Cover Page
Cover Page - shares | 9 Months Ended | |
Oct. 31, 2019 | Nov. 30, 2019 | |
Document And Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 31, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-36121 | |
Entity Registrant Name | Veeva Systems Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-8235463 | |
Entity Address, Address Line One | 4280 Hacienda Drive | |
Entity Address, City or Town | Pleasanton | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94588 | |
City Area Code | 925 | |
Local Phone Number | 452-6500 | |
Title of 12(b) Security | Class A Common Stock,par value $0.00001 per share | |
Trading Symbol | VEEV | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001393052 | |
Current Fiscal Year End Date | --01-31 | |
Class A common stock | ||
Document And Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 132,212,846 | |
Class B common stock | ||
Document And Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 16,373,842 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 31, 2019 | |
Current assets: | |||
Cash and cash equivalents | $ 892,581 | $ 550,971 | |
Short-term investments | 602,407 | 539,190 | |
Accounts receivable, net of allowance for doubtful accounts of $367 and $468, respectively | 116,874 | 303,465 | |
Unbilled accounts receivable | 30,899 | 18,122 | |
Prepaid expenses and other current assets | 15,360 | 21,666 | |
Total current assets | 1,658,121 | 1,433,414 | |
Property and equipment, net | [1] | 53,290 | 54,966 |
Deferred costs, net | 29,873 | 30,869 | |
Lease right-of-use-assets | [1] | 24,055 | |
Goodwill | 95,804 | 95,804 | |
Intangible assets, net | 19,948 | 24,521 | |
Deferred income taxes, noncurrent | 6,455 | 5,938 | |
Other long-term assets | 12,895 | 8,254 | |
Total assets | 1,900,441 | 1,653,766 | |
Current liabilities: | |||
Accounts payable | 9,914 | 9,110 | |
Accrued compensation and benefits | 15,977 | 15,324 | |
Accrued expenses and other current liabilities | 15,707 | 16,145 | |
Income tax payable | 7,195 | 4,086 | |
Deferred revenue | 250,674 | ||
Deferred revenue | 356,357 | ||
Lease liabilities | [1] | 7,430 | |
Total current liabilities | 306,897 | 401,022 | |
Deferred income taxes, noncurrent | 9,042 | 6,095 | |
Lease liabilities, noncurrent | [1] | 19,882 | |
Other long-term liabilities | 6,055 | 8,900 | |
Total liabilities | 341,876 | 416,017 | |
Commitments and contingencies | |||
Stockholders’ equity: | |||
Additional paid-in capital | 704,915 | 617,623 | |
Accumulated other comprehensive income | 173 | 928 | |
Retained earnings | [1] | 853,476 | 619,197 |
Total stockholders’ equity | 1,558,565 | 1,237,749 | |
Total liabilities and stockholders’ equity | 1,900,441 | 1,653,766 | |
Class A common stock | |||
Stockholders’ equity: | |||
Class A common stock, $0.00001 par value; 800,000,000 shares authorized, 131,955,372 and 125,980,019 issued and outstanding at October 31, 2019 and January 31, 2019, respectively | 1 | 1 | |
Class B common stock | |||
Stockholders’ equity: | |||
Class A common stock, $0.00001 par value; 800,000,000 shares authorized, 131,955,372 and 125,980,019 issued and outstanding at October 31, 2019 and January 31, 2019, respectively | $ 0 | $ 0 | |
[1] | We adopted Accounting Standards Update (ASU) 2016-02, “Leases” (Topic 842) using the modified retrospective method as of February 1, 2019 and elected the transition option that allows us not to restate the comparative periods in our financial statements in the year of adoption. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 31, 2019 |
Allowance for doubtful accounts | $ 367 | $ 468 |
Class A common stock | ||
Class A common stock, $0.00001 par value; 800,000,000 shares authorized, 131,955,372 and 125,980,019 issued and outstanding at October 31, 2019 and January 31, 2019, respectively | $ 1 | $ 1 |
Common stock, par value (in usd per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 800,000,000 | 800,000,000 |
Common stock, shares issued (in shares) | 131,955,372 | 125,980,019 |
Common stock, shares outstanding (in shares) | 131,955,372 | 125,980,019 |
Class B common stock | ||
Class A common stock, $0.00001 par value; 800,000,000 shares authorized, 131,955,372 and 125,980,019 issued and outstanding at October 31, 2019 and January 31, 2019, respectively | $ 0 | $ 0 |
Common stock, par value (in usd per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 190,000,000 | 190,000,000 |
Common stock, shares issued (in shares) | 16,405,449 | 20,210,060 |
Common stock, shares outstanding (in shares) | 16,405,449 | 20,210,060 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | ||
Stock-based compensation | $ 29,321 | $ 19,918 | $ 78,447 | $ 56,647 | |
Subscription services | |||||
Revenues | 280,921 | 224,731 | 792,573 | 629,887 | |
Cost of revenues: | |||||
Cost of revenues | [1] | 73,329 | 61,374 | 209,050 | 180,755 |
Gross profit | 207,592 | 163,357 | 583,523 | 449,132 | |
Operating expenses: | |||||
Research and development | [1] | 52,575 | 40,001 | 148,694 | 116,024 |
Sales and marketing | [1] | 45,524 | 37,699 | 130,962 | 110,306 |
General and administrative | [1] | 28,693 | 22,563 | 78,042 | 62,934 |
Total operating expenses | [1] | 126,792 | 100,263 | 357,698 | 289,264 |
Operating income | 80,800 | 63,094 | 225,825 | 159,868 | |
Other income, net | 9,141 | 4,606 | 22,634 | 10,087 | |
Income before income taxes | 89,941 | 67,700 | 248,459 | 169,955 | |
Provision for income taxes | 7,696 | 3,615 | 13,523 | 11,274 | |
Net income | 82,245 | 64,085 | 234,936 | 158,681 | |
Net income, basic and diluted | $ 82,245 | $ 64,085 | $ 234,936 | $ 158,681 | |
Net income per share: | |||||
Basic (in usd per share) | $ 0.56 | $ 0.44 | $ 1.59 | $ 1.10 | |
Diluted (in usd per share) | $ 0.52 | $ 0.41 | $ 1.49 | $ 1.02 | |
Weighted-average shares used to compute net income per share: | |||||
Basic (in shares) | 148,157 | 144,737 | 147,467 | 143,765 | |
Diluted (in shares) | 158,750 | 156,025 | 158,124 | 155,706 | |
Other comprehensive income: | |||||
Net change in unrealized gain on available-for-sale investments | $ 753 | $ 33 | $ 2,176 | $ 695 | |
Net change in cumulative foreign currency translation loss | (487) | (1,153) | (2,931) | (3,534) | |
Comprehensive income | 82,511 | 62,965 | 234,181 | 155,842 | |
Subscription services | |||||
Subscription services | |||||
Revenues | 226,760 | 178,214 | 642,187 | 503,809 | |
Cost of revenues: | |||||
Cost of revenues | [1] | 31,964 | 28,335 | 93,822 | 87,394 |
Professional services and other | |||||
Subscription services | |||||
Revenues | 54,161 | 46,517 | 150,386 | 126,078 | |
Cost of revenues: | |||||
Cost of revenues | [1] | 41,365 | 33,039 | 115,228 | 93,361 |
Cost of subscription services | |||||
Stock-based compensation | 560 | 405 | 1,528 | 1,166 | |
Cost of professional services and other | |||||
Stock-based compensation | 4,825 | 2,782 | 12,261 | 7,767 | |
Research and development | |||||
Stock-based compensation | 9,899 | 5,820 | 25,732 | 16,282 | |
Sales and marketing | |||||
Stock-based compensation | 6,882 | 4,825 | 19,207 | 13,743 | |
General and administrative | |||||
Stock-based compensation | $ 7,155 | $ 6,086 | $ 19,719 | $ 17,689 | |
[1] | Includes stock-based compensation as follows: Cost of revenues: Cost of subscription services $ 560 $ 405 $ 1,528 $ 1,166 Cost of professional services and other 4,825 2,782 12,261 7,767 Research and development 9,899 5,820 25,732 16,282 Sales and marketing 6,882 4,825 19,207 13,743 General and administrative 7,155 6,086 19,719 17,689 Total stock-based compensation $ 29,321 $ 19,918 $ 78,447 $ 56,647 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Stock-based compensation | $ 29,321 | $ 19,918 | $ 78,447 | $ 56,647 |
Cost of subscription services | ||||
Stock-based compensation | 560 | 405 | 1,528 | 1,166 |
Cost of professional services and other | ||||
Stock-based compensation | 4,825 | 2,782 | 12,261 | 7,767 |
Research and development | ||||
Stock-based compensation | 9,899 | 5,820 | 25,732 | 16,282 |
Sales and marketing | ||||
Stock-based compensation | 6,882 | 4,825 | 19,207 | 13,743 |
General and administrative | ||||
Stock-based compensation | $ 7,155 | $ 6,086 | $ 19,719 | $ 17,689 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Class A & B common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income | |
Beginning balance at Jan. 31, 2018 | $ 906,238 | $ 1 | $ 515,272 | $ 389,365 | $ 1,600 | |
Beginning balance (in shares) at Jan. 31, 2018 | 142,069,396 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon exercise of stock options | 19,293 | 19,293 | ||||
Issuance of common stock upon exercise of stock options (in shares) | 2,012,604 | |||||
Issuance of common stock upon vesting of restricted stock units (in shares) | 986,417 | |||||
Stock-based compensation expense | 56,932 | 56,932 | ||||
Other comprehensive income | (2,839) | (2,839) | ||||
Net income | 158,681 | 158,681 | ||||
Ending balance at Oct. 31, 2018 | 1,138,305 | $ 1 | 591,497 | 548,046 | (1,239) | |
Ending balance (in shares) at Oct. 31, 2018 | 145,068,417 | |||||
Beginning balance at Jul. 31, 2018 | 1,050,376 | $ 1 | 566,533 | 483,961 | (119) | |
Beginning balance (in shares) at Jul. 31, 2018 | 144,144,488 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon exercise of stock options | 4,923 | 4,923 | ||||
Issuance of common stock upon exercise of stock options (in shares) | 599,655 | |||||
Issuance of common stock upon vesting of restricted stock units (in shares) | 324,274 | |||||
Stock-based compensation expense | 20,041 | 20,041 | ||||
Other comprehensive income | (1,120) | (1,120) | ||||
Net income | 64,085 | 64,085 | ||||
Ending balance at Oct. 31, 2018 | 1,138,305 | $ 1 | 591,497 | 548,046 | (1,239) | |
Ending balance (in shares) at Oct. 31, 2018 | 145,068,417 | |||||
Beginning balance at Jan. 31, 2019 | 1,237,749 | $ 1 | 617,623 | 619,197 | 928 | |
Beginning balance (in shares) at Jan. 31, 2019 | 146,190,079 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon exercise of stock options | $ 8,503 | 8,503 | ||||
Issuance of common stock upon exercise of stock options (in shares) | 1,225,746 | 1,225,746 | ||||
Issuance of common stock upon vesting of restricted stock units (in shares) | 944,996 | |||||
Stock-based compensation expense | $ 78,789 | 78,789 | ||||
Other comprehensive income | (755) | (755) | ||||
Net income | 234,936 | 234,936 | ||||
Ending balance at Oct. 31, 2019 | 1,558,565 | $ 1 | 704,915 | 853,476 | 173 | |
Ending balance (in shares) at Oct. 31, 2019 | 148,360,821 | |||||
Beginning balance at Jul. 31, 2019 | 1,445,017 | $ 1 | 673,878 | 771,231 | (93) | |
Beginning balance (in shares) at Jul. 31, 2019 | 147,848,634 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon exercise of stock options | 1,588 | 1,588 | ||||
Issuance of common stock upon exercise of stock options (in shares) | 211,154 | |||||
Issuance of common stock upon vesting of restricted stock units (in shares) | 301,033 | |||||
Stock-based compensation expense | 29,449 | 29,449 | ||||
Other comprehensive income | 266 | 266 | ||||
Net income | 82,245 | 82,245 | ||||
Ending balance at Oct. 31, 2019 | 1,558,565 | $ 1 | $ 704,915 | 853,476 | $ 173 | |
Ending balance (in shares) at Oct. 31, 2019 | 148,360,821 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect adjustment for Topic 842 adoption | [1] | $ (657) | $ (657) | |||
[1] | We adopted ASU 2016-02, “Leases” (Topic 842) using the modified retrospective method as of February 1, 2019 and elected the transition option that allows us not to restate the comparative periods in our financial statements in the year of adoption. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Cash flows from operating activities | ||||
Net income | $ 82,245 | $ 64,085 | $ 234,936 | $ 158,681 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 5,643 | 3,383 | 16,642 | 10,477 |
Accretion of discount on short-term investments | (722) | (848) | (2,996) | (1,380) |
Stock-based compensation | 29,321 | 19,918 | 78,447 | 56,647 |
Amortization of deferred costs | 4,832 | 4,595 | 14,524 | 13,697 |
Deferred income taxes | 432 | 1,824 | 1,771 | 2,642 |
Gain on foreign currency from mark-to-market derivative | (74) | (19) | (112) | (182) |
Bad debt expense (recovery) | 270 | 84 | (42) | 262 |
Changes in operating assets and liabilities: | ||||
Accounts receivable | 28,319 | 21,658 | 186,633 | 134,353 |
Unbilled accounts receivable | (9,515) | (5,212) | (12,777) | (6,641) |
Deferred costs | (4,500) | (4,504) | (13,528) | (11,426) |
Income taxes payable | 3,909 | 1,029 | 4,858 | 525 |
Prepaid expenses and other current and long-term assets | 5,610 | (6,018) | 1,513 | (9,527) |
Accounts payable | 1,253 | 2,982 | 1,216 | 3,520 |
Accrued expenses and other current liabilities | (1,682) | 406 | 231 | (3,698) |
Deferred revenue | (78,326) | (62,860) | (105,637) | (70,616) |
Lease liabilities | (1,625) | (5,143) | ||
Other long-term liabilities | (3,886) | 1,053 | (2,270) | 1,620 |
Net cash provided by operating activities | 61,504 | 41,556 | 398,266 | 278,954 |
Cash flows from investing activities | ||||
Purchases of short-term investments | (190,695) | (214,839) | (628,784) | (589,070) |
Maturities and sales of short-term investments | 194,661 | 130,137 | 571,398 | 447,947 |
Purchases of property and equipment | (881) | (4,163) | (3,167) | (5,558) |
Capitalized internal-use software development costs | (356) | (495) | (1,061) | (1,009) |
Net cash provided by (used in) investing activities | 2,729 | (89,360) | (61,614) | (147,690) |
Cash flows from financing activities | ||||
Reduction of lease liabilities - finance leases | (241) | (729) | ||
Proceeds from exercise of common stock options | 1,607 | 4,867 | 8,618 | 19,728 |
Net cash provided by financing activities | 1,366 | 4,867 | 7,889 | 19,728 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (487) | (1,154) | (2,931) | (3,530) |
Net change in cash, cash equivalents, and restricted cash | 65,112 | (44,091) | 341,610 | 147,462 |
Cash, cash equivalents, and restricted cash at beginning of period | 828,676 | 512,940 | 552,178 | 321,387 |
Cash, cash equivalents, and restricted cash at end of period | 893,788 | 468,849 | 893,788 | 468,849 |
Cash, cash equivalents, and restricted cash at end of period: | ||||
Cash, cash equivalents, and restricted cash at end of period | 828,676 | 512,940 | 552,178 | 321,387 |
Supplemental disclosures of other cash flow information: | ||||
Cash paid for income taxes, net of refunds | 1,739 | 6,697 | 5,004 | 17,268 |
Excess tax benefits from employee stock plans | 8,931 | 12,006 | 39,509 | 31,032 |
Non-cash investing and financing activities: | ||||
Changes in accounts payable and accrued expenses related to property and equipment purchases | $ 109 | $ 314 | $ (428) | $ 493 |
Summary of Business and Signifi
Summary of Business and Significant Accounting Policies | 9 Months Ended |
