Document and Entity Information
Document and Entity Information Document - USD ($) $ in Billions | 12 Months Ended | ||
Jan. 31, 2020 | Mar. 23, 2020 | Jul. 31, 2019 | |
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-38240 | ||
Entity Registrant Name | MONGODB, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 26-1463205 | ||
Entity Address, Address Line One | 1633 Broadway | ||
Entity Address, Address Line Two | 38th Floor | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10019 | ||
City Area Code | 646 | ||
Local Phone Number | 727-4092 | ||
Title of 12(b) Security | Class A Common Stock, par value $0.001 per share | ||
Trading Symbol | MDB | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 6.7 | ||
Entity Central Index Key | 0001441816 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --01-31 | ||
Class A Common Stock | |||
Entity Common Stock, Shares Outstanding | 48,962,130 | ||
Class B Common Stock | |||
Entity Common Stock, Shares Outstanding | 8,604,123 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 706,192 | $ 147,831 |
Short-term investments | 280,326 | 318,139 |
Accounts receivable, net of allowance for doubtful accounts of $2,515 and $1,539 as of January 31, 2020 and 2019, respectively | 85,554 | 72,808 |
Deferred commissions | 24,219 | 15,878 |
Prepaid expenses and other current assets | 16,905 | 11,580 |
Total current assets | 1,113,196 | 566,236 |
Property and equipment, net | 58,316 | 73,664 |
Operating lease right-of-use assets | 11,147 | 0 |
Goodwill | 55,830 | 41,878 |
Acquired intangible assets, net | 34,779 | 15,894 |
Deferred tax assets | 615 | 1,193 |
Other assets | 54,684 | 34,611 |
Total assets | 1,328,567 | 733,476 |
Current liabilities: | ||
Accounts payable | 2,849 | 2,153 |
Accrued compensation and benefits | 41,427 | 25,982 |
Operating lease liabilities | 3,750 | 0 |
Other accrued liabilities | 26,860 | 14,169 |
Deferred revenue | 167,498 | 122,333 |
Total current liabilities | 242,384 | 164,637 |
Deferred rent, non-current | 0 | 2,567 |
Deferred tax liability, non-current | 821 | 106 |
Operating lease liabilities, non-current | 8,113 | 0 |
Deferred revenue, non-current | 23,281 | 15,343 |
Convertible senior notes, net | 911,075 | 216,858 |
Other liabilities, non-current | 60,035 | 69,399 |
Total liabilities | 1,245,709 | 468,910 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity: | ||
Additional paid-in capital | 752,127 | 754,612 |
Treasury stock, 99,371 shares (repurchased at an average of $13.27 per share) as of January 31, 2020 and 2019 | (1,319) | (1,319) |
Accumulated other comprehensive income (loss) | 225 | (174) |
Accumulated deficit | (668,232) | (488,607) |
Total stockholders’ equity | 82,858 | 264,566 |
Total liabilities and stockholders’ equity | 1,328,567 | 733,476 |
Class A Common Stock | ||
Stockholders’ equity: | ||
Common stock | 48 | 36 |
Class B Common Stock | ||
Stockholders’ equity: | ||
Common stock | $ 9 | $ 18 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Current assets: | ||
Allowance for doubtful accounts | $ 2,515 | $ 1,539 |
Stockholders’ equity: | ||
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: | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock issued (in shares) | 48,512,090 | 13,303,028 |
Common stock outstanding (in shares) | 48,512,090 | 13,303,028 |
Class B Common Stock | ||
Stockholders’ equity: | ||
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) | 8,969,824 | 37,371,914 |
Common stock outstanding (in shares) | 8,870,453 | 37,272,543 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Revenue: | |||
Total revenue | $ 421,720 | $ 267,016 | $ 166,028 |
Cost of revenue: | |||
Total cost of revenue | 125,356 | 73,568 | 42,859 |
Gross profit | 296,364 | 193,448 | 123,169 |
Operating expenses: | |||
Sales and marketing | 223,893 | 148,296 | 109,073 |
Research and development | 149,033 | 89,854 | 62,202 |
General and administrative | 71,304 | 53,063 | 36,775 |
Total operating expenses | 444,230 | 291,213 | 208,050 |
Loss from operations | (147,866) | (97,765) | (84,881) |
Other income (expense): | |||
Interest income | 8,556 | 7,163 | 1,308 |
Interest expense | (20,983) | (10,290) | (8) |
Other income (expense), net | (15,885) | (1,437) | 895 |
Loss before provision for (benefit from) income taxes | (176,178) | (102,329) | (82,686) |
Provision for (benefit from) income taxes | (656) | (3,318) | 1,287 |
Net loss | $ (175,522) | $ (99,011) | $ (83,973) |
Net loss per share, basic and diluted - (in dollars per share) | $ (3.14) | $ (1.90) | $ (3.54) |
Weighted-average shares used to compute net loss per share, basic and diluted (in shares) | 55,939,032 | 52,034,596 | 23,718,391 |
Subscription | |||
Revenue: | |||
Total revenue | $ 399,826 | $ 248,391 | $ 151,853 |
Cost of revenue: | |||
Total cost of revenue | 101,691 | 56,255 | 30,766 |
Services | |||
Revenue: | |||
Total revenue | 21,894 | 18,625 | 14,175 |
Cost of revenue: | |||
Total cost of revenue | $ 23,665 | $ 17,313 | $ 12,093 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (175,522) | $ (99,011) | $ (83,973) |
Other comprehensive income (loss), net of tax: | |||
Unrealized gain (loss) on available-for-sale securities | 91 | 94 | (88) |
Foreign currency translation adjustment | 308 | (109) | 293 |
Other comprehensive income (loss) | 399 | (15) | 205 |
Total comprehensive loss | $ (175,123) | $ (99,026) | $ (83,768) |
CONSOLIDATED STATEMENT OF REDEE
CONSOLIDATED STATEMENT OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands | Total | Redeemable Convertible Preferred Stock | Class A and Class B Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Accumulated Deficit |
Beginning Balance, Redeemable Convertible Preferred Stock (in shares) at Jan. 31, 2017 | 41,148,282 | ||||||
Beginning Balance, Redeemable Convertible Preferred Stock at Jan. 31, 2017 | $ 345,257 | ||||||
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) | (26,953,404) | |||||
Conversion of redeemable convertible preferred stock to common stock | $ (346,428) | $ (346,428) | $ (27) | $ (346,401) | |||
Ending Balance, Redeemable Convertible Preferred Stock (in shares) at Jan. 31, 2018 | 0 | ||||||
Ending Balance, Redeemable Convertible Preferred Stock at Jan. 31, 2018 | $ 0 | ||||||
Common stock, beginning balance (in shares) at Jan. 31, 2017 | 13,093,621 | ||||||
Beginning balance at Jan. 31, 2017 | (244,736) | $ 13 | 62,557 | $ (1,319) | $ (364) | $ (305,623) | |
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 | ||||||
Stock option exercises | 5,597 | $ 1 | 5,596 | ||||
Repurchase of early exercised options (in shares) | (34,710) | ||||||
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 (loss) on available-for-sale securities | (88) | (88) | |||||
Foreign currency translation adjustment | 293 | 293 | |||||
Net loss | (83,973) | (83,973) | |||||
Common stock, ending balance (in shares) at Jan. 31, 2018 | 50,575,571 | ||||||
Ending balance at Jan. 31, 2018 | $ 247,657 | $ 51 | 638,680 | (1,319) | (159) | (389,596) | |
Ending Balance, Redeemable Convertible Preferred Stock (in shares) at Jan. 31, 2019 | 0 | ||||||
Ending Balance, Redeemable Convertible Preferred Stock at Jan. 31, 2019 | $ 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock option exercises (in shares) | 3,144,202 | 3,144,202 | |||||
Stock option exercises | $ 22,200 | $ 3 | 22,197 | ||||
Repurchase of early exercised options (in shares) | (35,668) | ||||||
Vesting of early exercised stock options | 1,204 | 1,204 | |||||
Stock-based compensation | 37,403 | 37,403 | |||||
Unrealized gain (loss) on available-for-sale securities | 94 | 94 | |||||
Foreign currency translation adjustment | (109) | (109) | |||||
Vesting of restricted stock units (in shares) | 263,129 | ||||||
Issuance of common stock under the Employee Stock Purchase Plan (in shares) | 374,576 | ||||||
Issuance of common stock under the Employee Stock Purchase Plan | 10,531 | 10,531 | |||||
Equity component of the 0.75% convertible senior notes due 2024 | 81,683 | 81,683 | |||||
Purchase of capped calls | (37,086) | (37,086) | |||||
Net loss | (99,011) | (99,011) | |||||
Common stock, ending balance (in shares) at Jan. 31, 2019 | 54,321,810 | ||||||
Ending balance at Jan. 31, 2019 | $ 264,566 | $ 54 | 754,612 | (1,319) | (174) | (488,607) | |
Ending Balance, Redeemable Convertible Preferred Stock (in shares) at Jan. 31, 2020 | 0 | ||||||
Ending Balance, Redeemable Convertible Preferred Stock at Jan. 31, 2020 | $ 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock option exercises (in shares) | 2,163,361 | 2,163,361 | |||||
Stock option exercises | $ 16,777 | $ 3 | 16,774 | ||||
Repurchase of early exercised options (in shares) | (5,677) | ||||||
Vesting of early exercised stock options | 296 | 296 | |||||
Stock-based compensation | 75,776 | 75,776 | |||||
Unrealized gain (loss) on available-for-sale securities | 91 | 91 | |||||
Foreign currency translation adjustment | 308 | 308 | |||||
Vesting of restricted stock units (in shares) | 748,061 | ||||||
Issuance of common stock under the Employee Stock Purchase Plan (in shares) | 154,988 | ||||||
Issuance of common stock under the Employee Stock Purchase Plan | 13,420 | 13,420 | |||||
Equity component of the 0.75% convertible senior notes due 2024 | 288,998 | 288,998 | |||||
Purchase of capped calls | (93,820) | (93,820) | |||||
Impact from 2024 Notes Partial Repurchase | (303,929) | (303,929) | |||||
Net loss | (175,522) | (175,522) | |||||
Common stock, ending balance (in shares) at Jan. 31, 2020 | 57,382,543 | ||||||
Ending balance at Jan. 31, 2020 | 82,858 | $ 57 | $ 752,127 | $ (1,319) | $ 225 | (668,232) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of accounting change | $ (4,103) | $ (4,103) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Cash flows from operating activities | |||
Net loss | $ (175,522) | $ (99,011) | $ (83,973) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 12,783 | 5,792 | 3,703 |
Stock-based compensation | 75,776 | 37,403 | 21,235 |
Amortization of debt discount and issuance costs | 14,847 | 7,399 | 0 |
Amortization of finance right-of-use assets | 3,976 | 0 | 0 |
Amortization of operating right-of-use assets | 3,015 | 0 | 0 |
Non-cash interest on finance lease liabilities | 1,823 | 1,570 | 0 |
Deferred income taxes | (3,292) | (4,960) | (302) |
Accretion of discount on short-term investments | (4,060) | (3,875) | (152) |
Change in fair value of warrant liability | 0 | 0 | (101) |
Loss on early extinguishment of debt | 14,522 | 0 | 0 |
Change in operating assets and liabilities, net of the impact from the acquisition: | |||
Accounts receivable, net | (12,692) | (19,445) | (16,095) |
Prepaid expenses and other current assets | (3,794) | (1,487) | (2,436) |
Deferred commissions | (28,362) | (16,134) | (6,422) |
Other long-term assets | (53) | (214) | (687) |
Accounts payable | 513 | (913) | (371) |
Deferred rent | 0 | 1,642 | (133) |
Accrued liabilities | 20,439 | 13,564 | 8,115 |
Operating lease liabilities | (3,291) | 0 | 0 |
Deferred revenue | 53,054 | 36,680 | 32,738 |
Other liabilities, non-current | 778 | 0 | 0 |
Net cash used in operating activities | (29,540) | (41,989) | (44,881) |
Cash flows from investing activities | |||
Purchases of property and equipment | (3,564) | (6,848) | (2,135) |
Acquisition, net of cash acquired | (38,629) | (55,517) | 0 |
Proceeds from maturities of marketable securities | 470,000 | 450,000 | 82,230 |
Purchases of marketable securities | (429,452) | (547,914) | (252,382) |
Net cash used in investing activities | (1,645) | (160,279) | (172,287) |
Cash flows from financing activities | |||
Proceeds from exercise of stock options, including early exercised stock options | 16,775 | 22,244 | 8,367 |
Proceeds from the issuance of common stock under the Employee Stock Purchase Plan | 13,420 | 10,532 | 0 |
Repurchase of early exercised stock options | (43) | (327) | (242) |
Principal repayments of finance leases | (1,915) | 0 | 0 |
Proceeds from borrowings on convertible senior notes, net of issuance costs | 1,132,991 | 291,145 | 0 |
Payments for 2024 Notes Partial Repurchase | (479,070) | 0 | 0 |
Payment for purchase of capped calls | (92,920) | (37,086) | 0 |
Proceeds from tenant improvement allowance on build-to-suit lease | 0 | 1,728 | 0 |
Proceeds from initial public offering, net of underwriting discounts and commissions | 0 | 0 | 205,494 |
Proceeds from exercise of redeemable convertible preferred stock warrants | 0 | 0 | 1 |
Payment of initial public offering costs | 0 | 0 | (3,728) |
Net cash provided by financing activities | 589,238 | 288,236 | 209,892 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 306 | (48) | 291 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 558,359 | 85,920 | (6,985) |
Cash, cash equivalents and restricted cash, beginning of year | 148,347 | 62,427 | 69,412 |
Cash, cash equivalents and restricted cash, end of year | 706,706 | 148,347 | 62,427 |
Cash paid during the period for: | |||
Income taxes, net of refunds | 2,701 | 984 | 1,004 |
Interest expense, net | 2,375 | 1,044 | 8 |
Noncash investing and financing activities | |||
Construction costs related to build-to-suit lease obligations | 0 | 11,683 | 0 |
Vesting of early exercised stock options | 296 | 1,204 | 1,280 |
Conversion of redeemable convertible preferred stock warrant liability to redeemable convertible preferred stock as a result of warrant exercise | 0 | 0 | 1,171 |
Conversion of redeemable convertible preferred stock to common stock | 0 | 0 | 346,428 |
Debt issuance and capped call costs included in accounts payable and accrued liabilities | 4,200 | 0 | 0 |
Purchases of property and equipment included in accounts payable and accrued liabilities | 1,134 | 66 | 193 |
Estimated fair value of office space under a build-to-suit lease | $ 0 | $ 0 | $ 54,709 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS - Reconciliation - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 |
Reconciliation of cash, cash equivalents and restricted cash within the consolidated balance sheets to the amounts shown in the statements of cash flows above: | |||
Cash and cash equivalents | $ 706,192 | $ 147,831 | $ 61,902 |
Restricted cash, non-current | 514 | 516 | 525 |
Total cash, cash equivalents and restricted cash | $ 706,706 | $ 148,347 | $ 62,427 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Jan. 31, 2020 | |
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 the Company’s 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2020 | |
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, assumptions and judgments 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, the incremental borrowing rate related to the Company’s lease liabilities, stock-based compensation, fair value of the liability component of the convertible debt, fair value of common stock and redeemable convertible preferred stock warrants prior to the initial public offering, 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. The COVID-19 pandemic is expected to result in a global slowdown of economic activity that is likely to decrease demand for a broad variety of goods and services, including from the Company’s customers, while also disrupting sales channels and marketing activities for an unknown period of time. The Company currently expects its revenue to be negatively impacted by the slowdown in activity associated with the COVID-19 pandemic for the year ending January 31, 2021. Estimates and assumptions about future events and their effects cannot be determined with certainty and therefore require the exercise of judgment. As of the date of issuance of these financial statements, the Company is not aware of any specific event or circumstance that would require the Company to update its estimates, assumptions and judgments or revise the carrying value of its assets or liabilities. These estimates may change as new events occur and additional information is obtained and are recognized in the consolidated financial statements as soon as they become known. Actual results could differ from those estimates and any such differences may be material to the Company’s financial statements. 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. Transaction 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 exchange rate as of the balance sheet date to translate assets and liabilities and the average exchange rate during the period to translate revenue and expenses into U.S. dollars. Translation gains or losses resulting from translating foreign local currency financial statements into U.S. dollars are included in accumulated other comprehensive income (loss) as a component of stockholders' equity. Comprehensive Loss The Company’s comprehensive loss includes net loss, unrealized gains and losses on available-for-sale debt securities and foreign currency translation adjustments. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. The Company maintains such investments primarily in money market funds. Marketable Securities The Company’s short-term investments consist of U.S. government treasury securities. 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 debt 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 debt 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 income (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 and declines in an investment's fair value deemed to be other than temporary are determined based on the specific identification method and are reported in other income (expense), net in the consolidated statements of operations. For the years ended January 31, 2020 , 2019 and 2018 , the Company has no t recorded any other-than-temporary-impairment charges in its consolidated statements of operations. Restricted Cash As of January 31, 2020 and 2019 , the Company pledged $0.5 million of collateral for its available credit on corporate credit cards. Restricted cash balances have been excluded from our cash and cash equivalents balance and are included in other assets on the consolidated balance sheets. Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, short-term investments, accounts receivable, accounts payable and accrued liabilities. Cash equivalents are measured at fair value on a recurring basis. Short-term investments classified as available-for-sale debt securities 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. Assets and liabilities recorded at fair value on a recurring basis in the balance sheets consisting of cash equivalents and short-term investments 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, which include highly liquid money market funds classified as cash equivalents and U.S. government treasury securities classified as short-term investments. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash and 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 insurance coverage 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. The Company does not require collateral from customers to secure accounts receivable. 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 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, 2020 and 2019 , no customer represented 10% or more of net accounts receivable. For the years ended January 31, 2020 , 2019 and 2018 , no customer represented 10% of more of revenue. 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, the Company has not capitalized any related software development costs in any of the periods presented. 