Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Jan. 31, 2018 | Feb. 28, 2018 | Jul. 31, 2017 | |
Document And Entity Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | VEEV | ||
Entity Registrant Name | VEEVA SYSTEMS INC | ||
Entity Central Index Key | 1,393,052 | ||
Current Fiscal Year End Date | --01-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 7.6 | ||
Class A common stock [Member] | |||
Document And Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 117,571,233 | ||
Class B common stock [Member] | |||
Document And Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 24,820,140 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2018 | Jan. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 320,183 | $ 217,606 |
Short-term investments | 441,779 | 301,266 |
Accounts receivable, net of allowance for doubtful accounts of $345 and $659, respectively | 233,731 | 182,816 |
Prepaid expenses and other current assets | 12,443 | 10,177 |
Total current assets | 1,008,136 | 711,865 |
Property and equipment, net | 52,284 | 49,907 |
Goodwill | 95,804 | 95,804 |
Intangible assets, net | 31,490 | 39,283 |
Deferred income taxes, noncurrent | 3,490 | 16,460 |
Other long-term assets | 5,804 | 4,057 |
Total assets | 1,197,008 | 917,376 |
Current liabilities: | ||
Accounts payable | 6,944 | 5,677 |
Accrued compensation and benefits | 17,054 | 12,007 |
Accrued expenses and other current liabilities | 13,152 | 12,310 |
Income tax payable | 2,080 | 3,228 |
Deferred revenue | 275,446 | 213,562 |
Total current liabilities | 314,676 | 246,784 |
Deferred income taxes, noncurrent | 3,828 | 12,974 |
Other long-term liabilities | 6,977 | 4,964 |
Total liabilities | 325,481 | 264,722 |
Commitments and contingencies (Note 11) | ||
Stockholders’ equity: | ||
Additional paid-in capital | 515,272 | 439,658 |
Accumulated other comprehensive income | 1,404 | 111 |
Retained earnings | 354,850 | 212,884 |
Total stockholders’ equity | 871,527 | 652,654 |
Total liabilities and stockholders’ equity | 1,197,008 | 917,376 |
Class A common stock [Member] | ||
Stockholders’ equity: | ||
Common stock | $ 1 | $ 1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2018 | Jan. 31, 2017 |
Allowance for doubtful accounts | $ 345 | $ 659 |
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 | 117,246,735 | 103,789,544 |
Common stock, shares outstanding | 117,246,735 | 103,789,544 |
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 | 24,822,661 | 34,097,075 |
Common stock, shares outstanding | 24,822,661 | 34,097,075 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | ||
Revenues: | ||||
Subscription services | $ 554,446 | $ 434,316 | $ 316,314 | |
Professional services and other | 131,125 | 109,727 | 92,907 | |
Total revenues | 685,571 | 544,043 | 409,221 | |
Cost of revenues: | ||||
Cost of subscription services | [1] | 110,465 | 94,386 | 71,180 |
Cost of professional services and other | [1] | 100,974 | 79,295 | 71,034 |
Total cost of revenues | [1] | 211,439 | 173,681 | 142,214 |
Gross profit | 474,132 | 370,362 | 267,007 | |
Operating expenses: | ||||
Research and development | [1] | 132,051 | 96,750 | 65,976 |
Sales and marketing | [1] | 130,898 | 116,803 | 80,984 |
General and administrative | [1] | 60,391 | 48,841 | 41,458 |
Total operating expenses | [1] | 323,340 | 262,394 | 188,418 |
Operating income | 150,792 | 107,968 | 78,589 | |
Other income, net | 7,842 | 1,667 | 28 | |
Income before income taxes | 158,634 | 109,635 | 78,617 | |
Provision for income taxes | 16,668 | 40,831 | 24,157 | |
Net income | 141,966 | 68,804 | 54,460 | |
Net income attributable to Class A and Class B common stockholders, basic and diluted | $ 141,966 | $ 68,801 | $ 54,413 | |
Net income per share attributable to Class A and Class B common stockholders: | ||||
Basic | $ 1.01 | $ 0.51 | $ 0.41 | |
Diluted | $ 0.92 | $ 0.47 | $ 0.38 | |
Weighted-average shares used to compute net income per share attributable to Class A and Class B common stockholders: | ||||
Basic | 140,311 | 135,698 | 132,020 | |
Diluted | 153,681 | 147,578 | 144,977 | |
Other comprehensive income: | ||||
Net change in unrealized losses on available-for-sale investments | $ (1,793) | $ (153) | $ (181) | |
Net change in cumulative foreign currency translation gain | 3,086 | 92 | 327 | |
Comprehensive income | $ 143,259 | $ 68,743 | $ 54,606 | |
[1] | Includes stock-based compensation as follows: Cost of revenues: Cost of subscription services $1,448 $1,109 $563 Cost of professional services and other 8,476 6,002 3,858 Research and development 17,782 11,937 7,249 Sales and marketing 16,288 13,271 6,861 General and administrative 10,055 8,479 5,727 Total stock-based compensation $54,049 $40,798 $24,258 |
Consolidated Statements of Com5
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Stock-based compensation | $ 54,049 | $ 40,798 | $ 24,258 |
Cost of subscription services [Member] | |||
Stock-based compensation | 1,448 | 1,109 | 563 |
Cost of professional services and other [Member] | |||
Stock-based compensation | 8,476 | 6,002 | 3,858 |
Research and development [Member] | |||
Stock-based compensation | 17,782 | 11,937 | 7,249 |
Sales and marketing [Member] | |||
Stock-based compensation | 16,288 | 13,271 | 6,861 |
General and administrative [Member] | |||
Stock-based compensation | $ 10,055 | $ 8,479 | $ 5,727 |
Consolidated Statements Stockho
Consolidated Statements Stockholders' Equity - USD ($) $ in Thousands | Total | Class A & B Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] |
Beginning balance, value at Jan. 31, 2015 | $ 406,833 | $ 1 | $ 317,881 | $ 88,925 | $ 26 |
Beginning balance, shares at Jan. 31, 2015 | 131,067,625 | ||||
Issuance of common stock upon exercise of stock options, value | 5,898 | 5,898 | |||
Issuance of common stock upon exercise of stock options, shares | 2,012,497 | ||||
Issuance of common stock upon early exercise of stock options | 22,084 | ||||
Vesting of early exercised stock options | 70 | 70 | |||
Repurchase of unvested early exercised stock options | (3,333) | ||||
Issuance of common stock upon vesting of restricted stock units, value | (6) | (6) | |||
Issuance of common stock upon vesting of restricted stock units, shares | 446,312 | ||||
Stock-based compensation expense | 24,321 | 24,321 | |||
Excess tax benefits from employee stock plans | 13,527 | 13,527 | |||
Other comprehensive income (loss) | 146 | 146 | |||
Net income | 54,460 | 54,460 | |||
Ending balance, value at Jan. 31, 2016 | 505,249 | $ 1 | 361,691 | 143,385 | 172 |
Ending balance, shares at Jan. 31, 2016 | 133,545,185 | ||||
Issuance of common stock upon exercise of stock options, value | 12,443 | 12,443 | |||
Issuance of common stock upon exercise of stock options, shares | 3,369,356 | ||||
Vesting of early exercised stock options | 26 | 26 | |||
Issuance of common stock upon vesting of restricted stock units, value | (14) | (14) | |||
Issuance of common stock upon vesting of restricted stock units, shares | 972,078 | ||||
Stock-based compensation expense | 39,884 | 39,884 | |||
Excess tax benefits from employee stock plans | 25,628 | 25,628 | |||
Other comprehensive income (loss) | (61) | (61) | |||
Net income | 69,499 | 69,499 | |||
Ending balance, value at Jan. 31, 2017 | 652,654 | $ 1 | 439,658 | 212,884 | 111 |
Ending balance, shares at Jan. 31, 2017 | 137,886,619 | ||||
Issuance of common stock upon exercise of stock options, value | $ 21,194 | 21,194 | |||
Issuance of common stock upon exercise of stock options, shares | 2,935,962 | 2,935,962 | |||
Vesting of early exercised stock options | $ 1 | 1 | |||
Issuance of common stock upon vesting of restricted stock units, shares | 1,246,815 | ||||
Stock-based compensation expense | 54,419 | 54,419 | |||
Other comprehensive income (loss) | 1,293 | 1,293 | |||
Net income | 141,966 | 141,966 | |||
Ending balance, value at Jan. 31, 2018 | $ 871,527 | $ 1 | $ 515,272 | $ 354,850 | $ 1,404 |
Ending balance, shares at Jan. 31, 2018 | 142,069,396 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | ||
Cash flows from operating activities | ||||
Net income | $ 141,966 | $ 68,804 | $ 54,460 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 14,277 | 13,825 | 8,464 | |
Amortization of premiums on short-term investments | 1,389 | 1,852 | 2,804 | |
Stock-based compensation | 54,049 | 40,798 | 24,258 | |
Deferred income taxes | 3,282 | (5,073) | (6,264) | |
Loss on foreign currency from market-to-market derivative | 265 | |||
Bad debt expense | (242) | 130 | 201 | |
Changes in operating assets and liabilities: | ||||
Accounts receivable | (50,673) | (38,148) | (46,653) | |
Income taxes | (2,520) | 911 | (2,994) | |
Prepaid expenses and other current and long-term assets | (2,492) | 831 | 180 | |
Accounts payable | 1,396 | 1,113 | (494) | |
Accrued expenses and other current liabilities | 7,149 | 336 | 5,042 | |
Deferred revenue | 61,773 | 56,208 | 39,357 | |
Other long-term liabilities | 3,818 | 2,424 | 1,793 | |
Net cash provided by operating activities | [1] | 233,437 | 144,011 | 80,154 |
Cash flows from investing activities | ||||
Purchases of short-term investments | (437,858) | (314,847) | (313,357) | |
Maturities and sales of short-term investments | 294,705 | 225,600 | 364,968 | |
Purchases of property and equipment | (9,633) | (6,923) | (21,153) | |
Acquisitions, net of cash acquired | (126,183) | |||
Purchases of intangible assets | (568) | |||
Capitalized internal-use software development costs | (1,734) | (584) | (431) | |
Changes in restricted cash and deposits | (202) | 102 | 41 | |
Net cash used in investing activities | (154,722) | (96,652) | (96,683) | |
Cash flows from financing activities | ||||
Proceeds from early exercise of common stock options | 10 | |||
Proceeds from exercise of common stock options | 20,773 | 12,362 | 5,875 | |
Restricted stock units acquired to settle employee tax withholding liability | (14) | (6) | ||
Excess tax benefits from employee stock plans | 25,628 | 13,527 | ||
Net cash provided by financing activities | [1] | 20,773 | 37,976 | 19,406 |
Effect of exchange rate changes on cash and cash equivalents | 3,089 | 92 | 49 | |
Net change in cash and cash equivalents | 102,577 | 85,427 | 2,926 | |
Cash and cash equivalents at beginning of period | 217,606 | 132,179 | 129,253 | |
Cash and cash equivalents at end of period | 320,183 | 217,606 | 132,179 | |
Supplemental disclosures of other cash flow information: | ||||
Cash paid for income taxes, net of refunds | 12,461 | 14,154 | 19,968 | |
Non-cash investing and financing activities: | ||||
Changes in accounts payable and accrued expenses related to property and equipment purchases | (1,388) | 460 | 334 | |
Vesting of early exercised stock options | $ 1 | $ 26 | 70 | |
Zinc Ahead Inc [Member] | ||||
Non-cash investing and financing activities: | ||||
Working capital adjustment, not yet paid | $ 339 | |||
[1] | During the fiscal year ended January 31, 2018, we adopted Accounting Standards Update (ASU) 2016-09, “Compensation-Stock Compensation: Improvements to Employee Share-Based Payment.” Refer to note 1—New Accounting Pronouncements Adopted in Fiscal 2018 for further details. This adoption resulted in a $8.6 million and $45.8 million increase in net cash provided by operating activities and a corresponding decrease in net cash provided by financing activities for the three months and fiscal year ended January 31, 2018, respectively. |
Consolidated Statements of Cas8
Consolidated Statements of Cash Flows (Parenthetical) - Accounting Standards Update 2016-09 [Member] - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Jan. 31, 2018 | Jan. 31, 2018 | |
Increase in net cash provided by operating activities due to adoption of accounting standards | $ 8.6 | $ 45.8 |
Decrease in net cash provided by financing activities due to adoption of accounting standards | $ 8.6 | $ 45.8 |
Summary of Business and Signifi
Summary of Business and Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2018 | |
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 solutions for the global life sciences industry. We were founded in 2007 on the premise that industry-specific cloud solutions could best address the operating challenges and regulatory requirements of life sciences companies. Our products are designed to meet the unique needs of our customers and their most strategic business functions—from research and development (R&D) to commercialization. Our products address a broad range of needs—including multichannel customer relationship management (CRM), content management, master data management, and data regarding healthcare professionals and organizations. Veeva is also offering its regulated content management solutions to a new set of customers in process and discrete manufacturing, consumer packaged goods, and highly regulated services industries. Our fiscal year end is January 31. Principles of Consolidation and Basis of Presentation These consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding annual financial reporting and include the accounts of our wholly-owned subsidiaries after elimination of intercompany accounts and transactions. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates, judgments and assumptions that affect the consolidated financial statements and the notes thereto. These estimates are based on information available as of the date of the consolidated financial statements. On a regular basis, management evaluates these estimates and assumptions. 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 realizability of deferred income tax assets and liabilities; • the fair value of our stock-based awards; 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. Segment Information Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assessing performance. We define the term “chief operating decision maker” to be our Chief Executive Officer. Our Chief Executive Officer reviews the financial information presented on a consolidated basis for purposes of allocating resources and evaluating our financial performance. Accordingly, we have determined that we operate in a single reportable operating segment. Since we operate in one operating segment, all required financial segment information can be found in the consolidated financial statements. Revenue Recognition We derive our revenues primarily from subscription services 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, our acquired Zinc Ahead business 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 • 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-cancelable and do not provide for refunds to customers in the event of cancellations. 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 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 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 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 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 as well as the experience level and estimated location of the resources performing the services. We allocate consideration proportionately based on established BESP and then recognize the allocated consideration as revenue over the respective delivery period 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 revenue recognition criteria are met. We generally invoice our customers in annual or quarterly installments for 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 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, losses related to lack of collectibility have not been material. The following customers individually exceeded 10% of total accounts receivable as of the dates shown: January 31, January 31, 2018 2017 Customer 1 18% 15% Customer 2 13% 15% * Does not exceed 10%. In our fiscal years ended January 31, 2018, 2017 and 2016, our top 10 customers accounted for 42%, 45% and 50% of our total revenues, respectively. No single customer represented over 10% of our total revenues for the fiscal years ended January 31, 2018, 2017 or 2016. Cash Equivalents We consider all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. We classify certain restricted cash balances within other long-term assets on the accompanying balance sheets based upon the term of the remaining restrictions. Short-term Investments We classify short-term investments as available-for-sale at the time of purchase and reevaluate such classification as of each balance sheet date. All short-term investments are recorded at estimated fair value. Unrealized gains and losses for available-for-sale securities are included in accumulated other comprehensive income, a component of stockholders’ equity. We evaluate our investments to assess whether those with unrealized loss positions are other than temporarily impaired. We consider impairments to be other than temporary if they are related to deterioration in credit risk or if it is likely we will sell the securities before the recovery of their cost basis. Realized gains and losses and declines in value judged to be other than temporary are determined based on the specific identification method and are reported in other income, net, in the consolidated statements of comprehensive income. Interest, amortization of premiums, and accretion of discount on all short-term investments classified as available for sale are also included as a component of other income, net, in the consolidated statements of comprehensive income. We may sell our short-term investments at any time, without significant penalty, for use in current operations or for other purposes, even if they have not yet reached maturity. As a result, we classify our investments, including securities with maturities beyond 12 months as current assets in the accompanying consolidated balance sheets. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at the invoiced amount and do not bear interest. We establish an allowance for doubtful accounts for estimated losses expected in our accounts receivable portfolio. In establishing the required allowance, we use the specific-identification method, and management considers historical losses adjusted to take into account current market conditions and the customers’ financial condition, the amount of receivables in dispute, and the current receivables aging and current payment patterns. We review our allowance for doubtful accounts periodically. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Activity related to our allowance for doubtful accounts was as follows (in thousands): Fiscal Year Ended January 31, 2018 2017 2016 Balance at beginning of period $ 659 $ 542 $ 413 Add: charges (credits) to costs and expenses (242 ) 130 201 Less: (write-offs) (72 ) (13 ) (72 ) Balance at end of period $ 345 $ 659 $ 542 Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets and commences once the asset is placed in service or ready for its intended use. Construction in progress is related to the construction or development of property (including land) and equipment that have not yet been placed in service for our intended use. The estimated useful lives by asset classification are generally as follows: Asset Classification Estimated Useful Life Land Not depreciated Building 30 years Land and building improvements Shorter of remaining life of building or estimated useful life Equipment and computers 3 years Furniture and fixtures 5 years Leasehold improvements Shorter of remaining life of the lease term or estimated useful life Upon sale or retirement of an asset, the cost and related accumulated depreciation are removed from the general ledger and any related gains or losses are reflected in operating expenses. Repairs and maintenance are charged to our statement of comprehensive income as incurred. Internal-Use Software We capitalize certain costs incurred for the development of computer software for internal use. These costs generally relate to the development of our CRM, content and information management and customer master solutions. We capitalize these costs during the development of the project, when it is determined that it is probable that the project will be completed, and the software will be used as intended. Costs related to preliminary project activities, post-implementation activities, training and maintenance are expensed as incurred. Internal-use software is amortized on a straight-line basis over its estimated useful life, generally three years, and the amortization expense is recorded as a component of cost of subscription services. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. We exercise judgment in determining the point at which various projects may be capitalized, in assessing the ongoing value of the capitalized costs and in determining the estimated useful lives over which the costs are amortized. To the extent that we change the manner in which we develop and test new features and functionalities related to our solutions, assess the ongoing value of capitalized assets or determine the estimated useful lives over which the costs are amortized, the amount of internal-use software development costs we capitalize and amortize could change in future periods. Goodwill and Intangible Assets Goodwill represents the excess of the purchase price over the fair value of the underlying net tangible and intangible assets acquired and liabilities assumed in connection with business combinations accounted for using the acquisition method of accounting. Goodwill is not amortized, but instead goodwill is required to be tested for impairment annually and under certain circumstances. We perform such testing of goodwill in the fourth quarter of each year, or as events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. If we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we then conduct a two-step test for impairment of goodwill. The first step of the test for goodwill impairment compares the fair value of the applicable reporting unit with its carrying value. If the fair value of a reporting unit is less than the reporting unit’s carrying value, we will perform the second step of the test for impairment of goodwill. During the second step of the test for impairment of goodwill, we will compare the implied fair value of the reporting unit’s goodwill with the carrying value of that goodwill. If the carrying value of the goodwill exceeds the calculated implied fair value, the excess amount will be recognized as an impairment loss. We have one reporting unit and evaluate goodwill for impairment at the entity level. We completed our annual impairment test in our fourth quarter of fiscal year ended January 31, 2018, which did not result in any impairment of the goodwill balance. All other intangible assets associated with purchased intangibles, consisting of existing technology, databases, customer contracts and relationships, software, and brand are stated at cost less accumulated amortization and are amortized on a straight-line basis over their estimated remaining economic lives. Amortization expense related to existing technology, databases and software is included in cost of subscription services. Amortization expense related to customer contracts and relationships and brand are included in sales and marketing expense. Long-Lived Assets Long-lived assets, such as property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, we first compare undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. There were no impairment charges recognized during fiscal years ended January 31, 2018, 2017 and 2016. Business Combinations We use our best estimates and assumptions to accurately assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. Our estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. In addition, uncertain tax positions and tax-related valuation allowances are initially established in connection with a business combination as of the acquisition date. We continue to collect information and reevaluate these estimates and assumptions quarterly and record any adjustments to our preliminary estimates to goodwill provided that we are within the measurement period. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our consolidated statements of comprehensive income. Stock-based Compensation We recognize compensation expense for all stock-based awards, including stock options and restricted stock units (RSUs), based on the estimate of fair value of the award at the grant date. The fair value of each option award is estimated on the grant date using either a Monte Carlo simulation for market condition awards or Black-Scholes option-pricing model and a single option award approach. These models require that at the date of grant we determine the fair value of the underlying common stock, the expected term of the award, the expected volatility of the price of our common stock, risk-free interest rates, and expected dividend yield of our common stock. The fair value of each RSU award is measured based on the closing stock price of our common stock on the date of grant. We adopted ASU 2016-09 on February 1, 2017. Upon adoption, we elected to account for forfeitures as they occur and to no longer estimate for forfeitures. As such, we recorded a net cumulative-effect adjustment of $0.7 million to increase our February 1, 2017 opening retained earnings balance. The compensation expense is recognized using a straight-line basis over the requisite service periods of the awards, which is generally four to nine years. The fair value of each stock-based payment award and stock purchase right granted under the 2013 Employee Stock Purchase Plan (ESPP) was estimated on the date of grant using the Black-Scholes option pricing model. We recognized stock-based compensation expenses related to our ESPP on a straight-line basis over the offering period, which was seven months. The determination of the grant date fair value of stock based payment awards using an option-pricing model are affected by assumptions regarding a number of other complex and subjective variables, which include our expected stock price volatility over the expected term of the options, stock option exercise and cancellation behaviors, risk-free interest rates and expected dividends. Cost of Revenues Cost of subscription services and professional services and other revenues are expensed as incurred. Cost of subscription services revenues for all of our solutions consists of expenses related to our computing infrastructure provided by third parties, including salesforce.com and Amazon Web Services, personnel related costs associated with hosting our subscription services and providing support, including our data stewards, operating lease expense associated with computer equipment and software and allocated overhead, amortization expense associated with capitalized internal-use software related to our subscription services and amortization expense associated with purchased intangibles related to our subscription services. Cost of subscription services revenues for Veeva CRM and certain of our multichannel customer relationship management applications includes fees paid to salesforce.com for our use of the Salesforce1 Platform and the associated hosting infrastructure and data center operations that are provided by salesforce.com. Cost of professional services and other revenues primarily consists of employee-related expenses associated with providing these services, including salaries, benefits and stock-based compensation expense, third-party subcontractor costs, travel costs and allocated overhead. Sales Commissions Sales commissions paid for subscriptions are recorded as a component of sales and marketing expenses when earned by our sales team. Commissions are typically earned upon booking of a customer contract. Sales commission expense was $21.9 million, $22.0 million and $16.4 million for the fiscal years ended January 31, 2018, 2017 and 2016, respectively. Advertising Expenses Advertising is expensed as incurred. Advertising expense was $0.4 million, $0.2 million and $0.2 million for the fiscal years ended January 31, 2018, 2017 and 2016, respectively. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We regularly assess the realizability of our deferred tax assets and establish a valuation allowance if it is more-likely-than-not that some or all of our deferred tax assets will not be realized. We evaluate and weigh all available positive and negative evidence such as historic results, future reversals of existing deferred tax liabilities, projected future taxable income, as well as prudent and feasible tax-planning strategies. Generally, more weight is given to objectively verifiable evidence, such as the cumulative income in recent years. We establish liabilities or reduce assets for uncertain tax positions when we believe certain tax positions are not more likely than not of being sustained if challenged. We recognize liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining whether the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. If we determine that a tax position will more likely than not be sustained on audit, the second step requires us to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement with the tax authority. We consider many factors when evaluating and estimating our tax positions and tax benefits, which may require periodic adjustments and may not accurately forecast actual outcomes. Determining whether an uncertain tax position is effectively settled requires judgment. Such a change in status or measurement would result in the recognition of a tax benefit or an additional charge to the tax provision. We recognize interest accrued and penalties related to unrecognized tax benefits in our income tax expense. Other Comprehensive Income Accumulated other comprehensive income is reported as a component of stockholders’ equity and includes unrealized gains and losses on marketable securities that are available-for-sale and foreign currency translation adjustments. Foreign Currency Exchange The functional currency for Brazil, China, India, Japan, Korea and the Zinc subsidiaries in the United Kingdom is their local currency and for all other foreign subsidiaries their functional currency is the U.S. dollar. Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars for those entities that do not have U.S. dollars as their functional currency are recorded as part of a separate component of the consolidated statements of comprehensive income. Foreign currency transaction gains and losses are included in the consolidated statements of operations for the period. All monetary assets and liabilities denominated non-functional currency are translated into the functional currency at the exchange rate on the balance sheet date. Revenues and expenses are translated at the average exchange rate during the period. Equity transactions are translated using historical exchange rates. Warranties and Indemnification Our cloud applications are generally warranted to perform materially in accordance with our standard services description documentation. Additionally, our contracts generally include provisions for indemnifying customers against liabilities if our solutions infringe a third party’s intellectual property rights, and we may also incur liabilities if we breach the security and/or confidentiality obligations in our contracts. To date, we have not incurred any material costs, and we have not accrued any liabilities in the accompanying consolidated financial statements, as a result of these obligations. We also entered into service-level agreements with our customers that specify required levels of application uptime and permit customers to receive credits or to terminate their agreements and receive a refund of prepaid amounts related to unused subscription services in the event that we fail to meet required performance levels. As of January 31, 2018, we have not accrued any liabilities related to these agreements in the consolidated financial statements. New Accounting Pronouncements Adopted in Fiscal 2018 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 • The standard eliminates additional paid in capital (APIC) pools and requires excess tax benefits and deficiencies to be recorded in the income statement as a discrete item when restricted stock units vest or stock options are settled. The adoption of this guidance on a prospective basis resulted in the recognition of excess tax benefits in our provision for income taxes of $8.6 million and $45.8 million for the three months and fiscal year ended January 31, 2018. • Upon adoption, we elected to account for forfeitures as they occur and to no longer estimate forfeitures using a modified retrospective transition method, which resulted in a net cumulative-effect adjustment of $0.7 million to increase our February 1, 2017 opening retained earnings balance. • In addition, ASU 2016-09 requires excess tax benefits and deficiencies to be classified as operating activities on the consolidated statement of cash flows. Previously, these items were classified as financing activities. We have elected to present the cash flow impact using a prospective transition method. As a result, there were no adjustments to the consolidated statement of cash flows for the three months and fiscal year ended January 31, 2018. Excess tax benefits and deficiencies must be prospectively excluded from assumed future proceeds in the calculation of diluted shares when using the treasury stock method. The effect of this change on the fully diluted net income per share was immaterial for the three months and fiscal year ended January 31, 2018. Recently Issued Accounting Pronouncements Revenue Recognition In May 2014, the FASB issued ASU 2014-09, “ Revenue from Contracts with Customers The adoption of the new standard primarily impacts our accounting for non-cancelable multi-year contracts and will result in an increase to previously reported revenue. For instance, with respect to certain of our multi-year orders in which fees increase from year to year, Topic 606 may require that the total contracted revenue for the entire multi-year term of the order be recognized ratably in the same amount in each year, whereas previously we recognized revenue ratably over the term of each annual invoice period. The adoption of the new standard also impacts changes in our accounting method related to the deferral of costs to obtain customer contracts, which is comprised of commissions on our subscription services arrangements and the other associated fringe benefits. Select consolidated statements of comprehensive income line items, which reflect the adoption of the new standard are as follows (in thousands): Fiscal Year Ended January 31, 2018 2017 As Reported As Adjusted As Reported As Adjusted Revenues: Subscription services $ 554,446 $ 559,434 $ 434,316 $ 440,815 Operating expenses: Sales and marketing 130,898 128,749 116,803 110,582 Operating income 150,792 157,929 107,968 120,688 Net income $ 141,966 $ 151,176 $ 68,804 $ 77,572 Net income per share attributable to Class A and Class B common stockholders: Basic $ 1 |
Short-Term Investments
Short-Term Investments | 12 Months Ended |
Jan. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Short-Term Investments | Note 2. Short-Term Investments At January 31, 2018, 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 $ 67,875 $ — $ (424 ) $ 67,451 Commercial paper 19,926 — (12 ) 19,914 Corporate notes and bonds 160,499 1 (759 ) 159,741 Foreign government bonds 1,504 — (18 ) 1,486 Mortgage backed securities 11,555 — (75 ) 11,480 U.S. agency obligations 71,206 1 (76 ) 71,131 U.S. treasury securities 110,707 5 (136 ) 110,576 Total available-for-sale securities $ 443,272 $ 7 $ (1,500 ) $ 441,779 At January 31, 2017, 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 $ 20,729 $ 5 $ (16 ) $ 20,718 Commercial paper 20,567 4 (1 ) 20,570 Corporate notes and bonds 92,843 14 (101 ) 92,756 U.S. agency obligations 87,091 12 (51 ) 87,052 U.S. treasury securities 80,277 4 (111 ) 80,170 Total available-for-sale securities $ 301,507 $ 39 $ (280 ) $ 301,266 The following table summarizes the estimated fair value of our short-term investments, designated as available-for-sale and classified by the contractual maturity date of the securities as of the dates shown (in thousands): January 31, 2018 2017 Due in one year or less $ 308,172 $ 225,183 Due in greater than one year 133,607 76,083 Total $ 441,779 $ 301,266 We have certain available-for-sale securities in a gross unrealized loss position, some of which have been in that position for more 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, our financial position and near-term prospects 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, we would write down the respective investment to fair value. For debt securities, the portion of the write-down related to credit loss would be recognized as other income, net in our 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 January 31, 2018 and 2017. 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, 2018 (in thousands): Gross Fair unrealized value losses Asset-backed securities $ 65,690 $ (424 ) Commercial paper 19,914 (12 ) Corporate notes and bonds 155,419 (759 ) Foreign government bonds 1,485 (18 ) Mortgage backed securities 11,481 (75 ) U.S. agency obligations 66,655 (76 ) U.S. treasury securities 82,147 (136 ) 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, 2017 (in thousands): Gross Fair unrealized value losses Asset-backed securities $ 14,027 $ (16 ) Commercial paper 5,694 (1 ) Corporate notes and bonds 67,220 (101 ) U.S. agency obligations 40,549 (51 ) U.S. treasury securities 68,704 (111 ) |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Jan. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | Note 3. Property and Equipment, Net Property and equipment, net consists of the following as of the dates shown (in thousands): January 31, 2018 2017 Land $ 3,040 $ 3,040 Building 20,984 20,984 Land improvements and building improvements 20,073 14,731 Equipment and computers 7,732 7,197 Furniture and fixtures 9,619 7,322 Leasehold improvements 3,637 2,615 Construction in progress 36 2,889 65,121 58,778 Less accumulated depreciation (12,837 ) (8,871 ) Total property and equipment, net $ 52,284 $ 49,907 Total depreciation expense was $5.9 million, $4.9 million and $3.1 million for the fiscal years ended January 31, 2018, 2017 and 2016, respectively. Land is not depreciated. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Jan. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Note 4. Intangible Assets and Goodwill The following schedule presents the details of intangible assets as of January 31, 2018 (dollar amounts in thousands): January 31, 2018 Gross Remaining carrying Accumulated useful life amount amortization Net (in years) Existing technology $ 3,880 $ (3,509 ) $ 371 0.8 Database 4,939 (4,091 ) 848 2.0 Customer contracts and relationships 33,643 (8,798 ) 24,845 7.5 Software 10,867 (5,820 ) 5,047 2.2 Brand 1,141 (762 ) 379 1.2 $ 54,470 $ (22,980 ) $ 31,490 The following schedule presents the details of intangible assets as of January 31, 2017 (dollar amounts in thousands): January 31, 2017 Gross Remaining carrying Accumulated useful life amount amortization Net (in years) Existing technology $ 3,880 $ (2,733 ) $ 1,147 1.6 Database 4,939 (3,291 ) 1,648 2.5 Customer contracts and relationships 33,643 (5,245 ) 28,398 8.5 Software 10,867 (3,481 ) 7,386 3.2 Brand 1,141 (437 ) 704 2.2 $ 54,470 $ (15,187 ) $ 39,283 Amortization expense associated with intangible assets for the fiscal years ended January 31, 2018, 2017 and 2016 was $7.8 million, $8.2 million and $4.3 million, respectively. The estimated amortization expense for intangible assets for the next five years and thereafter is as follows as of January 31, 2018 (in thousands): Estimated amortization Period expense Fiscal 2019 $ 6,969 Fiscal 2020 6,062 Fiscal 2021 3,629 Fiscal 2022 3,182 Fiscal 2023 3,182 Thereafter 8,466 Total $ 31,490 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Jan. 31, 2018 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | Note 5. Accrued Expenses Accrued expenses consisted of the following as of the dates shown (in thousands): January 31, 2018 2017 Accrued commissions $ 3,565 $ 3,754 Accrued bonus 3,068 2,333 Deferred compensation associated with Zinc Ahead 467 333 Accrued vacation 2,608 1,866 Payroll tax payable 3,580 1,402 Accrued other compensation and benefits 3,766 2,319 Total accrued compensation and benefits $ 17,054 $ 12,007 Accrued fees payable to salesforce.com 4,929 4,520 Accrued third-party professional services subcontractors' fees 1,614 953 Taxes payable 3,009 2,663 Other accrued expenses 3,600 4,174 Total accrued expenses and other current liabilities $ 13,152 $ 12,310 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 6. Fair Value Measurements We apply the provisions of FASB Accounting Standards Codification (ASC) Topic 820, Fair Value Measurements and Disclosures The carrying amounts of accounts receivable and other current assets, accounts payable and accrued liabilities approximate their fair value due to their short-term nature. Financial assets and liabilities recorded at fair value in the consolidated financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, which are directly related to the amount of subjectivity associated with the inputs to the valuation of these assets or liabilities are as follows: Level 1—Observable inputs, such as quoted prices in active markets for identical assets or liabilities. Level 2—Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Financial assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires management to make judgments and considers factors specific to the asset or liability. The following table presents the fair value hierarchy for financial assets measured at fair value on a recurring basis as of January 31, 2018 (in thousands): Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 25,820 $ — $ — $ 25,820 Commercial paper — 1,999 — 1,999 Corporate notes and bonds — 2,080 — 2,080 U.S. treasury securities — 8,000 — 8,000 Short-term investments: Asset-backed securities — 67,451 — 67,451 Commercial paper — 19,914 — 19,914 Corporate notes and bonds — 159,741 — 159,741 Foreign government bonds — 1,486 — 1,486 Mortgage backed securities — 11,480 — 11,480 U.S. agency obligations — 71,131 — 71,131 U.S. treasury securities — 110,576 — 110,576 Foreign currency derivative contracts — 127 — 127 Total $ 25,820 $ 453,985 $ — $ 479,805 Liabilities Foreign currency derivative contracts — 391 — 391 Total $ — $ 391 $ — $ 391 The following table presents the fair value hierarchy for financial assets measured at fair value on a recurring basis as of January 31, 2017 (in thousands): Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 20,174 $ — $ — $ 20,174 Corporate notes and bonds — — — — U.S. agency obligations — 5,450 — 5,450 Short-term investments: Asset-backed securities — 20,718 — 20,718 Commercial paper — 20,570 — 20,570 Corporate notes and bonds — 92,756 — 92,756 U.S. agency obligations — 87,052 — 87,052 U.S. treasury securities — 80,170 — 80,170 Total $ 20,174 $ 306,716 $ — $ 326,890 We determine the fair value of our security holdings based on pricing from our service providers and market prices from industry-standard independent data providers. The valuation techniques used to measure the fair value of financial instruments having Level 2 inputs were derived from non-binding consensus prices that are corroborated by observable market data or quoted market prices for similar instruments. Such market prices may be quoted prices in active markets for identical assets (Level 1 inputs) or pricing determined using inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs). We perform procedures to ensure that appropriate fair values are recorded such as comparing prices obtained from other sources. Balance Sheet Hedges During the fiscal year ended January 31, 2018, we entered into foreign currency forward contracts (the “Forward Contracts”) in order to hedge our foreign currency exposure. A foreign currency forward contract is a commitment to deliver a certain amount of currency at a certain price on a specific date in the future. By entering into Forward Contracts and holding them to maturity, we are locked into a future currency exchange rate in an amount equal to and for the terms of the Forward Contracts. We account for derivative instruments at fair value with changes in the fair value recorded as a component of other income, net in our consolidated statements of comprehensive income. Cash flows from such forward contracts are classified as operating activities. During the fiscal year ended January 31, 2018, we recognized realized foreign currency gains on hedging of $4.3 million. Details on outstanding balance sheet hedges are presented below as of the date shown below (in thousands): January 31, 2018 Derivative Assets Balance Sheet Location Derivatives not designated as hedging instruments: Foreign currency derivative contracts Prepaid expenses and other current assets $ 127 Derivative Liabilities Derivatives not designated as hedging instruments: Foreign currency derivative contracts Accrued expenses $ 391 The Fair value of our outstanding derivative instruments is summarized below (in thousands): January 31, 2018 Notional amount of foreign currency derivative contracts $ 36,266 Fair value of foreign currency derivative contracts 36,531 |
