Document and Entity Information
Document and Entity Information Document - USD ($) $ in Millions | 12 Months Ended | |
Jan. 31, 2018 | Mar. 26, 2018 | |
Document Information [Abstract] | ||
Entity Registrant Name | MongoDB, Inc. | |
Entity Central Index Key | 1,441,816 | |
Current Fiscal Year End Date | --01-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-K | |
Document Period End Date | Jan. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Public Float | $ 359.3 | |
Class A Common Stock | ||
Entity Common Stock, Shares Outstanding | 13,325,834 | |
Class B Common Stock | ||
Entity Common Stock, Shares Outstanding | 37,250,011 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jan. 31, 2018 | Jan. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 61,902 | $ 69,305 |
Short-term investments | 217,072 | 47,195 |
Accounts receivable, net of allowance for doubtful accounts of $1,238 and $958 as of January 31, 2018 and 2017, respectively | 46,872 | 31,340 |
Deferred commissions | 11,820 | 7,481 |
Prepaid expenses and other current assets | 5,884 | 3,131 |
Total current assets | 343,550 | 158,452 |
Property and equipment, net | 59,557 | 4,877 |
Goodwill | 1,700 | 1,700 |
Acquired intangible assets, net | 1,627 | 2,511 |
Deferred tax assets | 326 | 114 |
Other assets | 8,436 | 6,778 |
Total assets | 415,196 | 174,432 |
Current liabilities: | ||
Accounts payable | 2,261 | 2,841 |
Accrued compensation and benefits | 17,433 | 11,402 |
Other accrued liabilities | 8,423 | 5,269 |
Deferred revenue | 114,500 | 78,278 |
Total current liabilities | 142,617 | 97,790 |
Redeemable convertible preferred stock warrant liability | 0 | 1,272 |
Deferred rent, non-current | 925 | 1,058 |
Deferred tax liability, non-current | 18 | 108 |
Deferred revenue, non-current | 22,930 | 15,461 |
Other liabilities, non-current | 55,213 | 0 |
Total liabilities | 221,703 | 115,689 |
Commitments and contingencies (Note 6) | ||
Redeemable convertible preferred stock, par value $0.001 per share; no shares authorized, issued or outstanding as of January 31, 2018; 41,234,841 shares authorized as of January 31, 2017; 41,148,282 shares issued and outstanding with aggregate liquidation preference of $345,997 as of January 31, 2017 | 0 | 345,257 |
Stockholders’ equity (deficit): | ||
Additional paid-in capital | 638,680 | 62,557 |
Treasury stock, 99,371 shares (repurchased at an average of $13.27 per share) as of January 31, 2018 and 2017 | (1,319) | (1,319) |
Accumulated other comprehensive loss | (159) | (364) |
Accumulated deficit | (443,760) | (347,401) |
Total stockholders’ equity (deficit) | 193,493 | (286,514) |
Total liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit) | 415,196 | 174,432 |
Class A Common Stock | ||
Stockholders’ equity (deficit): | ||
Common stock | 13 | 0 |
Class B Common Stock | ||
Stockholders’ equity (deficit): | ||
Common stock | $ 38 | $ 13 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | 12 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | |
Current assets: | ||
Allowance for doubtful accounts | $ 1,238,000 | $ 958,000 |
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) | ||
Redeemable convertible preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Redeemable convertible preferred stock authorized (in shares) | 0 | 41,234,841 |
Redeemable convertible preferred stock issued (in shares) | 0 | 41,148,282 |
Redeemable convertible preferred stock outstanding (in shares) | 0 | 41,148,282 |
Aggregate liquidation preference | $ 0 | $ 345,997 |
Stockholders’ equity (deficit): | ||
Treasury stock (in shares) | 99,371 | 99,371 |
Average treasury stock repurchase price (in dollars per share) | $ 13.27 | $ 13.27 |
Class A Common Stock | ||
Stockholders’ equity (deficit): | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock authorized (in shares) | 1,000,000,000 | 162,500,000 |
Common stock issued (in shares) | 13,303,028 | 0 |
Common stock outstanding (in shares) | 13,303,028 | 0 |
Class B Common Stock | ||
Stockholders’ equity (deficit): | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock authorized (in shares) | 100,000,000 | 113,000,000 |
Common stock issued (in shares) | 37,371,914 | 13,192,992 |
Common stock outstanding (in shares) | 37,272,543 | 13,093,621 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Revenue: | |||
Subscription | $ 141,490 | $ 91,235 | $ 58,561 |
Services | 13,029 | 10,123 | 6,710 |
Total revenue | 154,519 | 101,358 | 65,271 |
Cost of revenue: | |||
Subscription | 30,766 | 19,352 | 13,146 |
Services | 12,093 | 10,515 | 7,715 |
Total cost of revenue | 42,859 | 29,867 | 20,861 |
Gross profit | 111,660 | 71,491 | 44,410 |
Operating expenses: | |||
Sales and marketing | 109,950 | 78,584 | 56,613 |
Research and development | 62,202 | 51,772 | 43,465 |
General and administrative | 36,775 | 27,082 | 17,070 |
Total operating expenses | 208,927 | 157,438 | 117,148 |
Loss from operations | (97,267) | (85,947) | (72,738) |
Other income (expense): | |||
Interest income | 1,308 | 302 | 146 |
Interest expense | (8) | (9) | (24) |
Other income (expense), net | 895 | (308) | (428) |
Loss before provision for income taxes | (95,072) | (85,962) | (73,044) |
Provision for income taxes | 1,287 | 719 | 442 |
Net loss | $ (96,359) | $ (86,681) | $ (73,486) |
Net loss per share attributable to common stockholders, basic and diluted - (in dollars per share) | $ (4.06) | $ (7.10) | $ (6.54) |
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted for Class A and Class B (in shares) | 23,718,391 | 12,211,711 | 11,240,696 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (96,359) | $ (86,681) | $ (73,486) |
Other comprehensive income (loss), net of tax: | |||
Unrealized (loss) gain on available-for-sale securities | (88) | 18 | (33) |
Foreign currency translation adjustments | 293 | (31) | (59) |
Other comprehensive income (loss) | 205 | (13) | (92) |
Total comprehensive loss | $ (96,154) | $ (86,694) | $ (73,578) |
CONSOLIDATED STATEMENT OF REDEE
CONSOLIDATED STATEMENT OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands | Total | Class A and Class B Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Accumulated Deficit |
Preferred stock, beginning balance (in shares) at Jan. 31, 2015 | 39,055,497 | |||||
Beginning Balance, Redeemable Convertible Preferred Stock at Jan. 31, 2015 | $ 310,315 | |||||
Preferred stock, beginning balance (in shares) at Jan. 31, 2016 | 39,055,497 | |||||
Ending Balance, Redeemable Convertible Preferred Stock at Jan. 31, 2016 | $ 310,315 | |||||
Common stock, beginning balance (in shares) at Jan. 31, 2015 | 11,001,782 | |||||
Beginning balance at Jan. 31, 2015 | (171,013) | $ 11 | $ 16,337 | $ (1,319) | $ (259) | $ (185,783) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock option exercises (in shares) | 579,390 | |||||
Stock option exercises (in shares) | 2,908 | $ 1 | 2,907 | |||
Repurchase of stock (in shares) | (15,408) | |||||
Vesting of early exercised stock options | 391 | 391 | ||||
Stock-based compensation | 12,787 | 12,787 | ||||
Unrealized gain on available-for-sale securities | (33) | (33) | ||||
Foreign currency translation adjustment | (59) | (59) | ||||
Net loss | (73,486) | (73,486) | ||||
Common stock, ending balance (in shares) at Jan. 31, 2016 | 11,565,764 | |||||
Ending balance at Jan. 31, 2016 | $ (228,505) | $ 12 | 32,422 | (1,319) | (351) | (259,269) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of accounting change | Accounting Standards Update 2016-09 | 1,451 | (1,451) | ||||
Proceeds from Series F financing, net of issuance costs of $58 (in shares) | 2,092,785 | |||||
Exercise of preferred stock warrants | $ 34,942 | |||||
Preferred stock, beginning balance (in shares) at Jan. 31, 2017 | 41,148,282 | |||||
Ending Balance, Redeemable Convertible Preferred Stock at Jan. 31, 2017 | $ 345,257 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock option exercises (in shares) | 1,534,211 | 1,534,211 | ||||
Stock option exercises (in shares) | $ 6,778 | $ 1 | 6,777 | |||
Repurchase of stock (in shares) | (6,354) | |||||
Vesting of early exercised stock options | 903 | 903 | ||||
Stock-based compensation | 21,004 | 21,004 | ||||
Unrealized gain on available-for-sale securities | 18 | 18 | ||||
Foreign currency translation adjustment | (31) | (31) | ||||
Net loss | (86,681) | (86,681) | ||||
Common stock, ending balance (in shares) at Jan. 31, 2017 | 13,093,621 | |||||
Ending balance at Jan. 31, 2017 | $ (286,514) | $ 13 | 62,557 | (1,319) | (364) | (347,401) |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||
Exercise of preferred stock warrants (in shares) | 85,170 | |||||
Exercise of preferred stock warrants | $ 1,171 | |||||
Conversion of redeemable convertible preferred stock to common stock (in shares) | (41,233,452) | |||||
Conversion of redeemable convertible preferred stock to common stock | $ (346,428) | |||||
Preferred stock, beginning balance (in shares) at Jan. 31, 2018 | 0 | |||||
Ending Balance, Redeemable Convertible Preferred Stock at Jan. 31, 2018 | $ 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of common stock warrants (in shares) | 99,534 | |||||
Exercise of common stock warrants | $ 1 | $ 1 | ||||
Stock option exercises (in shares) | 1,263,722 | 1,263,722 | ||||
Stock option exercises (in shares) | $ 5,597 | $ 1 | 5,596 | |||
Repurchase of stock (in shares) | (34,710) | |||||
Conversion of redeemable convertible preferred stock to common stock (in shares) | 26,953,404 | |||||
Conversion of redeemable convertible preferred stock to common stock | 346,428 | $ 27 | 346,401 | |||
Issuance of common stock upon initial public offering, net of offering costs (in shares) | 9,200,000 | |||||
Issuance of common stock upon Initial public offering, net of offering costs | 201,620 | $ 9 | 201,611 | |||
Vesting of early exercised stock options | 1,280 | 1,280 | ||||
Stock-based compensation | 21,235 | 21,235 | ||||
Unrealized gain on available-for-sale securities | (88) | (88) | ||||
Foreign currency translation adjustment | 293 | 293 | ||||
Net loss | (96,359) | (96,359) | ||||
Common stock, ending balance (in shares) at Jan. 31, 2018 | 50,575,571 | |||||
Ending balance at Jan. 31, 2018 | $ 193,493 | $ 51 | $ 638,680 | $ (1,319) | $ (159) | $ (443,760) |
CONSOLIDATED STATEMENT OF REDE7
CONSOLIDATED STATEMENT OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) (Parenthetical) $ in Thousands | 12 Months Ended |
Jan. 31, 2017USD ($) | |
Payment of offering costs | $ 0 |
Series F Redeemable Convertible Preferred Stock | |
Payment of offering costs | $ 58 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Cash flows from operating activities | |||
Net loss | $ (96,359) | $ (86,681) | $ (73,486) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 3,703 | 3,751 | 4,062 |
Stock-based compensation | 21,235 | 21,004 | 12,787 |
Deferred income taxes | (302) | (4) | (2) |
Change in fair value of warrant liability | (101) | (38) | (52) |
Change in operating assets and liabilities: | |||
Accounts receivable | (15,901) | (9,263) | (10,123) |
Prepaid expenses and other current assets | (2,595) | (450) | (460) |
Deferred commissions | (5,545) | (6,019) | (533) |
Other long-term assets | (687) | (784) | (27) |
Accounts payable | (371) | 1,296 | 371 |
Deferred rent | (133) | (672) | (681) |
Accrued liabilities | 8,115 | 3,948 | 3,478 |
Deferred revenue | 44,060 | 35,834 | 17,705 |
Net cash used in operating activities | (44,881) | (38,078) | (46,961) |
Cash flows from investing activities | |||
Purchases of property and equipment | (2,135) | (1,683) | (468) |
Proceeds from maturities of marketable securities | 82,230 | 114,775 | 38,000 |
Purchases of marketable securities | (252,382) | (82,036) | (117,954) |
Net cash (used in) provided by investing activities | (172,287) | 31,056 | (80,422) |
Cash flows from financing activities | |||
Proceeds from exercise of stock options, including early exercised stock options | 8,367 | 8,220 | 3,104 |
Repurchase of early exercised stock options | (242) | (48) | (17) |
Proceeds from issuance of Series F financing, net of issuance cost | 0 | 34,942 | 0 |
Proceeds from initial public offering, net of underwriting discounts and commissions | 205,494 | 0 | 0 |
Proceeds from exercise of redeemable convertible preferred stock warrants | 1 | 0 | 0 |
Payment of initial public offering costs | (3,728) | 0 | 0 |
Net cash provided by financing activities | 209,892 | 43,114 | 3,087 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 291 | 7 | (92) |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (6,985) | 36,099 | (124,388) |
Cash, cash equivalents, and restricted cash, beginning of period | 69,412 | 33,313 | 157,701 |
Cash, cash equivalents, and restricted cash, end of period | 62,427 | 69,412 | 33,313 |
Cash paid during the period for: | |||
Income taxes, net of refunds | 1,004 | 411 | 522 |
Interest | 8 | 16 | 14 |
Noncash investing and financing activities | |||
Issuance of Series F redeemable convertible preferred stock warrants | 0 | 0 | 151 |
Vesting of early exercised stock options | 1,280 | 903 | 391 |
Conversion of redeemable convertible preferred stock warrant liability to redeemable convertible preferred stock as a result of warrant exercise | 1,171 | 0 | 0 |
Conversion of redeemable convertible preferred stock to common stock | 346,428 | 0 | 0 |
Estimated fair value of office space under a build-to-suit lease | 54,709 | 0 | 0 |
Reconciliation of cash, cash equivalents, and restricted cash within the consolidated balance sheets to the amounts shown in the statements of cash flows above: | |||
Total cash, cash equivalents and restricted cash | $ 69,412 | $ 33,313 | $ 157,701 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Jan. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business MongoDB, Inc. (“MongoDB” or the “Company”) was originally incorporated in the state of Delaware in November 2007 under the name 10Gen, Inc. In August 2013, the Company changed its name to MongoDB, Inc. The Company is headquartered in New York City. MongoDB is the leading, modern, general purpose database platform. The Company’s robust platform enables developers to build and modernize applications rapidly and cost-effectively across a broad range of use cases. Organizations can deploy our platform at scale in the cloud, on-premise or in a hybrid environment. In addition to selling its software, the Company provides post-contract support, training, and consulting services for its offerings. The Company’s fiscal year ends January 31. Reverse Stock Split In October 2017, the Company’s Board of Directors (the “Board of Directors”) and stockholders approved an amendment to the Company’s amended and restated certificate of incorporation effecting a 1-for-2 reverse stock split of the Company’s issued and outstanding shares of common stock and accordingly adjusted the conversion rate of the Series A, B, C, D and E redeemable convertible preferred stock to common stock to 1:0.75 and the conversion rate of the Series F redeemable convertible preferred stock to common stock to 1:0.5. The reverse split was effected on October 5, 2017. The par value of the common stock and redeemable convertible preferred stock was not adjusted as a result of the reverse stock split. All issued and outstanding share and per share amounts included in the accompanying consolidated financial statements have been adjusted to reflect this reverse stock split for all periods presented. Initial Public Offering In October 2017, the Company closed its initial public offering (“IPO”) of 9,200,000 shares of its Class A common stock at an offering price of $24.00 per share, including 1,200,000 shares pursuant to the underwriters’ option to purchase additional shares of the Company’s Class A common stock. The Company received net proceeds of $201.6 million , after deducting underwriting discounts and commissions of $15.5 million and offering expenses of $3.9 million . Immediately prior to the closing of the IPO, all 41,232,762 shares of the Company’s then-outstanding redeemable convertible preferred stock automatically converted into 26,952,887 shares of common stock at their respective conversion ratios and the Company reclassified $346.4 million from temporary equity to Class B common stock and additional paid-in capital on its consolidated balance sheet. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and accounts have been eliminated. Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Such estimates include, but are not limited to, revenue recognition, allowances for doubtful accounts, stock-based compensation, fair value of common stock and redeemable convertible preferred stock warrants prior to the IPO, legal contingencies, fair value of acquired intangible assets and goodwill, useful lives of acquired intangible assets and property and equipment, and accounting for income taxes. The Company bases these estimates on historical and anticipated results, trends and various other assumptions that it believes are reasonable under the circumstances, including assumptions as to future events. Actual results could differ from those estimates. Emerging Growth Company Status As an “emerging growth company” (“EGC”), the Jump-start Our Business Start-ups Act (“JOBS Act”), allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. The Company has elected to use this extended transition period under the JOBS Act. As a result, the Company’s financial statements may not be comparable to the financial statements of issuers who are required to comply with the effective dates for new or revised accounting standards that are applicable to public companies, which may make the Company’s common stock less attractive to investors. Foreign Currency The functional currency of the Company’s international subsidiaries is either the U.S. dollar or the local currency in which the international subsidiary operates. For these subsidiaries where the U.S. dollar is the functional currency, foreign currency denominated monetary assets and liabilities are re-measured into U.S. dollars at current exchange rates and foreign currency denominated nonmonetary assets and liabilities are re-measured into U.S. dollars at historical exchange rates. Gains or losses from foreign currency re-measurement and settlements are included in other income (expense), net in the consolidated statements of operations. For foreign subsidiaries where the functional currency is the local currency, the Company uses the period-end exchange rates to translate assets and liabilities, and the average exchange rates to translate revenue and expenses into U.S. dollars. The Company records translation gains and losses in accumulated other comprehensive income (loss) as a component of stockholders' equity (deficit). Comprehensive Loss The Company’s comprehensive loss includes net loss and unrealized gains and losses on available-for-sale securities and foreign currency translation adjustments. Cash and Cash Equivalents The Company considers all highly liquid investments, including money market funds with an original maturity of three months or less at the date of purchase, to be cash equivalents. Marketable Securities The Company’s short-term investments consist of U.S. government treasury securities and money market instruments. The Company determines the appropriate classification of its short-term investments at the time of purchase and reevaluates such designation at each balance sheet date. The Company has classified and accounted for its short-term investments as available-for-sale securities as the Company may sell these securities at any time for use in its current operations or for other purposes, even prior to maturity. As a result, the Company classifies its short-term investments within current assets on the consolidated balance sheets. Available-for-sale securities are recorded at fair value each reporting period. Unrealized gains and losses on these short-term investments are reported as a separate component of accumulated other comprehensive loss on the consolidated balance sheets until realized. The Company periodically evaluates its short-term investments to assess whether those with unrealized loss positions are other than temporarily impaired. The Company considers various factors in determining whether to recognize an impairment charge. Realized gains and losses are determined based on the specific identification method and are reported in interest income in the consolidated statements of operations. If the Company determines that the decline in an investment's fair value is other-than-temporary, the difference is recognized as an impairment loss in the consolidated statements of operations. As of January 31, 2018 and 2017 , the Company has no t recorded any other-than-temporary-impairment in its consolidated statements of operations. Restricted Cash The Company pledged $0.5 million and $0.1 million of collateral for its available credit on corporate credit cards as of January 31, 2018 and 2017 , respectively. Restricted cash balances are included in other assets on the consolidated balance sheets. Fair Value of Financial Instruments The Company’s financial instruments consist of cash equivalents, short-term investments, accounts receivable, accounts payable, accrued liabilities and the redeemable convertible preferred stock warrant liability. Cash equivalents are stated at amortized cost, which approximates fair value at the balance sheet dates, due to the short period of time to maturity. Short-term investments are recorded at fair value. Accounts receivable, accounts payable and accrued liabilities are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment date. The redeemable convertible preferred stock warrant liability is carried at fair value. Assets and liabilities recorded at fair value on a recurring basis in the balance sheets consisting of cash equivalents, short-term investments and the redeemable convertible preferred stock warrant liability are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, as described below, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: • Level 1: Observable inputs, such as quoted prices (unadjusted) in active markets for identical assets or liabilities at the measurement date. • Level 2: Observable inputs, other than Level 1 prices, such as quoted prices in active markets for similar assets and liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company’s financial instruments that are carried at fair value consist of Level 1 assets and Level 3 liabilities. Level 1 assets include highly liquid money market funds classified as cash equivalents and U.S. government treasury securities classified as short-term investments. Level 3 liabilities consist of the redeemable convertible preferred stock warrant liability. Concentration of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk are primarily cash, cash equivalents, restricted cash, short-term investments, and accounts receivable. The primary focus of the Company’s investment strategy is to preserve capital and meet liquidity requirements. The Company maintains its cash accounts with financial institutions where, at times, deposits exceed federal insurance limits. The Company invests its excess cash in highly-rated money market funds and in short-term investments consisting of U.S. government treasury securities. The Company extends credit to customers in the normal course of business. The Company performs credit analyses and monitors the financial health of its customers to reduce credit risk. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company records an allowance for doubtful accounts relating to certain trade accounts receivable. The allowance is based on various factors, including the review of credit profiles of its customers, contractual terms and conditions, current economic trends and historical customer payment experience. As of January 31, 2018 and 2017 , no customer represented 10% or more of net accounts receivable. For the years ended January 31, 2018 , 2017 and 2016 , no customer represented 10% of more of revenue. Allowance for Doubtful Accounts The Company performs initial and ongoing evaluations of its customers' financial position, and generally extends credit without collateral. The Company determines the need for an allowance for doubtful accounts based upon various factors, including past collection experience, credit quality of the customer, age of the receivable balance, and current economic conditions, as well as specific circumstances arising with individual customers. Trade receivables are written off against the allowance when management determines a balance is uncollectible and the Company no longer actively pursues collection of the receivable. Capitalized Software Costs Software development costs for software to be sold, leased, or otherwise marketed are expensed as incurred until the establishment of technological feasibility, at which time those costs are capitalized until the product is available for general release to customers and amortized over the estimated life of the product. Technological feasibility is established upon the completion of a working prototype that has been certified as having no critical bugs and is a release candidate. To date, costs and time incurred between the establishment of technological feasibility and product release have not been material, resulting in software development costs qualifying for capitalization being immaterial. As a result, all software development costs have been recorded in research and development expense in the consolidated statements of operations. Costs related to software acquired, developed, or modified solely to meet the Company’s internal requirements, with no substantive plans to market such software at the time of development, or costs related to development of web-based product are capitalized. Costs incurred during the preliminary planning and evaluation stage of the project and during post implementation operational stage are expensed as incurred. Costs incurred during the application development stage of the project are capitalized. The Company did no t capitalize any costs related to computer software developed for internal use or web-based product in the years ended January 31, 2018 and 2017 . Property and Equipment Property and equipment are recorded at cost and depreciated over their estimated useful lives using the straight-line method and the following estimated useful lives: Property and Equipment Estimated Useful Life Computer and office equipment Two to three years Purchased software Two to three years Servers Three years Furniture and fixtures Five years Leasehold improvements Lesser of estimated useful life or remaining lease term Upon retirement or sale, the cost of assets disposed of, and the related accumulated depreciation, is removed from the accounts and any resulting gain or loss is reflected in the consolidated statements of operations. There was no material gain or loss incurred as a result of retirement or sale in the periods presented. Repair and maintenance costs are expensed as incurred. Long-Lived Assets, Including Goodwill and Other Acquired Intangible Assets The Company evaluates the recoverability of property and equipment and amortizable intangible assets for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If such review indicates that the carrying amount of property and equipment and intangible assets is not recoverable, the carrying amount of such assets is reduced to fair value. In addition, the Company tests goodwill for impairment at least annually or more frequently if events or changes in circumstances indicate that this asset may be impaired. These tests are based on the Company’s single operating segment and reporting unit structure. No indications of impairment of goodwill were noted during the years ended January 31, 2018 and 2017 . Acquired amortizable intangible assets are amortized on a straight-line basis over the estimated useful lives of the assets. The estimated remaining useful lives for intangible assets range from 1.8 to 2.2 years as of January 31, 2018 and 2.8 to 3.2 years as of January 31, 2017 . In addition to the recoverability assessment, the Company periodically reviews the remaining estimated useful lives of property and equipment and amortizable intangible assets. If the estimated useful life assumption for any asset is changed, the remaining unamortized balance would be depreciated or amortized over the revised estimated useful life, on a prospective basis. Deferred Rent Rent expense is recognized on a straight-line basis over the non-cancelable term of the operating lease. The Company records the difference between cash rent payments and recognized rent expense as a deferred rent liability included in accrued liabilities and other liabilities on the consolidated balance sheets. Incentives granted under the Company’s facility leases, including allowances to fund leasehold improvements, are deferred and are recognized as adjustments to rental expense on a straight-line basis over the term of the lease. Revenue Recognition The Company derives its revenue from two sources: (1) sales of subscriptions, including term license and technical support arrangements, and consumption-based hosted as-a-service offerings; and (2) services revenue comprised of consulting and training arrangements. The Company considers revenue realizable and earned when all of the following criteria are satisfied: • there is persuasive evidence of an arrangement; • delivery has occurred; • the collection of the fees is probable; and • fees for consideration are fixed or determinable. The Company’s subscription service arrangements generally are non-cancelable and do not contain refund-type provisions. The Company recognizes subscription revenue ratably over the contract term, provided that all other revenue recognition criteria have been met. The Company provides its support services pursuant to these subscription arrangements, which are primarily on an annual basis and involve technical support and access to new software versions on a when-and-if available basis. In addition, revenue related to hosted as-a-service solutions are recognized on a usage-basis, as consideration for these arrangements are contingent upon the frequency that the licensee uses the product or on the size and speed of the required infrastructure of the hosted deployment. The Company recognizes revenue from services agreements on a percent complete basis if sold on a stand-alone basis and over the contractual subscription period if sold as a bundled element along with the Company’s subscriptions. When services commence later than the start date of the subscription, no revenue is recognized until services commence. Once services commence, as long as all other revenue recognition criteria have been met, we record a cumulative catch up of revenue that would have been recognized over the period from the beginning of the subscription term until the commencement of services. Subscription Revenue The Company’s subscription revenue is primarily comprised of time-based software licenses sold in conjunction with post-contract customer support (“PCS”). The Company typically bills subscription revenue annually in advance. As the Company’s subscription offerings include a software license and PCS for which the Company has not established Vendor Specific Objective Evidence (“VSOE”), the entire fee is recognized ratably over the term of the PCS. See "—Multiple-Element Arrangements" section below. In certain circumstances, the Company makes software available to its customers online under hosting arrangements. The online services are currently comprised of an automated database backup storage tool, a database management automation tool and a database as-a-service tool wherein the customer can purchase storage, security and monitoring capabilities. Generally, revenue related to hosted as-a-service solutions are recognized on a usage-basis, as consideration for these arrangements are contingent upon the frequency that the licensee uses the product or on the size and speed of the required infrastructure of the hosted deployment. Services Revenue The Company’s services contracts are provisioned on either a time-and-materials basis, fixed-fee basis or subscription basis. Revenue is recognized on a proportional performance basis as the services are delivered for standalone time and materials contracts and for standalone fixed price contracts. As arrangements in which services are sold with subscription offerings are in essence multiple-element arrangements, all revenue in the arrangement is recognized ratably over the term of the undelivered elements assuming all other revenue recognition criteria have been met. See "—Multiple-Element Arrangements" section below. Multiple-Element Arrangements Guidance for multiple-element arrangements (“MEA”) dictate that contract fees be allocated across each element in an MEA based on VSOE of fair value. In cases where MEA software arrangements include both delivered and undelivered elements and VSOE of fair value exists for all undelivered elements, the Company may utilize the residual method for allocating fair value. Essentially, revenue recognition occurs immediately for the delivered elements and commences for the undelivered element(s), assuming all other revenue recognition criteria have been met. In the event an MEA includes both delivered and undelivered elements, and the Company has not established VSOE for the undelivered elements, all revenue from the arrangement shall be deferred until the earlier of the point at which VSOE is established or all elements have been delivered. As an exception to this guidance, in the event VSOE is not established for the undelivered elements and the only undelivered element is either PCS or services that do not involve significant production, modification or customization of software, the entire fee is recognized ratably over the term of the undelivered elements assuming all other revenue recognition criteria have been met and services are generally provided at the beginning or over the course of the arrangement. Cost of Revenue Cost of revenue consists primarily of costs related to providing the Company’s subscription and hosting services to its paying customers, including personnel costs, including salaries, bonuses and benefits, and stock-based compensation and related expenses for datacenter operations, customer support and services personnel, as well as depreciation of servers and equipment. Deferred Commissions and Commissions Expense Deferred commissions are the incremental costs that are directly associated with non-cancelable subscription contracts with customers and consist of sales commissions paid to the Company’s direct sales force. The commissions are deferred and amortized over the non-cancelable terms of the related customer contracts. Sales commissions are generally paid up front and one month in arrears, however, payment timing is based on contractual terms of the underlying subscription contract and is subject to an evaluation of customer credit-worthiness. The deferred commission amounts are recoverable through the future revenue streams under the non-cancelable customer contracts. The Company capitalized commission costs of $15.5 million and $14.2 million for the years ended January 31, 2018 and 2017 , respectively. Amortization of deferred commissions is included in sales and marketing expense in the consolidated statements of operations. As of January 31, 2018 and 2017 , the Company recorded short-term deferred commissions of $11.8 million and $7.5 million , respectively, and long-term deferred commissions of $6.8 million and $5.6 million , respectively, in other long-term assets on the consolidated balance sheets. Research and Development Research and development costs are expensed as incurred and consist primarily of personnel costs, including salaries, bonuses and benefits, and stock-based compensation. Research and development costs also include amortization associated with intangible acquired assets and allocated overhead. Advertising Advertising costs are charged to operations as incurred or the first time the advertising takes place, based on the nature of the advertising, and include direct marketing, events, public relations, sales collateral materials and partner programs. Advertising costs were $3.4 million , $2.4 million and $1.2 million for the years ended January 31, 2018 , 2017 and 2016 , respectively. Advertising costs are recorded in sales and marketing expenses in the consolidated statement of operations. Redeemable Convertible Preferred Stock Warrant The Company previously issued redeemable convertible preferred stock warrants, which required liability classification and accounting as the underlying convertible preferred stock were contingently redeemable as discussed in Note 8, Warrants . As of January 31, 2018 , all redeemable convertible preferred stock warrants were exercised in full. Common Stock Warrant The Company previously issued common stock warrants, as discussed in Note 8, Warrants , which were measured at their estimated fair value upon issuance using the Black-Scholes pricing model and were recorded in additional paid-in capital on the consolidated balance sheets. As of January 31, 2018 , all common stock warrants were exercised in full. Stock-Based Compensation Compensation expense related to stock options granted to employees is calculated based on the fair value of stock-based awards on the date of grant. The Company determines the grant date fair value of the awards using the Black-Scholes option-pricing model. The related stock-based compensation expense is recognized on a straight-line basis over the period in which an employee is required to provide service in exchange for the stock-based award, which is generally four years. For stock-based awards issued to non-employees, including consultants, the Company records expense related to stock options based on the fair value of the options calculated using the Black-Scholes option-pricing model over the service performance period. The Company believes that the fair value of the stock options is more reliably measured than the fair value of the services received. The fair value of each non-employee stock-based compensation award is re-measured each period until a commitment date is reached, which is generally the vesting date. The Company’s stock price volatility and expected option life involve management's best estimates, both of which impact the fair value of the option calculated under the Black-Scholes option pricing model and, ultimately, the expense that will be recognized over the life of the option. During the year ended January 31, 2017, the Company adopted Accounting Standards Update (“ASU”) 2016-09 allowing the recognition of forfeitures as they occur. See "Recently Adopted Accounting Pronouncements" for the impact of the adoption. Net Loss Per Share The Company calculates basic and diluted net loss per share attributable to common stockholders in conformity with the two-class method required for companies with participating securities. The Company considers all series of redeemable convertible preferred stock to be participating securities as the holders are entitled to receive non-cumulative dividends on a pari passu basis in the event that a dividend is paid on common stock. Under the two-class method, the net loss attributable to common stockholders is not allocated to the redeemable convertible preferred stock as the holders of redeemable convertible preferred stock do not have a contractual obligation to share in losses. Under the two-class method, basic net loss per share attributable to common stockholders is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period, less shares subject to repurchase. Diluted net loss per share attributable to common stockholders is computed by giving effect to all potentially dilutive common stock equivalents outstanding for the period. For purposes of this calculation, redeemable convertible preferred stock, stock options to purchase common stock, early exercised stock options, and warrants to purchase redeemable convertible preferred stock and common stock are considered common shares equivalents, but have been excluded from the calculation of diluted net loss per share attributable to common stockholders as their effect is antidilutive. Segment Information The Company operates as one operating segment as it only reports financial information on an aggregate and consolidated basis to the Company’s Chief Executive Officer, who is the chief operating decision maker. Income Taxes The Company follows the asset and liability method of accounting for income taxes. This method requires recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. A valuation allowance has been established for the full amount of the net deferred tax assets as the Company has determined that the future realization of the tax benefit is not more likely than not. The Company recognizes the tax benefit from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the tax authorities, based on the technical merits of the position. The tax benefit is measured based on the largest benefit that is more likely than not of being realized upon ultimate settlement. The Company recognizes interest and penalties on amounts due to taxing authorities as a component of other income and (expense), net. On December 22, 2017, the 2017 Tax Cuts and Jobs Act (the “Tax Act”) was enacted into law and the new legislation significantly revised the Internal Revenue Code of 1986, as amended. The newly enacted federal income tax law, among other things, contains significant changes to corporate taxation, including the reduction of the corporate tax rate from a top marginal rate of 35% to a flat rate of 21%, limitation of the tax deduction for interest expense to 30% of adjusted earnings, limitation of the deduction for newly generated net operating losses (“NOLs”) to 80% of current year taxable income and elimination of NOL carrybacks, one time taxation of offshore earnings at reduced rates regardless of whether they are repatriated (the “Transition Tax”), future taxation of certain classes of offshore earnings regardless of whether they are repatriated, immediate deductions for certain new investments instead of deductions for depreciation expense over time, and modifying or repealing many business deductions and credits. The Company is required to recognize the effect of these significant tax law changes in the period of enactment. Also on December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”), which allows the Company to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. Given the significant complexity of the Tax Act, anticipated guidance from the Internal Revenue Service about implementing the Tax Act, and the potential for additional guidance from the SEC or the FASB related to the Tax Act, the Company’s current estimates may be adjusted in future periods. The Company expects to complete its analysis within the measurement period in accordance with SAB 118. Any subsequent adjustments to current estimates will be recorded to tax expense during the quarter in the Company’s fiscal year ending January 31, 2019 in which the Company’s analysis of and accounting for the Tax Act is complete. Refer to Note 11, Income Taxes , for further information. Related Party Transactions All contracts with related parties are executed in the ordinary course of business. There were no material related party transactions in the years ended January 31, 2018 , 2017 and 2016 . As of January 31, 2018 and 2017 , there were no material amounts payable to or amounts receivable from related parties. Recently Adopted Accounting Pronouncements Stock-Based Compensation. Starting February 1, 2016, the Company elected to early adopt ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvement to Employee Share-based Payment Accounting , which would among other items, provide an accounting policy election to account for forfeitures as they occur, rather than to account for them based on an estimate of expected forfeitures and modifies financial statement presentation of excess tax benefits or deficiencies. The Company elected to account for forfeitures as they occur