverables that generally include our subscription offerings and professional services. For these arrangements we must: (i) determine whether each deliverable has stand-alone value; (ii) determine the estimated selling price of each element using the selling price hierarchy of vendor specific objective evidence (VSOE) of fair value, third-party evidence (TPE) or best estimated selling price (BESP), as applicable; and (iii) allocate the total price among the various deliverables based on the relative selling price method. In determining whether professional services and other revenues have stand-alone value, we consider the following factors for each consulting agreement: availability of the consulting services from other vendors, the nature of the consulting services and whether the professional services are required in order for the customer to use the subscription services. If stand-alone value cannot be established for a delivered item in a multiple-element arrangement, the delivered item is accounted for as a combined unit of accounting with the undelivered item(s). We have established stand-alone value with respect to all of our offerings except professional services for the recently acquired Zinc Ahead business. As a result, we account for multiple element arrangements that include Zinc Ahead professional services as a combined unit of accounting and recognize the revenues from such professional services ratably over the term of the associated subscription services. We have determined that we are not able to establish VSOE of fair value or TPE of selling price for any of our deliverables, and accordingly we use BESP for each deliverable in the arrangement. The objective of BESP is to estimate the price at which we would transact a sale of the service deliverables if the services were sold on a stand-alone basis. Revenue allocated to each deliverable is recognized when the basic revenue recognition criteria are met for each deliverable. We determine BESP for our subscription services included in a multiple element arrangement by considering multiple factors including, but not limited to, stated subscription renewal rates offered to the customer to renew the service and other major groupings such as customer type and geography. BESP for professional services considers the discount of actual professional services sold compared to list price, the experience level of the individual performing the service and the estimated location of the end users for which the services were performed. We allocate consideration proportionately based on established BESP and then recognize the allocated revenue over the respective delivery periods for each element. Deferred Revenue Deferred revenue includes amounts billed to customers for which the revenue recognition criteria have not been met. Deferred revenue primarily consists of billings or payments received in advance of revenue recognition from our subscription services, and to a lesser extent, professional services and other revenues described above, and is recognized as the revenue recognition criteria are met. We generally invoice our customers in annual, quarterly or monthly installments for the subscription services. Accordingly, the deferred revenue balance does not generally represent the total contract value of a subscription arrangement. Deferred revenue that will be recognized during the succeeding 12-month period is recorded as current deferred revenue and the remaining portion is recorded as noncurrent, which is in the other long-term liabilities on the consolidated balance sheet. 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 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 in safekeeping by large, credit-worthy 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 to 60 days of billing. We periodically evaluate the collectibility of our accounts receivable and provide an allowance for doubtful accounts as necessary, based on historical experience. Historically, such losses have not been material. The following customers individually exceeded 10% of total accounts receivable as of the dates shown: April 30, January 31, 2016 2016 Customer 1 * 16% Customer 2 * 15 Customer 3 14% * * Does not exceed 10%. No single customer represented over 10% of total revenues in the condensed consolidated financial statements for the three months ended April 30, 2016 and 2015. Recent Accounting Pronouncements Stock-Based Compensation In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) 2016-09, “ Compensation-Stock Compensation: Improvements to Employee Share-Based Payment Leases In February 2016, the FASB issued ASU 2016-02, “ Leases”. Financial Instruments In January 2016, the FASB issued ASU 2016-1, “Financial Instruments.” Business Combinations In September 2015, the FASB issued ASU 2015-16, “Simplifying the Accounting for Measurement-Period Adjustments.” Cloud Computing Arrangements In April 2015, the FASB issued ASU 2015-05, “Customer's Accounting for Fees Paid in a Cloud Computing Arrangement.” Revenue Recognition In May 2014, the FASB issued ASU 2014-09, “ Revenue from Contracts with Customers Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients |
Acquisitions
Acquisitions | 3 Months Ended |
Apr. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | Note 2. Acquisitions Our acquisitions are accounted for as business combinations. In accordance with authoritative guidance on business combination accounting, the assets and liabilities of the acquired companies were recorded as of the acquisition date, at their respective fair values, and are included within our condensed consolidated financial statements. The results of operations related to each company acquired have been included in our condensed consolidated statements of operations from the date of acquisitions. All acquisition-related transaction costs are expensed and reflected in general and administrative expenses on our condensed consolidated statements of comprehensive income for the periods presented. Goodwill represents the excess of the purchase price over the fair value of the underlying net tangible and intangible assets and represents the future economic benefits of the customer relationships and data technology contributions in support of our data-related offerings. Goodwill is not deductible for U.S. tax purposes. The fair values assigned to assets acquired and liabilities assumed are based on management’s best estimates and assumptions as of the reporting date and are considered preliminary pending finalization of valuation analyses pertaining to intangible assets acquired, liabilities assumed and tax liabilities assumed including calculation of deferred tax assets and liabilities. Changes to amounts recorded as assets or liabilities may result in corresponding adjustments to goodwill during the measurement period (up to one year from the acquisition date). Zinc Ahead On September 29, 2015, we completed our acquisition of Mineral Newco Ltd., the ultimate parent company of Zinc Ahead Ltd, a company organized under the laws of the United Kingdom that is the ultimate parent company of Zinc Ahead Holdings Ltd, Zinc Ahead Ltd, Zinc Ahead Inc., Zinc Ahead PTY LTD and Zinc Ahead (Japan) KK (collectively, “Zinc Ahead”), in an all-cash transaction. Through a share purchase agreement our indirect subsidiary, Veeva U.K. Holdings Limited, acquired all of the share capital of Zinc Ahead. Under the acquisition method of accounting, the total purchase price was allocated to Zinc Ahead's net tangible and intangible assets based upon their estimated fair values as of September 29, 2015. The total closing consideration for the purchase was approximately $119.9 million in cash. In addition, the agreement, as revised, calls for $9.6 million payable over three years at a rate of one-third per year to employee shareholders and option holders of Zinc Ahead who remain employed with us. These payments have been accounted for as deferred compensation and will be recognized over the service period. Zinc Ahead was a provider of commercial content management solutions. We expect this acquisition to support the continued growth of our commercial content management solutions. Over time, we will seek to convert the users of the Zinc Ahead solutions to our Veeva Vault PromoMats application. As of April 30, 2016, we had incurred $2.2 million in acquisition-related transaction costs which are reflected in general and administrative expenses on our condensed consolidated statements of comprehensive income. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands): Useful Lives of Intangible Assets Fair Value Purchase price Cash $ 119,935 Allocation of purchase price Cash $ 3,107 Accounts receivable 4,600 Other current and non-current assets 5,140 Deferred tax liabilities, net (12,316 ) Other current and non-current liabilities (8,730 ) Net liabilities $ (8,199 ) Customer contracts and relationships 10 years $ 31,823 Software 4.5 years 10,063 Brand 3.5 years 1,141 Purchased intangible assets $ 43,027 Goodwill $ 85,107 Total purchase price $ 119,935 We did not record any in-process research and development in connection with the Zinc Ahead acquisition. The following unaudited pro forma information for the three months ended April 30, 2015, presents the combined results of operations for the periods presented as if the acquisition had been completed on February 1, 2015, the beginning of the comparable prior annual reporting period. The unaudited pro forma results include the amortization associated with preliminary estimates for the acquired intangible assets, changes to interest income for cash used in the acquisition, and exclude acquisition-related transaction costs and the associated tax impact on these unaudited pro forma adjustments. The unaudited pro forma results do not reflect any cost saving synergies from operating efficiencies or the effect of the incremental costs incurred in integrating the two companies. Accordingly, these unaudited pro forma results are presented for informational purpose only and are not necessarily indicative of what the actual results of operations of the combined company would have been if the acquisition had occurred at the beginning of the period presented, nor are they indicative of future results of operations (in thousands): Three Months Ended April 30, 2015 (Unaudited) Pro forma revenues $ 96,531 Pro forma net income $ 9,916 Pro forma net income per share attributable to Class A and Class B common stockholders: Basic $ 0.08 Diluted $ 0.07 Qforma CrowdLink On March 31, 2015, we completed our acquisition of the key opinion leader, or KOL, business and products known as Qforma CrowdLink in an all-cash transaction. We expect this acquisition to support our key opinion leader business. Total purchase price was $9.8 million in cash. There are no contingent cash payments related to this transaction. We had incurred $0.4 million in acquisition-related transaction costs which are reflected in general and administrative expenses on our condensed consolidated statements of comprehensive income. The assets, liabilities and operating results of Qforma CrowdLink have been reflected in our condensed consolidated financial statements from the date of acquisition and have not been material. Through the transaction we acquired the outstanding equity interests of Mederi AG, and the selected other KOL-related business assets and liabilities of Qforma, Inc. and other affiliated entities. Under the acquisition method of accounting, the total purchase price was allocated to Qforma CrowdLink's net tangible and intangible assets based upon their estimated fair values as of March 31, 2015. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands): Useful Lives of Intangible Assets Fair Value Purchase price Cash $ 9,750 Allocation of purchase price Cash $ 56 Accounts receivable 1,085 Deferred tax assets, net 143 Other current and non-current assets 50 Other current and non-current liabilities (731 ) Net assets $ 603 Database 5 years $ 1,800 Customer relationships 4 years 800 Software 5 years 500 Existing technology 5 years 200 Purchased intangible assets $ 3,300 Goodwill $ 5,847 Total purchase price $ 9,750 We did not record any in-process research and development in connection with the Qforma CrowdLink acquisition. Pro forma results of operations have not been presented because the effect of this acquisition was not material to the consolidated financial statements. |