Other Income, Net
Other Income, Net | 12 Months Ended |
Jan. 31, 2018 | |
Other Income And Expenses [Abstract] | |
Other Income, Net | Note 7. Other Income, Net Other income, net consisted of the following (in thousands): Fiscal Year Ended January 31, 2018 2017 2016 Foreign currency gain (loss) $ 1,177 $ (1,009 ) $ (1,785 ) Amortization of investment premiums (1,718 ) (1,801 ) (2,804 ) Interest income 8,383 4,477 4,617 Other income, net $ 7,842 $ 1,667 $ 28 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8. Income Taxes The components of income before income taxes by U.S. and foreign jurisdictions were as follows for the periods shown (in thousands): Fiscal Year Ended January 31, 2018 2017 2016 United States $ 133,035 $ 97,981 $ 82,331 Foreign 25,599 11,654 (3,714 ) Total $ 158,634 $ 109,635 $ 78,617 The majority of our revenues from international sales are invoiced from and collected by our U.S. entity and recognized as a component of income before taxes in the United States as opposed to a foreign jurisdiction. Provision for income taxes consisted of the following for the periods shown (in thousands): Fiscal Year Ended January 31, 2018 2017 2016 Current provision: Federal $ 5,315 $ 36,004 $ 26,919 State 209 4,924 2,897 Foreign 8,022 4,976 826 Total $ 13,546 $ 45,904 $ 30,642 Deferred provision: Federal 3,884 (2,395 ) (4,573 ) State 304 (338 ) (209 ) Foreign (1,066 ) (2,340 ) (1,703 ) Total $ 3,122 $ (5,073 ) $ (6,485 ) Provision for income taxes $ 16,668 $ 40,831 $ 24,157 Provision for income taxes differed from the amount computed by applying the federal statutory income tax rate of 33.8%, to income before income taxes as a result of the following for the periods shown (in thousands): Fiscal Year Ended January 31, 2018 2017 2016 Federal tax statutory tax rate $ 53,629 $ 38,371 $ 27,489 State taxes 3,919 3,883 2,034 Nondeductible expenses (462 ) (367 ) 794 Research and development credit (9,409 ) (6,739 ) (4,353 ) Domestic manufacturing deduction (1,096 ) (1,678 ) (1,712 ) Stock-based compensation (37,347 ) 4,338 3,331 Foreign rate differential (2,207 ) 1,042 (5,104 ) Valuation allowance 4,010 1,630 5,655 Impact of foreign operations 4,842 1,891 — Tax election benefit — — (2,865 ) Others 789 (1,540 ) (1,112 ) Provision for income taxes $ 16,668 $ 40,831 $ 24,157 The tax effects of temporary differences that give rise to significant portions of our deferred tax assets and liabilities related to the following (in thousands): January 31, 2018 2017 Deferred Tax Assets: Accruals and reserves $ 8,444 $ 11,022 Net operating loss carryforward 2,002 1,753 State income taxes 236 1,612 Tax credit carryforward 10,196 11,479 Other 30 264 Gross Deferred Tax Assets $ 20,908 $ 26,130 Valuation Allowance (10,329 ) (9,670 ) Total Deferred Tax Assets $ 10,579 $ 16,460 Deferred Tax Liabilities: Property and equipment $ (633 ) $ (906 ) Intangible assets (8,078 ) (11,678 ) Expensed internal-use software (595 ) (390 ) Other (1,611 ) — Total Deferred Tax Liabilities $ (10,917 ) $ (12,974 ) Net Deferred Tax Assets $ (338 ) $ 3,486 In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. As a result, a valuation allowance was assessed as it is not more likely than not that we will recognize the future benefits on certain net California deferred tax asset balances. As of January 31, 2018, we did not have any net operating loss carryforwards for federal income tax purposes. As of January 31, 2018, the net operating loss carryforwards for state income tax purposes were approximately $4.1 million. The federal net operating losses and the state net operating losses begin to expire in 2033. As of January 31, 2018, we had $15.9 million of California research and development tax credits available to offset future taxes, which do not expire. We evaluate tax positions for recognition using a more-likely than-not recognition threshold, and those tax positions eligible for recognition are measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon the effective settlement with a taxing authority that has full knowledge of all relevant information. On December 22, 2017, the Tax Act was enacted into law and amended certain provisions of the Internal Revenue Code of 1986 (IRC). Amendments to the IRC, include, among others, a reduction of the corporate income tax rate from 35% to 21% effective January 1, 2018, a transition tax on accumulated foreign earnings (transition tax), the shift from a worldwide to a territorial tax regime, and a limitation on the deductibility of executive compensation under IRC Section 162(m). Account Standards Codification (ASC) 740, “Income Taxes” (Topic 740), requires us to recognize the effect of the Tax Act in the period of enactment, such as remeasuring our U.S. deferred tax assets and liabilities as well as reassessing the net realizability of our deferred tax assets and liabilities. However, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118), which allows companies the ability to record provisional amounts during a measurement period not to extend more than one year beyond the Tax Act enactment date. Since the Tax Act was passed late in 2017 and further guidance and accounting interpretations are expected over the next 12 months, our provisional estimate on the effect of the Tax Act in our financial statements remains subject to change. For the year ended January 31, 2018, the Company recognized provisional effects from the Tax Act, which include the remeasurement of the U.S. deferred tax assets and liabilities, application of the I.R.C. Section 162(m) provision and the transition tax. The effects of the 2017 Act had an immaterial impact on the Company’s financial statements for the current year. The Company will continue to evaluate the impact based on future guidance from the Internal Revenue Service. We classify unrecognized tax benefits that are not expected to result in payment or receipt of cash within one year as “other non-current liabilities” in the consolidated balance sheets. As of January 31, 2018, the total amount of gross unrecognized tax benefits was $11.4 million, of which $5.9 million, if recognized, would favorably impact our effective tax rate. The aggregate changes in our total gross amount of unrecognized tax benefits are summarized as follows for the periods shown (in thousands): Fiscal Year Ended January 31, 2018 2017 2016 Beginning balance $ 7,868 $ 5,248 $ 3,247 Increases related to tax positions taken during the prior period 189 24 160 Increases related to tax positions taken during the current period 4,032 2,888 2,185 Lapse of statute of limitations (691 ) (292 ) (344 ) Ending balance $ 11,398 $ 7,868 $ 5,248 Our policy is to classify interest and penalties associated with unrecognized tax benefits as income tax expense. Interest and penalties were not significant during fiscal year ended January 31, 2018. We file tax returns in the United States for federal, California, and other states. Fiscal years ended January 31, 2015 and forward remain open to examination for federal income tax, and fiscal years ended January 31, 2014 and forward remain open to examination for California and other states. We file tax returns in multiple foreign jurisdictions. The fiscal years ended January 31, 2013 and forward remain open to examination in these foreign jurisdictions. As of January 31, 2018, we had not made any tax provision for U.S. federal and state income taxes and foreign withholding taxes on an immaterial amount of undistributed cumulative earnings of foreign subsidiaries that would be potentially subject to taxes upon repatriation, because those earnings are considered to be indefinitely reinvested in those operations. If we were to repatriate these earnings to the United States, we would be subject to particular jurisdictional taxes. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jan. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stockholders' Equity | Note 9. Stockholders’ Equity Common Stock In connection with our initial public offering in October 2013 (IPO), we amended our certificate of incorporation to provide for Class A common stock, Class B common stock and preferred stock. Immediately prior to the consummation of the IPO, all outstanding shares of convertible preferred stock and common stock were converted into shares of Class B common stock. As a result, following the IPO, we have two classes of authorized common stock: Class A common stock and Class B common stock. As of January 31, 2018, we had 117,246,735 shares of Class A common stock and 24,822,661 shares of Class B common stock outstanding, of which no shares of Class B common stock were unvested. As of January 31, 2017, we had 103,789,544 shares of Class A common stock and 34,097,075 shares of Class B common stock outstanding, of which 2,500 shares of Class B common stock were unvested, resulting from employees exercising stock options prior to vesting. Employee Equity Plans 2007 Stock Plan Our board of directors adopted our 2007 Stock Plan (2007 Plan) in February 2007, and our stockholders approved it in February 2007. No further awards have been made under our 2007 Plan since the adoption of the 2012 Equity Incentive Plan. However, awards outstanding under our 2007 Plan will continue to be governed by their existing terms. 2012 Equity Incentive Plan Our board of directors adopted our 2012 Equity Incentive Plan (2012 EIP) in November 2012, and our stockholders approved it in December 2012. An amendment and restatement of the 2012 EIP was approved by our board of directors in March 2013, and our stockholders approved it in March 2013. The 2012 EIP became effective on adoption and replaced our 2007 Plan. No further awards have been made under our 2012 EIP since the adoption of the 2013 Equity Incentive Plan. However, awards outstanding under the 2012 EIP will continue to be governed by their existing terms. 2013 Equity Incentive Plan Our board of directors adopted our 2013 Equity Incentive Plan (2013 EIP) in August 2013, and our stockholders approved it in September 2013. The 2013 EIP became effective immediately on adoption although no awards were made under it until the date of our IPO on October 15, 2013, at which time our 2013 EIP replaced our 2012 EIP. As of January 31, 2018, the number of shares of our Class A common stock available for issuance under the 2013 EIP was 18,856,595 plus any shares of our Class B common stock subject to awards under the 2012 EIP and the 2007 Plan that expire or lapse unexercised or, with respect to shares issued pursuant to such awards, are forfeited or repurchased by us after the date of our IPO on October 15, 2013. The number of shares available for issuance under the 2013 EIP automatically increases on the first business day of each of our fiscal years, commencing in 2014, by a number equal to the least of (a) 13.75 million shares, (b) 5% of the shares of all classes of our common stock outstanding on the last business day of the prior fiscal year, or (c) the number of shares determined by our board of directors. During our fiscal year ended January 31, 2018, our board of directors determined to add 6,204,897 shares of common stock to the 2013 EIP. 2013 Employee Stock Purchase Plan Our ESPP was adopted by our board of directors in August 2013 and our stockholders approved it in September 2013. The ESPP became effective as of our IPO registration statement on Form S-1, on October 15, 2013. Our ESPP is intended to qualify under Section 423 of the Internal Revenue Code of 1986, as amended (Code). The ESPP was approved with a reserve of 4.0 million shares of Class A common stock for future issuance under various terms provided for in the ESPP. The number of shares available for issuance under the ESPP automatically increases on the first business day of each of our fiscal years, commencing in 2014, by a number equal to the least of (a) 2.2 million shares, (b) 1% of the shares of all classes of our common stock outstanding on the last business day of the prior fiscal year or (c) the number of shares determined by our board of directors. Prior to the beginning of our fiscal year ended January 31, 2018, our board of directors determined not to increase the number of shares available for issuance under the ESPP. During active offering periods, our ESPP permits eligible employees to acquire shares of our common stock at 85% of the lower of the fair market value of our Class A common stock on the first day of the applicable offering period or the fair market value of our Class A common stock on the purchase date. Participants may purchase shares of common stock through payroll deductions of up to 15% of their eligible compensation, subject to any plan limitations. Voting Rights The holders of our Class B common stock are entitled to ten votes per share, and holders of our Class A common stock are entitled to one vote per share. The holders of our Class A common stock and Class B common stock vote together as a single class, unless otherwise required by our restated certificate of incorporation or law. Delaware law could require either holders of our Class A common stock or our Class B common stock to vote separately as a single class in the following circumstances: • if we were to seek to amend our restated certificate of incorporation to increase the authorized number of shares of a class of stock, or to increase or decrease the par value of a class of stock, then that class would be required to vote separately to approve the proposed amendment; and • if we were to seek to amend our restated certificate of incorporation in a manner that alters or changes the powers, preferences or special rights of a class of stock in a manner that affected its holders adversely, then that class would be required to vote separately to approve the proposed amendment. Our restated certificate of incorporation requires the approval of a majority of our outstanding Class B common stock voting as a separate class for any transaction that would result in a change in control of our company. Stockholders do not have the ability to cumulate votes for the election of directors. Our restated certificate of incorporation and amended and restated bylaws that became effective upon the closing of our IPO provide for a classified board of directors consisting of three classes of approximately equal size, each serving staggered three-year terms. Only one class of directors will be elected at each annual meeting of our stockholders, with the other classes continuing for the remainder of their respective three-year terms. Dividend Rights Holders of outstanding shares of our common stock are entitled to receive dividends out of funds legally available if our board of directors, in its discretion, determines to issue dividends and only then at the times and in the amounts that our board of directors may determine. To date, no dividends have been declared or paid by us. No Preemptive or Similar Rights Our common stock is not entitled to preemptive rights and is not subject to conversion, redemption or sinking fund provisions. Right to Receive Liquidation Distributions Upon our dissolution, liquidation or winding-up, the assets legally available for distribution to our stockholders are distributable ratably among the holders of our common stock, subject to prior satisfaction of all outstanding debt and liabilities and the preferential rights and payment of liquidation preferences, if any, on any outstanding shares of preferred stock. Conversion Rights Each outstanding share of Class B common stock is convertible at any time at the option of the holder into one share of Class A common stock. In addition, each share of Class B common stock will convert automatically into one share of Class A common stock upon any transfer, whether or not for value, which occurs following the closing of our IPO, except for certain permitted transfers described in our restated certificate of incorporation, including transfers to any “permitted transferee” as defined in our restated certificate of incorporation, which includes, among others, transfers: • to trusts, corporations, limited liability companies, partnerships, foundations or similar entities established by a Class B stockholder, provided that: • such transfer is to entities established by a Class B stockholder where the Class B stockholder retains the exclusive right to vote and direct the disposition of the shares of Class B common stock; or • such transfer does not involve payment of cash, securities, property or other consideration to the Class B stockholder. Once converted into Class A common stock, a share of Class B common stock may not be reissued. All the outstanding shares of Class A and Class B common stock will convert automatically into shares of a single class of common stock upon the earliest to occur of the following: (i) upon the election of the holders of a majority of the then-outstanding shares of Class B common stock or (ii) October 15, 2023. Following such conversion, each share of common stock will have one vote per share and the rights of the holders of all outstanding common stock will be identical. Once converted into a single class of common stock, the Class A and Class B common stock may not be reissued. Early Exercise of Employee Options We historically have allowed for the early exercise of options granted under the 2007 Plan prior to vesting. The 2007 Plan allows for such exercises by means of cash payment, surrender of already outstanding common stock, a same day broker assisted sale or through any other form or method consistent with applicable laws, regulations and rules. Historically, all 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. As of January 31, 2018 and 2017, there were no unvested shares and 2,500 unvested shares, respectively, which were subject to repurchase at an aggregate price of an immaterial amount. These repurchase terms are considered to be a forfeiture provision and do not result in variable accounting. The restricted shares issued upon early exercise of stock options are legally issued and outstanding. However, these restricted shares are only deemed outstanding for basic earnings per share computation purposes upon the respective repurchase rights lapsing. We treat cash received from employees for the exercise of unvested options as a refundable deposit included as a liability in our consolidated balance sheets. During fiscal years ended January 31, 2018 and 2017, we recorded an immaterial amount of cash received for early exercise of options in accrued expenses. Amounts from accrued expenses are reclassified to common stock and additional paid-in capital as the shares vest. Stock Option Activity The 2007 Stock Plan and the 2012 EIP provided, and the 2013 EIP provides, for the issuance of incentive and nonstatutory options to employees, consultants and non-employee directors. Options issued under and outside of the 2007 Plan generally are exercisable for periods not to exceed 10 years and generally vest over four to five years. Options issued under the 2012 EIP and 2013 EIP generally are exercisable for periods not to exceed 10 years and generally vest over five to nine years. A summary of stock option activity for fiscal year ended January 31, 2018 is presented below: Weighted Weighted average average remaining Aggregate Number exercise contractual intrinsic of shares price term (in years) value Options outstanding at January 31, 2017 16,282,343 $ 7.48 6.3 $ 567,491,532 Options granted 2,879,635 59.97 Options exercised (2,935,962 ) 7.22 Options forfeited/cancelled (201,870 ) 22.84 Options outstanding at January 31, 2018 16,024,146 $ 16.76 6.1 $ 738,648,507 Options vested and exercisable at January 31, 2018 6,319,293 $ 5.47 4.9 $ 362,644,996 Options vested and exercisable at January 31, 2018 and expected to vest thereafter 16,024,146 $ 16.76 6.1 $ 738,648,507 The weighted average grant-date fair value of options granted during fiscal years ended January 31, 2018, 2017 and 2016 was $30.87, $14.12, and $12.36, respectively, per share. As of January 31, 2018, there was $113.6 million in unrecognized compensation cost related to unvested stock options granted under the 2007 Plan, 2012 EIP and 2013 EIP. This cost is expected to be recognized over a weighted average period of 4.0 years. As of January 31, 2018, we had authorized and unissued shares of common stock sufficient to satisfy exercises of stock options. Our closing stock price as reported on the New York Stock Exchange as of January 31, 2018, the last trading day of fiscal year 2018 was $62.86. The total intrinsic value of options exercised was $140.3 million for the fiscal year ended January 31, 2018. Restricted Stock Units The 2013 EIP provides for the issuance of RSUs to employees. RSUs issued under the 2013 EIP generally vest over four years. A summary of RSU activity for fiscal year ended January 31, 2018 is presented below: Weighted Unreleased average restricted grant date stock units fair value Balance at January 31, 2017 3,362,650 $ 29.33 RSUs granted 1,201,849 53.97 RSUs vested (1,247,103 ) 31.52 RSUs forfeited/cancelled (415,660 ) 32.54 Balance at January 31, 2018 2,901,736 $ 38.14 During the fiscal year ended January 31, 2018, we issued RSUs under the 2013 EIP with a weighted-average grant date fair value of $53.97. As of January 31, 2018, there was a total of $103.2 million in unrecognized compensation cost related to unvested RSUs, which are expected to be recognized over a weighted-average period of approximately 2.5 years. The total intrinsic value of RSUs vested was $70.7 million for the fiscal year ended January 31, 2018. Stock-Based Compensation Compensation expense related to share-based transactions, including equity awards to employees, consultants, and non-employee directors, is measured and recognized in the consolidated financial statements based on fair value. The fair value of each option award is estimated on the grant date using the Monte Carlo simulation or Black-Scholes option-pricing model. The stock-based compensation expense is recognized using a straight-line basis over the requisite service periods of the awards, which is generally four to nine years. For RSUs, fair value is based on the closing price of our common stock on the grant date. We adopted ASU 2016-09 on February 1, 2017. Upon adoption, we elected to account for forfeitures as they occur and to no longer estimate for forfeitures. As such, we recorded a net cumulative-effect adjustment of $0.7 million to increase our February 1, 2017 opening retained earnings balance. See notes 1 and 8 for additional information on the tax impact. 