and therefore, stock-based compensation expense for the years ended months ended January 31, 2018 and 2017 has been calculated based on actual forfeitures in the consolidated statements of operations. The cumulative effect of this change increased the accumulated deficit and decreased additional paid-in capital as of February 1, 2016 by $1.5 million . In addition, the effect on the Company’s historical consolidated financial statements was limited to an immaterial cumulative-effect adjustment for previously unrecognized excess tax benefits as a deferred tax asset with an offset to opening accumulated deficit, which was fully offset by a valuation allowance. In May 2017, the Financial Accounting Standards Board (“FASB”), issued ASU 2017-09, Compensation—Stock Compensation (Topic 718). The amendments in the update provide guidance on types of changes to the terms or conditions of share-based payment awards, which would be required to apply modification accounting under Accounting Standards Codification (“ASC”) 718. The new guidance became effective for the Company for the fiscal year ending January 31, 2018. The adoption of ASU 2017-09 did not have a material impact on the Company’s consolidated financial statements. Consolidated Statements of Cash Flows. Starting February 1, 2016, the Company elected to early adopt ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments and ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash . ASU No. 2016-15 eliminates the diversity in practice related to the classification of certain cash receipts and payments for debt prepayment or extinguishment costs, the maturing of a zero-coupon bond, the settlement of contingent liabilities arising from a business combination, proceeds from insurance settlements, distributions from certain equity method investees and beneficial interests obtained in a financial asset securitization. ASU No. 2016-18 requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following tables present information about the Company’s financial assets and liabilities that have been measured at fair value on a recurring basis as of January 31, 2018 and 2017 , and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands): Fair Value Measurement at January 31, 2018 Level 1 Level 2 Level 3 Total Financial Assets: Cash equivalents: Money market funds $ 45,918 $ — $ — $ 45,918 Short-term investments: U.S. government treasury securities 217,072 — — 217,072 Total financial assets $ 262,990 $ — $ — $ 262,990 Fair Value Measurement at January 31, 2017 Level 1 Level 2 Level 3 Total Financial Assets: Cash equivalents: Money market funds $ 35,104 $ — $ — $ 35,104 U.S. government treasury securities 20,000 — — 20,000 Short-term investments: U.S. government treasury securities 47,195 — — 47,195 Total financial assets $ 102,299 $ — $ — $ 102,299 Financial Liability: Redeemable convertible preferred stock warrant liability $ — $ — $ 1,272 $ 1,272 Total financial liability $ — $ — $ 1,272 $ 1,272 The Company utilized the market approach and Level 1 valuation inputs to value its money market mutual funds and U.S. government treasury securities because published net asset values were readily available. As of January 31, 2018 and 2017 , gross unrealized gains and unrealized losses for cash equivalents and short-term investments were not material, and the contractual maturity of all marketable securities was less than one year. The Company’s redeemable convertible preferred stock warrants were categorized as Level 3 because they were valued based on unobservable inputs and management’s judgment due to the absence of quoted mark prices, inherent lack of liquidity and the long-term nature of such financial instruments. The Company estimated the fair value of its historical redeemable convertible preferred stock warrant liability using the Black-Scholes pricing model. The significant unobservable inputs used in the fair value measurement of the redeemable convertible preferred stock warrant liability were the fair value of the underlying stock at the valuation date and the estimated term of the warrant. Generally, increases (decreases) in the fair value of the underlying stock and estimated term resulted in a directionally similar impact to the fair value measurement, as recognized in other income (expense), net in the consolidated statements of operations. As of January 31, 2018, all previously outstanding redeemable convertible preferred stock warrants were fully exercised, as described in Note 8, Warrants . The following table presents a reconciliation of the redeemable convertible preferred stock warrant liability measured at fair value using significant unobservable inputs (in thousands): Fair value, beginning balance, January 31, 2017 $ 1,272 Issuance of redeemable convertible preferred stock warrants — Conversion of redeemable convertible preferred (1,171 ) Change in fair value of redeemable convertible preferred stock warrant liability (101 ) Fair value, ending balance, January 31, 2018 $ — |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Jan. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net consists of the following (in thousands): January 31, 2018 January 31, 2017 Servers $ 4,279 $ 4,175 Furniture and fixtures 2,259 2,014 Computer and office equipment 175 309 Purchased software 887 702 Leasehold improvements 8,548 7,235 Construction in process 883 171 Building 54,709 — Total property and equipment 71,740 14,606 Less: accumulated depreciation and amortization (12,183 ) (9,729 ) Property and equipment, net $ 59,557 $ 4,877 In December 2017, the Company entered into a lease agreement for 106,230 rentable square feet of office space to accommodate its growing employee base in New York City. As a result of the Company’s involvement during the construction period, whereby the Company has certain indemnification obligations related to the construction, the Company is considered, for accounting purposes only, the owner of the construction project under build-to-suit lease accounting. As a result, the Company has recorded the estimated fair value of the leased space as an asset, noted in the table above as “Building.” Costs incurred to renovate the new office space will be capitalized as “Construction in process” and when completed, will increase the “Building” asset, as well as the corresponding long-term liability. Refer to Note 6, Commitments and Contingencies for further details. Depreciation and amortization expense related to property and equipment was $2.8 million and $2.9 million for the years ended January 31, 2018 and 2017 , respectively. |
Acquired Intangible Assets, Net
Acquired Intangible Assets, Net | 12 Months Ended |
Jan. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Acquired Intangible Assets, Net | Acquired Intangible Assets, Net The gross carrying amount and accumulated amortization of the Company’s intangible assets are as follows (in thousands): January 31, 2018 Gross Carrying Value Accumulated Amortization Net Book Value Developed technology $ 4,300 $ (2,723 ) $ 1,577 Domain name 155 (105 ) 50 Total $ 4,455 $ (2,828 ) $ 1,627 January 31, 2017 Gross Carrying Value Accumulated Amortization Net Book Value Developed technology $ 4,300 $ (1,863 ) $ 2,437 Domain name 155 (81 ) 74 Total $ 4,455 $ (1,944 ) $ 2,511 Acquired intangible assets are amortized on a straight-line basis. As of January 31, 2018 , the weighted-average remaining useful lives of identifiable, acquisition-related intangible assets was 1.8 years for developed technology and 2.2 years for domain name. Amortization expense of intangible assets was $0.9 million for each of the years ended January 31, 2018 , 2017 and 2016 . As of January 31, 2018 , future amortization expense related to the intangible assets is as follows (in thousands): Years Ending January 31, 2019 $ 883 2020 740 2021 4 Total $ 1,627 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Future minimum lease payments under non-cancelable office leases and other non-cancelable agreements as of January 31, 2018 , were as follows (in thousands): Year Ending January 31, Operating Leases Other Obligations 2019 $ 8,420 $ 13,921 2020 6,641 12,222 2021 10,930 11,187 2022 9,658 — 2023 9,630 — Thereafter 62,681 — Total minimum payments $ 107,960 $ 37,330 Operating Leases The Company has entered into non-cancellable operating leases, primarily related to rental of office space expiring through 2029. The Company recognizes operating lease costs on a straight-line basis over the term of the agreement, taking into account adjustments for market provisions such as free or escalating base monthly rental payments or deferred payment terms such as rent holidays that defer the commencement date of the required payments. The Company may receive renewal or expansion options, leasehold improvement allowances or other incentives on certain lease agreements. Total rent expense related to operating leases was $9.1 million , $7.0 million and $5.3 million for the years ended January 31, 2018 , 2017 and 2016 , respectively. In August 2016, the Company amended an existing irrevocable, standby letter of credit with Silicon Valley Bank for $0.5 million to serve as a security deposit for the Company’s headquarters lease in New York City. The amendment reduced the letter of credit from $1.1 million to $0.5 million . In January 2017, the Company entered into an irrevocable, standby letter of credit with Silicon Valley Bank for $0.4 million to serve as a security deposit for the Company’s lease in Texas. In October 2017, the Company entered into an irrevocable, standby letter of credit with Silicon Valley Bank for $0.2 million to serve as a security deposit for the Company’s lease in Australia. These letters of credit mature at various dates, but do not extend beyond the corresponding lease agreements for which such letter of credit has been obtained. In December 2017, the Company entered into a lease agreement for 106,230 rentable square feet of office space (the “Premises”) to accommodate its growing employee base in New York City. The Company received delivery of the Premises on January 1, 2018 to commence construction to renovate the Premises and expects to complete its renovations and vacate its current office space prior to the expiration of its existing lease in December 2018. Total estimated aggregate base rent payments over the initial 12 -year term of the lease are $87.9 million , with payments beginning 18 months after delivery of the Premises. As a result of the Company’s involvement during the construction period, whereby the Company has certain indemnification obligations related to the construction, the Company is considered, for accounting purposes only, the owner of the construction project under build-to-suit lease accounting. Refer to Note 4, Property and Equipment, net for further details. Once the construction of the Premises is completed, which is estimated to be prior to December 2018, the Company will evaluate the lease in order to determine whether or not the lease meets the criteria for “sale-leaseback” treatment. Other Obligations The Company has entered into certain other non-cancelable agreements primarily for subscription, marketing services and capacity commitments. During the year ended January 31, 2018 , the Company increased certain capacity commitments with respect to cloud infrastructure services. In addition, in November 2017, the Company entered into an enterprise partnership arrangement with a cloud infrastructure provider that includes a non-cancelable commitment of $36.0 million over the next three years , inclusive of capacity commitments that existed at that time of approximately $6.7 million . Legal Matters From time to time, the Company has become involved in claims and other legal matters arising in the ordinary course of business. The Company investigates these claims as they arise. Although claims are inherently unpredictable, the Company is currently not aware of any matters that, if determined adversely to the Company, would individually or taken together have a material adverse effect on its business, financial position, results of operations or cash flows. The Company accrues estimates for resolution of legal and other contingencies when losses are probable and estimable. From time to time, the Company is a party to litigation and subject to claims and threatened claims incident to the ordinary course of business, including intellectual property claims, labor and employment claims, breach of contract claims, and other matters. Although the results of litigation and claims are inherently unpredictable, the Company believes that there was not at least a reasonable possibility that the Company had incurred a material loss with respect to such loss contingencies, as of January 31, 2018 and 2017 , therefore, the Company has no t recorded an accrual for such contingencies. Indemnification The Company enters into indemnification provisions under its agreements with other companies in the ordinary course of business, including business partners, landlords, contractors and parties performing its research and development. Pursuant to these arrangements, the Company agrees to indemnify, hold harmless, and reimburse the indemnified party for certain losses suffered or incurred by the indemnified party as a result of the Company’s activities. The terms of these indemnification agreements are generally perpetual. The maximum potential amount of future payments the Company could be required to make under these agreements is not determinable. The Company has never incurred costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, the Company believes the fair value of these agreements is not material. The Company maintains commercial general liability insurance and product liability insurance to offset certain of the Company’s potential liabilities under these indemnification provisions. The Company has entered into indemnification agreements with each of its directors and executive officers. These agreements require the Company to indemnify such individuals, to the fullest extent permitted by Delaware law, for certain liabilities to which they may become subject as a result of their affiliation with the Company. |
Stockholders_ Equity (Deficit)
Stockholders’ Equity (Deficit) | 12 Months Ended |
Jan. 31, 2018 | |
Equity [Abstract] | |
Stockholders’ Equity (Deficit) | Stockholders’ Equity (Deficit) Redeemable Convertible Preferred Stock The Company previously issued redeemable convertible preferred stock in one or more series, each with such designations, rights, qualifications, limitations, and restrictions as set forth in the Company’s certificate of incorporation, as in effect prior to the IPO. Immediately prior to the completion of the IPO, as described in Note 1, Organization and Business Description , all shares of redeemable convertible preferred stock then outstanding were automatically converted to 26,952,887 shares of Class B common stock at the respective conversion ratios. Class A and Class B Common Stock The Company has two classes of common stock, Class A and Class B. The rights of the holders of Class A and Class B common stock are identical, except with respect to voting. Each share of Class A common stock is entitled to one vote per share. Each share of Class B common stock is entitled to 10 votes per share. Shares of Class B common stock may be converted to Class A common stock at any time at the option of the stockholder. Shares of Class B common stock automatically convert to Class A common stock upon the following: (i) sale or transfer of such share of Class B common stock, subject to specified permitted transfers; (ii) the death of the Class B common stockholder (or nine months after the date of death if the stockholder is one of the founders); and (iii) on the final conversion date, defined as the earlier of (a) the first trading day on or after the date on which the outstanding shares of Class B common stock represent less than 10% of the then-outstanding Class A and Class B common stock; or (b) the date specified by vote of the Board of Directors and the holders of a majority of the outstanding shares of Class B common stock and redeemable convertible preferred stock, voting together as a single class on an as-converted basis. Class A and Class B common stock are referred to as common stock throughout the notes to the consolidated financial statements, unless otherwise noted. As of January 31, 2018 , the Company had authorized 1,000,000,000 shares and 100,000,000 shares of Class A and Class B common stock, respectively, each par value $0.001 per share, of which 13,303,028 shares of Class A common stock were issued and outstanding and 37,371,914 and 37,272,543 shares of Class B common stock were issued and outstanding, respectively. Warrants Redeemable Convertible Preferred Stock Warrants The Company previously issued warrants to purchase Series E and Series F redeemable convertible preferred stock at an exercise price of $0.01 per share in connection with a software development contract with a customer. During the year ended January 31, 2018 , warrants to purchase 45,301 shares of Series E redeemable convertible preferred stock and 41,258 shares of Series F redeemable convertible preferred stock were exercised in full, representing the total number of redeemable convertible preferred stock warrants outstanding. Upon the exercise of these warrants, the aggregate fair value of the Series E and Series F redeemable convertible preferred stock warrant liabilities was re-measured to be $1.2 million on the exercise date and was reclassified to redeemable convertible preferred stock. During the year ended January 31, 2018 , these shares of redeemable convertible preferred stock were automatically converted to 53,562 shares of Class B common stock at the respective conversion ratios. Common Stock Warrants In April 2013, in connection with a lease agreement and a loan agreement with the same financial institution, the Company issued immediately exercisable and fully vested warrants to purchase an aggregate of 116,258 shares of Class B common stock at an exercise price of $5.72 per share. Furthermore, in April 2013, in connection with a loan agreement with another financial institution, the Company issued immediately exercisable and fully vested warrants to purchase 5,785 shares of Class B common stock at an exercise price of $5.72 per share. These warrants were net exercised in full during the year ended January 31, 2018 and the Company issued 99,534 shares of Class B common stock upon such exercise. No common stock warrants were outstanding as of January 31, 2018 . |
Warrants
Warrants | 12 Months Ended |
Jan. 31, 2018 | |
Equity [Abstract] | |
Warrants | Stockholders’ Equity (Deficit) Redeemable Convertible Preferred Stock The Company previously issued redeemable convertible preferred stock in one or more series, each with such designations, rights, qualifications, limitations, and restrictions as set forth in the Company’s certificate of incorporation, as in effect prior to the IPO. Immediately prior to the completion of the IPO, as described in Note 1, Organization and Business Description , all shares of redeemable convertible preferred stock then outstanding were automatically converted to 26,952,887 shares of Class B common stock at the respective conversion ratios. Class A and Class B Common Stock The Company has two classes of common stock, Class A and Class B. The rights of the holders of Class A and Class B common stock are identical, except with respect to voting. Each share of Class A common stock is entitled to one vote per share. Each share of Class B common stock is entitled to 10 votes per share. Shares of Class B common stock may be converted to Class A common stock at any time at the option of the stockholder. Shares of Class B common stock automatically convert to Class A common stock upon the following: (i) sale or transfer of such share of Class B common stock, subject to specified permitted transfers; (ii) the death of the Class B common stockholder (or nine months after the date of death if the stockholder is one of the founders); and (iii) on the final conversion date, defined as the earlier of (a) the first trading day on or after the date on which the outstanding shares of Class B common stock represent less than 10% of the then-outstanding Class A and Class B common stock; or (b) the date specified by vote of the Board of Directors and the holders of a majority of the outstanding shares of Class B common stock and redeemable convertible preferred stock, voting together as a single class on an as-converted basis. Class A and Class B common stock are referred to as common stock throughout the notes to the consolidated financial statements, unless otherwise noted. As of January 31, 2018 , the Company had authorized 1,000,000,000 shares and 100,000,000 shares of Class A and Class B common stock, respectively, each par value $0.001 per share, of which 13,303,028 shares of Class A common stock were issued and outstanding and 37,371,914 and 37,272,543 shares of Class B common stock were issued and outstanding, respectively. Warrants Redeemable Convertible Preferred Stock Warrants The Company previously issued warrants to purchase Series E and Series F redeemable convertible preferred stock at an exercise price of $0.01 per share in connection with a software development contract with a customer. During the year ended January 31, 2018 , warrants to purchase 45,301 shares of Series E redeemable convertible preferred stock and 41,258 shares of Series F redeemable convertible preferred stock were exercised in full, representing the total number of redeemable convertible preferred stock warrants outstanding. Upon the exercise of these warrants, the aggregate fair value of the Series E and Series F redeemable convertible preferred stock warrant liabilities was re-measured to be $1.2 million on the exercise date and was reclassified to redeemable convertible preferred stock. During the year ended January 31, 2018 , these shares of redeemable convertible preferred stock were automatically converted to 53,562 shares of Class B common stock at the respective conversion ratios. Common Stock Warrants In April 2013, in connection with a lease agreement and a loan agreement with the same financial institution, the Company issued immediately exercisable and fully vested warrants to purchase an aggregate of 116,258 shares of Class B common stock at an exercise price of $5.72 per share. Furthermore, in April 2013, in connection with a loan agreement with another financial institution, the Company issued immediately exercisable and fully vested warrants to purchase 5,785 shares of Class B common stock at an exercise price of $5.72 per share. These warrants were net exercised in full during the year ended January 31, 2018 and the Company issued 99,534 shares of Class B common stock upon such exercise. No common stock warrants were outstanding as of January 31, 2018 . |
