Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Jan. 31, 2020 | Feb. 29, 2020 | Jul. 31, 2019 | |
Document And Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 31, 2020 | ||
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 | ||
Trading Symbol | VEEV | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 22.1 | ||
Documents Incorporated by Reference | Portions of the Registrant’s Proxy Statement for the 2020 Annual Meeting of Stockholders are incorporated herein by reference in Part III of this Form 10-K to the extent stated herein. The proxy statement will be filed by the Registrant with the Securities and Exchange Commission within 120 days after the end of the Registrant’s fiscal year ended January 31, 2020. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
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 | 134,056,705 | ||
Class B common stock | |||
Document And Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 15,199,816 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 | |
Current assets: | |||
Cash and cash equivalents | $ 476,733 | $ 550,971 | |
Short-term investments | 610,015 | 539,190 | |
Accounts receivable, net of allowance for doubtful accounts of $617 and $468, respectively | 389,690 | 303,465 | |
Unbilled accounts receivable | 32,817 | 18,122 | |
Prepaid expenses and other current assets | 21,869 | 21,666 | |
Total current assets | 1,531,124 | 1,433,414 | |
Property and equipment, net | 54,752 | 54,966 | |
Deferred costs, net | 35,585 | 30,869 | |
Lease right-of-use assets | [1] | 49,132 | |
Goodwill | 438,529 | 95,804 | |
Intangible assets, net | 134,601 | 24,521 | |
Deferred income taxes, noncurrent | 11,870 | 5,938 | |
Other long-term assets | 16,184 | 8,254 | |
Total assets | 2,271,777 | 1,653,766 | |
Current liabilities: | |||
Accounts payable | 19,420 | 9,110 | |
Accrued compensation and benefits | 25,619 | 15,324 | |
Accrued expenses and other current liabilities | 21,620 | 16,145 | |
Income tax payable | 5,613 | 4,086 | |
Deferred revenue | 468,887 | 356,357 | |
Lease liabilities | [1] | 10,013 | |
Total current liabilities | 551,172 | 401,022 | |
Deferred income taxes, noncurrent | 2,417 | 6,095 | |
Lease liabilities, noncurrent | [1] | 44,815 | |
Other long-term liabilities | 7,779 | 8,900 | |
Total liabilities | 606,183 | 416,017 | |
Commitments and contingencies (Note 15) | |||
Stockholders’ equity: | |||
Additional paid-in capital | 745,475 | 617,623 | |
Accumulated other comprehensive income | 460 | 928 | |
Retained earnings | 919,658 | 619,197 | |
Total stockholders’ equity | 1,665,594 | 1,237,749 | |
Total liabilities and stockholders’ equity | 2,271,777 | 1,653,766 | |
Class A common stock | |||
Stockholders’ equity: | |||
Common Stock | 1 | 1 | |
Class B common stock | |||
Stockholders’ equity: | |||
Common Stock | $ 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. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Allowance for doubtful accounts | $ 617 | $ 468 |
Class A common stock | ||
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 800,000,000 | 800,000,000 |
Common stock, shares issued | 133,892,725 | 125,980,019 |
Common stock, shares outstanding | 133,892,725 | 125,980,019 |
Class B common stock | ||
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 190,000,000 | 190,000,000 |
Common stock, shares issued | 15,202,858 | 20,210,060 |
Common stock, shares outstanding | 15,202,858 | 20,210,060 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | ||
Revenues: | ||||
Total revenues | $ 1,104,081 | $ 862,210 | $ 690,559 | |
Cost of revenues: | ||||
Total cost of revenues | [1] | 303,369 | 245,281 | 211,422 |
Gross profit | 800,712 | 616,929 | 479,137 | |
Operating expenses: | ||||
Research and development | [1] | 209,895 | 158,783 | 132,017 |
Sales and marketing | [1] | 190,331 | 148,867 | 128,781 |
General and administrative | [1] | 114,267 | 86,413 | 60,410 |
Total operating expenses | [1] | 514,493 | 394,063 | 321,208 |
Operating income | 286,219 | 222,866 | 157,929 | |
Other income, net | 27,478 | 15,777 | 7,842 | |
Income before income taxes | 313,697 | 238,643 | 165,771 | |
Provision for income taxes | 12,579 | 8,811 | 14,594 | |
Net income | 301,118 | 229,832 | 151,177 | |
Net income, basic and diluted | $ 301,118 | $ 229,832 | $ 151,177 | |
Net income per share: | ||||
Basic | $ 2.04 | $ 1.59 | $ 1.08 | |
Diluted | $ 1.90 | $ 1.47 | $ 0.98 | |
Weighted-average shares used to compute net income per share: | ||||
Basic | 147,796 | 144,244 | 140,311 | |
Diluted | 158,296 | 156,117 | 153,681 | |
Other comprehensive income: | ||||
Net change in unrealized gain (losses) on available-for-sale investments | $ 2,388 | $ 1,409 | $ (1,598) | |
Net change in cumulative foreign currency translation gain (loss) | (2,857) | (2,081) | 3,086 | |
Comprehensive income | 300,649 | 229,160 | 152,665 | |
Subscription services | ||||
Revenues: | ||||
Total revenues | 896,294 | 694,467 | 559,434 | |
Cost of revenues: | ||||
Total cost of revenues | [1] | 136,328 | 117,009 | 110,465 |
Professional services and other | ||||
Revenues: | ||||
Total revenues | 207,787 | 167,743 | 131,125 | |
Cost of revenues: | ||||
Total cost of revenues | [1] | $ 167,041 | $ 128,272 | $ 100,957 |
[1] | Includes stock-based compensation as follows: Cost of revenues: Cost of subscription services $ 2,638 $ 1,553 $ 1,448 Cost of professional services and other 17,518 10,575 8,476 Research and development 37,001 22,138 17,782 Sales and marketing 27,537 18,381 16,288 General and administrative 31,212 23,778 10,055 Total stock-based compensation $ 115,906 $ 76,425 $ 54,049 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Total stock-based compensation | $ 115,906 | $ 76,425 | $ 54,049 |
Cost of subscription services | |||
Total stock-based compensation | 2,638 | 1,553 | 1,448 |
Cost of professional services and other | |||
Total stock-based compensation | 17,518 | 10,575 | 8,476 |
Research and development | |||
Total stock-based compensation | 37,001 | 22,138 | 17,782 |
Sales and marketing | |||
Total stock-based compensation | 27,537 | 18,381 | 16,288 |
General and administrative | |||
Total stock-based compensation | $ 31,212 | $ 23,778 | $ 10,055 |
Consolidated Statements Stockho
Consolidated Statements Stockholders' Equity - USD ($) $ in Thousands | Total | Class A & B Common Stock | Additional Paid-in Capital | Retained Earnings | AOCI Attributable to Parent | |
Beginning balance at Jan. 31, 2017 | $ 678,154 | $ 1 | $ 439,658 | $ 238,384 | $ 111 | |
Beginning balance (in shares) at Jan. 31, 2017 | 137,886,619 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon exercise of stock options | 21,194 | 21,194 | ||||
Issuance of common stock upon exercise of stock options (in shares) | 2,935,962 | |||||
Vesting of early exercised stock options | 1 | 1 | ||||
Issuance of common stock upon vesting of restricted stock units (in shares) | 1,246,815 | |||||
Stock-based compensation expense | 54,419 | 54,419 | ||||
Other comprehensive income (loss) | 1,293 | (196) | 1,489 | |||
Net income | 151,177 | 151,177 | ||||
Ending balance at Jan. 31, 2018 | 906,238 | $ 1 | 515,272 | 389,365 | 1,600 | |
Ending 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 | 25,554 | 25,554 | ||||
Issuance of common stock upon exercise of stock options (in shares) | 2,807,092 | |||||
Issuance of common stock upon vesting of restricted stock units (in shares) | 1,313,591 | |||||
Stock-based compensation expense | 76,797 | 76,797 | ||||
Other comprehensive income (loss) | (672) | (672) | ||||
Net income | 229,832 | 229,832 | ||||
Ending balance at Jan. 31, 2019 | 1,237,749 | $ 1 | 617,623 | 619,197 | 928 | |
Ending 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 | $ 10,899 | 10,899 | ||||
Issuance of common stock upon exercise of stock options (in shares) | 1,665,778 | 1,665,778 | ||||
Issuance of common stock upon vesting of restricted stock units (in shares) | 1,239,726 | |||||
Stock-based compensation expense | $ 116,296 | 116,296 | ||||
Other comprehensive income (loss) | (468) | (468) | ||||
Net income | 301,118 | 301,118 | ||||
Replacement award value in connection with business combination | 657 | 657 | ||||
Ending balance at Jan. 31, 2020 | 1,665,594 | $ 1 | $ 745,475 | 919,658 | $ 460 | |
Ending balance (in shares) at Jan. 31, 2020 | 149,095,583 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect adjustment for Topic 842 | [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. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Cash flows from operating activities | |||
Net income | $ 301,118 | $ 229,832 | $ 151,177 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 19,859 | 14,071 | 14,277 |
Reduction of operating lease right-of-use assets | 7,966 | ||
Amortization of premiums (accretion of discount) on short-term investments | (3,274) | (2,431) | 1,389 |
Stock-based compensation | 115,906 | 76,425 | 54,049 |
Amortization of deferred costs | 20,521 | 18,378 | 16,647 |
Deferred income taxes | (6,663) | (8,091) | 1,209 |
(Gain) Loss on foreign currency from market-to-market derivative | (120) | (177) | 265 |
Bad debt expense (recovery) | 244 | 198 | (242) |
Changes in operating assets and liabilities: | |||
Accounts receivable | (55,531) | (78,995) | (47,799) |
Unbilled accounts receivable | (14,555) | (4,774) | (4,329) |
Deferred costs | (25,237) | (18,941) | (18,795) |
Income taxes payable | 1,131 | 637 | (2,520) |
Prepaid expenses and other current and long-term assets | (2,700) | (10,562) | (2,493) |
Accounts payable | 2,813 | 1,822 | 1,396 |
Accrued expenses and other current liabilities | (15,230) | 963 | 7,149 |
Deferred revenue | 97,753 | 89,416 | 58,240 |
Operating lease liabilities | (7,480) | ||
Other long-term liabilities | 854 | 3,056 | 3,818 |
Net cash provided by operating activities | 437,375 | 310,827 | 233,438 |
Cash flows from investing activities | |||
Purchases of short-term investments | (752,518) | (726,379) | (437,858) |
Maturities and sales of short-term investments | 688,091 | 632,329 | 294,705 |
Purchases of property and equipment | (3,113) | (8,440) | (9,633) |
Acquisitions, net of cash and restricted cash acquired | (448,162) | 0 | 0 |
Capitalized internal-use software development costs | (1,208) | (1,379) | (1,734) |
Net cash used in investing activities | (516,910) | (103,869) | (154,520) |
Cash flows from financing activities | |||
Reduction of lease liabilities - finance leases | (984) | ||
Proceeds from exercise of common stock options | 10,994 | 25,910 | 20,773 |
Net cash provided by financing activities | 10,010 | 25,910 | 20,773 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (2,856) | (2,077) | 3,089 |
Net change in cash, cash equivalents, and restricted cash | (72,381) | 230,791 | 102,780 |
Cash, cash equivalents, and restricted cash at beginning of period | 552,178 | 321,387 | 218,607 |
Cash, cash equivalents, and restricted cash at end of period | 479,797 | 552,178 | 321,387 |
Cash, cash equivalents, and restricted cash at end of period: | |||
Cash and cash equivalents | 476,733 | 550,971 | 320,183 |
Restricted cash included in other long-term assets | 3,064 | 1,207 | 1,204 |
Cash, cash equivalents, and restricted cash at end of period | 479,797 | 552,178 | 321,387 |
Supplemental disclosures of other cash flow information: | |||
Cash paid for income taxes, net of refunds | 14,289 | 19,541 | 12,461 |
Excess tax benefits from employee stock plans | 50,411 | 45,830 | 45,864 |
Non-cash investing and financing activities: | |||
Changes in accounts payable and accrued expenses related to property and equipment purchases | $ 567 | $ 644 | $ (1,388) |
Summary of Business and Signifi
Summary of Business and Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2020 | |
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. Our commercial solutions help life sciences companies achieve better, more intelligent engagement with healthcare professionals and healthcare organizations across multiple communication channels, and plan and execute more effective media and marketing campaigns. Our R&D solutions for the clinical, regulatory, quality, and safety functions help life sciences companies streamline their end-to-end product development processes to increase operational efficiency and maintain regulatory compliance throughout the product life cycle. We also bring the benefits of our content and data management solutions to a set of customers outside of life sciences in three regulated industries: consumer goods, chemicals, and cosmetics. Our fiscal year end is January 31 . Principles of Consolidation and Basis of Presentation These consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding annual financial reporting and include the accounts of our wholly-owned subsidiaries after elimination of intercompany accounts and transactions. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates, judgments and assumptions that affect the consolidated financial statements and the notes thereto. These estimates are based on information available as of the date of the consolidated financial statements. On a regular basis, management evaluates these estimates and assumptions. Items subject to such estimates and assumptions include, but are not limited to: • the standalone selling price for each distinct performance obligation included in customer contracts with multiple performance obligations; • the determination of the period of benefit for amortization of deferred costs; and • the fair value of assets acquired and liabilities assumed for business combinations. As future events cannot be determined with precision, actual results could differ significantly from those estimates. Segment Information Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assessing performance. We define the term “chief operating decision maker” to be our Chief Executive Officer. Our Chief Executive Officer reviews the financial information presented on a consolidated basis for purposes of allocating resources and evaluating our financial performance. Accordingly, we have determined that we operate in a single reportable operating segment. Since we operate in one operating segment, all required financial segment information can be found in the consolidated financial statements. Revenue Recognition We derive our revenues primarily from subscription services 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 as the services are delivered based on time incurred. 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 the expected renewal period of our customer contracts, our technology and other factors. Amortization expense is included in sales and marketing expenses in the accompanying consolidated statements of comprehensive income. Certain Risks and Concentrations of Credit Risk Our revenues are derived from subscription services, professional services and other services delivered primarily to the life sciences industry. We operate in markets that are highly competitive and rapidly changing. Significant technological changes, shifting customer needs, the emergence of competitive products or services with new capabilities, and other factors could negatively impact our future operating results. Our financial instruments that potentially subject us to concentration of credit risk consist primarily of cash and cash equivalents, short-term investments and trade accounts receivable. Our cash equivalents and short-term investments are held by established financial institutions. We have established guidelines relative to credit ratings, diversification and maturities that seek to maintain safety and liquidity. Deposits in these financial institutions may significantly exceed federally insured limits. We do not require collateral from our customers and generally require payment within 30 days to 60 days of billing. The following customers individually exceeded 10% of total accounts receivable as of the dates shown: January 31, January 31, Customer 1 14% 17% Customer 2 * 10% ________________________________ * Does not exceed 10%. No single customer represented over 10% of our total revenues for any of the years presented. Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Short-term Investments Our short-term investments are classified as available-for-sale and recorded at estimated fair value. Unrealized gains and losses for available-for-sale securities are included in accumulated other comprehensive income, a component of stockholders’ equity. We evaluate our investments to assess whether those with unrealized loss positions are other than temporarily impaired. We consider impairments to be other than temporary if they are related to deterioration in credit risk or if it is likely we will sell the securities before the recovery of their cost basis. Realized gains and losses and declines in value judged to be other than temporary are determined based on the specific identification method and are reported in other income, net, in the consolidated statements of comprehensive income. Interest, amortization of premiums, and accretion of discount on all short-term investments are also included as a component of other income, net, in the consolidated statements of comprehensive income. We may sell our short-term investments at any time, without significant penalty, for use in current operations or for other purposes, even if they have not yet reached maturity. As a result, we classify our investments, including securities with maturities beyond 12 months as current assets in the accompanying consolidated balance sheets. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at the invoiced amount, net of allowance for doubtful accounts, which is not material. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets and commences once the asset is placed in service or ready for its intended use. Land is not depreciated. The estimated useful lives by asset classification are as follows: Asset Classification Estimated Useful Life Building 30 years Land and building improvements 10 years (land improvements) and estimated useful life of building (building improvements) Equipment and computers 3 years Furniture and fixtures 5 years Leasehold improvements Shorter of remaining life of the lease term or estimated useful life Leases We have operating and finance leases for corporate offices, data centers, and certain equipment. Additionally, we are the sublessor for certain office space. 