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 the development of web-based product are capitalized during the application development stage. Costs incurred during the preliminary planning and evaluation stage of the project and during post implementation operational stage are expensed as incurred. There were no material qualifying costs incurred during the application development stage and 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, 2020 and 2019 . Property and Equipment Property and equipment are recorded at cost and depreciated using the straight-line method over 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 Building Forty years 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. Business Combinations The Company uses its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed as of the acquisition date. The excess of the fair value of purchase consideration over the fair values of these tangible and intangible assets acquired and liabilities assumed is recorded as goodwill. These estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. In addition, uncertain tax positions and tax-related valuation allowances are initially established in connection with a business combination as of the acquisition date. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statements of operations. Leases The consolidated financial statements for the year ended January 31, 2020 reflect the adoption of Accounting Standards Codification 842, Leases , (“ASC 842”) effective February 1, 2019, using the modified retrospective method. The consolidated financial statements for the years ended January 31, 2019 and prior were not adjusted. Refer to Recently Adopted Accounting Pronouncements regarding the adoption impact of ASC 842 for the year ended January 31, 2020. The Company determines if an arrangement is, or contains, a lease at inception. An arrangement is or contains a lease if the arrangement conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To determine whether an arrangement is or contains a lease, the Company considers all relevant facts and circumstances to assess whether the customer has both of the following: (1) the right to obtain substantially all of the economic benefits from use of the identified asset; and (2) the right to direct the use of the identified asset. The Company accounts for lease components and non-lease components as a single lease component for all leases. The Company has elected an accounting policy to not recognize right-of-use assets or lease liabilities for short-term leases, which have a lease term of twelve months or less, and instead recognize the associated lease payments for short-term leases in the consolidated statements of operations on a straight-line basis over the lease term. The Company measures lease liabilities based on the present value of lease payments over the lease term at the lease commencement date. As the Company’s leases generally do not provide an implicit discount rate, the net present value of future minimum lease payments is determined using the Company’s incremental borrowing rate, which is the estimated rate the Company would have to pay on a collateralized basis with similar terms and payments and in a similar economic environment where the leased asset is located. Options in the lease terms to extend or terminate the lease are not reflected in the lease liabilities unless it is reasonably certain that any such options will be exercised. The Company measures right-of-use assets at the lease commencement date based on the corresponding lease liabilities adjusted for (i) prepayments made to the lessor at or before the commencement date, (ii) initial direct costs incurred and (iii) certain tenant incentives under the lease. The Company evaluates the recoverability of the right-of-use assets for possible impairment in accordance with the long-lived assets policy. Lease expenses for minimum lease payments for operating leases are recognized on a straight-line basis over the lease term. Amortization expense of the right-of-use assets for finance leases is generally recognized on a straight-line basis over the shorter of the lease term or the useful life of the asset. Interest expense for finance leases is recognized based on the incremental borrowing rate used to determine the finance lease liability. Variable lease payments are expensed as incurred and are not included within the lease liability and right-of-use assets calculation. Operating leases are reflected in operating lease right-of-use assets, operating lease liabilities and operating lease liabilities, non-current on the consolidated balance sheets. Finance leases are included in property and equipment, net, other accrued liabilities, and other liabilities, non-current on the consolidated balance sheets. Within the statements of cash flows, the Company classifies all cash payments associated with operating leases within operating activities and for finance leases, repayments of principal are presented within financing activities and interest payments are presented within operating activities. Long-Lived Assets, Including Goodwill and Other Acquired Intangible Assets The Company evaluates the recoverability of property and equipment and acquired finite-lived 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. The Company has not recorded any material impairment charges related to property and equipment or acquired finite-lived intangible assets during the years presented. In addition to the recoverability assessment, the Company periodically reviews the remaining estimated useful lives of property and equipment and acquired finite-lived intangible assets. If the estimated useful life assumption for any asset is changed due to new information, the remaining unamortized balance would be depreciated or amortized over the revised estimated useful life, on a prospective basis. The Company tests goodwill for impairment at least annually or more frequently if events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable. The Company first assesses the qualitative factors to determine whether it is more likely than not that the fair value of the Company’s single operating segment is less than its carrying amount as a basis for determining whether it is necessary to perform the quantitative goodwill impairment test. If the Company determines that it is more likely than not that its fair value is less than its carrying amount, then the quantitative goodwill impairment test will be performed. The quantitative goodwill impairment test identifies goodwill impairment and measures the amount of goodwill impairment loss to be recognized by comparing the fair value of the Company’s single operating segment with its carrying amount. If the carrying amount exceeds its fair value, no further analysis is required; otherwise, any excess of the goodwill carrying amount over the implied fair value is recognized as an impairment loss and the carrying value of goodwill is written down to fair value. No indications of impairment of goodwill were identified during the years ended January 31, 2020 , 2019 and 2018, and accordingly, the Company has not recorded any impairment of goodwill during those periods. Revenue Recognition The Company derives its revenue from two sources: (1) sales of subscriptions, including term license and post-contract customer support (“PCS”) and consumption-based database-as-a-service offering; and (2) services revenue comprised of consulting and training arrangements. The Company recognizes revenue when its customer obtains control of promised goods or services in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. In determining the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements, the Company performs the following steps: i. Identification of the contract, or contracts, with a customer - The Company contracts with its customers through order forms, which are governed by master sales agreements. The Company determines it has a contract with a customer when the contract is approved, each party’s rights regarding the products or services to be transferred is identified, the payment terms for the services can be identified, the Company has determined the customer has the ability and intent to pay and the contract has commercial substance. The Company applies judgment in determining the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s historical payment experience or, in the case of a new customer, credit, reputation and financial or other information pertaining to the customer. At contract inception, the Company evaluates whether two or more contracts should be combined and accounted for as a single contract and whether the combined or single contract includes more than one performance obligation. The Company has concluded that its contracts with customers do not contain warranties that give rise to a separate performance obligation. ii. Identification of the performance obligations in the contract - Performance obligations promised in a contract are identified based on the services or products that will be transferred to the customer that are both 1) capable of being distinct, whereby the customer can benefit from the service or product either on its own or together with other resources that are readily available from third parties or from the Company and 2) distinct in the context of the contract, whereby the transfer of the services or products is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised services or products, the Company applies judgment to determine whether promised services or products are capable of being distinct and distinct in the context of the contract. If these criteria are not met, the promised services or products are accounted for as a combined performance obligation. iii. Determination of the transaction price - The transaction price is determined based on the consideration to which the Company expects to be entitled in exchange for transferring services and products to the customer. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. None of the Company’s contracts contain a significant financing component. iv. Allocation of the transaction price to the performance obligations in the contract - If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. For contracts that contain multiple performance obligations, the Company allocates the transaction price to each performance obligation based on a relative standalone selling price (“SSP”) basis. The Company also considers if there are any additional material rights inherent in a contract and if so, the Company allocates a portion of the transaction price to such rights based on SSP. The Company determines each SSP based on multiple factors, including past history of selling such performance obligations as standalone products. The Company estimates SSP for performance obligations with no observable evidence using adjusted market, cost plus and residual methods to establish the SSPs. In cases where directly observable standalone sales are not available, the Company utilizes all observable data points including competitor pricing for a similar or identical product, market and industry data points and the Company’s pricing practices to establish the SSP. v. Recognition of revenue when, or as, the Company satisfies a performance obligation - The Company recognizes revenue at the time the related performance obligation is satisfied when control of the services or products are transferred to the customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services or products. The Company records its revenue net of any value added or sales tax. Subscription Revenue The Company sells subscriptions directly through its field and inside sales teams and indirectly through channel partners, as well as through its self-serve channel. The majority of the Company’s subscription contracts are one year in duration and are invoiced upfront. When the Company enters into multi-year subscription contracts, the Company typically invoices the customer on an annual basis. The Company’s subscription contracts are generally non-cancelable and non-refundable. The Company’s subscription revenue includes time-based software licenses sold in conjunction with PCS. These subscription offerings are generally priced on a per server basis, subject to a per server RAM limit. Performance obligations related to subscription revenue for time-based software licenses include a license portion, which represents functional intellectual property under which a customer has the legal right to the license. The license provides significant standalone functionality and is therefore deemed a distinct performance obligation. License revenue is recognized at a point in time, upon delivery and transfer of control of the underlying license to the customer, which is typically the subscription start date. Performance obligations related to PCS include unspecified updates, as well as support and maintenance. While separate performance obligations are identified within PCS, the underlying performance obligations generally have a consistent continuous pattern of transfer to a customer during the term of a contract. Revenue from PCS is recognized ratably over the contract duration. The Company also derives subscription revenue from providing its software to customers with its database-as-a-service offering that include comprehensive infrastructure and management of the Company’s database and can also be purchased with additional enterprise features. Performance obligations related to database-as-a-service solutions are recognized on a usage-basis, as the consumption of this service represents a direct measurement of the value to the customer of the goods or services transferred to date relative to the remaining goods or services promised under the contract. Services Revenue The Company’s services contracts are generally provisioned on a time-and-materials basis. Revenue is recognized on a proportional performance basis as the services are delivered to the customers. Contracts with Multiple Performance Obligations Certain of the Company’s contracts with customers contain multiple performance obligations, including those described above such as the license portion of time-based software licenses, PCS, database-as-a-service offering and services. For these contracts, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative SSP basis. Cost of Revenue Cost of Subscription Revenue Cost of subscription revenue primarily includes personnel costs, including salaries, bonuses and benefits and stock-based compensation, for employees associated with the Company’s subscription arrangements principally related to support and allocated shared costs, as well as depreciation and amortization. The cost of subscription revenue for the Company’s database-as-a-service offering also includes third-party cloud infrastructure. Cost of Services Revenue Cost of services revenue primarily includes personnel costs, including salaries and benefits and stock-based compensation, for employees associated with the Company’s professional service contracts, travel costs and allocated shared costs, as well as depreciation and amortization. Deferred Commissions The Company capitalizes its incremental costs of obtaining non-cancelable subscription contracts with customers, which generally consist of sales commissions paid to the Company’s sales force and related payroll taxes. These costs are recorded on the Company’s consolidated balance sheets as deferred commissions. Amortization is recognized based on the expected future revenue streams under the customer contracts over a period of benefit that the Company has determined to be generally five years . The Company determined the period of benefit by taking into consideration its customer contracts, its technology and other factors. For all other sales commissions and related payroll taxes for non-cancelable subscription contracts, the Company also capitalizes such costs, which are amortized based on the pattern of the associated revenue recognition over the related contractual subscription period. Sales commissions are generally paid up front and one month in arrears, however, the timing of payment 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. Amortization of deferred commissions is included in sales and marketing expense in the consolidated statements of operations. The Company adopted the practical expedient that permits an entity to expense the costs to obtain a contract as incurred when the expected amortization period is one year or less. Deferred Revenue Deferred revenue primarily consists of customer billings or payments received in advance of revenues being recognized from the Company’s subscription and services contracts. The Company generally invoices its customers annually in advance for its subscription services. Typical payment terms provide that customers pay a portion of the total arrangement fee within 30 days of the contract date. Deferred revenue that is anticipated to be recognized during the succeeding twelve-month period is recorded as current deferred revenue and the remaining portion is recorded as non-current. The Company’s contract liabilities are classified as deferred revenue upon the right to invoice or when payments have been received for undelivered products or services. Deferred revenue does not necessarily represent the total contract value of annual or multi-year, non-cancelable subscription agreements. Accounts Receivable and Allowance for Doubtful Accounts The Company records a receivable when an unconditional right to consideration exists and transfer of control has occurred, such that only the passage of time is required before payment of consideration is due. Timing of revenue recognition may differ from the timing of invoicing to customers. If revenue recognized on a contract exceeds the billings, then the Company records an unbilled receivable for that excess amount, which is included as part of accounts receivable, net in the Company’s consolidated balance sheets. Accounts receivable are recorded at the invoiced amounts and do not bear interest. 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. Convertible Senior Notes In accounting for the issuance of the Company’s convertible senior notes (the “Notes”), the Notes were separated into liability and equity components. The carrying amounts of the liability component was calculated by measuring the fair value of similar liabilities that do not have associated convertible features. The carrying amount of the equity compon |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 31, 2020 | |