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. These assumptions are estimated as follows: • Risk-Free Interest Rate. We base the risk-free interest rate used in the Black-Scholes valuation model on the implied yield available on U.S. Treasury zero-coupon issues with an equivalent expected term of the options for each option group. • Expected Term. The expected term represents the period that our stock-based awards are expected to be outstanding. As we do not have sufficient historical experience for determining the expected term of the stock option awards granted, we have based our expected term on the simplified method available under GAAP. • Volatility. We determine the price volatility factor based on the historical volatility of our common stock over the expected term. • Dividend Yield. We have not paid and do not expect to pay dividends. The following table presents the weighted-average assumptions used to estimate the grant date fair value of options granted during the periods presented: Fiscal Year Ended January 31, 2018 2017 2016 Volatility 42% – 44% 45% – 46% 45% – 46% Expected term (in years) 6.35 6.31 – 7.56 5.50 – 6.32 Risk-free interest rate 1.86% – 2.21% 1.48% – 2.10% 1.69% – 1.84% Dividend yield 0% 0% 0 During the quarter ended January 31, 2018, we granted 2,838,635 stock options to our CEO. The stock option award is made up of five separate tranches. The first tranche vests over time, while the remaining four tranches vest based on certain stock price targets (market conditions). The grant date fair values of each tranche were calculated using a Monte Carlo simulation model. We have based our expected term on the historical stock activity behavior of our CEO. The following table provides the assumptions used in the Monte Carlo simulation for each tranche granted: Volatility 41 % Expected term (in years) 10.00 Risk-free interest rate 2.53 % Dividend yield 0 % For the years ended January 31, 2018, 2017 and 2016, we capitalized an immaterial amount of stock-based compensation as part of our internal-use software capitalization. Employee Stock Purchase Plan The initial offering period for our Employee Stock Purchase Plan (ESPP) commenced on the date of our initial public offering and ended on June 15, 2014. During our initial ESPP offering period 350,059 shares of Class A Common Stock were purchased. We have not had an open offering period subsequent to the initial offering period, and do not currently have an active, open offering period under our ESPP. During active offering periods, our ESPP permits eligible employees to acquire shares of our common stock at 85% of the lower of the fair market value of our Class A common stock on the first day of the applicable offering period or the fair market value of our Class A common stock on the purchase date. Participants may purchase shares of common stock through payroll deductions of up to 15% of their eligible compensation, subject to any plan limitations. The following table presents the weighted-average assumptions used to calculate our stock-based compensation for the stock purchases under the ESPP: Volatility 44 % Expected term (in years) 0.58 Risk-free interest rate 0.10 % Dividend yield 0 % |
Net Income per Share Attributab
Net Income per Share Attributable to Common Stockholders | 12 Months Ended |
Jan. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Income per Share Attributable to Common Stockholders | Note 10. Net Income per Share Attributable to Common Stockholders We compute net income per share of our Class A and Class B common stock using the two-class method required for participating securities. 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 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. The unvested shares of common stock resulting from early exercises of stock options accounted for all of our participating securities. 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): For the fiscal year ended January 31, 2018 2017 2016 Class A Class B Class A Class B Class A Class B Basic Numerator Net income $ 113,818 $ 28,148 $ 49,799 $ 19,005 $ 31,453 $ 23,007 Undistributed earnings allocated to participating securities — — (2 ) (1 ) (27 ) (20 ) Net income attributable to common stockholders, basic $ 113,818 $ 28,148 $ 49,797 $ 19,004 $ 31,426 $ 22,987 Denominator Weighted average shares used in computing net income per share attributable to common stockholders, basic 112,491 27,820 98,216 37,482 76,246 55,774 Net income per share attributable to common stockholders, basic $ 1.01 $ 1.01 $ 0.51 $ 0.51 $ 0.41 $ 0.41 Diluted Numerator Net income attributable to common stockholders, basic $ 113,818 $ 28,148 $ 49,797 $ 19,004 $ 31,426 $ 22,987 Reallocation as a result of conversion of Class B to Class A common stock: Net income attributable to common stockholders, basic 28,148 — 19,004 — 22,987 — Reallocation of net income to Class B common stock — 9,902 — 4,009 — 2,808 Net income attributable to common stockholders, diluted $ 141,966 $ 38,050 $ 68,801 $ 23,013 $ 54,413 $ 25,795 Denominator Number of shares used for basic EPS computation 112,491 27,820 98,216 37,482 76,246 55,774 Conversion of Class B to Class A common stock 27,820 — 37,482 — 55,774 — Effect of potentially dilutive common shares 13,370 13,370 11,880 11,880 12,957 12,957 Weighted average shares used in computing net income per share attributable to common stockholders, diluted 153,681 41,190 147,578 49,362 144,977 68,731 Net income per share attributable to common stockholders, diluted $ 0.92 $ 0.92 $ 0.47 $ 0.47 $ 0.38 $ 0.38 Potential common share equivalents excluded where the inclusion would be anti-dilutive are as follows: Fiscal Year Ended January 31, 2018 2017 2016 Options and awards to purchase shares not included in the computation of diluted net income per share because their inclusion would be anti-dilutive 833,691 2,040,238 886,472 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11. Commitments and Contingencies Litigation IQVIA Litigation Matter. IQVIA’s Complaint Alleging Theft of Trade Secrets. IQVIA Inc. (formerly Quintiles IMS Incorporated) and IMS Software Services, Ltd. (collectively, “IQVIA”) filed a complaint against us in the U.S. District Court for the District of New Jersey ( IQVIA Inc. v. Veeva Systems Inc. (No. 2:17-cv-00177)). In the complaint, IQVIA alleges that we have used unauthorized access to proprietary IQVIA data to improve our software and data products, and that our software is designed to steal IQVIA trade secrets. IQVIA further alleges that we have intentionally gained unauthorized access to IQVIA proprietary information to gain an unfair advantage in marketing our products, and that we have made false statements concerning IQVIA’s conduct and our data security capabilities. IQVIA asserts claims under both federal and state theft of trade secret laws, federal false advertising law, and common law claims for unjust enrichment, tortious interference, and unfair trade practices. The complaint seeks declaratory and injunctive relief and unspecified monetary damages. On March 13, 2017, we filed our Answer and Counterclaims to IQVIA’s complaint, a motion to dismiss all of IQVIA’s claims except for those asserted under the Lanham Act, and a motion to transfer the case to the U.S. District Court for the Northern District of California. IQVIA’s oppositions to each of those motions were filed on April 3, 2017, and our replies to IQVIA’s oppositions were filed on April 10, 2017. On June 23, 2017, the court denied our motion to transfer the case. On October 26, 2017, the court denied our motion to dismiss. While it is not possible at this time to predict with any degree of certainty the ultimate outcome of this action, and we are unable to make a meaningful estimate of the amount or range of loss, if any, that could result from any unfavorable outcome, we believe that IQVIA’s claims lack merit. Veeva’s Counterclaim Complaint Alleging Violations of Federal and State Antitrust Laws Our counterclaims allege that IQVIA has abused monopoly power as the dominant provider of data products for life sciences companies to exclude Veeva OpenData and Veeva Network from their respective markets. The counterclaims allege that IQVIA has engaged in various tactics to prevent customers from using our applications and has deliberately raised costs and difficulty for customers attempting to switch from IQVIA to our data products. The counterclaims assert federal and state antitrust claims, as well as claims under California’s Unfair Practices Act and common law claims for intentional interference with contractual relations and intentional interference with prospective economic advantage. The counterclaims seek injunctive relief, monetary damages exceeding $200 million, and attorneys’ fees. On May 3, 2017, in lieu of filing an answer, IQVIA filed a motion to dismiss our counterclaims. Our opposition to IQVIA’s motion to dismiss was filed on June 5, 2017, and IQVIA’s reply to our opposition was filed on June 19, 2017. That motion remains pending and a hearing has been set for April 20, 2018. Discovery in the IQVIA litigation is ongoing, and a case management schedule was entered on August 18, 2017. On January 10, 2018, the court appointed a special master to oversee discovery. No trial date has yet been set. Medidata Litigation Matter. On January 26, 2017, Medidata Solutions, Inc. filed a complaint in the U.S. District Court for the Southern District of New York ( Medidata Solutions, Inc. v. Veeva Systems Inc. et al. On February 21, 2017, Medidata and its subsidiary MDSOL Europe Limited (collectively, “Medidata”) filed a First Amended Complaint asserting the same allegations and claims. On March 1, 2017, Medidata voluntarily dismissed the Individual Defendants without prejudice. On March 3, 2017, we filed a motion to compel the entire matter to private arbitration, which Medidata opposed. On August 16, 2017, the district court issued an order denying Veeva’s motion to compel arbitration. On August 24, 2017, Veeva appealed the court’s order to the U.S. Court of Appeals for the Second Circuit. On January 26, 2018, Medidata filed a motion to dismiss this appeal. The Second Circuit has not yet set a date for oral argument. On August 30, 2017, Veeva filed a motion to dismiss Medidata’s entire complaint for failure to state a claim upon which relief may be granted. On September 20, 2017, Medidata filed a Second Amended Complaint, asserting additional allegations against the Individual Employees. The district court held an initial pretrial conference on September 28, 2017, but did not issue a scheduling order. On October 5, 2017, Veeva filed a renewed motion to compel arbitration of Medidata’s Second Amended Complaint, and that motion was denied by the district court on February 27, 2018. On March 9, 2018, Veeva filed a notice of appeal of this order. While it is not possible at this time to predict with any degree of certainty the ultimate outcome of this action, and we are unable to make a meaningful estimate of the amount or range of loss, if any, that could result from any unfavorable outcome, we deny Medidata’s allegations and will continue to vigorously defend ourselves against Medidata’s lawsuit. Other Litigation Matters From time to time, we may be involved in other legal proceedings and subject to claims incident to the ordinary course of business. Although the results of such legal proceedings and claims cannot be predicted with certainty, we believe we are not currently a party to any other legal proceedings, the outcome of which, if determined adversely to us, would individually or taken together have a material adverse effect on our business, operating results, cash flows or financial position. Regardless of the outcome, such proceedings can have an adverse impact on us because of defense and settlement costs, diversion of resources and other factors, and there can be no assurances that favorable outcomes will be obtained. 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. Leases We have several non-cancelable operating leases, primarily for offices and servers. Rental payments include minimum rental fees. Minimum rent payments under operating leases are recognized on a straight-line basis over the term of the lease including any periods of free rent. Rent expense for operating leases were $5.0 million, $4.5 million and $4.4 million, for the fiscal years ended January 31, 2018, 2017 and 2016, respectively. Future minimum lease payments under non-cancelable operating leases as of January 31, 2018 are as follows (in thousands): Operating Period leases Fiscal 2019 $ 4,955 Fiscal 2020 4,138 Fiscal 2021 3,171 Fiscal 2022 2,513 Fiscal 2023 1,362 Thereafter 1,348 Total $ 17,487 Value-Added Reseller Agreement We have a value-added reseller agreement with salesforce.com, inc. for our use of the Salesforce1 Platform in combination with our developed technology to deliver certain of our multichannel CRM 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 January 31, 2018, we remained obligated to pay fees of at least $285.8 million prior to September 1, 2025 in connection with this agreement. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Jan. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Note 12. Related-Party Transactions In September 2016, we entered into an agreement with Zoom Video Communications, Inc. (Zoom) to embed two of their products into our multichannel CRM applications. Pursuant to this agreement, we will pay Zoom a fixed annual fee that is not material to us. We have also entered into a contract with Zoom pursuant to which Zoom provides conference call, video conference and web conference capabilities for our internal use. Pursuant to this agreement, we pay Zoom a fee based on usage that has not been material in the past and that we do not expect to be material in the future. Our chief executive officer is on the board of directors of Zoom. Also, another member of our board of directors is the founder and a general partner of Emergence Capital Partners, one of Zoom's investors. |
Information about Geographic Ar
Information about Geographic Areas | 12 Months Ended |
Jan. 31, 2018 | |
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, which is primarily measured by the estimated location of the end users for subscription services revenues and the estimated location of the resources performing the services for professional services, were as follows for the periods shown below (in thousands): Fiscal Year Ended January 31, 2018 2017 2016 Revenues by geography North America $ 376,538 $ 297,014 $ 225,483 Europe and other 202,411 160,666 111,923 Asia Pacific 106,622 86,363 71,815 Total revenues $ 685,571 $ 544,043 $ 409,221 Long-lived assets by geographic area are as follows as of the periods shown (in thousands): January 31, 2018 2017 2016 Long-lived assets by geography North America $ 49,214 $ 47,096 $ 45,163 Europe and other 1,840 1,762 1,827 Asia Pacific 1,230 1,049 479 Total long-lived assets $ 52,284 $ 49,907 $ 47,469 Substantially all of the long-lived assets included in the North America region are located in the United States. |
401(k) Plan
401(k) Plan | 12 Months Ended |
Jan. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
401(k) Plan | Note 14. 401(k) Plan We have a qualified defined contribution plan under Section 401(k) of the Code covering eligible employees as well as a Registered Retirement Savings Plan (RRSP) for eligible employees in Canada. Under the 401(k) plan, beginning January 1, 2018, we match up to $2,000 per employee per year, which is equally distributed of up to $500 per quarter. Under the RRSP plan, we also match up to $2,000 per employee per year. For the three months ended January 31, 2018, total expense related to these plans was $0.4 million. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data | 12 Months Ended |
Jan. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | Note 15. Selected Quarterly Financial Data (Unaudited) Selected summarized quarterly financial information for fiscal years ended January 31, 2018 and 2017 is as follows (in thousands): Three Months Ended Jan. 31, 2018 Oct. 31, 2017 Jul. 31, 2017 Apr. 30, 2017 Jan. 31, 2017 Oct. 31, 2016 Jul. 31, 2016 Apr. 30, 2016 (in thousands) Consolidated Statements of Income Data: Total revenues $ 184,919 $ 176,149 $ 166,585 $ 157,918 $ 150,153 $ 142,779 $ 131,347 $ 119,764 Gross profit 126,002 122,913 116,181 109,036 103,683 98,854 89,152 78,673 Operating income 34,887 41,668 36,898 37,339 32,530 33,810 23,822 17,806 Net income $ 33,706 $ 34,393 $ 37,844 $ 36,023 $ 21,707 $ 21,630 $ 12,958 $ 12,509 Net income per share attributable to Class A and Class B common stockholders: Basic $ 0.24 $ 0.24 $ 0.27 $ 0.26 $ 0.16 $ 0.16 $ 0.10 $ 0.09 Diluted $ 0.22 $ 0.22 $ 0.25 $ 0.24 $ 0.15 $ 0.15 $ 0.09 $ 0.09 |
Summary of Business and Signi24
Summary of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2018 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business Veeva is a leading provider of industry cloud solutions for the global life sciences industry. We were founded in 2007 on the premise that industry-specific cloud solutions could best address the operating challenges and regulatory requirements of life sciences companies. Our products are designed to meet the unique needs of our customers and their most strategic business functions—from research and development (R&D) to commercialization. Our products address a broad range of needs—including multichannel customer relationship management (CRM), content management, master data management, and data regarding healthcare professionals and organizations. Veeva is also offering its regulated content management solutions to a new set of customers in process and discrete manufacturing, consumer packaged goods, and highly regulated services industries. Our fiscal year end is January 31. |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation These consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding annual financial reporting and include the accounts of our wholly-owned subsidiaries after elimination of intercompany accounts and transactions. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates, judgments and assumptions that affect the consolidated financial statements and the notes thereto. These estimates are based on information available as of the date of the consolidated financial statements. On a regular basis, management evaluates these estimates and assumptions. 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 realizability of deferred income tax assets and liabilities; • the fair value of our stock-based awards; 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. |
Segment Information | Segment Information Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assessing performance. We define the term “chief operating decision maker” to be our Chief Executive Officer. Our Chief Executive Officer reviews the financial information presented on a consolidated basis for purposes of allocating resources and evaluating our financial performance. Accordingly, we have determined that we operate in a single reportable operating segment. Since we operate in one operating segment, all required financial segment information can be found in the consolidated financial statements. |