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. The lease right-of-use assets also include any lease payments made and exclude lease incentives such as tenant improvement allowances. Options to extend or terminate the lease are included in the lease term when it is reasonably certain that we will exercise the extension or termination option. Our operating leases typically include non-lease components such as common-area maintenance costs. We have elected to exclude non-lease components from lease payments for the purpose of calculating lease right-of-use assets and liabilities and these 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. Internal-Use Software We capitalize certain costs incurred for the development of computer software for internal use. We capitalize these costs during the development of the project, when it is determined that it is probable that the project will be completed, and the software will be used as intended. Costs related to preliminary project activities, post-implementation activities, training and maintenance are expensed as incurred. Internal-use software is amortized on a straight-line basis over its estimated useful life of three years , and the amortization expense is recorded as a component of cost of subscription services. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Goodwill and Intangible Assets Goodwill is tested for impairment annually in the fourth quarter of each year or if circumstances indicate the carrying value of goodwill is impaired. We have one reporting unit and evaluate goodwill for impairment at the entity level. We completed our annual impairment test in our fourth quarter of the fiscal year ended January 31, 2020 , which did no t result in any impairment of the goodwill balance. All other intangible assets associated with purchased intangibles, consisting of existing technology, databases, customer relationships, software, trade names and trademarks, data supplier and partner relationships, non-competition agreements, brand, and backlog are stated at cost less accumulated amortization and are amortized on a straight-line basis over their estimated remaining economic lives. Amortization expense related to existing technology, databases, data supplier and partner relationships, software, and backlog is included in cost of subscription services. Amortization expense related to customer relationships, trade names and trademarks, and brand are included in sales and marketing expense. Amortization expense related to non-competition agreements are included in both general and administrative and research and development expense. Long-Lived Assets Long-lived assets, such as property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, we first compare undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. There were no impairment charges recognized during any of the periods presented. Business Combinations The purchase price in a business combination is assigned to the estimated acquisition date fair values of the tangible and intangible assets acquired and the liabilities assumed with the residual recorded as goodwill. Critical estimates in valuing certain of the intangible assets include, but are not limited to, the net present value of future expected cash flows, future revenue growth, margins, customer retention rates, technology life, royalty rates, expected use of acquired assets, and discount rates. Stock-based Compensation We recognize compensation expense for all stock-based awards, including stock options and restricted stock units (RSUs), based on the estimate of fair value of the award at the grant date. The fair value of each option award is estimated on the grant date using either a Monte Carlo simulation for market condition awards or Black-Scholes option-pricing model and a single option award approach. These models require that at the date of grant we determine the fair value of the underlying common stock, the expected term of the award, the expected volatility of the price of our common stock, risk-free interest rates, and expected dividend yield of our common stock. The fair value of each RSU award is measured based on the closing stock price of our common stock on the date of grant. We account for forfeitures as they occur. The compensation expense is recognized using a straight-line basis over the requisite service periods of the awards, which is generally four to nine years . Cost of Revenues Cost of subscription services revenues consists of expenses related to our computing infrastructure provided by third parties, including salesforce.com and Amazon Web Services, personnel related costs associated with hosting our subscription services and providing support, including our data stewards, data acquisition costs, and allocated overhead, amortization expense associated with capitalized internal-use software related to our subscription services, and amortization expense associated with purchased intangibles related to our subscription services. Cost of subscription services revenues for Veeva CRM and certain of our multichannel customer relationship management applications includes fees paid to salesforce.com for our use of the Salesforce1 Platform and the associated hosting infrastructure and data center operations that are provided by salesforce.com. Cost of professional services and other revenues consists primarily of employee-related expenses associated with providing these services, including salaries, benefits and stock-based compensation expense, the cost of third-party subcontractors, travel costs and allocated overhead. Advertising Expenses Advertising expenditures are expensed as incurred and were immaterial for each of the years presented. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We regularly assess the realizability of our deferred tax assets and establish a valuation allowance if it is more-likely-than-not that some or all of our deferred tax assets will not be realized. We evaluate and weigh all available positive and negative evidence such as historic results, future reversals of existing deferred tax liabilities, projected future taxable income, as well as prudent and feasible tax-planning strategies. Generally, more weight is given to objectively verifiable evidence, such as the cumulative income in recent years. We establish liabilities or reduce assets for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining whether the weight of available evidence indicates that it is more likely than not that the position will be sustained upon an audit, including resolution of related appeals or litigation processes, if any. The second step requires us to measure the tax benefit as the largest amount that is more likely than not to be realized upon ultimate settlement. We recognize interest accrued and penalties related to unrecognized tax benefits as a component of provision for income taxes. Foreign Currency Exchange Adjustments resulting from translating financial statements for those entities that do not have U.S. dollars as their functional currency are recorded as part of a separate component of the consolidated statements of comprehensive income. All assets and liabilities denominated in non-functional currency are translated into the functional currency at the exchange rate on the balance sheet date. Revenues and expenses are translated at the average exchange rate during the period. Equity transactions are translated using historical exchange rates. Foreign currency transaction gains and losses are included in the consolidated statements of comprehensive income for the period. Indemnification Our contracts generally include provisions for indemnifying customers against liabilities if our solutions infringe a third party’s intellectual property rights, and we may also incur liabilities if we breach the security and/or confidentiality obligations in our contracts. To date, we have not incurred any material costs, and we have not accrued any liabilities in the accompanying consolidated financial statements, as a result of these obligations. Loss Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment or remediation can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. New Accounting Pronouncements Adopted in Fiscal 2020 Leases In February 2016, the FASB issued Topic 842 and related subsequent amendments, 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. 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. Consequently, financial information for dates and periods before February 1, 2019 remain unchanged. 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. We have also 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. 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. 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. |
Acquisitions
Acquisitions | 12 Months Ended |
Jan. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions During the fiscal year ended January 31, 2020, we completed two acquisitions, Crossix and Physicians World, both of which were accounted for as business combinations. The goodwill recognized for these acquisitions was primarily attributable to expected synergies from the integration with our products and services and is not deductible for U.S. tax purposes. Crossix On November 1, 2019, we acquired 100% ownership of Crossix in exchange for total consideration of $427.9 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, which will be expensed as share-based compensation over the remaining service period. Crossix brings Veeva additional depth in patient data and data analytics, and we are integrating Crossix with our Veeva CRM and OpenData products. We incurred $1.0 million in acquisition-related transaction costs which are reflected in general and administrative expenses on our consolidated statements of comprehensive income. The fair value of assets acquired and liabilities assumed was based on a preliminary valuation, and our estimates and assumptions are subject to change within the measurement period. The area that is subject to change relates to certain tax-related items. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands): Useful lives of intangible assets Fair value Net assets acquired $ 4,766 Identifiable intangible assets: Customer relationships 10 years $ 70,100 Existing technology 6 years 19,200 Trade name/Trademarks 5 years 13,200 Other intangibles 1 to 7 years 6,000 Purchased intangible assets $ 108,500 Goodwill $ 314,642 Total purchase consideration $ 427,908 The following unaudited pro forma information presents the combined results of operations for the periods presented as if the acquisition had been completed on February 1, 2018, the beginning of the comparable prior annual reporting period. The unaudited pro forma results include the amortization associated with estimates for the purchased intangible assets and stock-based compensation expense associated with the retention awards granted. The unaudited pro forma results do not reflect any cost saving synergies from operating efficiencies or the effect of the incremental costs incurred in integrating the two companies. Accordingly, these unaudited pro forma results are presented for information purpose only and are not necessarily indicative of what the actual results of operations of the combined company would have been if the acquisition had occurred at the beginning of the period presented, nor are they indicative of future results of operations (in thousands): For the fiscal year ended January 31, 2020 2019 (Unaudited) Pro forma revenues $ 1,153,497 $ 913,081 Pro forma net income $ 278,215 $ 201,382 Pro forma net income per share: Basic $ 1.88 $ 1.40 Diluted $ 1.76 $ 1.29 Physicians World On November 7, 2019, we completed our acquisition of Physicians World in exchange for total cash consideration of $41.0 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. Acquiring Physicians World makes it easier for our customers to get industry leading cloud software and services from a single vendor. We incurred $0.3 million in acquisition-related transaction costs which are reflected in general and administrative expenses on our consolidated statements of comprehensive income. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands): Useful lives of intangible assets Fair value Net assets acquired $ 1,221 Identifiable intangible assets: Customer relationships 10 years $ 7,700 Existing technology 6 years 3,300 Trade name/Trademarks 3 years 700 Purchased intangible assets $ 11,700 Goodwill $ 28,083 Total purchase price $ 41,004 Pro forma results of operations have not been presented because the effect of this acquisition was not material to the consolidated financial statements. |
Short-Term Investments
Short-Term Investments | 12 Months Ended |
Jan. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Short-Term Investments | Short-Term Investments At January 31, 2020 , 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 $ 3 $ — $ 3,503 Asset-backed securities 100,419 396 (1 ) 100,814 Commercial paper 19,965 5 (1 ) 19,969 Corporate notes and bonds 234,664 1,552 (2 ) 236,214 Foreign government bonds 3,397 10 — 3,407 U.S. treasury securities 245,509 599 — 246,108 Total available-for-sale securities $ 607,454 $ 2,565 $ (4 ) $ 610,015 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): January 31, 2020 2019 Due in one year or less $ 247,592 $ 377,858 Due in greater than one year 362,423 161,332 Total $ 610,015 $ 539,190 The following table shows the fair values of these available-for-sale securities, some of which have been in an unrealized loss position for more than 12 months, aggregated by investment category as of January 31, 2020 (in thousands): Fair value Unrealized losses Asset-backed securities 2,623 (1 ) Commercial paper 5,589 (1 ) Corporate notes and bonds 9,105 (2 ) The following table shows the fair values of these available-for-sale securities, some of which have been in an unrealized loss position for more than 12 months, aggregated by investment category as of January 31, 2019 (in thousands): Fair value 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 ) There were no impairments considered other-than-temporary as of January 31, 2020 and 2019 as it is more likely than not we will hold the securities until recovery of the cost basis. |
Deferred Costs
Deferred Costs | 12 Months Ended |
Jan. 31, 2020 | |
Deferred Costs [Abstract] | |
Deferred Costs | Deferred Costs Deferred costs, which consist of deferred sales commissions, were $35.6 million and $30.9 million as of January 31, 2020 and 2019 , respectively. Amortization expense for the deferred costs included in sales and marketing expenses in the consolidated statements of comprehensive income was $20.5 million , $18.4 million , and $16.6 million for fiscal years ended January 31, 2020 , 2019 , and 2018 , respectively. There have been no impairment losses recorded in relation to the costs capitalized for any period presented. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Jan. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net consists of the following as of the dates shown (in thousands): January 31, 2020 2019 Land $ 3,040 $ 3,040 Building 20,984 20,984 Land improvements and building improvements 22,392 20,911 Equipment and computers 11,066 7,945 Furniture and fixtures 12,849 11,230 Leasehold improvements 9,385 6,790 Construction in progress 386 330 80,102 71,230 Less accumulated depreciation (25,350 ) (16,264 ) Total property and equipment, net $ 54,752 $ 54,966 Total depreciation expense was $8.5 million , $6.4 million , and $5.9 million for the fiscal years ended January 31, 2020 , 2019 , and 2018 , respectively. Land is not depreciated. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Jan. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill The following schedule presents the details of intangible assets as of January 31, 2020 (dollar amounts in thousands): January 31, 2020 Gross carrying amount Accumulated amortization Net Remaining useful life (in years) Existing technology $ 26,380 $ (4,808 ) $ 21,572 5.8 Customer relationships 111,443 (17,575 ) 93,868 9.0 Trade name/Trademarks 13,900 (720 ) 13,180 4.7 Other intangibles 22,947 (16,966 ) 5,981 5.0 $ 174,670 $ (40,069 ) $ 134,601 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 Customer relationships 33,643 (12,350 ) 21,293 6.6 Other intangibles 16,947 (13,765 ) 3,182 1.2 $ 54,470 $ (29,949 ) $ 24,521 Amortization expense associated with intangible assets for the fiscal years ended January 31, 2020 , 2019 , and 2018 was $10.1 million , $7.0 million , and $7.8 million , respectively. The estimated amortization expense for intangible assets for the next five years and thereafter is as follows as of January 31, 2020 (in thousands): Estimated amortization expense Period Fiscal 2021 $ 19,595 Fiscal 2022 18,397 Fiscal 2023 18,342 Fiscal 2024 18,160 Fiscal 2025 17,417 Thereafter 42,690 Total $ 134,601 The following schedule presents the details of goodwill as of January 31, 2020 (in thousands): Goodwill Balance as of January 31, 2019 $ 95,804 Goodwill from Crossix acquisition 314,642 Goodwill from Physicians World acquisition 28,083 Balance as of January 31, 2020 $ 438,529 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Jan. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consisted of the following as of the dates shown (in thousands): January 31, 2020 2019 Accrued commissions $ 8,951 $ 2,633 Accrued bonus 4,329 2,848 Accrued vacation 3,921 3,110 Payroll tax payable 7,353 1,971 Accrued other compensation and benefits 1,065 4,762 Total accrued compensation and benefits $ 25,619 $ 15,324 Accrued fees payable to salesforce.com 5,787 5,242 Accrued third-party professional services subcontractors' fees 1,338 1,619 Taxes payable 4,914 2,805 Other accrued expenses 9,581 6,479 Total accrued expenses and other current liabilities $ 21,620 $ 16,145 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table presents the fair value hierarchy for financial assets measured at fair value on a recurring basis as of January 31, 2020 (in thousands): Level 1 Level 2 Total Assets Cash equivalents: Money market funds $ 24,107 $ — $ 24,107 Commercial paper — 1,616 1,616 Corporate notes and bonds — 2,245 2,245 Short-term investments: Certificates of deposits — 3,503 3,503 Asset-backed securities — 100,815 100,815 Commercial paper — 19,969 19,969 Corporate notes and bonds — 236,214 236,214 Foreign government bonds — 3,407 3,407 U.S. treasury securities — 246,107 246,107 Foreign currency derivative contracts — 75 75 Total $ 24,107 $ 613,951 $ 638,058 Liabilities Foreign currency derivative contracts — 42 42 Total $ — $ 42 $ 42 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). 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. Balance Sheet Hedges We enter into foreign currency forward contracts (the “Forward Contracts”) in order to hedge our foreign currency exposure. We account for derivative instruments at fair value with changes in the fair value recorded as a component of other income, net in our consolidated statements of comprehensive income. Cash flows from such forward contracts are classified as operating activities. During the fiscal years ended January 31, 2020 and 2019 , we recognized realized foreign currency losses on hedging of $0.3 million and foreign currency gains of $0.3 million , respectively. The fair value of our outstanding derivative instruments is summarized below (in thousands): January 31, 2020 2019 Notional amount of foreign currency derivative contracts $ 7,304 $ (5,112 ) Fair value of foreign currency derivative contracts 7,271 (5,024 ) Details on outstanding balance sheet hedges are presented below as of the date shown below (in thousands): January 31, 2020 2019 Derivative Assets Balance Sheet Location Derivatives not designated as hedging instruments: Foreign currency derivative contracts Prepaid expenses and other current assets $ 75 $ — Derivative Liabilities Derivatives not designated as hedging instruments: Foreign currency derivative contracts Accrued expenses $ 42 $ 88 |