Equity Incentive Plans
Equity Incentive Plans | 12 Months Ended |
Jan. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity Incentive Plans | Equity Incentive Plans 2008 and 2016 Stock Plan In 2008 and 2016, the Company adopted the 2008 Stock Incentive Plan (as amended, the “2008 Plan”), and the 2016 Equity Incentive Plan (as amended, the “2016 Plan”), primarily for the purpose of granting stock-based awards to employees, directors and consultants, including stock options and other stock-based awards including restricted stock units (“RSUs”). With the establishment of the 2016 Plan in December 2016, all shares available for grant under the 2008 Plan were transferred to the 2016 Plan. The Company no longer grants any stock-based awards under the 2008 Plan and any shares underlying stock options canceled under the 2008 Plan will be automatically transferred to the 2016 Plan. Stock options granted under the stock option plans may be either incentive stock options (“ISOs”) or nonstatutory stock options (“NSOs”). ISOs may be granted to employees and NSOs may be granted to employees, directors, or consultants. As of January 31, 2018 , the Company made one ISO grant, all other stock options outstanding were granted as NSOs. The exercise prices of the stock option grants must be not less than 100% of the fair value of the common stock on the grant date as determined by the Board of Directors. If, at the date of grant, the optionee owns more than 10% of the total combined voting power of all classes of outstanding stock (a “ 10% stockholder”), the exercise price must be at least 110% of the fair value of the common stock on the date of grant as determined by the Board of Directors. Options granted are exercisable over a maximum term of 10 years from the date of grant or five years from the date of grant for ISOs granted to any 10% stockholder. The Board of Directors or a committee thereof determines the vesting schedule for all equity awards. Stock option awards generally vest over a period of four years with 25% vesting on the one year anniversary of the award and the remainder vesting monthly over the next 36 months of the grantee’s service to the Company. RSU awards generally vest over a period of four years with 25% vesting on the one year anniversary of the award and the remainder vesting quarterly over the next 12 quarters of the grantee’s service to the Company. Stock Options and Restricted Stock Units The following table summarizes stock option and RSU award activity for the 2008 and 2016 Plans (in thousands, except share and per share data and years): Options Outstanding Shares Shares Weighted- Weighted- Aggregate Balance - January 31, 2016 974,433 9,322,281 $ 13.20 8.3 $ 8,459 Authorized 3,000,000 — — Options granted (4,404,228 ) 4,404,228 6.74 Options exercised — (1,534,211 ) 5.43 Early exercised shares repurchased 6,354 — — Options forfeited and expired 1,101,701 (1,101,701 ) 11.09 Balance - January 31, 2017 678,260 11,090,597 6.47 8.2 $ 21,717 Authorized 6,979,900 — — Options granted (3,642,275 ) 3,642,275 10.80 Options exercised — (1,263,722 ) 6.59 Early exercised shares repurchased 34,710 — — Options forfeited and expired 831,715 (831,715 ) 7.73 RSUs granted (245,746 ) Balance - January 31, 2018 4,636,564 12,637,435 7.63 7.7 246,227 Options vested and exercisable - January 31, 2017 4,344,092 6.21 7.3 9,875 Options vested and exercisable - January 31, 2018 5,540,858 $ 6.33 6.6 $ 115,122 Options vested and exercisable - Stock options vested and expected to vest - January 31, 2018 12,637,435 $ 7.63 7.7 $ 246,227 The weighted-average grant-date fair value of options granted was $4.76 per share, $2.91 per share, and $7.53 per share during the years ended January 31, 2018, 2017 and 2016, respectively. The intrinsic value of options exercised for the years ended January 31, 2018, 2017 and 2016 was determined to be $4.1 million , $2.9 million , and $6.5 million , respectively. The total grant date fair value of options vested for the years ended January 31, 2018, 2017 and 2016, was $13.5 million , $15.5 million , and $11.6 million , respectively. As of January 31, 2018, we had stock-based compensation expenses of $37.4 million , related to unvested stock options that we expect to recognize over a weighted-average period of 2.54 years . During the year ended January 31, 2018 , the Company granted 245,746 RSUs with a total grant date fair value of $6.4 million . No RSUs were vested, forfeited or canceled as of January 31, 2018 . No RSUs were granted during the year ended January 31, 2017 . 2016 China Stock Appreciation Rights Plan In April 2016, the Company adopted the 2016 China Stock Appreciation Rights Plan (as amended, the “China SAR Plan”) for its employees in China. For grants made prior to the IPO, the China SAR Plan included a service vesting condition and a performance vesting condition. The service vesting condition is generally over four years with 25% vesting on the one year anniversary of the award and the remainder vesting monthly over the next 36 months of the grantee’s service to the Company. The performance vesting condition is defined as the Company’s common stock being publicly traded (a qualifying liquidity event). The China SAR Plan units are cash settled upon exercise and will be paid as a cash bonus equal to the difference between the strike price of the vested plan units and the fair market value of common stock at the end of each reporting period. For the year ended January 31, 2017 , the Company granted 21,500 units of the China SAR Plan at a weighted average strike price of $6.78 per share. The Company granted 8,000 units under this plan for the year ended January 31, 2018 . All of the units granted during the year ended January 31, 2017 were still outstanding as of January 31, 2018 . During the year ended January 31, 2018 , upon the vesting of 9,302 units, the total expense and liability related to China SAR for the year ended January 31, 2018 was $0.2 million and was recorded as part of the “Accrued compensation and benefits” on the Company’s consolidated balance sheet. The Company did not recognize any compensation expense related to the China SAR Plan prior to October 18, 2017 because the Company had determined the performance conditions, with respect to the occurrence of a qualifying liquidity event, were not probable until the successful IPO. 2017 Employee Stock Purchase Plan In October 2017, the Board of Directors adopted, and stockholders approved, the 2017 Employee Stock Purchase Plan (“ESPP”). A total of 995,000 shares of the Company’s Class A common stock have been initially authorized for issuance under the 2017 ESPP. Subject to any plan limitations, the 2017 ESPP allows eligible employees to contribute, normally through payroll deductions, up to 15% of their earnings for the purchase of the Company’s Class A common stock at a discounted price per share. Except for the initial offering period, the ESPP provides for separate six -month offering periods. The initial offering period will run from October 18, 2017 through June 15, 2018. Unless otherwise determined by the Board of Directors, the Company’s Class A common stock will be purchased for the accounts of employees participating in the ESPP at a price per share that is the lesser of (1) 85% of the fair market value of the Company’s Class A common stock on the first trading day of the offering period, which for the initial offering period is the price at which shares of the Company’s Class A common stock were first sold to the public, or (2) 85% of the fair market value of the Company’s Class A common stock on the last trading day of the offering period. During the year ended January 31, 2018 , no shares of Class A common stock were purchased under the 2017 ESPP. The total expense related to the 2017 ESPP for year ended January 31, 2018 was $0.7 million . Stock Option Repricing On April 13, 2016, the Company amended all then-current employee and active non-employee stock options with an exercise price greater than $6.50 per share that remained outstanding and unexercised on such date to reprice their respective exercise prices to $6.50 per share, the fair market value of the Company’s common stock as of April 13, 2016, as determined by the Board of Directors. Pursuant to this repricing, options to purchase 6,898,736 shares of common stock were repriced, including options to purchase 3,303,786 shares of common stock held by the Company’s executive officers. The Company determined the total incremental compensation expense related to the repriced awards was $10.7 million , of which $2.4 million and $5.6 million was recorded during the years ended January 31, 2018 and 2017 , respectively. Early Exercise of Stock Options The Company allows employees and directors to exercise options granted prior to vesting. The unvested shares are subject to lapsing repurchase rights upon termination of employment. For early exercised stock options under the 2008 Plan, the repurchase price is at the original purchase price. For early exercised stock options under the 2016 Plan, the repurchase price is the lower of (i) the then-current fair market value of the common stock on the date of repurchase, and (ii) the original purchase price. The proceeds initially are recorded in other current and noncurrent liabilities from the early exercise of stock options and reclassified to common stock and paid-in capital as the repurchase right lapses. For the years ended January 31, 2018 and 2017 , the Company issued common stock of 363,894 and 240,678 shares, respectively, for stock options exercised prior to vesting. For the years ended January 31, 2018 and 2017 , the Company repurchased 34,710 and 6,354 shares, respectively, of common stock related to unvested stock options at the original exercise price due to the termination of employees. As of January 31, 2018 and 2017 , there were 256,640 and 118,059 shares, respectively, held by employees and directors that were subject to potential repurchase at an aggregate price of $2 million and $0.8 million , respectively. Determination of Fair Value The determination of the fair value of stock options on the date of grant using an option-pricing model is affected by the fair value of the Company’s common stock, as well as assumptions regarding a number of complex and subjective variables. The Company uses the Black-Scholes option-pricing model to calculate the fair value of stock options, which requires the use of assumptions including actual and projected employee stock option exercise behaviors, expected price volatility of the Company’s common stock, the risk-free interest rate and expected dividends. Each of these inputs is subjective and generally requires significant judgment to determine. Fair Value of Common Stock. Prior to the IPO, the fair value of common stock underlying the stock options had historically been determined by the Board of Directors, with input from the Company’s management. The Board of Directors previously determined the fair value of the common stock at the time of grant of the options by considering a number of objective and subjective factors, including valuations of comparable companies, sales of redeemable convertible preferred stock, sales of common stock to unrelated third parties, operating and financial performance, the lack of liquidity of the Company’s capital stock, and general and industry-specific economic outlook. Subsequent to the IPO, the fair value of the underlying common stock is determined by the closing price, on the date of grant, of the Company’s Class A common stock, which is traded publicly on The Nasdaq Global Market. Expected Term. The expected term represents the period that stock-based awards are expected to be outstanding. For option grants that are considered to be “plain vanilla,” the Company determines the expected term using the simplified method. The simplified method deems the term to be the average of the time-to-vesting and the contractual life of the options. For other option grants, the Company estimates the expected term using historical data on employee exercises and post-vesting employment termination behavior taking into account the contractual life of the award. Expected Volatility. Since the Company has limited trading history of its common stock, the expected volatility is derived from the average historical stock volatilities of several unrelated public companies within the Company’s industry that the Company considers to be comparable to its own business over a period equivalent to the expected term of the stock option grants. Risk-Free Interest Rate. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for zero-coupon U.S. Treasury notes with maturities approximately equal to the option’s expected term. Dividend Rate. The expected dividend is assumed to be zero as the Company has never paid dividends and has no current plans to do so. The fair value of stock options granted was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions: Years Ended January 31, 2018 2017 2016 Expected term (in years) 5.85 - 6.20 5.77-6.99 6.08 Expected volatility 41.2% - 45.7% 41.4%-43.7% 43.5 % Risk-free interest rate 1.8% - 2.4% 1.2% - 2.0% 1.5% - 1.9% Dividend yield 0% 0% 0% The fair value of the purchase rights granted under the 2017 ESPP was estimated on the first day of the offering period using the Black-Scholes option-pricing model with the following assumptions: Year Ended January 31, 2018 Expected term (in years) 0.67 - 0.7 Expected volatility 23% - 24% Risk-free interest rate 1.2% Dividend yield 0% Stock-Based Compensation Expense Total stock-based compensation expense recognized in the Company’s consolidated statements of operations is as follows (in thousands): Years Ended January 31, 2018 2017 2016 Cost of revenue—subscription $730 $570 $282 Cost of revenue—services 462 482 272 Sales and marketing 6,364 5,514 3,524 Research and development 5,752 5,755 4,034 General and administrative 7,927 8,683 4,675 Total stock-based compensation expense $ 21,235 $ 21,004 $ 12,787 |
Net Loss per Share Attributable
Net Loss per Share Attributable to Common Stockholders | 12 Months Ended |
Jan. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Loss per Share Attributable to Common Stockholders | Net Loss per Share Attributable to Common Stockholders The Company calculates basic and diluted net loss per share attributable to common stockholders in conformity with the two-class method required for companies with participating securities. The Company considered all series of redeemable convertible preferred stock to have been participating securities as the holders were entitled to receive non-cumulative dividends on a pari passu basis in the event that a dividend was paid on common stock. Under the two-class method, the net loss attributable to common stockholders is not allocated to the redeemable convertible preferred stock as the holders of redeemable convertible preferred stock do not have a contractual obligation to share in losses. Under the two-class method, basic net loss per share attributable to common stockholders is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period, less shares subject to repurchase. Diluted net loss per share attributable to common stockholders is computed by giving effect to all potentially dilutive common stock equivalents outstanding for the period. For purposes of this calculation, redeemable convertible preferred stock, stock options to purchase common stock, early exercised stock options, and warrants to purchase redeemable convertible preferred stock and common stock are considered common shares equivalents, but have been excluded from the calculation of diluted net loss per share attributable to common stockholders as their effect is antidilutive. Basic and diluted net loss per share was the same for each period presented, as the inclusion of all potential common shares outstanding would have been antidilutive. The rights, including the liquidation and dividend rights, of the holders of Class A and Class B common stock are identical, except with respect to voting. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis and the resulting net loss per share attributed to common stockholders will, therefore, be the same for both Class A and Class B common stock on an individual or combined basis. The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except share and per share data): Years Ended January 31, 2018 2017 2016 Net loss attributable to common stockholders $ (96,359 ) $ (86,681 ) $ (73,486 ) Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted for Class A and Class B 23,718,391 12,211,711 11,240,696 Net loss per share attributable to common stockholders, basic and diluted $ (4.06 ) $ (7.10 ) $ (6.54 ) The following weighted-average outstanding potentially dilutive common shares were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because the impact of including them would have been antidilutive: Years Ended January 31, 2018 2017 2016 Redeemable convertible preferred stock (as converted) 19,534,014 25,856,309 25,853,450 Redeemable convertible preferred stock warrants (as converted) 22,592 54,604 54,604 Common stock warrants 90,143 122,043 122,043 Stock options to purchase Class B common stock 9,612,572 10,777,310 8,844,392 Stock options to purchase Class A common stock 2,552,397 52,663 — Early exercised stock options 236,675 79,394 29,744 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of loss before provision for income taxes were as follows (in thousands): Years Ended January 31, 2018 2017 2016 United States $ (57,903 ) $ (55,878 ) $ (44,218 ) Foreign (37,169 ) (30,084 ) (28,826 ) Total $ (95,072 ) $ (85,962 ) $ (73,044 ) The components of the provision for income taxes were as follows (in thousands): Years Ended January 31, 2018 2017 2016 Current: Federal $ — $ — $ — State 88 97 134 Foreign 1,493 626 310 Total 1,581 723 444 Deferred: Federal (96 ) 39 58 State 6 4 8 Foreign (204 ) (47 ) (68 ) Total (294 ) (4 ) (2 ) Provision for income taxes $ 1,287 $ 719 $ 442 The items accounting for the difference between income taxes computed at the federal statutory income tax rate of 33.8% and the provision for income taxes consisted of the following (in thousands): Years Ended January 31, 2018 2017 2016 Income tax benefit at statutory rate $ (32,145 ) $ (29,228 ) $ (24,834 ) State taxes, net of federal benefit 564 101 141 Impact of foreign income taxes 5,555 7,053 6,767 Stock based compensation 1,741 1,796 827 Non-deductible expenses 615 531 368 Change in valuation allowance (7,605 ) 19,390 17,197 Research and development credits (1,146 ) (775 ) (894 ) Prior year true ups (144 ) 918 (103 ) Change in tax rate due to the Tax Act 33,110 — — Other 742 933 973 Provision for income taxes $ 1,287 $ 719 $ 442 Impact of the 2017 Tax Cuts and Jobs Act The Tax Act was enacted on December 22, 2017, impacting U.S. federal taxation of corporations. Due to the Tax Act, the Company re-measured its U.S. federal deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which changed from approximately 35% to 21%. However, the Company is currently analyzing certain aspects of the Tax Act and refining its calculations, which could potentially affect the measurement of these balances or give rise to new deferred tax amounts. The provisional amount recorded related to the re-measurement of the Company’s deferred tax balance was $33.1 million before the valuation allowance. The provisional decrease to the valuation allowance related to the re-measurement of the deferred tax balance was $33.1 million . The remaining impact of the change in tax rate was recorded to income tax benefit, which relates to the reduction of deferred tax liabilities with respect to indefinite-lived intangibles. The Tax Act also includes a one-time transition tax on the Company’s total post-1986 earnings and profits (“E&P”), which were previously deferred from U.S. federal income taxes as the E&P were considered to be indefinitely reinvested. The Company has prepared a provisional estimate of the impact of the transition tax, and has determined that due to significant non-U.S. E&P deficits, the Company does not expect to be subject to the transition tax. The Act also includes provisions for certain foreign-sourced earnings referred to as Global Intangible Low-Taxed Income (“GILTI”), which impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The FASB issued guidance in January 2018 to allow companies to make an accounting policy election to either (i) account for GILTI as a component of tax expense in the period in which the tax is incurred (the “period cost method”), or (ii) account for GILTI in the measurement of deferred taxes (the “deferred method”). Because of the complexity of the new provisions, the Company is continuing to evaluate the accounting impact under GAAP and will make an election once this analysis has been completed. Given the significant complexity of the Tax Act, anticipated guidance from the Internal Revenue Service about implementing the Tax Act, and the potential for additional guidance from the SEC or the FASB related to the Tax Act, the Company’s estimates may be adjusted in future periods. Any subsequent adjustment to estimates will be recorded to current tax expense in future quarters at which