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, 2020 and 2019 and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands): Fair Value Measurement at January 31, 2020 Level 1 Level 2 Level 3 Total Financial Assets: Cash and cash equivalents: Money market funds $ 623,856 $ — $ — $ 623,856 Short-term investments: U.S. government treasury securities 280,326 — — 280,326 Total financial assets $ 904,182 $ — $ — $ 904,182 Fair Value Measurement at January 31, 2019 Level 1 Level 2 Level 3 Total Financial Assets: Cash and cash equivalents: Money market funds $ 88,015 $ — $ — $ 88,015 Short-term investments: U.S. government treasury securities 318,139 — — 318,139 Total financial assets $ 406,154 $ — $ — $ 406,154 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, 2020 and 2019 , gross realized and unrealized gains and losses for cash equivalents and short-term investments were not material and the contractual maturity of all marketable securities was less than one year. In addition to its cash, cash equivalents and short-term investments, the Company measures the fair value of its outstanding convertible senior notes on a quarterly basis for disclosure purposes. The Company considers the fair value of the convertible senior notes at January 31, 2020 to be a Level 2 measurement due to limited trading activity of the convertible senior notes. Refer to Note 7, Convertible Senior Notes , to the consolidated financial statements for further details. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Jan. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net consists of the following (in thousands): January 31, 2020 January 31, 2019 Servers $ 946 $ 587 Furniture and fixtures 2,673 2,224 Computer and office equipment 229 174 Purchased software 985 985 Leasehold improvements 19,311 16,958 Construction in process 314 16 Building — 56,161 Finance lease right-of-use assets 39,411 — Total property and equipment 63,869 77,105 Less: accumulated depreciation and amortization (5,553 ) (3,441 ) Property and equipment, net $ 58,316 $ 73,664 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 had certain indemnification obligations related to the construction, the Company was considered, for accounting purposes only, the owner of the construction project under build-to-suit lease accounting. Accordingly, the Company 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 were capitalized as “Construction in process” and upon completion, reclassified to the “Building” asset. The Company also recorded a corresponding long-term lease liability. Prior to the adoption of ASC 842, as of January 31, 2019, $55.7 million of our build-to-suit lease asset was included in “Property and equipment, net” and the related $70.2 million financing lease obligation was included in “Other liabilities, non-current” on the consolidated balance sheets. Upon the adoption of ASC 842, this lease was classified as a finance lease, where we derecognized our build-to-suit asset and related liabilities. See Note 2, Summary of Significant Accounting Policies , for the adoption impact of ASC 842 on the consolidated financial statements as of February 1, 2020. Depreciation and amortization expense related to property and equipment was $2.7 million , $2.9 million and $2.8 million for the years ended January 31, 2020 , 2019 and 2018 , respectively. Depreciation and amortization expense for the year ended January 31, 2020 excludes amortization with respect to the finance lease right-of-use asset, which is described further in Note 8, Leases . |
Business Combinations
Business Combinations | 12 Months Ended |
Jan. 31, 2020 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations The Company acquired all of the issued and outstanding capital stock of Tightdb, Inc. (“Realm”) on May 7, 2019 (the “Acquisition Date”) for a purchase price of $39.0 million in cash, subject to working capital, cash, debt, transaction expenses and other closing adjustments. Realm, based in San Francisco, California, offers a mobile database, as well as a platform with real-time data synchronization between mobile applications and cloud databases. The Company used the acquisition method to account for the purchase of Realm, which met the definition of a business. As of January 31, 2020 , the Company had finalized the working capital, cash, debt, transaction expenses and other closing adjustments and identified and recorded the fair value of the assets and liabilities acquired, as well as the residual value to goodwill. The allocation of the purchase price was based on available information and assumptions at the time of the initial valuation and may be subject to change within the measurement period. The total merger consideration, after closing adjustments, was $38.8 million , which included adjustments for cash and working capital. The following table represents a summary of the purchase price (in thousands): Amounts Purchase price pursuant to the merger agreement $ 39,000 Estimated cash amount 115 Downward closing working capital adjustment (352 ) Total purchase price to be allocated $ 38,763 The following table summarizes the purchase price allocation fair values of the assets acquired and liabilities and the value of goodwill assumed at the Acquisition Date (in thousands): Estimated Fair Value Financial and tangible assets, net $ 43 Identifiable intangible asset - developed technology 27,300 Identifiable intangible asset - customer relationships 1,700 Deferred revenue (350 ) Goodwill (excluding deferred tax liability impact) 10,070 Total purchase price $ 38,763 Financial and tangible assets, net primarily include the cash acquired and accounts receivable, net of existing Realm obligations as of the Acquisition Date. Developed technology includes both the Realm mobile database and the Realm Object Server, which together automatically synchronize data between mobile applications and cloud databases, including MongoDB Atlas. The Company determined the economic useful life to be five years based on the expected time period that the asset would contribute to the Company’s future cash flows without significant upgrades. The fair value of developed technology was estimated using the reproduction cost method (Level 3), which utilized assumptions for the cost to replace, such as the workforce, timing and resources required, as well as a theoretical profit margin and opportunity cost. Customer relationships represent the fair value of projected subscription revenue that is expected to be generated from existing customers of Realm as of the Acquisition Date. The Company determined the economic useful life to be five years and the fair value of customer relationships was estimated using the replacement cost approach (Level 3), which utilized assumptions for sales and marketing expenses to determine the estimated cost to acquire a Realm customer. Other assumptions include a theoretical profit margin and opportunity costs. These two intangible assets acquired are being amortized over their estimated useful lives using the straight-line method of amortization, which approximates the distribution of the economic value of the identified intangible assets. See Note 6, Goodwill and Acquired Intangible Assets, Net , for further details. Deferred revenue was estimated at fair value under the cost build-up method (Level 3), which was determined based on estimated direct and indirect costs to support and fulfill the subscription obligation plus an assumed operating margin. Deferred revenue will be recognized based on the revenue criteria set forth in Note 2, Summary of Significant Accounting Policies . Goodwill related to the acquisition, which represents the difference between the purchase price and fair values of identifiable net assets, is primarily attributable to assembled workforce, as well as expected synergies of the combination. The goodwill is no t tax deductible for U.S. income tax purposes. In addition to the goodwill recorded through the purchase price allocation disclosed in the table above, the Company recorded an additional $3.5 million to goodwill during the three months ended July 31, 2019, resulting from deferred tax liabilities associated with the acquired intangible assets. During the three months ended January 31, 2020, the Company completed its net operating losses limitation analysis under Section 382 of the U.S. Internal Revenue Code of 1986 with respect to the acquisition of Realm and made a final determination that $3.9 million should be recorded to goodwill associated with the acquired deferred tax liabilities from Realm. Accordingly, the Company recorded a measurement period adjustment of $0.4 million for the period ended January 31, 2020 as an additional income tax benefit and an increase to goodwill. The Company incurred acquisition-related costs for the Realm acquisition of $0.6 million during the year ended January 31, 2020 . These acquisition-related costs were included in general and administrative expenses in the Company’s consolidated statements of operations. The Company included Realm’s estimated fair value of assets acquired and liabilities assumed in its consolidated balance sheet beginning on the Acquisition Date. The results of operations for Realm subsequent to the Acquisition Date have been included in, but are not material to, the Company's consolidated statements of operations for the year ended January 31, 2020 . The pro forma results of operations for the Realm acquisition have not been presented because they were not material to the Company’s consolidated statements of operations for the years ended January 31, 2020 , 2019 and 2018 . |
Goodwill and Acquired Intangibl
Goodwill and Acquired Intangible Assets, Net | 12 Months Ended |
Jan. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Acquired Intangible Assets, Net | Goodwill and Acquired Intangible Assets, Net The following table summarizes the changes in the carrying amount of goodwill during the periods presented (in thousands): January 31, 2020 January 31, 2019 Balance, beginning of the year $ 41,878 $ 1,700 Increase in goodwill related to business combinations 13,952 40,178 Balance, end of the year $ 55,830 $ 41,878 Refer to Note 5, Business Combinations , for further details on the addition to goodwill. The gross carrying amount and accumulated amortization of the Company’s intangible assets are as follows (in thousands): January 31, 2020 Gross Carrying Value Accumulated Amortization Net Book Value Developed technology $ 34,700 $ (11,495 ) $ 23,205 Domain name 155 (151 ) 4 Customer relationships 15,200 (3,630 ) 11,570 Total $ 50,055 $ (15,276 ) $ 34,779 January 31, 2019 Gross Carrying Value Accumulated Amortization Net Book Value Developed technology $ 7,400 $ (4,358 ) $ 3,042 Domain name 155 (128 ) 27 Customer relationships 13,500 (675 ) 12,825 Total $ 21,055 $ (5,161 ) $ 15,894 Acquired intangible assets are amortized on a straight-line basis. As of January 31, 2020 , the weighted-average remaining useful lives of identifiable, acquisition-related intangible assets was 4.3 years for developed technology, 0.2 years for domain name and 3.8 years for customer relationships. Amortization expense of intangible assets was $10.1 million , $2.3 million and $0.9 million for the years ended January 31, 2020 , 2019 and 2018 , respectively. Amortization expense for developed technology and the domain name was included as research and development expense in the Company’s consolidated statements of operations. Amortization expense for customer relationships was included as sales and marketing expense in the Company’s consolidated statements of operations. As of January 31, 2020 , future amortization expense related to the intangible assets is as follows (in thousands): Years Ending January 31, 2021 $ 8,504 2022 8,500 2023 8,500 2024 7,825 2025 1,450 Total $ 34,779 |
Convertible Senior Notes
Convertible Senior Notes | 12 Months Ended |
Jan. 31, 2020 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes | Convertible Senior Notes In June 2018, the Company issued $250.0 million aggregate principal amount of 0.75% convertible senior notes due 2024 in a private placement and, in July 2018, the Company issued an additional $50.0 million aggregate principal amount of convertible senior notes pursuant to the exercise in full of the initial purchasers’ option to purchase additional convertible senior notes (collectively, the “2024 Notes”). The 2024 Notes are senior unsecured obligations of the Company and interest is payable semiannually in arrears on June 15 and December 15 of each year, beginning on December 15, 2018, at a rate of 0.75% per year. The 2024 Notes will mature on June 15, 2024, unless earlier converted, redeemed or repurchased. The total net proceeds from the offering, after deducting initial purchase discounts and debt issuance costs, were approximately $291.1 million . In January 2020, the Company issued $1.0 billion aggregate principal amount of 0.25% convertible senior notes due 2026 in a private placement and, also in January 2020, the Company issued an additional $150.0 million aggregate principal amount of convertible senior notes pursuant to the exercise in full of the initial purchasers’ option to purchase additional convertible senior notes (collectively, the “2026 Notes”). The 2026 Notes are senior unsecured obligations of the Company and interest is payable semiannually in arrears on July 15 and January 15 of each year, beginning on July 15, 2020, at a rate of 0.25% per year. The 2026 Notes will mature on January 15, 2026, unless earlier converted, redeemed or repurchased. The total net proceeds from the offering, after deducting initial purchase discounts and estimated debt issuance costs, were approximately $1.13 billion . On January 14, 2020, in connection with the issuance of the 2026 Notes, the Company used a portion of the net proceeds to repurchase $210.0 million aggregate principal amount of the 2024 Notes (the “2024 Notes Partial Repurchase”) leaving $90.0 million aggregate principal outstanding on the 2024 Notes immediately after the exchange. The 2024 Notes Partial Repurchase were not pursuant to a redemption notice and were individually privately negotiated transactions. The 2024 Notes Partial Repurchase and issuance of the 2026 Notes were deemed to have substantially different terms due to the significant difference between the value of the conversion option immediately prior to and after the exchange, and accordingly, the 2024 Notes Partial Repurchase was accounted for as a debt extinguishment. The Company used $479.2 million of the net proceeds from the issuance of the 2026 Notes to complete the 2024 Notes Partial Repurchase, of which $175.1 million and $303.9 million were allocated to the liability and equity components of the 2024 Notes, respectively, and $0.2 million was allocated to the proportional interest paid. The cash consideration allocated to the liability component was based on the fair value of the liability component utilizing an effective discount rate of 5.04% . This rate was based on the Company’s estimated rate for a similar liability with the same maturity, but without the conversion option. To derive this effective discount rate, the Company observed the trading details of its 2024 Notes immediately prior to the repurchase date to determine the volatility of its 2024 Notes. The Company utilized the observed volatility to calculate the effective discount rate, which was adjusted to reflect the term of the remaining 2024 Notes. The cash consideration allocated to the equity component was calculated by deducting the fair value of the liability component from the aggregate cash consideration. The loss on extinguishment was subsequently determined by comparing the allocated cash consideration with the carrying value of the liability component, which includes the proportionate amounts of unamortized debt discount and the remaining unamortized debt issuance costs. The net carrying amount of the liability component of the 2024 Notes immediately prior to the repurchase was as follows (in thousands): January 14, 2020 2024 Notes Total 2024 Notes Partial Repurchase Principal $ 300,000 $ 209,998 Unamortized debt discount (65,366 ) (45,756 ) Unamortized debt issuance costs (5,175 ) (3,623 ) Net carrying amount $ 229,459 $ 160,619 The 2024 Notes Partial Repurchase resulted in a loss of early extinguishment of debt calculated as follows (in thousands): January 14, 2020 Cash consideration allocated to the liability component $ 175,141 Less: Net carrying amount of the liability component associated with the 2024 Notes Partial Repurchase (160,619 ) Loss from 2024 Notes Partial Repurchase $ 14,522 In connection with the 2024 Notes Partial Repurchase, the cash consideration allocated to the equity component of $303.9 million was recorded as a reduction to additional paid-in capital on the Company’s consolidated balance sheet as of January 31, 2020. Terms of the 2024 Notes For the 2024 Notes, the initial conversion rate is 14.6738 shares of the Company’s Class A common stock per $1,000 principal amount of the 2024 Notes, which is equal to an initial conversion price of approximately $68.15 per share of Class A common stock, subject to adjustment upon the occurrence of specified events. The 2024 Notes will be convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding March 15, 2024, only under the following circumstances: (1) during any fiscal quarter commencing after the fiscal quarter ending on October 31, 2018 (and only during such fiscal quarter), if the last reported sale price of the Company’s Class A common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price of the 2024 Notes on each applicable trading day; (2) during the five -business day period after any five consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of the 2024 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s Class A common stock and the conversion rate of the 2024 Notes on each such trading day; (3) if the Company calls any or all of the 2024 Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events (as set forth in the indenture governing the 2024 Notes). On or after March 15, 2024, until the close of business on the scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their 2024 Notes, in multiples of $1,000 principal amount, at the option of the holder, regardless of the foregoing circumstances. Upon conversion, the Company will satisfy its conversion obligation by paying or delivering, as the case may be, cash, shares of the Company’s Class A common stock or a combination of cash and shares of the Company’s Class A common stock, at the Company’s election. If a fundamental change (as defined in the indenture governing the 2024 Notes) occurs prior to the maturity date, holders of the 2024 Notes will have the right to require the Company to repurchase for cash all or any portion of their 2024 Notes at a repurchase price equal to 100% of the principal amount of the 2024 Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. In addition, if specific corporate events occur prior to the applicable maturity date, or if the Company elects to redeem the 2024 Notes, the Company will increase the conversion rate for a holder who elects to convert their notes in connection with such a corporate event or redemption in certain circumstances. It is the Company’s current intent to settle the principal amount of the 2024 Notes in cash. During the three months ended January 31, 2020 , the conditional conversion feature of the 2024 Notes was triggered as the last reported sale price of the Company's Class A common stock was more than or equal to 130% of the conversion price for at least 20 trading days in the period of 30 consecutive trading days ending on January 31, 2020 (the last trading day of the fiscal quarter) and therefore the 2024 Notes are currently convertible, in whole or in part, at the option of the holders between February 1, 2020 through April 30, 2020. Whether the 2024 Notes will be convertible following such period will depend on the continued satisfaction of this condition or another conversion condition in the future. During the three months ended January 31, 2020 , certain holders elected to convert an immaterial amount