Other Income, Net
Other Income, Net | 12 Months Ended |
Jan. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Other Income, Net | Other Income, Net Other income, net consisted of the following (in thousands): Fiscal Year Ended January 31, 2020 2019 2018 Foreign currency gain (loss) $ (708 ) $ (2,103 ) $ 1,177 Accretion (amortization) on investments 3,001 2,492 (1,718 ) Interest income 25,185 15,388 8,383 Other income, net $ 27,478 $ 15,777 $ 7,842 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income before income taxes by U.S. and foreign jurisdictions were as follows for the periods shown (in thousands): Fiscal Year Ended 2020 2019 2018 United States $ 305,339 $ 222,743 $ 140,172 Foreign 8,358 15,900 25,599 Total $ 313,697 $ 238,643 $ 165,771 The majority of our revenues from international sales are invoiced from and collected by our U.S. entity and recognized as a component of income before taxes in the United States as opposed to a foreign jurisdiction. Provision for income taxes consisted of the following for the periods shown (in thousands): Fiscal Year Ended 2020 2019 2018 Current provision: Federal $ 11,143 $ 5,466 $ 5,315 State 4,695 4,089 209 Foreign 3,404 7,438 8,022 Total $ 19,242 $ 16,993 13,546 Deferred provision: Federal (1,063 ) (1,910 ) 1,681 State (517 ) (619 ) 330 Foreign (5,083 ) (5,653 ) (963 ) Total $ (6,663 ) $ (8,182 ) $ 1,048 Provision for income taxes $ 12,579 $ 8,811 $ 14,594 Provision for income taxes differed from the amount computed by applying the federal statutory income tax rate of 21.0% , 21.0% , and 33.8% for the fiscal years ended January 31, 2020 , 2019 , and 2018 , respectively, to income before income taxes as a result of the following for the periods shown (in thousands): Fiscal Year Ended 2020 2019 2018 Federal tax statutory tax rate $ 65,876 $ 50,115 $ 56,047 State taxes 3,035 3,139 3,936 Tax credits (23,468 ) (21,415 ) (9,409 ) Domestic manufacturing deduction — — (1,096 ) Stock-based compensation (34,569 ) (33,332 ) (37,347 ) Foreign rate differential 411 610 (2,207 ) Valuation allowance 7,408 6,666 4,010 Impact of foreign operations 470 3,381 4,842 Foreign derived intangible income deduction (FDII) (1) (4,836 ) (2,086 ) — Others (1) (1,748 ) 1,733 (4,182 ) Provision for income taxes $ 12,579 $ 8,811 $ 14,594 ________________ (1) Note that prior periods have been adjusted due to prior period reclassifications. The tax effects of temporary differences that give rise to significant portions of our deferred tax assets and liabilities related to the following (in thousands): January 31, 2020 2019 Deferred Tax Assets: Accruals and reserves $ 10,355 $ 7,678 State income taxes 931 116 Stock-based compensation (1) 9,861 5,180 Net operating loss carryforward 32,916 2,885 Tax credit carryforward 21,458 15,411 Lease liabilities (2) 13,808 — Other 217 435 Gross Deferred Tax Assets $ 89,546 $ 31,705 Valuation Allowance (22,694 ) (15,385 ) Total Deferred Tax Assets $ 66,852 $ 16,320 Deferred Tax Liabilities: Property and equipment $ (650 ) $ (822 ) Intangible assets (33,518 ) (7,159 ) Expensed internal-use software (974 ) (608 ) Lease right-of-use assets (2) (12,717 ) — Deferred costs (1) (8,922 ) (7,888 ) Other (1) (619 ) — Total Deferred Tax Liabilities $ (57,400 ) $ (16,477 ) Net Deferred Tax Assets (Liabilities) $ 9,452 $ (157 ) ________________ (1) Note that prior periods have been adjusted due to prior period reclassifications. (2) Note that current period classifications reflect the adoption of Topic 842. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. As a result, a valuation allowance was assessed as it is not more likely than not that we will recognize the future benefits on certain tax credits and net California deferred tax asset balances. The net impact of our purchase price accounting allocation on our deferred tax assets and liabilities was immaterial. As of January 31, 2020 , the net operating loss carryforwards for federal and state income tax purposes were approximately $110.9 million and $106.3 million , respectively. The federal net operating losses do not expire and the state net operating losses begin to expire in 2033. As of January 31, 2020 , we had $34.8 million of California research and development tax credits available to offset future taxes, which do not expire. We evaluate tax positions for recognition using a more-likely than-not recognition threshold, and those tax positions eligible for recognition are measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon the effective settlement with a taxing authority that has full knowledge of all relevant information. We classify unrecognized tax benefits that are not expected to result in payment or receipt of cash within one year as “other non-current liabilities” in the consolidated balance sheets. As of January 31, 2020 , the total amount of gross unrecognized tax benefits was $14.5 million , of which $6.8 million , if recognized, would favorably impact our effective tax rate. The aggregate changes in our total gross amount of unrecognized tax benefits are summarized as follows for the periods shown (in thousands): Fiscal Year Ended 2020 2019 2018 Beginning balance $ 12,597 $ 11,398 $ 7,868 Increases related to tax positions taken during the prior period 796 968 256 Increases related to tax positions taken during the current period 3,420 2,697 4,032 Decreases related to tax positions taken during the prior period (128 ) (1,754 ) (67 ) Audit settlements — (403 ) — Lapse of statute of limitations (2,170 ) (309 ) (691 ) Ending balance $ 14,515 $ 12,597 $ 11,398 Our policy is to classify interest and penalties associated with unrecognized tax benefits as a component of the provision for income taxes. Interest and penalties were not significant during fiscal year ended January 31, 2020 . We file tax returns in the United States for federal, California, and other states. Fiscal years ended January 31, 2017 and forward remain open to examination for federal income tax, and fiscal years ended January 31, 2015 and forward remain open to examination for California and other states. We file tax returns in multiple foreign jurisdictions. The fiscal years ended January 31, 2014 and forward remain open to examination in these foreign jurisdictions. |
Deferred Revenue and Performanc
Deferred Revenue and Performance Obligations | 12 Months Ended |
Jan. 31, 2020 | |
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 $353.4 million and $264.8 million of subscription services revenue during fiscal years ended January 31, 2020 and 2019 , 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 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 January 31, 2020 was immaterial. As of January 31, 2020 , approximately $897.7 million of revenue is expected to be recognized from remaining performance obligations for subscription services contracts. We expect to recognize revenue on approximately 83% of these remaining performance obligations over the next 12 months , with the balance recognized thereafter. |
Leases
Leases | 12 Months Ended |
Jan. 31, 2020 | |
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 2030, 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 fiscal year ended January 31, 2020 was immaterial. For the fiscal year ended January 31, 2020 , our operating lease expense was $7.9 million . Our finance lease expense was $1.3 million for the fiscal year ended January 31, 2020 . For the fiscal year ended January 31, 2020 , our short-term lease expense was $0.4 million . Supplemental cash flow information related to leases was as follows (in thousands): Year ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows towards operating leases $ 7,657 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 23,546 Operating leases obtained through business combinations $ 14,550 Supplemental balance sheet information related to leases was as follows (in thousands, except lease term and discount rate): January 31, 2020 Operating Leases Lease right-of-use-assets $ 49,132 Lease liabilities $ 8,960 Lease liabilities, noncurrent 44,453 Total operating lease liabilities $ 53,413 Finance Leases Property and equipment, at cost $ 1,761 Accumulated depreciation (1,320 ) Property and equipment, net $ 441 Lease liabilities $ 1,054 Lease liabilities, noncurrent 362 Total finance lease liabilities $ 1,416 Weighted Average Remaining Lease Term Operating leases 7.1 years Finance leases 1.3 years Weighted Average Discount Rate Operating leases 4.3 % Finance leases 4.3 % Maturities of lease liabilities as of January 31, 2020 were as follows (in thousands): Period Operating leases Finance leases Fiscal 2021 $ 10,722 $ 1,090 Fiscal 2022 10,215 364 Fiscal 2023 8,056 — Fiscal 2024 7,311 — Fiscal 2025 5,344 — Thereafter 20,867 — Total lease payments 62,515 1,454 Less imputed interest (9,102 ) (38 ) Total $ 53,413 $ 1,416 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 January 31, 2020 , we have additional operating leases, primarily for office leases, that have not yet commenced of $3.4 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 2030, 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 fiscal year ended January 31, 2020 was immaterial. For the fiscal year ended January 31, 2020 , our operating lease expense was $7.9 million . Our finance lease expense was $1.3 million for the fiscal year ended January 31, 2020 . For the fiscal year ended January 31, 2020 , our short-term lease expense was $0.4 million . Supplemental cash flow information related to leases was as follows (in thousands): Year ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows towards operating leases $ 7,657 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 23,546 Operating leases obtained through business combinations $ 14,550 Supplemental balance sheet information related to leases was as follows (in thousands, except lease term and discount rate): January 31, 2020 Operating Leases Lease right-of-use-assets $ 49,132 Lease liabilities $ 8,960 Lease liabilities, noncurrent 44,453 Total operating lease liabilities $ 53,413 Finance Leases Property and equipment, at cost $ 1,761 Accumulated depreciation (1,320 ) Property and equipment, net $ 441 Lease liabilities $ 1,054 Lease liabilities, noncurrent 362 Total finance lease liabilities $ 1,416 Weighted Average Remaining Lease Term Operating leases 7.1 years Finance leases 1.3 years Weighted Average Discount Rate Operating leases 4.3 % Finance leases 4.3 % Maturities of lease liabilities as of January 31, 2020 were as follows (in thousands): Period Operating leases Finance leases Fiscal 2021 $ 10,722 $ 1,090 Fiscal 2022 10,215 364 Fiscal 2023 8,056 — Fiscal 2024 7,311 — Fiscal 2025 5,344 — Thereafter 20,867 — Total lease payments 62,515 1,454 Less imputed interest (9,102 ) (38 ) Total $ 53,413 $ 1,416 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 January 31, 2020 , we have additional operating leases, primarily for office leases, that have not yet commenced of $3.4 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 | 12 Months Ended |
Jan. 31, 2020 | |
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. Common Stock In connection with our initial public offering in October 2013 (IPO), we amended our certificate of incorporation to provide for Class A common stock, Class B common stock and preferred stock. Immediately prior to the consummation of the IPO, all outstanding shares of convertible preferred stock and common stock were converted into shares of Class B common stock. As a result, following the IPO, we have two classes of authorized common stock: Class A common stock and Class B common stock. As of January 31, 2020 , we had 133,892,725 shares of Class A common stock and 15,202,858 shares of Class B common stock outstanding. As of January 31, 2019 , we had 125,980,019 shares of Class A common stock and 20,210,060 shares of Class B common stock outstanding. Employee Equity Plans 2007 Stock Plan Our board of directors adopted our 2007 Stock Plan (2007 Plan) in February 2007, and our stockholders approved it in February 2007. No further awards have been made under our 2007 Plan since the adoption of the 2012 Equity Incentive Plan. However, awards outstanding under our 2007 Plan will continue to be governed by their existing terms. 2012 Equity Incentive Plan Our board of directors adopted our 2012 Equity Incentive Plan (2012 EIP) in November 2012, and our stockholders approved it in December 2012. An amendment and restatement of the 2012 EIP was approved by our board of directors in March 2013, and our stockholders approved it in March 2013. The 2012 EIP became effective on adoption and replaced our 2007 Plan. No further awards have been made under our 2012 EIP since the adoption of the 2013 Equity Incentive Plan. However, awards outstanding under the 2012 EIP will continue to be governed by their existing terms. 2013 Equity Incentive Plan Our board of directors adopted our 2013 Equity Incentive Plan (2013 EIP) in August 2013, and our stockholders approved it in September 2013. The 2013 EIP became effective immediately on adoption although no awards were made under it until the date of our IPO on October 15, 2013 , at which time our 2013 EIP replaced our 2012 EIP. As of January 31, 2020 , the number of shares of our Class A common stock available for issuance under the 2013 EIP was 28,471,030 plus any shares of our Class B common stock subject to awards under the 2012 EIP and the 2007 Plan that expire or lapse unexercised or, with respect to shares issued pursuant to such awards, are forfeited or repurchased by us after the date of our IPO on October 15, 2013 . The number of shares available for issuance under the 2013 EIP automatically increases on the first business day of each of our fiscal years, commencing in 2014, by a number equal to the least of (a) 13.75 million shares, (b) 5% of the shares of all classes of our common stock outstanding on the last business day of the prior fiscal year, or (c) the number of shares determined by our board of directors. During our fiscal year ended January 31, 2020 , our board of directors determined to add 6,578,553 shares of common stock to the 2013 EIP. 2013 Employee Stock Purchase Plan Our ESPP was adopted by our board of directors in August 2013 and our stockholders approved it in September 2013. The ESPP became effective as of our IPO registration statement on Form S-1, on October 15, 2013. Our ESPP is intended to qualify under Section 423 of the Internal Revenue Code of 1986, as amended (Code). The ESPP was approved with a reserve of 4.0 million shares of Class A common stock for future issuance under various terms provided for in the ESPP. As of January 31, 2020 , the number of shares available for issuance under our ESPP was 4,897,856 . The number of shares available for issuance under the ESPP automatically increases on the first business day of each of our fiscal years, commencing in 2014, by a number equal to the least of (a) 2.2 million shares, (b) 1% of the shares of all classes of our common stock outstanding on the last business day of the prior fiscal year or (c) the number of shares determined by our board of directors. Prior to the beginning of our fiscal year ended January 31, 2020 , our board of directors determined not to increase the number of shares available for issuance under the ESPP. During active offering periods, our ESPP permits eligible employees to acquire shares of our common stock at 85% of the lower of the fair market value of our Class A common stock on the first day of the applicable offering period or the fair market value of our Class A common stock on the purchase date. Participants may purchase shares of common stock through payroll deductions of up to 15% of their eligible compensation, subject to any plan limitations. The initial offering period for our ESPP commenced on the date of our initial public offering and ended on June 15, 2014. We have not had any open offering periods subsequent to the initial offering period. Voting Rights The holders of our Class B common stock are entitled to ten votes per share, and holders of our Class A common stock are entitled to one vote per share. The holders of our Class A common stock and Class B common stock vote together as a single class, unless otherwise required by our restated certificate of incorporation or law. Delaware law could require either holders of our Class A common stock or our Class B common stock to vote separately as a single class in the following circumstances: • if we were to seek to amend our restated certificate of incorporation to increase the authorized number of shares of a class of stock, or to increase or decrease the par value of a class of stock, then that class would be required to vote separately to approve the proposed amendment; and • if we were to seek to amend our restated certificate of incorporation in a manner that alters or changes