Oct. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Business and Significant Accounting Policies | Summary of Business and Significant Accounting Policies Description of Business Veeva is the leading provider of industry cloud solutions for the global life sciences industry. 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 solutions 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 solutions are designed to help life sciences companies develop and bring products to market faster and more efficiently, market and sell more effectively, and maintain compliance with government regulations. Veeva is also offering its content and data management solutions to companies in other regulated industries, primarily consumer packaged goods, chemicals, and cosmetics. Our fiscal year end is January 31. Principles of Consolidation and Basis of Presentation These unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting and include the accounts of our wholly-owned subsidiaries after elimination of intercompany accounts and transactions. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2019 , filed on March 28, 2019. There have been no changes to our significant accounting policies described in the annual report that have had a material impact on our condensed consolidated financial statements and related notes. The condensed consolidated balance sheet as of January 31, 2019 included herein was derived from the audited financial statements as of that date. These unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly our financial position, results of operations, comprehensive income, and cash flows for the interim periods but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year ending January 31, 2020 or any other period. Effective February 1, 2019, we adopted the requirements of ASU 2016-02, “ Leases ” (Topic 842) as discussed in this note. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires us to make estimates, judgments and assumptions that affect the condensed consolidated financial statements and the notes thereto. These estimates are based on information available as of the date of the condensed consolidated financial statements. On a regular basis, management evaluates these estimates and assumptions. Items subject to such estimates and assumptions include, but are not limited to: • the standalone selling price for each distinct performance obligation included in customer contracts with multiple performance obligations; • the valuation of short-term investments and the determination of other-than-temporary impairments; • the realizability of deferred income tax assets and liabilities; and • the fair value of our stock-based awards. As future events cannot be determined with precision, actual results could differ significantly from those estimates. Revenue Recognition We derive our revenues primarily from subscription services and professional services. Subscription services revenues consist of fees from customers accessing our cloud-based software solutions and subscription or license fees for our data solutions. Professional services and other revenues consist primarily of fees from implementation services, configuration, data services, training, and managed services related to our solutions. Revenues are recognized when control of these services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those services. We determine revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when, or as, we satisfy a performance obligation. Our subscription services agreements are generally non-cancelable during the term, although customers typically have the right to terminate their agreements for cause in the event of material breach. Subscription Services Revenues Subscription services revenues are recognized ratably over the respective non-cancelable subscription term because of the continuous transfer of control to the customer. Our subscription arrangements are considered service contracts, and the customer does not have the right to take possession of the software. Professional Services and Other Revenues The majority of our professional services arrangements are billed on a time and materials basis and revenues are recognized over time based on time incurred and contractually agreed upon rates. Certain professional services revenues are billed on a fixed fee basis and revenues are typically recognized over time based on the proportion of total services performed. Data services and training revenues are generally recognized as the services are performed. Contracts with Multiple Performance Obligations Some of our contracts with customers contain multiple performance obligations. For these contracts, we account for individual performance obligations separately when they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. We determine the standalone selling prices based on our overall pricing objectives, taking into consideration market conditions and other factors, including other groupings such as customer type and geography. Unbilled Accounts Receivable Unbilled accounts receivable is a contract asset related to the delivery of our subscription services and professional services for which the related billings will occur in a future period. Unbilled accounts receivable consists of (i) revenue recognized for professional services performed but not yet billed and (ii) revenue recognized from non-cancelable, multi-year orders in which fees increase annually but for which we are not contractually able to invoice until a future period. Deferred Costs Deferred costs include sales commissions associated with obtaining a contract with a customer. These costs are deferred and then amortized over a period of benefit that we have determined to be three years . We determined the period of benefit by taking into consideration our customer contracts, our technology and other factors. Amortization expense is included in sales and marketing expenses in the accompanying condensed consolidated statements of operations. Deferred Revenue Deferred revenue is a contract liability primarily related to 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. Deferred revenue is recognized as revenue as we satisfy our performance obligations. 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. 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 included in other long-term liabilities on the condensed 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 by established financial institutions. We have established guidelines relative to credit ratings, diversification and maturities that seek to maintain safety and liquidity. Deposits in these financial institutions may significantly exceed federally insured limits. We do not require collateral from our customers and generally require payment within 30 days to 60 days of billing. 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: October 31, January 31, Customer 1 * 17% Customer 2 * 10% _________________________________________________________ * Does not exceed 10% . No single customer represented over 10% of total revenues in the condensed consolidated statements of comprehensive income for the three and nine months ended October 31, 2019 and 2018 . New Accounting Pronouncements Adopted in Fiscal 2020 Statement of Stockholders ’ Equity In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, amending certain disclosure requirements that have become redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders' equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders' equity presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. The final rule was effective November 5, 2018. As required by the SEC, we are presenting this analysis in this Form 10-Q for the three and nine months ended October 31, 2019 and 2018 . Leases In February 2016, the FASB issued Topic 842, which requires lessees to record most leases on their balance sheets but recognize the expenses on their statements of comprehensive income in a manner similar to current accounting rules. Topic 842 states that a lessee should recognize a lease liability for the obligation to make lease payments and a right-of-use (ROU) asset for the right to use the underlying asset for the lease term. The updated guidance is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. We have adopted this new standard in the first quarter of fiscal 2020 on February 1, 2019 using the effective date as our date of initial application. We adopted Topic 842 using the modified retrospective method as of February 1, 2019 with an immaterial amount of cumulative effect adjustment recorded to our retained earnings as of February 1, 2019. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before February 1, 2019. The new standard provides a number of optional practical expedients in transition. We elected the ‘package of practical expedients,’ which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification, and initial direct costs. The new standard also provides practical expedients for an entity’s ongoing accounting. We have elected the short-term lease recognition exemption for all of our leases. This means, for those leases that qualify, we will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. We did not apply the practical expedient for our office leases, which would have allowed us to combine lease and non-lease components for all of our office leases. However, we have applied the practical expedient for equipment leases, which has allowed us to combine lease and non-lease components for all of our equipment leases. The most significant impact was the recognition of ROU assets and lease liabilities on our balance sheet. Adoption of Topic 842 had no material impact to our condensed consolidated statement of comprehensive income and no material impact to cash provided by or used in operating, financing or investing activities on our condensed consolidated statement of cash flows. Intangibles and Goodwill In January 2017, the FASB issued ASU No. 2017-04, “ Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairment ” (Topic 350), which eliminates Step 2 from the goodwill impairment test. Under Topic 350, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. Topic 350 is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and early adoption is permitted for impairment tests performed on testing dates after January 1, 2017. Topic 350 is to be applied on a prospective basis. We early adopted this new standard during the fiscal quarter ended October 31, 2019, and it did not have an impact on our consolidated financial statements. Fair Value Measurement In August 2018, the FASB issued ASU No. 2018-13, “ Fair Value Measurement: Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement ” (Topic 820), which modifies the disclosure requirements on fair value measurements. The ASU removes the requirement to disclose: the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes for Level 3 fair value measurements. The standard is effective for interim and annual periods beginning after December 15, 2019, and early adoption is permitted. We early adopted this new standard during the fiscal quarter ended July 31, 2019. Because we do not have such transfers or Level 3 financial assets, this standard does not apply to our current disclosures, and it did not impact our previously reported financial statements for periods ended on or prior to July 31, 2019. |
Short-Term Investments
Short-Term Investments | 9 Months Ended |
Oct. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Short-Term Investments | 2. Short-Term Investments At October 31, 2019 , short-term investments consisted of the following (in thousands): Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Available-for-sale securities: Certificates of deposits $ 3,500 $ 5 $ — $ 3,505 Asset-backed securities 84,092 262 (6 ) 84,348 Commercial paper 24,604 4 (2 ) 24,606 Corporate notes and bonds 218,314 1,437 (26 ) 219,725 Foreign government bonds 1,500 — — 1,500 U.S. agency obligations 3,000 — — 3,000 U.S. treasury securities 265,123 616 (16 ) 265,723 Total available-for-sale securities $ 600,133 $ 2,324 $ (50 ) $ 602,407 At January 31, 2019 , short-term investments consisted of the following (in thousands): Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Available-for-sale securities: Certificates of deposits $ 6,001 $ 10 $ (1 ) $ 6,010 Asset-backed securities 78,682 13 (300 ) 78,395 Commercial paper 9,118 1 (2 ) 9,117 Corporate notes and bonds 185,409 178 (457 ) 185,130 Foreign government bonds 1,502 — (11 ) 1,491 U.S. agency obligations 15,912 2 (2 ) 15,912 U.S. treasury securities 243,119 78 (62 ) 243,135 Total available-for-sale securities $ 539,743 $ 282 $ (835 ) $ 539,190 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): October 31, January 31, Due in one year or less $ 351,301 $ 377,858 Due in greater than one year 251,106 161,332 Total $ 602,407 $ 539,190 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 condensed consolidated statements of comprehensive income. Any portion not related to credit loss would be included in accumulated other comprehensive income. There were no impairments considered other-than-temporary as of October 31, 2019 and January 31, 2019 . The following table shows the fair values of these available-for-sale securities, some of which have been in a gross unrealized loss position for more than 12 months, aggregated by investment category as of October 31, 2019 (in thousands): Fair value Gross unrealized losses Asset-backed securities $ 9,545 $ (6 ) Commercial paper 10,561 (2 ) Corporate notes and bonds 27,851 (26 ) U.S. treasury securities 33,093 (16 ) The following table shows the fair values of these available-for-sale securities, some of which have been in a gross unrealized loss position for more than 12 months , aggregated by investment category as of January 31, 2019 (in thousands): Fair value Gross unrealized losses Certificates of deposits $ 999 $ (1 ) Asset-backed securities 69,131 (300 ) Commercial paper 7,155 (2 ) Corporate notes and bonds 121,006 (457 ) Foreign government bonds 1,490 (11 ) U.S. agency obligations 14,928 (2 ) U.S. treasury securities 130,785 (62 ) |
Deferred Costs
Deferred Costs | 9 Months Ended |
Oct. 31, 2019 | |
Deferred Costs [Abstract] | |
Deferred Costs | Deferred Costs Deferred costs, which consist of deferred sales commissions, were $29.9 million and $30.9 million as of October 31, 2019 and January 31, 2019 , respectively. For the three and nine months ended October 31, 2019 , amortization expense for the deferred costs was $4.8 million and $14.5 million , respectively. For the three and nine months ended October 31, 2018 , amortization expense for the deferred costs was $4.6 million and $13.7 million , respectively. There have been no impairment losses recorded in relation to the costs capitalized for any period presented. |
Property and Equipment, Net
Property and Equipment, Net | 9 Months Ended |