Revenue Recognition | Revenue Recognition We derive our revenues primarily from subscription services 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, our acquired Zinc Ahead business 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 • 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-cancelable and do not provide for refunds to customers in the event of cancellations. 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 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 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 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 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 as well as the experience level and estimated location of the resources performing the services. We allocate consideration proportionately based on established BESP and then recognize the allocated consideration as revenue over the respective delivery period 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 revenue recognition criteria are met. We generally invoice our customers in annual or quarterly installments for 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 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, losses related to lack of collectibility have not been material. The following customers individually exceeded 10% of total accounts receivable as of the dates shown: January 31, January 31, 2018 2017 Customer 1 18% 15% Customer 2 13% 15% * Does not exceed 10%. In our fiscal years ended January 31, 2018, 2017 and 2016, our top 10 customers accounted for 42%, 45% and 50% of our total revenues, respectively. No single customer represented over 10% of our total revenues for the fiscal years ended January 31, 2018, 2017 or 2016. |
Cash Equivalents | Cash Equivalents We consider all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. We classify certain restricted cash balances within other long-term assets on the accompanying balance sheets based upon the term of the remaining restrictions. |
Short-term Investments | Short-term Investments We classify short-term investments as available-for-sale at the time of purchase and reevaluate such classification as of each balance sheet date. All short-term investments are recorded at estimated fair value. Unrealized gains and losses for available-for-sale securities are included in accumulated other comprehensive income, a component of stockholders’ equity. We evaluate our investments to assess whether those with unrealized loss positions are other than temporarily impaired. We consider impairments to be other than temporary if they are related to deterioration in credit risk or if it is likely we will sell the securities before the recovery of their cost basis. Realized gains and losses and declines in value judged to be other than temporary are determined based on the specific identification method and are reported in other income, net, in the consolidated statements of comprehensive income. Interest, amortization of premiums, and accretion of discount on all short-term investments classified as available for sale are also included as a component of other income, net, in the consolidated statements of comprehensive income. We may sell our short-term investments at any time, without significant penalty, for use in current operations or for other purposes, even if they have not yet reached maturity. As a result, we classify our investments, including securities with maturities beyond 12 months as current assets in the accompanying consolidated balance sheets. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at the invoiced amount and do not bear interest. We establish an allowance for doubtful accounts for estimated losses expected in our accounts receivable portfolio. In establishing the required allowance, we use the specific-identification method, and management considers historical losses adjusted to take into account current market conditions and the customers’ financial condition, the amount of receivables in dispute, and the current receivables aging and current payment patterns. We review our allowance for doubtful accounts periodically. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Activity related to our allowance for doubtful accounts was as follows (in thousands): Fiscal Year Ended January 31, 2018 2017 2016 Balance at beginning of period $ 659 $ 542 $ 413 Add: charges (credits) to costs and expenses (242 ) 130 201 Less: (write-offs) (72 ) (13 ) (72 ) Balance at end of period $ 345 $ 659 $ 542 |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets and commences once the asset is placed in service or ready for its intended use. Construction in progress is related to the construction or development of property (including land) and equipment that have not yet been placed in service for our intended use. The estimated useful lives by asset classification are generally as follows: Asset Classification Estimated Useful Life Land Not depreciated Building 30 years Land and building improvements Shorter of remaining life of building or estimated useful life Equipment and computers 3 years Furniture and fixtures 5 years Leasehold improvements Shorter of remaining life of the lease term or estimated useful life Upon sale or retirement of an asset, the cost and related accumulated depreciation are removed from the general ledger and any related gains or losses are reflected in operating expenses. Repairs and maintenance are charged to our statement of comprehensive income as incurred. |
Internal-Use Software | Internal-Use Software We capitalize certain costs incurred for the development of computer software for internal use. These costs generally relate to the development of our CRM, content and information management and customer master solutions. We capitalize these costs during the development of the project, when it is determined that it is probable that the project will be completed, and the software will be used as intended. Costs related to preliminary project activities, post-implementation activities, training and maintenance are expensed as incurred. Internal-use software is amortized on a straight-line basis over its estimated useful life, generally three years, and the amortization expense is recorded as a component of cost of subscription services. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. We exercise judgment in determining the point at which various projects may be capitalized, in assessing the ongoing value of the capitalized costs and in determining the estimated useful lives over which the costs are amortized. To the extent that we change the manner in which we develop and test new features and functionalities related to our solutions, assess the ongoing value of capitalized assets or determine the estimated useful lives over which the costs are amortized, the amount of internal-use software development costs we capitalize and amortize could change in future periods. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the excess of the purchase price over the fair value of the underlying net tangible and intangible assets acquired and liabilities assumed in connection with business combinations accounted for using the acquisition method of accounting. Goodwill is not amortized, but instead goodwill is required to be tested for impairment annually and under certain circumstances. We perform such testing of goodwill in the fourth quarter of each year, or as events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. If we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we then conduct a two-step test for impairment of goodwill. The first step of the test for goodwill impairment compares the fair value of the applicable reporting unit with its carrying value. If the fair value of a reporting unit is less than the reporting unit’s carrying value, we will perform the second step of the test for impairment of goodwill. During the second step of the test for impairment of goodwill, we will compare the implied fair value of the reporting unit’s goodwill with the carrying value of that goodwill. If the carrying value of the goodwill exceeds the calculated implied fair value, the excess amount will be recognized as an impairment loss. We have one reporting unit and evaluate goodwill for impairment at the entity level. We completed our annual impairment test in our fourth quarter of fiscal year ended January 31, 2018, which did not result in any impairment of the goodwill balance. All other intangible assets associated with purchased intangibles, consisting of existing technology, databases, customer contracts and relationships, software, and brand are stated at cost less accumulated amortization and are amortized on a straight-line basis over their estimated remaining economic lives. Amortization expense related to existing technology, databases and software is included in cost of subscription services. Amortization expense related to customer contracts and relationships and brand are included in sales and marketing expense. |
Long-Lived Assets | Long-Lived Assets Long-lived assets, such as property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, we first compare undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. There were no impairment charges recognized during fiscal years ended January 31, 2018, 2017 and 2016. |
Business Combinations | Business Combinations We use our best estimates and assumptions to accurately assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. Our estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. In addition, uncertain tax positions and tax-related valuation allowances are initially established in connection with a business combination as of the acquisition date. We continue to collect information and reevaluate these estimates and assumptions quarterly and record any adjustments to our preliminary estimates to goodwill provided that we are within the measurement period. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our consolidated statements of comprehensive income. |
Stock-based Compensation | Stock-based Compensation We recognize compensation expense for all stock-based awards, including stock options and restricted stock units (RSUs), based on the estimate of fair value of the award at the grant date. The fair value of each option award is estimated on the grant date using either a Monte Carlo simulation for market condition awards or Black-Scholes option-pricing model and a single option award approach. These models require that at the date of grant we determine the fair value of the underlying common stock, the expected term of the award, the expected volatility of the price of our common stock, risk-free interest rates, and expected dividend yield of our common stock. The fair value of each RSU award is measured based on the closing stock price of our common stock on the date of grant. We adopted ASU 2016-09 on February 1, 2017. Upon adoption, we elected to account for forfeitures as they occur and to no longer estimate for forfeitures. As such, we recorded a net cumulative-effect adjustment of $0.7 million to increase our February 1, 2017 opening retained earnings balance. The compensation expense is recognized using a straight-line basis over the requisite service periods of the awards, which is generally four to nine years. The fair value of each stock-based payment award and stock purchase right granted under the 2013 Employee Stock Purchase Plan (ESPP) was estimated on the date of grant using the Black-Scholes option pricing model. We recognized stock-based compensation expenses related to our ESPP on a straight-line basis over the offering period, which was seven months. The determination of the grant date fair value of stock based payment awards using an option-pricing model are affected by assumptions regarding a number of other complex and subjective variables, which include our expected stock price volatility over the expected term of the options, stock option exercise and cancellation behaviors, risk-free interest rates and expected dividends. |
Cost of Revenues | Cost of Revenues Cost of subscription services and professional services and other revenues are expensed as incurred. Cost of subscription services revenues for all of our solutions consists of expenses related to our computing infrastructure provided by third parties, including salesforce.com and Amazon Web Services, personnel related costs associated with hosting our subscription services and providing support, including our data stewards, operating lease expense associated with computer equipment and software and allocated overhead, amortization expense associated with capitalized internal-use software related to our subscription services and amortization expense associated with purchased intangibles related to our subscription services. Cost of subscription services revenues for Veeva CRM and certain of our multichannel customer relationship management applications includes fees paid to salesforce.com for our use of the Salesforce1 Platform and the associated hosting infrastructure and data center operations that are provided by salesforce.com. Cost of professional services and other revenues primarily consists of employee-related expenses associated with providing these services, including salaries, benefits and stock-based compensation expense, third-party subcontractor costs, travel costs and allocated overhead. |
Sales Commissions | Sales Commissions Sales commissions paid for subscriptions are recorded as a component of sales and marketing expenses when earned by our sales team. Commissions are typically earned upon booking of a customer contract. Sales commission expense was $21.9 million, $22.0 million and $16.4 million for the fiscal years ended January 31, 2018, 2017 and 2016, respectively. |
Advertising Expenses | Advertising Expenses Advertising is expensed as incurred. Advertising expense was $0.4 million, $0.2 million and $0.2 million for the fiscal years ended January 31, 2018, 2017 and 2016, respectively. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We regularly assess the realizability of our deferred tax assets and establish a valuation allowance if it is more-likely-than-not that some or all of our deferred tax assets will not be realized. We evaluate and weigh all available positive and negative evidence such as historic results, future reversals of existing deferred tax liabilities, projected future taxable income, as well as prudent and feasible tax-planning strategies. Generally, more weight is given to objectively verifiable evidence, such as the cumulative income in recent years. We establish liabilities or reduce assets for uncertain tax positions when we believe certain tax positions are not more likely than not of being sustained if challenged. We recognize liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining whether the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. If we determine that a tax position will more likely than not be sustained on audit, the second step requires us to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement with the tax authority. We consider many factors when evaluating and estimating our tax positions and tax benefits, which may require periodic adjustments and may not accurately forecast actual outcomes. Determining whether an uncertain tax position is effectively settled requires judgment. Such a change in status or measurement would result in the recognition of a tax benefit or an additional charge to the tax provision. We recognize interest accrued and penalties related to unrecognized tax benefits in our income tax expense. |
Other Comprehensive Income | Other Comprehensive Income Accumulated other comprehensive income is reported as a component of stockholders’ equity and includes unrealized gains and losses on marketable securities that are available-for-sale and foreign currency translation adjustments. |
Foreign Currency Exchange | Foreign Currency Exchange The functional currency for Brazil, China, India, Japan, Korea and the Zinc subsidiaries in the United Kingdom is their local currency and for all other foreign subsidiaries their functional currency is the U.S. dollar. Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars for those entities that do not have U.S. dollars as their functional currency are recorded as part of a separate component of the consolidated statements of comprehensive income. Foreign currency transaction gains and losses are included in the consolidated statements of operations for the period. All monetary assets and liabilities denominated non-functional currency are translated into the functional currency at the exchange rate on the balance sheet date. Revenues and expenses are translated at the average exchange rate during the period. Equity transactions are translated using historical exchange rates. |
Warranties and Indemnification | Warranties and Indemnification Our cloud applications are generally warranted to perform materially in accordance with our standard services description documentation. Additionally, our contracts generally include provisions for indemnifying customers against liabilities if our solutions infringe a third party’s intellectual property rights, and we may also incur liabilities if we breach the security and/or confidentiality obligations in our contracts. To date, we have not incurred any material costs, and we have not accrued any liabilities in the accompanying consolidated financial statements, as a result of these obligations. We also entered into service-level agreements with our customers that specify required levels of application uptime and permit customers to receive credits or to terminate their agreements and receive a refund of prepaid amounts related to unused subscription services in the event that we fail to meet required performance levels. As of January 31, 2018, we have not accrued any liabilities related to these agreements in the consolidated financial statements. |
New Accounting Pronouncements Adopted in Fiscal 2018 | New Accounting Pronouncements Adopted in Fiscal 2018 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 • The standard eliminates additional paid in capital (APIC) pools and requires excess tax benefits and deficiencies to be recorded in the income statement as a discrete item when restricted stock units vest or stock options are settled. The adoption of this guidance on a prospective basis resulted in the recognition of excess tax benefits in our provision for income taxes of $8.6 million and $45.8 million for the three months and fiscal year ended January 31, 2018. • Upon adoption, we elected to account for forfeitures as they occur and to no longer estimate forfeitures using a modified retrospective transition method, which resulted in a net cumulative-effect adjustment of $0.7 million to increase our February 1, 2017 opening retained earnings balance. • In addition, ASU 2016-09 requires excess tax benefits and deficiencies to be classified as operating activities on the consolidated statement of cash flows. Previously, these items were classified as financing activities. We have elected to present the cash flow impact using a prospective transition method. As a result, there were no adjustments to the consolidated statement of cash flows for the three months and fiscal year ended January 31, 2018. Excess tax benefits and deficiencies must be prospectively excluded from assumed future proceeds in the calculation of diluted shares when using the treasury stock method. The effect of this change on the fully diluted net income per share was immaterial for the three months and fiscal year ended January 31, 2018. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Revenue Recognition In May 2014, the FASB issued ASU 2014-09, “ Revenue from Contracts with Customers The adoption of the new standard primarily impacts our accounting for non-cancelable multi-year contracts and will result in an increase to previously reported revenue. For instance, with respect to certain of our multi-year orders in which fees increase from year to year, Topic 606 may require that the total contracted revenue for the entire multi-year term of the order be recognized ratably in the same amount in each year, whereas previously we recognized revenue ratably over the term of each annual invoice period. The adoption of the new standard also impacts changes in our accounting method related to the deferral of costs to obtain customer contracts, which is comprised of commissions on our subscription services arrangements and the other associated fringe benefits. Select consolidated statements of comprehensive income line items, which reflect the adoption of the new standard are as follows (in thousands): Fiscal Year Ended January 31, 2018 2017 As Reported As Adjusted As Reported As Adjusted Revenues: Subscription services $ 554,446 $ 559,434 $ 434,316 $ 440,815 Operating expenses: Sales and marketing 130,898 128,749 116,803 110,582 Operating income 150,792 157,929 107,968 120,688 Net income $ 141,966 $ 151,176 $ 68,804 $ 77,572 Net income per share attributable to Class A and Class B common stockholders: Basic $ 1.01 $ 1.08 $ 0.51 $ 0.57 Diluted $ 0.92 $ 0.98 $ 0.47 $ 0.53 Select consolidated balance sheet line items, which reflect the adoption of the new standard are as follows (in thousands): Fiscal Year Ended January 31, 2018 As Reported As Adjusted Assets Unbilled accounts receivable $ 9,063 $ 13,348 Deferred costs, net, noncurrent — 30,306 Deferred income taxes, non-current 3,490 2,222 Liabilities Deferred revenue $ 275,446 $ 266,939 Deferred income taxes, non-current 3,828 10,949 Stockholders’ equity: Retained earnings $ 354,850 $ 389,559 |