the powers, preferences or special rights of a class of stock in a manner that affected its holders adversely, then that class would be required to vote separately to approve the proposed amendment. Our restated certificate of incorporation requires the approval of a majority of our outstanding Class B common stock voting as a separate class for any transaction that would result in a change in control of our company. Stockholders do not have the ability to cumulate votes for the election of directors. Our restated certificate of incorporation and amended and restated bylaws that became effective upon the closing of our IPO provide for a classified board of directors consisting of three classes of approximately equal size, each serving staggered three -year terms. Only one class of directors will be elected at each annual meeting of our stockholders, with the other classes continuing for the remainder of their respective three -year terms. Dividend Rights Holders of outstanding shares of our common stock are entitled to receive dividends out of funds legally available if our board of directors, in its discretion, determines to issue dividends and only then at the times and in the amounts that our board of directors may determine. To date, no dividends have been declared or paid by us. No Preemptive or Similar Rights Our common stock is not entitled to preemptive rights and is not subject to conversion, redemption or sinking fund provisions. Right to Receive Liquidation Distributions Upon our dissolution, liquidation or winding-up, the assets legally available for distribution to our stockholders are distributable ratably among the holders of our common stock, subject to prior satisfaction of all outstanding debt and liabilities and the preferential rights and payment of liquidation preferences, if any, on any outstanding shares of preferred stock. Conversion Rights Each outstanding share of Class B common stock is convertible at any time at the option of the holder into one share of Class A common stock. In addition, each share of Class B common stock will convert automatically into one share of Class A common stock upon any transfer, whether or not for value, which occurs following the closing of our IPO, except for certain permitted transfers described in our restated certificate of incorporation, including transfers to any “permitted transferee” as defined in our restated certificate of incorporation, which includes, among others, transfers: • to trusts, corporations, limited liability companies, partnerships, foundations or similar entities established by a Class B stockholder, provided that: • such transfer is to entities established by a Class B stockholder where the Class B stockholder retains the exclusive right to vote and direct the disposition of the shares of Class B common stock; or • such transfer does not involve payment of cash, securities, property or other consideration to the Class B stockholder. Once converted into Class A common stock, a share of Class B common stock may not be reissued. All the outstanding shares of Class A and Class B common stock will convert automatically into shares of a single class of common stock upon the earliest to occur of the following: (i) upon the election of the holders of a majority of the then-outstanding shares of Class B common stock or (ii) October 15, 2023. Following such conversion, each share of common stock will have one vote per share and the rights of the holders of all outstanding common stock will be identical. Once converted into a single class of common stock, the Class A and Class B common stock may not be reissued. Stock Option Activity The 2007 Stock Plan and the 2012 EIP provided, and the 2013 EIP provides, for the issuance of incentive and nonstatutory options to employees, consultants and non-employee directors. Options issued under and outside of the 2007 Plan generally are exercisable for periods not to exceed 10 years and generally vest over four to five years . Options issued under the 2012 EIP and 2013 EIP generally are exercisable for periods not to exceed 10 years and generally vest over five to nine years . A summary of stock option activity for the fiscal year ended January 31, 2020 is presented below: 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 2,502,908 129.79 Options exercised (1,665,778 ) 6.54 Options forfeited/cancelled (350,501 ) 55.16 Options outstanding at January 31, 2020 13,448,026 $ 40.64 5.4 $ 1,426,502,005 Options vested and exercisable at January 31, 2020 6,697,955 $ 6.19 3.2 $ 940,544,986 Options vested and exercisable at January 31, 2020 and expected to vest thereafter 13,448,026 $ 40.64 5.4 $ 1,426,502,005 The weighted average grant-date fair value of options granted during the fiscal years ended January 31, 2020 , 2019 and 2018 was $60.05 , $35.43 , and $30.87 , respectively, per share. As of January 31, 2020 , there was $194.5 million in unrecognized compensation cost related to unvested stock options granted under the 2007 Plan, 2012 EIP and 2013 EIP. This cost is expected to be recognized over a weighted average period of 3.9 years . As of January 31, 2020 , we had authorized and unissued shares of common stock sufficient to satisfy exercises of stock options. Our closing stock price as reported on the New York Stock Exchange as of January 31, 2020 , the last trading day of fiscal year 2020 was $146.61 . The total intrinsic value of options exercised was $229.0 million for the fiscal year ended January 31, 2020 . Restricted Stock Units The 2013 EIP provides for the issuance of RSUs to employees. RSUs issued under the 2013 EIP generally vest over one to five years . A summary of RSU activity for the fiscal year ended January 31, 2020 is presented below: Unreleased restricted stock units Weighted average grant date fair value Balance at January 31, 2019 2,359,132 $ 54.73 RSUs granted 892,667 142.92 RSUs vested (1,239,933 ) 57.73 RSUs forfeited/cancelled (193,244 ) 61.28 Balance at January 31, 2020 1,818,622 $ 95.23 During the fiscal year ended January 31, 2020 , we issued RSUs under the 2013 EIP with a weighted-average grant date fair value of $142.92 . As of January 31, 2020 , there was a total of $157.4 million in unrecognized compensation cost related to unvested RSUs, which are expected to be recognized over a weighted-average period of approximately 2.8 years . The total intrinsic value of RSUs vested was $178.8 million for the fiscal year ended January 31, 2020 . Stock-Based Compensation The following table presents the weighted-average assumptions used to estimate the grant date fair value of options granted during the periods presented: Fiscal year ended January 31, 2020 2019 2018 Volatility 39% – 41% 41% 42% – 44% Expected term (in years) 5.64 – 6.61 6.25 – 6.35 6.35 Risk-free interest rate 1.39% – 2.52% 2.57% – 2.74% 1.86% – 2.21% Dividend yield 0% 0% 0% 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 0 % |
Net Income per Share
Net Income per Share | 12 Months Ended |
Jan. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Income per Share Attributable to Common Stockholders | Net Income per Share Basic net income per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted-average shares outstanding, including potentially dilutive shares of common equivalents outstanding during the period. The dilutive effect of potential shares of common stock are determined using the treasury stock method. The computation of fully diluted net income per share of Class A common stock assumes the conversion from Class B common stock, while the fully diluted net income per share of Class B common stock does not assume the conversion of those shares. The numerators and denominators of the basic and diluted EPS computations for our common stock are calculated as follows (in thousands, except per share data): For the fiscal year ended 2020 2019 2018 (in thousands) Class A Class B Class A Class B Class A Class B Basic Numerator Net income, basic $ 266,104 $ 35,014 $ 194,607 $ 35,225 $ 121,203 $ 29,974 Denominator Weighted average shares used in computing net income per share, basic 130,610 17,186 122,137 22,107 112,491 27,820 Net income per share, basic $ 2.04 $ 2.04 $ 1.59 $ 1.59 $ 1.08 $ 1.08 Diluted Numerator Net income, basic $ 266,104 $ 35,014 $ 194,607 $ 35,225 $ 121,203 $ 29,974 Reallocation as a result of conversion of Class B to Class A common stock: Net income, basic 35,014 — 35,225 — 29,974 — Reallocation of net income to Class B common stock — 17,652 — 14,800 — 10,545 Net income, diluted $ 301,118 $ 52,666 $ 229,832 $ 50,025 $ 151,177 $ 40,519 Denominator Number of shares used for basic EPS computation 130,610 17,186 122,137 22,107 112,491 27,820 Conversion of Class B to Class A common stock 17,186 — 22,107 — 27,820 — Effect of potentially dilutive common shares 10,500 10,500 11,873 11,873 13,370 13,370 Weighted average shares used in computing net income per share, diluted 158,296 27,686 156,117 33,980 153,681 41,190 Net income per share, diluted $ 1.90 $ 1.90 $ 1.47 $ 1.47 $ 0.98 $ 0.98 Potential common share equivalents excluded where the inclusion would be anti-dilutive are as follows: Fiscal Year Ended 2020 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 1,461,255 3,054,322 833,691 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 31, 2020 | |
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. On February 18, 2020, IQVIA filed a motion for sanctions against Veeva, seeking default judgment and dismissal and, in the alternative, a negative inference at trial. The court has referred the motion to the Special Master appointed to assist the court with discovery and pretrial disputes. Discovery is currently in process. 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 gain or loss, if any, that could result from the OpenData and Network Action, we believe that IQVIA’s claims lack merit and that our counterclaims warrant injunctive relief and monetary damages for Veeva. Veeva Nitro Action. On July 17, 2019, IQVIA filed a lawsuit in the U.S. District Court for the District of New Jersey (IQVIA Inc. v. Veeva Systems Inc. (No. 2:19-cv-15517)) (“IQVIA Declaratory Action”) seeking a declaratory judgment that IQVIA is not liable to Veeva for disallowing use of IQVIA’s data products in Veeva Nitro or any later-introduced Veeva 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 March 24, 2020, we amended our complaint in the Veeva Nitro Action to include allegations of IQVIA’s anticompetitive conduct as to additional Veeva software applications, such as Veeva Andi, Veeva Align, and Veeva Vault MedComms; additional examples of IQVIA’s monopolistic behavior against Veeva Nitro; IQVIA’s unlawful access of Veeva’s proprietary software products; and a request for declaratory relief. 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 and declaratory 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. 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 January 31, 2020 , we remained obligated to pay fees of at least $140.0 million prior to September 1, 2025 in connection with this agreement. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Jan. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-Party Transactions In September 2016, we entered into an agreement with Zoom Video Communications, Inc. (Zoom) to embed two of their products into our multichannel CRM applications. Pursuant to this agreement, we will pay Zoom a fixed annual fee that is not material to us. We have also entered into a contract with Zoom pursuant to which Zoom provides conference call, video conference and web conference capabilities for our internal use. Pursuant to this agreement, we pay Zoom a fee based on usage that has not been material in the past and that we do not expect to be material in the future. Our chief executive officer is on the board of directors of Zoom. Also, another member of our board of directors is the founder and a general partner of Emergence Capital Partners, one of Zoom's investors. |
Revenues by Product
Revenues by Product | 12 Months Ended |
Jan. 31, 2020 | |
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): Fiscal Year Ended January 31, 2020 2019 2018 Subscription services Veeva Commercial Cloud $ 468,615 $ 395,039 $ 356,415 Veeva Vault 427,679 299,428 203,019 Total subscription services $ 896,294 $ 694,467 $ 559,434 Professional services Veeva Commercial Cloud $ 76,347 $ 62,557 $ 61,516 Veeva Vault 131,440 105,186 69,609 Total professional services $ 207,787 $ 167,743 $ 131,125 Total revenues $ 1,104,081 $ 862,210 $ 690,559 |
Information about Geographic Ar
Information about Geographic Areas | 12 Months Ended |
Jan. 31, 2020 | |
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): Fiscal Year Ended January 31, 2020 2019 2018 Revenues by geography North America $ 607,704 $ 480,713 $ 377,797 Europe 310,215 228,784 181,940 Asia Pacific 151,052 124,431 107,397 Rest of world (1) 35,110 28,282 23,425 Total revenues $ 1,104,081 $ 862,210 $ 690,559 ___________________________ (1) Middle East, Africa, and Latin America Long-lived assets by geographic area are as follows as of the periods shown below (in thousands): January 31, 2020 2019 2018 Long-lived assets by geography North America $ 51,334 $ 51,748 $ 49,214 Europe and rest of world 2,077 1,783 1,840 Asia Pacific 1,341 1,435 1,230 Total long-lived assets $ 54,752 $ 54,966 $ 52,284 |
401(k) Plan
401(k) Plan | 12 Months Ended |
Jan. 31, 2020 | |
Retirement Benefits [Abstract] | |
401(k) Plan | 401(k) Plan We have a qualified defined contribution plan under Section 401(k) of the Code covering eligible employees as well as a Registered Retirement Savings Plan (RRSP) for eligible employees in Canada. Under the 401(k) plan, we match up to $2,000 per employee per year. Under the RRSP plan, we also match up to $2,000 per employee per year. For the fiscal years ended January 31, 2020 , 2019 , and 2018 , total expense related to these plans was $3.9 million , $3.3 million , and $0.4 million respectively. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Jan. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | Selected Quarterly Financial Data (Unaudited) Selected summarized quarterly financial information for fiscal years ended January 31, 2020 and 2019 is as follows (in thousands): Three Months Ended Jan. 31, Oct. 31, Jul. 31, Apr. 30, Jan. 31, Oct. 31, Jul. 31, Apr. 30, (in thousands) Consolidated Statements of Income Data: Total revenues $ 311,508 $ 280,921 $ 266,900 $ 244,752 $ 232,323 $ 224,731 $ 209,609 $ 195,547 Gross profit 217,189 207,592 196,682 179,249 167,797 163,357 150,383 135,392 Operating income 60,394 80,800 73,856 71,169 62,998 63,094 52,818 43,956 Net income $ 66,182 $ 82,245 $ 79,242 $ 73,449 $ 71,151 $ 64,085 $ 50,286 $ 44,310 Net income per share: Basic $ 0.44 $ 0.56 $ 0.54 $ 0.50 $ 0.49 $ 0.44 $ 0.35 $ 0.31 Diluted $ 0.42 $ 0.52 $ 0.50 $ 0.47 $ 0.45 $ 0.41 $ 0.32 $ 0.29 |
Summary of Business and Signi_2
Summary of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2020 | |
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. Our commercial solutions help life sciences companies achieve better, more intelligent engagement with healthcare professionals and healthcare organizations across multiple communication channels, and plan and execute more effective media and marketing campaigns. Our R&D solutions for the clinical, regulatory, quality, and safety functions help life sciences companies streamline their end-to-end product development processes to increase operational efficiency and maintain regulatory compliance throughout the product life cycle. We also bring the benefits of our content and data management solutions to a set of customers outside of life sciences in three regulated industries: consumer 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 consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding annual financial reporting and include the accounts of our wholly-owned subsidiaries after elimination of intercompany accounts and transactions. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates, judgments and assumptions that affect the consolidated financial statements and the notes thereto. These estimates are based on information available as of the date of the consolidated financial statements. On a regular basis, management evaluates these estimates and assumptions. Items subject to such estimates and assumptions include, but are not limited to: • the standalone selling price for each distinct performance obligation included in customer contracts with multiple performance obligations; • the determination of the period of benefit for amortization of deferred costs; and • the fair value of assets acquired and liabilities assumed for business combinations. As future events cannot be determined with precision, actual results could differ significantly from those estimates. |
Segment Information | Segment Information Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assessing performance. We define the term “chief operating decision maker” to be our Chief Executive Officer. Our Chief Executive Officer reviews the financial information presented on a consolidated basis for purposes of allocating resources and evaluating our financial performance. Accordingly, we have determined that we operate in a single reportable operating segment. Since we operate in one operating segment, all required financial segment information can be found in the consolidated financial statements. |
Revenue Recognition | Revenue Recognition We derive our revenues primarily from subscription services 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 as the services are delivered based on time incurred. 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 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 the expected renewal period of our customer contracts, our technology and other factors. Amortization expense is included in sales and marketing expenses in the accompanying consolidated statements of comprehensive income. |