of their 2024 Notes, unrelated to the 2024 Notes Partial Repurchase. Since the Company has the election of repaying the 2024 Notes in cash, shares of the Company’s Class A common stock, or a combination of both, the Company continued to classify the liability component of the 2024 Notes as long-term debt on the Company’s consolidated balance sheet as of January 31, 2020 . The Company may not redeem the 2024 Notes prior to June 20, 2021. On or after June 20, 2021, the Company may redeem for cash all or any portion of the 2024 Notes, at its option, if the last reported sale price of its Class A common stock was at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on and including, the trading day immediately preceding the date on which the Company provides a notice of redemption at a redemption price equal to 100% of the principal amount of the 2024 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. Terms of the 2026 Notes For the 2026 Notes, the initial conversion rate is 4.7349 shares of the Company’s Class A common stock per $1,000 principal amount of the 2024 Notes, which is equal to an initial conversion price of approximately $211.20 per share of Class A common stock, subject to adjustment upon the occurrence of specified events. The 2026 Notes will be convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding October 15, 2025, only under the following circumstances: (1) during any fiscal quarter commencing after the fiscal quarter ending on April 30, 2020 (and only during such fiscal quarter), if the last reported sale price of the Company’s Class A common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price of the 2026 Notes on each applicable trading day; (2) during the five -business day period after any five consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of the 2026 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s Class A common stock and the conversion rate of the 2026 Notes on each such trading day; (3) if the Company calls any or all of the 2026 Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events (as set forth in the indenture governing the 2026 Notes). On or after October 15, 2025, until the close of business on the scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their 2026 Notes, in multiples of $1,000 principal amount, at the option of the holder, regardless of the foregoing circumstances. Upon conversion, the Company will satisfy its conversion obligation by paying or delivering, as the case may be, cash, shares of the Company’s Class A common stock or a combination of cash and shares of the Company’s Class A common stock, at the Company’s election. If a fundamental change (as defined in the indenture governing the 2026 Notes) occurs prior to the maturity date, holders of the 2026 Notes will have the right to require the Company to repurchase for cash all or any portion of their 2026 Notes at a repurchase price equal to 100% of the principal amount of the 2026 Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. In addition, if specific corporate events occur prior to the applicable maturity date, or if the Company elects to redeem the 2026 Notes, the Company will increase the conversion rate for a holder who elects to convert their notes in connection with such a corporate event or redemption in certain circumstances. It is the Company’s current intent to settle the principal amount of the 2026 Notes in cash. During the year ended January 31, 2020, the conditions allowing holders of the 2026 Notes to convert have not been met. The 2026 Notes were therefore not convertible during the year ended January 31, 2020 and the liability component was classified as long-term debt on the Company’s consolidated balance sheet as of January 31, 2020. The Company may not redeem the 2026 Notes prior to January 20, 2023. On or after January 20, 2023, the Company may redeem for cash all or any portion of the 2026 Notes, at its option, if the last reported sale price of its Class A common stock was at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on and including, the trading day immediately preceding the date on which the Company provides a notice of redemption at a redemption price equal to 100% of the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. Accounting for the 2024 Notes and 2026 Notes The 2024 Notes and 2026 Notes were separated into liability and equity components for accounting purposes. The carrying amounts of the liability component were initially calculated by measuring the fair value of similar liabilities that do not have associated convertible features. The carrying amounts of the equity component representing the conversion option were determined by deducting the fair value of the liability component from the par value of the respective convertible senior notes. This difference represents the debt discount that is amortized to interest expense over the respective terms of the 2024 Notes and 2026 Notes using the effective interest rate method. The carrying amounts of the equity component representing the conversion option was determined to be $84.2 million and $294.9 million for the 2024 Notes and 2026 Notes, respectively. The equity component was recorded in additional paid-in capital and is not remeasured as long as it continues to meet the conditions for equity classification. In accounting for the debt issuance costs of $8.8 million and $20.3 million related to the 2024 Notes and 2026 Notes, respectively, the Company allocated each of the total amounts incurred to the liability and equity components of the 2024 Notes and 2026 Notes based on their relative values. Issuance costs attributable to the liability component of the 2024 Notes were $6.3 million upon issuance and were amortized, along with the debt discount, to interest expense over the contractual term of the 2024 Notes at an effective interest rate of 7.03% . Issuance costs attributable to the liability component of the 2026 Notes were $15.1 million upon issuance and will be amortized, along with the debt discount, to interest expense over the contractual term of the 2026 Notes at an effective interest rate of 5.60% . Issuance costs attributable to the equity component were $2.5 million and $5.2 million for the 2024 Notes and 2026 Notes, respectively, and are netted against the equity component representing the conversion option in additional paid-in capital. The net carrying amount of the equity component of the 2024 Notes recorded in additional paid-in capital was $81.7 million . For the 2026 Notes, the net carrying amount of the equity component was $289.0 million , which, in addition to the allocated issuance costs, also included a net deferred tax impact of $0.7 million . There was no deferred tax impact related to the 2024 Notes due to the full valuation allowance at the time of issuance for the 2024 Notes. The net carrying amounts of the liability component of the 2024 Notes and 2026 Notes were as follows (in thousands): January 31, 2020 January 31, 2019 2024 Notes * 2026 Notes 2024 Notes Principal $ 90,002 $ 1,150,000 $ 300,000 Unamortized debt discount (19,435 ) (292,932 ) (77,211 ) Unamortized debt issuance costs (1,541 ) (15,019 ) (5,931 ) Net carrying amount $ 69,026 $ 842,049 $ 216,858 *Reflects the impact of the 2024 Notes Partial Repurchase on January 14, 2020. As of January 31, 2020 , the total estimated fair values (Level 2) of the outstanding 2024 Notes and the 2026 Notes were approximately $220.2 million and $1.2 billion , respectively. The fair values were determined based on the closing trading price per $100 of the 2024 Notes and 2026 Notes as of the last day of trading for the period. The fair values of the 2024 Notes and 2026 Notes are primarily affected by the trading price of the Company’s common stock and market interest rates. The following table sets forth the interest expense related to the 2024 Notes and 2026 Notes (in thousands): Year Ended January 31, 2020 Year Ended January 31, 2019 2024 Notes 2026 Notes 2024 Notes Contractual interest expense $ 2,178 $ 136 $ 1,325 Amortization of debt discount 12,021 1,977 6,956 Amortization of issuance costs 767 82 415 Total $ 14,966 $ 2,195 $ 8,696 Capped Calls In connection with the pricing of the 2024 Notes and 2026 Notes, the Company entered into privately negotiated capped call transactions with certain counterparties (the “Capped Calls”). The Capped Calls associated with the 2024 Notes each have an initial strike price of approximately $68.15 per share, subject to certain adjustments, which corresponds to the initial conversion price of the 2024 Notes. These Capped Calls have initial cap prices of $106.90 per share, subject to certain adjustments. The Capped Calls associated with the 2026 Notes each have an initial strike price of approximately $211.20 per share, subject to certain adjustments, which corresponds to the initial conversion price of the 2026 Notes. These Capped Calls have initial cap prices of $296.42 per share, subject to certain adjustments. The Capped Calls are expected to partially offset the potential dilution to the Company’s Class A common stock upon any conversion of the 2024 Notes or 2026 Notes, with such offset subject to a cap based on the cap price. The Capped Calls associated with the 2024 Notes and 2026 Notes cover, subject to anti-dilution adjustments, approximately 4.4 million shares and 5.4 million shares of the Company’s Class A common stock, respectively. The Capped Calls are subject to adjustment upon the occurrence of specified extraordinary events affecting the Company, including merger events, tender offers and the announcement of such events. In addition, the Capped Calls are subject to certain specified additional disruption events that may give rise to a termination of the Capped Calls, including nationalization, insolvency or delisting, changes in law, failures to deliver, insolvency filings and hedging disruptions. For accounting purposes, the Capped Calls are separate transactions and not part of the terms of the 2024 Notes and 2026 Notes. As these transactions meet certain accounting criteria, the Capped Calls are recorded in stockholders' equity and are not accounted for as derivatives. The cost of $37.1 million and $93.8 million incurred to purchase the Capped Calls associated with the 2024 Notes and 2026 Notes, respectively, was recorded as a reduction to additional paid-in capital and will not be remeasured. The Company did not unwind any of its Capped Calls in connection with the 2024 Notes Partial Repurchase. |
Leases
Leases | 12 Months Ended |
Jan. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases Finance Lease 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. Total estimated aggregate base rent payments over the initial 12 -year term of the lease are $87.3 million and payments began in July 2019. The Company has the option to extend the term of the lease by an additional 5 years . As a result of the Company’s involvement during the construction period, whereby the Company had certain indemnification obligations related to the construction, the Company was 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. On September 4, 2018, construction of the Premises was completed. The Company evaluated whether to de-recognize the build-to-suit asset and liability under the “sale-leaseback” accounting guidance. The Company concluded that it lacks transferability of the risks and rewards of ownership and therefore did not meet with the requirements for sale-leaseback accounting. Accordingly, the Company accounts for the New York City office lease as a financing arrangement. The Company vacated its former office space as of September 30, 2018, prior to the expiration of the lease on December 31, 2018. The remaining rent payable, deferred rent and associated leasehold improvements for the former office space were expensed in full on September 30, 2018 and resulted in a charge of $1.5 million recorded as a general and administrative operating expense in the Company’s consolidated statement of operations. As of January 31, 2019, there was no liability associated with the former office space. Operating Leases The Company has entered into non-cancelable 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. 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 former headquarters lease in New York City. The amendment reduced the letter of credit from $1.1 million to $0.5 million . In February 2019, the Company terminated its standby letter of credit after vacating the former NYC office space, as discussed above under Financing Leases . In January 2017, the Company entered into an irrevocable, standby letter of credit with Silicon Valley Bank for $0.4 million , expiring April 2023, 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 , which subsequently increased in March 2020 to $0.5 million , expiring March 2026, to serve as a security deposit for the Company’s lease in Australia. In October 2019, the Company entered into an irrevocable, standby letter of credit with Silicon Valley Bank for $0.3 million , expiring October 2025, to serve as a security deposit for the Company’s additional office space in New York City, as described further below. Lease Costs The components of the Company’s lease costs included in its consolidated statement of operations were as follows (in thousands): January 31, 2020 Finance lease cost: Amortization of finance lease right-of-use assets $ 3,976 Interest on finance lease liabilities 3,639 Operating lease cost 4,712 Short-term lease cost 2,229 Total lease cost $ 14,556 Total rent expense related to financing and operating leases under the previous lease guidance was $10.7 million and $9.1 million for the years ended January 31, 2019 and 2018 , respectively. Balance Sheet Components The balances of the Company’s finance and operating leases were recorded on the consolidated balance sheet as follows (in thousands): January 31, 2020 Finance Lease: Property and equipment, net $ 39,411 Other accrued liabilities (current) 4,633 Other liabilities, non-current 59,257 Operating Leases: Operating lease right-of-use assets $ 11,147 Operating lease liabilities (current) 3,750 Operating lease liabilities, non-current 8,113 Supplemental Information The following table presents supplemental information related to the Company’s finance and operating leases (in thousands, except weighted-average information): January 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance lease $ 1,817 Operating cash flows from operating leases 4,450 Financing cash flows from finance lease 1,915 Right-of-use assets obtained in exchange for lease obligations: Finance lease $ — Operating leases 3,930 Weighted-average remaining lease term (in years): Finance lease 9.9 Operating leases 4.2 Weighted-average discount rate: Finance lease 5.6 % Operating leases 6.2 % Maturities of Lease Liabilities Future minimum lease payments under non-cancelable finance and operating leases on an annual undiscounted cash flow basis as of January 31, 2020 were as follows (in thousands): Year Ending January 31, Finance Lease Operating Leases 2021 $ 8,073 $ 4,352 2022 8,073 2,935 2023 8,073 2,708 2024 8,073 1,266 2025 8,445 848 Thereafter 42,829 1,377 Total minimum payments 83,566 13,486 Less imputed interest (19,676 ) (1,623 ) Present value of future minimum lease payments 63,890 11,863 Less current obligations under leases (4,633 ) (3,750 ) Non-current lease obligations $ 59,257 $ 8,113 Excluded in the lease obligation table above is a new agreement to lease an additional 21,000 square feet of office space in New York City, which will be recognized as an operating lease upon the lease commencement date. The Company entered into this agreement in October 2019 and expects the lease to commence on or around April 2020 for a term of five years with no renewal period. The total estimated aggregate base rent payments are $8.1 million with payments beginning four months subsequent to the commencement date. In December 2019, the Company entered into a new agreement to lease approximately 40,000 square feet of office space in Dublin, Ireland, which will be recognized as an operating lease upon the lease commencement date. Accordingly, this lease is also excluded from the lease obligation table above. The Company expects the lease to commence on or around June 2020 for a term of 12 years with two five-year renewal options. The total estimated aggregate base rent payments, excluding the renewal options, for the Dublin office space are approximately $27.0 million. Future minimum lease payments under non-cancelable financing and operating leases, based on the previous lease accounting standard, as of January 31, 2019 were as follows (in thousands): Year Ending January 31, Financing Lease Operating Leases 2020 $ 3,732 $ 4,578 2021 8,073 3,765 2022 8,073 2,277 2023 8,073 2,224 2024 8,073 922 Thereafter 51,274 2,149 Total minimum payments $ 87,298 $ 15,915 |