Short-Term Investments
Short-Term Investments | 3 Months Ended |
Apr. 30, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Short-Term Investments | Note 3. Short-Term Investments At April 30, 2016, short-term investments consisted of the following (in thousands): Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Available-for-sale securities: Asset-backed securities $ 11,020 $ 30 $ (1 ) $ 11,049 Commercial paper 16,151 — — 16,151 Corporate notes and bonds 34,223 37 (22 ) 34,238 U.S. agency obligations 95,444 33 (6 ) 95,471 U.S. treasury securities 54,572 20 (8 ) 54,584 Total available-for-sale securities $ 211,410 $ 120 $ (37 ) $ 211,493 At January 31, 2016, short-term investments consisted of the following (in thousands): Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Available-for-sale securities: Asset-backed securities $ 5,456 $ — $ (2 ) $ 5,454 Commercial paper 5,970 — — 5,970 Corporate notes and bonds 38,341 26 (40 ) 38,327 U.S. agency obligations 124,626 14 (54 ) 124,586 U.S. treasury securities 39,720 4 (37 ) 39,687 Total available-for-sale securities $ 214,113 $ 44 $ (133 ) $ 214,024 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): April 30, January 31, 2016 2016 Due in one year or less $ 160,382 $ 151,214 Due in greater than one year 51,111 62,810 Total $ 211,493 $ 214,024 We have certain available-for-sale securities in a gross unrealized loss position, all of which have been in such position for less than 12 months. We review our debt securities classified as short-term investments on a regular basis to evaluate whether or not any security has experienced an other-than-temporary decline in fair value. We consider factors such as the length of time and extent to which the market value has been less than the cost, the financial position and near-term prospects of the issuer and our intent to sell, or whether it is more likely than not we will be required to sell the investment before recovery of the investment’s amortized-cost basis. If we determine that an other-than-temporary decline exists in one of these securities, the respective investment would be written down to fair value. For debt securities, the portion of the write-down related to credit loss would be recognized to other income, net in our condensed consolidated statements of comprehensive income. Any portion not related to credit loss would be included in accumulated other comprehensive income (loss). There were no impairments considered other-than-temporary as of April 30, 2016 and January 31, 2016. The following table shows the fair values and the gross unrealized losses of these available-for-sale securities aggregated by investment category as of April 30, 2016 (in thousands): Gross Fair Unrealized Value Losses Asset-backed securities $ 469 $ (1 ) Corporate notes and bonds 10,101 (22 ) U.S. agency obligations 24,158 (6 ) U.S. treasury securities 25,949 (8 ) The following table shows the fair values and the gross unrealized losses of these available-for-sale securities aggregated by investment category as of January 31, 2016 (in thousands): Gross Fair Unrealized Value Losses Asset-backed securities $ 2,249 $ (2 ) Corporate notes and bonds 14,296 (40 ) U.S. agency obligations 82,806 (54 ) U.S. treasury securities 33,486 (37 ) |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Apr. 30, 2016 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | Note 4. Property and Equipment, Net Property and equipment, net, consists of the following as of the dates shown (in thousands): April 30, January 31, 2016 2016 Land $ 3,040 $ 3,040 Building 20,984 20,984 Land improvements and building improvements 14,141 14,106 Equipment and computers 6,430 5,910 Furniture and fixtures 6,735 6,453 Leasehold improvements 1,768 1,323 Construction in progress 128 — 53,226 51,816 Less accumulated depreciation (5,567 ) (4,347 ) Total property and equipment, net $ 47,659 $ 47,469 Total depreciation expense for the three months ended April 30, 2016 and 2015 was $1.2 million and $0.4 million, respectively. Land is not depreciated. |
Capitalized Internal-Use Softwa
Capitalized Internal-Use Software | 3 Months Ended |
Apr. 30, 2016 | |
Research And Development [Abstract] | |
Capitalized Internal-Use Software | Note 5. Capitalized Internal-Use Software Capitalized internal-use software, net, consisted of the following as of the dates shown (in thousands): April 30, January 31, 2016 2016 Capitalized internal-use software development costs $ 3,967 $ 3,801 Less accumulated amortization (2,998 ) (2,822 ) Capitalized internal-use software development costs, net $ 969 $ 979 During the three months ended April 30, 2016, we capitalized $0.2 million of internal-use software development costs. During the three months ended April 30, 2015, we capitalized an immaterial amount of internal-use software development costs. Capitalized internal-use software amortization expense for the three months ended April 30, 2016 and 2015 was $0.2 million and $0.2 million, respectively. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Apr. 30, 2016 | |
Intangible Assets Net Excluding Goodwill [Abstract] | |
Intangible Assets | Note 6. Intangible Assets The following schedule presents the details of intangible assets as of April 30, 2016 (dollar amounts in thousands): April 30, 2016 Gross Remaining Carrying Accumulated Useful Life Amount Amortization Net (in years) Existing technology $ 3,880 $ (2,151 ) $ 1,729 2.3 Database 4,939 (2,398 ) 2,541 2.8 Customer contracts and relationships 33,643 (2,567 ) 31,076 9.2 Software 10,867 (1,717 ) 9,150 3.9 Brand 1,141 (191 ) 950 2.9 $ 54,470 $ (9,024 ) $ 45,446 The following schedule presents the details of intangible assets as of January 31, 2016 (dollar amounts in thousands): January 31, 2015 Gross Remaining Carrying Accumulated Useful Life Amount Amortization Net (in years) Existing technology $ 3,880 $ (1,957 ) $ 1,923 2.6 Database 4,939 (2,103 ) 2,836 3.0 Customer contracts and relationships 33,643 (1,693 ) 31,950 9.4 Software 10,867 (1,106 ) 9,761 4.2 Brand 1,141 (111 ) 1,030 3.2 $ 54,470 $ (6,970 ) $ 47,500 Amortization expense associated with intangible assets for the three months ended April 30, 2016 and 2015 was $2.1 million and $0.4 million, respectively. The estimated amortization expense for intangible assets, for the next five years and thereafter is as follows (in thousands): Estimated Amortization Period Expense Fiscal 2017 $ 6,172 Fiscal 2018 7,791 Fiscal 2019 6,963 Fiscal 2020 6,062 Fiscal 2021 3,628 Thereafter 14,830 Total $ 45,446 |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Apr. 30, 2016 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | Note 7. Accrued Expenses Accrued expenses consisted of the following as of the dates shown (in thousands): April 30, January 31, 2016 2016 Accrued commissions $ 1,531 $ 2,798 Accrued bonus 1,751 2,957 Deferred compensation associated with Zinc Ahead 2,784 1,120 Accrued other compensation and benefits 5,828 5,576 Total accrued compensation and benefits $ 11,894 $ 12,451 Accrued fees payable to salesforce.com 4,210 4,222 Accrued third-party professional services subcontractors' fees 774 1,152 Sales taxes payable 975 1,597 Other accrued expenses 2,086 4,088 Total accrued expenses and other current liabilities $ 8,045 $ 11,059 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 8. Fair Value Measurements The carrying amounts of accounts receivable and other current assets, accounts payable and accrued liabilities approximate fair value due to their short-term nature. Financial assets and financial liabilities recorded at fair value in the condensed 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 financial 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 in its entirety 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 measured at fair value on a recurring basis as of April 30, 2016 (in thousands): Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 20,212 $ — $ — $ 20,212 Commercial paper — 12,999 — 12,999 Corporate notes and bonds — 1,001 — 1,001 U.S. agency obligations — 10,100 — 10,100 Short-term investments Asset-backed securities — 11,049 — 11,049 Commercial paper — 16,151 — 16,151 Corporate notes and bonds — 34,238 — 34,238 U.S. agency obligations — 95,471 — 95,471 U.S. treasury securities — 54,584 — 54,584 Total $ 20,212 $ 235,593 $ — $ 255,805 The following table presents the fair value hierarchy for financial assets measured at fair value on a recurring basis as of January 31, 2016 (in thousands): Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 28,087 $ — $ — $ 28,087 Corporate notes and bonds — 11,396 — 11,396 U.S. agency obligations — 3,002 — 3,002 Short-term investments Asset-backed securities — 5,454 — 5,454 Commercial paper — 5,970 — 5,970 Corporate notes and bonds — 38,327 — 38,327 U.S. agency obligations — 124,586 — 124,586 U.S. treasury securities — 39,687 — 39,687 Total $ 28,087 $ 228,422 $ — $ 256,509 We determine the fair value of our security holdings based on pricing from our service provider 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). We perform procedures to ensure that appropriate fair values are recorded such as comparing prices obtained from other sources. |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9. Income Taxes For the three months ended April 30, 2016 and 2015, our effective tax rates were 39.1% and 40.1%, respectively. During the three months ended April 30, 2016 as compared to the prior year period, our effective tax rate decreased primarily due to the permanent reenactment of the U.S. Research and Development Tax credit which was signed into law in December 2015. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Apr. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stockholders' Equity | Note 10. Stockholders’ Equity Early Exercise of Employee Options We historically have allowed for the early exercise of options granted under the 2007 Stock Plan (2007 Plan) prior to vesting. Historically, all such early exercises have been through cash payment. The unvested shares are subject to our repurchase right at the original purchase price. The proceeds initially are recorded as an accrued liability from the early exercise of stock options, and reclassified to common stock as our repurchase right lapses. At April 30, 2016, the amount of unvested shares and the aggregate price for those shares that were subject to repurchase were immaterial. At January 31, 2016 there were 56,666 unvested shares which were subject to repurchase at an aggregate price of an immaterial amount. Stock Option Activity A summary of stock option activity for the three months ended April 30, 2016 is as follows: Weighted Weighted average average remaining Aggregate Number exercise contractual intrinsic of shares price term value Options outstanding at January 31, 2016 18,549,702 $ 5.01 6.8 $ 359,306,108 Options granted 1,075,000 25.41 Options exercised (676,316 ) 2.15 Options forfeited/cancelled (86,285 ) 4.86 Options outstanding at April 30, 2016 18,862,101 $ 6.28 6.8 $ 402,583,061 Options vested and exercisable at April 30, 2016 5,673,922 $ 4.18 6.1 $ 133,245,875 Options vested and exercisable at April 30, 2016 and expected to vest thereafter 18,091,270 $ 6.21 6.8 $ 387,417,783 During the three months ended April 30, 2016, we granted 1,075,000 stock options under the 2013 EIP. The weighted average grant-date fair value of options granted during the three months ended April 30, 2016 was $11.99 per share. As of April 30, 2016, there was $40.2 million in unrecognized compensation cost, net of estimated forfeitures, related to unvested stock options granted under the 2007 Plan, 2012 Equity Incentive Plan and 2013 Equity Incentive Plan (2013 EIP). This cost is expected to be recognized over a weighted average period of 3.8 years. As of April 30, 2016, we had authorized and unissued shares of common stock sufficient to satisfy exercises of stock options. The total intrinsic value of options exercised was approximately $15.3 million for the three months ended April 30, 2016. Restricted Stock Units A summary of restricted stock unit (RSU) activity for the three months ended April 30, 2016 is as follows: Weighted Unreleased average Restricted grant date Stock Units fair value Balance at January 31, 2016 2,219,425 $ 26.80 RSUs granted 1,462,105 25.44 RSUs vested (167,916 ) 26.88 RSUs forfeited/cancelled (111,329 ) 26.22 Balance at April 30, 2016 3,402,285 $ 26.23 During the three months ended April 30, 2016, we issued 1,462,105 RSUs under the 2013 EIP with a weighted-average grant date fair value of $25.44. As of April 30, 2016, there was a total of $84.5 million in unrecognized compensation cost, net of estimated forfeitures, related to unvested RSUs. This cost is expected to be recognized over a weighted-average period of approximately 3.3 years. Stock-Based Compensation Compensation expense related to share-based transactions, including employee, consultant, and non-employee director stock option awards, is measured and recognized in the condensed consolidated financial statements based on fair value. The fair value of each option award is estimated on the grant date using the Black-Scholes option-pricing model. The stock-based compensation expense, net of forfeitures, is recognized using a straight-line basis over the requisite service periods of the awards, which is generally four to nine years. For restricted stock awards, fair value is based on the closing price of our common stock on the grant date. Our option-pricing model requires the input of subjective assumptions, including the fair value of the underlying common stock, the expected term of the option, the expected volatility of the price of our common stock, risk-free interest rates, and the expected dividend yield of our common stock. The assumptions used in our option-pricing model represent management’s best estimates. These estimates involve inherent uncertainties and the application of management’s judgment. If factors change and different assumptions are used, our stock-based compensation expense could be materially different in the future. The following table presents the weighted-average assumptions used to estimate the grant date fair value of options granted during the periods presented: Three Months Ended April 30, 2016 2015 Volatility 45% – 46% 46% Expected term (in years) 6.31 – 7.56 6.11 Risk-free interest rate 1.48% – 1.67% 1.76% – 1.83% Dividend yield 0% 0% For the three months ended April 30, 2016 and 2015, we capitalized an immaterial amount of stock-based compensation as part of our internal-use software capitalization. |
Net Income per Share Attributab
Net Income per Share Attributable to Common Stockholders | 3 Months Ended |
Apr. 30, 2016 | |
Earnings Per Share [Abstract] | |
Net Income per Share Attributable to Common Stockholders | Note 11. Net Income per Share Attributable to Common Stockholders We compute net income per share of Class A and Class B common stock using the two-class method required for participating securities. Prior to the date of our IPO in October 2013, we considered all series of our convertible preferred stock to be participating securities due to their non-cumulative dividend rights. Immediately prior to the completion of our IPO, all outstanding shares of convertible preferred stock converted to Class B common stock. Additionally, we consider unvested shares issued upon the early exercise of options to be participating securities as the holders of these shares have a non-forfeitable right to dividends in the event of our declaration of a dividend for common shares. Under the two-class method, net income attributable to common stockholders is determined by allocating undistributed earnings, calculated as net income, less (i) current period convertible preferred stock non-cumulative dividends and (ii) earnings attributable to participating securities. The net income per share attributable to common stockholders is allocated based on the contractual participation rights of the Class A common stock and Class B common stock as if the income for the year has been distributed. As the liquidation and dividend rights are identical, the net loss attributable to common stockholders is allocated on a proportionate basis. Basic net income per share of common stock is computed by dividing the net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. All participating securities are excluded from the basic weighted-average shares of common stock outstanding. Unvested shares of common stock resulting from the early exercises of stock options are excluded from the calculation of the weighted-average shares of common stock until they vest as they are subject to repurchase until they are vested. Diluted net income per share attributable to common stockholders is computed by dividing net income attributable to common stockholders 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. Undistributed net income for a given period is apportioned to participating securities based on the weighted-average shares of each class of common stock outstanding during the applicable period as a percentage of the total weighted-average shares outstanding during the same period. For purposes of the diluted net income per share attributable to common stockholders calculation, unvested shares of common stock resulting from the early exercises of stock options and unvested options to purchase common stock are considered to be potentially dilutive shares of common stock. In addition, the computation of the 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 EPS computations for our common stock are calculated as follows (in thousands, except per share data): Three Months Ended April 30, 2016 2015 Class A Class B Class A Class B Basic Numerator Net income $ 8,404 $ 4,105 $ 6,837 $ 6,145 Undistributed earnings allocated to participating securities (3 ) (1 ) (9 ) (9 ) Net income attributable to common stockholders, basic $ 8,401 $ 4,104 $ 6,828 $ 6,136 Denominator Weighted average shares used in computing net income per share attributable to common stockholders, basic 90,020 43,976 69,078 62,085 Net income per share attributable to common stockholders, basic $ 0.09 $ 0.09 $ 0.10 $ 0.10 Diluted Numerator Net income attributable to common stockholders, basic $ 8,401 $ 4,104 $ 6,828 $ 6,136 Reallocation as a result of conversion of Class B to Class A common stock: Net income attributable to common stockholders, basic 4,104 — 6,136 — Reallocation of net income to Class B common stock — 675 — 640 Net income attributable to common stockholders, diluted $ 12,505 $ 4,779 $ 12,964 $ 6,776 Denominator Number of shares used for basic EPS computation 90,020 43,976 69,078 62,085 Conversion of Class B to Class A common stock 43,976 — 62,085 — Effect of potentially dilutive common shares 11,712 11,712 13,571 13,571 Weighted average shares used in computing net income per share attributable to common stockholders, diluted 145,708 55,688 144,734 75,656 Net income per share attributable to common stockholders, diluted $ 0.09 $ 0.09 $ 0.09 $ 0.09 Potential common share equivalents excluded where the inclusion would be anti-dilutive are as follows: Three Months Ended April 30, 2016 2015 Options and awards to purchase shares not included in the computation of diluted net income per share because their inclusion would be anti-dilutive 1,489,703 643,638 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 30, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12. Commitments and Contingencies Litigation 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 assessment or remediation can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. From time to time, we may be involved in 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 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. Value-Added Reseller Agreement We have a value-added reseller agreement with salesforce.com, inc. for our use of the Salesforce Platform in combination with our developed technology to deliver certain of our multichannel customer relationship management applications, including hosting infrastructure and data center operations provided by salesforce.com. The agreement, as amended, requires that we meet minimum order commitments of $500 million over the term of the agreement, which ends on September 1, 2025, including “true-up” payments if the orders we place with salesforce.com have not equaled or exceeded the following aggregate amounts within the timeframes indicated: (i) $250 million for the period from March 1, 2014 to September 1, 2020 and (ii) the full amount of $500 million by September 1, 2025. As of April 30, 2016, we remained obligated to pay fees of at least $396.7 million prior to September 1, 2025 in connection with this agreement. OEM Agreement Zinc Ahead, a recently acquired business, has an authorized OEM agreement with VYRE Limited for use and resale of certain proprietary products used for digital asset management in combination with the Zinc Ahead product offerings. As of April 30, 2016, we remain obligated to pay fees of $0.2 million annually through June 2019, a total of $0.8 million through the remainder of this agreement. |
Information about Geographic Ar
Information about Geographic Areas | 3 Months Ended |
Apr. 30, 2016 | |
Segment Reporting [Abstract] | |