Certain Risks and Concentrations of Credit Risk | Certain Risks and Concentrations of Credit Risk Our revenues are derived from subscription services, professional services and other services delivered primarily to the life sciences industry. We operate in markets that are highly competitive and rapidly changing. Significant technological changes, shifting customer needs, the emergence of competitive products or services with new capabilities, and other factors could negatively impact our future operating results. Our financial instruments that potentially subject us to concentration of credit risk consist primarily of cash and cash equivalents, short-term investments and trade accounts receivable. Our cash equivalents and short-term investments are held by established financial institutions. We have established guidelines relative to credit ratings, diversification and maturities that seek to maintain safety and liquidity. Deposits in these financial institutions may significantly exceed federally insured limits. We do not require collateral from our customers and generally require payment within 30 days to 60 days of billing. |
Cash Equivalents | Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. |
Short-term Investments | Short-term Investments Our short-term investments are classified as available-for-sale and recorded at estimated fair value. Unrealized gains and losses for available-for-sale securities are included in accumulated other comprehensive income, a component of stockholders’ equity. We evaluate our investments to assess whether those with unrealized loss positions are other than temporarily impaired. We consider impairments to be other than temporary if they are related to deterioration in credit risk or if it is likely we will sell the securities before the recovery of their cost basis. Realized gains and losses and declines in value judged to be other than temporary are determined based on the specific identification method and are reported in other income, net, in the consolidated statements of comprehensive income. Interest, amortization of premiums, and accretion of discount on all short-term investments are also included as a component of other income, net, in the consolidated statements of comprehensive income. We may sell our short-term investments at any time, without significant penalty, for use in current operations or for other purposes, even if they have not yet reached maturity. As a result, we classify our investments, including securities with maturities beyond 12 months as current assets in the accompanying consolidated balance sheets. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at the invoiced amount, net of allowance for doubtful accounts, which is not material. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets and commences once the asset is placed in service or ready for its intended use. Land is not depreciated. The estimated useful lives by asset classification are as follows: Asset Classification Estimated Useful Life Building 30 years Land and building improvements 10 years (land improvements) and estimated useful life of building (building improvements) Equipment and computers 3 years Furniture and fixtures 5 years Leasehold improvements Shorter of remaining life of the lease term or estimated useful life |
Leases | Leases We have operating and finance leases for corporate offices, data centers, and certain equipment. Additionally, we are the sublessor for certain office space. 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. The lease right-of-use assets also include any lease payments made and exclude lease incentives such as tenant improvement allowances. Options to extend or terminate the lease are included in the lease term when it is reasonably certain that we will exercise the extension or termination option. Our operating leases typically include non-lease components such as common-area maintenance costs. We have elected to exclude non-lease components from lease payments for the purpose of calculating lease right-of-use assets and liabilities and these 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. |
Internal-Use Software | Internal-Use Software We capitalize certain costs incurred for the development of computer software for internal use. We capitalize these costs during the development of the project, when it is determined that it is probable that the project will be completed, and the software will be used as intended. Costs related to preliminary project activities, post-implementation activities, training and maintenance are expensed as incurred. Internal-use software is amortized on a straight-line basis over its estimated useful life of three years , and the amortization expense is recorded as a component of cost of subscription services. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill is tested for impairment annually in the fourth quarter of each year or if circumstances indicate the carrying value of goodwill is impaired. We have one reporting unit and evaluate goodwill for impairment at the entity level. We completed our annual impairment test in our fourth quarter of the fiscal year ended January 31, 2020 , which did no t result in any impairment of the goodwill balance. All other intangible assets associated with purchased intangibles, consisting of existing technology, databases, customer relationships, software, trade names and trademarks, data supplier and partner relationships, non-competition agreements, brand, and backlog are stated at cost less accumulated amortization and are amortized on a straight-line basis over their estimated remaining economic lives. Amortization expense related to existing technology, databases, data supplier and partner relationships, software, and backlog is included in cost of subscription services. Amortization expense related to customer relationships, trade names and trademarks, and brand are included in sales and marketing expense. Amortization expense related to non-competition agreements are included in both general and administrative and research and development expense. |
Long-Lived Assets | Long-Lived Assets Long-lived assets, such as property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, we first compare undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. There were no impairment charges recognized during any of the periods presented. |
Business Combinations | Business Combinations The purchase price in a business combination is assigned to the estimated acquisition date fair values of the tangible and intangible assets acquired and the liabilities assumed with the residual recorded as goodwill. Critical estimates in valuing certain of the intangible assets include, but are not limited to, the net present value of future expected cash flows, future revenue growth, margins, customer retention rates, technology life, royalty rates, expected use of acquired assets, and discount rates. |
Stock-based Compensation | Stock-based Compensation We recognize compensation expense for all stock-based awards, including stock options and restricted stock units (RSUs), based on the estimate of fair value of the award at the grant date. The fair value of each option award is estimated on the grant date using either a Monte Carlo simulation for market condition awards or Black-Scholes option-pricing model and a single option award approach. These models require that at the date of grant we determine the fair value of the underlying common stock, the expected term of the award, the expected volatility of the price of our common stock, risk-free interest rates, and expected dividend yield of our common stock. The fair value of each RSU award is measured based on the closing stock price of our common stock on the date of grant. We account for forfeitures as they occur. The compensation expense is recognized using a straight-line basis over the requisite service periods of the awards, which is generally four to nine years . |
Cost of Revenues | Cost of Revenues Cost of subscription services revenues consists of expenses related to our computing infrastructure provided by third parties, including salesforce.com and Amazon Web Services, personnel related costs associated with hosting our subscription services and providing support, including our data stewards, data acquisition costs, and allocated overhead, amortization expense associated with capitalized internal-use software related to our subscription services, and amortization expense associated with purchased intangibles related to our subscription services. Cost of subscription services revenues for Veeva CRM and certain of our multichannel customer relationship management applications includes fees paid to salesforce.com for our use of the Salesforce1 Platform and the associated hosting infrastructure and data center operations that are provided by salesforce.com. Cost of professional services and other revenues consists primarily of employee-related expenses associated with providing these services, including salaries, benefits and stock-based compensation expense, the cost of third-party subcontractors, travel costs and allocated overhead. |
Advertising Expenses | Advertising Expenses |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We regularly assess the realizability of our deferred tax assets and establish a valuation allowance if it is more-likely-than-not that some or all of our deferred tax assets will not be realized. We evaluate and weigh all available positive and negative evidence such as historic results, future reversals of existing deferred tax liabilities, projected future taxable income, as well as prudent and feasible tax-planning strategies. Generally, more weight is given to objectively verifiable evidence, such as the cumulative income in recent years. We establish liabilities or reduce assets for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining whether the weight of available evidence indicates that it is more likely than not that the position will be sustained upon an audit, including resolution of related appeals or litigation processes, if any. The second step requires us to measure the tax benefit as the largest amount that is more likely than not to be realized upon ultimate settlement. We recognize interest accrued and penalties related to unrecognized tax benefits as a component of provision for income taxes. |
Foreign Currency Exchange | Foreign Currency Exchange Adjustments resulting from translating financial statements for those entities that do not have U.S. dollars as their functional currency are recorded as part of a separate component of the consolidated statements of comprehensive income. All assets and liabilities denominated in non-functional currency are translated into the functional currency at the exchange rate on the balance sheet date. Revenues and expenses are translated at the average exchange rate during the period. Equity transactions are translated using historical exchange rates. Foreign currency transaction gains and losses are included in the consolidated statements of comprehensive income for the period. |
Indemnification | Indemnification Our contracts generally include provisions for indemnifying customers against liabilities if our solutions infringe a third party’s intellectual property rights, and we may also incur liabilities if we breach the security and/or confidentiality obligations in our contracts. To date, we have not incurred any material costs, and we have not accrued any liabilities in the accompanying consolidated financial statements, as a result of these obligations. |
Contingencies | Loss Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment or remediation can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. |
New Accounting Pronouncements Adopted in Fiscal 2020 | New Accounting Pronouncements Adopted in Fiscal 2020 Leases In February 2016, the FASB issued Topic 842 and related subsequent amendments, 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. 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. Consequently, financial information for dates and periods before February 1, 2019 remain unchanged. 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. We have also 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. 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. 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 | Basic net income per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted-average shares outstanding, including potentially dilutive shares of common equivalents outstanding during the period. The dilutive effect of potential shares of common stock are determined using the treasury stock method. The computation of fully diluted net income per share of Class A common stock assumes the conversion from Class B common stock, while the fully diluted net income per share of Class B common stock does not assume the conversion of those shares. |
Summary of Business and Signi_3
Summary of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Certain Risks and Concentrations of Credit Risk | The following customers individually exceeded 10% of total accounts receivable as of the dates shown: January 31, January 31, Customer 1 14% 17% Customer 2 * 10% ________________________________ * Does not exceed 10%. |
Schedule of Estimated Useful Lives by Asset Classification | The estimated useful lives by asset classification are as follows: Asset Classification Estimated Useful Life Building 30 years Land and building improvements 10 years (land improvements) and estimated useful life of building (building improvements) Equipment and computers 3 years Furniture and fixtures 5 years Leasehold improvements Shorter of remaining life of the lease term or estimated useful life |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Business Combinations [Abstract] | |
Estimated Fair Values of Assets and Liabilities Assumed | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands): Useful lives of intangible assets Fair value Net assets acquired $ 1,221 Identifiable intangible assets: Customer relationships 10 years $ 7,700 Existing technology 6 years 3,300 Trade name/Trademarks 3 years 700 Purchased intangible assets $ 11,700 Goodwill $ 28,083 Total purchase price $ 41,004 The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands): Useful lives of intangible assets Fair value Net assets acquired $ 4,766 Identifiable intangible assets: Customer relationships 10 years $ 70,100 Existing technology 6 years 19,200 Trade name/Trademarks 5 years 13,200 Other intangibles 1 to 7 years 6,000 Purchased intangible assets $ 108,500 Goodwill $ 314,642 Total purchase consideration $ 427,908 |
Schedule of Pro Forma Information from Business Acquisition | Accordingly, these unaudited pro forma results are presented for information purpose only and are not necessarily indicative of what the actual results of operations of the combined company would have been if the acquisition had occurred at the beginning of the period presented, nor are they indicative of future results of operations (in thousands): For the fiscal year ended January 31, 2020 2019 (Unaudited) Pro forma revenues $ 1,153,497 $ 913,081 Pro forma net income $ 278,215 $ 201,382 Pro forma net income per share: Basic $ 1.88 $ 1.40 Diluted $ 1.76 $ 1.29 |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Short-Term Investments | At January 31, 2020 , 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 $ 3 $ — $ 3,503 Asset-backed securities 100,419 396 (1 ) 100,814 Commercial paper 19,965 5 (1 ) 19,969 Corporate notes and bonds 234,664 1,552 (2 ) 236,214 Foreign government bonds 3,397 10 — 3,407 U.S. treasury securities 245,509 599 — 246,108 Total available-for-sale securities $ 607,454 $ 2,565 $ (4 ) $ 610,015 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 |
Summary of Estimated Fair Value of Short-Term Investments, Designated as Available-for-Sale and Classified by Contractual Maturity | The following table summarizes the estimated fair value of our short-term investments, designated as available-for-sale and classified by the contractual maturity date of the securities as of the dates shown (in thousands): January 31, 2020 2019 Due in one year or less $ 247,592 $ 377,858 Due in greater than one year 362,423 161,332 Total $ 610,015 $ 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 an unrealized loss position for more than 12 months, aggregated by investment category as of January 31, 2020 (in thousands): Fair value Unrealized losses Asset-backed securities 2,623 (1 ) Commercial paper 5,589 (1 ) Corporate notes and bonds 9,105 (2 ) The following table shows the fair values of these available-for-sale securities, some of which have been in an unrealized loss position for more than 12 months, aggregated by investment category as of January 31, 2019 (in thousands): Fair value 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) | 12 Months Ended |
Jan. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property and equipment, net consists of the following as of the dates shown (in thousands): January 31, 2020 2019 Land $ 3,040 $ 3,040 Building 20,984 20,984 Land improvements and building improvements 22,392 20,911 Equipment and computers 11,066 7,945 Furniture and fixtures 12,849 11,230 Leasehold improvements 9,385 6,790 Construction in progress 386 330 80,102 71,230 Less accumulated depreciation (25,350 ) (16,264 ) Total property and equipment, net $ 54,752 $ 54,966 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Details of Intangible Assets | The following schedule presents the details of intangible assets as of January 31, 2020 (dollar amounts in thousands): January 31, 2020 Gross carrying amount Accumulated amortization Net Remaining useful life (in years) Existing technology $ 26,380 $ (4,808 ) $ 21,572 5.8 Customer relationships 111,443 (17,575 ) 93,868 9.0 Trade name/Trademarks 13,900 (720 ) 13,180 4.7 Other intangibles 22,947 (16,966 ) 5,981 5.0 $ 174,670 $ (40,069 ) $ 134,601 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 Customer relationships 33,643 (12,350 ) 21,293 6.6 Other intangibles 16,947 (13,765 ) 3,182 1.2 $ 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 January 31, 2020 (in thousands): Estimated amortization expense Period Fiscal 2021 $ 19,595 Fiscal 2022 18,397 Fiscal 2023 18,342 Fiscal 2024 18,160 Fiscal 2025 17,417 Thereafter 42,690 Total $ 134,601 |