Summary of Business and Signi25
Summary of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Summary Of Business And Accounting Policies [Line Items] | |
Schedule of Certain Risks and Concentrations of Credit Risk | The following customers individually exceeded 10% of total accounts receivable as of the dates shown: January 31, January 31, 2018 2017 Customer 1 18% 15% Customer 2 13% 15% * Does not exceed 10%. |
Activity Related to Allowance for Doubtful Accounts | Activity related to our allowance for doubtful accounts was as follows (in thousands): Fiscal Year Ended January 31, 2018 2017 2016 Balance at beginning of period $ 659 $ 542 $ 413 Add: charges (credits) to costs and expenses (242 ) 130 201 Less: (write-offs) (72 ) (13 ) (72 ) Balance at end of period $ 345 $ 659 $ 542 |
Schedule of Estimated Useful Lives by Asset Classification | The estimated useful lives by asset classification are generally as follows: Asset Classification Estimated Useful Life Land Not depreciated Building 30 years Land and building improvements Shorter of remaining life of building or estimated useful life Equipment and computers 3 years Furniture and fixtures 5 years Leasehold improvements Shorter of remaining life of the lease term or estimated useful life |
Adoption of New Standard [Member] | |
Summary Of Business And Accounting Policies [Line Items] | |
Schedule of Consolidated Statements of Comprehensive Income | Select consolidated statements of comprehensive income line items, which reflect the adoption of the new standard are as follows (in thousands): Fiscal Year Ended January 31, 2018 2017 As Reported As Adjusted As Reported As Adjusted Revenues: Subscription services $ 554,446 $ 559,434 $ 434,316 $ 440,815 Operating expenses: Sales and marketing 130,898 128,749 116,803 110,582 Operating income 150,792 157,929 107,968 120,688 Net income $ 141,966 $ 151,176 $ 68,804 $ 77,572 Net income per share attributable to Class A and Class B common stockholders: Basic $ 1.01 $ 1.08 $ 0.51 $ 0.57 Diluted $ 0.92 $ 0.98 $ 0.47 $ 0.53 |
Schedule of Consolidated Balance Sheet | Select consolidated balance sheet line items, which reflect the adoption of the new standard are as follows (in thousands): Fiscal Year Ended January 31, 2018 As Reported As Adjusted Assets Unbilled accounts receivable $ 9,063 $ 13,348 Deferred costs, net, noncurrent — 30,306 Deferred income taxes, non-current 3,490 2,222 Liabilities Deferred revenue $ 275,446 $ 266,939 Deferred income taxes, non-current 3,828 10,949 Stockholders’ equity: Retained earnings $ 354,850 $ 389,559 |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Short-Term Investments | At January 31, 2018, 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 $ 67,875 $ — $ (424 ) $ 67,451 Commercial paper 19,926 — (12 ) 19,914 Corporate notes and bonds 160,499 1 (759 ) 159,741 Foreign government bonds 1,504 — (18 ) 1,486 Mortgage backed securities 11,555 — (75 ) 11,480 U.S. agency obligations 71,206 1 (76 ) 71,131 U.S. treasury securities 110,707 5 (136 ) 110,576 Total available-for-sale securities $ 443,272 $ 7 $ (1,500 ) $ 441,779 At January 31, 2017, 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 $ 20,729 $ 5 $ (16 ) $ 20,718 Commercial paper 20,567 4 (1 ) 20,570 Corporate notes and bonds 92,843 14 (101 ) 92,756 U.S. agency obligations 87,091 12 (51 ) 87,052 U.S. treasury securities 80,277 4 (111 ) 80,170 Total available-for-sale securities $ 301,507 $ 39 $ (280 ) $ 301,266 |
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): January 31, 2018 2017 Due in one year or less $ 308,172 $ 225,183 Due in greater than one year 133,607 76,083 Total $ 441,779 $ 301,266 |
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 January 31, 2018 (in thousands): Gross Fair unrealized value losses Asset-backed securities $ 65,690 $ (424 ) Commercial paper 19,914 (12 ) Corporate notes and bonds 155,419 (759 ) Foreign government bonds 1,485 (18 ) Mortgage backed securities 11,481 (75 ) U.S. agency obligations 66,655 (76 ) U.S. treasury securities 82,147 (136 ) 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, 2017 (in thousands): Gross Fair unrealized value losses Asset-backed securities $ 14,027 $ (16 ) Commercial paper 5,694 (1 ) Corporate notes and bonds 67,220 (101 ) U.S. agency obligations 40,549 (51 ) U.S. treasury securities 68,704 (111 ) |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
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): January 31, 2018 2017 Land $ 3,040 $ 3,040 Building 20,984 20,984 Land improvements and building improvements 20,073 14,731 Equipment and computers 7,732 7,197 Furniture and fixtures 9,619 7,322 Leasehold improvements 3,637 2,615 Construction in progress 36 2,889 65,121 58,778 Less accumulated depreciation (12,837 ) (8,871 ) Total property and equipment, net $ 52,284 $ 49,907 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Details of Intangible Assets | The following schedule presents the details of intangible assets as of January 31, 2018 (dollar amounts in thousands): January 31, 2018 Gross Remaining carrying Accumulated useful life amount amortization Net (in years) Existing technology $ 3,880 $ (3,509 ) $ 371 0.8 Database 4,939 (4,091 ) 848 2.0 Customer contracts and relationships 33,643 (8,798 ) 24,845 7.5 Software 10,867 (5,820 ) 5,047 2.2 Brand 1,141 (762 ) 379 1.2 $ 54,470 $ (22,980 ) $ 31,490 The following schedule presents the details of intangible assets as of January 31, 2017 (dollar amounts in thousands): January 31, 2017 Gross Remaining carrying Accumulated useful life amount amortization Net (in years) Existing technology $ 3,880 $ (2,733 ) $ 1,147 1.6 Database 4,939 (3,291 ) 1,648 2.5 Customer contracts and relationships 33,643 (5,245 ) 28,398 8.5 Software 10,867 (3,481 ) 7,386 3.2 Brand 1,141 (437 ) 704 2.2 $ 54,470 $ (15,187 ) $ 39,283 |
Estimated Amortization Expense | The estimated amortization expense for intangible assets for the next five years and thereafter is as follows as of January 31, 2018 (in thousands): Estimated amortization Period expense Fiscal 2019 $ 6,969 Fiscal 2020 6,062 Fiscal 2021 3,629 Fiscal 2022 3,182 Fiscal 2023 3,182 Thereafter 8,466 Total $ 31,490 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following as of the dates shown (in thousands): January 31, 2018 2017 Accrued commissions $ 3,565 $ 3,754 Accrued bonus 3,068 2,333 Deferred compensation associated with Zinc Ahead 467 333 Accrued vacation 2,608 1,866 Payroll tax payable 3,580 1,402 Accrued other compensation and benefits 3,766 2,319 Total accrued compensation and benefits $ 17,054 $ 12,007 Accrued fees payable to salesforce.com 4,929 4,520 Accrued third-party professional services subcontractors' fees 1,614 953 Taxes payable 3,009 2,663 Other accrued expenses 3,600 4,174 Total accrued expenses and other current liabilities $ 13,152 $ 12,310 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Hierarchy for Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the fair value hierarchy for financial assets measured at fair value on a recurring basis as of January 31, 2018 (in thousands): Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 25,820 $ — $ — $ 25,820 Commercial paper — 1,999 — 1,999 Corporate notes and bonds — 2,080 — 2,080 U.S. treasury securities — 8,000 — 8,000 Short-term investments: Asset-backed securities — 67,451 — 67,451 Commercial paper — 19,914 — 19,914 Corporate notes and bonds — 159,741 — 159,741 Foreign government bonds — 1,486 — 1,486 Mortgage backed securities — 11,480 — 11,480 U.S. agency obligations — 71,131 — 71,131 U.S. treasury securities — 110,576 — 110,576 Foreign currency derivative contracts — 127 — 127 Total $ 25,820 $ 453,985 $ — $ 479,805 Liabilities Foreign currency derivative contracts — 391 — 391 Total $ — $ 391 $ — $ 391 The following table presents the fair value hierarchy for financial assets measured at fair value on a recurring basis as of January 31, 2017 (in thousands): Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 20,174 $ — $ — $ 20,174 Corporate notes and bonds — — — — U.S. agency obligations — 5,450 — 5,450 Short-term investments: Asset-backed securities — 20,718 — 20,718 Commercial paper — 20,570 — 20,570 Corporate notes and bonds — 92,756 — 92,756 U.S. agency obligations — 87,052 — 87,052 U.S. treasury securities — 80,170 — 80,170 Total $ 20,174 $ 306,716 $ — $ 326,890 |
Summary of Outstanding Balance Sheet Hedges | Details on outstanding balance sheet hedges are presented below as of the date shown below (in thousands): January 31, 2018 Derivative Assets Balance Sheet Location Derivatives not designated as hedging instruments: Foreign currency derivative contracts Prepaid expenses and other current assets $ 127 Derivative Liabilities Derivatives not designated as hedging instruments: Foreign currency derivative contracts Accrued expenses $ 391 |
Summary Fair Value of Outstanding Derivative Instruments | The Fair value of our outstanding derivative instruments is summarized below (in thousands): January 31, 2018 Notional amount of foreign currency derivative contracts $ 36,266 Fair value of foreign currency derivative contracts 36,531 |
Other Income, Net (Tables)
Other Income, Net (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Other Income And Expenses [Abstract] | |
Other Income, Net | Other income, net consisted of the following (in thousands): Fiscal Year Ended January 31, 2018 2017 2016 Foreign currency gain (loss) $ 1,177 $ (1,009 ) $ (1,785 ) Amortization of investment premiums (1,718 ) (1,801 ) (2,804 ) Interest income 8,383 4,477 4,617 Other income, net $ 7,842 $ 1,667 $ 28 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Income before Income Taxes | The components of income before income taxes by U.S. and foreign jurisdictions were as follows for the periods shown (in thousands): Fiscal Year Ended January 31, 2018 2017 2016 United States $ 133,035 $ 97,981 $ 82,331 Foreign 25,599 11,654 (3,714 ) Total $ 158,634 $ 109,635 $ 78,617 |
Components of Provision for Income Taxes | Provision for income taxes consisted of the following for the periods shown (in thousands): Fiscal Year Ended January 31, 2018 2017 2016 Current provision: Federal $ 5,315 $ 36,004 $ 26,919 State 209 4,924 2,897 Foreign 8,022 4,976 826 Total $ 13,546 $ 45,904 $ 30,642 Deferred provision: Federal 3,884 (2,395 ) (4,573 ) State 304 (338 ) (209 ) Foreign (1,066 ) (2,340 ) (1,703 ) Total $ 3,122 $ (5,073 ) $ (6,485 ) Provision for income taxes $ 16,668 $ 40,831 $ 24,157 |
Reconciliation of Statutory Federal Income Tax to Effective Tax | Provision for income taxes differed from the amount computed by applying the federal statutory income tax rate of 33.8%, to income before income taxes as a result of the following for the periods shown (in thousands): Fiscal Year Ended January 31, 2018 2017 2016 Federal tax statutory tax rate $ 53,629 $ 38,371 $ 27,489 State taxes 3,919 3,883 2,034 Nondeductible expenses (462 ) (367 ) 794 Research and development credit (9,409 ) (6,739 ) (4,353 ) Domestic manufacturing deduction (1,096 ) (1,678 ) (1,712 ) Stock-based compensation (37,347 ) 4,338 3,331 Foreign rate differential (2,207 ) 1,042 (5,104 ) Valuation allowance 4,010 1,630 5,655 Impact of foreign operations 4,842 1,891 — Tax election benefit — — (2,865 ) Others 789 (1,540 ) (1,112 ) Provision for income taxes $ 16,668 $ 40,831 $ 24,157 |
Components of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of our deferred tax assets and liabilities related to the following (in thousands): January 31, 2018 2017 Deferred Tax Assets: Accruals and reserves $ 8,444 $ 11,022 Net operating loss carryforward 2,002 1,753 State income taxes 236 1,612 Tax credit carryforward 10,196 11,479 Other 30 264 Gross Deferred Tax Assets $ 20,908 $ 26,130 Valuation Allowance (10,329 ) (9,670 ) Total Deferred Tax Assets $ 10,579 $ 16,460 Deferred Tax Liabilities: Property and equipment $ (633 ) $ (906 ) Intangible assets (8,078 ) (11,678 ) Expensed internal-use software (595 ) (390 ) Other (1,611 ) — Total Deferred Tax Liabilities $ (10,917 ) $ (12,974 ) Net Deferred Tax Assets $ (338 ) $ 3,486 |
Summary of Changes in Total Gross Amount of Unrecognized Tax Benefits | The aggregate changes in our total gross amount of unrecognized tax benefits are summarized as follows for the periods shown (in thousands) Fiscal Year Ended January 31, 2018 2017 2016 Beginning balance $ 7,868 $ 5,248 $ 3,247 Increases related to tax positions taken during the prior period 189 24 160 Increases related to tax positions taken during the current period 4,032 2,888 2,185 Lapse of statute of limitations (691 ) (292 ) (344 ) Ending balance $ 11,398 $ 7,868 $ 5,248 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Summary of Stock Option Activity | A summary of stock option activity for fiscal year ended January 31, 2018 is presented below Weighted Weighted average average remaining Aggregate Number exercise contractual intrinsic of shares price term (in years) value Options outstanding at January 31, 2017 16,282,343 $ 7.48 6.3 $ 567,491,532 Options granted 2,879,635 59.97 Options exercised (2,935,962 ) 7.22 Options forfeited/cancelled (201,870 ) 22.84 Options outstanding at January 31, 2018 16,024,146 $ 16.76 6.1 $ 738,648,507 Options vested and exercisable at January 31, 2018 6,319,293 $ 5.47 4.9 $ 362,644,996 Options vested and exercisable at January 31, 2018 and expected to vest thereafter 16,024,146 $ 16.76 6.1 $ 738,648,507 |
Summary of RSU Activity | A summary of RSU activity for fiscal year ended January 31, 2018 is presented below: Weighted Unreleased average restricted grant date stock units fair value Balance at January 31, 2017 3,362,650 $ 29.33 RSUs granted 1,201,849 53.97 RSUs vested (1,247,103 ) 31.52 RSUs forfeited/cancelled (415,660 ) 32.54 Balance at January 31, 2018 2,901,736 $ 38.14 |
Schedule of Weighted-Average Assumptions Used to Estimate Grant Date Fair Value of Options Granted | The following table presents the weighted-average assumptions used to estimate the grant date fair value of options granted during the periods presented: Fiscal Year Ended January 31, 2018 2017 2016 Volatility 42% – 44% 45% – 46% 45% – 46% Expected term (in years) 6.35 6.31 – 7.56 5.50 – 6.32 Risk-free interest rate 1.86% – 2.21% 1.48% – 2.10% 1.69% – 1.84% Dividend yield 0% 0% 0 |
Schedule of Weighted-Average Assumptions Used to Calculate Out Stock-Based Compensation for Stock Purchase under ESPP | The following table presents the weighted-average assumptions used to calculate our stock-based compensation for the stock purchases under the ESPP: Volatility 44 % Expected term (in years) 0.58 Risk-free interest rate 0.10 % Dividend yield 0 % |
CEO [Member] | |
Schedule of Weighted-Average Assumptions Used to Estimate Grant Date Fair Value of Options Granted | The following table provides the assumptions used in the Monte Carlo simulation for each tranche granted: Volatility 41 % Expected term (in years) 10.00 Risk-free interest rate 2.53 % Dividend yield 0 % |
Net Income per Share Attribut34
Net Income per Share Attributable to Common Stockholders (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
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): For the fiscal year ended January 31, 2018 2017 2016 Class A Class B Class A Class B Class A Class B Basic Numerator Net income $ 113,818 $ 28,148 $ 49,799 $ 19,005 $ 31,453 $ 23,007 Undistributed earnings allocated to participating securities — — (2 ) (1 ) (27 ) (20 ) Net income attributable to common stockholders, basic $ 113,818 $ 28,148 $ 49,797 $ 19,004 $ 31,426 $ 22,987 Denominator Weighted average shares used in computing net income per share attributable to common stockholders, basic 112,491 27,820 98,216 37,482 76,246 55,774 Net income per share attributable to common stockholders, basic $ 1.01 $ 1.01 $ 0.51 $ 0.51 $ 0.41 $ 0.41 Diluted Numerator Net income attributable to common stockholders, basic $ 113,818 $ 28,148 $ 49,797 $ 19,004 $ 31,426 $ 22,987 Reallocation as a result of conversion of Class B to Class A common stock: Net income attributable to common stockholders, basic 28,148 — 19,004 — 22,987 — Reallocation of net income to Class B common stock — 9,902 — 4,009 — 2,808 Net income attributable to common stockholders, diluted $ 141,966 $ 38,050 $ 68,801 $ 23,013 $ 54,413 $ 25,795 Denominator Number of shares used for basic EPS computation 112,491 27,820 98,216 37,482 76,246 55,774 Conversion of Class B to Class A common stock 27,820 — 37,482 — 55,774 — Effect of potentially dilutive common shares 13,370 13,370 11,880 11,880 12,957 12,957 Weighted average shares used in computing net income per share attributable to common stockholders, diluted 153,681 41,190 147,578 49,362 144,977 68,731 Net income per share attributable to common stockholders, diluted $ 0.92 $ 0.92 $ 0.47 $ 0.47 $ 0.38 $ 0.38 |
Potential Common Share Equivalents Excluded where the Inclusion would be Anti-dilutive | Potential common share equivalents excluded where the inclusion would be anti-dilutive are as follows: Fiscal Year Ended January 31, 2018 2017 2016 Options and awards to purchase shares not included in the computation of diluted net income per share because their inclusion would be anti-dilutive 833,691 2,040,238 886,472 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments Under Non-cancelable Operating Leases | Future minimum lease payments under non-cancelable operating leases as of January 31, 2018 are as follows (in thousands): Operating Period leases Fiscal 2019 $ 4,955 Fiscal 2020 4,138 Fiscal 2021 3,171 Fiscal 2022 2,513 Fiscal 2023 1,362 Thereafter 1,348 Total $ 17,487 |
Information about Geographic 36
Information about Geographic Areas (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Segment Reporting [Abstract] | |
Revenues by Geographic Area | Revenues by geographic area, which is primarily measured by the estimated location of the end users for subscription services revenues and the estimated location of the resources performing the services for professional services, were as follows for the periods shown below (in thousands): Fiscal Year Ended January 31, 2018 2017 2016 Revenues by geography North America $ 376,538 $ 297,014 $ 225,483 Europe and other 202,411 160,666 111,923 Asia Pacific 106,622 86,363 71,815 Total revenues $ 685,571 $ 544,043 $ 409,221 |
Long-Lived Assets by Geographic Area | Long-lived assets by geographic area are as follows as of the periods shown (in thousands): January 31, 2018 2017 2016 Long-lived assets by geography North America $ 49,214 $ 47,096 $ 45,163 Europe and other 1,840 1,762 1,827 Asia Pacific 1,230 1,049 479 Total long-lived assets $ 52,284 $ 49,907 $ 47,469 |
Selected Quarterly Financial 37
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Information | Selected summarized quarterly financial information for fiscal years ended January 31, 2018 and 2017 is as follows (in thousands): Three Months Ended Jan. 31, 2018 Oct. 31, 2017 Jul. 31, 2017 Apr. 30, 2017 Jan. 31, 2017 Oct. 31, 2016 Jul. 31, 2016 Apr. 30, 2016 (in thousands) Consolidated Statements of Income Data: Total revenues $ 184,919 $ 176,149 $ 166,585 $ 157,918 $ 150,153 $ 142,779 $ 131,347 $ 119,764 Gross profit 126,002 122,913 116,181 109,036 103,683 98,854 89,152 78,673 Operating income 34,887 41,668 36,898 37,339 32,530 33,810 23,822 17,806 Net income $ 33,706 $ 34,393 $ 37,844 $ 36,023 $ 21,707 $ 21,630 $ 12,958 $ 12,509 Net income per share attributable to Class A and Class B common stockholders: Basic $ 0.24 $ 0.24 $ 0.27 $ 0.26 $ 0.16 $ 0.16 $ 0.10 $ 0.09 Diluted $ 0.22 $ 0.22 $ 0.25 $ 0.24 $ 0.15 $ 0.15 $ 0.09 $ 0.09 |
Summary of Business and Signi38
Summary of Business and Significant Accounting Policies - Additional Information (Detail) | Feb. 01, 2017USD ($) | Jan. 31, 2018USD ($) | Jan. 31, 2018USD ($)SegmentCustomer | Jan. 31, 2017USD ($)Customer | Jan. 31, 2016USD ($)Customer |
Summary Of Business And Accounting Policies [Line Items] | |||||
Number of operating segment | Segment | 1 | ||||
Highly liquid investments maturity | 3 months | ||||
Impairment of goodwill | $ 0 | ||||
Impairment recognized for long-lived assets | 0 | $ 0 | $ 0 | ||
Sales commission expense | 21,900,000 | 22,000,000 | 16,400,000 | ||
Advertising expense | 400,000 | $ 200,000 | $ 200,000 | ||
Accounting Standards Update 2016-09 [Member] | |||||
Summary Of Business And Accounting Policies [Line Items] | |||||
Net cumulative-effect adjustment on retained earnings | $ 700,000 | ||||
Accounting Standards Update 2016-09 [Member] | Effect on Provision for Income Taxes [Member] | |||||
Summary Of Business And Accounting Policies [Line Items] | |||||
Recognition of excess tax benefits | $ 8,600,000 | $ 45,800,000 | |||
2013 Employee Stock Purchase Plan [Member] | |||||
Summary Of Business And Accounting Policies [Line Items] | |||||
Recognition period of stock-based compensation expenses on straight-line basis | 7 months | ||||
Internal-Use Software [Member] | |||||
Summary Of Business And Accounting Policies [Line Items] | |||||
Useful Lives of Intangible Assets | 3 years | ||||
Customer concentration risk [Member] | |||||
Summary Of Business And Accounting Policies [Line Items] | |||||
Sales percentage from largest customers | 42.00% | 45.00% | 50.00% | ||
Customer concentration risk [Member] | Revenues [Member] | |||||
Summary Of Business And Accounting Policies [Line Items] | |||||
Number of customers | Customer | 0 | 0 | 0 | ||
Minimum [Member] | |||||
Summary Of Business And Accounting Policies [Line Items] | |||||
Customer payment period | 30 days | ||||
Minimum [Member] | 2007 Stock Plan [Member] | |||||
Summary Of Business And Accounting Policies [Line Items] | |||||
Share-based compensation cost recognition vesting service period | 4 years | ||||
Maximum [Member] | |||||
Summary Of Business And Accounting Policies [Line Items] | |||||