Information about Geographic Areas | Note 13. Information about Geographic Areas We track and allocate revenues by the principal geographic region of our customers’ end users rather than by individual country, which makes it impractical to disclose revenues for the United States or other specific foreign countries. Revenues by geographic area, as measured by the estimated location of the end users for subscription services revenues and the estimated location of the end users for which the services were performed for professional services revenues, were as follows for the periods shown below (in thousands): Three Months Ended April 30, 2016 2015 Revenues by geography North America $ 65,439 $ 50,053 Europe and other 34,814 24,131 Asia Pacific 19,511 15,739 Total revenues $ 119,764 $ 89,923 Long-lived assets by geographic area are as follows as of the periods shown below (in thousands): April 30, January 31, 2016 2016 Long-lived assets by geography North America $ 44,949 $ 45,163 Europe and other 1,805 1,827 Asia Pacific 905 479 Total long-lived assets $ 47,659 $ 47,469 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Apr. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 14. Subsequent Events In May 2016, salesforce.com suffered a significant service outage with respect to a group of servers that hosts the Veeva CRM solution for 38 of our Veeva CRM customers. The outage resulted in unplanned system unavailability of up to 21 hours for the associated Veeva customers, for which such customers may claim service level credits under their contracts with us. We do not currently expect the impact of any claimed service level credits to be material to our financial results for our fiscal quarter ending July 31, 2016. |
Summary of Business and Signi21
Summary of Business and Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 30, 2016 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business Veeva is a leading provider of industry cloud software and data solutions for life sciences companies. We were founded in 2007 on the premise that industry-specific cloud solutions could best address the operating challenges and regulatory requirements of the global life sciences industry. Our solutions are designed to meet the unique needs of life sciences companies regardless of size and to address their most strategic business functions. From research and development to commercialization, our solutions are designed to help our customers bring products to market faster and more efficiently, market and sell more effectively and maintain compliance with government regulations. We provide multichannel customer relationship management, regulated content and information management, master data management and data and data services that meet the specialized functional and compliance needs of life sciences companies. Recently, we announced that we will begin selling certain of our regulated content and information management applications to companies in regulated industries adjacent to life sciences. Our fiscal year end is January 31. |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation These unaudited condensed 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 interim financial reporting and include the accounts of our wholly owned subsidiaries after elimination of intercompany accounts and transactions. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in Veeva’s Annual Report on Form 10-K for the fiscal year ended January 31, 2016, filed on March 31, 2016. There have been no changes to our significant accounting policies described in the annual report that have had a material impact on our condensed consolidated financial statements and related notes. The consolidated balance sheet as of January 31, 2016 included herein was derived from the audited financial statements as of that date. These unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, our comprehensive income and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year ending January 31, 2017 or any other period. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires us to make estimates, judgments and assumptions that affect the condensed consolidated financial statements and the notes thereto. These estimates are based on information available as of the date of the condensed consolidated financial statements. On a regular basis, management evaluates these estimates and assumptions. Significant items subject to such estimates and assumptions include, but are not limited to: · the best estimate of selling price of the deliverables included in multiple-deliverable revenue arrangements; · the collectibility of our accounts receivable; · the fair value of assets acquired and liabilities assumed for business combinations; · the valuation of short-term investments and the determination of other-than-temporary impairments; · the valuation of building and land; · the realizability of deferred income tax assets and liabilities; · the fair value of our stock-based awards and related forfeiture rates; and · the capitalization and estimated useful life of internal-use software development costs. As future events cannot be determined with precision, actual results could differ significantly from those estimates. |
Revenue Recognition | Revenue Recognition We derive our revenues primarily from subscription services fees and professional services fees. Subscription services revenues consist of fees from customers accessing our cloud-based software solutions and subscription or license fees for our data solutions. In addition, Zinc Ahead, a company we recently acquired, had a limited number of perpetual license agreements with accompanying maintenance and hosting fees. We have included such on-going maintenance and hosting fees in our subscription services revenues. Professional services and other revenues consist primarily of fees from implementation services, configuration, data services, training and managed services related to our solutions. We commence revenue recognition when all of the following conditions are satisfied: · there is persuasive evidence of an arrangement; · the service has been or is being provided to the customer; · the collection of the fees is reasonably assured; and · the amount of fees to be paid by the customer is fixed or determinable. Our subscription services arrangements are generally non-cancellable and do not provide for refunds to customers in the event of cancellations. We record revenues net of any sales taxes. Subscription Services Revenues Subscription services revenues are recognized ratably over the order term beginning when the solution has been provisioned to the customer. Our subscription arrangements are considered service contracts, and the customer does not have the right to take possession of the software. On-going maintenance and hosting fees for Zinc Ahead solutions are also recognized ratably over the accompanying maintenance and hosting term. Professional Services and Other Revenues The majority of our professional services arrangements are recognized on a time and materials basis. Professional services revenues recognized on a time and materials basis are measured monthly based on time incurred and contractually agreed upon rates. Certain professional services revenues are based on fixed fee arrangements and revenues are recognized based on the proportional performance method. In some cases, the terms of our time and materials and fixed fee arrangements may require that we defer the recognition of revenue until contractual conditions are met. Data services and training revenues are generally recognized as the services are performed. Multiple Element Arrangements We apply the provisions of Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2009-13, Multiple—Deliverable Revenue Arrangements, to allocate revenues based on relative best estimated selling price to each unit of accounting in multiple element arrangements, which generally include subscriptions and professional services. Best estimated selling price of each unit of accounting included in a multiple element arrangement is based upon management’s estimate of the selling price of deliverables when vendor specific objective evidence or third-party evidence of selling price is not available. We enter into arrangements with multiple deliverables that generally include our subscription offerings and professional services. For these arrangements we must: (i) determine whether each deliverable has stand-alone value; (ii) determine the estimated selling price of each element using the selling price hierarchy of vendor specific objective evidence (VSOE) of fair value, third-party evidence (TPE) or best estimated selling price (BESP), as applicable; and (iii) allocate the total price among the various deliverables based on the relative selling price method. In determining whether professional services and other revenues have stand-alone value, we consider the following factors for each consulting agreement: availability of the consulting services from other vendors, the nature of the consulting services and whether the professional services are required in order for the customer to use the subscription services. If stand-alone value cannot be established for a delivered item in a multiple-element arrangement, the delivered item is accounted for as a combined unit of accounting with the undelivered item(s). We have established stand-alone value with respect to all of our offerings except professional services for the recently acquired Zinc Ahead business. As a result, we account for multiple element arrangements that include Zinc Ahead professional services as a combined unit of accounting and recognize the revenues from such professional services ratably over the term of the associated subscription services. We have determined that we are not able to establish VSOE of fair value or TPE of selling price for any of our deliverables, and accordingly we use BESP for each deliverable in the arrangement. The objective of BESP is to estimate the price at which we would transact a sale of the service deliverables if the services were sold on a stand-alone basis. Revenue allocated to each deliverable is recognized when the basic revenue recognition criteria are met for each deliverable. We determine BESP for our subscription services included in a multiple element arrangement by considering multiple factors including, but not limited to, stated subscription renewal rates offered to the customer to renew the service and other major groupings such as customer type and geography. BESP for professional services considers the discount of actual professional services sold compared to list price, the experience level of the individual performing the service and the estimated location of the end users for which the services were performed. We allocate consideration proportionately based on established BESP and then recognize the allocated revenue over the respective delivery periods for each element. |
Deferred Revenue | Deferred Revenue Deferred revenue includes amounts billed to customers for which the revenue recognition criteria have not been met. Deferred revenue primarily consists of billings or payments received in advance of revenue recognition from our subscription services, and to a lesser extent, professional services and other revenues described above, and is recognized as the revenue recognition criteria are met. We generally invoice our customers in annual, quarterly or monthly installments for the subscription services. Accordingly, the deferred revenue balance does not generally represent the total contract value of a subscription arrangement. Deferred revenue that will be recognized during the succeeding 12-month period is recorded as current deferred revenue and the remaining portion is recorded as noncurrent, which is in the other long-term liabilities on the consolidated balance sheet. |