Schedule of Goodwill | The following schedule presents the details of goodwill as of January 31, 2020 (in thousands): Goodwill Balance as of January 31, 2019 $ 95,804 Goodwill from Crossix acquisition 314,642 Goodwill from Physicians World acquisition 28,083 Balance as of January 31, 2020 $ 438,529 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following as of the dates shown (in thousands): January 31, 2020 2019 Accrued commissions $ 8,951 $ 2,633 Accrued bonus 4,329 2,848 Accrued vacation 3,921 3,110 Payroll tax payable 7,353 1,971 Accrued other compensation and benefits 1,065 4,762 Total accrued compensation and benefits $ 25,619 $ 15,324 Accrued fees payable to salesforce.com 5,787 5,242 Accrued third-party professional services subcontractors' fees 1,338 1,619 Taxes payable 4,914 2,805 Other accrued expenses 9,581 6,479 Total accrued expenses and other current liabilities $ 21,620 $ 16,145 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Hierarchy for Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the fair value hierarchy for financial assets measured at fair value on a recurring basis as of January 31, 2020 (in thousands): Level 1 Level 2 Total Assets Cash equivalents: Money market funds $ 24,107 $ — $ 24,107 Commercial paper — 1,616 1,616 Corporate notes and bonds — 2,245 2,245 Short-term investments: Certificates of deposits — 3,503 3,503 Asset-backed securities — 100,815 100,815 Commercial paper — 19,969 19,969 Corporate notes and bonds — 236,214 236,214 Foreign government bonds — 3,407 3,407 U.S. treasury securities — 246,107 246,107 Foreign currency derivative contracts — 75 75 Total $ 24,107 $ 613,951 $ 638,058 Liabilities Foreign currency derivative contracts — 42 42 Total $ — $ 42 $ 42 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 Fair Value of Outstanding Derivative Instruments | The fair value of our outstanding derivative instruments is summarized below (in thousands): January 31, 2020 2019 Notional amount of foreign currency derivative contracts $ 7,304 $ (5,112 ) Fair value of foreign currency derivative contracts 7,271 (5,024 ) |
Summary of Outstanding Balance Sheet Hedges | Details on outstanding balance sheet hedges are presented below as of the date shown below (in thousands): January 31, 2020 2019 Derivative Assets Balance Sheet Location Derivatives not designated as hedging instruments: Foreign currency derivative contracts Prepaid expenses and other current assets $ 75 $ — Derivative Liabilities Derivatives not designated as hedging instruments: Foreign currency derivative contracts Accrued expenses $ 42 $ 88 |
Other Income, Net (Tables)
Other Income, Net (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income | Other income, net consisted of the following (in thousands): Fiscal Year Ended January 31, 2020 2019 2018 Foreign currency gain (loss) $ (708 ) $ (2,103 ) $ 1,177 Accretion (amortization) on investments 3,001 2,492 (1,718 ) Interest income 25,185 15,388 8,383 Other income, net $ 27,478 $ 15,777 $ 7,842 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of Income before Income Taxes | The components of income before income taxes by U.S. and foreign jurisdictions were as follows for the periods shown (in thousands): Fiscal Year Ended 2020 2019 2018 United States $ 305,339 $ 222,743 $ 140,172 Foreign 8,358 15,900 25,599 Total $ 313,697 $ 238,643 $ 165,771 |
Components of Provision for Income Taxes | Provision for income taxes consisted of the following for the periods shown (in thousands): Fiscal Year Ended 2020 2019 2018 Current provision: Federal $ 11,143 $ 5,466 $ 5,315 State 4,695 4,089 209 Foreign 3,404 7,438 8,022 Total $ 19,242 $ 16,993 13,546 Deferred provision: Federal (1,063 ) (1,910 ) 1,681 State (517 ) (619 ) 330 Foreign (5,083 ) (5,653 ) (963 ) Total $ (6,663 ) $ (8,182 ) $ 1,048 Provision for income taxes $ 12,579 $ 8,811 $ 14,594 |
Reconciliation of Statutory Federal Income Tax to Effective Tax | Provision for income taxes differed from the amount computed by applying the federal statutory income tax rate of 21.0% , 21.0% , and 33.8% for the fiscal years ended January 31, 2020 , 2019 , and 2018 , respectively, to income before income taxes as a result of the following for the periods shown (in thousands): Fiscal Year Ended 2020 2019 2018 Federal tax statutory tax rate $ 65,876 $ 50,115 $ 56,047 State taxes 3,035 3,139 3,936 Tax credits (23,468 ) (21,415 ) (9,409 ) Domestic manufacturing deduction — — (1,096 ) Stock-based compensation (34,569 ) (33,332 ) (37,347 ) Foreign rate differential 411 610 (2,207 ) Valuation allowance 7,408 6,666 4,010 Impact of foreign operations 470 3,381 4,842 Foreign derived intangible income deduction (FDII) (1) (4,836 ) (2,086 ) — Others (1) (1,748 ) 1,733 (4,182 ) Provision for income taxes $ 12,579 $ 8,811 $ 14,594 ________________ (1) Note that prior periods have been adjusted due to prior period reclassifications. |
Components of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of our deferred tax assets and liabilities related to the following (in thousands): January 31, 2020 2019 Deferred Tax Assets: Accruals and reserves $ 10,355 $ 7,678 State income taxes 931 116 Stock-based compensation (1) 9,861 5,180 Net operating loss carryforward 32,916 2,885 Tax credit carryforward 21,458 15,411 Lease liabilities (2) 13,808 — Other 217 435 Gross Deferred Tax Assets $ 89,546 $ 31,705 Valuation Allowance (22,694 ) (15,385 ) Total Deferred Tax Assets $ 66,852 $ 16,320 Deferred Tax Liabilities: Property and equipment $ (650 ) $ (822 ) Intangible assets (33,518 ) (7,159 ) Expensed internal-use software (974 ) (608 ) Lease right-of-use assets (2) (12,717 ) — Deferred costs (1) (8,922 ) (7,888 ) Other (1) (619 ) — Total Deferred Tax Liabilities $ (57,400 ) $ (16,477 ) Net Deferred Tax Assets (Liabilities) $ 9,452 $ (157 ) ________________ (1) Note that prior periods have been adjusted due to prior period reclassifications. (2) Note that current period classifications reflect the adoption of Topic 842. |
Summary of Changes in Total Gross Amount of Unrecognized Tax Benefits | The aggregate changes in our total gross amount of unrecognized tax benefits are summarized as follows for the periods shown (in thousands): Fiscal Year Ended 2020 2019 2018 Beginning balance $ 12,597 $ 11,398 $ 7,868 Increases related to tax positions taken during the prior period 796 968 256 Increases related to tax positions taken during the current period 3,420 2,697 4,032 Decreases related to tax positions taken during the prior period (128 ) (1,754 ) (67 ) Audit settlements — (403 ) — Lapse of statute of limitations (2,170 ) (309 ) (691 ) Ending balance $ 14,515 $ 12,597 $ 11,398 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Leases [Abstract] | |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows (in thousands): Year ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows towards operating leases $ 7,657 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 23,546 Operating leases obtained through business combinations $ 14,550 |
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): January 31, 2020 Operating Leases Lease right-of-use-assets $ 49,132 Lease liabilities $ 8,960 Lease liabilities, noncurrent 44,453 Total operating lease liabilities $ 53,413 Finance Leases Property and equipment, at cost $ 1,761 Accumulated depreciation (1,320 ) Property and equipment, net $ 441 Lease liabilities $ 1,054 Lease liabilities, noncurrent 362 Total finance lease liabilities $ 1,416 Weighted Average Remaining Lease Term Operating leases 7.1 years Finance leases 1.3 years Weighted Average Discount Rate Operating leases 4.3 % Finance leases 4.3 % |
Maturities of Leases Liabilities | Maturities of lease liabilities as of January 31, 2020 were as follows (in thousands): Period Operating leases Finance leases Fiscal 2021 $ 10,722 $ 1,090 Fiscal 2022 10,215 364 Fiscal 2023 8,056 — Fiscal 2024 7,311 — Fiscal 2025 5,344 — Thereafter 20,867 — Total lease payments 62,515 1,454 Less imputed interest (9,102 ) (38 ) Total $ 53,413 $ 1,416 |
Future Minimum Lease Payments Under Non-cancelable Operating Leases | 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) | 12 Months Ended |
Jan. 31, 2020 | |
Summary of Stock Option Activity | A summary of stock option activity for the fiscal year ended January 31, 2020 is presented below: 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 2,502,908 129.79 Options exercised (1,665,778 ) 6.54 Options forfeited/cancelled (350,501 ) 55.16 Options outstanding at January 31, 2020 13,448,026 $ 40.64 5.4 $ 1,426,502,005 Options vested and exercisable at January 31, 2020 6,697,955 $ 6.19 3.2 $ 940,544,986 Options vested and exercisable at January 31, 2020 and expected to vest thereafter 13,448,026 $ 40.64 5.4 $ 1,426,502,005 |
Summary of RSU Activity | A summary of RSU activity for the fiscal year ended January 31, 2020 is presented below: Unreleased restricted stock units Weighted average grant date fair value Balance at January 31, 2019 2,359,132 $ 54.73 RSUs granted 892,667 142.92 RSUs vested (1,239,933 ) 57.73 RSUs forfeited/cancelled (193,244 ) 61.28 Balance at January 31, 2020 1,818,622 $ 95.23 |
Schedule of Weighted-Average Assumptions Used to Estimate Grant Date Fair Value of Options Granted | The following table presents the weighted-average assumptions used to estimate the grant date fair value of options granted during the periods presented: Fiscal year ended January 31, 2020 2019 2018 Volatility 39% – 41% 41% 42% – 44% Expected term (in years) 5.64 – 6.61 6.25 – 6.35 6.35 Risk-free interest rate 1.39% – 2.52% 2.57% – 2.74% 1.86% – 2.21% Dividend yield 0% 0% 0% |
CEO | |
Schedule of Weighted-Average Assumptions Used to Estimate Grant Date Fair Value of Options Granted | The following table provides the assumptions used in the Monte Carlo simulation for each tranche granted: Volatility 41 % Expected term (in years) 10.00 Risk-free interest rate 2.53 % Dividend yield 0 % |
Net Income per Share (Tables)
Net Income per Share (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Earnings Per Share [Abstract] | |
Numerators and Denominators of the Basic and Diluted EPS Computations for Common Stock | The numerators and denominators of the basic and diluted EPS computations for our common stock are calculated as follows (in thousands, except per share data): For the fiscal year ended 2020 2019 2018 (in thousands) Class A Class B Class A Class B Class A Class B Basic Numerator Net income, basic $ 266,104 $ 35,014 $ 194,607 $ 35,225 $ 121,203 $ 29,974 Denominator Weighted average shares used in computing net income per share, basic 130,610 17,186 122,137 22,107 112,491 27,820 Net income per share, basic $ 2.04 $ 2.04 $ 1.59 $ 1.59 $ 1.08 $ 1.08 Diluted Numerator Net income, basic $ 266,104 $ 35,014 $ 194,607 $ 35,225 $ 121,203 $ 29,974 Reallocation as a result of conversion of Class B to Class A common stock: Net income, basic 35,014 — 35,225 — 29,974 — Reallocation of net income to Class B common stock — 17,652 — 14,800 — 10,545 Net income, diluted $ 301,118 $ 52,666 $ 229,832 $ 50,025 $ 151,177 $ 40,519 Denominator Number of shares used for basic EPS computation 130,610 17,186 122,137 22,107 112,491 27,820 Conversion of Class B to Class A common stock 17,186 — 22,107 — 27,820 — Effect of potentially dilutive common shares 10,500 10,500 11,873 11,873 13,370 13,370 Weighted average shares used in computing net income per share, diluted 158,296 27,686 156,117 33,980 153,681 41,190 Net income per share, diluted $ 1.90 $ 1.90 $ 1.47 $ 1.47 $ 0.98 $ 0.98 |
Potential Common Share Equivalents Excluded where the Inclusion would be Anti-dilutive | Potential common share equivalents excluded where the inclusion would be anti-dilutive are as follows: Fiscal Year Ended 2020 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 1,461,255 3,054,322 833,691 |
Revenues by Product (Tables)
Revenues by Product (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Total Revenues | Total revenues consist of the following (in thousands): Fiscal Year Ended January 31, 2020 2019 2018 Subscription services Veeva Commercial Cloud $ 468,615 $ 395,039 $ 356,415 Veeva Vault 427,679 299,428 203,019 Total subscription services $ 896,294 $ 694,467 $ 559,434 Professional services Veeva Commercial Cloud $ 76,347 $ 62,557 $ 61,516 Veeva Vault 131,440 105,186 69,609 Total professional services $ 207,787 $ 167,743 $ 131,125 Total revenues $ 1,104,081 $ 862,210 $ 690,559 |
Information about Geographic _2
Information about Geographic Areas (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Segment Reporting [Abstract] | |
Revenues by Geographic Area | Total revenues by geographic area were as follows for the periods shown below (in thousands): Fiscal Year Ended January 31, 2020 2019 2018 Revenues by geography North America $ 607,704 $ 480,713 $ 377,797 Europe 310,215 228,784 181,940 Asia Pacific 151,052 124,431 107,397 Rest of world (1) 35,110 28,282 23,425 Total revenues $ 1,104,081 $ 862,210 $ 690,559 ___________________________ (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): January 31, 2020 2019 2018 Long-lived assets by geography North America $ 51,334 $ 51,748 $ 49,214 Europe and rest of world 2,077 1,783 1,840 Asia Pacific 1,341 1,435 1,230 Total long-lived assets $ 54,752 $ 54,966 $ 52,284 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Information | Selected summarized quarterly financial information for fiscal years ended January 31, 2020 and 2019 is as follows (in thousands): Three Months Ended Jan. 31, Oct. 31, Jul. 31, Apr. 30, Jan. 31, Oct. 31, Jul. 31, Apr. 30, (in thousands) Consolidated Statements of Income Data: Total revenues $ 311,508 $ 280,921 $ 266,900 $ 244,752 $ 232,323 $ 224,731 $ 209,609 $ 195,547 Gross profit 217,189 207,592 196,682 179,249 167,797 163,357 150,383 135,392 Operating income 60,394 80,800 73,856 71,169 62,998 63,094 52,818 43,956 Net income $ 66,182 $ 82,245 $ 79,242 $ 73,449 $ 71,151 $ 64,085 $ 50,286 $ 44,310 Net income per share: Basic $ 0.44 $ 0.56 $ 0.54 $ 0.50 $ 0.49 $ 0.44 $ 0.35 $ 0.31 Diluted $ 0.42 $ 0.52 $ 0.50 $ 0.47 $ 0.45 $ 0.41 $ 0.32 $ 0.29 |
Summary of Business and Signi_4
Summary of Business and Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Jan. 31, 2020USD ($)regulated_industrySegmentCustomer | Jan. 31, 2019USD ($)Customer | Jan. 31, 2018USD ($)Customer | |
Summary Of Business And Accounting Policies [Line Items] | |||
Number of regulated industries operated within | regulated_industry | 3 | ||
Period of amortization | 3 years | ||
Highly liquid investments maturity | 3 months | ||
Number of operating segment | Segment | 1 | ||
Impairment of goodwill | $ 0 | ||
Impairment recognized for long-lived assets | $ 0 | $ 0 | $ 0 |
Internal-Use Software | |||
Summary Of Business And Accounting Policies [Line Items] | |||
Useful life of intangible assets | 3 years | ||
Minimum | |||
Summary Of Business And Accounting Policies [Line Items] | |||
Customer payment period | 30 days | ||
Minimum | 2007 Stock Plan | |||
Summary Of Business And Accounting Policies [Line Items] | |||
Share-based compensation cost recognition vesting service period | 4 years | ||
Maximum | |||
Summary Of Business And Accounting Policies [Line Items] | |||
Customer payment period | 60 days | ||
Maximum | 2007 Stock Plan | |||
Summary Of Business And Accounting Policies [Line Items] | |||
Share-based compensation cost recognition vesting service period | 9 years | ||
Customer concentration risk | Revenues | |||
Summary Of Business And Accounting Policies [Line Items] | |||
Number Of Customers | Customer | 0 | 0 | 0 |
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 | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Customer 1 | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 14.00% | 17.00% |
Customer 2 | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 10.00% |
Summary of Business and Signi_6
Summary of Business and Significant Accounting Policies - Schedule of Estimated Useful Lives by Asset Classification (Detail) | 12 Months Ended |
Jan. 31, 2020 | |
Building | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 30 years |
Land and building improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life description | 10 years (land improvements) and estimated useful life of building (building improvements) |
Equipment and computers | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life description | Shorter of remaining life of the lease term or estimated useful life |
Acquisitions (Details)
Acquisitions (Details) $ in Millions | Nov. 07, 2019USD ($) | Nov. 01, 2019USD ($) | Jan. 31, 2020acquisition |
Business Acquisition [Line Items] | |||
Number of acquisitions completed | acquisition | 2 | ||
Crossix | |||
Business Acquisition [Line Items] | |||
Percentage of voting interests acquired | 100.00% | ||
Total consideration | $ 427.9 | ||
Value of awards transferred | 120 | ||
Acquisition related costs | $ 1 | ||
Physicians World | |||
Business Acquisition [Line Items] | |||
Total consideration | $ 41 | ||
Value of awards transferred | 15 | ||
Acquisition related costs | $ 0.3 |
Acquisitions - Schedule of Asse
Acquisitions - Schedule of Assets and Liabilities Assumed (Details) - USD ($) $ in Thousands | Nov. 07, 2019 | Nov. 01, 2019 | Jan. 31, 2020 | Jan. 31, 2019 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 438,529 | $ 95,804 | ||
Crossix | ||||
Business Acquisition [Line Items] | ||||
Net assets acquired | $ 4,766 | |||
Identifiable intangible assets: | 108,500 | |||
Goodwill | 314,642 | |||
Total purchase consideration | $ 427,908 | |||
Physicians World | ||||
Business Acquisition [Line Items] | ||||
Net assets acquired | $ 1,221 | |||
Identifiable intangible assets: | 11,700 | |||
Goodwill | 28,083 | |||
Total purchase consideration | $ 41,004 | |||
Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Useful lives of intangible assets | 10 years | 10 years | ||
Customer relationships | Crossix | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets: | $ 70,100 | |||
Customer relationships | Physicians World | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets: | $ 7,700 | |||
Existing technology | ||||
Business Acquisition [Line Items] | ||||
Useful lives of intangible assets | 6 years | 6 years | ||
Existing technology | Crossix | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets: | $ 19,200 | |||
Existing technology | Physicians World | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets: | $ 3,300 | |||
Trade name/Trademarks | ||||
Business Acquisition [Line Items] | ||||
Useful lives of intangible assets | 3 years | 5 years | ||
Trade name/Trademarks | Crossix | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets: | $ 13,200 | |||
Trade name/Trademarks | Physicians World | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets: | $ 700 | |||
Other intangibles | Crossix | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets: | $ 6,000 | |||