point the Company’s analysis and accounting for all aspects of the Tax Act is complete. Deferred Income Taxes At January 31, 2018 the Company had NOL carryforwards for federal, state and Irish income tax purposes of $209.5 million , $166.5 million and $182.3 million , respectively, which begin to expire in the year ending January 31, 2028 for federal purposes and January 31, 2021 for state purposes. Ireland allows NOLs to be carried forward indefinitely. The deferred tax assets associated with the NOL carryforwards in each of these jurisdictions are subject to a full valuation allowance. Utilization of the federal net operating loss carryforwards and credits may be subject to a substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended, and similar state provisions. Under Section 382 of the U.S. Internal Revenue Code of 1986, a corporation that experiences an “ownership change” is subject to a limitation on the Company’s ability to utilize its pre-change NOLs to offset future taxable income. In April 2017, the Company completed an analysis under Section 382 to evaluate whether there are any limitations on its NOLs through January 31, 2017 and concluded that any prior ownership changes do not limit the utilization of the NOLs before they expire assuming sufficient future federal and state taxable income. However, it is possible that the Company could experience a future ownership change under Section 382 or other regulatory changes, such as suspension on the use of the NOLs, that could result in the expiration of its NOLs or otherwise cause them to be unavailable to offset future federal and state taxable income. Deferred income taxes arise from temporary differences between the carrying amounts of assets and liabilities for financial reporting and the amounts used for income tax reporting purposes, as well as operating losses and tax credit carryforwards. Significant components of the Company’s deferred tax assets for federal and state income taxes are as follows as of January 31, 2018, 2017 and 2016, respectively (in thousands): Years Ended January 31, 2018 2017 Deferred tax assets: Net operating loss carryforwards $ 77,434 $ 82,762 Deferred revenue 3,537 1,683 Other liabilities and accruals 6,852 7,863 Depreciable assets 1,583 1,919 Other reserves 339 352 Gross deferred tax assets 89,745 94,579 Valuation allowance (89,336 ) (94,465 ) Total deferred tax assets, net of valuation allowance 409 114 Deferred tax liability: Goodwill (101 ) (108 ) Total deferred tax liability (101 ) (108 ) Net deferred tax assets $ 308 $ 6 Deferred tax assets are recognized when management believes it more likely than not that they will be realized. Deferred tax assets are reduced by a valuation allowance if, based on available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Due to the significant negative evidence resulting from losses since inception in the U.S. federal, U.S. state and Ireland jurisdictions, management maintains a full valuation allowance against the net deferred tax assets in these jurisdictions. The valuation allowance for deferred tax assets as of January 31, 2018 and 2017 was $89.3 million and $94.5 million , respectively. In assessing the realizabilty of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected future taxable income, and tax planning strategies in making this assessment. Uncertain Tax Positions The calculation of the Company’s tax obligations involves dealing with uncertainties in the application of complex tax laws and regulations. ASC 740, Income Taxes , provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, on the basis of the technical merits. The Company has assessed its income tax positions and recorded tax benefits for all years subject to examination, based upon the Company’s evaluation of the facts, circumstances and information available at each period end. For those tax positions where the Company has determined there is a greater than 50% likelihood that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is determined there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit has been recognized. Although the Company believes that it has adequately reserved for its uncertain tax positions, the Company can provide no assurance that the final tax outcome of these matters will not be materially different. As the Company expands internationally, it will face increased complexity, and the Company’s unrecognized tax benefits may increase in the future. The Company makes adjustments to its reserves when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made. The activity within the Company’s unrecognized gross tax benefits was as follows (in thousands): Years Ended January 31, 2018 2017 2016 Unrecognized tax benefits at beginning of year $ 4,400 $ 3,411 $ 2,229 Decreases in tax positions in prior years (1,494 ) (83 ) — Additions based on tax positions in the current year 1,143 1,072 1,182 Unrecognized tax benefits at end of year $ 4,049 $ 4,400 $ 3,411 Principally, because the Tax Act has now applied a federal tax on accumulated foreign earnings through January 31, 2018, as well as the potential that U.S state and foreign withholding taxes may also apply, the Company is continuing to evaluate the impacts of the Tax Act during the measurement period, including whether to continue applying the exception to the presumption of the repatriation of foreign earnings. The Company has not provided for foreign withholding taxes on approximately $0.8 million of undistributed earnings from non-U.S. operations as of January 31, 2018 because the Company intends to reinvest such earnings indefinitely outside of the United States. If the Company were to distribute these earnings, then foreign withholding tax would be payable. The amount of unrecognized deferred tax liability related to these earnings was estimated to be immaterial. The Company is not currently under Internal Revenue Service, state, or foreign income tax examination. The Company does no t anticipate any significant increases or decreases in its uncertain tax positions within the next twelve months. The Company files tax returns in the United States for federal, California and other states. All tax years remain open to examination for both federal and state purposes as a result of the net operating loss and credit carryforwards. The Company files foreign tax returns in various locations. These foreign returns are open to examination for the fiscal years ending January 31, 2012 through January 31, 2017. |
Segments and Geographic Revenue
Segments and Geographic Revenue | 12 Months Ended |
Jan. 31, 2018 | |
Segment Reporting [Abstract] | |
Segments and Geographic Revenue | Segments and Geographic Revenue The Company operates its business as one operating segment as it only reports financial information on an aggregate and consolidated basis to the Chief Executive Officer, who is the Company’s chief operating decision maker. The following table sets forth the Company’s total revenue by geographic area based on the customers’ location (in thousands): Years Ended January 31, 2018 2017 2016 Americas $ 104,446 $ 69,068 $ 45,231 Europe 43,668 29,139 17,685 Asia Pacific 6,405 3,151 2,355 Total $ 154,519 $ 101,358 $ 65,271 Customers located in the United States accounted for 64% , 65% and 69% of total revenue for the years ended January 31, 2018 , 2017 and 2016 , respectively. Customers located in the United Kingdom accounted for 11% and 11% of total revenue for the years ended January 31, 2018 and 2017 , respectively. No other country accounted for 10% or more of revenue for the periods presented. As of January 31, 2018 and 2017 , substantially all of the Company’s long-lived assets were located in the United States. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and accounts have been eliminated. |
Use of Estimates | The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Such estimates include, but are not limited to, revenue recognition, allowances for doubtful accounts, stock-based compensation, fair value of common stock and redeemable convertible preferred stock warrants prior to the IPO, legal contingencies, fair value of acquired intangible assets and goodwill, useful lives of acquired intangible assets and property and equipment, and accounting for income taxes. The Company bases these estimates on historical and anticipated results, trends and various other assumptions that it believes are reasonable under the circumstances, including assumptions as to future events. Actual results could differ from those estimates. |
Emerging Growth Company Status | As an “emerging growth company” (“EGC”), the Jump-start Our Business Start-ups Act (“JOBS Act”), allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. The Company has elected to use this extended transition period under the JOBS Act. As a result, the Company’s financial statements may not be comparable to the financial statements of issuers who are required to comply with the effective dates for new or revised accounting standards that are applicable to public companies, which may make the Company’s common stock less attractive to investors. |
Foreign Currency | The functional currency of the Company’s international subsidiaries is either the U.S. dollar or the local currency in which the international subsidiary operates. For these subsidiaries where the U.S. dollar is the functional currency, foreign currency denominated monetary assets and liabilities are re-measured into U.S. dollars at current exchange rates and foreign currency denominated nonmonetary assets and liabilities are re-measured into U.S. dollars at historical exchange rates. Gains or losses from foreign currency re-measurement and settlements are included in other income (expense), net in the consolidated statements of operations. For foreign subsidiaries where the functional currency is the local currency, the Company uses the period-end exchange rates to translate assets and liabilities, and the average exchange rates to translate revenue and expenses into U.S. dollars. The Company records translation gains and losses in accumulated other comprehensive income (loss) as a component of stockholders' equity (deficit). |
Comprehensive Loss | The Company’s comprehensive loss includes net loss and unrealized gains and losses on available-for-sale securities and foreign currency translation adjustments. |
Cash and Cash Equivalents | The Company considers all highly liquid investments, including money market funds with an original maturity of three months or less at the date of purchase, to be cash equivalents. |
Marketable Securities | The Company’s short-term investments consist of U.S. government treasury securities and money market instruments. The Company determines the appropriate classification of its short-term investments at the time of purchase and reevaluates such designation at each balance sheet date. The Company has classified and accounted for its short-term investments as available-for-sale securities as the Company may sell these securities at any time for use in its current operations or for other purposes, even prior to maturity. As a result, the Company classifies its short-term investments within current assets on the consolidated balance sheets. Available-for-sale securities are recorded at fair value each reporting period. Unrealized gains and losses on these short-term investments are reported as a separate component of accumulated other comprehensive loss on the consolidated balance sheets until realized. The Company periodically evaluates its short-term investments to assess whether those with unrealized loss positions are other than temporarily impaired. The Company considers various factors in determining whether to recognize an impairment charge. Realized gains and losses are determined based on the specific identification method and are reported in interest income in the consolidated statements of operations. If the Company determines that the decline in an investment's fair value is other-than-temporary, the difference is recognized as an impairment loss in the consolidated statements of operations. |
Restricted Cash | Restricted cash balances are included in other assets on the consolidated balance sheets. |
Fair Value of Financial Instruments | The Company’s financial instruments consist of cash equivalents, short-term investments, accounts receivable, accounts payable, accrued liabilities and the redeemable convertible preferred stock warrant liability. Cash equivalents are stated at amortized cost, which approximates fair value at the balance sheet dates, due to the short period of time to maturity. Short-term investments are recorded at fair value. Accounts receivable, accounts payable and accrued liabilities are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment date. The redeemable convertible preferred stock warrant liability is carried at fair value. Assets and liabilities recorded at fair value on a recurring basis in the balance sheets consisting of cash equivalents, short-term investments and the redeemable convertible preferred stock warrant liability are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, as described below, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: • Level 1: Observable inputs, such as quoted prices (unadjusted) in active markets for identical assets or liabilities at the measurement date. • Level 2: Observable inputs, other than Level 1 prices, such as quoted prices in active markets for similar assets and liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company’s financial instruments that are carried at fair value consist of Level 1 assets and Level 3 liabilities. Level 1 assets include highly liquid money market funds classified as cash equivalents and U.S. government treasury securities classified as short-term investments. Level 3 liabilities consist of the redeemable convertible preferred stock warrant liability. |
Concentration of Credit Risk | Financial instruments that potentially subject us to concentrations of credit risk are primarily cash, cash equivalents, restricted cash, short-term investments, and accounts receivable. The primary focus of the Company’s investment strategy is to preserve capital and meet liquidity requirements. The Company maintains its cash accounts with financial institutions where, at times, deposits exceed federal insurance limits. The Company invests its excess cash in highly-rated money market funds and in short-term investments consisting of U.S. government treasury securities. The Company extends credit to customers in the normal course of business. The Company performs credit analyses and monitors the financial health of its customers to reduce credit risk. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company records an allowance for doubtful accounts relating to certain trade accounts receivable. The allowance is based on various factors, including the review of credit profiles of its customers, contractual terms and conditions, current economic trends and historical customer payment experience. |
Allowance for Doubtful Accounts | The Company performs initial and ongoing evaluations of its customers' financial position, and generally extends credit without collateral. The Company determines the need for an allowance for doubtful accounts based upon various factors, including past collection experience, credit quality of the customer, age of the receivable balance, and current economic conditions, as well as specific circumstances arising with individual customers. Trade receivables are written off against the allowance when management determines a balance is uncollectible and the Company no longer actively pursues collection of the receivable. |
Capitalized Software Costs | Software development costs for software to be sold, leased, or otherwise marketed are expensed as incurred until the establishment of technological feasibility, at which time those costs are capitalized until the product is available for general release to customers and amortized over the estimated life of the product. Technological feasibility is established upon the completion of a working prototype that has been certified as having no critical bugs and is a release candidate. To date, costs and time incurred between the establishment of technological feasibility and product release have not been material, resulting in software development costs qualifying for capitalization being immaterial. As a result, all software development costs have been recorded in research and development expense in the consolidated statements of operations. Costs related to software acquired, developed, or modified solely to meet the Company’s internal requirements, with no substantive plans to market such software at the time of development, or costs related to development of web-based product are capitalized. Costs incurred during the preliminary planning and evaluation stage of the project and during post implementation operational stage are expensed as incurred. Costs incurred during the application development stage of the project are capitalized. |
Property and Equipment | Property and equipment are recorded at cost and depreciated over their estimated useful lives using the straight-line method and the following estimated useful lives: Property and Equipment Estimated Useful Life Computer and office equipment Two to three years Purchased software Two to three years Servers Three years Furniture and fixtures Five years Leasehold improvements Lesser of estimated useful life or remaining lease term Upon retirement or sale, the cost of assets disposed of, and the related accumulated depreciation, is removed from the accounts and any resulting gain or loss is reflected in the consolidated statements of operations. There was no material gain or loss incurred as a result of retirement or sale in the periods presented. Repair and maintenance costs are expensed as incurred. |
Long-Lived Assets, Including Other Acquired Intangible Assets | Acquired amortizable intangible assets are amortized on a straight-line basis over the estimated useful lives of the assets. The estimated remaining useful lives for intangible assets range from 1.8 to 2.2 years as of January 31, 2018 and 2.8 to 3.2 years as of January 31, 2017 . In addition to the recoverability assessment, the Company periodically reviews the remaining estimated useful lives of property and equipment and amortizable intangible assets. If the estimated useful life assumption for any asset is changed, the remaining unamortized balance would be depreciated or amortized over the revised estimated useful life, on a prospective basis. The Company evaluates the recoverability of property and equipment and amortizable intangible assets for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If such review indicates that the carrying amount of property and equipment and intangible assets is not recoverable, the carrying amount of such assets is reduced to fair value. |
Goodwill | In addition, the Company tests goodwill for impairment at least annually or more frequently if events or changes in circumstances indicate that this asset may be impaired. These tests are based on the Company’s single operating segment and reporting unit structure. No indications of impairment of goodwill were noted during the years ended January 31, 2018 and 2017 . |
Deferred Rent | Rent expense is recognized on a straight-line basis over the non-cancelable term of the operating lease. The Company records the difference between cash rent payments and recognized rent expense as a deferred rent liability included in accrued liabilities and other liabilities on the consolidated balance sheets. Incentives granted under the Company’s facility leases, including allowances to fund leasehold improvements, are deferred and are recognized as adjustments to rental expense on a straight-line basis over the term of the lease. |