Leases | Leases Finance Lease 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. Total estimated aggregate base rent payments over the initial 12 -year term of the lease are $87.3 million and payments began in July 2019. The Company has the option to extend the term of the lease by an additional 5 years . As a result of the Company’s involvement during the construction period, whereby the Company had certain indemnification obligations related to the construction, the Company was 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. On September 4, 2018, construction of the Premises was completed. The Company evaluated whether to de-recognize the build-to-suit asset and liability under the “sale-leaseback” accounting guidance. The Company concluded that it lacks transferability of the risks and rewards of ownership and therefore did not meet with the requirements for sale-leaseback accounting. Accordingly, the Company accounts for the New York City office lease as a financing arrangement. The Company vacated its former office space as of September 30, 2018, prior to the expiration of the lease on December 31, 2018. The remaining rent payable, deferred rent and associated leasehold improvements for the former office space were expensed in full on September 30, 2018 and resulted in a charge of $1.5 million recorded as a general and administrative operating expense in the Company’s consolidated statement of operations. As of January 31, 2019, there was no liability associated with the former office space. Operating Leases The Company has entered into non-cancelable 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. 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 former headquarters lease in New York City. The amendment reduced the letter of credit from $1.1 million to $0.5 million . In February 2019, the Company terminated its standby letter of credit after vacating the former NYC office space, as discussed above under Financing Leases . In January 2017, the Company entered into an irrevocable, standby letter of credit with Silicon Valley Bank for $0.4 million , expiring April 2023, 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 , which subsequently increased in March 2020 to $0.5 million , expiring March 2026, to serve as a security deposit for the Company’s lease in Australia. In October 2019, the Company entered into an irrevocable, standby letter of credit with Silicon Valley Bank for $0.3 million , expiring October 2025, to serve as a security deposit for the Company’s additional office space in New York City, as described further below. Lease Costs The components of the Company’s lease costs included in its consolidated statement of operations were as follows (in thousands): January 31, 2020 Finance lease cost: Amortization of finance lease right-of-use assets $ 3,976 Interest on finance lease liabilities 3,639 Operating lease cost 4,712 Short-term lease cost 2,229 Total lease cost $ 14,556 Total rent expense related to financing and operating leases under the previous lease guidance was $10.7 million and $9.1 million for the years ended January 31, 2019 and 2018 , respectively. Balance Sheet Components The balances of the Company’s finance and operating leases were recorded on the consolidated balance sheet as follows (in thousands): January 31, 2020 Finance Lease: Property and equipment, net $ 39,411 Other accrued liabilities (current) 4,633 Other liabilities, non-current 59,257 Operating Leases: Operating lease right-of-use assets $ 11,147 Operating lease liabilities (current) 3,750 Operating lease liabilities, non-current 8,113 Supplemental Information The following table presents supplemental information related to the Company’s finance and operating leases (in thousands, except weighted-average information): January 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance lease $ 1,817 Operating cash flows from operating leases 4,450 Financing cash flows from finance lease 1,915 Right-of-use assets obtained in exchange for lease obligations: Finance lease $ — Operating leases 3,930 Weighted-average remaining lease term (in years): Finance lease 9.9 Operating leases 4.2 Weighted-average discount rate: Finance lease 5.6 % Operating leases 6.2 % Maturities of Lease Liabilities Future minimum lease payments under non-cancelable finance and operating leases on an annual undiscounted cash flow basis as of January 31, 2020 were as follows (in thousands): Year Ending January 31, Finance Lease Operating Leases 2021 $ 8,073 $ 4,352 2022 8,073 2,935 2023 8,073 2,708 2024 8,073 1,266 2025 8,445 848 Thereafter 42,829 1,377 Total minimum payments 83,566 13,486 Less imputed interest (19,676 ) (1,623 ) Present value of future minimum lease payments 63,890 11,863 Less current obligations under leases (4,633 ) (3,750 ) Non-current lease obligations $ 59,257 $ 8,113 Excluded in the lease obligation table above is a new agreement to lease an additional 21,000 square feet of office space in New York City, which will be recognized as an operating lease upon the lease commencement date. The Company entered into this agreement in October 2019 and expects the lease to commence on or around April 2020 for a term of five years with no renewal period. The total estimated aggregate base rent payments are $8.1 million with payments beginning four months subsequent to the commencement date. In December 2019, the Company entered into a new agreement to lease approximately 40,000 square feet of office space in Dublin, Ireland, which will be recognized as an operating lease upon the lease commencement date. Accordingly, this lease is also excluded from the lease obligation table above. The Company expects the lease to commence on or around June 2020 for a term of 12 years with two five-year renewal options. The total estimated aggregate base rent payments, excluding the renewal options, for the Dublin office space are approximately $27.0 million. Future minimum lease payments under non-cancelable financing and operating leases, based on the previous lease accounting standard, as of January 31, 2019 were as follows (in thousands): Year Ending January 31, Financing Lease Operating Leases 2020 $ 3,732 $ 4,578 2021 8,073 3,765 2022 8,073 2,277 2023 8,073 2,224 2024 8,073 922 Thereafter 51,274 2,149 Total minimum payments $ 87,298 $ 15,915 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The following table includes certain non-cancelable agreements primarily for subscription, marketing services and cloud infrastructure capacity commitments entered into by the Company (in thousands): Year Ending January 31, Other Obligations 2021 $ 50,413 2022 56,847 2023 52,496 2024 61,450 2025 10,850 Thereafter — Total minimum payments $ 232,056 Refer to Note 8, Leases , for further details on obligations under non-cancelable finance and operating leases, including future minimum lease payments. Legal Matters From time to time, the Company has become involved in claims, litigation and other legal matters arising in the ordinary course of business including intellectual property claims, labor and employment claims and breach of contract claims. For example, on March 12, 2019, Realtime Data (“Realtime”) filed a lawsuit against the Company in the United States District Court for the District of Delaware alleging that the Company is infringing three U.S. patents that it holds: U.S. Patent No. 9,116,908, U.S. Patent No. 9,667,751 and U.S. Patent No. 8,933,825. The patent infringement allegations in the lawsuit relate to data compression, decompression, storage and retrieval. Realtime seeks monetary damages and injunctive relief. In August 2019, the District Court approved the Company and Realtime’s stipulation to stay Realtime’s lawsuit against the Company pending the outcome of Realtime's appeal of the District Court's decision to invalidate two of the asserted patents in a separate action. The Company investigates these claims, litigation and other legal matters as they arise. Although claims and litigation 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 claims and litigation are inherently unpredictable, the Company believes that there was less than a reasonable possibility that the Company had incurred a material loss with respect to such loss contingencies, as of January 31, 2020 and 2019 , 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, 2020 | |
Equity [Abstract] | |
Stockholders’ Equity (Deficit) | Stockholders’ Equity (Deficit) 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: (1) sale or transfer of such share of Class B common stock, subject to specified permitted transfers; (2) 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 (3) 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, 2020 , 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 48,512,090 shares of Class A common stock were issued and outstanding and 8,969,824 and 8,870,453 |
Revenue
Revenue | 12 Months Ended |
Jan. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of Revenue Based on the information provided to and reviewed by the Company’s Chief Executive Officer, the Company believes that the nature, amount, timing and uncertainty of its revenue and cash flows and how they are affected by economic factors is most appropriately depicted through the Company’s primary geographical markets and subscription product categories. The Company’s primary geographical markets are North and South America (“Americas”); Europe, Middle East and Africa (“EMEA”); and Asia Pacific. The Company also disaggregates its subscription products between its MongoDB Atlas-related offerings, which includes mLab, and other subscription products, which includes MongoDB Enterprise Advanced. The following table presents the Company’s revenues disaggregated by primary geographical markets, subscription product categories and services (in thousands): Years Ended January 31, 2020 2019 2018 Primary geographical markets: Americas $ 272,358 $ 172,688 $ 110,616 EMEA 118,660 79,757 48,129 Asia Pacific 30,702 14,571 7,283 Total $ 421,720 $ 267,016 $ 166,028 Subscription product categories and services: MongoDB Atlas-related $ 162,510 $ 60,241 $ 11,265 Other subscription 237,316 188,150 140,588 Services 21,894 18,625 14,175 Total $ 421,720 $ 267,016 $ 166,028 Customers located in the United States accounted for 59% , 61% and 63% of total revenue for the years ended January 31, 2020 , 2019 and 2018 , respectively. Customers located in the United Kingdom accounted for 10% , 10% and 11% of total revenue for the years ended January 31, 2020 , 2019 and 2018 , respectively. No other country accounted for 10% or more of revenue for the periods presented. As of January 31, 2020 and 2019 , substantially all of the Company’s long-lived assets were located in the United States. Contract Liabilities The Company’s contract liabilities are recorded as deferred revenue in the Company’s consolidated balance sheet and consists of customer invoices issued or payments received in advance of revenues being recognized from the Company’s subscription and services contracts. Deferred revenue, including current and non-current balances as of January 31, 2020 , 2019 and 2018 was $190.8 million , $137.7 million and $100.9 million , respectively. Approximately 29% and 31% of the total revenue recognized in the years ended January 31, 2020 and 2019 was from deferred revenue at the beginning of each respective period. Remaining Performance Obligations Remaining performance obligations represent the aggregate amount of the transaction price in contracts allocated to performance obligations not delivered, or partially undelivered, as of the end of the reporting period. Remaining performance obligations include unearned revenue, multi-year contracts with future installment payments and certain unfulfilled orders against accepted customer contracts at the end of any given period. As of January 31, 2020 , the aggregate transaction price allocated to remaining performance obligations was $210.2 million . Approximately 54% is expected to be recognized as revenue over the next 12 months and the remainder thereafter. The Company applies the practical expedient to omit disclosure with respect to the amount of the transaction price allocated to remaining performance obligations if the related contract has a total duration of 12 months or less. Unbilled Receivables Revenue recognized in excess of invoiced amounts creates an unbilled receivable, which represents the Company’s unconditional right to consideration in exchange for goods or services that the Company has transferred to the customer. Unbilled receivables were recorded as part of accounts receivable, net in the Company’s consolidated balance sheets. As of January 31, 2020 , 2019 and 2018 , unbilled receivables were $6.7 million , $8.0 million and $3.8 million , respectively. Costs Capitalized to Obtain Contracts with Customers Deferred commissions were $77.0 million and $48.6 million as of January 31, 2020 and 2019 , respectively. Amortization expense with respect to deferred commissions was $19.4 million , $14.1 million and $9.9 million for years ended January 31, 2020 , 2019 and 2018 , respectively. There was no impairment loss in relation to the costs capitalized for the periods presented. |
Equity Incentive Plans
Equity Incentive Plans | 12 Months Ended |
Jan. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Equity Incentive Plans | Equity Incentive Plans and Employee Stock Purchase Plan 2008 Stock Incentive Plan and 2016 Equity Incentive Plan The Company adopted the 2008 Stock Incentive Plan (as amended, the “2008 Plan”) in 2008 and the 2016 Equity Incentive Plan (as amended, the “2016 Plan”) in 2016, primarily for the purpose of granting stock-based awards to employees, directors and consultants, including stock options, restricted stock units (“RSUs”) and other stock-based awards. 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, 2020 , the Company had 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 granted to new employees 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, subject to the grantee’s continued service to the Company. RSUs granted to existing employees generally vest quarterly over a period of four years , subject to the grantee’s continued 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, 2018 4,636,564 12,637,435 $ 7.63 7.7 $ 246,227 Authorized 2,528,778 — — Options exercised — (3,144,202 ) 7.06 Early exercised shares repurchased 35,668 — — Options forfeited and expired 872,223 (872,223 ) 8.40 RSUs granted (2,134,844 ) — RSUs forfeited and canceled 128,687 — Balance - January 31, 2019 6,067,076 8,621,010 7.75 6.7 729,392 Authorized 2,716,090 — — Options exercised — (2,163,361 ) 7.76 Early exercised shares repurchased 5,677 — — Options forfeited and expired 278,650 (278,650 ) 11.28 RSUs granted (2,347,359 ) — RSUs forfeited and canceled 306,641 — Balance - January 31, 2020 7,026,775 6,178,999 $ 7.60 5.7 $ 965,860 Options vested and exercisable - January 31, 2019 5,342,183 $ 6.95 6.0 $ 456,275 Options vested and exercisable - January 31, 2020 4,693,273 $ 7.08 5.4 $ 736,034 Options vested and exercisable - Stock options vested and expected to vest -January 31, 2020 6,178,999 $ 7.60 5.7 $ 965,860 The weighted-average grant date fair value of options granted was $4.76 per share during the year ended January 31, 2018. There were no options granted during the years ended January 31, 2020 and 2019 . The intrinsic value of options exercised for the years ended January 31, 2020 , 2019 and 2018 was determined to be $293.9 million , $198.9 million and $4.1 million , respectively. The aggregate grant date fair value of stock options vested during the years ended January 31, 2020 , 2019 and 2018 , was $6.3 million , $15.9 million and $13.5 million , respectively. As of January 31, 2020 , there was $5.1 million of unrecognized stock-based compensation expense related to outstanding stock options granted to employees that is expected to be recognized over a weighted-average period of 1.2 years. The following table summarizes RSU activity for the year ended January 31, 2020 : Shares Weighted-Average Grant Date Fair Value per RSU Unvested - January 31, 2018 245,746 $ 26.20 RSUs granted 2,134,844 54.53 RSUs vested (263,129 ) 42.38 RSUs forfeited and canceled (128,687 ) 42.08 Unvested - January 31, 2019 1,988,774 54.22 RSUs granted 2,347,359 128.25 RSUs vested (748,061 ) 65.96 RSUs forfeited and canceled (306,641 ) 77.59 Unvested - January 31, 2020 3,281,431 $ 102.30 As of January 31, 2020, there was $310.2 million of unrecognized stock-based compensation expense related to outstanding RSUs granted to employees that is expected to be recognized over a weighted-average period of 3.1 years . 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 years ended January 31, 2020 , 2019 and 2018 the Company granted 5,975 , 3,650 and 8,000 units of the China SAR Plan, respectively, at a weighted average strike price of $129.89 , $74.92 and $27.35 per share, respectively. During the years ended January 31, 2020 , 2019 and 2018 , upon the vesting of 4,958 , 14,273 and 9,302 units, respectively, the total expense and liability related to China SAR was $2.1 million , $1.1 million and $0.2 million , respectively. These amounts were recorded as part of the “Accrued compensation and benefits” on the Company’s consolidated balance sheet. During the year ended January 31, 2020, the Company paid $0.2 million in cash upon the exercise of 2,066 units. 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 Company’s Board of Directors adopted and stockholders approved, the 2017 Employee Stock Purchase Plan (the “2017 ESPP”). A total of 995,000 shares of the Company’s Class A common stock were initially authorized for issuance under the ESPP, which subsequently increased to 1,500,755 on February 1, 2018 and to 2,043,973 on February 1, 2019 pursuant to the automatic annual increase feature in the ESPP. As of January 31, 2020, there were 1,514,409 shares of the Company’s Class A common stock available 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. 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 years ended January 31, 2020 and 2019 there were 154,988 and 374,576 shares, respectively, of Class A common stock purchased under the ESPP. During the year ended January 31, 2018 , no shares of Class A common stock were purchased under the ESPP. The total expense related to the ESPP for years ended January 31, 2020 , 2019 and 2018 was $5.1 million , $2.9 million and $0.7 million , respectively. As of January 31, 2020, there was $2.2 million of unrecognized stock-based compensation expense related to the ESPP offering period expected to end in June 2020. 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 $0.2 million , $1.9 million and $2.4 million was recorded during the years ended January 31, 2020 , 2019 and 2018 , 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 (1) the then-current fair market value of the common stock on the date of repurchase and (2) the original purchase price. The proceeds initially are recorded in other current and non-current 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, 2020 and 2019 , the Company issued common stock of 1,064 and 6,059 shares, respectively, for stock options exercised prior to vesting. For the years ended January 31, 2020 and 2019 , the Company repurchased 5,677 and 35,668 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, 2020 and 2019 , there were 14,332 and 59,356 shares, respectively, held by employees and directors that were subject to potential repurchase at an aggregate price of $0.1 million and $0.5 million , respectively. Determination of Fair Value For RSUs, fair value is based on the closing price of the Company’s Class A common stock on the grant date. For stock options, the determination of fair value on the date of grant is based on an option-pricing model, which is utilizes 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, 2020 2019 2018 Expected term (in years) * * 5.85 - 6.20 Expected volatility * * 41.2% - 45.7% Risk-free interest rate * * 1.8% - 2.4% Dividend yield * * 0% * No stock options were granted during the years ended January 31, 2020 and 2019 . 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: Years Ended January 31, 2020 2019 Expected term (in years) 0.49 - 0.54 0.49 - 0.54 Expected volatility 42% - 48% 29% - 54% Risk-free interest rate 1.6% - 2.2% 2.1% - 2.5% Dividend yield 0% 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, 2020 2019 2018 Cost of revenue—subscription $ 4,996 $ 2,047 $ 730 Cost of revenue—services 3,047 1,239 462 Sales and marketing 26,640 11,059 6,364 Research and development 26,686 11,687 5,752 General and administrative 14,407 11,371 7,927 Total stock-based compensation expense $ 75,776 $ 37,403 $ 21,235 |
Net Loss per Share
Net Loss per Share | 12 Months Ended |