Minimum | Other intangibles | ||||
Business Acquisition [Line Items] | ||||
Useful lives of intangible assets | 1 year | |||
Maximum | Other intangibles | ||||
Business Acquisition [Line Items] | ||||
Useful lives of intangible assets | 7 years |
Acquisitions - Schedule of Pro
Acquisitions - Schedule of Pro Forma Information (Details) - USD ($) | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Business Combinations [Abstract] | ||
Pro forma revenues | $ 1,153,497 | $ 913,081 |
Pro forma net income | $ 278,215 | $ 201,382 |
Pro forma net income per share: | ||
Basic | $ 1.88 | $ 1.40 |
Diluted | $ 1.76 | $ 1.29 |
Short-Term Investments - Schedu
Short-Term Investments - Schedule of Short-Term Investments (Detail) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Amortized cost | $ 607,454 | $ 539,743 |
Available-for-sale securities, Gross unrealized gains | 2,565 | 282 |
Available-for-sale securities, Gross unrealized losses | (4) | (835) |
Available-for-sale securities, Estimated fair value | 610,015 | 539,190 |
Certificates of deposits | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Amortized cost | 3,500 | 6,001 |
Available-for-sale securities, Gross unrealized gains | 3 | 10 |
Available-for-sale securities, Gross unrealized losses | 0 | (1) |
Available-for-sale securities, Estimated fair value | 3,503 | 6,010 |
Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Amortized cost | 100,419 | 78,682 |
Available-for-sale securities, Gross unrealized gains | 396 | 13 |
Available-for-sale securities, Gross unrealized losses | (1) | (300) |
Available-for-sale securities, Estimated fair value | 100,814 | 78,395 |
Commercial paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Amortized cost | 19,965 | 9,118 |
Available-for-sale securities, Gross unrealized gains | 5 | 1 |
Available-for-sale securities, Gross unrealized losses | (1) | (2) |
Available-for-sale securities, Estimated fair value | 19,969 | 9,117 |
Corporate notes and bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Amortized cost | 234,664 | 185,409 |
Available-for-sale securities, Gross unrealized gains | 1,552 | 178 |
Available-for-sale securities, Gross unrealized losses | (2) | (457) |
Available-for-sale securities, Estimated fair value | 236,214 | 185,130 |
Foreign government bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Amortized cost | 3,397 | 1,502 |
Available-for-sale securities, Gross unrealized gains | 10 | 0 |
Available-for-sale securities, Gross unrealized losses | 0 | (11) |
Available-for-sale securities, Estimated fair value | 3,407 | 1,491 |
U.S. agency obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Amortized cost | 15,912 | |
Available-for-sale securities, Gross unrealized gains | 2 | |
Available-for-sale securities, Gross unrealized losses | (2) | |
Available-for-sale securities, Estimated fair value | 15,912 | |
U.S. treasury securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Amortized cost | 245,509 | 243,119 |
Available-for-sale securities, Gross unrealized gains | 599 | 78 |
Available-for-sale securities, Gross unrealized losses | 0 | (62) |
Available-for-sale securities, Estimated fair value | $ 246,108 | $ 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 | Jan. 31, 2020 | Jan. 31, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Due in one year or less | $ 247,592 | $ 377,858 |
Due in greater than one year | 362,423 | 161,332 |
Total | $ 610,015 | $ 539,190 |
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 | Jan. 31, 2020 | Jan. 31, 2019 |
Certificates of deposits | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value | $ 999 | |
Unrealized losses | (1) | |
Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value | $ 2,623 | 69,131 |
Unrealized losses | (1) | (300) |
Commercial paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value | 5,589 | 7,155 |
Unrealized losses | (1) | (2) |
Corporate notes and bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value | 9,105 | 121,006 |
Unrealized losses | $ (2) | (457) |
Foreign government bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value | 1,490 | |
Unrealized losses | (11) | |
U.S. agency obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value | 14,928 | |
Unrealized losses | (2) | |
U.S. treasury securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value | 130,785 | |
Unrealized losses | $ (62) |
Short-Term Investments - Additi
Short-Term Investments - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||
Other-than-temporary impairment losses on investments | $ 0 | $ 0 |
Deferred Costs - Additional Inf
Deferred Costs - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Deferred costs | $ 35,585,000 | $ 30,869,000 | |
Amortization of deferred costs | 20,521,000 | 18,378,000 | $ 16,647,000 |
Impairment losses recorded in relation to the costs capitalized | 0 | 0 | 0 |
Sales and marketing | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Amortization of deferred costs | $ 20,500,000 | $ 18,400,000 | $ 16,600,000 |
Property and Equipment, Net - C
Property and Equipment, Net - Components of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 80,102 | $ 71,230 | |
Less accumulated depreciation | (25,350) | (16,264) | |
Total property and equipment, net | 54,752 | 54,966 | $ 52,284 |
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 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 | 11,066 | 7,945 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 12,849 | 11,230 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 9,385 | 6,790 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 386 | $ 330 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 8.5 | $ 6.4 | $ 5.9 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Details of Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross carrying amount | $ 174,670 | $ 54,470 |
Intangible assets, Accumulated amortization | (40,069) | (29,949) |
Intangible assets, Net | 134,601 | 24,521 |
Existing technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross carrying amount | 26,380 | 3,880 |
Intangible assets, Accumulated amortization | (4,808) | (3,834) |
Intangible assets, Net | $ 21,572 | $ 46 |
Intangible assets, Remaining useful life | 5 years 9 months 18 days | 1 year 2 months 12 days |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross carrying amount | $ 111,443 | $ 33,643 |
Intangible assets, Accumulated amortization | (17,575) | (12,350) |
Intangible assets, Net | $ 93,868 | $ 21,293 |
Intangible assets, Remaining useful life | 9 years | 6 years 7 months 6 days |
Trade name/Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross carrying amount | $ 13,900 | |
Intangible assets, Accumulated amortization | (720) | |
Intangible assets, Net | $ 13,180 | |
Intangible assets, Remaining useful life | 4 years 8 months 12 days | |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross carrying amount | $ 22,947 | $ 16,947 |
Intangible assets, Accumulated amortization | (16,966) | (13,765) |
Intangible assets, Net | $ 5,981 | $ 3,182 |
Intangible assets, Remaining useful life | 5 years | 1 year 2 months 12 days |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 10.1 | $ 7 | $ 7.8 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Estimated Amortization Expense (Detail) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||
Fiscal 2021 | $ 19,595 | |
Fiscal 2022 | 18,397 | |
Fiscal 2023 | 18,342 | |
Fiscal 2024 | 18,160 | |
Fiscal 2025 | 17,417 | |
Thereafter | 42,690 | |
Intangible assets, Net | $ 134,601 | $ 24,521 |
Intangible Assets and Goodwil_5
Intangible Assets and Goodwill Intangible Assets and Goodwill - Schedule of Goodwill (Details) $ in Thousands | 12 Months Ended |
Jan. 31, 2020USD ($) | |
Goodwill [Roll Forward] | |
Beginning Goodwill | $ 95,804 |
Ending Goodwill | 438,529 |
Crossix | |
Goodwill [Roll Forward] | |
Goodwill acquired | 314,642 |
Physicians World | |
Goodwill [Roll Forward] | |
Goodwill acquired | $ 28,083 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Payables and Accruals [Abstract] | ||
Accrued commissions | $ 8,951 | $ 2,633 |
Accrued bonus | 4,329 | 2,848 |
Accrued vacation | 3,921 | 3,110 |
Payroll tax payable | 7,353 | 1,971 |
Accrued other compensation and benefits | 1,065 | 4,762 |
Total accrued compensation and benefits | 25,619 | 15,324 |
Accrued fees payable to salesforce.com | 5,787 | 5,242 |
Accrued third-party professional services subcontractors' fees | 1,338 | 1,619 |
Taxes payable | 4,914 | 2,805 |
Other accrued expenses | 9,581 | 6,479 |
Total accrued expenses and other current liabilities | $ 21,620 | $ 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 | Jan. 31, 2020 | Jan. 31, 2019 |
Assets | ||
Short-term investments | $ 610,015 | $ 539,190 |
Commercial paper | ||
Assets | ||
Short-term investments | 19,969 | 9,117 |
Corporate notes and bonds | ||
Assets | ||
Short-term investments | 236,214 | 185,130 |
U.S. treasury securities | ||
Assets | ||
Short-term investments | 246,108 | 243,135 |
Certificates of deposits | ||
Assets | ||
Short-term investments | 3,503 | 6,010 |
Asset-backed securities | ||
Assets | ||
Short-term investments | 100,814 | 78,395 |
Foreign government bonds | ||
Assets | ||
Short-term investments | 3,407 | 1,491 |
U.S. agency obligations | ||
Assets | ||
Short-term investments | 15,912 | |
Fair value, measurements recurring | ||
Assets | ||
Total | 638,058 | 620,897 |
Liabilities | ||
Total | 42 | 88 |
Fair value, measurements recurring | Money market funds | ||
Assets | ||
Cash equivalents | 24,107 | 39,168 |
Fair value, measurements recurring | Commercial paper | ||
Assets | ||
Cash equivalents | 1,616 | |
Short-term investments | 19,969 | 9,117 |
Fair value, measurements recurring | Corporate notes and bonds | ||
Assets | ||
Cash equivalents | 2,245 | 1,034 |
Short-term investments | 236,214 | 185,130 |
Fair value, measurements recurring | U.S. treasury securities | ||
Assets | ||
Cash equivalents | 41,505 | |
Short-term investments | 246,107 | 243,135 |
Fair value, measurements recurring | Certificates of deposits | ||
Assets | ||
Short-term investments | 3,503 | 6,010 |
Fair value, measurements recurring | Asset-backed securities | ||
Assets | ||
Short-term investments | 100,815 | 78,395 |
Fair value, measurements recurring | Foreign government bonds | ||
Assets | ||
Short-term investments | 3,407 | 1,491 |
Fair value, measurements recurring | Foreign currency derivative contracts | ||
Assets | ||
Short-term investments | 75 | |
Fair value, measurements recurring | U.S. agency obligations | ||
Assets | ||
Short-term investments | 15,912 | |
Fair value, measurements recurring | Foreign currency derivative contracts | ||
Liabilities | ||
Foreign currency derivative contracts | 42 | 88 |
Fair value, measurements recurring | Level 1 | ||
Assets | ||
Total | 24,107 | 39,168 |
Liabilities | ||
Total | 0 | 0 |
Fair value, measurements recurring | Level 1 | Money market funds | ||
Assets | ||
Cash equivalents | 24,107 | 39,168 |
Fair value, measurements recurring | Level 1 | Commercial paper | ||
Assets | ||
Cash equivalents | 0 | |
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 | Foreign currency derivative contracts | ||
Assets | ||
Short-term investments | 0 | |
Fair value, measurements recurring | Level 1 | U.S. agency obligations | ||
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 | 613,951 | 581,729 |
Liabilities | ||
Total | 42 | 88 |
Fair value, measurements recurring | Level 2 | Money market funds | ||
Assets | ||
Cash equivalents | 0 | 0 |
Fair value, measurements recurring | Level 2 | Commercial paper | ||
Assets | ||
Cash equivalents | 1,616 | |
Short-term investments | 19,969 | 9,117 |
Fair value, measurements recurring | Level 2 | Corporate notes and bonds | ||
Assets | ||
Cash equivalents | 2,245 | 1,034 |
Short-term investments | 236,214 | 185,130 |
Fair value, measurements recurring | Level 2 | U.S. treasury securities | ||
Assets | ||
Cash equivalents | 41,505 | |
Short-term investments | 246,107 | 243,135 |
Fair value, measurements recurring | Level 2 | Certificates of deposits | ||
Assets | ||
Short-term investments | 3,503 | 6,010 |
Fair value, measurements recurring | Level 2 | Asset-backed securities | ||
Assets | ||
Short-term investments | 100,815 | 78,395 |
Fair value, measurements recurring | Level 2 | Foreign government bonds | ||
Assets | ||
Short-term investments | 3,407 | 1,491 |
Fair value, measurements recurring | Level 2 | Foreign currency derivative contracts | ||
Assets | ||
Short-term investments | 75 | |
Fair value, measurements recurring | Level 2 | U.S. agency obligations | ||
Assets | ||
Short-term investments | 15,912 | |
Fair value, measurements recurring | Level 2 | Foreign currency derivative contracts | ||
Liabilities | ||
Foreign currency derivative contracts | $ 42 | $ 88 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Foreign currency derivative contracts | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Foreign currency gain (losses) recognized | $ (0.3) | $ 0.3 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary Fair Value of Outstanding Derivative Instruments (Detail) - Foreign currency derivative contracts - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Notional amount of foreign currency derivative contracts | $ 7,304 | $ (5,112) |
Fair value of foreign currency derivative contracts | $ 7,271 | $ (5,024) |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Outstanding Balance Sheet Hedges (Detail) - Foreign currency derivative contracts - Derivatives not designated as hedging instruments [Member] - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Prepaid expenses and other current assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 75 | $ 0 |
Accrued expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 42 | $ 88 |
Other Income, Net - Other Incom
Other Income, Net - Other Income, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Other Income and Expenses [Abstract] | |||
Foreign currency gain (loss) | $ (708) | $ (2,103) | $ 1,177 |
Accretion (amortization) on investments | 3,001 | 2,492 | (1,718) |
Interest income | 25,185 | 15,388 | 8,383 |
Other income, net | $ 27,478 | $ 15,777 | $ 7,842 |
Income Taxes - Components of In
Income Taxes - Components of Income before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 305,339 | $ 222,743 | $ 140,172 |
Foreign | 8,358 | 15,900 | 25,599 |
Income before income taxes | $ 313,697 | $ 238,643 | $ 165,771 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Current provision: | |||
Federal | $ 11,143 | $ 5,466 | $ 5,315 |
State | 4,695 | 4,089 | 209 |
Foreign | 3,404 | 7,438 | 8,022 |
Total | 19,242 | 16,993 | 13,546 |
Deferred provision: | |||
Federal | (1,063) | (1,910) | 1,681 |
State | (517) | (619) | 330 |
Foreign | (5,083) | (5,653) | (963) |
Total | (6,663) | (8,182) | 1,048 |
Provision for income taxes | $ 12,579 | $ 8,811 | $ 14,594 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Income Tax Contingency [Line Items] | ||||
Federal statutory income tax rate | 21.00% | 21.00% | 33.80% | |
Net operating loss carryforwards for federal | $ 110,900 | |||
Net operating loss carryforwards for state | $ 106,300 | |||
Percentage of likely of being realized upon the effective settlement | 50.00% | |||
Gross unrecognized tax benefits | $ 14,515 | $ 12,597 | $ 11,398 | $ 7,868 |
Unrecognized tax benefits, that would impact tax rate if recognized | 6,800 | |||
State | California | ||||
Income Tax Contingency [Line Items] | ||||
Tax credits | $ 34,800 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Federal Income Tax to Effective Tax (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Federal tax statutory tax rate | $ 65,876 | $ 50,115 | $ 56,047 |
State taxes | 3,035 | 3,139 | 3,936 |
Tax credits | (23,468) | (21,415) | (9,409) |
Domestic manufacturing deduction | 0 | 0 | (1,096) |
Stock-based compensation | (34,569) | (33,332) | (37,347) |
Foreign rate differential | 411 | 610 | (2,207) |
Valuation allowance | 7,408 | 6,666 | 4,010 |
Impact of foreign operations | 470 | 3,381 | 4,842 |
Foreign derived intangible income deduction (FDII) | (4,836) | (2,086) | 0 |
Others | (1,748) | 1,733 | (4,182) |
Provision for income taxes | $ 12,579 | $ 8,811 | $ 14,594 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Deferred Tax Assets: | ||
Accruals and reserves | $ 10,355 | $ 7,678 |
State income taxes | 931 | 116 |
Stock-based compensation | 9,861 | 5,180 |
Net operating loss carryforward | 32,916 | 2,885 |
Tax credit carryforward | 21,458 | 15,411 |
Lease liabilities | 13,808 | |
Other | 217 | 435 |
Gross Deferred Tax Assets | 89,546 | 31,705 |
Valuation Allowance | (22,694) | (15,385) |
Total Deferred Tax Assets | 66,852 | 16,320 |
Deferred Tax Liabilities: | ||
Property and equipment | (650) | (822) |
Intangible assets | (33,518) | (7,159) |
Expensed internal-use software | (974) | (608) |
Lease right-of-use assets | (12,717) | |
Deferred costs | (8,922) | (7,888) |
Other | (619) | 0 |
Total Deferred Tax Liabilities | (57,400) | (16,477) |
Net Deferred Tax Assets (Liabilities) | $ 9,452 | |
Net Deferred Tax Assets (Liabilities) | $ (157) |
Income Taxes - Summary of Chang
Income Taxes - Summary of Changes in Total Gross Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Beginning balance | $ 12,597 | $ 11,398 | $ 7,868 |
Increases related to tax positions taken during the prior period | 796 | 968 | 256 |
Increases related to tax positions taken during the current period | 3,420 | 2,697 | 4,032 |
Decreases related to tax positions taken during the prior period | (128) | (1,754) | (67) |
Audit settlements | 0 | (403) | 0 |
Lapse of statute of limitations | (2,170) | (309) | (691) |
Ending balance | $ 14,515 | $ 12,597 | $ 11,398 |
Deferred Revenue and Performa_2
Deferred Revenue and Performance Obligations - Additional Information (Detail) - Subscription services - USD ($) $ in Millions | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Revenue From Contracts With Customers [Line Items] | ||
Recognition of deferred revenue | $ 353.4 | $ 264.8 |
Revenue expected to be recognized from remaining performance obligations | $ 897.7 |
Deferred Revenue and Performa_3
Deferred Revenue and Performance Obligations - Additional Information (Detail1) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-02-01 | Jan. 31, 2020 |
Revenue From Contracts With Customers [Line Items] | |
Revenue, remaining performance obligation, recognition period | 12 months |
Subscription services | |