Revenue Recognition | The Company derives its revenue from two sources: (1) sales of subscriptions, including term license and technical support arrangements, and consumption-based hosted as-a-service offerings; and (2) services revenue comprised of consulting and training arrangements. The Company considers revenue realizable and earned when all of the following criteria are satisfied: • there is persuasive evidence of an arrangement; • delivery has occurred; • the collection of the fees is probable; and • fees for consideration are fixed or determinable. The Company’s subscription service arrangements generally are non-cancelable and do not contain refund-type provisions. The Company recognizes subscription revenue ratably over the contract term, provided that all other revenue recognition criteria have been met. The Company provides its support services pursuant to these subscription arrangements, which are primarily on an annual basis and involve technical support and access to new software versions on a when-and-if available basis. In addition, revenue related to hosted as-a-service solutions are recognized on a usage-basis, as consideration for these arrangements are contingent upon the frequency that the licensee uses the product or on the size and speed of the required infrastructure of the hosted deployment. The Company recognizes revenue from services agreements on a percent complete basis if sold on a stand-alone basis and over the contractual subscription period if sold as a bundled element along with the Company’s subscriptions. When services commence later than the start date of the subscription, no revenue is recognized until services commence. Once services commence, as long as all other revenue recognition criteria have been met, we record a cumulative catch up of revenue that would have been recognized over the period from the beginning of the subscription term until the commencement of services. Subscription Revenue The Company’s subscription revenue is primarily comprised of time-based software licenses sold in conjunction with post-contract customer support (“PCS”). The Company typically bills subscription revenue annually in advance. As the Company’s subscription offerings include a software license and PCS for which the Company has not established Vendor Specific Objective Evidence (“VSOE”), the entire fee is recognized ratably over the term of the PCS. See "—Multiple-Element Arrangements" section below. In certain circumstances, the Company makes software available to its customers online under hosting arrangements. The online services are currently comprised of an automated database backup storage tool, a database management automation tool and a database as-a-service tool wherein the customer can purchase storage, security and monitoring capabilities. Generally, revenue related to hosted as-a-service solutions are recognized on a usage-basis, as consideration for these arrangements are contingent upon the frequency that the licensee uses the product or on the size and speed of the required infrastructure of the hosted deployment. Services Revenue The Company’s services contracts are provisioned on either a time-and-materials basis, fixed-fee basis or subscription basis. Revenue is recognized on a proportional performance basis as the services are delivered for standalone time and materials contracts and for standalone fixed price contracts. As arrangements in which services are sold with subscription offerings are in essence multiple-element arrangements, all revenue in the arrangement is recognized ratably over the term of the undelivered elements assuming all other revenue recognition criteria have been met. See "—Multiple-Element Arrangements" section below. Multiple-Element Arrangements Guidance for multiple-element arrangements (“MEA”) dictate that contract fees be allocated across each element in an MEA based on VSOE of fair value. In cases where MEA software arrangements include both delivered and undelivered elements and VSOE of fair value exists for all undelivered elements, the Company may utilize the residual method for allocating fair value. Essentially, revenue recognition occurs immediately for the delivered elements and commences for the undelivered element(s), assuming all other revenue recognition criteria have been met. In the event an MEA includes both delivered and undelivered elements, and the Company has not established VSOE for the undelivered elements, all revenue from the arrangement shall be deferred until the earlier of the point at which VSOE is established or all elements have been delivered. As an exception to this guidance, in the event VSOE is not established for the undelivered elements and the only undelivered element is either PCS or services that do not involve significant production, modification or customization of software, the entire fee is recognized ratably over the term of the undelivered elements assuming all other revenue recognition criteria have been met and services are generally provided at the beginning or over the course of the arrangement. |
Cost of Revenue | Cost of revenue consists primarily of costs related to providing the Company’s subscription and hosting services to its paying customers, including personnel costs, including salaries, bonuses and benefits, and stock-based compensation and related expenses for datacenter operations, customer support and services personnel, as well as depreciation of servers and equipment. |
Deferred Commissions and Commissions Expense | Deferred commissions are the incremental costs that are directly associated with non-cancelable subscription contracts with customers and consist of sales commissions paid to the Company’s direct sales force. The commissions are deferred and amortized over the non-cancelable terms of the related customer contracts. Sales commissions are generally paid up front and one month in arrears, however, payment timing is based on contractual terms of the underlying subscription contract and is subject to an evaluation of customer credit-worthiness. The deferred commission amounts are recoverable through the future revenue streams under the non-cancelable customer contracts. |
Research and Development | Research and development costs are expensed as incurred and consist primarily of personnel costs, including salaries, bonuses and benefits, and stock-based compensation. Research and development costs also include amortization associated with intangible acquired assets and allocated overhead. |
Advertising | Advertising costs are charged to operations as incurred or the first time the advertising takes place, based on the nature of the advertising, and include direct marketing, events, public relations, sales collateral materials and partner programs. |
Redeemable Convertible Preferred Stock Warrant | The Company previously issued redeemable convertible preferred stock warrants, which required liability classification and accounting as the underlying convertible preferred stock were contingently redeemable as discussed in Note 8, Warrants . |
Common Stock Warrant | The Company previously issued common stock warrants, as discussed in Note 8, Warrants , which were measured at their estimated fair value upon issuance using the Black-Scholes pricing model and were recorded in additional paid-in capital on the consolidated balance sheets. |
Stock-Based Compensation | Compensation expense related to stock options granted to employees is calculated based on the fair value of stock-based awards on the date of grant. The Company determines the grant date fair value of the awards using the Black-Scholes option-pricing model. The related stock-based compensation expense is recognized on a straight-line basis over the period in which an employee is required to provide service in exchange for the stock-based award, which is generally four years. For stock-based awards issued to non-employees, including consultants, the Company records expense related to stock options based on the fair value of the options calculated using the Black-Scholes option-pricing model over the service performance period. The Company believes that the fair value of the stock options is more reliably measured than the fair value of the services received. The fair value of each non-employee stock-based compensation award is re-measured each period until a commitment date is reached, which is generally the vesting date. The Company’s stock price volatility and expected option life involve management's best estimates, both of which impact the fair value of the option calculated under the Black-Scholes option pricing model and, ultimately, the expense that will be recognized over the life of the option. Determination of Fair Value The determination of the fair value of stock options on the date of grant using an option-pricing model is affected by the fair value of the Company’s common stock, as well as assumptions regarding a number of complex and subjective variables. The Company uses the Black-Scholes option-pricing model to calculate the fair value of stock options, which requires the use of assumptions including actual and projected employee stock option exercise behaviors, expected price volatility of the Company’s common stock, the risk-free interest rate and expected dividends. Each of these inputs is subjective and generally requires significant judgment to determine. Fair Value of Common Stock. Prior to the IPO, the fair value of common stock underlying the stock options had historically been determined by the Board of Directors, with input from the Company’s management. The Board of Directors previously determined the fair value of the common stock at the time of grant of the options by considering a number of objective and subjective factors, including valuations of comparable companies, sales of redeemable convertible preferred stock, sales of common stock to unrelated third parties, operating and financial performance, the lack of liquidity of the Company’s capital stock, and general and industry-specific economic outlook. Subsequent to the IPO, the fair value of the underlying common stock is determined by the closing price, on the date of grant, of the Company’s Class A common stock, which is traded publicly on The Nasdaq Global Market. Expected Term. The expected term represents the period that stock-based awards are expected to be outstanding. For option grants that are considered to be “plain vanilla,” the Company determines the expected term using the simplified method. The simplified method deems the term to be the average of the time-to-vesting and the contractual life of the options. For other option grants, the Company estimates the expected term using historical data on employee exercises and post-vesting employment termination behavior taking into account the contractual life of the award. Expected Volatility. Since the Company has limited trading history of its common stock, the expected volatility is derived from the average historical stock volatilities of several unrelated public companies within the Company’s industry that the Company considers to be comparable to its own business over a period equivalent to the expected term of the stock option grants. Risk-Free Interest Rate. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for zero-coupon U.S. Treasury notes with maturities approximately equal to the option’s expected term. Dividend Rate. The expected dividend is assumed to be zero as the Company has never paid dividends and has no current plans to do so. |
Net Loss per Share | The Company calculates basic and diluted net loss per share attributable to common stockholders in conformity with the two-class method required for companies with participating securities. The Company considers all series of redeemable convertible preferred stock to be participating securities as the holders are entitled to receive non-cumulative dividends on a pari passu basis in the event that a dividend is paid on common stock. Under the two-class method, the net loss attributable to common stockholders is not allocated to the redeemable convertible preferred stock as the holders of redeemable convertible preferred stock do not have a contractual obligation to share in losses. Under the two-class method, basic net loss per share attributable to common stockholders is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period, less shares subject to repurchase. Diluted net loss per share attributable to common stockholders is computed by giving effect to all potentially dilutive common stock equivalents outstanding for the period. For purposes of this calculation, redeemable convertible preferred stock, stock options to purchase common stock, early exercised stock options, and warrants to purchase redeemable convertible preferred stock and common stock are considered common shares equivalents, but have been excluded from the calculation of diluted net loss per share attributable to common stockholders as their effect is antidilutive. The Company calculates basic and diluted net loss per share attributable to common stockholders in conformity with the two-class method required for companies with participating securities. The Company considered all series of redeemable convertible preferred stock to have been participating securities as the holders were entitled to receive non-cumulative dividends on a pari passu basis in the event that a dividend was paid on common stock. Under the two-class method, the net loss attributable to common stockholders is not allocated to the redeemable convertible preferred stock as the holders of redeemable convertible preferred stock do not have a contractual obligation to share in losses. Under the two-class method, basic net loss per share attributable to common stockholders is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period, less shares subject to repurchase. Diluted net loss per share attributable to common stockholders is computed by giving effect to all potentially dilutive common stock equivalents outstanding for the period. For purposes of this calculation, redeemable convertible preferred stock, stock options to purchase common stock, early exercised stock options, and warrants to purchase redeemable convertible preferred stock and common stock are considered common shares equivalents, but have been excluded from the calculation of diluted net loss per share attributable to common stockholders as their effect is antidilutive. Basic and diluted net loss per share was the same for each period presented, as the inclusion of all potential common shares outstanding would have been antidilutive. |
Segment Information | The Company operates as one operating segment as it only reports financial information on an aggregate and consolidated basis to the Company’s Chief Executive Officer, who is the chief operating decision maker. |
Income Taxes | The Company follows the asset and liability method of accounting for income taxes. This method requires recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. A valuation allowance has been established for the full amount of the net deferred tax assets as the Company has determined that the future realization of the tax benefit is not more likely than not. The Company recognizes the tax benefit from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the tax authorities, based on the technical merits of the position. The tax benefit is measured based on the largest benefit that is more likely than not of being realized upon ultimate settlement. The Company recognizes interest and penalties on amounts due to taxing authorities as a component of other income and (expense), net. On December 22, 2017, the 2017 Tax Cuts and Jobs Act (the “Tax Act”) was enacted into law and the new legislation significantly revised the Internal Revenue Code of 1986, as amended. The newly enacted federal income tax law, among other things, contains significant changes to corporate taxation, including the reduction of the corporate tax rate from a top marginal rate of 35% to a flat rate of 21%, limitation of the tax deduction for interest expense to 30% of adjusted earnings, limitation of the deduction for newly generated net operating losses (“NOLs”) to 80% of current year taxable income and elimination of NOL carrybacks, one time taxation of offshore earnings at reduced rates regardless of whether they are repatriated (the “Transition Tax”), future taxation of certain classes of offshore earnings regardless of whether they are repatriated, immediate deductions for certain new investments instead of deductions for depreciation expense over time, and modifying or repealing many business deductions and credits. The Company is required to recognize the effect of these significant tax law changes in the period of enactment. Also on December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”), which allows the Company to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. Given the significant complexity of the Tax Act, anticipated guidance from the Internal Revenue Service about implementing the Tax Act, and the potential for additional guidance from the SEC or the FASB related to the Tax Act, the Company’s current estimates may be adjusted in future periods. The Company expects to complete its analysis within the measurement period in accordance with SAB 118. Any subsequent adjustments to current estimates will be recorded to tax expense during the quarter in the Company’s fiscal year ending January 31, 2019 in which the Company’s analysis of and accounting for the Tax Act is complete. The calculation of the Company’s tax obligations involves dealing with uncertainties in the application of complex tax laws and regulations. ASC 740, Income Taxes , provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, on the basis of the technical merits. The Company has assessed its income tax positions and recorded tax benefits for all years subject to examination, based upon the Company’s evaluation of the facts, circumstances and information available at each period end. For those tax positions where the Company has determined there is a greater than 50% likelihood that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is determined there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit has been recognized. |
Related Party Transactions | All contracts with related parties are executed in the ordinary course of business. |
Recently Adopted and New Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements Stock-Based Compensation. Starting February 1, 2016, the Company elected to early adopt ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvement to Employee Share-based Payment Accounting , which would among other items, provide an accounting policy election to account for forfeitures as they occur, rather than to account for them based on an estimate of expected forfeitures and modifies financial statement presentation of excess tax benefits or deficiencies. The Company elected to account for forfeitures as they occur and therefore, stock-based compensation expense for the years ended months ended January 31, 2018 and 2017 has been calculated based on actual forfeitures in the consolidated statements of operations. The cumulative effect of this change increased the accumulated deficit and decreased additional paid-in capital as of February 1, 2016 by $1.5 million . In addition, the effect on the Company’s historical consolidated financial statements was limited to an immaterial cumulative-effect adjustment for previously unrecognized excess tax benefits as a deferred tax asset with an offset to opening accumulated deficit, which was fully offset by a valuation allowance. In May 2017, the Financial Accounting Standards Board (“FASB”), issued ASU 2017-09, Compensation—Stock Compensation (Topic 718). The amendments in the update provide guidance on types of changes to the terms or conditions of share-based payment awards, which would be required to apply modification accounting under Accounting Standards Codification (“ASC”) 718. The new guidance became effective for the Company for the fiscal year ending January 31, 2018. The adoption of ASU 2017-09 did not have a material impact on the Company’s consolidated financial statements. Consolidated Statements of Cash Flows. Starting February 1, 2016, the Company elected to early adopt ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments and ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash . ASU No. 2016-15 eliminates the diversity in practice related to the classification of certain cash receipts and payments for debt prepayment or extinguishment costs, the maturing of a zero-coupon bond, the settlement of contingent liabilities arising from a business combination, proceeds from insurance settlements, distributions from certain equity method investees and beneficial interests obtained in a financial asset securitization. ASU No. 2016-18 requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The Company adopted ASU No. 2016-15 and ASU No. 2016-18 using the retrospective transition method and adjusted the consolidated statements of cash flows in all comparative periods presented. New Accounting Pronouncements Not Yet Adopted Goodwill Impairment. In January 2017, the FASB issued ASU 2017-04— Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The new standard will simplify the measurement of goodwill by eliminating step two of the two-step impairment test. Step two measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. The new guidance requires an entity to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. 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. The new guidance becomes effective for the Company for the fiscal year ending January 31, 2022, though early adoption is permitted. The Company does not expect the adoption of the new accounting standard to have a material impact on its consolidated financial statements. Leases. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which modifies lease accounting for lessees to increase transparency and comparability by recording lease assets and liabilities for operating leases and disclosing key information about leasing arrangements. Depending on when the Company loses its EGC status, it may be required to adopt the new lease standard as early as its interim results for the period ending April 30, 2019, but no later than for its annual results for the fiscal year ending January 31, 2021, though early adoption is permitted. The Company is currently evaluating adoption methods and whether this standard will have a material impact on its consolidated financial statements. Revenue Recognition. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which amends the existing accounting standard for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount to which an entity expects to be entitled when products are transferred to customers. Subsequently, the FASB has issued the following pronouncements related to ASU 2014-09: ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations ; ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing ; ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients ; and ASU 2016-20, Technical Corrections and Improvements to Topic 606 , which clarifies narrow aspects of ASC 606 or corrects unintended application of the guidance. The Company must adopt ASU 2016-08, ASU 2016-10, ASU 2016-12, and ASU 2016-20 with ASU 2014-09 (collectively, the “new revenue standard”). The Company plans to adopt the new revenue standard using the full retrospective transition method when it becomes effective for the Company. Depending on when the Company loses its EGC status, it may be required to adopt the new revenue standard as early as its annual results for the fiscal year ending January 31, 2019, but no later than for its annual results for the fiscal year ending January 31, 2020, though early adoption is permitted. While the Company continues to assess the potential impacts of the new revenue standard, the Company currently expects unearned subscription revenue to decline significantly upon adoption. Currently, as the Company’s subscription offerings include software term licenses and post-contract customer support for which the Company has not established vendor specific objective evidence (“VSOE”), the entire subscription fee is recognized ratably over the term of the contract. However, under the new revenue standard, the requirement for VSOE for undelivered elements is eliminated and, as a result, the Company will be required to identify all deliverables in a contract and recognize revenue based on each deliverable separately. The Company currently expects that the portion related to the software term license deliverable will be recognized upon delivery. The Company is in the process of determining the revenue recognition impact for the other deliverables of each contract. The Company continues to evaluate the effect that the new revenue standard will have on its consolidated financial statements and related disclosures, and preliminary assessments are subject to change. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Accounting Policies [Abstract] | |