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 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 in safekeeping by large, credit-worthy 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 to 60 days of billing. We periodically evaluate the collectibility of our accounts receivable and provide an allowance for doubtful accounts as necessary, based on historical experience. Historically, such losses have not been material. The following customers individually exceeded 10% of total accounts receivable as of the dates shown: April 30, January 31, 2016 2016 Customer 1 * 16% Customer 2 * 15 Customer 3 14% * * Does not exceed 10%. No single customer represented over 10% of total revenues in the condensed consolidated financial statements for the three months ended April 30, 2016 and 2015. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Stock-Based Compensation In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) 2016-09, “ Compensation-Stock Compensation: Improvements to Employee Share-Based Payment Leases In February 2016, the FASB issued ASU 2016-02, “ Leases”. Financial Instruments In January 2016, the FASB issued ASU 2016-1, “Financial Instruments.” Business Combinations In September 2015, the FASB issued ASU 2015-16, “Simplifying the Accounting for Measurement-Period Adjustments.” Cloud Computing Arrangements In April 2015, the FASB issued ASU 2015-05, “Customer's Accounting for Fees Paid in a Cloud Computing Arrangement.” Revenue Recognition In May 2014, the FASB issued ASU 2014-09, “ Revenue from Contracts with Customers Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients |
Net Income per Share Attributable to Common Stockholders | We compute net income per share of Class A and Class B common stock using the two-class method required for participating securities. Prior to the date of our IPO in October 2013, we considered all series of our convertible preferred stock to be participating securities due to their non-cumulative dividend rights. Immediately prior to the completion of our IPO, all outstanding shares of convertible preferred stock converted to Class B common stock. Additionally, we consider unvested shares issued upon the early exercise of options to be participating securities as the holders of these shares have a non-forfeitable right to dividends in the event of our declaration of a dividend for common shares. Under the two-class method, net income attributable to common stockholders is determined by allocating undistributed earnings, calculated as net income, less (i) current period convertible preferred stock non-cumulative dividends and (ii) earnings attributable to participating securities. The net income per share attributable to common stockholders is allocated based on the contractual participation rights of the Class A common stock and Class B common stock as if the income for the year has been distributed. As the liquidation and dividend rights are identical, the net loss attributable to common stockholders is allocated on a proportionate basis. Basic net income per share of common stock is computed by dividing the net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. All participating securities are excluded from the basic weighted-average shares of common stock outstanding. Unvested shares of common stock resulting from the early exercises of stock options are excluded from the calculation of the weighted-average shares of common stock until they vest as they are subject to repurchase until they are vested. Diluted net income per share attributable to common stockholders is computed by dividing net income attributable to common stockholders 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. Undistributed net income for a given period is apportioned to participating securities based on the weighted-average shares of each class of common stock outstanding during the applicable period as a percentage of the total weighted-average shares outstanding during the same period. For purposes of the diluted net income per share attributable to common stockholders calculation, unvested shares of common stock resulting from the early exercises of stock options and unvested options to purchase common stock are considered to be potentially dilutive shares of common stock. In addition, the computation of the 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 Signi22
Summary of Business and Significant Accounting Policies (Tables) | 3 Months Ended |
Apr. 30, 2016 | |
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: April 30, January 31, 2016 2016 Customer 1 * 16% Customer 2 * 15 Customer 3 14% * * Does not exceed 10%. |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Apr. 30, 2016 | |
Zinc Ahead Inc [Member] | |
Business Acquisition [Line Items] | |
Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed at Acquisition Date | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands): Useful Lives of Intangible Assets Fair Value Purchase price Cash $ 119,935 Allocation of purchase price Cash $ 3,107 Accounts receivable 4,600 Other current and non-current assets 5,140 Deferred tax liabilities, net (12,316 ) Other current and non-current liabilities (8,730 ) Net liabilities $ (8,199 ) Customer contracts and relationships 10 years $ 31,823 Software 4.5 years 10,063 Brand 3.5 years 1,141 Purchased intangible assets $ 43,027 Goodwill $ 85,107 Total purchase price $ 119,935 |
Schedule of Unaudited Pro Forma Information | The unaudited pro forma results do not reflect any cost saving synergies from operating efficiencies or the effect of the incremental costs incurred in integrating the two companies. Accordingly, these unaudited pro forma results are presented for informational purpose only and are not necessarily indicative of what the actual results of operations of the combined company would have been if the acquisition had occurred at the beginning of the period presented, nor are they indicative of future results of operations (in thousands): Three Months Ended April 30, 2015 (Unaudited) Pro forma revenues $ 96,531 Pro forma net income $ 9,916 Pro forma net income per share attributable to Class A and Class B common stockholders: Basic $ 0.08 Diluted $ 0.07 |
Qforma CrowdLink [Member] | |
Business Acquisition [Line Items] | |
Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed at Acquisition Date | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands): Useful Lives of Intangible Assets Fair Value Purchase price Cash $ 9,750 Allocation of purchase price Cash $ 56 Accounts receivable 1,085 Deferred tax assets, net 143 Other current and non-current assets 50 Other current and non-current liabilities (731 ) Net assets $ 603 Database 5 years $ 1,800 Customer relationships 4 years 800 Software 5 years 500 Existing technology 5 years 200 Purchased intangible assets $ 3,300 Goodwill $ 5,847 Total purchase price $ 9,750 |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 3 Months Ended |
Apr. 30, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Short-Term Investments | At April 30, 2016, short-term investments consisted of the following (in thousands): Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Available-for-sale securities: Asset-backed securities $ 11,020 $ 30 $ (1 ) $ 11,049 Commercial paper 16,151 — — 16,151 Corporate notes and bonds 34,223 37 (22 ) 34,238 U.S. agency obligations 95,444 33 (6 ) 95,471 U.S. treasury securities 54,572 20 (8 ) 54,584 Total available-for-sale securities $ 211,410 $ 120 $ (37 ) $ 211,493 At January 31, 2016, short-term investments consisted of the following (in thousands): Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Available-for-sale securities: Asset-backed securities $ 5,456 $ — $ (2 ) $ 5,454 Commercial paper 5,970 — — 5,970 Corporate notes and bonds 38,341 26 (40 ) 38,327 U.S. agency obligations 124,626 14 (54 ) 124,586 U.S. treasury securities 39,720 4 (37 ) 39,687 Total available-for-sale securities $ 214,113 $ 44 $ (133 ) $ 214,024 |
Summary 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): April 30, January 31, 2016 2016 Due in one year or less $ 160,382 $ 151,214 Due in greater than one year 51,111 62,810 Total $ 211,493 $ 214,024 |
Schedule of Fair Values and Gross Unrealized Losses of Available-for-Sale Securities Aggregated by Investment Category | The following table shows the fair values and the gross unrealized losses of these available-for-sale securities aggregated by investment category as of April 30, 2016 (in thousands): Gross Fair Unrealized Value Losses Asset-backed securities $ 469 $ (1 ) Corporate notes and bonds 10,101 (22 ) U.S. agency obligations 24,158 (6 ) U.S. treasury securities 25,949 (8 ) The following table shows the fair values and the gross unrealized losses of these available-for-sale securities aggregated by investment category as of January 31, 2016 (in thousands): Gross Fair Unrealized Value Losses Asset-backed securities $ 2,249 $ (2 ) Corporate notes and bonds 14,296 (40 ) U.S. agency obligations 82,806 (54 ) U.S. treasury securities 33,486 (37 ) |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Apr. 30, 2016 | |
Property Plant And Equipment [Abstract] | |
Components of Property and Equipment, Net | Property and equipment, net, consists of the following as of the dates shown (in thousands): April 30, January 31, 2016 2016 Land $ 3,040 $ 3,040 Building 20,984 20,984 Land improvements and building improvements 14,141 14,106 Equipment and computers 6,430 5,910 Furniture and fixtures 6,735 6,453 Leasehold improvements 1,768 1,323 Construction in progress 128 — 53,226 51,816 Less accumulated depreciation (5,567 ) (4,347 ) Total property and equipment, net $ 47,659 $ 47,469 |
Capitalized Internal-Use Soft26
Capitalized Internal-Use Software (Tables) | 3 Months Ended |
Apr. 30, 2016 | |
Research And Development [Abstract] | |
Schedule of Capitalized Internal-Use Software, Net | Capitalized internal-use software, net, consisted of the following as of the dates shown (in thousands): April 30, January 31, 2016 2016 Capitalized internal-use software development costs $ 3,967 $ 3,801 Less accumulated amortization (2,998 ) (2,822 ) Capitalized internal-use software development costs, net $ 969 $ 979 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Apr. 30, 2016 | |
Intangible Assets Net Excluding Goodwill [Abstract] | |
Details of Intangible Assets | The following schedule presents the details of intangible assets as of April 30, 2016 (dollar amounts in thousands): April 30, 2016 Gross Remaining Carrying Accumulated Useful Life Amount Amortization Net (in years) Existing technology $ 3,880 $ (2,151 ) $ 1,729 2.3 Database 4,939 (2,398 ) 2,541 2.8 Customer contracts and relationships 33,643 (2,567 ) 31,076 9.2 Software 10,867 (1,717 ) 9,150 3.9 Brand 1,141 (191 ) 950 2.9 $ 54,470 $ (9,024 ) $ 45,446 The following schedule presents the details of intangible assets as of January 31, 2016 (dollar amounts in thousands): January 31, 2015 Gross Remaining Carrying Accumulated Useful Life Amount Amortization Net (in years) Existing technology $ 3,880 $ (1,957 ) $ 1,923 2.6 Database 4,939 (2,103 ) 2,836 3.0 Customer contracts and relationships 33,643 (1,693 ) 31,950 9.4 Software 10,867 (1,106 ) 9,761 4.2 Brand 1,141 (111 ) 1,030 3.2 $ 54,470 $ (6,970 ) $ 47,500 |