Oct. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net consists of the following as of the dates shown (in thousands): October 31, January 31, Land $ 3,040 $ 3,040 Building 20,984 20,984 Land improvements and building improvements 22,392 20,911 Equipment and computers 8,494 7,945 Furniture and fixtures 11,484 11,230 Leasehold improvements 7,679 6,790 Construction in progress 257 330 74,330 71,230 Less accumulated depreciation (21,040 ) (16,264 ) Total property and equipment, net $ 53,290 $ 54,966 Total depreciation expense was $2.1 million and $6.2 million for the three and nine months ended October 31, 2019 , respectively, and $1.5 million and $4.7 million for the three and nine months ended October 31, 2018 . Land is not depreciated. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Oct. 31, 2019 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets | Intangible Assets The following schedule presents the details of intangible assets as of October 31, 2019 (dollar amounts in thousands): October 31, 2019 Gross carrying amount Accumulated amortization Net Remaining useful life (in years) Existing technology $ 3,880 $ (3,863 ) 17 0.4 Database 4,939 (4,789 ) 150 0.4 Customer contracts and relationships 33,643 (14,829 ) 18,814 5.9 Software 10,867 (9,900 ) 967 0.4 $ 53,329 $ (33,381 ) 19,948 The following schedule presents the details of intangible assets as of January 31, 2019 (dollar amounts in thousands): January 31, 2019 Gross carrying amount Accumulated amortization Net Remaining useful life (in years) Existing technology $ 3,880 $ (3,834 ) 46 1.2 Database 4,939 (4,521 ) 418 1.2 Customer contracts and relationships 33,643 (12,350 ) 21,293 6.6 Software 10,867 (8,156 ) 2,711 1.2 Brand 1,141 (1,088 ) 53 0.2 $ 54,470 $ (29,949 ) 24,521 Amortization expense associated with intangible assets was $1.5 million and $4.6 million for the three and nine months ended October 31, 2019 , respectively, and $1.7 million and $5.3 million for the three and nine months ended October 31, 2018 . The estimated amortization expense for intangible assets, for the next five years and thereafter is as follows as of October 31, 2019 (in thousands): Period Estimated amortization expense Remaining for Fiscal 2020 $ 1,489 Fiscal 2021 3,629 Fiscal 2022 3,182 Fiscal 2023 3,182 Fiscal 2024 3,182 Thereafter 5,284 Total $ 19,948 |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Oct. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consisted of the following as of the dates shown (in thousands): October 31, January 31, Accrued commissions $ 1,236 $ 2,633 Accrued bonus 3,773 2,848 Accrued vacation 3,830 3,110 Payroll tax payable 5,648 1,971 Accrued other compensation and benefits 1,490 4,762 Total accrued compensation and benefits $ 15,977 $ 15,324 Accrued fees payable to salesforce.com 5,655 5,242 Accrued third-party professional services subcontractors' fees 1,387 1,619 Taxes payable 3,338 2,805 Other accrued expenses 5,327 6,479 Total accrued expenses and other current liabilities $ 15,707 $ 16,145 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The carrying amounts of accounts receivable and other current assets, accounts payable and accrued liabilities approximate their fair value due to their short-term nature. Financial assets and liabilities recorded at fair value in the condensed consolidated financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, which are directly related to the amount of subjectivity associated with the inputs to the valuation of these assets or liabilities are as follows: Level 1—Observable inputs, such as quoted prices in active markets for identical assets or liabilities. Level 2—Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Financial assets and 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 October 31, 2019 (in thousands): Level 1 Level 2 Total Assets Cash equivalents: Money market funds $ 30,707 $ — $ 30,707 Corporate notes and bonds — 1,544 1,544 Short-term investments: Certificates of deposits — 3,505 3,505 Asset-backed securities — 84,348 84,348 Commercial paper — 24,606 24,606 Corporate notes and bonds — 219,725 219,725 Foreign government bonds — 1,500 1,500 U.S. agency obligations — 3,000 3,000 U.S. treasury securities — 265,723 265,723 Foreign currency derivative contracts — 59 59 Total $ 30,707 $ 604,010 $ 634,717 Liabilities Foreign currency derivative contracts — 35 35 Total $ — $ 35 $ 35 The following table presents the fair value hierarchy for financial assets measured at fair value on a recurring basis as of January 31, 2019 (in thousands): Level 1 Level 2 Total Assets Cash equivalents: Money market funds $ 39,168 $ — $ 39,168 Corporate notes and bonds — 1,034 1,034 U.S. treasury securities — 41,505 41,505 Short-term investments: Certificates of deposits — 6,010 6,010 Asset-backed securities — 78,395 78,395 Commercial paper — 9,117 9,117 Corporate notes and bonds — 185,130 185,130 Foreign government bonds — 1,491 1,491 U.S. agency obligations — 15,912 15,912 U.S. treasury securities — 243,135 243,135 Total $ 39,168 $ 581,729 $ 620,897 Liabilities Foreign currency derivative contracts — 88 88 Total $ — $ 88 $ 88 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 We enter 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 condensed consolidated statements of comprehensive income. Cash flows from such forward contracts are classified as operating activities. We recognized immaterial realized foreign currency gains and losses during the three and nine months ended October 31, 2019 , respectively, on hedging. Immaterial realized foreign currency losses and gains on hedging were recognized during the three and nine months ended October 31, 2018 , respectively. The fair value of our outstanding derivative instruments is summarized below (in thousands): October 31, January 31, Notional amount of foreign currency derivative contracts $ (3,913 ) $ (5,112 ) Fair value of foreign currency derivative contracts (3,937 ) (5,024 ) Details on outstanding balance sheet hedges are presented below as of the date shown below (in thousands): Derivatives not designated as hedging instruments Balance sheet location October 31, January 31, Derivative Assets Foreign currency derivative contracts Prepaid expenses and other current assets $ 59 $ — Derivative Liabilities Foreign currency derivative contracts Accrued expenses $ 35 $ 88 |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three months ended October 31, 2019 and 2018 , our effective tax rates were 8.6% and 5.3% , respectively. During the three months ended October 31, 2019 as compared to the prior year period, our effective tax rate increased primarily due to the reduction in excess tax benefits related to equity compensation. We recognized such excess tax benefits in our provision for income taxes of $8.9 million and $12.0 million for the three months ended October 31, 2019 and 2018 , respectively. For the nine months ended October 31, 2019 and 2018 , our effective tax rates were 5.4% and 6.6% , respectively. During the nine months ended October 31, 2019 as compared to the prior year period, our effective tax rate decreased primarily due to an increase in excess tax benefits related to equity compensation. We recognized such excess tax benefits in our provision for income taxes of $39.5 million and $31.0 million for the nine months ended October 31, 2019 and 2018 |
Deferred Revenue and Performanc
Deferred Revenue and Performance Obligations | 9 Months Ended |
Oct. 31, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Deferred Revenue and Performance Obligations | Deferred Revenue and Performance Obligations Of the beginning deferred revenue balance for the respective periods, we recognized $178.2 million and $311.2 million of subscription services revenue during the three and nine months ended October 31, 2019 , respectively, and $142.7 million and $240.4 million during the three and nine months ended October 31, 2018 , respectively. Professional services revenue recognized in the same periods from deferred revenue balances at the beginning of the respective periods was immaterial. Transaction Price Allocated to the Remaining Performance Obligations Transaction price allocated to the remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and non-cancelable amounts that will be invoiced and recognized as revenues in future periods. We applied the practical expedient in accordance with ASU 2014-09, “ Revenue from Contracts with Customers ” (Topic 606) to exclude the amounts related to professional services contracts as these contracts generally have a remaining duration of one year or less. Revenue from remaining performance obligations for professional services contracts as of October 31, 2019 was immaterial. As of October 31, 2019 , approximately $567.5 million of revenue is expected to be recognized from remaining performance obligations for subscription services contracts. We expect to recognize revenue on approximately $418.6 million of these remaining performance obligations over the next 12 months , with the balance recognized thereafter. |
Leases
Leases | 9 Months Ended |
Oct. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases We have operating and finance leases for corporate offices, data centers, and certain equipment. Our leases have various expiration dates through 2029, some of which include options to extend the leases for up to nine years . Additionally, we are the sublessor for certain office space. Our sublease income for the three and nine months ended October 31, 2019 was immaterial. Lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. We use an estimate of our discount rate based on the information available at the lease commencement date in determining the present value of lease payments, unless the implicit rate is readily determinable. For leases which commenced prior to our adoption of Topic 842, we used the discount rate on February 1, 2019. The lease right-of-use assets also include any lease payments made and exclude lease incentives such as tenant improvement allowances. Options to extend the lease term are included in the lease term when it is reasonably certain that we will exercise the extension option. Our operating leases typically include non-lease components such as common-area maintenance costs. We have elected to exclude non-lease components from lease payments for the purpose of calculating lease right-of-use assets and liabilities. Non-lease components that are not fixed are expensed as incurred as variable lease payments. Leases with a term of one year or less are not recognized on our consolidated balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. For the three and nine months ended October 31, 2019 , our operating lease expense was $1.8 million and $5.0 million , respectively. Our finance lease expense was immaterial and $1.0 million for the three and nine months ended October 31, 2019 , respectively. Supplemental cash flow information related to leases was as follows (in thousands): Nine months ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,131 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 11,656 Supplemental balance sheet information related to leases was as follows (in thousands, except lease term and discount rate): As of Operating Leases Lease right-of-use-assets $ 24,055 Lease liabilities $ 6,401 Lease liabilities, noncurrent 19,261 Total operating lease liabilities $ 25,662 Finance Leases Property and equipment, at cost $ 1,738 Accumulated depreciation (978 ) Property and equipment, net $ 760 Lease liabilities $ 1,029 Lease liabilities, noncurrent 621 Total finance lease liabilities $ 1,650 Weighted Average Remaining Lease Term Operating leases 5.2 years Finance leases 1.6 years Weighted Average Discount Rate Operating leases 4.3 % Finance leases 4.3 % Maturities of lease liabilities were as follows (in thousands): Period Operating leases Finance leases Remaining for Fiscal 2020 $ 1,787 $ 269 Fiscal 2021 7,178 1,076 Fiscal 2022 6,109 359 Fiscal 2023 4,119 — Fiscal 2024 3,208 — Thereafter 6,365 — Total lease payments 28,766 1,704 Less imputed interest (3,104 ) (54 ) Total $ 25,662 $ 1,650 Future minimum lease payments under non-cancelable operating leases as of January 31, 2019 under ASC 840 were as follows (in thousands): Period Operating leases Fiscal 2020 $ 5,079 Fiscal 2021 4,843 Fiscal 2022 4,063 Fiscal 2023 2,534 Fiscal 2024 1,884 Thereafter 1,495 Total $ 19,898 As of October 31, 2019 , we have additional operating leases, primarily for office leases, that have not yet commenced of $3.3 million . These operating leases will commence during the fiscal year ending January 31, 2021 with lease terms of less than one year to five years . |
Leases | Leases We have operating and finance leases for corporate offices, data centers, and certain equipment. Our leases have various expiration dates through 2029, some of which include options to extend the leases for up to nine years . Additionally, we are the sublessor for certain office space. Our sublease income for the three and nine months ended October 31, 2019 was immaterial. Lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. We use an estimate of our discount rate based on the information available at the lease commencement date in determining the present value of lease payments, unless the implicit rate is readily determinable. For leases which commenced prior to our adoption of Topic 842, we used the discount rate on February 1, 2019. The lease right-of-use assets also include any lease payments made and exclude lease incentives such as tenant improvement allowances. Options to extend the lease term are included in the lease term when it is reasonably certain that we will exercise the extension option. Our operating leases typically include non-lease components such as common-area maintenance costs. We have elected to exclude non-lease components from lease payments for the purpose of calculating lease right-of-use assets and liabilities. Non-lease components that are not fixed are expensed as incurred as variable lease payments. Leases with a term of one year or less are not recognized on our consolidated balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. For the three and nine months ended October 31, 2019 , our operating lease expense was $1.8 million and $5.0 million , respectively. Our finance lease expense was immaterial and $1.0 million for the three and nine months ended October 31, 2019 , respectively. Supplemental cash flow information related to leases was as follows (in thousands): Nine months ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,131 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 11,656 Supplemental balance sheet information related to leases was as follows (in thousands, except lease term and discount rate): As of Operating Leases Lease right-of-use-assets $ 24,055 Lease liabilities $ 6,401 Lease liabilities, noncurrent 19,261 Total operating lease liabilities $ 25,662 Finance Leases Property and equipment, at cost $ 1,738 Accumulated depreciation (978 ) Property and equipment, net $ 760 Lease liabilities $ 1,029 Lease liabilities, noncurrent 621 Total finance lease liabilities $ 1,650 Weighted Average Remaining Lease Term Operating leases 5.2 years Finance leases 1.6 years Weighted Average Discount Rate Operating leases 4.3 % Finance leases 4.3 % Maturities of lease liabilities were as follows (in thousands): Period Operating leases Finance leases Remaining for Fiscal 2020 $ 1,787 $ 269 Fiscal 2021 7,178 1,076 Fiscal 2022 6,109 359 Fiscal 2023 4,119 — Fiscal 2024 3,208 — Thereafter 6,365 — Total lease payments 28,766 1,704 Less imputed interest (3,104 ) (54 ) Total $ 25,662 $ 1,650 Future minimum lease payments under non-cancelable operating leases as of January 31, 2019 under ASC 840 were as follows (in thousands): Period Operating leases Fiscal 2020 $ 5,079 Fiscal 2021 4,843 Fiscal 2022 4,063 Fiscal 2023 2,534 Fiscal 2024 1,884 Thereafter 1,495 Total $ 19,898 As of October 31, 2019 , we have additional operating leases, primarily for office leases, that have not yet commenced of $3.3 million . These operating leases will commence during the fiscal year ending January 31, 2021 with lease terms of less than one year to five years . |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Oct. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Beginning in the fiscal quarter ended April 30, 2019, we implemented a new equity compensation program applicable to the vast majority of our employees but not applicable to our Chief Executive Officer (CEO). Prior to the adoption of the new equity compensation program, at the time of hire, our employees received a grant of RSUs that vested quarterly over four years and received additional equity from time to time thereafter. Under the new equity compensation program, the vast majority of our employees are granted both RSUs, which typically vest over a one-year period, and stock options, which typically vest over a four-year period. Stock Option Activity A summary of stock option activity for the nine months ended October 31, 2019 is as follows: Number of shares Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Options outstanding at January 31, 2019 12,961,397 $ 19.43 5.4 $ 1,161,695,032 Options granted 1,475,355 Options exercised (1,225,746 ) Options forfeited/cancelled (318,028 ) Options outstanding at October 31, 2019 12,892,978 $ 33.25 5.2 $ 1,401,940,929 Options vested and exercisable at October 31, 2019 6,704,980 $ 5.96 3.4 $ 911,013,694 Options vested and exercisable at October 31, 2019 and 12,892,978 $ 33.25 5.2 $ 1,401,940,929 During the three and nine months ended October 31, 2019 , we granted 120,010 and 1,475,355 stock options, respectively, under the 2013 Equity Incentive Plan (2013 EIP). The options granted during the nine months ended October 31, 2019 reflects grants predominantly made in connection with our annual performance review cycle. The weighted average grant-date fair value of options granted was $64.07 and $59.00 for the three and nine months ended October 31, 2019 , respectively. As of October 31, 2019 , there was $147.9 million in unrecognized compensation cost related to unvested stock options granted under the 2007 Stock Plan, 2012 Equity Incentive Plan and 2013 EIP. This cost is expected to be recognized over a weighted average period of 3.8 years . As of October 31, 2019 , we had authorized and unissued shares of common stock sufficient to satisfy exercises of stock options. The total intrinsic value of options exercised was approximately $31.1 million and $166.9 million for the three and nine months ended October 31, 2019 , respectively. Restricted Stock Units A summary of restricted stock unit (RSU) activity for the nine months ended October 31, 2019 is as follows: Unreleased restricted stock units Weighted average grant date fair value Balance at January 31, 2019 2,359,132 $ 54.73 RSUs granted 278,053 138.22 RSUs vested (945,117 ) 54.42 RSUs forfeited/cancelled (163,375 ) 59.59 Balance at October 31, 2019 1,528,693 $ 69.59 During the three months ended October 31, 2019 , we granted 51,995 RSUs under the 2013 EIP with a weighted-average grant date fair value of $150.53 . During the nine months ended October 31, 2019 , we granted 278,053 RSUs under the 2013 EIP with a weighted-average grant date fair value of $138.22 . As of October 31, 2019 , there was a total of $94.9 million in unrecognized compensation cost related to unvested RSUs. This cost is expected to be recognized over a weighted-average period of approximately 1.8 years . The total intrinsic value of RSUs vested was $48.0 million and $136.0 million for the three and nine months ended October 31, 2019 , respectively. Stock-Based Compensation Compensation expense related to share-based transactions, including equity awards to employees and non-employee directors, is measured and recognized in the condensed consolidated financial statements based on fair value. The grant date 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, the grant date fair value is based on the closing price of our common stock on the grant date. Our option-pricing model requires the input of subjective assumptions, including the fair value of the underlying common stock, the expected term of the option, the expected volatility of the price of our common stock, risk-free interest rates, and the expected dividend yield of our common stock. The assumptions used in our option-pricing model represent management’s best estimates. These estimates involve inherent uncertainties and the application of management’s judgment. If factors change and different assumptions are used, our stock-based compensation expense could be materially different in the future. The following table presents the weighted-average assumptions used to estimate the grant date fair value of options granted during the periods presented: Three months ended Nine months ended 2019 2018 2019 2018 Volatility 41% —% 41% 41% Expected term (in years) 6.25 — 5.75 - 6.35 6.35 Risk-free interest rate 1.39% - 1.64% —% 1.39% - 2.52% 2.73% Dividend yield —% —% —% —% During the fiscal year 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 — % For the periods presented, we capitalized an immaterial amount of stock-based compensation as part of our internal-use software capitalization. |
Net Income per Share
Net Income per Share | 9 Months Ended |
Oct. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income per Share | Net Income per Share Basic net income per share is computed by dividing the net income by the weighted-average number of shares of common stock outstanding during the period. Unvested shares of common stock resulting from the early exercises of stock options are excluded from the calculation of the weighted-average shares of common stock until they vest as they are subject to repurchase until they are vested. Diluted net income per share is computed by dividing net income by the weighted-average shares outstanding, including potentially dilutive shares of common equivalents outstanding during the period. The dilutive effect of potential shares of common stock are determined using the treasury stock method. The computation of the fully diluted net income per share of Class A common stock assumes the conversion from Class B common stock, while the fully diluted net income per share of Class B common stock does not assume the conversion of those shares. The numerators and denominators of the basic and diluted EPS computations for our common stock are calculated as follows (in thousands, except per share data): Three months ended October 31, Nine months ended October 31, 2019 2018 2019 2018 Class A Class B Class A Class B Class A Class B Class A Class B Basic Numerator Net income, basic $ 73,120 $ 9,125 $ 54,592 $ 9,493 $ 206,862 $ 28,074 $ 133,568 $ 25,113 Denominator Weighted average shares used in computing net income per share, basic 131,720 16,437 123,297 21,440 129,845 17,622 121,013 22,752 Net income per share, basic $ 0.56 $ 0.56 $ 0.44 $ 0.44 $ 1.59 $ 1.59 $ 1.10 $ 1.10 Diluted Numerator Net income, basic $ 73,120 $ 9,125 $ 54,592 $ 9,493 $ 206,862 $ 28,074 $ 133,568 $ 25,113 Reallocation as a result of conversion of Class B to Class A common stock: Net income, basic 9,125 — 9,493 — 28,074 — 25,113 — Reallocation of net income to Class B common stock — 4,879 — 3,950 — 13,942 — 10,243 Net income, diluted $ 82,245 $ 14,004 $ 64,085 $ 13,443 $ 234,936 $ 42,016 $ 158,681 $ 35,356 Denominator Number of shares used for basic EPS computation 131,720 16,437 123,297 21,440 129,845 17,622 121,013 22,752 Conversion of Class B to Class A common stock 16,437 — 21,440 — 17,622 — 22,752 — Effect of potentially dilutive common shares 10,593 10,593 11,288 11,288 10,657 10,657 11,941 11,941 Weighted average shares used in computing net income per share, diluted 158,750 27,030 156,025 32,728 158,124 28,279 155,706 34,693 Net income per share, diluted $ 0.52 $ 0.52 $ 0.41 $ 0.41 $ 1.49 $ 1.49 $ 1.02 $ 1.02 Potential common share equivalents excluded where the inclusion would be anti-dilutive are as follows: Three months ended Nine months ended 2019 2018 2019 2018 Options and awards to purchase shares not included in the computation of diluted net income per share because their inclusion would be anti-dilutive 1,362,085 3,066,006 1,037,362 3,065,009 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation IQVIA Litigation Matters. Veeva OpenData and Veeva Network Action. On January 10, 2017 , IQVIA Inc. (formerly Quintiles IMS Incorporated) and IMS Software Services, Ltd. (collectively, “IQVIA”) filed a complaint against us in the U.S. District Court for the District of New Jersey (IQVIA Inc. v. Veeva Systems Inc. (No. 2:17-cv-00177)) (“OpenData and Network Action”). 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 misappropriation of trade secret laws, federal false advertising law, and common law claims for unjust enrichment, tortious interference, and unfair trade practices. The complaint seeks declaratory and injunctive relief and unspecified monetary damages. On March 13, 2017, we filed our answer and counterclaims in the OpenData and Network Action. 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. As amended, our counterclaims assert federal and state antitrust claims, as well as claims under California’s Unfair Practices Act and common law claims for intentional interference with contractual relations, intentional interference with prospective economic advantage, and negligent misrepresentation. The counterclaims seek injunctive relief, monetary damages exceeding $200 million , and attorneys’ fees. On May 3, 2017, in lieu of filing an answer, IQVIA filed a motion to dismiss our counterclaims. On October 3, 2018, the court denied IQVIA’s motion to dismiss and allowed our antitrust claims to proceed. In addition, on December 3, 2018, we filed an amended answer and counterclaims. IQVIA filed its answer and affirmative defenses on December 21, 2018. There are no motions currently pending in the OpenData and Network Action that have the potential to end the case prior to trial. Discovery in that case is currently in process. Although no trial date has been set, we expect, based on the current case schedule, that trial could take place in 2021 or 2022. 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 Nitro Action. On July 17, 2019, IQVIA filed a lawsuit in the U.S. District Court for the District of New Jersey (IQVIA Inc. v. Veeva Systems Inc. (No. 2:19-cv-15517)) (“IQVIA Declaratory Action”) seeking a declaratory judgment that IQVIA is not liable to Veeva for disallowing use of IQVIA’s data products in Veeva Nitro or any later-introduced Veeva SaaS products. The IQVIA Declaratory Action does not seek any monetary relief. On July 18, 2019, we filed a lawsuit against IQVIA in the U.S. District Court for the Northern District of California (Veeva Systems Inc. v. IQVIA Inc. (No. 3:19-cv-04137)) (“Veeva Nitro Action”), alleging that IQVIA engaged in anticompetitive conduct as to Veeva Nitro. Our complaint asserts federal and state antitrust claims, as well as claims under California’s Unfair Competition Law and common law claims for intentional interference with contractual relations and intentional interference with prospective economic advantage. The complaint seeks injunctive relief and monetary damages. IQVIA filed its answer and affirmative defenses on September 5, 2019. On September 26, 2019, the Northern District of California transferred the Veeva Nitro Action to the U.S. District Court for the District of New Jersey. On October 1, 2019, we filed a notice of our intent to withdraw the motion to dismiss or transfer the IQVIA Declaratory Action that we had filed in the District of New Jersey. There are no motions currently pending in the IQVIA Declaratory Action or the Veeva Nitro Action that have the potential to end the cases. The court has not yet held a scheduling conference to set the case management schedule. While it is not possible at this time to predict with any degree of certainty the ultimate outcome of these two actions, we believe that our claims warrant injunctive relief and monetary damages for Veeva and against IQVIA. Medidata Litigation Matter. On January 26, 2017 , Medidata Solutions, Inc. filed a complaint in the U.S. District Court for the Southern District of New York ( Medidata Solutions, Inc. v. Veeva Systems Inc. et al. (No. 1:17-cv-00589)) against us and five individual Veeva employees who previously worked for Medidata (“Individual Employees”). The complaint alleged that we induced and conspired with the Individual Employees to breach their employment agreements, including non-compete and confidentiality provisions, and to misappropriate Medidata’s confidential and trade secret information. The complaint sought declaratory and injunctive relief, unspecified monetary damages, and attorneys’ fees. Medidata has since amended its complaint twice, asserting the same claims with additional factual allegations, and has voluntarily dismissed the Individual Defendants without prejudice. After Veeva's motion to dismiss was denied, Veeva filed its answer on December 10, 2018. There are no motions currently pending in the Medidata case that have the potential to end the case prior to trial. Discovery in the Medidata litigation is currently in process and no trial date has been set. 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 Medidata’s claims lack merit. 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. 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 . We have met our first minimum order requirement commitment of $250 million , and as of October 31, 2019 , we remained obligated to pay fees of at least $159.8 million prior to September 1, 2025 in connection with this agreement. |
Revenues by Product
Revenues by Product | 9 Months Ended |
Oct. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues by Product | Revenues by Product Our industry cloud solutions are grouped into two key product areas—Veeva Commercial Cloud and Veeva Vault. Veeva Commercial Cloud is a suite of multichannel CRM applications, territory allocation and alignment applications, master data management applications, customer reference and key opinion leader data, and data services. Veeva Vault is a unified suite of cloud-based, enterprise content and data management applications. Total revenues consist of the following (in thousands): Three months ended Nine months ended 2019 2018 2019 2018 Subscription services Veeva Commercial Cloud $ 115,201 $ 99,906 333,591 $ 290,944 Veeva Vault (1) 111,559 78,308 308,596 212,865 Total subscription services $ 226,760 $ 178,214 $ 642,187 $ 503,809 Professional services Veeva Commercial Cloud $ 18,589 $ 16,212 52,381 $ 47,143 Veeva Vault (1) 35,572 30,305 98,005 78,935 Total professional services $ 54,161 $ 46,517 $ 150,386 $ 126,078 Total revenues $ 280,921 $ 224,731 $ 792,573 $ 629,887 _________________________________________________________ (1) Veeva Vault revenues includes revenue from legacy Zinc Ahead products. |
Information about Geographic Ar
Information about Geographic Areas | 9 Months Ended |
Oct. 31, 2019 | |
Segment Reporting [Abstract] | |