Jan. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Net Loss Per Share The Company calculates basic net loss per share by dividing the net loss by the weighted-average number of shares of common stock outstanding during the year, less shares subject to repurchase. Diluted net loss per share is computed by giving effect to all potentially dilutive common stock equivalents outstanding for the period, including stock options and restricted stock units. Refer to Note 2, Summary of Significant Accounting Policies , for further details on the Company’s methodology for calculating net loss per share. Basic and diluted net loss per share was the same for each year presented, as the inclusion of all potential common shares outstanding would have been anti-dilutive due to the net loss reported for each year presented. 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. Each share of Class A common stock is entitled to one vote per share and each share of Class B common stock is entitled to 10 votes per share. As the liquidation and dividend rights are identical for Class A and Class B common stock, the undistributed earnings are allocated on a proportionate basis and the resulting net loss per share 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 (in thousands, except share and per share data): Years Ended January 31, 2020 2019 2018 Numerator: Net loss $ (175,522 ) $ (99,011 ) $ (83,973 ) Denominator: Weighted-average shares used to compute net loss per share, basic and diluted 55,939,032 52,034,596 23,718,391 Net loss per share, basic and diluted $ (3.14 ) $ (1.90 ) $ (3.54 ) The shares underlying the conversion option in the 2024 Notes and 2026 Notes were not considered in the calculation of diluted net loss per share as the effect would have been anti-dilutive. Based on the initial conversion price, the entire outstanding principal amount of the 2024 Notes and 2026 Notes as of January 31, 2020 would have been convertible into approximately 4.4 million shares and 5.4 million shares, respectively, of the Company’s Class A common stock. However, the Company currently expects to settle the principal amount of the 2024 Notes and 2026 Notes in cash. As a result, only the amount by which the conversion value exceeds the aggregate principal amount of the 2024 Notes and 2026 Notes (the “conversion spread”) is considered in the diluted earnings per share computation under the treasury stock method. The conversion spread has a dilutive impact on diluted net income per share when the average market price of the Company’s Class A common stock for a given period exceeds the initial conversion price of $68.15 per share for the 2024 Notes and $211.20 per share for the 2026 Notes. In connection with the issuance of the 2024 Notes and 2026 Notes, the Company entered into Capped Calls, which were not included for purposes of calculating the number of diluted shares outstanding, as their effect would have been anti-dilutive. The Capped Calls are expected to partially offset the potential dilution to the Company’s Class A common stock upon any conversion of the 2024 Notes and 2026 Notes. During the three months ended January 31, 2020 , the average market price of the Company’s Class A common stock was $ 139.22 , which exceeded the initial conversion price of the 2024 Notes. As of January 31, 2020 , the Company had not received any material conversion notices for the 2024 Notes. For disclosure purposes, the Company calculated the potentially dilutive effect of the conversion spread for the 2024 Notes, which is included in the table below. The Company excluded the potentially dilutive effect of the conversion spread for the 2026 Notes as the average market price of the Company’s Class A common stock during the three months ended January 31, 2020 was less than the conversion price of the 2026 Notes. The following weighted-average outstanding potentially dilutive shares of common stock were excluded from the computation of diluted net loss per share for the periods presented because the impact of including them would have been anti-dilutive. Years Ended January 31, 2020 2019 2018 Redeemable convertible preferred stock (as converted) — — 19,534,014 Redeemable convertible preferred stock warrants (as converted) — — 22,592 Common stock warrants — — 90,143 Stock options to purchase Class A common stock 2,145,462 3,174,009 2,552,397 Stock options to purchase Class B common stock 5,076,831 7,691,386 9,612,572 Unvested restricted stock units 2,914,575 1,447,642 — Early exercised stock options 29,532 126,447 236,675 Shares underlying the conversion spread in the 2024 Notes 2,112,279 227,982 — |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of loss before provision for (benefit from) income taxes were as follows (in thousands): Years Ended January 31, 2020 2019 2018 United States $ (117,943 ) $ (50,014 ) $ (49,827 ) Foreign (58,235 ) (52,315 ) (32,859 ) Total $ (176,178 ) $ (102,329 ) $ (82,686 ) The components of the provision for (benefit from) income taxes were as follows (in thousands): Years Ended January 31, 2020 2019 2018 Current: Federal $ 372 $ 76 $ — State 236 134 88 Foreign 2,028 1,442 1,493 Total 2,636 1,652 1,581 Deferred: Federal (2,534 ) (3,389 ) (96 ) State (1,336 ) (704 ) 6 Foreign 578 (877 ) (204 ) Total (3,292 ) (4,970 ) (294 ) Provision for (benefit from) income taxes $ (656 ) $ (3,318 ) $ 1,287 The items accounting for the difference between income taxes computed at the federal statutory income tax rate and the provision for (benefit from) income taxes consisted of the following (in thousands): Years Ended January 31, 2020 2019 2018 Income tax benefit at statutory rate $ (36,997 ) $ (21,474 ) $ (27,958 ) State taxes, net of federal benefit 298 106 564 Impact of foreign income taxes 5,376 5,111 5,555 Stock based compensation (41,800 ) (27,361 ) 1,741 Non-deductible expenses 2,114 1,238 615 Change in valuation allowance 72,263 40,357 (11,791 ) Research and development credits (1,899 ) (1,540 ) (1,146 ) Prior year true ups 59 135 (144 ) Change in tax rate due to the Tax Act — — 33,110 Other (70 ) 110 741 Provision for (benefit from) income taxes $ (656 ) $ (3,318 ) $ 1,287 The overall tax benefit recorded for the current fiscal year is driven by a net release in the Company's valuation allowance on deferred tax assets relative to the prior year, principally as a result of deferred taxes recorded in purchase accounting as part of the Realm acquisition and partially offset by the establishment of the valuation allowance on the net deferred tax assets in the U.K. Impact of the 2017 Tax Cuts and Jobs Act On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) significantly revised the U.S. corporate income tax law, by among other things, reducing the corporate income tax rate to 21% for tax years beginning in 2018, implementing a modified territorial system that includes a one-time transition tax on deemed repatriated earnings of foreign subsidiaries and creating new taxes on certain foreign sourced earnings. As of January 31, 2019, the Company completed its accounting for the income tax effects of the Tax Act, in accordance with the U.S. Securities and Exchange Commission Staff Accounting Bulletin No. 118. Deferred Income Taxes 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, 2020 and 2019 , respectively (in thousands): Years Ended January 31, 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 204,193 $ 121,024 Deferred revenue 31,103 2,663 Finance and operating lease liabilities 19,068 — Other reserves 377 346 Gross deferred tax assets 254,741 124,033 Valuation allowance (136,981 ) (101,502 ) Total deferred tax assets, net of valuation allowance 117,760 22,531 Deferred tax liabilities: Goodwill (55 ) (44 ) Depreciable assets (10,796 ) (2,288 ) Finance and operating lease right-of-use assets (12,681 ) — Convertible senior notes (78,812 ) (19,066 ) Other liabilities and accruals (15,559 ) 16 Total deferred tax liabilities (117,903 ) (21,382 ) Net deferred tax assets (liabilities) $ (143 ) $ 1,149 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. The valuation allowance for deferred tax assets as of January 31, 2020 and 2019 was $137.0 million and $101.5 million , respectively. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. 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. As of January 31, 2020 the Company had net operating loss carryforwards for federal, state, Irish and U.K. income tax purposes of $659.7 million , $475.3 million , $258.8 million and $7.2 million , respectively, which begin to expire in the year ending January 31, 2028 for federal purposes and January 31, 2020 for state purposes. Ireland, U.K. and the U.S. federal losses for years after January 31, 2018 allows net operating losses to be carried forward indefinitely. The Company also has federal research credit carryforwards of $6.6 million , which begin to expire in the year ending January 31, 2029. 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. The annual limitation, should the Company undergo an ownership change, may result in the expiration of federal or state net operating losses and credits before utilization, however the Company does not expect any such limitation to be material. 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 following table summarizes the changes in the Company’s unrecognized gross tax benefits during the periods presented (in thousands): Years Ended January 31, 2020 2019 2018 Unrecognized tax benefits at beginning of year $ 4,603 $ 4,049 $ 4,400 Increase (decrease) in tax positions in prior years 53 (26 ) (1,494 ) Additions based on tax positions in the current year 634 580 1,143 Unrecognized tax benefits at end of year $ 5,290 $ 4,603 $ 4,049 As of January 31, 2020 , 2019 and 2018 there was $0.1 million , $0.1 million and $0.0 million , respectively, of unrecognized tax benefits that would impact our effective tax rate if recognized. The Company continues to evaluate whether to continue applying the exception to the presumption of the repatriation of foreign earnings applying the rules of the Tax Act and continues to be permanently reinvested outside of the United States. The Company has not provided for U.S. federal income and foreign withholding taxes on approximately $1.9 million of undistributed earnings from non-U.S. operations as of January 31, 2020 because the Company intends to reinvest such earnings indefinitely outside of the United States. If the Company were to distribute these earnings, foreign tax credits may become available under current law to reduce the resulting U.S. income tax liability. The Company has estimated the amount of unrecognized deferred tax liability related to these earnings to be approximately $0.2 million . 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 and certain 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, 2014 through January 31, 2019. |
Subsequent Events (Notes)
Subsequent Events (Notes) | 12 Months Ended |
Jan. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events In February 2020, the Company entered into an agreement to expand and extend its lease arrangement for offices in Sydney, Australia. The Company will increase its square footage for a total of approximately 25,000 square feet with total estimated aggregate base rent payments of $3.4 million over a five-year term beginning February 2020. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2020 | |
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, assumptions and judgments 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, the incremental borrowing rate related to the Company’s lease liabilities, stock-based compensation, fair value of the liability component of the convertible debt, fair value of common stock and redeemable convertible preferred stock warrants prior to the initial public offering, 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. The COVID-19 pandemic is expected to result in a global slowdown of economic activity that is likely to decrease demand for a broad variety of goods and services, including from the Company’s customers, while also disrupting sales channels and marketing activities for an unknown period of time. The Company currently expects its revenue to be negatively impacted by the slowdown in activity associated with the COVID-19 pandemic for the year ending January 31, 2021. Estimates and assumptions about future events and their effects cannot be determined with certainty and therefore require the exercise of judgment. As of the date of issuance of these financial statements, the Company is not aware of any specific event or circumstance that would require the Company to update its estimates, assumptions and judgments or revise the carrying value of its assets or liabilities. These estimates may change as new events occur and additional information is obtained and are recognized in the consolidated financial statements as soon as they become known. Actual results could differ from those estimates and any such differences may be material to the Company’s financial statements. |
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. Transaction 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 exchange rate as of the balance sheet date to translate assets and liabilities and the average exchange rate during the period to translate revenue and expenses into U.S. dollars. Translation gains or losses resulting from translating foreign local currency financial statements into U.S. dollars are included |
Comprehensive Loss | The Company’s comprehensive loss includes net loss, unrealized gains and losses on available-for-sale debt securities and foreign currency translation adjustments. |
Cash and Cash Equivalents | The Company considers all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. The Company maintains such investments primarily in money market funds. |
Marketable Securities | The Company’s short-term investments consist of U.S. government treasury securities. 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 debt 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. |
Restricted Cash | Restricted cash balances have been excluded from our cash and cash equivalents balance and are included in other assets on the consolidated balance sheets. |
Fair Value of Financial Instruments | The Company’s financial instruments consist of cash and cash equivalents, short-term investments, accounts receivable, accounts payable and accrued liabilities. Cash equivalents are measured at fair value on a recurring basis. Short-term investments classified as available-for-sale debt securities 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. Assets and liabilities recorded at fair value on a recurring basis in the balance sheets consisting of cash equivalents and short-term investments 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, which include highly liquid money market funds classified as cash equivalents and U.S. government treasury securities classified as short-term investments. |
Concentration of Credit Risk | Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash and 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 insurance coverage 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. The Company does not require collateral from customers to secure accounts receivable. 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 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. |
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, the Company has not capitalized any related software development costs in any of the periods presented. |
Property and Equipment | Property and equipment are recorded at cost and depreciated using the straight-line method over 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 Building Forty years 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. |
Business Combinations | The Company uses its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed as of the acquisition date. The excess of the fair value of purchase consideration over the fair values of these tangible and intangible assets acquired and liabilities assumed is recorded as goodwill. These estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. In addition, uncertain tax positions and tax-related valuation allowances are initially established in connection with a business combination as of the acquisition date. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statements of operations. |
Leases | Accounting Standards Codification 842, Leases , (“ASC 842”) effective February 1, 2019, using the modified retrospective method. The consolidated financial statements for the years ended January 31, 2019 and prior were not adjusted. Refer to Recently Adopted Accounting Pronouncements regarding the adoption impact of ASC 842 for the year ended January 31, 2020. The Company determines if an arrangement is, or contains, a lease at inception. An arrangement is or contains a lease if the arrangement conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To determine whether an arrangement is or contains a lease, the Company considers all relevant facts and circumstances to assess whether the customer has both of the following: (1) the right to obtain substantially all of the economic benefits from use of the identified asset; and (2) the right to direct the use of the identified asset. The Company accounts for lease components and non-lease components as a single lease component for all leases. The Company has elected an accounting policy to not recognize right-of-use assets or lease liabilities for short-term leases, which have a lease term of twelve months or less, and instead recognize the associated lease payments for short-term leases in the consolidated statements of operations on a straight-line basis over the lease term. The Company measures lease liabilities based on the present value of lease payments over the lease term at the lease commencement date. As the Company’s leases generally do not provide an implicit discount rate, the net present value of future minimum lease payments is determined using the Company’s incremental borrowing rate, which is the estimated rate the Company would have to pay on a collateralized basis with similar terms and payments and in a similar economic environment where the leased asset is located. Options in the lease terms to extend or terminate the lease are not reflected in the lease liabilities unless it is reasonably certain that any such options will be exercised. The Company measures right-of-use assets at the lease commencement date based on the corresponding lease liabilities adjusted for (i) prepayments made to the lessor at or before the commencement date, (ii) initial direct costs incurred and (iii) certain tenant incentives under the lease. The Company evaluates the recoverability of the right-of-use assets for possible impairment in accordance with the long-lived assets policy. Lease expenses for minimum lease payments for operating leases are recognized on a straight-line basis over the lease term. Amortization expense of the right-of-use assets for finance leases is generally recognized on a straight-line basis over the shorter of the lease term or the useful life of the asset. Interest expense for finance leases is recognized based on the incremental borrowing rate used to determine the finance lease liability. Variable lease payments are expensed as incurred and are not included within the lease liability and right-of-use assets calculation. Operating leases are reflected in operating lease right-of-use assets, operating lease liabilities and operating lease liabilities, non-current on the consolidated balance sheets. Finance leases are included in property and equipment, net, other accrued liabilities, and other liabilities, non-current on the consolidated balance sheets. Within the statements of cash flows, the Company classifies all cash payments associated with operating leases within operating activities and for finance leases, repayments of principal are presented within financing activities and interest payments are presented within operating activities. |