Estimated Amortization Expense | The estimated amortization expense for intangible assets, for the next five years and thereafter is as follows (in thousands): Estimated Amortization Period Expense Fiscal 2017 $ 6,172 Fiscal 2018 7,791 Fiscal 2019 6,963 Fiscal 2020 6,062 Fiscal 2021 3,628 Thereafter 14,830 Total $ 45,446 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Apr. 30, 2016 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following as of the dates shown (in thousands): April 30, January 31, 2016 2016 Accrued commissions $ 1,531 $ 2,798 Accrued bonus 1,751 2,957 Deferred compensation associated with Zinc Ahead 2,784 1,120 Accrued other compensation and benefits 5,828 5,576 Total accrued compensation and benefits $ 11,894 $ 12,451 Accrued fees payable to salesforce.com 4,210 4,222 Accrued third-party professional services subcontractors' fees 774 1,152 Sales taxes payable 975 1,597 Other accrued expenses 2,086 4,088 Total accrued expenses and other current liabilities $ 8,045 $ 11,059 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Hierarchy for Financial Assets Measured at Fair Value on Recurring Basis | The following table presents the fair value hierarchy for financial assets measured at fair value on a recurring basis as of April 30, 2016 (in thousands): Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 20,212 $ — $ — $ 20,212 Commercial paper — 12,999 — 12,999 Corporate notes and bonds — 1,001 — 1,001 U.S. agency obligations — 10,100 — 10,100 Short-term investments Asset-backed securities — 11,049 — 11,049 Commercial paper — 16,151 — 16,151 Corporate notes and bonds — 34,238 — 34,238 U.S. agency obligations — 95,471 — 95,471 U.S. treasury securities — 54,584 — 54,584 Total $ 20,212 $ 235,593 $ — $ 255,805 The following table presents the fair value hierarchy for financial assets measured at fair value on a recurring basis as of January 31, 2016 (in thousands): Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 28,087 $ — $ — $ 28,087 Corporate notes and bonds — 11,396 — 11,396 U.S. agency obligations — 3,002 — 3,002 Short-term investments Asset-backed securities — 5,454 — 5,454 Commercial paper — 5,970 — 5,970 Corporate notes and bonds — 38,327 — 38,327 U.S. agency obligations — 124,586 — 124,586 U.S. treasury securities — 39,687 — 39,687 Total $ 28,087 $ 228,422 $ — $ 256,509 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Apr. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity | A summary of stock option activity for the three months ended April 30, 2016 is as follows: Weighted Weighted average average remaining Aggregate Number exercise contractual intrinsic of shares price term value Options outstanding at January 31, 2016 18,549,702 $ 5.01 6.8 $ 359,306,108 Options granted 1,075,000 25.41 Options exercised (676,316 ) 2.15 Options forfeited/cancelled (86,285 ) 4.86 Options outstanding at April 30, 2016 18,862,101 $ 6.28 6.8 $ 402,583,061 Options vested and exercisable at April 30, 2016 5,673,922 $ 4.18 6.1 $ 133,245,875 Options vested and exercisable at April 30, 2016 and expected to vest thereafter 18,091,270 $ 6.21 6.8 $ 387,417,783 |
Summary of Restricted Stock Unit (RSU) Activity | A summary of restricted stock unit (RSU) activity for the three months ended April 30, 2016 is as follows: Weighted Unreleased average Restricted grant date Stock Units fair value Balance at January 31, 2016 2,219,425 $ 26.80 RSUs granted 1,462,105 25.44 RSUs vested (167,916 ) 26.88 RSUs forfeited/cancelled (111,329 ) 26.22 Balance at April 30, 2016 3,402,285 $ 26.23 |
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: Three Months Ended April 30, 2016 2015 Volatility 45% – 46% 46% Expected term (in years) 6.31 – 7.56 6.11 Risk-free interest rate 1.48% – 1.67% 1.76% – 1.83% Dividend yield 0% 0% |
Net Income per Share Attribut31
Net Income per Share Attributable to Common Stockholders (Tables) | 3 Months Ended |
Apr. 30, 2016 | |
Earnings Per Share [Abstract] | |
Numerators and Denominators of the Basic and Diluted EPS Computations for Common Stock | The numerators and denominators of the basic and diluted EPS computations for our common stock are calculated as follows (in thousands, except per share data): Three Months Ended April 30, 2016 2015 Class A Class B Class A Class B Basic Numerator Net income $ 8,404 $ 4,105 $ 6,837 $ 6,145 Undistributed earnings allocated to participating securities (3 ) (1 ) (9 ) (9 ) Net income attributable to common stockholders, basic $ 8,401 $ 4,104 $ 6,828 $ 6,136 Denominator Weighted average shares used in computing net income per share attributable to common stockholders, basic 90,020 43,976 69,078 62,085 Net income per share attributable to common stockholders, basic $ 0.09 $ 0.09 $ 0.10 $ 0.10 Diluted Numerator Net income attributable to common stockholders, basic $ 8,401 $ 4,104 $ 6,828 $ 6,136 Reallocation as a result of conversion of Class B to Class A common stock: Net income attributable to common stockholders, basic 4,104 — 6,136 — Reallocation of net income to Class B common stock — 675 — 640 Net income attributable to common stockholders, diluted $ 12,505 $ 4,779 $ 12,964 $ 6,776 Denominator Number of shares used for basic EPS computation 90,020 43,976 69,078 62,085 Conversion of Class B to Class A common stock 43,976 — 62,085 — Effect of potentially dilutive common shares 11,712 11,712 13,571 13,571 Weighted average shares used in computing net income per share attributable to common stockholders, diluted 145,708 55,688 144,734 75,656 Net income per share attributable to common stockholders, diluted $ 0.09 $ 0.09 $ 0.09 $ 0.09 |
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: Three Months Ended April 30, 2016 2015 Options and awards to purchase shares not included in the computation of diluted net income per share because their inclusion would be anti-dilutive 1,489,703 643,638 |
Information about Geographic 32
Information about Geographic Areas (Tables) | 3 Months Ended |
Apr. 30, 2016 | |
Segment Reporting [Abstract] | |
Revenues by Geographic Area | Revenues by geographic area, as measured by the estimated location of the end users for subscription services revenues and the estimated location of the end users for which the services were performed for professional services revenues, were as follows for the periods shown below (in thousands): Three Months Ended April 30, 2016 2015 Revenues by geography North America $ 65,439 $ 50,053 Europe and other 34,814 24,131 Asia Pacific 19,511 15,739 Total revenues $ 119,764 $ 89,923 |
Long-Lived Assets by Geographic Area | Long-lived assets by geographic area are as follows as of the periods shown below (in thousands): April 30, January 31, 2016 2016 Long-lived assets by geography North America $ 44,949 $ 45,163 Europe and other 1,805 1,827 Asia Pacific 905 479 Total long-lived assets $ 47,659 $ 47,469 |
Summary of Business and Signi33
Summary of Business and Significant Accounting Policies - Additional Information (Detail) - Customer | 3 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Customer concentration risk [Member] | Revenues [Member] | ||
Summary Of Business And Accounting Policies [Line Items] | ||
Number of customers | 0 | 0 |
Minimum [Member] | ||
Summary Of Business And Accounting Policies [Line Items] | ||
Customer payment period | 30 days | |
Maximum [Member] | ||
Summary Of Business And Accounting Policies [Line Items] | ||
Customer payment period | 60 days |
Summary of Business and Signi34
Summary of Business and Significant Accounting Policies - Schedule of Certain Risks and Concentrations of Credit Risk (Detail) - Customer concentration risk [Member] - Accounts receivable [Member] | 3 Months Ended | 12 Months Ended |
Apr. 30, 2016 | Jan. 31, 2016 | |
Customer 1 [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 16.00% | |
Customer 2 [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 15.00% | |
Customer 3 [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 14.00% |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) | Sep. 29, 2015 | Mar. 31, 2015 | Apr. 30, 2016 |
Zinc Ahead Inc [Member] | |||
Business Acquisition [Line Items] | |||
Business acquisition date | Sep. 29, 2015 | ||
Closing cash consideration for purchase | $ 119,935,000 | ||
Business acquisition deferred consideration | $ 9,600,000 | ||
Business acquisition deferred consideration payment period | 3 years | ||
Deferred consideration annual payment rate | 33.33% | ||
Business acquisition-related transaction costs | $ 2,200,000 | ||
Qforma CrowdLink [Member] | |||
Business Acquisition [Line Items] | |||
Business acquisition date | Mar. 31, 2015 | ||
Closing cash consideration for purchase | $ 9,750,000 | ||
Business acquisition-related transaction costs | $ 400,000 | ||
Contingent cash payments | 0 | ||
In-process research and development | $ 0 | ||
Maximum [Member] | |||
Business Acquisition [Line Items] | |||
Measurement Period For Goodwill Adjustment | 1 year |
Acquisitions - Summary of Estim
Acquisitions - Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed at Acquisition Date (Detail) - USD ($) $ in Thousands | Sep. 29, 2015 | Mar. 31, 2015 | Apr. 30, 2016 | Jan. 31, 2016 |
Allocation of purchase price | ||||
Goodwill | $ 95,804 | $ 95,804 | ||
Zinc Ahead Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Purchase price Cash | $ 119,935 | |||
Allocation of purchase price | ||||
Cash | 3,107 | |||
Accounts receivable | 4,600 | |||
Other current and non-current assets | 5,140 | |||
Deferred tax liabilities, net | (12,316) | |||
Other current and non-current liabilities | (8,730) | |||
Net assets (liabilities) | (8,199) | |||
Purchased intangible assets | 43,027 | |||
Goodwill | 85,107 | |||
Total purchase price | 119,935 | |||
Zinc Ahead Inc [Member] | Customer contracts and relationships [Member] | ||||
Allocation of purchase price | ||||
Purchased intangible assets | $ 31,823 | |||
Useful Lives of Intangible Assets | 10 years | |||
Zinc Ahead Inc [Member] | Software [Member] | ||||
Allocation of purchase price | ||||
Purchased intangible assets | $ 10,063 | |||
Useful Lives of Intangible Assets | 4 years 6 months | |||
Zinc Ahead Inc [Member] | Brand [Member] | ||||
Allocation of purchase price | ||||
Purchased intangible assets | $ 1,141 | |||
Useful Lives of Intangible Assets | 3 years 6 months | |||
Qforma CrowdLink [Member] | ||||
Business Acquisition [Line Items] | ||||
Purchase price Cash | $ 9,750 | |||
Allocation of purchase price | ||||
Cash | 56 | |||
Accounts receivable | 1,085 | |||
Deferred tax assets, net | 143 | |||
Other current and non-current assets | 50 | |||
Other current and non-current liabilities | (731) | |||
Net assets (liabilities) | 603 | |||
Purchased intangible assets | 3,300 | |||
Goodwill | 5,847 | |||
Total purchase price | 9,750 | |||
Qforma CrowdLink [Member] | Software [Member] | ||||
Allocation of purchase price | ||||
Purchased intangible assets | $ 500 | |||
Useful Lives of Intangible Assets | 5 years | |||
Qforma CrowdLink [Member] | Database [Member] | ||||
Allocation of purchase price | ||||
Purchased intangible assets | $ 1,800 | |||
Useful Lives of Intangible Assets | 5 years | |||
Qforma CrowdLink [Member] | Customer relationships [Member] | ||||
Allocation of purchase price | ||||
Purchased intangible assets | $ 800 | |||
Useful Lives of Intangible Assets | 4 years | |||
Qforma CrowdLink [Member] | Existing technology [Member] | ||||
Allocation of purchase price | ||||
Purchased intangible assets | $ 200 | |||
Useful Lives of Intangible Assets | 5 years |
Acquisitions - Unaudited Pro Fo
Acquisitions - Unaudited Pro Forma Information (Detail) - Zinc Ahead Inc [Member] $ / shares in Units, $ in Thousands | 3 Months Ended |
Apr. 30, 2015USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Pro forma revenues | $ | $ 96,531 |
Pro forma net income | $ | $ 9,916 |