Property, plant and equipment | Property and equipment are recorded at cost and depreciated over their estimated useful lives using the straight-line method and the following estimated useful lives: Property and Equipment Estimated Useful Life Computer and office equipment Two to three years Purchased software Two to three years Servers Three years Furniture and fixtures Five years Leasehold improvements Lesser of estimated useful life or remaining lease term Property and equipment, net consists of the following (in thousands): January 31, 2018 January 31, 2017 Servers $ 4,279 $ 4,175 Furniture and fixtures 2,259 2,014 Computer and office equipment 175 309 Purchased software 887 702 Leasehold improvements 8,548 7,235 Construction in process 883 171 Building 54,709 — Total property and equipment 71,740 14,606 Less: accumulated depreciation and amortization (12,183 ) (9,729 ) Property and equipment, net $ 59,557 $ 4,877 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial assets and liabilities measured at fair value on a recurring basis | The following tables present information about the Company’s financial assets and liabilities that have been measured at fair value on a recurring basis as of January 31, 2018 and 2017 , and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands): Fair Value Measurement at January 31, 2018 Level 1 Level 2 Level 3 Total Financial Assets: Cash equivalents: Money market funds $ 45,918 $ — $ — $ 45,918 Short-term investments: U.S. government treasury securities 217,072 — — 217,072 Total financial assets $ 262,990 $ — $ — $ 262,990 Fair Value Measurement at January 31, 2017 Level 1 Level 2 Level 3 Total Financial Assets: Cash equivalents: Money market funds $ 35,104 $ — $ — $ 35,104 U.S. government treasury securities 20,000 — — 20,000 Short-term investments: U.S. government treasury securities 47,195 — — 47,195 Total financial assets $ 102,299 $ — $ — $ 102,299 Financial Liability: Redeemable convertible preferred stock warrant liability $ — $ — $ 1,272 $ 1,272 Total financial liability $ — $ — $ 1,272 $ 1,272 |
Schedule of reconciliation of the redeemable convertible preferred stock warrant liability | The following table presents a reconciliation of the redeemable convertible preferred stock warrant liability measured at fair value using significant unobservable inputs (in thousands): Fair value, beginning balance, January 31, 2017 $ 1,272 Issuance of redeemable convertible preferred stock warrants — Conversion of redeemable convertible preferred (1,171 ) Change in fair value of redeemable convertible preferred stock warrant liability (101 ) Fair value, ending balance, January 31, 2018 $ — |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment | Property and equipment are recorded at cost and depreciated over their estimated useful lives using the straight-line method and the following estimated useful lives: Property and Equipment Estimated Useful Life Computer and office equipment Two to three years Purchased software Two to three years Servers Three years Furniture and fixtures Five years Leasehold improvements Lesser of estimated useful life or remaining lease term Property and equipment, net consists of the following (in thousands): January 31, 2018 January 31, 2017 Servers $ 4,279 $ 4,175 Furniture and fixtures 2,259 2,014 Computer and office equipment 175 309 Purchased software 887 702 Leasehold improvements 8,548 7,235 Construction in process 883 171 Building 54,709 — Total property and equipment 71,740 14,606 Less: accumulated depreciation and amortization (12,183 ) (9,729 ) Property and equipment, net $ 59,557 $ 4,877 |
Acquired Intangible Assets, N25
Acquired Intangible Assets, Net (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Gross carrying amount and accumulated amortization of intangible assets | The gross carrying amount and accumulated amortization of the Company’s intangible assets are as follows (in thousands): January 31, 2018 Gross Carrying Value Accumulated Amortization Net Book Value Developed technology $ 4,300 $ (2,723 ) $ 1,577 Domain name 155 (105 ) 50 Total $ 4,455 $ (2,828 ) $ 1,627 January 31, 2017 Gross Carrying Value Accumulated Amortization Net Book Value Developed technology $ 4,300 $ (1,863 ) $ 2,437 Domain name 155 (81 ) 74 Total $ 4,455 $ (1,944 ) $ 2,511 |
Future amortization expense related to intangible assets | , 2017 and 2016 . As of January 31, 2018 , future amortization expense related to the intangible assets is as follows |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum rental payments for operating leases | Future minimum lease payments under non-cancelable office leases and other non-cancelable agreements as of January 31, 2018 , were as follows (in thousands): Year Ending January 31, Operating Leases Other Obligations 2019 $ 8,420 $ 13,921 2020 6,641 12,222 2021 10,930 11,187 2022 9,658 — 2023 9,630 — Thereafter 62,681 — Total minimum payments $ 107,960 $ 37,330 |
Schedule of other commitments | Future minimum lease payments under non-cancelable office leases and other non-cancelable agreements as of January 31, 2018 , were as follows (in thousands): Year Ending January 31, Operating Leases Other Obligations 2019 $ 8,420 $ 13,921 2020 6,641 12,222 2021 10,930 11,187 2022 9,658 — 2023 9,630 — Thereafter 62,681 — Total minimum payments $ 107,960 $ 37,330 |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock option activity | The following table summarizes stock option and RSU award activity for the 2008 and 2016 Plans (in thousands, except share and per share data and years): Options Outstanding Shares Shares Weighted- Weighted- Aggregate Balance - January 31, 2016 974,433 9,322,281 $ 13.20 8.3 $ 8,459 Authorized 3,000,000 — — Options granted (4,404,228 ) 4,404,228 6.74 Options exercised — (1,534,211 ) 5.43 Early exercised shares repurchased 6,354 — — Options forfeited and expired 1,101,701 (1,101,701 ) 11.09 Balance - January 31, 2017 678,260 11,090,597 6.47 8.2 $ 21,717 Authorized 6,979,900 — — Options granted (3,642,275 ) 3,642,275 10.80 Options exercised — (1,263,722 ) 6.59 Early exercised shares repurchased 34,710 — — Options forfeited and expired 831,715 (831,715 ) 7.73 RSUs granted (245,746 ) Balance - January 31, 2018 4,636,564 12,637,435 7.63 7.7 246,227 Options vested and exercisable - January 31, 2017 4,344,092 6.21 7.3 9,875 Options vested and exercisable - January 31, 2018 5,540,858 $ 6.33 6.6 $ 115,122 Options vested and exercisable - Stock options vested and expected to vest - January 31, 2018 12,637,435 $ 7.63 7.7 $ 246,227 |
Schedule of stock option valuation assumptions | The fair value of stock options granted was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions: Years Ended January 31, 2018 2017 2016 Expected term (in years) 5.85 - 6.20 5.77-6.99 6.08 Expected volatility 41.2% - 45.7% 41.4%-43.7% 43.5 % Risk-free interest rate 1.8% - 2.4% 1.2% - 2.0% 1.5% - 1.9% Dividend yield 0% 0% 0% |
Schedule of ESPP valuation assumptions | The fair value of the purchase rights granted under the 2017 ESPP was estimated on the first day of the offering period using the Black-Scholes option-pricing model with the following assumptions: Year Ended January 31, 2018 Expected term (in years) 0.67 - 0.7 Expected volatility 23% - 24% Risk-free interest rate 1.2% Dividend yield 0% |
Schedule of stock-based compensation expense recognized in consolidated statements of operations | Total stock-based compensation expense recognized in the Company’s consolidated statements of operations is as follows (in thousands): Years Ended January 31, 2018 2017 2016 Cost of revenue—subscription $730 $570 $282 Cost of revenue—services 462 482 272 Sales and marketing 6,364 5,514 3,524 Research and development 5,752 5,755 4,034 General and administrative 7,927 8,683 4,675 Total stock-based compensation expense $ 21,235 $ 21,004 $ 12,787 |
Net Loss per Share Attributab28
Net Loss per Share Attributable to Common Stockholders (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted earnings (loss) per share | The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except share and per share data): Years Ended January 31, 2018 2017 2016 Net loss attributable to common stockholders $ (96,359 ) $ (86,681 ) $ (73,486 ) Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted for Class A and Class B 23,718,391 12,211,711 11,240,696 Net loss per share attributable to common stockholders, basic and diluted $ (4.06 ) $ (7.10 ) $ (6.54 ) |
Schedule of antidilutive securities excluded from computation of earnings per share | The following weighted-average outstanding potentially dilutive common shares were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because the impact of including them would have been antidilutive: Years Ended January 31, 2018 2017 2016 Redeemable convertible preferred stock (as converted) 19,534,014 25,856,309 25,853,450 Redeemable convertible preferred stock warrants (as converted) 22,592 54,604 54,604 Common stock warrants 90,143 122,043 122,043 Stock options to purchase Class B common stock 9,612,572 10,777,310 8,844,392 Stock options to purchase Class A common stock 2,552,397 52,663 — Early exercised stock options 236,675 79,394 29,744 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of loss before provision for income taxes | The components of loss before provision for income taxes were as follows (in thousands): Years Ended January 31, 2018 2017 2016 United States $ (57,903 ) $ (55,878 ) $ (44,218 ) Foreign (37,169 ) (30,084 ) (28,826 ) Total $ (95,072 ) $ (85,962 ) $ (73,044 ) |
Components of the provision for income taxes | The components of the provision for income taxes were as follows (in thousands): Years Ended January 31, 2018 2017 2016 Current: Federal $ — $ — $ — State 88 97 134 Foreign 1,493 626 310 Total 1,581 723 444 Deferred: Federal (96 ) 39 58 State 6 4 8 Foreign (204 ) (47 ) (68 ) Total (294 ) (4 ) (2 ) Provision for income taxes $ 1,287 $ 719 $ 442 |
Schedule of effective income tax rate reconciliation | The items accounting for the difference between income taxes computed at the federal statutory income tax rate of 33.8% and the provision for income taxes consisted of the following (in thousands): Years Ended January 31, 2018 2017 2016 Income tax benefit at statutory rate $ (32,145 ) $ (29,228 ) $ (24,834 ) State taxes, net of federal benefit 564 101 141 Impact of foreign income taxes 5,555 7,053 6,767 Stock based compensation 1,741 1,796 827 Non-deductible expenses 615 531 368 Change in valuation allowance (7,605 ) 19,390 17,197 Research and development credits (1,146 ) (775 ) (894 ) Prior year true ups (144 ) 918 (103 ) Change in tax rate due to the Tax Act 33,110 — — Other 742 933 973 Provision for income taxes $ 1,287 $ 719 $ 442 |
Components of deferred tax assets for federal and state income taxes | Significant components of the Company’s deferred tax assets for federal and state income taxes are as follows as of January 31, 2018, 2017 and 2016, respectively (in thousands): Years Ended January 31, 2018 2017 Deferred tax assets: Net operating loss carryforwards $ 77,434 $ 82,762 Deferred revenue 3,537 1,683 Other liabilities and accruals 6,852 7,863 Depreciable assets 1,583 1,919 Other reserves 339 352 Gross deferred tax assets 89,745 94,579 Valuation allowance (89,336 ) (94,465 ) Total deferred tax assets, net of valuation allowance 409 114 Deferred tax liability: Goodwill (101 ) (108 ) Total deferred tax liability (101 ) (108 ) Net deferred tax assets $ 308 $ 6 |
Summary of activity within unrecognized gross tax benefits | The activity within the Company’s unrecognized gross tax benefits was as follows (in thousands): Years Ended January 31, 2018 2017 2016 Unrecognized tax benefits at beginning of year $ 4,400 $ 3,411 $ 2,229 Decreases in tax positions in prior years (1,494 ) (83 ) — Additions based on tax positions in the current year 1,143 1,072 1,182 Unrecognized tax benefits at end of year $ 4,049 $ 4,400 $ 3,411 |
Segments and Geographic Reven30
Segments and Geographic Revenue (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of total revenue by geographic areas | The following table sets forth the Company’s total revenue by geographic area based on the customers’ location (in thousands): Years Ended January 31, 2018 2017 2016 Americas $ 104,446 $ 69,068 $ 45,231 Europe 43,668 29,139 17,685 Asia Pacific 6,405 3,151 2,355 Total $ 154,519 $ 101,358 $ 65,271 |
Organization and Description 31
Organization and Description of Business - Reverse Stock Split (Details) | 1 Months Ended |
Oct. 31, 2017shares | |
Series A Redeemable Convertible Preferred Stock | |
Class of Stock [Line Items] | |
Convertible preferred stock, shares issued upon conversion | 0.75 |
Series B Redeemable Convertible Preferred Stock | |
Class of Stock [Line Items] | |
Convertible preferred stock, shares issued upon conversion | 0.75 |
Series C Redeemable Convertible Preferred Stock | |
Class of Stock [Line Items] | |
Convertible preferred stock, shares issued upon conversion | 0.75 |
Series D Redeemable Convertible Preferred Stock | |
Class of Stock [Line Items] | |
Convertible preferred stock, shares issued upon conversion | 0.75 |
Series E Redeemable Convertible Preferred Stock | |
Class of Stock [Line Items] | |
Convertible preferred stock, shares issued upon conversion | 0.75 |
Series F Redeemable Convertible Preferred Stock | |
Class of Stock [Line Items] | |
Convertible preferred stock, shares issued upon conversion | 0.5 |
Common Stock | |
Class of Stock [Line Items] | |
Stock split conversion ratio | 0.5 |
Organization and Description 32
Organization and Description of Business - Initial Public Offering (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended |
Oct. 31, 2017 | Jan. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||
Proceeds from the IPO, net of underwriting discounts and commissions | $ 201,600 | |
Underwriting discounts and commissions | 15,500 | |
Deferred offering costs | 3,900 | |
Redeemable convertible preferred stock outstanding (in shares) | 41,233,452 | |
Conversion of redeemable convertible preferred stock to common stock | $ 346,400 | $ 346,428 |
Common Stock | ||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||
Conversion of stock, shares converted (in shares) | 26,952,887 | 26,953,404 |
Class A Common Stock | IPO | ||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||
Number of shares issued (in shares) | 9,200,000 | |
Stock price (in dollars per share) | $ 24 | |
Class A Common Stock | Over-Allotment Option | ||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||
Number of shares issued (in shares) | 1,200,000 | |
Redeemable Preferred Stock | ||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||
Redeemable convertible preferred stock outstanding (in shares) | 41,232,762 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies - Marketable Securities (Details) - USD ($) | 12 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | |
Accounting Policies [Abstract] | ||
Other than temporary impairment losses, investments, available-for-sale securities | $ 0 | $ 0 |
Summary of Significant Accoun34
Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Millions | Jan. 31, 2018 | Jan. 31, 2017 |
Accounting Policies [Abstract] | ||
Restricted cash | $ 0.5 | $ 0.1 |
Summary of Significant Accoun35
Summary of Significant Accounting Policies - Capitalized Software Costs (Details) - USD ($) | 12 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | |
Accounting Policies [Abstract] | ||
Capitalized computer software costs | $ 0 | $ 0 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Schedule of Property, Plant and Equipment Useful Lives (Details) | 12 Months Ended |
Jan. 31, 2018 | |
Computer and office equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 2 years |
Computer and office equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Purchased software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 2 years |
Purchased software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Servers | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Long-Lived Assets, Including Goodwill and Other Acquired Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | |
Accounting Policies [Abstract] | ||
Goodwill impairment | $ 0 | $ 0 |
Minimum | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted average useful life | 2 years 9 months 18 days | |
Maximum | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted average useful life | 3 years 2 months 12 days |
Summary of Significant Accoun38
Summary of Significant Accounting Policies - Deferred Commissions and Commissions Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | |
Accounting Policies [Abstract] | ||
Capitalized commission costs | $ 15.5 | $ 14.2 |
Short-term deferred commissions | 11.8 | 7.5 |
Deferred commissions | $ 6.8 | $ 5.6 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies - Advertising (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Accounting Policies [Abstract] | |||
Advertising costs | $ 3.4 | $ 2.4 | $ 1.2 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies - Segment Information (Details) | 12 Months Ended |
Jan. 31, 2018segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 1 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies - Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Related Party Transactions [Abstract] | |||
Related party transactions | $ 0 | $ 0 | $ 0 |
Due to (from) related parties | $ 0 | $ 0 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements (Details) - Accounting Standards Update 2016-09 $ in Thousands | Jan. 31, 2016USD ($) |
Accumulated Deficit | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect of accounting change | $ (1,451) |
Additional Paid-In Capital | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect of accounting change | $ 1,451 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Jan. 31, 2018 | Jan. 31, 2017 |
Financial Liability: | ||
Redeemable convertible preferred stock warrant liability | $ 0 | $ 1,272 |
Recurring | ||
Short-term investments: | ||
Total financial assets | 262,990 | 102,299 |
Financial Liability: | ||
Redeemable convertible preferred stock warrant liability | 1,272 | |
Total financial liability | 1,272 | |
Recurring | Level 1 | ||
Short-term investments: | ||
Total financial assets | 262,990 | 102,299 |
Financial Liability: | ||
Redeemable convertible preferred stock warrant liability | 0 | |
Total financial liability | 0 | |
Recurring | Level 2 | ||
Short-term investments: | ||
Total financial assets | 0 | 0 |
Financial Liability: | ||
Redeemable convertible preferred stock warrant liability | 0 | |
Total financial liability | 0 | |
Recurring | Level 3 | ||
Short-term investments: | ||
Total financial assets | 0 | 0 |
Financial Liability: | ||
Redeemable convertible preferred stock warrant liability | 1,272 | |
Total financial liability | 1,272 | |
U.S. government treasury securities | Recurring | ||
Short-term investments: | ||
Short-term investments: | 217,072 | 47,195 |
U.S. government treasury securities | Recurring | Level 1 | ||
Short-term investments: | ||
Short-term investments: | 217,072 | 47,195 |
U.S. government treasury securities | Recurring | Level 2 | ||
Short-term investments: | ||
Short-term investments: | 0 | 0 |
U.S. government treasury securities | Recurring | Level 3 | ||
Short-term investments: | ||
Short-term investments: | 0 | 0 |
Money market funds | Recurring | ||
Cash equivalents: | ||
Cash equivalents: | 45,918 | 35,104 |
Money market funds | Recurring | Level 1 | ||
Cash equivalents: | ||
Cash equivalents: | 45,918 | 35,104 |
Money market funds | Recurring | Level 2 | ||
Cash equivalents: | ||
Cash equivalents: | 0 | 0 |
Money market funds | Recurring | Level 3 | ||
Cash equivalents: | ||
Cash equivalents: | $ 0 | 0 |
U.S. government treasury securities | Recurring | ||
Cash equivalents: | ||
Cash equivalents: | 20,000 | |
U.S. government treasury securities | Recurring | Level 1 | ||
Cash equivalents: | ||
Cash equivalents: | 20,000 | |
U.S. government treasury securities | Recurring | Level 2 | ||
Cash equivalents: | ||
Cash equivalents: | 0 | |
U.S. government treasury securities | Recurring | Level 3 | ||
Cash equivalents: | ||
Cash equivalents: | $ 0 |
Fair Value Measurements - Sch44
Fair Value Measurements - Schedule of Reconciliation of Redeemable Convertible Preferred Stock Warrant Liability (Details) - Redeemable Convertible Preferred Stock Warrant Liability $ in Thousands | 12 Months Ended |
Jan. 31, 2018USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Fair value, beginning balance | $ 1,272 |
Issuance of redeemable convertible preferred stock warrants | 0 |
Conversion of redeemable convertible preferred stock warrant liability into redeemable convertible preferred stock | (1,171) |
Change in fair value of redeemable convertible preferred stock warrant liability | (101) |
Fair value, ending balance | $ 0 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule (Details) - USD ($) $ in Thousands | Jan. 31, 2018 | Jan. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 71,740 | $ 14,606 |
Less: accumulated depreciation and amortization | (12,183) | (9,729) |
Property and equipment, net | 59,557 | 4,877 |
Servers | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 4,279 | 4,175 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 2,259 | 2,014 |