Customer payment period | 60 days | ||||
Maximum [Member] | 2007 Stock Plan [Member] | |||||
Summary Of Business And Accounting Policies [Line Items] | |||||
Share-based compensation cost recognition vesting service period | 9 years |
Summary of Business and Signi39
Summary of Business and Significant Accounting Policies - Schedule of Certain Risks and Concentrations of Credit Risk (Detail) - Customer concentration risk [Member] - Accounts receivable [Member] | 12 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | |
Customer 1 [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 18.00% | 15.00% |
Customer 2 [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 13.00% | 15.00% |
Summary of Business and Signi40
Summary of Business and Significant Accounting Policies - Activity Related to Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Receivables [Abstract] | |||
Balance at beginning of period | $ 659 | $ 542 | $ 413 |
Add: charges (credits) to costs and expenses | (242) | 130 | 201 |
Less: (write-offs) | (72) | (13) | (72) |
Balance at end of period | $ 345 | $ 659 | $ 542 |
Summary of Business and Signi41
Summary of Business and Significant Accounting Policies - Schedule of Estimated Useful Lives by Asset Classification (Detail) | 12 Months Ended |
Jan. 31, 2018 | |
Land [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life description | Not depreciated |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 30 years |
Land and building improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life description | Shorter of remaining life of building or estimated useful life |
Equipment and computers [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Furniture and fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life description | Shorter of remaining life of the lease term or estimated useful life |
Summary of Business and Signi42
Summary of Business and Significant Accounting Policies - Schedule of Consolidated Statements of Comprehensive Income (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | ||
Revenues: | ||||||||||||
Subscription services | $ 554,446 | $ 434,316 | $ 316,314 | |||||||||
Operating expenses: | ||||||||||||
Sales and marketing | [1] | 130,898 | 116,803 | 80,984 | ||||||||
Operating income | $ 34,887 | $ 41,668 | $ 36,898 | $ 37,339 | $ 32,530 | $ 33,810 | $ 23,822 | $ 17,806 | 150,792 | 107,968 | 78,589 | |
Net income | $ 33,706 | $ 34,393 | $ 37,844 | $ 36,023 | $ 21,707 | $ 21,630 | $ 12,958 | $ 12,509 | $ 141,966 | $ 68,804 | $ 54,460 | |
Net income per share attributable to Class A and Class B common stockholders: | ||||||||||||
Basic | $ 0.24 | $ 0.24 | $ 0.27 | $ 0.26 | $ 0.16 | $ 0.16 | $ 0.10 | $ 0.09 | $ 1.01 | $ 0.51 | $ 0.41 | |
Diluted | $ 0.22 | $ 0.22 | $ 0.25 | $ 0.24 | $ 0.15 | $ 0.15 | $ 0.09 | $ 0.09 | $ 0.92 | $ 0.47 | $ 0.38 | |
Adoption of New Standard [Member] | ||||||||||||
Revenues: | ||||||||||||
Subscription services | $ 554,446 | $ 434,316 | ||||||||||
Operating expenses: | ||||||||||||
Sales and marketing | 130,898 | 116,803 | ||||||||||
Operating income | 150,792 | 107,968 | ||||||||||
Net income | $ 141,966 | $ 68,804 | ||||||||||
Net income per share attributable to Class A and Class B common stockholders: | ||||||||||||
Basic | $ 1.01 | $ 0.51 | ||||||||||
Diluted | $ 0.92 | $ 0.47 | ||||||||||
Adoption of New Standard [Member] | As Adjusted [Member] | ||||||||||||
Revenues: | ||||||||||||
Subscription services | $ 559,434 | $ 440,815 | ||||||||||
Operating expenses: | ||||||||||||
Sales and marketing | 128,749 | 110,582 | ||||||||||
Operating income | 157,929 | 120,688 | ||||||||||
Net income | $ 151,176 | $ 77,572 | ||||||||||
Net income per share attributable to Class A and Class B common stockholders: | ||||||||||||
Basic | $ 1.08 | $ 0.57 | ||||||||||
Diluted | $ 0.98 | $ 0.53 | ||||||||||
[1] | Includes stock-based compensation as follows: Cost of revenues: Cost of subscription services $1,448 $1,109 $563 Cost of professional services and other 8,476 6,002 3,858 Research and development 17,782 11,937 7,249 Sales and marketing 16,288 13,271 6,861 General and administrative 10,055 8,479 5,727 Total stock-based compensation $54,049 $40,798 $24,258 |
Summary of Business and Signi43
Summary of Business and Significant Accounting Policies - Schedule of Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Jan. 31, 2018 | Jan. 31, 2017 |
Assets | ||
Deferred income taxes, noncurrent | $ 3,490 | $ 16,460 |
Liabilities | ||
Deferred revenue | 275,446 | 213,562 |
Deferred income taxes, noncurrent | 3,828 | 12,974 |
Stockholders’ equity: | ||
Retained earnings | 354,850 | $ 212,884 |
Adoption of New Standard [Member] | ||
Assets | ||
Unbilled accounts receivable | 9,063 | |
Deferred income taxes, noncurrent | 3,490 | |
Liabilities | ||
Deferred revenue | 275,446 | |
Deferred income taxes, noncurrent | 3,828 | |
Stockholders’ equity: | ||
Retained earnings | 354,850 | |
Adoption of New Standard [Member] | As Adjusted [Member] | ||
Assets | ||
Unbilled accounts receivable | 13,348 | |
Deferred costs, net, noncurrent | 30,306 | |
Deferred income taxes, noncurrent | 2,222 | |
Liabilities | ||
Deferred revenue | 266,939 | |
Deferred income taxes, noncurrent | 10,949 | |
Stockholders’ equity: | ||
Retained earnings | $ 389,559 |
Short-Term Investments - Schedu
Short-Term Investments - Schedule of Short-Term Investments (Detail) - USD ($) $ in Thousands | Jan. 31, 2018 | Jan. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Amortized cost | $ 443,272 | $ 301,507 |
Available-for-sale securities, Gross unrealized gains | 7 | 39 |
Available-for-sale securities, Gross unrealized losses | (1,500) | (280) |
Available-for-sale securities, Estimated fair value | 441,779 | 301,266 |
Asset-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Amortized cost | 67,875 | 20,729 |
Available-for-sale securities, Gross unrealized gains | 5 | |
Available-for-sale securities, Gross unrealized losses | (424) | (16) |
Available-for-sale securities, Estimated fair value | 67,451 | 20,718 |
Commercial paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Amortized cost | 19,926 | 20,567 |
Available-for-sale securities, Gross unrealized gains | 4 | |
Available-for-sale securities, Gross unrealized losses | (12) | (1) |
Available-for-sale securities, Estimated fair value | 19,914 | 20,570 |
Corporate notes and bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Amortized cost | 160,499 | 92,843 |
Available-for-sale securities, Gross unrealized gains | 1 | 14 |
Available-for-sale securities, Gross unrealized losses | (759) | (101) |
Available-for-sale securities, Estimated fair value | 159,741 | 92,756 |
Foreign government bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Amortized cost | 1,504 | |
Available-for-sale securities, Gross unrealized losses | (18) | |
Available-for-sale securities, Estimated fair value | 1,486 | |
Mortgage backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Amortized cost | 11,555 | |
Available-for-sale securities, Gross unrealized losses | (75) | |
Available-for-sale securities, Estimated fair value | 11,480 | |
U.S. agency obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Amortized cost | 71,206 | 87,091 |
Available-for-sale securities, Gross unrealized gains | 1 | 12 |
Available-for-sale securities, Gross unrealized losses | (76) | (51) |
Available-for-sale securities, Estimated fair value | 71,131 | 87,052 |
U.S. treasury securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Amortized cost | 110,707 | 80,277 |
Available-for-sale securities, Gross unrealized gains | 5 | 4 |
Available-for-sale securities, Gross unrealized losses | (136) | (111) |
Available-for-sale securities, Estimated fair value | $ 110,576 | $ 80,170 |
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 | Jan. 31, 2018 | Jan. 31, 2017 |
Investments Debt And Equity Securities [Abstract] | ||
Due in one year or less | $ 308,172 | $ 225,183 |
Due in greater than one year | 133,607 | 76,083 |
Total | $ 441,779 | $ 301,266 |
Short-Term Investments - Additi
Short-Term Investments - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | |
Investments Debt And Equity Securities [Abstract] | ||
Other-than-temporary impairment losses on investments | $ 0 | $ 0 |
Short-Term Investments - Sche47
Short-Term Investments - Schedule of Fair Values and Gross Unrealized Losses of Available-for-Sale Securities Aggregated by Investment Category (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | |
Asset-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value | $ 65,690 | $ 14,027 |
Gross unrealized losses | (424) | (16) |
Commercial paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value | 19,914 | 5,694 |
Gross unrealized losses | (12) | (1) |
Corporate notes and bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value | 155,419 | 67,220 |
Gross unrealized losses | (759) | (101) |
Foreign government bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value | 1,485 | |
Gross unrealized losses | (18) | |
Mortgage backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value | 11,481 | |
Gross unrealized losses | (75) | |
U.S. agency obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value | 66,655 | 40,549 |
Gross unrealized losses | (76) | (51) |
U.S. treasury securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value | 82,147 | 68,704 |
Gross unrealized losses | $ (136) | $ (111) |
Property and Equipment, Net - C
Property and Equipment, Net - Components of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 65,121 | $ 58,778 | |
Less accumulated depreciation | (12,837) | (8,871) | |
Total property and equipment, net | 52,284 | 49,907 | $ 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 | 20,073 | 14,731 | |
Equipment and computers [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 7,732 | 7,197 | |
Furniture and fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 9,619 | 7,322 | |
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 3,637 | 2,615 | |
Construction in progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 36 | $ 2,889 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Property Plant And Equipment [Abstract] | |||
Depreciation | $ 5.9 | $ 4.9 | $ 3.1 |
Intangible Assets and Goodwil50
Intangible Assets and Goodwill - Details of Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross carrying amount | $ 54,470 | $ 54,470 |
Intangible assets, Accumulated amortization | (22,980) | (15,187) |
Intangible assets, Net | 31,490 | 39,283 |
Existing technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross carrying amount | 3,880 | 3,880 |
Intangible assets, Accumulated amortization | (3,509) | (2,733) |
Intangible assets, Net | $ 371 | $ 1,147 |
Intangible assets, Remaining useful life | 9 months 18 days | 1 year 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 | (4,091) | (3,291) |
Intangible assets, Net | $ 848 | $ 1,648 |
Intangible assets, Remaining useful life | 2 years | 2 years 6 months |
Customer contracts and relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross carrying amount | $ 33,643 | $ 33,643 |
Intangible assets, Accumulated amortization | (8,798) | (5,245) |
Intangible assets, Net | $ 24,845 | $ 28,398 |
Intangible assets, Remaining useful life | 7 years 6 months | 8 years 6 months |
Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross carrying amount | $ 10,867 | $ 10,867 |
Intangible assets, Accumulated amortization | (5,820) | (3,481) |
Intangible assets, Net | $ 5,047 | $ 7,386 |
Intangible assets, Remaining useful life | 2 years 2 months 12 days | 3 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 | (762) | (437) |
Intangible assets, Net | $ 379 | $ 704 |
Intangible assets, Remaining useful life | 1 year 2 months 12 days | 2 years 2 months 12 days |
Intangible Assets and Goodwil51
Intangible Assets and Goodwill - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 7.8 | $ 8.2 | $ 4.3 |
Intangible Assets and Goodwil52
Intangible Assets and Goodwill - Estimated Amortization Expense (Detail) - USD ($) $ in Thousands | Jan. 31, 2018 | Jan. 31, 2017 |
Finite Lived Intangible Assets Future Amortization Expense Current And Five Succeeding Fiscal Years [Abstract] | ||
Fiscal 2,019 | $ 6,969 | |
Fiscal 2,020 | 6,062 | |
Fiscal 2,021 | 3,629 | |
Fiscal 2,022 | 3,182 | |
Fiscal 2,023 | 3,182 | |
Thereafter | 8,466 | |
Intangible assets, Net | $ 31,490 | $ 39,283 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands | Jan. 31, 2018 | Jan. 31, 2017 |
Payables And Accruals [Abstract] | ||
Accrued commissions | $ 3,565 | $ 3,754 |
Accrued bonus | 3,068 | 2,333 |
Deferred compensation associated with Zinc Ahead | 467 | 333 |
Accrued vacation | 2,608 | 1,866 |
Payroll tax payable | 3,580 | 1,402 |
Accrued other compensation and benefits | 3,766 | 2,319 |
Total accrued compensation and benefits | 17,054 | 12,007 |
Accrued fees payable to salesforce.com | 4,929 | 4,520 |
Accrued third-party professional services subcontractors' fees | 1,614 | 953 |
Taxes payable | 3,009 | 2,663 |
Other accrued expenses | 3,600 | 4,174 |
Total accrued expenses and other current liabilities | $ 13,152 | $ 12,310 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Hierarchy for Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jan. 31, 2018 | Jan. 31, 2017 |
Assets | ||
Short-term investments | $ 441,779 | $ 301,266 |
Commercial paper [Member] | ||
Assets | ||
Short-term investments | 19,914 | 20,570 |
Corporate notes and bonds [Member] | ||
Assets | ||
Short-term investments | 159,741 | 92,756 |
U.S. treasury securities [Member] | ||
Assets | ||
Short-term investments | 110,576 | 80,170 |
U.S. agency obligations [Member] | ||
Assets | ||
Short-term investments | 71,131 | 87,052 |
Asset-backed securities [Member] | ||
Assets | ||
Short-term investments | 67,451 | 20,718 |
Foreign government bonds [Member] | ||
Assets | ||
Short-term investments | 1,486 | |
Mortgage backed securities [Member] | ||
Assets | ||
Short-term investments | 11,480 | |
Fair value, measurements recurring [Member] | ||
Assets | ||
Total | 479,805 | 326,890 |
Liabilities | ||
Total | 391 | |
Fair value, measurements recurring [Member] | Money market funds [Member] | ||
Assets | ||
Cash equivalents | 25,820 | 20,174 |
Fair value, measurements recurring [Member] | Commercial paper [Member] | ||
Assets | ||
Cash equivalents | 1,999 | |
Short-term investments | 19,914 | 20,570 |
Fair value, measurements recurring [Member] | Corporate notes and bonds [Member] | ||
Assets | ||
Cash equivalents | 2,080 | |
Short-term investments | 159,741 | 92,756 |
Fair value, measurements recurring [Member] | U.S. treasury securities [Member] | ||
Assets | ||
Cash equivalents | 8,000 | |
Short-term investments | 110,576 | 80,170 |
Fair value, measurements recurring [Member] | U.S. agency obligations [Member] | ||
Assets | ||
Cash equivalents | 5,450 | |
Short-term investments | 71,131 | 87,052 |
Fair value, measurements recurring [Member] | Asset-backed securities [Member] | ||
Assets | ||
Short-term investments | 67,451 | 20,718 |
Fair value, measurements recurring [Member] | Foreign government bonds [Member] | ||
Assets | ||
Short-term investments | 1,486 | |
Fair value, measurements recurring [Member] | Mortgage backed securities [Member] | ||
Assets | ||
Short-term investments | 11,480 | |
Fair value, measurements recurring [Member] | Foreign currency derivative contracts [Member] | ||
Assets | ||
Foreign currency derivative contracts | 127 | |
Liabilities | ||
Foreign currency derivative contracts | 391 | |
Fair value, measurements recurring [Member] | Level 1 [Member] | ||
Assets | ||
Total | 25,820 | 20,174 |
Fair value, measurements recurring [Member] | Level 1 [Member] | Money market funds [Member] | ||
Assets | ||
Cash equivalents | 25,820 | 20,174 |
Fair value, measurements recurring [Member] | Level 2 [Member] | ||
Assets | ||
Total | 453,985 | 306,716 |
Liabilities | ||
Total | 391 | |
Fair value, measurements recurring [Member] | Level 2 [Member] | Commercial paper [Member] | ||
Assets | ||
Cash equivalents | 1,999 | |
Short-term investments | 19,914 | 20,570 |
Fair value, measurements recurring [Member] | Level 2 [Member] | Corporate notes and bonds [Member] | ||
Assets | ||
Cash equivalents | 2,080 | |
Short-term investments | 159,741 | 92,756 |
Fair value, measurements recurring [Member] | Level 2 [Member] | U.S. treasury securities [Member] | ||
Assets | ||
Cash equivalents | 8,000 | |
Short-term investments | 110,576 | 80,170 |
Fair value, measurements recurring [Member] | Level 2 [Member] | U.S. agency obligations [Member] | ||
Assets | ||
Cash equivalents | 5,450 | |
Short-term investments | 71,131 | 87,052 |
Fair value, measurements recurring [Member] | Level 2 [Member] | Asset-backed securities [Member] | ||
Assets | ||
Short-term investments | 67,451 | $ 20,718 |
Fair value, measurements recurring [Member] | Level 2 [Member] | Foreign government bonds [Member] | ||
Assets | ||
Short-term investments | 1,486 | |
Fair value, measurements recurring [Member] | Level 2 [Member] | Mortgage backed securities [Member] | ||
Assets | ||
Short-term investments | 11,480 | |
Fair value, measurements recurring [Member] | Level 2 [Member] | Foreign currency derivative contracts [Member] | ||
Assets | ||
Foreign currency derivative contracts | 127 | |
Liabilities | ||
Foreign currency derivative contracts | $ 391 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) $ in Millions | 12 Months Ended |
Jan. 31, 2018USD ($) | |
Foreign currency forward contracts [Member] | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | |
Foreign currency gains recognized | $ 4.3 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Outstanding Balance Sheet Hedges (Detail) - Foreign currency derivative contracts [Member] - Derivatives not designated as hedging instruments [Member] $ in Thousands | Jan. 31, 2018USD ($) |
Prepaid expenses and other current assets [Member] | |
Derivatives Fair Value [Line Items] | |
Derivative Assets | $ 127 |
Accrued expenses [Member] | |
Derivatives Fair Value [Line Items] | |
Derivative Liabilities | $ 391 |
Fair Value Measurements - Sum57
Fair Value Measurements - Summary Fair Value of Outstanding Derivative Instruments (Detail) - Foreign currency forward contracts [Member] | Jan. 31, 2018USD ($) |
Derivatives Fair Value [Line Items] | |
Notional amount of foreign currency derivative contracts | $ 36,266,000 |
Fair value of foreign currency derivative contracts | $ 36,531,000 |
Other Income, Net - Other Incom
Other Income, Net - Other Income, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Other Income And Expenses [Abstract] | |||
Foreign currency gain (loss) | $ 1,177 | $ (1,009) | $ (1,785) |
Amortization of investment premiums | (1,718) | (1,801) | (2,804) |
Interest income | 8,383 | 4,477 | 4,617 |
Other income, net | $ 7,842 | $ 1,667 | $ 28 |
Income Taxes - Components of In
Income Taxes - Components of Income before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 133,035 | $ 97,981 | $ 82,331 |
Foreign | 25,599 | 11,654 | (3,714) |
Income before income taxes | $ 158,634 | $ 109,635 | $ 78,617 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Current provision: | |||
Federal | $ 5,315 | $ 36,004 | $ 26,919 |
State | 209 | 4,924 | 2,897 |
Foreign | 8,022 | 4,976 | 826 |
Total | 13,546 | 45,904 | 30,642 |
Deferred provision: | |||
Federal | 3,884 | (2,395) | (4,573) |
State | 304 | (338) | (209) |
Foreign | (1,066) | (2,340) | (1,703) |
Total | 3,122 | (5,073) | (6,485) |
Provision for income taxes | $ 16,668 | $ 40,831 | $ 24,157 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Income Tax Contingency [Line Items] | |||||
Federal statutory income tax rate | 33.80% | 33.80% | 33.80% | ||
Net operating loss carryforwards for federal | $ 0 | ||||
Net operating loss carryforwards for state | $ 4,100,000 | ||||
Federal net operating loss expire year | 2,033 | ||||
State net operating loss expire year | 2,033 | ||||
Percentage of likely of being realized upon the effective settlement | 50.00% | ||||
Gross unrecognized tax benefits | $ 11,398,000 | $ 7,868,000 | $ 5,248,000 | $ 3,247,000 | |
Unrecognized tax benefits, that would impact tax rate if recognized | $ 5,900,000 | ||||
California [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Open tax years | 2,014 | ||||
Federal [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Open tax years | 2,015 | ||||
Other states [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Open tax years | 2,014 | ||||
Foreign Jurisdictions [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Open tax years | 2,013 | ||||
Maximum [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Federal statutory income tax rate | 35.00% | ||||
Scenario Plan [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Federal statutory income tax rate | 21.00% | ||||
California research and development [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Research and development tax credits | $ 15,900,000 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Federal Income Tax to Effective Tax (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Federal tax statutory tax rate | $ 53,629 | $ 38,371 | $ 27,489 |
State taxes | 3,919 | 3,883 | 2,034 |
Nondeductible expenses | (462) | (367) | 794 |
Research and development credit | (9,409) | (6,739) | (4,353) |
Domestic manufacturing deduction | (1,096) | (1,678) | (1,712) |
Stock-based compensation | (37,347) | 4,338 | 3,331 |
Foreign rate differential | (2,207) | 1,042 | (5,104) |
Valuation allowance | 4,010 | 1,630 | 5,655 |
Impact of foreign operations | 4,842 | 1,891 | |
Tax election benefit | (2,865) | ||
Others | 789 | (1,540) | (1,112) |
Provision for income taxes | $ 16,668 | $ 40,831 | $ 24,157 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Jan. 31, 2018 | Jan. 31, 2017 |
Deferred Tax Assets: | ||