Pro forma net income per share attributable to Class A and Class B common stockholders: | |
Basic | $ / shares | $ 0.08 |
Diluted | $ / shares | $ 0.07 |
Short-Term Investments - Schedu
Short-Term Investments - Schedule of Short-Term Investments (Detail) - USD ($) $ in Thousands | Apr. 30, 2016 | Jan. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Amortized Cost | $ 211,410 | $ 214,113 |
Available-for-sale securities, Gross Unrealized Gains | 120 | 44 |
Available-for-sale securities, Gross Unrealized Losses | (37) | (133) |
Available-for-sale securities, Estimated Fair Value | 211,493 | 214,024 |
Asset-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Amortized Cost | 11,020 | 5,456 |
Available-for-sale securities, Gross Unrealized Gains | 30 | |
Available-for-sale securities, Gross Unrealized Losses | (1) | (2) |
Available-for-sale securities, Estimated Fair Value | 11,049 | 5,454 |
Commercial paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Amortized Cost | 16,151 | 5,970 |
Available-for-sale securities, Estimated Fair Value | 16,151 | 5,970 |
Corporate notes and bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Amortized Cost | 34,223 | 38,341 |
Available-for-sale securities, Gross Unrealized Gains | 37 | 26 |
Available-for-sale securities, Gross Unrealized Losses | (22) | (40) |
Available-for-sale securities, Estimated Fair Value | 34,238 | 38,327 |
U.S. agency obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Amortized Cost | 95,444 | 124,626 |
Available-for-sale securities, Gross Unrealized Gains | 33 | 14 |
Available-for-sale securities, Gross Unrealized Losses | (6) | (54) |
Available-for-sale securities, Estimated Fair Value | 95,471 | 124,586 |
U.S. treasury securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Amortized Cost | 54,572 | 39,720 |
Available-for-sale securities, Gross Unrealized Gains | 20 | 4 |
Available-for-sale securities, Gross Unrealized Losses | (8) | (37) |
Available-for-sale securities, Estimated Fair Value | $ 54,584 | $ 39,687 |
Short-Term Investments - Summar
Short-Term Investments - Summary of Estimated Fair Value of Short-Term Investments, Designated as Available-for-Sale and Classified by Contractual Maturity (Detail) - USD ($) $ in Thousands | Apr. 30, 2016 | Jan. 31, 2016 |
Investments Debt And Equity Securities [Abstract] | ||
Due in one year or less | $ 160,382 | $ 151,214 |
Due in greater than one year | 51,111 | 62,810 |
Total | $ 211,493 | $ 214,024 |
Short-Term Investments - Additi
Short-Term Investments - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Apr. 30, 2016 | Jan. 31, 2016 | |
Investments Debt And Equity Securities [Abstract] | ||
Other-than-temporary impairment losses on investments | $ 0 | $ 0 |
Short-Term Investments - Sche41
Short-Term Investments - Schedule of Fair Values and Gross Unrealized Losses of Available-for-Sale Securities Aggregated by Investment Category (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Apr. 30, 2016 | Jan. 31, 2016 | |
Asset-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | $ 469 | $ 2,249 |
Gross Unrealized Losses | (1) | (2) |
Corporate notes and bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 10,101 | 14,296 |
Gross Unrealized Losses | (22) | (40) |
U.S. agency obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 24,158 | 82,806 |
Gross Unrealized Losses | (6) | (54) |
U.S. treasury securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 25,949 | 33,486 |
Gross Unrealized Losses | $ (8) | $ (37) |
Property and Equipment, Net - C
Property and Equipment, Net - Components of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Apr. 30, 2016 | Jan. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 53,226 | $ 51,816 |
Less accumulated depreciation | (5,567) | (4,347) |
Total property and equipment, net | 47,659 | 47,469 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,040 | 3,040 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 20,984 | 20,984 |
Land improvements and building improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 14,141 | 14,106 |
Equipment and computers [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 6,430 | 5,910 |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 6,735 | 6,453 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,768 | $ 1,323 |
Construction in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 128 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Property Plant And Equipment [Abstract] | ||
Depreciation | $ 1.2 | $ 0.4 |
Capitalized Internal-Use Soft44
Capitalized Internal-Use Software - Schedule of Capitalized Internal-Use Software, Net (Detail) - USD ($) $ in Thousands | Apr. 30, 2016 | Jan. 31, 2016 |
Capitalized Computer Software Net [Abstract] | ||
Capitalized internal-use software development costs | $ 3,967 | $ 3,801 |
Less accumulated amortization | (2,998) | (2,822) |
Capitalized internal-use software development costs, net | $ 969 | $ 979 |
Capitalized Internal-Use Soft45
Capitalized Internal-Use Software - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Movement In Capitalized Computer Software Net Roll Forward | ||
Capitalized internal-use software development costs | $ 0.2 | |
Capitalized internal-use software amortization expense | $ 0.2 | $ 0.2 |
Intangible Assets - Details of
Intangible Assets - Details of Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Apr. 30, 2016 | Jan. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross Carrying Amount | $ 54,470 | $ 54,470 |
Intangible assets, Accumulated Amortization | (9,024) | (6,970) |
Intangible assets, Net Carrying Amount | 45,446 | 47,500 |
Existing technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross Carrying Amount | 3,880 | 3,880 |
Intangible assets, Accumulated Amortization | (2,151) | (1,957) |
Intangible assets, Net Carrying Amount | $ 1,729 | $ 1,923 |
Intangible assets, Remaining Useful Life | 2 years 3 months 18 days | 2 years 7 months 6 days |
Database [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross Carrying Amount | $ 4,939 | $ 4,939 |
Intangible assets, Accumulated Amortization | (2,398) | (2,103) |
Intangible assets, Net Carrying Amount | $ 2,541 | $ 2,836 |
Intangible assets, Remaining Useful Life | 2 years 9 months 18 days | 3 years |
Customer contracts and relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross Carrying Amount | $ 33,643 | $ 33,643 |
Intangible assets, Accumulated Amortization | (2,567) | (1,693) |
Intangible assets, Net Carrying Amount | $ 31,076 | $ 31,950 |
Intangible assets, Remaining Useful Life | 9 years 2 months 12 days | 9 years 4 months 24 days |
Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross Carrying Amount | $ 10,867 | $ 10,867 |
Intangible assets, Accumulated Amortization | (1,717) | (1,106) |
Intangible assets, Net Carrying Amount | $ 9,150 | $ 9,761 |
Intangible assets, Remaining Useful Life | 3 years 10 months 24 days | 4 years 2 months 12 days |
Brand [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross Carrying Amount | $ 1,141 | $ 1,141 |
Intangible assets, Accumulated Amortization | (191) | (111) |
Intangible assets, Net Carrying Amount | $ 950 | $ 1,030 |
Intangible assets, Remaining Useful Life | 2 years 10 months 24 days | 3 years 2 months 12 days |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Intangible Assets Net Excluding Goodwill [Abstract] | ||
Amortization expense | $ 2.1 | $ 0.4 |
Intangible Assets - Estimated A
Intangible Assets - Estimated Amortization Expense (Detail) - USD ($) $ in Thousands | Apr. 30, 2016 | Jan. 31, 2016 |
Finite Lived Intangible Assets Future Amortization Expense Current And Five Succeeding Fiscal Years [Abstract] | ||
Fiscal 2,017 | $ 6,172 | |
Fiscal 2,018 | 7,791 | |
Fiscal 2,019 | 6,963 | |
Fiscal 2,020 | 6,062 | |
Fiscal 2,021 | 3,628 | |
Thereafter | 14,830 | |
Intangible assets, Net Carrying Amount | $ 45,446 | $ 47,500 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands | Apr. 30, 2016 | Jan. 31, 2016 |
Payables And Accruals [Abstract] | ||
Accrued commissions | $ 1,531 | $ 2,798 |
Accrued bonus | 1,751 | 2,957 |
Deferred compensation associated with Zinc Ahead | 2,784 | 1,120 |
Accrued other compensation and benefits | 5,828 | 5,576 |
Total accrued compensation and benefits | 11,894 | 12,451 |
Accrued fees payable to salesforce.com | 4,210 | 4,222 |
Accrued third-party professional services subcontractors' fees | 774 | 1,152 |
Sales taxes payable | 975 | 1,597 |
Other accrued expenses | 2,086 | 4,088 |
Total accrued expenses and other current liabilities | $ 8,045 | $ 11,059 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Hierarchy for Financial Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Apr. 30, 2016 | Jan. 31, 2016 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 211,493 | $ 214,024 |
Commercial paper [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investments | 16,151 | 5,970 |
Corporate notes and bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investments | 34,238 | 38,327 |
U.S. agency obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investments | 95,471 | 124,586 |
Asset-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investments | 11,049 | 5,454 |
U.S. treasury securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investments | 54,584 | 39,687 |
Fair value, measurements recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | 255,805 | 256,509 |
Fair value, measurements recurring [Member] | Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | 20,212 | 28,087 |
Fair value, measurements recurring [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | 235,593 | 228,422 |
Fair value, measurements recurring [Member] | Money market funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 20,212 | 28,087 |
Fair value, measurements recurring [Member] | Money market funds [Member] | Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 20,212 | 28,087 |
Fair value, measurements recurring [Member] | Commercial paper [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 12,999 | |
Short-term investments | 16,151 | 5,970 |
Fair value, measurements recurring [Member] | Commercial paper [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 12,999 | |
Short-term investments | 16,151 | 5,970 |
Fair value, measurements recurring [Member] | Corporate notes and bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,001 | 11,396 |
Short-term investments | 34,238 | 38,327 |
Fair value, measurements recurring [Member] | Corporate notes and bonds [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,001 | 11,396 |
Short-term investments | 34,238 | 38,327 |
Fair value, measurements recurring [Member] | U.S. agency obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 10,100 | 3,002 |
Short-term investments | 95,471 | 124,586 |
Fair value, measurements recurring [Member] | U.S. agency obligations [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 10,100 | 3,002 |
Short-term investments | 95,471 | 124,586 |
Fair value, measurements recurring [Member] | Asset-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investments | 11,049 | 5,454 |
Fair value, measurements recurring [Member] | Asset-backed securities [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investments | 11,049 | 5,454 |
Fair value, measurements recurring [Member] | U.S. treasury securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investments | 54,584 | 39,687 |