Computer and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 175 | 309 |
Purchased software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 887 | 702 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 8,548 | 7,235 |
Construction in process | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 883 | 171 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 54,709 | $ 0 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2017ft² | Jan. 31, 2018USD ($) | Jan. 31, 2017USD ($) | |
Property, Plant and Equipment [Abstract] | |||
Rentable area (in sq ft) | ft² | 106,230 | ||
Depreciation and amortization, property, plant and equipment | $ | $ 2.8 | $ 2.9 |
Acquired Intangible Assets, N47
Acquired Intangible Assets, Net - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Jan. 31, 2018 | Jan. 31, 2017 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 4,455 | $ 4,455 |
Accumulated Amortization | (2,828) | (1,944) |
Net Book Value | 1,627 | 2,511 |
Developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 4,300 | 4,300 |
Accumulated Amortization | (2,723) | (1,863) |
Net Book Value | 1,577 | 2,437 |
Domain name | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 155 | 155 |
Accumulated Amortization | (105) | (81) |
Net Book Value | $ 50 | $ 74 |
Acquired Intangible Assets, N48
Acquired Intangible Assets, Net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 0.9 | $ 0.9 | $ 0.9 |
Developed technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 1 year 9 months 18 days | ||
Domain name | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 2 years 2 months 12 days |
Acquired Intangible Assets, N49
Acquired Intangible Assets, Net - Future Amortization Expense (Details) - USD ($) $ in Thousands | Jan. 31, 2018 | Jan. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,019 | $ 883 | |
2,020 | 740 | |
2,021 | 4 | |
Net Book Value | $ 1,627 | $ 2,511 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Operating Lease and Other Non-Cancellable Agreement Payments (Details) $ in Thousands | Jan. 31, 2018USD ($) |
Operating Leases | |
2,019 | $ 8,420 |
2,020 | 6,641 |
2,021 | 10,930 |
2,022 | 9,658 |
2,023 | 9,630 |
Thereafter | 62,681 |
Total minimum payments | 107,960 |
Other Obligations | |
2,019 | 13,921 |
2,020 | 12,222 |
2,021 | 11,187 |
2,022 | 0 |
2,023 | 0 |
Thereafter | 0 |
Total minimum payments | $ 37,330 |
Commitments and Contingencies51
Commitments and Contingencies - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2017USD ($)ft² | Nov. 30, 2017USD ($) | Jan. 31, 2018USD ($) | Jan. 31, 2017USD ($) | Jan. 31, 2016USD ($) | Oct. 31, 2017USD ($) | Aug. 31, 2016USD ($) | Jul. 31, 2016USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Operating leases, rent expense | $ 9,100,000 | $ 7,000,000 | $ 5,300,000 | |||||
Loss Contingencies [Line Items] | ||||||||
Rentable area (in sq ft) | ft² | 106,230 | |||||||
Term of lease | 12 years | |||||||
Base rent payments over term | $ 87,900,000 | |||||||
Period payments begin after delivery of premises | 18 months | |||||||
Other commitment | 37,330,000 | |||||||
Accrual for contingencies | $ 0 | 0 | ||||||
Enterprise Partnership Arrangement | ||||||||
Loss Contingencies [Line Items] | ||||||||
Other commitment, term | 3 years | |||||||
Non-Cancelable Commitment | ||||||||
Loss Contingencies [Line Items] | ||||||||
Other commitment | $ 36,000,000 | |||||||
Capacity Commitments | ||||||||
Loss Contingencies [Line Items] | ||||||||
Other commitment | $ 6,700,000 | |||||||
Operating Lease in New York | ||||||||
Loss Contingencies [Line Items] | ||||||||
Letters of credit outstanding | $ 500,000 | $ 1,100,000 | ||||||
Operating Lease in Texas | ||||||||
Loss Contingencies [Line Items] | ||||||||
Letters of credit outstanding | $ 400,000 | |||||||
Operating Lease in Australia | ||||||||
Loss Contingencies [Line Items] | ||||||||
Letters of credit outstanding | $ 200,000 |
Stockholders_ Equity (Deficit)
Stockholders’ Equity (Deficit) (Details) | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2017shares | Jan. 31, 2018vote$ / sharesshares | Jan. 31, 2017$ / sharesshares | Jan. 31, 2016shares | Jan. 31, 2015shares | |
Class A Common Stock | |||||
Class of Stock [Line Items] | |||||
Number of votes per share | vote | 1 | ||||
Common stock authorized (in shares) | 1,000,000,000 | 162,500,000 | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |||
Common stock issued (in shares) | 13,303,028 | 0 | |||
Common stock outstanding (in shares) | 13,303,028 | 0 | |||
Class B Common Stock | |||||
Class of Stock [Line Items] | |||||
Number of votes per share | vote | 10 | ||||
Period of automatic conversion after death of founder | 9 months | ||||
Percent of outstanding stock | 10.00% | ||||
Common stock authorized (in shares) | 100,000,000 | 113,000,000 | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |||
Common stock issued (in shares) | 37,371,914 | 13,192,992 | |||
Common stock outstanding (in shares) | 37,272,543 | 13,093,621 | |||
Common Stock | |||||
Class of Stock [Line Items] | |||||
Conversion of stock, shares converted (in shares) | 26,952,887 | 26,953,404 | |||
Common stock outstanding (in shares) | 50,575,571 | 13,093,621 | 11,565,764 | 11,001,782 | |
Common Stock | Class B Common Stock | |||||
Class of Stock [Line Items] | |||||
Conversion of stock, shares converted (in shares) | 53,562 |
Warrants (Details)
Warrants (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2017 | Jan. 31, 2018 | Jan. 31, 2017 | Apr. 30, 2013 | |
Class of Warrant or Right [Line Items] | ||||
Exercise of preferred stock warrants (in shares) | 85,170 | |||
Redeemable convertible preferred stock | $ 1,171 | $ 34,942 | ||
Warrants outstanding (in shares) | 0 | |||
Series E Redeemable Convertible Preferred Stock | ||||
Class of Warrant or Right [Line Items] | ||||
Exercise price (in dollars per share) | $ 0.01 | |||
Series F Redeemable Convertible Preferred Stock | ||||
Class of Warrant or Right [Line Items] | ||||
Exercise price (in dollars per share) | $ 0.01 | |||
Class B Common Stock | Financial Institution 1 | ||||
Class of Warrant or Right [Line Items] | ||||
Exercise price (in dollars per share) | $ 5.72 | |||
Number of shares convertible from warrant exercise (in shares) | 116,258 | |||
Class B Common Stock | Financial Institution 2 | ||||
Class of Warrant or Right [Line Items] | ||||
Exercise price (in dollars per share) | $ 5.72 | |||
Number of shares convertible from warrant exercise (in shares) | 5,785 | |||
Common Stock | ||||
Class of Warrant or Right [Line Items] | ||||
Conversion of redeemable convertible preferred stock to common stock (in shares) | 26,952,887 | 26,953,404 | ||
Exercise of common stock warrants (in shares) | 99,534 | |||
Series E and Series F Redeemable Convertible Preferred Stock | ||||
Class of Warrant or Right [Line Items] | ||||
Redeemable convertible preferred stock | $ 1,200 | |||
Series E Redeemable Convertible Preferred Stock | ||||
Class of Warrant or Right [Line Items] | ||||
Exercise of preferred stock warrants (in shares) | 45,301 | |||
Series F Redeemable Convertible Preferred Stock | ||||
Class of Warrant or Right [Line Items] | ||||
Exercise of preferred stock warrants (in shares) | 41,258 | |||
Class B Common Stock | Common Stock | ||||
Class of Warrant or Right [Line Items] | ||||
Conversion of redeemable convertible preferred stock to common stock (in shares) | 53,562 | |||
Exercise of common stock warrants (in shares) | 99,534 |
Equity Incentive Plans - 2008 a
Equity Incentive Plans - 2008 and 2016 Stock Plan (Details) | 12 Months Ended |
Jan. 31, 2018 | |
Employee Stock Option | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expiration period | 10 years |
Award vesting period | 4 years |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 4 years |
One Year Anniversary | Employee Stock Option | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting rights percentage | 25.00% |
One Year Anniversary | Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting rights percentage | 25.00% |
13 to 36 Months | Employee Stock Option | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting rights percentage | 75.00% |
13 to 36 Months | Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting rights percentage | 75.00% |
Over 10% Stockholder | Employee Stock Option | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expiration period | 5 years |
Minimum | Employee Stock Option | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Purchase price of common stock, as a percent | 100.00% |
Minimum | Over 10% Stockholder | Employee Stock Option | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Purchase price of common stock, as a percent | 110.00% |
Equity Incentive Plans - Schedu
Equity Incentive Plans - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Shares Available for Grant | |||
Balance - beginning of period (in shares) | 678,260 | 974,433 | |
Authorized (in shares) | 6,979,900 | 3,000,000 | |
Options granted (in shares) | (3,642,275) | (4,404,228) | |
Early exercised shares repurchased (in shares) | 34,710 | 6,354 | |
Options forfeited and expired (in shares) | (831,715) | (1,101,701) | |
Balance - end of period (in shares) | 4,636,564 | 678,260 | 974,433 |
Shares | |||
Balance - beginning of period (in shares) | 11,090,597 | 9,322,281 | |
Options granted (in shares) | (3,642,275) | (4,404,228) | |
Options exercised (in shares) | (1,263,722) | (1,534,211) | |
Options forfeited and expired (in shares) | (831,715) | (1,101,701) | |
Balance - end of period (in shares) | 12,637,435 | 11,090,597 | 9,322,281 |
Options vested and exercisable (in shares) | 5,540,858 | 4,344,092 | |
Options vested and exercisable - Stock options vested and expected to vest (in shares) | 12,637,435 | ||
Weighted- Average Exercise Price Per Share | |||
Balance - beginning of period (in dollars per share) | $ 6.47 | $ 13.20 | |
Options granted (in dollars per share) | 10.80 | 6.74 | |
Options exercised (in dollars per share) | 6.59 | 5.43 | |
Options forfeited and expired (in dollars per share) | 7.73 | 11.09 | |
Balance - end of period (in dollars per share) | 7.63 | 6.47 | $ 13.20 |
Options vested and exercisable (in dollars per share) | 6.33 | $ 6.21 | |
Options vested and exercisable - Stock options vested and expected to vest (in dollars per share) | $ 7.63 | ||
Weighted- Average Remaining Contractual Term (In Years) | |||
Balance | 7 years 8 months 12 days | 8 years 2 months 12 days | 8 years 3 months 18 days |
Options vested and exercisable | 6 years 7 months 6 days | 7 years 3 months 18 days | |
Stock options vested and expected to vest | 7 years 8 months 12 days | ||
Aggregate Intrinsic Value | |||
Balance | $ 246,227 | $ 21,717 | $ 8,459 |
Options vested and exercisable | 115,122 | $ 9,875 | |
Stock options vested and expected to vest, intrinsic value | $ 246,227 | ||
Restricted Stock Units (RSUs) | |||
Shares Available for Grant | |||
RSUs granted (in shares) | (245,746) | 0 |
Equity Incentive Plans - Stock
Equity Incentive Plans - Stock Options and Restricted Stock Units, Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value (in dollars per share) | $ 4.76 | $ 2.91 | $ 7.53 |
Intrinsic value | $ 4.1 | $ 2.9 | $ 6.5 |
Stock options vested, fair value | 13.5 | $ 15.5 | $ 11.6 |
Share-based compensation cost not yet recognized | $ 37.4 | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards granted (in shares) | 245,746 | 0 | |
Grant date fair value | $ 6.4 | ||
Awards vested (in shares) | 0 | ||
Awards forfeited/canceled (in shares) | 0 | ||
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, period for recognition | 2 years 6 months 15 days |
Equity Incentive Plans - 2016 C
Equity Incentive Plans - 2016 China Stock Appreciation Rights Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 21,235 | $ 21,004 | $ 12,787 |
Stock Appreciation Rights (SARs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Awards granted (in shares) | 8,000 | 21,500 | |
Exercise price of awards granted (in dollars per share) | $ 6.78 | ||
Awards vested (in shares) | 9,302 | ||
Stock-based compensation expense | $ 200 | ||
Stock Appreciation Rights (SARs) | One Year Anniversary | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights percentage | 25.00% | ||
Stock Appreciation Rights (SARs) | 25 to 36 Months | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights percentage | 75.00% |
Equity Incentive Plans - 2017 E
Equity Incentive Plans - 2017 Employee Stock Purchase Plan (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2017 | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 21,235 | $ 21,004 | $ 12,787 | |
Class A Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares issued (in shares) | 0 | |||
Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum employee contribution rate | 15.00% | |||
Duration of separate offering periods | 6 months | |||
Purchase price of common stock, as a percent | 85.00% | |||
Stock-based compensation expense | $ 700 | |||
Employee Stock Purchase Plan | Class A Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Reserved for future issuance (in shares) | 995,000 |
Equity Incentive Plans - Stoc59
Equity Incentive Plans - Stock Option Repricing (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | 22 Months Ended | |||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2018 | Apr. 13, 2016 | Jan. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options outstanding (in shares) | 12,637,435 | 11,090,597 | 12,637,435 | 9,322,281 | |
Stock Option Repricing | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average exercise price (in dollars per share) | $ 6.5 | ||||
Options outstanding (in shares) | 6,898,736 | ||||
Compensation cost | $ 2.4 | $ 5.6 | $ 10.7 | ||
Stock Option Repricing | Executive Officer | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options outstanding (in shares) | 3,303,786 | ||||
Stock Option Repricing | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average exercise price (in dollars per share) | $ 6.5 |
Equity Incentive Plans - Early
Equity Incentive Plans - Early Exercise of Stock Options (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Issuance of common stock (in shares) | 1,263,722 | 1,534,211 |
Common stock subject to repurchase (in shares) | 256,640 | 118,059 |
Fair value of shares subject to repurchase | $ 2 | $ 0.8 |
Early Exercised Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Issuance of common stock (in shares) | 363,894 | 240,678 |
Stock repurchased (in shares) | 34,710 | 6,354 |
Equity Incentive Plans - Sche61
Equity Incentive Plans - Schedule of Stock Option Valuation Assumptions (Details) - Employee Stock Option | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 years 29 days | ||
Expected volatility | 43.50% | ||
Expected volatility, minimum | 41.20% | 41.40% | |
Expected volatility, maximum | 45.70% | 43.70% | |
Risk-free interest rate, minimum (as a percent) | 1.80% | 1.20% | 1.50% |
Risk-free interest rate, maximum (as a percent) | 2.40% | 2.00% | 1.90% |
Dividend yield (as a percent) | 0.00% | 0.00% | 0.00% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 5 years 10 months 6 days | 5 years 9 months 7 days | |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 years 2 months 12 days | 6 years 11 months 27 days |
Equity Incentive Plans - Sche62
Equity Incentive Plans - Schedule of ESPP Valuation Assumptions (Details) - Employee Stock Purchase Plan | 3 Months Ended | 12 Months Ended |
Jan. 31, 2018 | Jan. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility, minimum | 23.00% | |
Expected volatility, maximum | 24.00% | |
Risk-free interest rate (as a percent) | 1.20% | |
Dividend yield (as a percent) | 0.00% | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 8 months 1 day | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 8 months 12 days |
Equity Incentive Plans - Stock-
Equity Incentive Plans - Stock-based Compensation Expense Recognized in Statement of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 21,235 | $ 21,004 | $ 12,787 |
Cost of revenue—subscription | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 730 | 570 | 282 |
Cost of revenue—services | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 462 | 482 | 272 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 6,364 | 5,514 | 3,524 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 5,752 | 5,755 | 4,034 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 7,927 | $ 8,683 | $ 4,675 |
Net Loss per Share Attributab64
Net Loss per Share Attributable to Common Stockholders - Schedule of Basic and Diluted Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Net loss attributable to common stockholders | $ (96,359) | $ (86,681) | $ (73,486) |
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted for Class A and Class B (in shares) | 23,718,391 | 12,211,711 | 11,240,696 |
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share) | $ (4.06) | $ (7.10) | $ (6.54) |
Net Loss per Share Attributab65
Net Loss per Share Attributable to Common Stockholders - Schedule of Antidilutive Securities Excluded from the Computation of Diluted Net loss per share (Details) - shares | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Redeemable convertible preferred stock (as converted) | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 19,534,014 | 25,856,309 | 25,853,450 |
Redeemable convertible preferred stock warrants (as converted) | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 22,592 | 54,604 | 54,604 |
Common stock warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 90,143 | 122,043 | 122,043 |
Stock options to purchase common stock | Class B Common Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 9,612,572 | 10,777,310 | 8,844,392 |
Stock options to purchase common stock | Class A Common Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2,552,397 | 52,663 | 0 |
Early exercised stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 236,675 | 79,394 | 29,744 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Loss Before Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (57,903) | $ (55,878) | $ (44,218) |
Foreign | (37,169) | (30,084) | (28,826) |
Loss before provision for income taxes | $ (95,072) | $ (85,962) | $ (73,044) |
Income Taxes - Schedule of Co67
Income Taxes - Schedule of Components of Provision for Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Current: | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 88 | 97 | 134 |
Foreign | 1,493 | 626 | 310 |
Total | 1,581 | 723 | 444 |
Deferred: | |||
Federal | (96) | 39 | 58 |
State | 6 | 4 | 8 |
Foreign | (204) | (47) | (68) |
Total | (294) | (4) | (2) |
Provision for income taxes | $ 1,287 | $ 719 | $ 442 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Income tax benefit at statutory rate | $ (32,145) | $ (29,228) | $ (24,834) |
State taxes, net of federal benefit | 564 | 101 | 141 |
Impact of foreign income taxes | 5,555 | 7,053 | 6,767 |
Stock based compensation | 1,741 | 1,796 | 827 |
Non-deductible expenses | 615 | 531 | 368 |
Change in valuation allowance | (7,605) | 19,390 | 17,197 |
Research and development credits | (1,146) | (775) | (894) |
Prior year true ups | (144) | 918 | (103) |
Change in tax rate due to the Tax Act | 33,110 | 0 | 0 |
Other | 742 | 933 | 973 |
Provision for income taxes | $ 1,287 | $ 719 | $ 442 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Federal tax percentage rate | 33.80% | |
Provisional remeasurement of deferred tax assets | $ 33,100,000 | |
Provisional decrease to valuation allowance | 33,100,000 | |
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance | 89,336,000 | $ 94,465,000 |
Undistributed earnings of foreign subsidiaries | $ 800,000 | |
Significant change in unrecognized tax benefits within the next twelve months | 0 | |
Domestic Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | 209,500,000 | |
State and Local Jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | 166,500,000 | |
Foreign Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | $ 182,300,000 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2018 | Jan. 31, 2017 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 77,434 | $ 82,762 |
Deferred revenue | 3,537 | 1,683 |
Other liabilities and accruals | 6,852 | 7,863 |
Depreciable assets | 1,583 | 1,919 |
Other reserves | 339 | 352 |
Gross deferred tax assets | 89,745 | 94,579 |
Valuation allowance | (89,336) | (94,465) |
Total deferred tax assets, net of valuation allowance | 409 | 114 |
Deferred tax liability: | ||
Goodwill | (101) | (108) |
Total deferred tax liability | (101) | (108) |
Net deferred tax assets | $ 308 | $ 6 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits at beginning of year | $ 4,400 | $ 3,411 | $ 2,229 |
Decreases in tax positions in prior years | (1,494) | (83) | 0 |
Additions based on tax positions in the current year | 1,143 | 1,072 | 1,182 |
Unrecognized tax benefits at end of year | $ 4,049 | $ 4,400 | $ 3,411 |
Segments and Geographic Reven72
Segments and Geographic Revenue - Additional Information (Details) - segment | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Segment Reporting [Abstract] | |||
Number of operating segments | 1 | ||
Geographic Concentration Risk | Revenue, Net | United States | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 64.00% | 65.00% | 69.00% |
Geographic Concentration Risk | Revenue, Net | United Kingdom | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 11.00% | 11.00% |
Segments and Geographic Reven73
Segments and Geographic Revenue - Schedule of total revenue by geographic areas (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | $ 154,519 | $ 101,358 | $ 65,271 |
Americas | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | 104,446 | 69,068 | 45,231 |
Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | 43,668 | 29,139 | 17,685 |
Asia Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | $ 6,405 | $ 3,151 | $ 2,355 |
Uncategorized Items - mdb-20180
Label | Element | Value |
Restricted Cash, Current | us-gaap_RestrictedCashCurrent | $ 108,000 |
Restricted Cash, Current | us-gaap_RestrictedCashCurrent | 107,000 |
Restricted Cash, Current | us-gaap_RestrictedCashCurrent | $ 525,000 |