Information about Geographic Areas | Information about Geographic Areas We track and allocate revenues by principal geographic area rather than by individual country, which makes it impractical to disclose revenues for the United States or other specific foreign countries. We measure subscription services revenue primarily by the estimated location of the end users in each geographic area for Veeva Commercial Cloud and primarily by the estimated location of usage in each geographic area for Veeva Vault. We measure professional services revenue primarily by the location of the resources performing the professional services. Beginning with the fiscal quarter ended October 31, 2019, certain revenues by geographic areas have been reclassified. Prior periods have been adjusted to reflect this change, and the effect of this change is not material for any period previously presented. Total revenues by geographic area were as follows for the periods shown below (in thousands): Three months ended October 31, Nine months ended 2019 2018 2019 2018 Revenues by geography North America $ 153,005 $ 126,262 $ 430,441 $ 352,697 Europe 79,832 59,371 226,026 164,943 Asia Pacific 39,057 31,880 110,560 91,532 Rest of world (1) 9,027 7,218 25,546 20,715 Total revenues $ 280,921 $ 224,731 $ 792,573 $ 629,887 _________________________________________________________ (1) Middle East, Africa, and Latin America Long-lived assets by geographic area are as follows as of the periods shown below (in thousands): October 31, January 31, 2019 2019 Long-lived assets by geography North America $ 49,500 $ 51,748 Europe and rest of world 2,299 1,783 Asia Pacific 1,491 1,435 Total long-lived assets $ 53,290 $ 54,966 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Oct. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On November 1, 2019, we completed our acquisition of Crossix Solutions Inc., a provider of privacy-safe patient data and analytics, in exchange for total cash consideration of $431.8 million , which includes the impact of adjustments to purchase price associated with the cash and net working capital of the acquired entity at close. In addition, we granted certain Crossix employees equity retention awards valued at approximately $120 million in the aggregate. We are currently evaluating the purchase price allocation for this transaction. It is not practicable to disclose the preliminary purchase price allocation, given the short period of time between the acquisition date and the issuance of these condensed consolidated financial statements. On November 7, 2019, we completed our acquisition of Physicians World LLC, a provider of speakers bureau services for healthcare professionals, in exchange for total cash consideration of $41.4 million , which includes the impact of adjustments to purchase price associated with the cash and net working capital of the acquired entity at close. In addition, we granted certain Physicians World employees equity retention awards valued at approximately $15 million in the aggregate. We are currently evaluating the purchase price allocation for this transaction. It is not practicable to disclose the preliminary purchase price allocation, given the short period of time between the acquisition date and the issuance of these condensed consolidated financial statements. |
Summary of Business and Signi_2
Summary of Business and Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 31, 2019 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business Veeva is the 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 solutions 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 solutions are designed to help life sciences companies develop and bring products to market faster and more efficiently, market and sell more effectively, and maintain compliance with government regulations. Veeva is also offering its content and data management solutions to companies in other regulated industries, primarily consumer packaged goods, chemicals, and cosmetics. Our fiscal year end is January 31. |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation These unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting and include the accounts of our wholly-owned subsidiaries after elimination of intercompany accounts and transactions. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2019 , filed on March 28, 2019. There have been no changes to our significant accounting policies described in the annual report that have had a material impact on our condensed consolidated financial statements and related notes. The condensed consolidated balance sheet as of January 31, 2019 included herein was derived from the audited financial statements as of that date. These unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly our financial position, results of operations, comprehensive income, and cash flows for the interim periods but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year ending January 31, 2020 or any other period. Effective February 1, 2019, we adopted the requirements of ASU 2016-02, “ Leases ” (Topic 842) as discussed in this note. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires us to make estimates, judgments and assumptions that affect the condensed consolidated financial statements and the notes thereto. These estimates are based on information available as of the date of the condensed consolidated financial statements. On a regular basis, management evaluates these estimates and assumptions. Items subject to such estimates and assumptions include, but are not limited to: • the standalone selling price for each distinct performance obligation included in customer contracts with multiple performance obligations; • the valuation of short-term investments and the determination of other-than-temporary impairments; • the realizability of deferred income tax assets and liabilities; and • the fair value of our stock-based awards. As future events cannot be determined with precision, actual results could differ significantly from those estimates. |
Revenue Recognition | Revenue Recognition We derive our revenues primarily from subscription services and professional services. Subscription services revenues consist of fees from customers accessing our cloud-based software solutions and subscription or license fees for our data solutions. Professional services and other revenues consist primarily of fees from implementation services, configuration, data services, training, and managed services related to our solutions. Revenues are recognized when control of these services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those services. We determine revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when, or as, we satisfy a performance obligation. Our subscription services agreements are generally non-cancelable during the term, although customers typically have the right to terminate their agreements for cause in the event of material breach. Subscription Services Revenues Subscription services revenues are recognized ratably over the respective non-cancelable subscription term because of the continuous transfer of control to the customer. Our subscription arrangements are considered service contracts, and the customer does not have the right to take possession of the software. Professional Services and Other Revenues The majority of our professional services arrangements are billed on a time and materials basis and revenues are recognized over time based on time incurred and contractually agreed upon rates. Certain professional services revenues are billed on a fixed fee basis and revenues are typically recognized over time based on the proportion of total services performed. Data services and training revenues are generally recognized as the services are performed. Contracts with Multiple Performance Obligations Some of our contracts with customers contain multiple performance obligations. For these contracts, we account for individual performance obligations separately when they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. We determine the standalone selling prices based on our overall pricing objectives, taking into consideration market conditions and other factors, including other groupings such as customer type and geography. Unbilled Accounts Receivable Unbilled accounts receivable is a contract asset related to the delivery of our subscription services and professional services for which the related billings will occur in a future period. Unbilled accounts receivable consists of (i) revenue recognized for professional services performed but not yet billed and (ii) revenue recognized from non-cancelable, multi-year orders in which fees increase annually but for which we are not contractually able to invoice until a future period. Deferred Revenue Deferred revenue is a contract liability primarily related to 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. Deferred revenue is recognized as revenue as we satisfy our performance obligations. 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. 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 included in other long-term liabilities on the condensed consolidated balance sheet. |
Deferred Costs | Deferred Costs Deferred costs include sales commissions associated with obtaining a contract with a customer. These costs are deferred and then amortized over a period of benefit that we have determined to be three years . We determined the period of benefit by taking into consideration our customer contracts, our technology and other factors. Amortization expense is included in sales and marketing expenses in the accompanying condensed consolidated statements of operations. |
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 by established financial institutions. We have established guidelines relative to credit ratings, diversification and maturities that seek to maintain safety and liquidity. Deposits in these financial institutions may significantly exceed federally insured limits. We do not require collateral from our customers and generally require payment within 30 days to 60 days of billing. 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. |
New Accounting Pronouncements Adopted in Fiscal 2020 | New Accounting Pronouncements Adopted in Fiscal 2020 Statement of Stockholders ’ Equity In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, amending certain disclosure requirements that have become redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders' equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders' equity presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. The final rule was effective November 5, 2018. As required by the SEC, we are presenting this analysis in this Form 10-Q for the three and nine months ended October 31, 2019 and 2018 . Leases In February 2016, the FASB issued Topic 842, which requires lessees to record most leases on their balance sheets but recognize the expenses on their statements of comprehensive income in a manner similar to current accounting rules. Topic 842 states that a lessee should recognize a lease liability for the obligation to make lease payments and a right-of-use (ROU) asset for the right to use the underlying asset for the lease term. The updated guidance is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. We have adopted this new standard in the first quarter of fiscal 2020 on February 1, 2019 using the effective date as our date of initial application. We adopted Topic 842 using the modified retrospective method as of February 1, 2019 with an immaterial amount of cumulative effect adjustment recorded to our retained earnings as of February 1, 2019. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before February 1, 2019. The new standard provides a number of optional practical expedients in transition. We elected the ‘package of practical expedients,’ which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification, and initial direct costs. The new standard also provides practical expedients for an entity’s ongoing accounting. We have elected the short-term lease recognition exemption for all of our leases. This means, for those leases that qualify, we will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. We did not apply the practical expedient for our office leases, which would have allowed us to combine lease and non-lease components for all of our office leases. However, we have applied the practical expedient for equipment leases, which has allowed us to combine lease and non-lease components for all of our equipment leases. The most significant impact was the recognition of ROU assets and lease liabilities on our balance sheet. Adoption of Topic 842 had no material impact to our condensed consolidated statement of comprehensive income and no material impact to cash provided by or used in operating, financing or investing activities on our condensed consolidated statement of cash flows. Intangibles and Goodwill In January 2017, the FASB issued ASU No. 2017-04, “ Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairment ” (Topic 350), which eliminates Step 2 from the goodwill impairment test. Under Topic 350, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. Topic 350 is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and early adoption is permitted for impairment tests performed on testing dates after January 1, 2017. Topic 350 is to be applied on a prospective basis. We early adopted this new standard during the fiscal quarter ended October 31, 2019, and it did not have an impact on our consolidated financial statements. Fair Value Measurement In August 2018, the FASB issued ASU No. 2018-13, “ Fair Value Measurement: Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement ” (Topic 820), which modifies the disclosure requirements on fair value measurements. The ASU removes the requirement to disclose: the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes for Level 3 fair value measurements. The standard is effective for interim and annual periods beginning after December 15, 2019, and early adoption is permitted. We early adopted this new standard during the fiscal quarter ended July 31, 2019. Because we do not have such transfers or Level 3 financial assets, this standard does not apply to our current disclosures, and it did not impact our previously reported financial statements for periods ended on or prior to July 31, 2019. |
Net Income per Share Attributable to Common Stockholders | Basic net income per share is computed by dividing the net income by the weighted-average number of shares of common stock outstanding during the period. Unvested shares of common stock resulting from the early exercises of stock options are excluded from the calculation of the weighted-average shares of common stock until they vest as they are subject to repurchase until they are vested. Diluted net income per share is computed by dividing net income by the weighted-average shares outstanding, including potentially dilutive shares of common equivalents outstanding during the period. The dilutive effect of potential shares of common stock are determined using the treasury stock method. The computation of the fully diluted net income per share of Class A common stock assumes the conversion from Class B common stock, while the fully diluted net income per share of Class B common stock does not assume the conversion of those shares. |
Summary of Business and Signi_3
Summary of Business and Significant Accounting Policies (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Certain Risks and Concentrations of Credit Risk | The following customers individually exceeded 10% of total accounts receivable as of the dates shown: October 31, January 31, Customer 1 * 17% Customer 2 * 10% _________________________________________________________ * Does not exceed 10% . |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Short-Term Investments | At October 31, 2019 , short-term investments consisted of the following (in thousands): Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Available-for-sale securities: Certificates of deposits $ 3,500 $ 5 $ — $ 3,505 Asset-backed securities 84,092 262 (6 ) 84,348 Commercial paper 24,604 4 (2 ) 24,606 Corporate notes and bonds 218,314 1,437 (26 ) 219,725 Foreign government bonds 1,500 — — 1,500 U.S. agency obligations 3,000 — — 3,000 U.S. treasury securities 265,123 616 (16 ) 265,723 Total available-for-sale securities $ 600,133 $ 2,324 $ (50 ) $ 602,407 At January 31, 2019 , short-term investments consisted of the following (in thousands): Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Available-for-sale securities: Certificates of deposits $ 6,001 $ 10 $ (1 ) $ 6,010 Asset-backed securities 78,682 13 (300 ) 78,395 Commercial paper 9,118 1 (2 ) 9,117 Corporate notes and bonds 185,409 178 (457 ) 185,130 Foreign government bonds 1,502 — (11 ) 1,491 U.S. agency obligations 15,912 2 (2 ) 15,912 U.S. treasury securities 243,119 78 (62 ) 243,135 Total available-for-sale securities $ 539,743 $ 282 $ (835 ) $ 539,190 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): October 31, January 31, Due in one year or less $ 351,301 $ 377,858 Due in greater than one year 251,106 161,332 Total $ 602,407 $ 539,190 |