Fair value, measurements recurring [Member] | U.S. treasury securities [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 54,584 | $ 39,687 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rates | 39.10% | 40.10% |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Apr. 30, 2016 | Jan. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of shares, Options granted | 1,075,000 | |
Unrecognized compensation cost, net of estimated forfeitures, related to unvested stock options granted | $ 40.2 | |
Intrinsic value of options exercised | $ 15.3 | |
Stock Options [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted average period of unvested stock | 3 years 9 months 18 days | |
Restricted Stock Units (RSUs) [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted average period of unvested stock | 3 years 3 months 18 days | |
Weighted average grant date fair value, RSUs granted | $ 25.44 | |
Number of shares, RSUs granted | 1,462,105 | |
Unrecognized compensation cost, net of estimated forfeitures, related to unvested RSUs | $ 84.5 | |
2013 Equity Incentive Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted-average grant date fair value of options granted | $ 11.99 | |
Number of shares, Options granted | 1,075,000 | |
2013 Equity Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted average grant date fair value, RSUs granted | $ 25.44 | |
Number of shares, RSUs granted | 1,462,105 | |
2012 and 2013 Equity Incentive Plan [Member] | Minimum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation cost recognition vesting service period | 4 years | |
2012 and 2013 Equity Incentive Plan [Member] | Maximum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation cost recognition vesting service period | 9 years | |
Class B common stock [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Common stock, shares unvested | 56,666 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Option Activity (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Apr. 30, 2016 | Jan. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Number of shares, Options outstanding, Beginning Balance | 18,549,702 | |
Number of shares, Options granted | 1,075,000 | |
Number of shares, Options exercised | (676,316) | |
Number of shares, Options forfeited/cancelled | (86,285) | |
Number of shares, Options outstanding, Ending Balance | 18,862,101 | 18,549,702 |
Number of shares, Options vested and exercisable | 5,673,922 | |
Number of shares, Options vested and exercisable and expected to vest thereafter | 18,091,270 | |
Weighted average exercise price, Options outstanding, Beginning Balance | $ 5.01 | |
Weighted average exercise price, Options granted | 25.41 | |
Weighted average exercise price, Options exercised | 2.15 | |
Weighted average exercise price, Options forfeited/cancelled | 4.86 | |
Weighted average exercise price, options outstanding, Ending Balance | 6.28 | $ 5.01 |
Weighted average exercise price, Options vested and exercisable | 4.18 | |
Weighted average exercise price, Options vested and exercisable and expected to vest thereafter | $ 6.21 | |
Weighted average remaining contractual term, Options outstanding | 6 years 9 months 18 days | 6 years 9 months 18 days |
Weighted average remaining contractual term, Options vested and exercisable | 6 years 1 month 6 days | |
Weighted average remaining contractual term, Options vested and exercisable and expected to vest thereafter | 6 years 9 months 18 days | |
Aggregate intrinsic value, Options outstanding | $ 402,583,061 | $ 359,306,108 |
Aggregate intrinsic value, Options vested and exercisable | 133,245,875 | |
Aggregate intrinsic value, Options vested and exercisable and expected to vest thereafter | $ 387,417,783 |
Stockholders' Equity - Summar54
Stockholders' Equity - Summary of Restricted Stock Unit (RSU) Activity (Detail) - Restricted Stock Units (RSUs) [Member] | 3 Months Ended |
Apr. 30, 2016$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unreleased Restricted Stock Units, Beginning Balance | shares | 2,219,425 |
Unreleased Restricted Stock Units, RSUs granted | shares | 1,462,105 |
Unreleased Restricted Stock Units, RSUs vested | shares | (167,916) |
Unreleased Restricted Stock Units, RSUs forfeited/cancelled | shares | (111,329) |
Unreleased Restricted Stock Units, Ending Balance | shares | 3,402,285 |
Weighted average grant date fair value, Beginning Balance | $ / shares | $ 26.80 |
Weighted average grant date fair value, RSUs granted | $ / shares | 25.44 |
Weighted average grant date fair value, RSUs vested | $ / shares | 26.88 |
Weighted average grant date fair value, RSUs forfeited/cancelled | $ / shares | 26.22 |
Weighted average grant date fair value, Ending Balance | $ / shares | $ 26.23 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Weighted-Average Assumptions Used to Estimate Grant Date Fair Value of Options Granted (Detail) - Stock Options [Member] | 3 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Volatility | 46.00% | |
Volatility, Minimum | 45.00% | |
Volatility, Maximum | 46.00% | |
Expected term (in years) | 6 years 1 month 10 days | |
Risk-free interest rate, Minimum | 1.48% | 1.76% |
Risk-free interest rate, Maximum | 1.67% | 1.83% |
Dividend yield | 0.00% | 0.00% |
Minimum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term (in years) | 6 years 3 months 22 days | |
Maximum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term (in years) | 7 years 6 months 22 days |
Net Income per Share Attribut56
Net Income per Share Attributable to Common Stockholders - Numerators and Denominators of the Basic and Diluted EPS Computations for Common Stock (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ||
Net income | $ 12,509 | $ 12,982 |
Weighted average shares used in computing net income per share attributable to common stockholders, basic | 133,996 | 131,163 |
Net income per share attributable to common stockholders, basic | $ 0.09 | $ 0.10 |
Reallocation as a result of conversion of Class B to Class A common stock: | ||
Weighted average shares used in computing net income per share attributable to common stockholders, diluted | 145,708 | 144,734 |
Net income per share attributable to common stockholders, diluted | $ 0.09 | $ 0.09 |
Class A common stock [Member] | ||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ||
Net income | $ 8,404 | $ 6,837 |
Undistributed earnings allocated to participating securities | (3) | (9) |
Net income attributable to common stockholders, basic | $ 8,401 | $ 6,828 |
Weighted average shares used in computing net income per share attributable to common stockholders, basic | 90,020 | 69,078 |
Net income per share attributable to common stockholders, basic | $ 0.09 | $ 0.10 |
Net income attributable to common stockholders, basic | $ 8,401 | $ 6,828 |
Reallocation as a result of conversion of Class B to Class A common stock: | ||
Net income attributable to common stockholders, basic | 4,104 | 6,136 |
Net income attributable to common stockholders, diluted | $ 12,505 | $ 12,964 |
Conversion of Class B to Class A common stock | 43,976 | 62,085 |
Effect of potentially dilutive common shares | 11,712 | 13,571 |
Weighted average shares used in computing net income per share attributable to common stockholders, diluted | 145,708 | 144,734 |
Net income per share attributable to common stockholders, diluted | $ 0.09 | $ 0.09 |
Class B common stock [Member] | ||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ||
Net income | $ 4,105 | $ 6,145 |
Undistributed earnings allocated to participating securities | (1) | (9) |
Net income attributable to common stockholders, basic | $ 4,104 | $ 6,136 |
Weighted average shares used in computing net income per share attributable to common stockholders, basic | 43,976 | 62,085 |
Net income per share attributable to common stockholders, basic | $ 0.09 | $ 0.10 |
Net income attributable to common stockholders, basic | $ 4,104 | $ 6,136 |
Reallocation as a result of conversion of Class B to Class A common stock: | ||
Reallocation of net income to Class B common stock | 675 | 640 |
Net income attributable to common stockholders, diluted | $ 4,779 | $ 6,776 |
Effect of potentially dilutive common shares | 11,712 | 13,571 |
Weighted average shares used in computing net income per share attributable to common stockholders, diluted | 55,688 | 75,656 |
Net income per share attributable to common stockholders, diluted | $ 0.09 | $ 0.09 |
Net Income per Share Attribut57
Net Income per Share Attributable to Common Stockholders - Potential Common Share Equivalents Excluded where the Inclusion would be Anti-dilutive (Detail) - shares | 3 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Earnings Per Share [Abstract] | ||
Options and awards to purchase shares not included in the computation of diluted net income per share because their inclusion would be anti-dilutive | 1,489,703 | 643,638 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 3 Months Ended |
Apr. 30, 2016USD ($) | |
Value-Added Reseller Agreement [Member] | |
Long Term Purchase Commitment [Line Items] | |
Minimum fee commitment obligation | $ 396.7 |
Purchase commitment, description | The agreement, as amended, requires that we meet minimum order commitments of $500 million over the term of the agreement, which ends on September 1, 2025, including “true-up” payments if the orders we place with salesforce.com have not equaled or exceeded the following aggregate amounts within the timeframes indicated: (i) $250 million for the period from March 1, 2014 to September 1, 2020 and (ii) the full amount of $500 million by September 1, 2025. |
Minimum order commitment | $ 500 |
Agreement maturity date | Sep. 1, 2025 |
Value-Added Reseller Agreement [Member] | September 1, 2025 [Member] | |
Long Term Purchase Commitment [Line Items] | |
Minimum order commitment | $ 500 |
Value-Added Reseller Agreement [Member] | March 1, 2014 to September 1, 2020 [Member] | |
Long Term Purchase Commitment [Line Items] | |
Minimum order commitment | 250 |
OEM Agreement [Member] | Zinc Ahead Inc [Member] | |
Long Term Purchase Commitment [Line Items] | |
Minimum fee commitment obligation | 0.8 |
Minimum fee commitment obligation, due in 2016 | 0.2 |
Minimum fee commitment obligation, due in 2017 | 0.2 |
Minimum fee commitment obligation, due in 2018 | 0.2 |
Minimum fee commitment obligation, due in 2019 | $ 0.2 |
Information about Geographic 59
Information about Geographic Areas - Revenues by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Revenues by geography | ||
Total revenues | $ 119,764 | $ 89,923 |
North America [Member] | ||
Revenues by geography | ||
Total revenues | 65,439 | 50,053 |
Europe and other [Member] | ||
Revenues by geography | ||
Total revenues | 34,814 | 24,131 |
Asia Pacific [Member] | ||
Revenues by geography | ||
Total revenues | $ 19,511 | $ 15,739 |
Information about Geographic 60
Information about Geographic Areas - Long-Lived Assets by Geographic Area (Detail) - USD ($) $ in Thousands | Apr. 30, 2016 | Jan. 31, 2016 |
Long-lived assets by geography | ||
Total long-lived assets | $ 47,659 | $ 47,469 |
North America [Member] | ||
Long-lived assets by geography | ||
Total long-lived assets | 44,949 | 45,163 |
Europe and other [Member] | ||
Long-lived assets by geography | ||
Total long-lived assets | 1,805 | 1,827 |
Asia Pacific [Member] | ||
Long-lived assets by geography | ||
Total long-lived assets | $ 905 | $ 479 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) | 1 Months Ended |
May. 31, 2016Customer | |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Number of CRM customers | 38 |