Long-Lived Assets, Including Other Acquired Intangible Assets | The Company evaluates the recoverability of property and equipment and acquired finite-lived 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. The Company has not recorded any material impairment charges related to property and equipment or acquired finite-lived intangible assets during the years presented. In addition to the recoverability assessment, the Company periodically reviews the remaining estimated useful lives of property and equipment and acquired finite-lived intangible assets. If the estimated useful life assumption for any asset is changed due to new information, the remaining unamortized balance would be depreciated or amortized over the revised estimated useful life, on a prospective basis. |
Goodwill | The Company tests goodwill for impairment at least annually or more frequently if events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable. The Company first assesses the qualitative factors to determine whether it is more likely than not that the fair value of the Company’s single operating segment is less than its carrying amount as a basis for determining whether it is necessary to perform the quantitative goodwill impairment test. If the Company determines that it is more likely than not that its fair value is less than its carrying amount, then the quantitative goodwill impairment test will be performed. The quantitative goodwill impairment test identifies goodwill impairment and measures the amount of goodwill impairment loss to be recognized by comparing the fair value of the Company’s single operating segment with its carrying amount. If the carrying amount exceeds its fair value, no further analysis is required; otherwise, any excess of the goodwill carrying amount over the implied fair value is recognized as an impairment loss and the carrying value of goodwill is written down to fair value. |
Revenue Recognition | The Company derives its revenue from two sources: (1) sales of subscriptions, including term license and post-contract customer support (“PCS”) and consumption-based database-as-a-service offering; and (2) services revenue comprised of consulting and training arrangements. The Company recognizes revenue when its customer obtains control of promised goods or services in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. In determining the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements, the Company performs the following steps: i. Identification of the contract, or contracts, with a customer - The Company contracts with its customers through order forms, which are governed by master sales agreements. The Company determines it has a contract with a customer when the contract is approved, each party’s rights regarding the products or services to be transferred is identified, the payment terms for the services can be identified, the Company has determined the customer has the ability and intent to pay and the contract has commercial substance. The Company applies judgment in determining the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s historical payment experience or, in the case of a new customer, credit, reputation and financial or other information pertaining to the customer. At contract inception, the Company evaluates whether two or more contracts should be combined and accounted for as a single contract and whether the combined or single contract includes more than one performance obligation. The Company has concluded that its contracts with customers do not contain warranties that give rise to a separate performance obligation. ii. Identification of the performance obligations in the contract - Performance obligations promised in a contract are identified based on the services or products that will be transferred to the customer that are both 1) capable of being distinct, whereby the customer can benefit from the service or product either on its own or together with other resources that are readily available from third parties or from the Company and 2) distinct in the context of the contract, whereby the transfer of the services or products is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised services or products, the Company applies judgment to determine whether promised services or products are capable of being distinct and distinct in the context of the contract. If these criteria are not met, the promised services or products are accounted for as a combined performance obligation. iii. Determination of the transaction price - The transaction price is determined based on the consideration to which the Company expects to be entitled in exchange for transferring services and products to the customer. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. None of the Company’s contracts contain a significant financing component. iv. Allocation of the transaction price to the performance obligations in the contract - If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. For contracts that contain multiple performance obligations, the Company allocates the transaction price to each performance obligation based on a relative standalone selling price (“SSP”) basis. The Company also considers if there are any additional material rights inherent in a contract and if so, the Company allocates a portion of the transaction price to such rights based on SSP. The Company determines each SSP based on multiple factors, including past history of selling such performance obligations as standalone products. The Company estimates SSP for performance obligations with no observable evidence using adjusted market, cost plus and residual methods to establish the SSPs. In cases where directly observable standalone sales are not available, the Company utilizes all observable data points including competitor pricing for a similar or identical product, market and industry data points and the Company’s pricing practices to establish the SSP. v. Recognition of revenue when, or as, the Company satisfies a performance obligation - The Company recognizes revenue at the time the related performance obligation is satisfied when control of the services or products are transferred to the customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services or products. The Company records its revenue net of any value added or sales tax. Subscription Revenue The Company sells subscriptions directly through its field and inside sales teams and indirectly through channel partners, as well as through its self-serve channel. The majority of the Company’s subscription contracts are one year in duration and are invoiced upfront. When the Company enters into multi-year subscription contracts, the Company typically invoices the customer on an annual basis. The Company’s subscription contracts are generally non-cancelable and non-refundable. The Company’s subscription revenue includes time-based software licenses sold in conjunction with PCS. These subscription offerings are generally priced on a per server basis, subject to a per server RAM limit. Performance obligations related to subscription revenue for time-based software licenses include a license portion, which represents functional intellectual property under which a customer has the legal right to the license. The license provides significant standalone functionality and is therefore deemed a distinct performance obligation. License revenue is recognized at a point in time, upon delivery and transfer of control of the underlying license to the customer, which is typically the subscription start date. Performance obligations related to PCS include unspecified updates, as well as support and maintenance. While separate performance obligations are identified within PCS, the underlying performance obligations generally have a consistent continuous pattern of transfer to a customer during the term of a contract. Revenue from PCS is recognized ratably over the contract duration. The Company also derives subscription revenue from providing its software to customers with its database-as-a-service offering that include comprehensive infrastructure and management of the Company’s database and can also be purchased with additional enterprise features. Performance obligations related to database-as-a-service solutions are recognized on a usage-basis, as the consumption of this service represents a direct measurement of the value to the customer of the goods or services transferred to date relative to the remaining goods or services promised under the contract. Services Revenue The Company’s services contracts are generally provisioned on a time-and-materials basis. Revenue is recognized on a proportional performance basis as the services are delivered to the customers. Contracts with Multiple Performance Obligations Certain of the Company’s contracts with customers contain multiple performance obligations, including those described above such as the license portion of time-based software licenses, PCS, database-as-a-service offering and services. For these contracts, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative SSP basis. Cost of Revenue Cost of Subscription Revenue Cost of subscription revenue primarily includes personnel costs, including salaries, bonuses and benefits and stock-based compensation, for employees associated with the Company’s subscription arrangements principally related to support and allocated shared costs, as well as depreciation and amortization. The cost of subscription revenue for the Company’s database-as-a-service offering also includes third-party cloud infrastructure. Cost of Services Revenue Cost of services revenue primarily includes personnel costs, including salaries and benefits and stock-based compensation, for employees associated with the Company’s professional service contracts, travel costs and allocated shared costs, as well as depreciation and amortization. Deferred Commissions The Company capitalizes its incremental costs of obtaining non-cancelable subscription contracts with customers, which generally consist of sales commissions paid to the Company’s sales force and related payroll taxes. These costs are recorded on the Company’s consolidated balance sheets as deferred commissions. Amortization is recognized based on the expected future revenue streams under the customer contracts over a period of benefit that the Company has determined to be generally five years . The Company determined the period of benefit by taking into consideration its customer contracts, its technology and other factors. For all other sales commissions and related payroll taxes for non-cancelable subscription contracts, the Company also capitalizes such costs, which are amortized based on the pattern of the associated revenue recognition over the related contractual subscription period. Sales commissions are generally paid up front and one month in arrears, however, the timing of payment 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. Amortization of deferred commissions is included in sales and marketing expense in the consolidated statements of operations. The Company adopted the practical expedient that permits an entity to expense the costs to obtain a contract as incurred when the expected amortization period is one year or less. |
Deferred Revenue | Deferred revenue primarily consists of customer billings or payments received in advance of revenues being recognized from the Company’s subscription and services contracts. The Company generally invoices its customers annually in advance for its subscription services. Typical payment terms provide that customers pay a portion of the total arrangement fee within 30 days of the contract date. Deferred revenue that is anticipated to be recognized during the succeeding twelve-month period is recorded as current deferred revenue and the remaining portion is recorded as non-current. The Company’s contract liabilities are classified as deferred revenue upon the right to invoice or when payments have been received for undelivered products or services. Deferred revenue does not necessarily represent the total contract value of annual or multi-year, non-cancelable subscription agreements. |
Accounts Receivable and Allowance for Doubtful Accounts | The Company records a receivable when an unconditional right to consideration exists and transfer of control has occurred, such that only the passage of time is required before payment of consideration is due. Timing of revenue recognition may differ from the timing of invoicing to customers. If revenue recognized on a contract exceeds the billings, then the Company records an unbilled receivable for that excess amount, which is included as part of accounts receivable, net in the Company’s consolidated balance sheets. Accounts receivable are recorded at the invoiced amounts and do not bear interest. 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. |
Convertible Senior Notes | In accounting for the issuance of the Company’s convertible senior notes (the “Notes”), the Notes were separated into liability and equity components. The carrying amounts of the liability component was calculated by measuring the fair value of similar liabilities that do not have associated convertible features. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the respective Notes. This difference represents the debt discount that is amortized to interest expense over the respective terms of the Notes using the effective interest rate method. The equity component was recorded in additional paid-in capital and is not remeasured as long as it continues to meet the conditions for equity classification. In accounting for the debt issuance costs related to the Notes, the Company allocated the total amount incurred to the liability and equity components of the Notes based on their relative values. Issuance costs attributable to the liability component are being amortized to interest expense over the contractual term of the Notes. The issuance costs attributable to the equity component were netted against the equity component representing the conversion option in additional paid-in capital. |
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 acquired finite-lived intangible assets and allocated overhead. |
Advertising | Advertising costs are expensed 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. |
Stock-Based Compensation | Compensation expense related to stock-based awards granted to employees and non-employees is calculated based on the fair value of stock-based awards on the date of grant. For restricted stock units, fair value is based on the closing price of the Company’s Class A common stock on the grant date. For stock options and purchase rights issued to employees under the 2017 Employee Stock Purchase Plan, the Company determines the grant date fair value using the Black-Scholes option-pricing model. The Company’s stock price volatility and expected option life involve management's best estimates, both of which impact the fair value estimated under the Black-Scholes option-pricing model and, ultimately, the expense that will be recognized. The Company recognizes the related stock-based compensation expense for restricted stock units and stock options 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 . The Company has elected to account for forfeitures as they occur. The Company recognizes the stock-based compensation expense related to the 2017 Employee Stock Purchase Plan on a straight-line basis over the offering period. 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 net loss per share 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 is computed by giving effect to all potentially dilutive common stock equivalents outstanding for the period, including stock options and restricted stock units. Prior to the Company’s closing of its initial public offering in October 2017, the Company calculated 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 had been paid on common stock. See Note 13, Net Loss per Share , for further details on the Company’s historical participating securities, including warrants to purchase redeemable convertible preferred stock and common stock. Under the two-class method, basic net loss per share attributable to common stockholders was 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. The net loss attributable to common stockholders was not allocated to the redeemable convertible preferred stock as the holders of redeemable convertible preferred stock did not have a contractual obligation to share in losses. Diluted net loss per share attributable to common stockholders was 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 were considered common shares equivalents, but had been excluded from the calculation of diluted net loss per share attributable to common stockholders as their effect was anti-dilutive. The Company calculates basic net loss per share by dividing the net loss by the weighted-average number of shares of common stock outstanding during the year, less shares subject to repurchase. Diluted net loss per share is computed by giving effect to all potentially dilutive common stock equivalents outstanding for the period, including stock options and restricted stock units. Refer to Note 2, Summary of Significant Accounting Policies , for further details on the Company’s methodology for calculating net loss per share. Basic and diluted net loss per share was the same for each year presented, as the inclusion of all potential common shares outstanding would have been anti-dilutive due to the net loss reported for each year presented. 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. Each share of Class A common stock is entitled to one vote per share and each share of Class B common stock is entitled to 10 votes per share. As the liquidation and dividend rights are identical for Class A and Class B common stock, the undistributed earnings are allocated on a proportionate basis and the resulting net loss per share will, therefore, be the same for both Class A and Class B common stock on an individual or combined basis. |
Segment Information | The Company operates its business as one operating segment as the Company’s chief operating decision maker, the Company’s Chief Executive Officer, reviews financial information on an aggregate and consolidated basis for purposes of allocating resources and evaluating financial performance. Since the Company has a single operating unit and reporting segment structure, all required segment information can be found in the consolidated financial statements. |