Schedule of Fair Values and Gross Unrealized Loss Position of Available-for-Sale Securities Aggregated by Investment Category | The following table shows the fair values of these available-for-sale securities, some of which have been in a gross unrealized loss position for more than 12 months, aggregated by investment category as of October 31, 2019 (in thousands): Fair value Gross unrealized losses Asset-backed securities $ 9,545 $ (6 ) Commercial paper 10,561 (2 ) Corporate notes and bonds 27,851 (26 ) U.S. treasury securities 33,093 (16 ) The following table shows the fair values of these available-for-sale securities, some of which have been in a gross unrealized loss position for more than 12 months , aggregated by investment category as of January 31, 2019 (in thousands): Fair value Gross unrealized losses Certificates of deposits $ 999 $ (1 ) Asset-backed securities 69,131 (300 ) Commercial paper 7,155 (2 ) Corporate notes and bonds 121,006 (457 ) Foreign government bonds 1,490 (11 ) U.S. agency obligations 14,928 (2 ) U.S. treasury securities 130,785 (62 ) |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consists of the following as of the dates shown (in thousands): October 31, January 31, Land $ 3,040 $ 3,040 Building 20,984 20,984 Land improvements and building improvements 22,392 20,911 Equipment and computers 8,494 7,945 Furniture and fixtures 11,484 11,230 Leasehold improvements 7,679 6,790 Construction in progress 257 330 74,330 71,230 Less accumulated depreciation (21,040 ) (16,264 ) Total property and equipment, net $ 53,290 $ 54,966 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Details of Intangible Assets | The following schedule presents the details of intangible assets as of October 31, 2019 (dollar amounts in thousands): October 31, 2019 Gross carrying amount Accumulated amortization Net Remaining useful life (in years) Existing technology $ 3,880 $ (3,863 ) 17 0.4 Database 4,939 (4,789 ) 150 0.4 Customer contracts and relationships 33,643 (14,829 ) 18,814 5.9 Software 10,867 (9,900 ) 967 0.4 $ 53,329 $ (33,381 ) 19,948 The following schedule presents the details of intangible assets as of January 31, 2019 (dollar amounts in thousands): January 31, 2019 Gross carrying amount Accumulated amortization Net Remaining useful life (in years) Existing technology $ 3,880 $ (3,834 ) 46 1.2 Database 4,939 (4,521 ) 418 1.2 Customer contracts and relationships 33,643 (12,350 ) 21,293 6.6 Software 10,867 (8,156 ) 2,711 1.2 Brand 1,141 (1,088 ) 53 0.2 $ 54,470 $ (29,949 ) 24,521 |
Estimated Amortization Expense | The estimated amortization expense for intangible assets, for the next five years and thereafter is as follows as of October 31, 2019 (in thousands): Period Estimated amortization expense Remaining for Fiscal 2020 $ 1,489 Fiscal 2021 3,629 Fiscal 2022 3,182 Fiscal 2023 3,182 Fiscal 2024 3,182 Thereafter 5,284 Total $ 19,948 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following as of the dates shown (in thousands): October 31, January 31, Accrued commissions $ 1,236 $ 2,633 Accrued bonus 3,773 2,848 Accrued vacation 3,830 3,110 Payroll tax payable 5,648 1,971 Accrued other compensation and benefits 1,490 4,762 Total accrued compensation and benefits $ 15,977 $ 15,324 Accrued fees payable to salesforce.com 5,655 5,242 Accrued third-party professional services subcontractors' fees 1,387 1,619 Taxes payable 3,338 2,805 Other accrued expenses 5,327 6,479 Total accrued expenses and other current liabilities $ 15,707 $ 16,145 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
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 October 31, 2019 (in thousands): Level 1 Level 2 Total Assets Cash equivalents: Money market funds $ 30,707 $ — $ 30,707 Corporate notes and bonds — 1,544 1,544 Short-term investments: Certificates of deposits — 3,505 3,505 Asset-backed securities — 84,348 84,348 Commercial paper — 24,606 24,606 Corporate notes and bonds — 219,725 219,725 Foreign government bonds — 1,500 1,500 U.S. agency obligations — 3,000 3,000 U.S. treasury securities — 265,723 265,723 Foreign currency derivative contracts — 59 59 Total $ 30,707 $ 604,010 $ 634,717 Liabilities Foreign currency derivative contracts — 35 35 Total $ — $ 35 $ 35 The following table presents the fair value hierarchy for financial assets measured at fair value on a recurring basis as of January 31, 2019 (in thousands): Level 1 Level 2 Total Assets Cash equivalents: Money market funds $ 39,168 $ — $ 39,168 Corporate notes and bonds — 1,034 1,034 U.S. treasury securities — 41,505 41,505 Short-term investments: Certificates of deposits — 6,010 6,010 Asset-backed securities — 78,395 78,395 Commercial paper — 9,117 9,117 Corporate notes and bonds — 185,130 185,130 Foreign government bonds — 1,491 1,491 U.S. agency obligations — 15,912 15,912 U.S. treasury securities — 243,135 243,135 Total $ 39,168 $ 581,729 $ 620,897 Liabilities Foreign currency derivative contracts — 88 88 Total $ — $ 88 $ 88 |
Summary of Outstanding Balance Sheet Hedges | The fair value of our outstanding derivative instruments is summarized below (in thousands): October 31, January 31, Notional amount of foreign currency derivative contracts $ (3,913 ) $ (5,112 ) Fair value of foreign currency derivative contracts (3,937 ) (5,024 ) |
Summary Fair Value of Outstanding Derivative Instruments | Details on outstanding balance sheet hedges are presented below as of the date shown below (in thousands): Derivatives not designated as hedging instruments Balance sheet location October 31, January 31, Derivative Assets Foreign currency derivative contracts Prepaid expenses and other current assets $ 59 $ — Derivative Liabilities Foreign currency derivative contracts Accrued expenses $ 35 $ 88 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Leases [Abstract] | |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows (in thousands): Nine months ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,131 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 11,656 |
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows (in thousands, except lease term and discount rate): As of Operating Leases Lease right-of-use-assets $ 24,055 Lease liabilities $ 6,401 Lease liabilities, noncurrent 19,261 Total operating lease liabilities $ 25,662 Finance Leases Property and equipment, at cost $ 1,738 Accumulated depreciation (978 ) Property and equipment, net $ 760 Lease liabilities $ 1,029 Lease liabilities, noncurrent 621 Total finance lease liabilities $ 1,650 Weighted Average Remaining Lease Term Operating leases 5.2 years Finance leases 1.6 years Weighted Average Discount Rate Operating leases 4.3 % Finance leases 4.3 % |
Maturities of Lease Liabilities | Maturities of lease liabilities were as follows (in thousands): Period Operating leases Finance leases Remaining for Fiscal 2020 $ 1,787 $ 269 Fiscal 2021 7,178 1,076 Fiscal 2022 6,109 359 Fiscal 2023 4,119 — Fiscal 2024 3,208 — Thereafter 6,365 — Total lease payments 28,766 1,704 Less imputed interest (3,104 ) (54 ) Total $ 25,662 $ 1,650 |
Future Minimum Lease Payments Under Non-cancelable Operating Leases Under ASU 840 | Future minimum lease payments under non-cancelable operating leases as of January 31, 2019 under ASC 840 were as follows (in thousands): Period Operating leases Fiscal 2020 $ 5,079 Fiscal 2021 4,843 Fiscal 2022 4,063 Fiscal 2023 2,534 Fiscal 2024 1,884 Thereafter 1,495 Total $ 19,898 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Summary of Stock Option Activity | A summary of stock option activity for the nine months ended October 31, 2019 is as follows: Number of shares Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Options outstanding at January 31, 2019 12,961,397 $ 19.43 5.4 $ 1,161,695,032 Options granted 1,475,355 Options exercised (1,225,746 ) Options forfeited/cancelled (318,028 ) Options outstanding at October 31, 2019 12,892,978 $ 33.25 5.2 $ 1,401,940,929 Options vested and exercisable at October 31, 2019 6,704,980 $ 5.96 3.4 $ 911,013,694 Options vested and exercisable at October 31, 2019 and 12,892,978 $ 33.25 5.2 $ 1,401,940,929 |
Summary of Restricted Stock Unit (RSU) Activity | A summary of restricted stock unit (RSU) activity for the nine months ended October 31, 2019 is as follows: Unreleased restricted stock units Weighted average grant date fair value Balance at January 31, 2019 2,359,132 $ 54.73 RSUs granted 278,053 138.22 RSUs vested (945,117 ) 54.42 RSUs forfeited/cancelled (163,375 ) 59.59 Balance at October 31, 2019 1,528,693 $ 69.59 |
Schedule of Weighted-Average Assumptions Used to Estimate Grant Date Fair Value of Options Granted | The following table presents the weighted-average assumptions used to estimate the grant date fair value of options granted during the periods presented: Three months ended Nine months ended 2019 2018 2019 2018 Volatility 41% —% 41% 41% Expected term (in years) 6.25 — 5.75 - 6.35 6.35 Risk-free interest rate 1.39% - 1.64% —% 1.39% - 2.52% 2.73% Dividend yield —% —% —% —% |
CEO | |
Schedule of Weighted-Average Assumptions Used to Estimate Grant Date Fair Value of Options Granted | During the fiscal year 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 — % |
Net Income per Share (Tables)
Net Income per Share (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Earnings Per Share [Abstract] | |
Numerators and Denominators of the Basic and Diluted EPS Computations for Common Stock | The numerators and denominators of the basic and diluted EPS computations for our common stock are calculated as follows (in thousands, except per share data): Three months ended October 31, Nine months ended October 31, 2019 2018 2019 2018 Class A Class B Class A Class B Class A Class B Class A Class B Basic Numerator Net income, basic $ 73,120 $ 9,125 $ 54,592 $ 9,493 $ 206,862 $ 28,074 $ 133,568 $ 25,113 Denominator Weighted average shares used in computing net income per share, basic 131,720 16,437 123,297 21,440 129,845 17,622 121,013 22,752 Net income per share, basic $ 0.56 $ 0.56 $ 0.44 $ 0.44 $ 1.59 $ 1.59 $ 1.10 $ 1.10 Diluted Numerator Net income, basic $ 73,120 $ 9,125 $ 54,592 $ 9,493 $ 206,862 $ 28,074 $ 133,568 $ 25,113 Reallocation as a result of conversion of Class B to Class A common stock: Net income, basic 9,125 — 9,493 — 28,074 — 25,113 — Reallocation of net income to Class B common stock — 4,879 — 3,950 — 13,942 — 10,243 Net income, diluted $ 82,245 $ 14,004 $ 64,085 $ 13,443 $ 234,936 $ 42,016 $ 158,681 $ 35,356 Denominator Number of shares used for basic EPS computation 131,720 16,437 123,297 21,440 129,845 17,622 121,013 22,752 Conversion of Class B to Class A common stock 16,437 — 21,440 — 17,622 — 22,752 — Effect of potentially dilutive common shares 10,593 10,593 11,288 11,288 10,657 10,657 11,941 11,941 Weighted average shares used in computing net income per share, diluted 158,750 27,030 156,025 32,728 158,124 28,279 155,706 34,693 Net income per share, diluted $ 0.52 $ 0.52 $ 0.41 $ 0.41 $ 1.49 $ 1.49 $ 1.02 $ 1.02 |
Potential Common Share Equivalents Excluded where the Inclusion would be Anti-dilutive | Potential common share equivalents excluded where the inclusion would be anti-dilutive are as follows: Three months ended Nine months ended 2019 2018 2019 2018 Options and awards to purchase shares not included in the computation of diluted net income per share because their inclusion would be anti-dilutive 1,362,085 3,066,006 1,037,362 3,065,009 |
Revenues by Product (Tables)
Revenues by Product (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Total Revenues | Total revenues consist of the following (in thousands): Three months ended Nine months ended 2019 2018 2019 2018 Subscription services Veeva Commercial Cloud $ 115,201 $ 99,906 333,591 $ 290,944 Veeva Vault (1) 111,559 78,308 308,596 212,865 Total subscription services $ 226,760 $ 178,214 $ 642,187 $ 503,809 Professional services Veeva Commercial Cloud $ 18,589 $ 16,212 52,381 $ 47,143 Veeva Vault (1) 35,572 30,305 98,005 78,935 Total professional services $ 54,161 $ 46,517 $ 150,386 $ 126,078 Total revenues $ 280,921 $ 224,731 $ 792,573 $ 629,887 |
Information about Geographic _2
Information about Geographic Areas (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Segment Reporting [Abstract] | |
Revenues by Geographic Area | Total revenues by geographic area were as follows for the periods shown below (in thousands): Three months ended October 31, Nine months ended 2019 2018 2019 2018 Revenues by geography North America $ 153,005 $ 126,262 $ 430,441 $ 352,697 Europe 79,832 59,371 226,026 164,943 Asia Pacific 39,057 31,880 110,560 91,532 Rest of world (1) 9,027 7,218 25,546 20,715 Total revenues $ 280,921 $ 224,731 $ 792,573 $ 629,887 _________________________________________________________ (1) Middle East, Africa, and Latin America |
Long-Lived Assets by Geographic Area | Long-lived assets by geographic area are as follows as of the periods shown below (in thousands): October 31, January 31, 2019 2019 Long-lived assets by geography North America $ 49,500 $ 51,748 Europe and rest of world 2,299 1,783 Asia Pacific 1,491 1,435 Total long-lived assets $ 53,290 $ 54,966 |
Summary of Business and Signi_4
Summary of Business and Significant Accounting Policies - Additional Information (Detail) | 9 Months Ended |
Oct. 31, 2019 | |
Summary Of Business And Accounting Policies [Line Items] | |
Period of amortization | 3 years |
Minimum | |
Summary Of Business And Accounting Policies [Line Items] | |
Customer payment period | 30 days |
Maximum | |
Summary Of Business And Accounting Policies [Line Items] | |
Customer payment period | 60 days |
Summary of Business and Signi_5
Summary of Business and Significant Accounting Policies - Schedule of Certain Risks and Concentrations of Credit Risk (Detail) - Customer concentration risk - Accounts Receivable | 3 Months Ended |
Jan. 31, 2019 | |
Customer 1 | |
Concentration Risk [Line Items] | |
Concentration risk percentage | 17.00% |
Customer 2 | |
Concentration Risk [Line Items] | |
Concentration risk percentage | 10.00% |
Short-Term Investments - Schedu
Short-Term Investments - Schedule of Short-Term Investments (Detail) - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 31, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $ 600,133 | $ 539,743 |
Gross unrealized gains | 2,324 | 282 |
Gross unrealized losses | (50) | (835) |
Estimated fair value | 602,407 | 539,190 |
Certificates of deposits | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 3,500 | 6,001 |
Gross unrealized gains | 5 | 10 |
Gross unrealized losses | 0 | (1) |
Estimated fair value | 3,505 | 6,010 |
Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 84,092 | 78,682 |
Gross unrealized gains | 262 | 13 |
Gross unrealized losses | (6) | (300) |
Estimated fair value | 84,348 | 78,395 |
Commercial paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 24,604 | 9,118 |
Gross unrealized gains | 4 | 1 |
Gross unrealized losses | (2) | (2) |
Estimated fair value | 24,606 | 9,117 |
Corporate notes and bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 218,314 | 185,409 |
Gross unrealized gains | 1,437 | 178 |
Gross unrealized losses | (26) | (457) |
Estimated fair value | 219,725 | 185,130 |