Accruals and reserves | $ 8,444 | $ 11,022 |
Net operating loss carryforward | 2,002 | 1,753 |
State income taxes | 236 | 1,612 |
Tax credit carryforward | 10,196 | 11,479 |
Other | 30 | 264 |
Gross Deferred Tax Assets | 20,908 | 26,130 |
Valuation Allowance | (10,329) | (9,670) |
Total Deferred Tax Assets | 10,579 | 16,460 |
Deferred Tax Liabilities: | ||
Property and equipment | (633) | (906) |
Intangible assets | (8,078) | (11,678) |
Expensed internal-use software | (595) | (390) |
Other | (1,611) | |
Total Deferred Tax Liabilities | (10,917) | (12,974) |
Net Deferred Tax (Liability) | $ (338) | |
Net Deferred Tax Assets | $ 3,486 |
Income Taxes - Summary of Chang
Income Taxes - Summary of Changes in Total Gross Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Beginning balance | $ 7,868 | $ 5,248 | $ 3,247 |
Increases related to tax positions taken during the prior period | 189 | 24 | 160 |
Increases related to tax positions taken during the current period | 4,032 | 2,888 | 2,185 |
Lapse of statute of limitations | (691) | (292) | (344) |
Ending balance | $ 11,398 | $ 7,868 | $ 5,248 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | Feb. 01, 2017 | Jan. 31, 2018 | Jun. 15, 2014 | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock option award | 16,024,146 | 16,024,146 | 16,282,343 | |||
Board of directors service term | 3 years | |||||
Dividend declared | $ 0 | $ 0 | ||||
Dividend paid | $ 0 | |||||
Weighted-average grant date fair value of options granted | $ 30.87 | $ 14.12 | $ 12.36 | |||
Unrecognized compensation cost related to unvested stock options granted | $ 113,600,000 | $ 113,600,000 | ||||
Closing stock price | $ 62.86 | $ 62.86 | ||||
Intrinsic value of options exercised | $ 140,300,000 | |||||
Stock options, granted | 2,879,635 | |||||
Accounting Standards Update 2016-09 [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Net cumulative-effect adjustment on retained earnings | $ 700,000 | |||||
Stock Options [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Weighted average period of unvested stock | 4 years | |||||
Restricted Stock Units (RSUs) [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Weighted average period of unvested stock | 2 years 6 months | |||||
Weighted average grant date fair value, RSUs granted | $ 53.97 | |||||
Unrecognized compensation cost related to unvested RSUs | $ 103,200,000 | $ 103,200,000 | ||||
Total intrinsic value, vested | $ 70,700,000 | |||||
CEO [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock options, granted | 2,838,635 | |||||
CEO [Member] | Stock Options [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number of vesting tranches based on market conditions | The stock option award is made up of five separate tranches. The first tranche vests over time, while the remaining four tranches vest based on certain stock price targets (market conditions). | |||||
2007 Stock Plan [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock option award | 0 | 0 | ||||
2007 Stock 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 | |||||
2007 Stock 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 Equity Incentive Award Plan [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock option award | 0 | 0 | ||||
2013 Equity Incentive Plan [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock option award | 0 | 0 | ||||
Minimum incremental of issuance of common stock | 13,750,000 | |||||
Common shares outstanding percentage | 5.00% | 5.00% | ||||
Effective date of plan | Oct. 15, 2013 | |||||
Equity incentive plan | The number of shares available for issuance under the 2013 EIP automatically increases on the first business day of each of our fiscal years, commencing in 2014, by a number equal to the least of (a) 13.75 million shares, (b) 5% of the shares of all classes of our common stock outstanding on the last business day of the prior fiscal year, or (c) the number of shares determined by our board of directors. During our fiscal year ended January 31, 2018, our board of directors determined to add 6,204,897 shares of common stock to the 2013 EIP. | |||||
2013 Equity Incentive Plan [Member] | Stock Options [Member] | Maximum [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock option exercisable period | 10 years | |||||
Stock option vesting period | 9 years | |||||
2013 Equity Incentive Plan [Member] | Stock Options [Member] | Minimum [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock option vesting period | 5 years | |||||
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 | $ 53.97 | |||||
2013 Equity Incentive Plan [Member] | Board of Directors [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Incremental of issuance of common stock | 6,204,897 | |||||
2013 Employee Stock Purchase Plan [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Minimum incremental of issuance of common stock | 2,200,000 | |||||
Common shares outstanding percentage | 1.00% | 1.00% | ||||
Common stock reserve for future issuance | 4,000,000 | 4,000,000 | ||||
Employee stock purchase plan | The number of shares available for issuance under the ESPP automatically increases on the first business day of each of our fiscal years, commencing in 2014, by a number equal to the least of (a) 2.2 million shares, (b) 1% of the shares of all classes of our common stock outstanding on the last business day of the prior fiscal year or (c) the number of shares determined by our board of directors. | |||||
Common stock acquire at fair market value | 85.00% | |||||
Common stock purchases through payroll deductions | 15.00% | |||||
2007 Stock Plans [Member] | Stock Options [Member] | Maximum [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock option exercisable period | 10 years | |||||
Stock option vesting period | 5 years | |||||
2007 Stock Plans [Member] | Stock Options [Member] | Minimum [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock option vesting period | 4 years | |||||
2012 Stock Plan [Member] | Stock Options [Member] | Maximum [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock option exercisable period | 10 years | |||||
Stock option vesting period | 9 years | |||||
2012 Stock Plan [Member] | Stock Options [Member] | Minimum [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock option vesting period | 5 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 | |||||
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 | |||||
Class A common stock [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Common stock, shares outstanding | 117,246,735 | 117,246,735 | 103,789,544 | |||
Conversion of common stock outstanding | 100.00% | |||||
Conversion of common stock | 100.00% | |||||
Class A common stock [Member] | 2013 Equity Incentive Plan [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Common stock Available for issuance | 18,856,595 | |||||
Class A common stock [Member] | 2013 Employee Stock Purchase Plan [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock issued in ESPP offering period | 350,059 | |||||
Class B common stock [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Common stock, shares outstanding | 24,822,661 | 24,822,661 | 34,097,075 | |||
Common stock, shares unvested | 0 | 0 | 2,500 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Option Activity (Detail) | 12 Months Ended | |
Jan. 31, 2018USD ($)$ / sharesshares | Jan. 31, 2017USD ($)$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Number of shares, Options outstanding, Beginning Balance | shares | 16,282,343 | |
Number of shares, Options granted | shares | 2,879,635 | |
Number of shares, Options exercised | shares | (2,935,962) | |
Number of shares, Options forfeited/cancelled | shares | (201,870) | |
Number of shares, Options outstanding, Ending Balance | shares | 16,024,146 | 16,282,343 |
Number of shares, Options vested and exercisable | shares | 6,319,293 | |
Number of shares, Options vested and exercisable and expected to vest thereafter | shares | 16,024,146 | |
Weighted average exercise price, Options outstanding, Beginning Balance | $ / shares | $ 7.48 | |
Weighted average exercise price, Options granted | $ / shares | 59.97 | |
Weighted average exercise price, Options exercised | $ / shares | 7.22 | |
Weighted average exercise price, Options forfeited/cancelled | $ / shares | 22.84 | |
Weighted average exercise price, Options outstanding, Ending Balance | $ / shares | 16.76 | $ 7.48 |
Weighted average exercise price, Options vested and exercisable | $ / shares | 5.47 | |
Weighted average exercise price, Options vested and exercisable and expected to vest thereafter | $ / shares | $ 16.76 | |
Weighted average remaining contractual term (in years), Options outstanding | 6 years 1 month 6 days | 6 years 3 months 18 days |
Weighted average remaining contractual term (in years), Options vested and exercisable | 4 years 10 months 24 days | |
Weighted average remaining contractual term (in years), Options vested and exercisable and expected to vest thereafter | 6 years 1 month 6 days | |
Aggregate intrinsic value, Options outstanding | $ | $ 738,648,507 | $ 567,491,532 |
Aggregate intrinsic value, Options vested and exercisable | $ | 362,644,996 | |
Aggregate intrinsic value, Options vested and exercisable and expected to vest thereafter | $ | $ 738,648,507 |
Stockholders' Equity - Summar67
Stockholders' Equity - Summary of RSU Activity (Detail) - Restricted Stock Units (RSUs) [Member] | 12 Months Ended |
Jan. 31, 2018$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unreleased restricted stock units, Beginning Balance | shares | 3,362,650 |
Unreleased restricted stock units, RSUs granted | shares | 1,201,849 |
Unreleased restricted stock units, RSUs vested | shares | (1,247,103) |
Unreleased restricted stock units, RSUs forfeited/cancelled | shares | (415,660) |
Unreleased restricted stock units, Ending Balance | shares | 2,901,736 |
Weighted average grant date fair value, Beginning Balance | $ / shares | $ 29.33 |
Weighted average grant date fair value, RSUs granted | $ / shares | 53.97 |
Weighted average grant date fair value, RSUs vested | $ / shares | 31.52 |
Weighted average grant date fair value, RSUs forfeited/cancelled | $ / shares | 32.54 |
Weighted average grant date fair value, Ending Balance | $ / shares | $ 38.14 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Weighted-Average Assumptions Used to Estimate Grant Date Fair Value of Options Granted (Detail) - Stock Options [Member] | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Volatility, Minimum | 42.00% | 45.00% | 45.00% |
Volatility, Maximum | 44.00% | 46.00% | 46.00% |
Expected term (in years) | 6 years 4 months 6 days | ||
Risk-free interest rate, Minimum | 1.86% | 1.48% | 1.69% |
Risk-free interest rate, Maximum | 2.21% | 2.10% | 1.84% |
Dividend yield | 0.00% | 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 21 days | 5 years 6 months | |
Maximum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 7 years 6 months 21 days | 6 years 3 months 25 days |
Stockholders' Equity - Schedu69
Stockholders' Equity - Schedule of Weighted-Average Assumptions Used In For Each Tranche Granted (Detail) - Stock Options [Member] | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 6 years 4 months 6 days | ||
Dividend yield | 0.00% | 0.00% | 0.00% |
CEO [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Volatility | 41.00% | ||
Expected term (in years) | 10 years | ||
Risk-free interest rate | 2.53% | ||
Dividend yield | 0.00% |
Stockholders' Equity - Schedu70
Stockholders' Equity - Schedule of Weighted-Average Assumptions Used to Calculate Stock-Based Compensation for Stock Purchase under ESPP (Detail) - Employee stock purchase plan [Member] | 12 Months Ended |
Jan. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Volatility | 44.00% |
Expected term (in years) | 6 months 29 days |
Risk-free interest rate | 0.10% |
Dividend yield | 0.00% |
Net Income per Share Attribut71
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 | 12 Months Ended | |||||||||
Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | |||||||||||
Net income | $ 33,706 | $ 34,393 | $ 37,844 | $ 36,023 | $ 21,707 | $ 21,630 | $ 12,958 | $ 12,509 | $ 141,966 | $ 68,804 | $ 54,460 |
Weighted average shares used in computing net income per share attributable to common stockholders, basic | 140,311 | 135,698 | 132,020 | ||||||||
Net income per share attributable to common stockholders, basic | $ 0.24 | $ 0.24 | $ 0.27 | $ 0.26 | $ 0.16 | $ 0.16 | $ 0.10 | $ 0.09 | $ 1.01 | $ 0.51 | $ 0.41 |
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 | 153,681 | 147,578 | 144,977 | ||||||||
Net income per share attributable to common stockholders, diluted | $ 0.22 | $ 0.22 | $ 0.25 | $ 0.24 | $ 0.15 | $ 0.15 | $ 0.09 | $ 0.09 | $ 0.92 | $ 0.47 | $ 0.38 |
Class A common stock [Member] | |||||||||||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | |||||||||||
Net income | $ 113,818 | $ 49,799 | $ 31,453 | ||||||||
Undistributed earnings allocated to participating securities | (2) | (27) | |||||||||
Net income attributable to common stockholders, basic | $ 113,818 | $ 49,797 | $ 31,426 | ||||||||
Weighted average shares used in computing net income per share attributable to common stockholders, basic | 112,491 | 98,216 | 76,246 | ||||||||
Net income per share attributable to common stockholders, basic | $ 1.01 | $ 0.51 | $ 0.41 | ||||||||
Net income attributable to common stockholders, basic | $ 113,818 | $ 49,797 | $ 31,426 | ||||||||
Reallocation as a result of conversion of Class B to Class A common stock: | |||||||||||
Net income attributable to common stockholders, basic | 28,148 | 19,004 | 22,987 | ||||||||
Net income attributable to common stockholders, diluted | $ 141,966 | $ 68,801 | $ 54,413 | ||||||||
Conversion of Class B to Class A common stock | 27,820 | 37,482 | 55,774 | ||||||||
Effect of potentially dilutive common shares | 13,370 | 11,880 | 12,957 | ||||||||
Weighted average shares used in computing net income per share attributable to common stockholders, diluted | 153,681 | 147,578 | 144,977 | ||||||||
Net income per share attributable to common stockholders, diluted | $ 0.92 | $ 0.47 | $ 0.38 | ||||||||
Class B common stock [Member] | |||||||||||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | |||||||||||
Net income | $ 28,148 | $ 19,005 | $ 23,007 | ||||||||
Undistributed earnings allocated to participating securities | (1) | (20) | |||||||||
Net income attributable to common stockholders, basic | $ 28,148 | $ 19,004 | $ 22,987 | ||||||||
Weighted average shares used in computing net income per share attributable to common stockholders, basic | 27,820 | 37,482 | 55,774 | ||||||||
Net income per share attributable to common stockholders, basic | $ 1.01 | $ 0.51 | $ 0.41 | ||||||||
Net income attributable to common stockholders, basic | $ 28,148 | $ 19,004 | $ 22,987 | ||||||||
Reallocation as a result of conversion of Class B to Class A common stock: | |||||||||||
Reallocation of net income to Class B common stock | 9,902 | 4,009 | 2,808 | ||||||||
Net income attributable to common stockholders, diluted | $ 38,050 | $ 23,013 | $ 25,795 | ||||||||
Effect of potentially dilutive common shares | 13,370 | 11,880 | 12,957 | ||||||||
Weighted average shares used in computing net income per share attributable to common stockholders, diluted | 41,190 | 49,362 | 68,731 | ||||||||
Net income per share attributable to common stockholders, diluted | $ 0.92 | $ 0.47 | $ 0.38 |
Net Income per Share Attribut72
Net Income per Share Attributable to Common Stockholders - Potential Common Share Equivalents Excluded where the Inclusion would be Anti-dilutive (Detail) - shares | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
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 | 833,691 | 2,040,238 | 886,472 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Jan. 26, 2018 | Aug. 30, 2017 | Aug. 24, 2017 | Jun. 05, 2017 | Mar. 13, 2017USD ($) | Mar. 03, 2017 | Mar. 01, 2017 | Feb. 21, 2017 | Jan. 26, 2017Employee | Jan. 31, 2018USD ($) | Jan. 31, 2017USD ($) | Jan. 31, 2016USD ($) |
Long Term Purchase Commitment [Line Items] | ||||||||||||
Rent expense | $ 5,000,000 | $ 4,500,000 | $ 4,400,000 | |||||||||
Value-Added Reseller Agreement [Member] | ||||||||||||
Long Term Purchase Commitment [Line Items] | ||||||||||||
Minimum fee commitment obligation | $ 285,800,000 | |||||||||||
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 | $ 500,000,000 | |||||||||||
Agreement maturity date | Sep. 1, 2025 | |||||||||||
Value-Added Reseller Agreement [Member] | September 1, 2025 [Member] | ||||||||||||
Long Term Purchase Commitment [Line Items] | ||||||||||||
Minimum order commitment | $ 500,000,000 | |||||||||||
Value-Added Reseller Agreement [Member] | March 1, 2014 to September 1, 2020 [Member] | ||||||||||||
Long Term Purchase Commitment [Line Items] | ||||||||||||
Minimum order commitment | $ 250,000,000 | |||||||||||
IQVIA Litigation Matter [Member] | ||||||||||||
Long Term Purchase Commitment [Line Items] | ||||||||||||
Litigation filed date | January 10, 2017 | |||||||||||
Motion to dismiss counterclaims filed date | Jun. 5, 2017 | |||||||||||
IQVIA Litigation Matter [Member] | Minimum [Member] | ||||||||||||
Long Term Purchase Commitment [Line Items] | ||||||||||||
Monetary damages | $ 200,000,000 | |||||||||||
Medidata Litigation Matter [Member] | ||||||||||||
Long Term Purchase Commitment [Line Items] | ||||||||||||
Litigation filed date | January 26, 2017 | |||||||||||
Number of former employees | Employee | 5 | |||||||||||
First amended litigation filed date | Feb. 21, 2017 | |||||||||||
Defendants dismissed from case | Individual Defendants | |||||||||||
Motion filled date for private arbitration | Mar. 3, 2017 | |||||||||||
Motion to dismiss appeal filed date | Jan. 26, 2018 | |||||||||||
Motion filled date to dismiss complaint | Aug. 30, 2017 | |||||||||||
Initial pretrial conference scheduled date | Sep. 28, 2017 | |||||||||||
Medidata Litigation Matter [Member] | Second Circuit Appealed with U.S Court of Appeals [Member] | ||||||||||||
Long Term Purchase Commitment [Line Items] | ||||||||||||
Appealed date to U.S. Court of Appeals for the Second Circuit on court's order | Aug. 24, 2017 |
Commitments and Contingencies74
Commitments and Contingencies - Future Minimum Lease Payments Under Non-cancelable Operating Leases (Detail) $ in Thousands | Jan. 31, 2018USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Fiscal 2,019 | $ 4,955 |
Fiscal 2,020 | 4,138 |
Fiscal 2,021 | 3,171 |
Fiscal 2,022 | 2,513 |
Fiscal 2,023 | 1,362 |
Thereafter | 1,348 |
Total | $ 17,487 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Detail) | 1 Months Ended |
Sep. 30, 2016Product | |
Zoom Video Communications, Inc [Member] | |
Related Party Transaction [Line Items] | |
Number of products to embed into our multichannel customer relationship management applications | 2 |
Information about Geographic 76
Information about Geographic Areas - Revenues by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Revenues by geography | |||||||||||
Total revenues | $ 184,919 | $ 176,149 | $ 166,585 | $ 157,918 | $ 150,153 | $ 142,779 | $ 131,347 | $ 119,764 | $ 685,571 | $ 544,043 | $ 409,221 |
North America [Member] | |||||||||||
Revenues by geography | |||||||||||
Total revenues | 376,538 | 297,014 | 225,483 | ||||||||
Europe and other [Member] | |||||||||||
Revenues by geography | |||||||||||
Total revenues | 202,411 | 160,666 | 111,923 | ||||||||
Asia Pacific [Member] | |||||||||||
Revenues by geography | |||||||||||
Total revenues | $ 106,622 | $ 86,363 | $ 71,815 |
Information about Geographic 77
Information about Geographic Areas - Long-Lived Assets by Geographic Area (Detail) - USD ($) $ in Thousands | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 |
Long-lived assets by geography | |||
Total long-lived assets | $ 52,284 | $ 49,907 | $ 47,469 |
North America [Member] | |||
Long-lived assets by geography | |||
Total long-lived assets | 49,214 | 47,096 | 45,163 |
Europe and other [Member] | |||
Long-lived assets by geography | |||
Total long-lived assets | 1,840 | 1,762 | 1,827 |
Asia Pacific [Member] | |||
Long-lived assets by geography | |||
Total long-lived assets | $ 1,230 | $ 1,049 | $ 479 |
401(k) Plan - Additional Inform
401(k) Plan - Additional Information (Detail) - USD ($) | Jan. 01, 2018 | Jan. 31, 2018 |
Defined Contribution Plan Disclosure [Line Items] | ||
Total expense related defined benefit plan | $ 400,000 | |
RRSP [Member] | Canada [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Employer maximum matching contribution amount per employee per year | $ 2,000 | |
Employer maximum matching contribution amount per employee per quarter | 500 | |
401(K) Plan [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Employer maximum matching contribution amount per employee per year | $ 2,000 |
Selected Quarterly Financial 79
Selected Quarterly Financial Data - Summary of Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 184,919 | $ 176,149 | $ 166,585 | $ 157,918 | $ 150,153 | $ 142,779 | $ 131,347 | $ 119,764 | $ 685,571 | $ 544,043 | $ 409,221 |
Gross profit | 126,002 | 122,913 | 116,181 | 109,036 | 103,683 | 98,854 | 89,152 | 78,673 | 474,132 | 370,362 | 267,007 |
Operating income | 34,887 | 41,668 | 36,898 | 37,339 | 32,530 | 33,810 | 23,822 | 17,806 | 150,792 | 107,968 | 78,589 |
Net income | $ 33,706 | $ 34,393 | $ 37,844 | $ 36,023 | $ 21,707 | $ 21,630 | $ 12,958 | $ 12,509 | $ 141,966 | $ 68,804 | $ 54,460 |
Net income per share attributable to Class A and Class B common stockholders: | |||||||||||
Basic | $ 0.24 | $ 0.24 | $ 0.27 | $ 0.26 | $ 0.16 | $ 0.16 | $ 0.10 | $ 0.09 | $ 1.01 | $ 0.51 | $ 0.41 |
Diluted | $ 0.22 | $ 0.22 | $ 0.25 | $ 0.24 | $ 0.15 | $ 0.15 | $ 0.09 | $ 0.09 | $ 0.92 | $ 0.47 | $ 0.38 |