Revenue From Contracts With Customers [Line Items] | |
Percent of revenue expected to recognize from remaining performance obligations over the next 12 months | 83.00% |
Leases (Details)
Leases (Details) $ in Millions | 12 Months Ended |
Jan. 31, 2020USD ($) | |
Leases [Line Items] | |
Operating lease expense | $ 7.9 |
Finance lease expense | 1.3 |
Short-term lease expense | 0.4 |
Leaes not yet commenced | $ 3.4 |
Minimum | |
Leases [Line Items] | |
Leases not yet commenced term | 1 year |
Maximum | |
Leases [Line Items] | |
Renewal term | 9 years |
Leases not yet commenced term | 5 years |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) $ in Thousands | 12 Months Ended |
Jan. 31, 2020USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows towards operating leases | $ 7,657 |
Right-of-use assets obtained in exchange for lease obligations: | |
Operating leases | 23,546 |
Operating leases obtained through business combinations | $ 14,550 |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Balance Sheet Information Related to Leases (Details) $ in Thousands | Jan. 31, 2020USD ($) | |
Operating Leases | ||
Lease right-of-use-assets | $ 49,132 | [1] |
Lease liabilities | 8,960 | |
Lease liabilities, noncurrent | 44,453 | |
Total operating lease liabilities | 53,413 | |
Finance Leases | ||
Property and equipment, at cost | 1,761 | |
Accumulated depreciation | (1,320) | |
Property and equipment, net | 441 | |
Lease liabilities | 1,054 | |
Lease liabilities, noncurrent | 362 | |
Total finance lease liabilities | $ 1,416 | |
Weighted Average Remaining Lease Term | ||
Operating leases | 7 years 1 month 6 days | |
Finance leases | 1 year 3 months 18 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 - Schedule of Lease Matu
Leases - Schedule of Lease Maturities (Details) $ in Thousands | Jan. 31, 2020USD ($) |
Operating Lease Liabilities, Payments Due [Abstract] | |
Fiscal 2021 | $ 10,722 |
Fiscal 2022 | 10,215 |
Fiscal 2023 | 8,056 |
Fiscal 2024 | 7,311 |
Fiscal 2025 | 5,344 |
Thereafter | 20,867 |
Total lease payments | 62,515 |
Less imputed interest | (9,102) |
Total | 53,413 |
Finance Lease Liabilities, Payments, Due [Abstract] | |
Fiscal 2021 | 1,090 |
Fiscal 2022 | 364 |
Fiscal 2023 | 0 |
Fiscal 2024 | 0 |
Fiscal 2025 | 0 |
Thereafter | 0 |
Total lease payments | 1,454 |
Less imputed interest | (38) |
Total | $ 1,416 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments Under Non-cancelable Operating Leases Under ASU 840 (Details) $ in Thousands | Jan. 31, 2020USD ($) |
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) | 12 Months Ended | ||
Jan. 31, 2020USD ($)vote$ / sharesshares | Jan. 31, 2019$ / sharesshares | Jan. 31, 2018$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option award | 13,448,026 | 12,961,397 | |
Board of directors service term | 3 years | ||
Dividends declared | $ | $ 0 | ||
Dividends paid | $ | $ 0 | ||
Weighted-average grant date fair value of options granted | $ / shares | $ 60.05 | $ 35.43 | $ 30.87 |
Unrecognized compensation cost related to unvested stock options granted | $ | $ 194,500,000 | ||
Closing stock price | $ / shares | $ 146.61 | ||
Intrinsic value of options exercised | $ | $ 229,000,000 | ||
Stock options, granted | 2,502,908 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Weighted average period of unvested stock | 3 years 10 months 24 days | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year | ||
Weighted average period of unvested stock | 2 years 9 months 18 days | ||
RSUs granted (in usd per share) | $ / shares | $ 142.92 | ||
Unrecognized compensation cost related to unvested RSUs | $ | $ 157,400,000 | ||
Total intrinsic value, vested | $ | $ 178,800,000 | ||
Restricted Stock Units (RSUs) | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
CEO | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options, granted | 2,838,635 | ||
2007 Stock Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option award | 0 | ||
2012 Equity Incentive Award Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option award | 0 | ||
2013 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option award | 0 | ||
Minimum incremental of issuance of common stock | 13,750,000 | ||
Common shares outstanding percentage | 5.00% | ||
2013 Equity Incentive Plan | Stock Options | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 9 years | ||
Stock option exercisable period | 10 years | ||
2013 Equity Incentive Plan | Stock Options | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 5 years | ||
2013 Equity Incentive Plan | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSUs granted (in usd per share) | $ / shares | $ 142.92 | ||
2013 Equity Incentive Plan | Restricted Stock Units (RSUs) | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 5 years | ||
2013 Equity Incentive Plan | Restricted Stock Units (RSUs) | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year | ||
2013 Equity Incentive Plan | Board of Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Incremental of issuance of common stock | 6,578,553 | ||
2013 Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Minimum incremental of issuance of common stock | 2,200,000 | ||
Common shares outstanding percentage | 1.00% | ||
Common stock reserve for future issuance | 4,000,000 | ||
Number of shares available for issuance | 4,897,856 | ||
Common stock acquire at fair market value | 85.00% | ||
Common stock purchases through payroll deductions | 15.00% | ||
2007 Stock Plans | Stock Options | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 5 years | ||
Stock option exercisable period | 10 years | ||
2007 Stock Plans | Stock Options | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
2012 Stock Plan | Stock Options | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 9 years | ||
Stock option exercisable period | 10 years | ||
2012 Stock Plan | Stock Options | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 5 years | ||
Class A common stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock, shares outstanding | 133,892,725 | 125,980,019 | |
Vote per common share | vote | 1 | ||
Conversion of common stock outstanding | 100.00% | ||
Conversion of common stock | 100.00% | ||
Class A common stock | 2013 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock available for issuance | 28,471,030 | ||
Class B common stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock, shares outstanding | 15,202,858 | 20,210,060 | |
Vote per common share | vote | 10 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Option Activity (Detail) - USD ($) | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Number of shares | ||
Options outstanding, Beginning Balance | 12,961,397 | |
Options granted | 2,502,908 | |
Options exercised | (1,665,778) | |
Options forfeited/cancelled | (350,501) | |
Options outstanding, Ending Balance | 13,448,026 | 12,961,397 |
Options vested and exercisable | 6,697,955 | |
Options vested and exercisable and expected to vest thereafter | 13,448,026 | |
Weighted average exercise price | ||
Options outstanding, Beginning Balance | $ 19.43 | |
Options granted | 129.79 | |
Options exercised | 6.54 | |
Options forfeited/cancelled | 55.16 | |
Options outstanding, Ending Balance | 40.64 | $ 19.43 |
Options vested and exercisable | 6.19 | |
Options vested and exercisable and expected to vest thereafter | $ 40.64 | |
Weighted average remaining contractual term (in years), options outstanding | 5 years 4 months 24 days | 5 years 4 months 24 days |
Weighted average remaining contractual term (in years), options vested and exercisable | 3 years 2 months 12 days | |
Weighted average remaining contractual term (in years), options vested and exercisable and expected to vest thereafter | 5 years 4 months 24 days | |
Aggregate intrinsic value | ||
Options outstanding | $ 1,426,502,005 | $ 1,161,695,032 |
Options vested and exercisable | 940,544,986 | |
Options vested and exercisable and expected to vest thereafter | $ 1,426,502,005 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of RSU Activity (Detail) - Restricted Stock Units (RSUs) | 12 Months Ended |
Jan. 31, 2020$ / sharesshares | |
Unreleased restricted stock units | |
Beginning Balance (in shares) | shares | 2,359,132 |
RSUs granted (in shares) | shares | 892,667 |
RSUs vested (in shares) | shares | (1,239,933) |
RSUs forfeited/cancelled (in shares) | shares | (193,244) |
Ending Balance (in shares) | shares | 1,818,622 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Beginning Balance (in usd per share) | $ / shares | $ 54.73 |
RSUs granted (in usd per share) | $ / shares | 142.92 |
RSUs vested (in usd per share) | $ / shares | 57.73 |
RSUs forfeited/cancelled (in usd per share) | $ / shares | 61.28 |
Ending Balance (in usd per share) | $ / shares | $ 95.23 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Weighted-Average Assumptions Used to Estimate Grant Date Fair Value of Options Granted (Detail) - Stock Options | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility | 41.00% | ||
Volatility, minimum | 39.00% | 42.00% | |
Volatility, maximum | 41.00% | 44.00% | |
Expected term (in years) | 6 years 4 months 6 days | ||
Risk-free interest rate, minimum | 1.39% | 2.57% | 1.86% |
Risk-free interest rate, maximum | 2.52% | 2.74% | 2.21% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 5 years 7 months 20 days | 6 years 3 months | |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 years 7 months 9 days | 6 years 4 months 6 days |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Weighted-Average Assumptions Used In For Each Tranche Granted (Detail) - Stock Options | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility | 41.00% | ||
Expected term (in years) | 6 years 4 months 6 days | ||
Dividend yield | 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 | 12 Months Ended | |||||||||
Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | |||||||||||
Weighted average shares used in computing net income per share, basic | 147,796 | 144,244 | 140,311 | ||||||||
Net income per share, basic | $ 0.44 | $ 0.56 | $ 0.54 | $ 0.50 | $ 0.49 | $ 0.44 | $ 0.35 | $ 0.31 | $ 2.04 | $ 1.59 | $ 1.08 |
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 | 158,296 | 156,117 | 153,681 | ||||||||
Net income per share, diluted | $ 0.42 | $ 0.52 | $ 0.50 | $ 0.47 | $ 0.45 | $ 0.41 | $ 0.32 | $ 0.29 | $ 1.90 | $ 1.47 | $ 0.98 |
Class A common stock | |||||||||||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | |||||||||||
Net income, basic | $ 266,104 | ||||||||||
Weighted average shares used in computing net income per share, basic | 130,610 | ||||||||||
Net income per share, basic | $ 2.04 | ||||||||||
Net income, basic | $ 266,104 | ||||||||||
Reallocation as a result of conversion of Class B to Class A common stock: | |||||||||||
Net income, basic | 35,014 | ||||||||||
Reallocation of net income to Class B common stock | 0 | ||||||||||
Net income, diluted | $ 301,118 | ||||||||||
Conversion of Class B to Class A common stock | 17,186 | ||||||||||
Effect of potentially dilutive common shares | 10,500 | ||||||||||
Weighted average shares used in computing net income per share, diluted | 158,296 | ||||||||||
Net income per share, diluted | $ 1.90 | ||||||||||
Class A common stock | As adjusted | |||||||||||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | |||||||||||
Net income, basic | $ 194,607 | $ 121,203 | |||||||||
Weighted average shares used in computing net income per share, basic | 122,137 | 112,491 | |||||||||
Net income per share, basic | $ 1.59 | $ 1.08 | |||||||||
Net income, basic | $ 194,607 | $ 121,203 | |||||||||
Reallocation as a result of conversion of Class B to Class A common stock: | |||||||||||
Net income, basic | 35,225 | 29,974 | |||||||||
Reallocation of net income to Class B common stock | 0 | 0 | |||||||||
Net income, diluted | $ 229,832 | $ 151,177 | |||||||||
Conversion of Class B to Class A common stock | 22,107 | 27,820 | |||||||||
Effect of potentially dilutive common shares | 11,873 | 13,370 | |||||||||
Weighted average shares used in computing net income per share, diluted | 156,117 | 153,681 | |||||||||
Net income per share, diluted | $ 1.47 | $ 0.98 | |||||||||
Class B common stock | |||||||||||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | |||||||||||
Net income, basic | $ 35,014 | ||||||||||
Weighted average shares used in computing net income per share, basic | 17,186 | ||||||||||
Net income per share, basic | $ 2.04 | ||||||||||
Net income, basic | $ 35,014 | ||||||||||
Reallocation as a result of conversion of Class B to Class A common stock: | |||||||||||
Net income, basic | 0 | ||||||||||
Reallocation of net income to Class B common stock | 17,652 | ||||||||||
Net income, diluted | $ 52,666 | ||||||||||
Conversion of Class B to Class A common stock | 0 | ||||||||||
Effect of potentially dilutive common shares | 10,500 | ||||||||||
Weighted average shares used in computing net income per share, diluted | 27,686 | ||||||||||
Net income per share, diluted | $ 1.90 | ||||||||||
Class B common stock | As adjusted | |||||||||||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | |||||||||||
Net income, basic | $ 35,225 | $ 29,974 | |||||||||
Weighted average shares used in computing net income per share, basic | 22,107 | 27,820 | |||||||||
Net income per share, basic | $ 1.59 | $ 1.08 | |||||||||
Net income, basic | $ 35,225 | $ 29,974 | |||||||||
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 | 14,800 | 10,545 | |||||||||
Net income, diluted | $ 50,025 | $ 40,519 | |||||||||
Conversion of Class B to Class A common stock | 0 | 0 | |||||||||
Effect of potentially dilutive common shares | 11,873 | 13,370 | |||||||||
Weighted average shares used in computing net income per share, diluted | 33,980 | 41,190 | |||||||||
Net income per share, diluted | $ 1.47 | $ 0.98 |
Net Income per Share - Potentia
Net Income per Share - Potential Common Share Equivalents Excluded where the Inclusion would be Anti-dilutive (Detail) - shares | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 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 | 1,461,255 | 3,054,322 | 833,691 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Mar. 13, 2017USD ($) | Jan. 26, 2017Employee | Jan. 31, 2020USD ($) | Oct. 31, 2019Motion |
Value-Added Reseller Agreement | ||||
Long-term Purchase Commitment [Line Items] | ||||
Minimum fee commitment obligation | $ 140,000,000 | |||
Minimum order commitment | 500,000,000 | |||
Amount of first minimum order commitment met | 250,000,000 | |||
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 | |||
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 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Detail) | 1 Months Ended |
Sep. 30, 2016Product | |
Zoom Video Communications, Inc | |
Related Party Transaction [Line Items] | |
Number of products to embed into our multichannel customer relationship management applications | 2 |
Revenues by Product - Summary o
Revenues by Product - Summary of Total Revenues (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 1,104,081 | $ 862,210 | $ 690,559 |
Veeva Commercial Cloud | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 468,615 | 395,039 | 356,415 |
Veeva Vault | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 427,679 | 299,428 | 203,019 |
Total subscription services | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 896,294 | 694,467 | 559,434 |
Veeva Commercial Cloud | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 76,347 | 62,557 | 61,516 |
Veeva Vault | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 131,440 | 105,186 | 69,609 |
Total professional services | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 207,787 | $ 167,743 | $ 131,125 |
Information about Geographic _3
Information about Geographic Areas - Revenues by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Revenues by geography | |||||||||||
Total revenues | $ 311,508 | $ 280,921 | $ 266,900 | $ 244,752 | $ 232,323 | $ 224,731 | $ 209,609 | $ 195,547 | $ 1,104,081 | $ 862,210 | $ 690,559 |
North America | |||||||||||
Revenues by geography | |||||||||||
Total revenues | 607,704 | 480,713 | 377,797 | ||||||||
Europe | |||||||||||
Revenues by geography | |||||||||||
Total revenues | 310,215 | 228,784 | 181,940 | ||||||||
Asia Pacific | |||||||||||
Revenues by geography | |||||||||||
Total revenues | 151,052 | 124,431 | 107,397 | ||||||||
Rest of World | |||||||||||
Revenues by geography | |||||||||||
Total revenues | $ 35,110 | $ 28,282 | $ 23,425 |
Information about Geographic _4
Information about Geographic Areas - Long-Lived Assets by Geographic Area (Detail) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 |
Long-lived assets by geography | |||
Total long-lived assets | $ 54,752 | $ 54,966 | $ 52,284 |
North America | |||
Long-lived assets by geography | |||
Total long-lived assets | 51,334 | 51,748 | 49,214 |
Europe and rest of world | |||
Long-lived assets by geography | |||
Total long-lived assets | 2,077 | 1,783 | 1,840 |
Asia Pacific | |||
Long-lived assets by geography | |||
Total long-lived assets | $ 1,341 | $ 1,435 | $ 1,230 |
401(k) Plan - Additional Inform
401(k) Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Total expense related defined benefit plan | $ 3,900,000 | $ 3,300,000 | $ 400,000 |
401(K) Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer maximum matching contribution amount per employee per year | 2,000 | ||
RRSP | Canada | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer maximum matching contribution amount per employee per year | $ 2,000 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) - Summary of Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 311,508 | $ 280,921 | $ 266,900 | $ 244,752 | $ 232,323 | $ 224,731 | $ 209,609 | $ 195,547 | $ 1,104,081 | $ 862,210 | $ 690,559 |
Gross profit | 217,189 | 207,592 | 196,682 | 179,249 | 167,797 | 163,357 | 150,383 | 135,392 | 800,712 | 616,929 | 479,137 |
Operating income | 60,394 | 80,800 | 73,856 | 71,169 | 62,998 | 63,094 | 52,818 | 43,956 | 286,219 | 222,866 | 157,929 |
Net income | $ 66,182 | $ 82,245 | $ 79,242 | $ 73,449 | $ 71,151 | $ 64,085 | $ 50,286 | $ 44,310 | $ 301,118 | $ 229,832 | $ 151,177 |
Net income per share: | |||||||||||
Basic | $ 0.44 | $ 0.56 | $ 0.54 | $ 0.50 | $ 0.49 | $ 0.44 | $ 0.35 | $ 0.31 | $ 2.04 | $ 1.59 | $ 1.08 |
Diluted | $ 0.42 | $ 0.52 | $ 0.50 | $ 0.47 | $ 0.45 | $ 0.41 | $ 0.32 | $ 0.29 | $ 1.90 | $ 1.47 | $ 0.98 |