Foreign government bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 1,500 | 1,502 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | (11) |
Estimated fair value | 1,500 | 1,491 |
U.S. agency obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 3,000 | 15,912 |
Gross unrealized gains | 0 | 2 |
Gross unrealized losses | 0 | (2) |
Estimated fair value | 3,000 | 15,912 |
U.S. treasury securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 265,123 | 243,119 |
Gross unrealized gains | 616 | 78 |
Gross unrealized losses | (16) | (62) |
Estimated fair value | $ 265,723 | $ 243,135 |
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 | Oct. 31, 2019 | Jan. 31, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Due in one year or less | $ 351,301 | $ 377,858 |
Due in greater than one year | 251,106 | 161,332 |
Total | $ 602,407 | $ 539,190 |
Short-Term Investments - Additi
Short-Term Investments - Additional Information (Detail) - USD ($) | 9 Months Ended | 12 Months Ended |
Oct. 31, 2019 | Jan. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||
Other-than-temporary impairment losses on investments | $ 0 | $ 0 |
Short-Term Investments - Sche_2
Short-Term Investments - Schedule of Fair Values and Gross Unrealized Loss Position of Available-for-Sale Securities Aggregated by Investment Category (Detail) - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 31, 2019 |
Certificates of deposits | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value | $ 999 | |
Gross unrealized losses | (1) | |
Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value | $ 9,545 | 69,131 |
Gross unrealized losses | (6) | (300) |
Commercial paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value | 10,561 | 7,155 |
Gross unrealized losses | (2) | (2) |
Corporate notes and bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value | 27,851 | 121,006 |
Gross unrealized losses | (26) | (457) |
Foreign government bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value | 1,490 | |
Gross unrealized losses | (11) | |
U.S. agency obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value | 14,928 | |
Gross unrealized losses | (2) | |
U.S. treasury securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value | 33,093 | 130,785 |
Gross unrealized losses | $ (16) | $ (62) |
Deferred Costs - Additional Inf
Deferred Costs - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | Jan. 31, 2019 | |
Deferred Costs [Abstract] | |||||
Deferred costs | $ 29,873,000 | $ 29,873,000 | $ 30,869,000 | ||
Amortization of deferred costs | 4,832,000 | $ 4,595,000 | 14,524,000 | $ 13,697,000 | |
Impairment losses recorded in relation to the costs capitalized | $ 0 | $ 0 | $ 0 | $ 0 |
Property and Equipment, Net - C
Property and Equipment, Net - Components of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 74,330 | $ 71,230 | |
Less accumulated depreciation | (21,040) | (16,264) | |
Total property and equipment, net | [1] | 53,290 | 54,966 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 3,040 | 3,040 | |
Building | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 20,984 | 20,984 | |
Land improvements and building improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 22,392 | 20,911 | |
Equipment and computers | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 8,494 | 7,945 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 11,484 | 11,230 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 7,679 | 6,790 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 257 | $ 330 | |
[1] | We adopted Accounting Standards Update (ASU) 2016-02, “Leases” (Topic 842) using the modified retrospective method as of February 1, 2019 and elected the transition option that allows us not to restate the comparative periods in our financial statements in the year of adoption. |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation | $ 2.1 | $ 1.5 | $ 6.2 | $ 4.7 |
Intangible Assets - Details of
Intangible Assets - Details of Intangible Assets (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Oct. 31, 2019 | Jan. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 53,329 | $ 54,470 |
Accumulated amortization | (33,381) | (29,949) |
Intangible assets, net | 19,948 | 24,521 |
Existing technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 3,880 | 3,880 |
Accumulated amortization | (3,863) | (3,834) |
Intangible assets, net | $ 17 | $ 46 |
Remaining useful life (in years) | 4 months 24 days | 1 year 2 months 12 days |
Database | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 4,939 | $ 4,939 |
Accumulated amortization | (4,789) | (4,521) |
Intangible assets, net | $ 150 | $ 418 |
Remaining useful life (in years) | 4 months 24 days | 1 year 2 months 12 days |
Customer contracts and relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 33,643 | $ 33,643 |
Accumulated amortization | (14,829) | (12,350) |
Intangible assets, net | $ 18,814 | $ 21,293 |
Remaining useful life (in years) | 5 years 10 months 24 days | 6 years 7 months 6 days |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 10,867 | $ 10,867 |
Accumulated amortization | (9,900) | (8,156) |
Intangible assets, net | $ 967 | $ 2,711 |
Remaining useful life (in years) | 4 months 24 days | 1 year 2 months 12 days |
Brand | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 1,141 | |
Accumulated amortization | (1,088) | |
Intangible assets, net | $ 53 | |
Remaining useful life (in years) | 0 days | 2 months 12 days |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||||
Amortization expense | $ 1.5 | $ 1.7 | $ 4.6 | $ 5.3 |
Intangible Assets - Estimated A
Intangible Assets - Estimated Amortization Expense (Detail) - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 31, 2019 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Remaining for Fiscal 2020 | $ 1,489 | |
Fiscal 2021 | 3,629 | |
Fiscal 2022 | 3,182 | |
Fiscal 2023 | 3,182 | |
Fiscal 2024 | 3,182 | |
Thereafter | 5,284 | |
Net | $ 19,948 | $ 24,521 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 31, 2019 |
Payables and Accruals [Abstract] | ||
Accrued commissions | $ 1,236 | $ 2,633 |
Accrued bonus | 3,773 | 2,848 |
Accrued vacation | 3,830 | 3,110 |
Payroll tax payable | 5,648 | 1,971 |
Accrued other compensation and benefits | 1,490 | 4,762 |
Total accrued compensation and benefits | 15,977 | 15,324 |
Accrued fees payable to salesforce.com | 5,655 | 5,242 |
Accrued third-party professional services subcontractors' fees | 1,387 | 1,619 |
Taxes payable | 3,338 | 2,805 |
Other accrued expenses | 5,327 | 6,479 |
Total accrued expenses and other current liabilities | $ 15,707 | $ 16,145 |
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 | Oct. 31, 2019 | Jan. 31, 2019 |
Assets | ||
Short-term investments | $ 602,407 | $ 539,190 |
Commercial paper | ||
Assets | ||
Short-term investments | 24,606 | 9,117 |
Corporate notes and bonds | ||
Assets | ||
Short-term investments | 219,725 | 185,130 |
U.S. treasury securities | ||
Assets | ||
Short-term investments | 265,723 | 243,135 |
Certificates of deposits | ||
Assets | ||
Short-term investments | 3,505 | 6,010 |
Asset-backed securities | ||
Assets | ||
Short-term investments | 84,348 | 78,395 |
Foreign government bonds | ||
Assets | ||
Short-term investments | 1,500 | 1,491 |
U.S. agency obligations | ||
Assets | ||
Short-term investments | 3,000 | 15,912 |
Fair value, measurements recurring | ||
Assets | ||
Total | 634,717 | 620,897 |
Liabilities | ||
Total | 35 | 88 |
Fair value, measurements recurring | Money market funds | ||
Assets | ||
Cash equivalents: | 30,707 | 39,168 |
Fair value, measurements recurring | Commercial paper | ||
Assets | ||
Short-term investments | 24,606 | 9,117 |
Fair value, measurements recurring | Corporate notes and bonds | ||
Assets | ||
Cash equivalents: | 1,544 | 1,034 |
Short-term investments | 219,725 | 185,130 |
Fair value, measurements recurring | U.S. treasury securities | ||
Assets | ||
Cash equivalents: | 41,505 | |
Short-term investments | 265,723 | 243,135 |
Fair value, measurements recurring | Certificates of deposits | ||
Assets | ||
Short-term investments | 3,505 | 6,010 |
Fair value, measurements recurring | Asset-backed securities | ||
Assets | ||
Short-term investments | 84,348 | 78,395 |
Fair value, measurements recurring | Foreign government bonds | ||
Assets | ||
Short-term investments | 1,500 | 1,491 |
Fair value, measurements recurring | U.S. agency obligations | ||
Assets | ||
Short-term investments | 3,000 | 15,912 |
Fair value, measurements recurring | Foreign currency derivative contracts | ||
Assets | ||
Short-term investments | 59 | |
Fair value, measurements recurring | Foreign currency derivative contracts | ||
Liabilities | ||
Foreign currency derivative contracts | 35 | 88 |
Fair value, measurements recurring | Level 1 | ||
Assets | ||
Total | 30,707 | 39,168 |
Liabilities | ||
Total | 0 | 0 |
Fair value, measurements recurring | Level 1 | Money market funds | ||
Assets | ||
Cash equivalents: | 30,707 | 39,168 |
Fair value, measurements recurring | Level 1 | Commercial paper | ||
Assets | ||
Short-term investments | 0 | 0 |
Fair value, measurements recurring | Level 1 | Corporate notes and bonds | ||
Assets | ||
Cash equivalents: | 0 | 0 |
Short-term investments | 0 | 0 |
Fair value, measurements recurring | Level 1 | U.S. treasury securities | ||
Assets | ||
Cash equivalents: | 0 | |
Short-term investments | 0 | 0 |
Fair value, measurements recurring | Level 1 | Certificates of deposits | ||
Assets | ||
Short-term investments | 0 | 0 |
Fair value, measurements recurring | Level 1 | Asset-backed securities | ||
Assets | ||
Short-term investments | 0 | 0 |
Fair value, measurements recurring | Level 1 | Foreign government bonds | ||
Assets | ||
Short-term investments | 0 | 0 |
Fair value, measurements recurring | Level 1 | U.S. agency obligations | ||
Assets | ||
Short-term investments | 0 | 0 |
Fair value, measurements recurring | Level 1 | Foreign currency derivative contracts | ||
Assets | ||
Short-term investments | 0 | |
Fair value, measurements recurring | Level 1 | Foreign currency derivative contracts | ||
Liabilities | ||
Foreign currency derivative contracts | 0 | 0 |
Fair value, measurements recurring | Level 2 | ||
Assets | ||
Total | 604,010 | 581,729 |
Liabilities | ||
Total | 35 | 88 |
Fair value, measurements recurring | Level 2 | Money market funds | ||
Assets | ||
Cash equivalents: | 0 | 0 |
Fair value, measurements recurring | Level 2 | Commercial paper | ||
Assets | ||
Short-term investments | 24,606 | 9,117 |
Fair value, measurements recurring | Level 2 | Corporate notes and bonds | ||
Assets | ||
Cash equivalents: | 1,544 | 1,034 |
Short-term investments | 219,725 | 185,130 |
Fair value, measurements recurring | Level 2 | U.S. treasury securities | ||
Assets | ||
Cash equivalents: | 41,505 | |
Short-term investments | 265,723 | 243,135 |
Fair value, measurements recurring | Level 2 | Certificates of deposits | ||
Assets | ||
Short-term investments | 3,505 | 6,010 |
Fair value, measurements recurring | Level 2 | Asset-backed securities | ||
Assets | ||
Short-term investments | 84,348 | 78,395 |
Fair value, measurements recurring | Level 2 | Foreign government bonds | ||
Assets | ||
Short-term investments | 1,500 | 1,491 |
Fair value, measurements recurring | Level 2 | U.S. agency obligations | ||
Assets | ||
Short-term investments | 3,000 | 15,912 |
Fair value, measurements recurring | Level 2 | Foreign currency derivative contracts | ||
Assets | ||
Short-term investments | 59 | |
Fair value, measurements recurring | Level 2 | Foreign currency derivative contracts | ||
Liabilities | ||
Foreign currency derivative contracts | $ 35 | $ 88 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary Fair Value of Outstanding Derivative Instruments (Detail) - Foreign currency derivative contracts - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Notional amount of foreign currency derivative contracts | $ (3,913) | $ (5,112) |
Fair value of foreign currency derivative contracts | $ (3,937) | $ (5,024) |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Outstanding Balance Sheet Hedges (Detail) - Foreign currency derivative contracts - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 31, 2019 |
Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 59 | $ 0 |
Accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 35 | $ 88 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rates | 8.60% | 5.30% | 5.40% | 6.60% |
Excess tax benefits recognized | $ 8,931 | $ 12,006 | $ 39,509 | $ 31,032 |
Deferred Revenue and Performa_2
Deferred Revenue and Performance Obligations - Additional Information (Detail) - Subscription services - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Revenue From Contracts With Customers [Line Items] | ||||
Recognition of deferred revenue | $ 178.2 | $ 142.7 | $ 311.2 | $ 240.4 |
Revenue expected to be recognized from remaining performance obligations | 567.5 | 567.5 | ||
Revenue expected to recognize from remaining performance obligations over the next 12 months | $ 418.6 | $ 418.6 |
Deferred Revenue and Performa_3
Deferred Revenue and Performance Obligations Deferred Revenue and Perfomance Obligations - Performance Obligation Duration (Details) | Oct. 31, 2019 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-08-01 | |
Revenue From Contracts With Customers [Line Items] | |
Revenue, remaining performance obligation, recognition period | 12 months |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended |
Oct. 31, 2019USD ($) | Oct. 31, 2019USD ($) | |
Leases [Line Items] | ||
Operating lease expense | $ 1.8 | $ 5 |
Finance lease expense | 1 | |
Additional operating leasess, primarily for office leases, that have not yet commenced | $ 3.3 | $ 3.3 |
Maximum | ||
Leases [Line Items] | ||
Operating leases, options to extend leases term | 9 years | 9 years |
Finance leases, options to extend leases term | 9 years | 9 years |
Additional operating leases that have not yet commenced, lease terms | 5 years | 5 years |
Minimum | ||
Leases [Line Items] | ||
Additional operating leases that have not yet commenced, lease terms | 1 year | 1 year |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Leases (Detail) $ in Thousands | 9 Months Ended |
Oct. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 5,131 |
Right-of-use assets obtained in exchange for lease obligations: | |
Operating leases | $ 11,656 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Leases (Detail) $ in Thousands | Oct. 31, 2019USD ($) | |
Operating Leases | ||
Lease right-of-use-assets | $ 24,055 | [1] |
Lease liabilities | 6,401 | |
Lease liabilities, noncurrent | 19,261 | |
Total operating lease liabilities | 25,662 | |
Finance Leases | ||
Property and equipment, at cost | 1,738 | |
Accumulated depreciation | (978) | |
Property and equipment, net | 760 | |
Lease liabilities | 1,029 | |
Lease liabilities, noncurrent | 621 | |
Total finance lease liabilities | $ 1,650 | |
Weighted Average Remaining Lease Term | ||
Operating leases | 5 years 2 months 12 days | |
Finance leases | 1 year 7 months 6 days | |
Weighted Average Discount Rate | ||
Operating leases | 4.30% | |
Finance leases | 4.30% | |
[1] | We adopted Accounting Standards Update (ASU) 2016-02, “Leases” (Topic 842) using the modified retrospective method as of February 1, 2019 and elected the transition option that allows us not to restate the comparative periods in our financial statements in the year of adoption. |
Leases- Maturities of lease lia
Leases- Maturities of lease liabilities (Detail) $ in Thousands | Oct. 31, 2019USD ($) |
Operating leases | |
Remaining for Fiscal 2020 | $ 1,787 |
Fiscal 2021 | 7,178 |
Fiscal 2022 | 6,109 |
Fiscal 2023 | 4,119 |
Fiscal 2024 | 3,208 |
Thereafter | 6,365 |
Total lease payments | 28,766 |
Less imputed interest | (3,104) |
Total | 25,662 |
Finance leases | |
Remaining for Fiscal 2020 | 269 |
Fiscal 2021 | 1,076 |
Fiscal 2022 | 359 |
Fiscal 2023 | 0 |
Fiscal 2024 | 0 |
Thereafter | 0 |
Total lease payments | 1,704 |
Less imputed interest | (54) |
Total | $ 1,650 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments Under Non-cancelable Operating Leases Under ASU 840 (Detail) $ in Thousands | Jan. 31, 2019USD ($) |
Leases [Abstract] | |
Fiscal 2020 | $ 5,079 |
Fiscal 2021 | 4,843 |
Fiscal 2022 | 4,063 |
Fiscal 2023 | 2,534 |
Fiscal 2024 | 1,884 |
Thereafter | 1,495 |
Total | $ 19,898 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Oct. 31, 2019 | Oct. 31, 2019 | Jan. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted (in shares) | 1,475,355 | ||
Unrecognized compensation cost related to unvested stock options granted | $ 147.9 | $ 147.9 | |
Intrinsic value of options exercised | $ 31.1 | $ 166.9 | |
CEO | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted (in shares) | 2,838,635 | ||
2013 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted (in shares) | 120,010 | 1,475,355 | |
Weighted-average grant date fair value of options granted (in usd per share) | $ 64.07 | $ 59 | |
Maximum | 2012 and 2013 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation cost recognition vesting service period | 9 years | ||
Minimum | 2012 and 2013 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation cost recognition vesting service period | 4 years | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 1 year | ||
Weighted average period of unvested stock (in years) | 1 year 9 months 18 days | ||
RSUs granted (in shares) | 278,053 | ||
RSUs granted (in usd per share) | $ 138.22 | ||
Unrecognized compensation cost related to unvested RSUs | $ 94.9 | $ 94.9 | |
Total intrinsic value, vested | $ 48 | $ 136 | |
Restricted Stock Units (RSUs) | 2013 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSUs granted (in shares) | 51,995 | 278,053 | |
RSUs granted (in usd per share) | $ 150.53 | $ 138.22 | |
Restricted Stock Units (RSUs) | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 4 years | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 4 years | ||
Weighted average period of unvested stock (in years) | 3 years 9 months 18 days | ||
Stock Options | CEO | |||
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). |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Option Activity (Detail) | 9 Months Ended | 12 Months Ended |
Oct. 31, 2019USD ($)$ / sharesshares | Jan. 31, 2019USD ($)$ / sharesshares | |
Number of shares | ||
Options outstanding, Beginning balance (in shares) | shares | 12,961,397 | |
Options granted (in shares) | shares | 1,475,355 | |
Options exercised (in shares) | shares | (1,225,746) | |
Options forfeited/cancelled (in shares) | shares | (318,028) | |
Options outstanding, Ending balance (in shares) | shares | 12,892,978 | 12,961,397 |
Options vested and exercisable (in shares) | shares | 6,704,980 | |
Options vested and exercisable and expected to vest thereafter (in shares) | shares | 12,892,978 | |
Weighted average exercise price | ||
Options outstanding, Beginning balance (in usd per share) | $ / shares | $ 19.43 | |
Options granted (in usd per share) | $ / shares | ||
Options exercised (in usd per share) | $ / shares | ||
Options forfeited/cancelled (in usd per share) | $ / shares | ||
Options outstanding, Ending balance (in usd per share) | $ / shares | 33.25 | $ 19.43 |
Options vested and exercisable (in usd per share) | $ / shares | 5.96 | |
Options vested and exercisable and expected to vest thereafter (in usd per share) | $ / shares | $ 33.25 | |
Weighted average remaining contractual term (in years), Options outstanding | 5 years 2 months 12 days | 5 years 4 months 24 days |
Weighted average remaining contractual term (in years), Options vested and exercisable | 3 years 4 months 24 days | |
Weighted average remaining contractual term (in years), Options vested and exercisable and expected to vest thereafter | 5 years 2 months 12 days | |
Aggregate intrinsic value | ||
Options outstanding | $ | $ 1,401,940,929 | $ 1,161,695,032 |
Options vested and exercisable | $ | 911,013,694 | |
Options vested and exercisable and expected to vest thereafter | $ | $ 1,401,940,929 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Restricted Stock Unit (RSU) Activity (Detail) - Restricted Stock Units (RSUs) | 9 Months Ended |
Oct. 31, 2019$ / sharesshares | |
Unreleased restricted stock units | |
Beginning Balance (in shares) | shares | 2,359,132 |
RSUs granted (in shares) | shares | 278,053 |
RSUs vested (in shares) | shares | (945,117) |
RSUs forfeited/cancelled (in shares) | shares | (163,375) |
Ending Balance (in shares) | shares | 1,528,693 |
Weighted average grant date fair value | |
Beginning Balance (in usd per share) | $ / shares | $ 54.73 |
RSUs granted (in usd per share) | $ / shares | 138.22 |
RSUs vested (in usd per share) | $ / shares | 54.42 |
RSUs forfeited/cancelled (in usd per share) | $ / shares | 59.59 |
Ending Balance (in usd per share) | $ / shares | $ 69.59 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Weighted-Average Assumptions Used to Estimate Grant Date Fair Value of Options Granted (Detail) - Stock Options | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Volatility | 41.00% | 0.00% | 41.00% | 41.00% |
Expected term (in years) | 6 years 3 months | 0 years | 6 years 4 months 6 days | |
Risk-free interest rate | 0.00% | 2.73% | ||
Risk-free interest rate, Minimum | 1.39% | 1.39% | ||
Risk-free interest rate, Maximum | 1.64% | 2.52% | ||
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (in years) | 5 years 9 months | |||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (in years) | 6 years 4 months 6 days |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Assumptions Used in Monte Carlo Simulation for Tranche Granted (Detail) - Stock Options | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Volatility | 41.00% | 0.00% | 41.00% | 41.00% |
Expected term (in years) | 6 years 3 months | 0 years | 6 years 4 months 6 days | |
Risk-free interest rate | 0.00% | 2.73% | ||
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
CEO | ||||
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% |
Net Income per Share - Numerato
Net Income per Share - 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 | 9 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ||||
Weighted average shares used in computing net income per share, basic | 148,157 | 144,737 | 147,467 | 143,765 |
Net income per share attributable to common stockholders, basic (in usd per share) | $ 0.56 | $ 0.44 | $ 1.59 | $ 1.10 |
Reallocation as a result of conversion of Class B to Class A common stock: | ||||
Weighted average shares used in computing net income per share, diluted | 158,750 | 156,025 | 158,124 | 155,706 |
Net income per share attributable to common stockholders, diluted (in usd per share) | $ 0.52 | $ 0.41 | $ 1.49 | $ 1.02 |
Class A common stock | ||||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ||||
Net income, basic | $ 73,120 | $ 206,862 | ||
Weighted average shares used in computing net income per share, basic | 131,720 | 129,845 | ||
Net income per share attributable to common stockholders, basic (in usd per share) | $ 0.56 | $ 1.59 | ||
Net income, basic | $ 73,120 | $ 206,862 | ||
Reallocation as a result of conversion of Class B to Class A common stock: | ||||
Net income, basic | 9,125 | 28,074 | ||
Reallocation of net income to Class B common stock | 0 | 0 | ||
Net income, diluted | $ 82,245 | $ 234,936 | ||
Conversion of Class B to Class A common stock | 16,437 | 17,622 | ||
Effect of potentially dilutive common shares | 10,593 | 10,657 | ||
Weighted average shares used in computing net income per share, diluted | 158,750 | 158,124 | ||
Net income per share attributable to common stockholders, diluted (in usd per share) | $ 0.52 | $ 1.49 | ||
Class A common stock | As adjusted | ||||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ||||
Net income, basic | $ 54,592 | $ 133,568 | ||
Weighted average shares used in computing net income per share, basic | 123,297 | 121,013 | ||
Net income per share attributable to common stockholders, basic (in usd per share) | $ 0.44 | $ 1.10 | ||
Net income, basic | $ 54,592 | $ 133,568 | ||
Reallocation as a result of conversion of Class B to Class A common stock: | ||||
Net income, basic | 9,493 | 25,113 | ||
Reallocation of net income to Class B common stock | 0 | |||
Net income, diluted | $ 64,085 | $ 158,681 | ||
Conversion of Class B to Class A common stock | 21,440 | 22,752 | ||
Effect of potentially dilutive common shares | 11,288 | 11,941 | ||
Weighted average shares used in computing net income per share, diluted | 156,025 | 155,706 | ||
Net income per share attributable to common stockholders, diluted (in usd per share) | $ 0.41 | $ 1.02 | ||
Class B common stock | ||||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ||||
Net income, basic | $ 9,125 | $ 28,074 | ||
Weighted average shares used in computing net income per share, basic | 16,437 | 17,622 | ||
Net income per share attributable to common stockholders, basic (in usd per share) | $ 0.56 | $ 1.59 | ||
Net income, basic | $ 9,125 | $ 28,074 | ||
Reallocation as a result of conversion of Class B to Class A common stock: | ||||
Net income, basic | 0 | 0 | ||
Reallocation of net income to Class B common stock | 4,879 | 13,942 | ||
Net income, diluted | $ 14,004 | $ 42,016 | ||
Conversion of Class B to Class A common stock | 0 | 0 | ||
Effect of potentially dilutive common shares | 10,593 | 10,657 | ||
Weighted average shares used in computing net income per share, diluted | 27,030 | 28,279 | ||
Net income per share attributable to common stockholders, diluted (in usd per share) | $ 0.52 | $ 1.49 | ||
Class B common stock | As adjusted | ||||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ||||
Net income, basic | $ 9,493 | $ 25,113 | ||
Weighted average shares used in computing net income per share, basic | 21,440 | 22,752 | ||
Net income per share attributable to common stockholders, basic (in usd per share) | $ 0.44 | $ 1.10 | ||
Net income, basic | $ 9,493 | $ 25,113 | ||
Reallocation as a result of conversion of Class B to Class A common stock: | ||||
Net income, basic | 0 | 0 | ||
Reallocation of net income to Class B common stock | 3,950 | 10,243 | ||
Net income, diluted | $ 13,443 | $ 35,356 | ||
Conversion of Class B to Class A common stock | 0 | 0 | ||
Effect of potentially dilutive common shares | 11,288 | 11,941 | ||
Weighted average shares used in computing net income per share, diluted | 32,728 | 34,693 | ||
Net income per share attributable to common stockholders, diluted (in usd per share) | $ 0.41 | $ 1.02 |
Net Income per Share - Potentia
Net Income per Share - Potential Common Share Equivalents Excluded where the Inclusion would be Anti-dilutive (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Earnings Per Share [Abstract] | ||||
Options and awards to purchase shares not included in the computation of diluted net income per share because their inclusion would be anti-dilutive | 1,362,085 | 3,066,006 | 1,037,362 | 3,065,009 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Mar. 13, 2017USD ($) | Jan. 26, 2017Employee | Oct. 31, 2019USD ($)Motion | Oct. 31, 2019USD ($)Motion |
Value-Added Reseller Agreement | ||||
Long-term Purchase Commitment [Line Items] | ||||
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 | |||
Amount of first minimum order commitment met | $ 250,000,000 | 250,000,000 | ||
Minimum fee commitment obligation | $ 159,800,000 | $ 159,800,000 | ||
IQVIA Litigation Matter | ||||
Long-term Purchase Commitment [Line Items] | ||||
Number of motions pending | Motion | 0 | 0 | ||
IQVIA Litigation Matter | Minimum | ||||
Long-term Purchase Commitment [Line Items] | ||||
Monetary damages | $ 200,000,000 | |||
Medidata Litigation Matter | ||||
Long-term Purchase Commitment [Line Items] | ||||
Number of motions pending | Motion | 0 | 0 | ||
Number of former employees | Employee | 5 | |||
Present to September 1st, 2025 | Value-Added Reseller Agreement | ||||
Long-term Purchase Commitment [Line Items] | ||||
Minimum order commitment | $ 500,000,000 | |||
March 1st 2014 to September 1st, 2020 | Value-Added Reseller Agreement | ||||
Long-term Purchase Commitment [Line Items] | ||||
Minimum order commitment | $ 250,000,000 |
Revenues by Product - Summary o
Revenues by Product - Summary of Total Revenues (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 280,921 | $ 224,731 | $ 792,573 | $ 629,887 |
Veeva Commercial Cloud | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 115,201 | 99,906 | 333,591 | 290,944 |
Veeva Vault | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 111,559 | 78,308 | 308,596 | 212,865 |
Total subscription services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 226,760 | 178,214 | 642,187 | 503,809 |
Veeva Commercial Cloud | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 18,589 | 16,212 | 52,381 | 47,143 |
Veeva Vault | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 35,572 | 30,305 | 98,005 | 78,935 |
Total professional services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 54,161 | $ 46,517 | $ 150,386 | $ 126,078 |
Information about Geographic _3
Information about Geographic Areas - Revenues by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Revenues by geography | ||||
Total revenues | $ 280,921 | $ 224,731 | $ 792,573 | $ 629,887 |
Americas | ||||
Revenues by geography | ||||
Total revenues | 153,005 | 126,262 | 430,441 | 352,697 |
Europe | ||||
Revenues by geography | ||||
Total revenues | 79,832 | 59,371 | 226,026 | 164,943 |
Asia Pacific | ||||
Revenues by geography | ||||
Total revenues | 39,057 | 31,880 | 110,560 | 91,532 |
Rest of world | ||||
Revenues by geography | ||||
Total revenues | $ 9,027 | $ 7,218 | $ 25,546 | $ 20,715 |
Information about Geographic _4
Information about Geographic Areas - Long-Lived Assets by Geographic Area (Detail) - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 31, 2019 | |
Long-lived assets by geography | |||
Total long-lived assets | [1] | $ 53,290 | $ 54,966 |
Americas | |||
Long-lived assets by geography | |||
Total long-lived assets | 49,500 | 51,748 | |
EMEA | |||
Long-lived assets by geography | |||
Total long-lived assets | 2,299 | 1,783 | |
Asia Pacific | |||
Long-lived assets by geography | |||
Total long-lived assets | $ 1,491 | $ 1,435 | |
[1] | We adopted Accounting Standards Update (ASU) 2016-02, “Leases” (Topic 842) using the modified retrospective method as of February 1, 2019 and elected the transition option that allows us not to restate the comparative periods in our financial statements in the year of adoption. |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) - Subsequent Event - USD ($) $ in Millions | Nov. 07, 2019 | Nov. 01, 2019 |
Crossix Solutions | ||
Subsequent Event [Line Items] | ||
Cash consideration transferred | $ 431.8 | |
Value of awards transferred | $ 120 | |
Physicians World | ||
Subsequent Event [Line Items] | ||
Cash consideration transferred | $ 41.4 | |
Value of awards transferred | $ 15 |
Uncategorized Items - veev-2019
Label | Element | Value |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | $ 1,207,000 |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | $ 1,206,000 |