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. Valuation allowances are established when necessary to reduce the deferred tax assets to the amount the Company believes is more likely than not to be realized. 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 (expense), net. 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 Leases . In February 2016, the Financial Accounting Standards Board issued ASU No. 2016-02, codified as ASC 842, which requires lessees to record a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying asset for the lease term while recognizing expense in a manner similar to the previous guidance under ASC 840. ASC 842 retains the distinction between finance leases and operating leases and the classification criteria for finance leases remains similar. The Company adopted the new lease accounting standard effective February 1, 2019 on a modified retrospective basis for leases that existed as of February 1, 2019 using the additional transition method described in ASU No. 2018-11, Leases – Targeted Improvements , which was issued in July 2018. Under the additional transition method, the Company recognized the cumulative effect of initially applying ASC 842 as an adjustment to the right-of-use assets and lease liabilities on its condensed consolidated balance sheet on February 1, 2019 without retrospective application to comparative periods. The Company elected the practical expedients which allow it to carry forward its assessment on whether an arrangement is a lease or contains a lease, the historical lease classification and the initial direct costs for any leases that expired or existed prior to the adoption of ASC 842. In addition, the Company elected the short-term lease exception and the practical expedient to account for lease components and non-lease components as a single lease component. In connection with the adoption of ASC 842, the Company recognized operating lease right-of-use assets and operating lease liabilities on the consolidated balance sheet primarily related to the office facilities of $10.3 million and $11.3 million , respectively. The difference between the operating lease right-of-use assets and operating lease liabilities primarily represented the existing deferred rent liability balance as of the adoption date of $1.0 million . Prior to the adoption of ASC 842, as a result of the Company’s involvement during the construction period, whereby the Company had certain indemnification obligations related to the construction, the Company was considered, for accounting purposes only, the owner of the construction project under build-to-suit lease accounting and accordingly, the Company accounted for the New York City office lease as a financing arrangement. As of January 31, 2019, $55.7 million of the build-to-suit lease asset was included in “Property and equipment, net” and the related $70.2 million financing lease obligation was included in “Other liabilities, non-current” on the consolidated balance sheets. Upon the adoption of ASC 842, this lease was classified as a finance lease, where the Company derecognized its build-to-suit asset and related liabilities, recognized finance right-of-use assets of $43.4 million and finance lease liabilities of $64.0 million , reduced the existing deferred rent liability balance as of the adoption date of $1.9 million , and recorded $4.1 million as a decrease to the opening accumulated deficit as of February 1, 2019. See Note 8, Leases , for further details of the Company’s leases subsequent to the adoption of ASC 842. Stock-Based Compensation. In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting , which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from non-employees, with certain exceptions. The new guidance was effective for the Company for fiscal year beginning February 1, 2019 and the adoption had no material impact on its condensed consolidated financial statements. 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 beginning February 1, 2020. The Company does not expect the adoption of the new accounting standard to have a material impact on its consolidated financial statements. Cloud Computing . In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract , which aligns the accounting for implementation costs incurred in a hosting arrangement that is a service contract with the accounting for implementation costs incurred to develop or obtain internal-use software under ASC 350-40, in order to determine which costs to capitalize and recognize as an asset and which costs to expense. ASU 2018-15 becomes effective for the Company for the fiscal year beginning February 1, 2020. The Company expects to apply ASU 2018-15 prospectively for implementation costs incurred after the date of adoption and does not expect ASU 2018-15 to have a material impact on its consolidated financial statements upon adoption. Credit Losses . In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments, which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost, which includes the Company's accounts receivables, certain financial instruments and contract assets. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. ASU 2016-13 eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. ASU 2016-13 becomes effective for the Company for the fiscal year beginning February 1, 2020 and requires a cumulative effect adjustment to the balance sheet as of the beginning of the first reporting period in which the guidance is effective. The Company is currently evaluating the impact of the adoption of this ASU No. 2016-13 on its consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Accounting Policies [Abstract] | |
Property, plant and equipment | Property and equipment are recorded at cost and depreciated using the straight-line method over 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 Building Forty years Property and equipment, net consists of the following (in thousands): January 31, 2020 January 31, 2019 Servers $ 946 $ 587 Furniture and fixtures 2,673 2,224 Computer and office equipment 229 174 Purchased software 985 985 Leasehold improvements 19,311 16,958 Construction in process 314 16 Building — 56,161 Finance lease right-of-use assets 39,411 — Total property and equipment 63,869 77,105 Less: accumulated depreciation and amortization (5,553 ) (3,441 ) Property and equipment, net $ 58,316 $ 73,664 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
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, 2020 and 2019 and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands): Fair Value Measurement at January 31, 2020 Level 1 Level 2 Level 3 Total Financial Assets: Cash and cash equivalents: Money market funds $ 623,856 $ — $ — $ 623,856 Short-term investments: U.S. government treasury securities 280,326 — — 280,326 Total financial assets $ 904,182 $ — $ — $ 904,182 Fair Value Measurement at January 31, 2019 Level 1 Level 2 Level 3 Total Financial Assets: Cash and cash equivalents: Money market funds $ 88,015 $ — $ — $ 88,015 Short-term investments: U.S. government treasury securities 318,139 — — 318,139 Total financial assets $ 406,154 $ — $ — $ 406,154 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment | Property and equipment are recorded at cost and depreciated using the straight-line method over 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 Building Forty years Property and equipment, net consists of the following (in thousands): January 31, 2020 January 31, 2019 Servers $ 946 $ 587 Furniture and fixtures 2,673 2,224 Computer and office equipment 229 174 Purchased software 985 985 Leasehold improvements 19,311 16,958 Construction in process 314 16 Building — 56,161 Finance lease right-of-use assets 39,411 — Total property and equipment 63,869 77,105 Less: accumulated depreciation and amortization (5,553 ) (3,441 ) Property and equipment, net $ 58,316 $ 73,664 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Business Combinations [Abstract] | |
Summary of US GAAP purchase price | The total merger consideration, after closing adjustments, was $38.8 million , which included adjustments for cash and working capital. The following table represents a summary of the purchase price (in thousands): Amounts Purchase price pursuant to the merger agreement $ 39,000 Estimated cash amount 115 Downward closing working capital adjustment (352 ) Total purchase price to be allocated $ 38,763 |
Schedule of purchase price allocation | The following table summarizes the purchase price allocation fair values of the assets acquired and liabilities and the value of goodwill assumed at the Acquisition Date (in thousands): Estimated Fair Value Financial and tangible assets, net $ 43 Identifiable intangible asset - developed technology 27,300 Identifiable intangible asset - customer relationships 1,700 Deferred revenue (350 ) Goodwill (excluding deferred tax liability impact) 10,070 Total purchase price $ 38,763 |
Goodwill and Acquired Intangi_2
Goodwill and Acquired Intangible Assets, Net (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The following table summarizes the changes in the carrying amount of goodwill during the periods presented (in thousands): January 31, 2020 January 31, 2019 Balance, beginning of the year $ 41,878 $ 1,700 Increase in goodwill related to business combinations 13,952 40,178 Balance, end of the year $ 55,830 $ 41,878 |
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, 2020 Gross Carrying Value Accumulated Amortization Net Book Value Developed technology $ 34,700 $ (11,495 ) $ 23,205 Domain name 155 (151 ) 4 Customer relationships 15,200 (3,630 ) 11,570 Total $ 50,055 $ (15,276 ) $ 34,779 January 31, 2019 Gross Carrying Value Accumulated Amortization Net Book Value Developed technology $ 7,400 $ (4,358 ) $ 3,042 Domain name 155 (128 ) 27 Customer relationships 13,500 (675 ) 12,825 Total $ 21,055 $ (5,161 ) $ 15,894 |
Future amortization expense related to intangible assets | As of January 31, 2020 , future amortization expense related to the intangible assets is as follows (in thousands): Years Ending January 31, 2021 $ 8,504 2022 8,500 2023 8,500 2024 7,825 2025 1,450 Total $ 34,779 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Debt Disclosure [Abstract] | |
Convertible debt schedules | The net carrying amount of the liability component of the 2024 Notes immediately prior to the repurchase was as follows (in thousands): January 14, 2020 2024 Notes Total 2024 Notes Partial Repurchase Principal $ 300,000 $ 209,998 Unamortized debt discount (65,366 ) (45,756 ) Unamortized debt issuance costs (5,175 ) (3,623 ) Net carrying amount $ 229,459 $ 160,619 The 2024 Notes Partial Repurchase resulted in a loss of early extinguishment of debt calculated as follows (in thousands): January 14, 2020 Cash consideration allocated to the liability component $ 175,141 Less: Net carrying amount of the liability component associated with the 2024 Notes Partial Repurchase (160,619 ) Loss from 2024 Notes Partial Repurchase $ 14,522 The net carrying amounts of the liability component of the 2024 Notes and 2026 Notes were as follows (in thousands): January 31, 2020 January 31, 2019 2024 Notes * 2026 Notes 2024 Notes Principal $ 90,002 $ 1,150,000 $ 300,000 Unamortized debt discount (19,435 ) (292,932 ) (77,211 ) Unamortized debt issuance costs (1,541 ) (15,019 ) (5,931 ) Net carrying amount $ 69,026 $ 842,049 $ 216,858 *Reflects the impact of the 2024 Notes Partial Repurchase on January 14, 2020. |
Interest expense related to Notes | The following table sets forth the interest expense related to the 2024 Notes and 2026 Notes (in thousands): Year Ended January 31, 2020 Year Ended January 31, 2019 2024 Notes 2026 Notes 2024 Notes Contractual interest expense $ 2,178 $ 136 $ 1,325 Amortization of debt discount 12,021 1,977 6,956 Amortization of issuance costs 767 82 415 Total $ 14,966 $ 2,195 $ 8,696 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Leases [Abstract] | |
Lease, Cost | The following table presents supplemental information related to the Company’s finance and operating leases (in thousands, except weighted-average information): January 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance lease $ 1,817 Operating cash flows from operating leases 4,450 Financing cash flows from finance lease 1,915 Right-of-use assets obtained in exchange for lease obligations: Finance lease $ — Operating leases 3,930 Weighted-average remaining lease term (in years): Finance lease 9.9 Operating leases 4.2 Weighted-average discount rate: Finance lease 5.6 % Operating leases 6.2 % The components of the Company’s lease costs included in its consolidated statement of operations were as follows (in thousands): January 31, 2020 Finance lease cost: Amortization of finance lease right-of-use assets $ 3,976 Interest on finance lease liabilities 3,639 Operating lease cost 4,712 Short-term lease cost 2,229 Total lease cost $ 14,556 |
Assets And Liabilities, Lessee | The balances of the Company’s finance and operating leases were recorded on the consolidated balance sheet as follows (in thousands): January 31, 2020 Finance Lease: Property and equipment, net $ 39,411 Other accrued liabilities (current) 4,633 Other liabilities, non-current 59,257 Operating Leases: Operating lease right-of-use assets $ 11,147 Operating lease liabilities (current) 3,750 Operating lease liabilities, non-current 8,113 |
Finance Lease, Liability, Maturity | Future minimum lease payments under non-cancelable finance and operating leases on an annual undiscounted cash flow basis as of January 31, 2020 were as follows (in thousands): Year Ending January 31, Finance Lease Operating Leases 2021 $ 8,073 $ 4,352 2022 8,073 2,935 2023 8,073 2,708 2024 8,073 1,266 2025 8,445 848 Thereafter 42,829 1,377 Total minimum payments 83,566 13,486 Less imputed interest (19,676 ) (1,623 ) Present value of future minimum lease payments 63,890 11,863 Less current obligations under leases (4,633 ) (3,750 ) Non-current lease obligations $ 59,257 $ 8,113 |
Lessee, Operating Lease, Liability, Maturity | Future minimum lease payments under non-cancelable finance and operating leases on an annual undiscounted cash flow basis as of January 31, 2020 were as follows (in thousands): Year Ending January 31, Finance Lease Operating Leases 2021 $ 8,073 $ 4,352 2022 8,073 2,935 2023 8,073 2,708 2024 8,073 1,266 2025 8,445 848 Thereafter 42,829 1,377 Total minimum payments 83,566 13,486 Less imputed interest (19,676 ) (1,623 ) Present value of future minimum lease payments 63,890 11,863 Less current obligations under leases (4,633 ) (3,750 ) Non-current lease obligations $ 59,257 $ 8,113 |
Schedule of future minimum lease payments for finance leases | Future minimum lease payments under non-cancelable financing and operating leases, based on the previous lease accounting standard, as of January 31, 2019 were as follows (in thousands): Year Ending January 31, Financing Lease Operating Leases 2020 $ 3,732 $ 4,578 2021 8,073 3,765 2022 8,073 2,277 2023 8,073 2,224 2024 8,073 922 Thereafter 51,274 2,149 Total minimum payments $ 87,298 $ 15,915 |
Schedule of future minimum rental payments for operating leases | Future minimum lease payments under non-cancelable financing and operating leases, based on the previous lease accounting standard, as of January 31, 2019 were as follows (in thousands): Year Ending January 31, Financing Lease Operating Leases 2020 $ 3,732 $ 4,578 2021 8,073 3,765 2022 8,073 2,277 2023 8,073 2,224 2024 8,073 922 Thereafter 51,274 2,149 Total minimum payments $ 87,298 $ 15,915 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of other commitments | The following table includes certain non-cancelable agreements primarily for subscription, marketing services and cloud infrastructure capacity commitments entered into by the Company (in thousands): Year Ending January 31, Other Obligations 2021 $ 50,413 2022 56,847 2023 52,496 2024 61,450 2025 10,850 Thereafter — Total minimum payments $ 232,056 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | The following table presents the Company’s revenues disaggregated by primary geographical markets, subscription product categories and services (in thousands): Years Ended January 31, 2020 2019 2018 Primary geographical markets: Americas $ 272,358 $ 172,688 $ 110,616 EMEA 118,660 79,757 48,129 Asia Pacific 30,702 14,571 7,283 Total $ 421,720 $ 267,016 $ 166,028 Subscription product categories and services: MongoDB Atlas-related $ 162,510 $ 60,241 $ 11,265 Other subscription 237,316 188,150 140,588 Services 21,894 18,625 14,175 Total $ 421,720 $ 267,016 $ 166,028 |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Share-based Payment Arrangement [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, 2018 4,636,564 12,637,435 $ 7.63 7.7 $ 246,227 Authorized 2,528,778 — — Options exercised — (3,144,202 ) 7.06 Early exercised shares repurchased 35,668 — — Options forfeited and expired 872,223 (872,223 ) 8.40 RSUs granted (2,134,844 ) — RSUs forfeited and canceled 128,687 — Balance - January 31, 2019 6,067,076 8,621,010 7.75 6.7 729,392 Authorized 2,716,090 — — Options exercised — (2,163,361 ) 7.76 Early exercised shares repurchased 5,677 — — Options forfeited and expired 278,650 (278,650 ) 11.28 RSUs granted (2,347,359 ) — RSUs forfeited and canceled 306,641 — Balance - January 31, 2020 7,026,775 6,178,999 $ 7.60 5.7 $ 965,860 Options vested and exercisable - January 31, 2019 5,342,183 $ 6.95 6.0 $ 456,275 Options vested and exercisable - January 31, 2020 4,693,273 $ 7.08 5.4 $ 736,034 Options vested and exercisable - Stock options vested and expected to vest -January 31, 2020 6,178,999 $ 7.60 5.7 $ 965,860 |
Schedule of RSU activity | The following table summarizes RSU activity for the year ended January 31, 2020 : Shares Weighted-Average Grant Date Fair Value per RSU Unvested - January 31, 2018 245,746 $ 26.20 RSUs granted 2,134,844 54.53 RSUs vested (263,129 ) 42.38 RSUs forfeited and canceled (128,687 ) 42.08 Unvested - January 31, 2019 1,988,774 54.22 RSUs granted 2,347,359 128.25 RSUs vested (748,061 ) 65.96 RSUs forfeited and canceled (306,641 ) 77.59 Unvested - January 31, 2020 3,281,431 $ 102.30 |
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, 2020 2019 2018 Expected term (in years) * * 5.85 - 6.20 Expected volatility * * 41.2% - 45.7% Risk-free interest rate * * 1.8% - 2.4% Dividend yield * * 0% * No stock options were granted during the years ended January 31, 2020 and 2019 . |
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: Years Ended January 31, 2020 2019 Expected term (in years) 0.49 - 0.54 0.49 - 0.54 Expected volatility 42% - 48% 29% - 54% Risk-free interest rate 1.6% - 2.2% 2.1% - 2.5% Dividend yield 0% 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, 2020 2019 2018 Cost of revenue—subscription $ 4,996 $ 2,047 $ 730 Cost of revenue—services 3,047 1,239 462 Sales and marketing 26,640 11,059 6,364 Research and development 26,686 11,687 5,752 General and administrative 14,407 11,371 7,927 Total stock-based compensation expense $ 75,776 $ 37,403 $ 21,235 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
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 (in thousands, except share and per share data): Years Ended January 31, 2020 2019 2018 Numerator: Net loss $ (175,522 ) $ (99,011 ) $ (83,973 ) Denominator: Weighted-average shares used to compute net loss per share, basic and diluted 55,939,032 52,034,596 23,718,391 Net loss per share, basic and diluted $ (3.14 ) $ (1.90 ) $ (3.54 ) |
Schedule of antidilutive securities excluded from computation of earnings per share | The following weighted-average outstanding potentially dilutive shares of common stock were excluded from the computation of diluted net loss per share for the periods presented because the impact of including them would have been anti-dilutive. Years Ended January 31, 2020 2019 2018 Redeemable convertible preferred stock (as converted) — — 19,534,014 Redeemable convertible preferred stock warrants (as converted) — — 22,592 Common stock warrants — — 90,143 Stock options to purchase Class A common stock 2,145,462 3,174,009 2,552,397 Stock options to purchase Class B common stock 5,076,831 7,691,386 9,612,572 Unvested restricted stock units 2,914,575 1,447,642 — Early exercised stock options 29,532 126,447 236,675 Shares underlying the conversion spread in the 2024 Notes 2,112,279 227,982 — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of loss before provision for income taxes | The components of loss before provision for (benefit from) income taxes were as follows (in thousands): Years Ended January 31, 2020 2019 2018 United States $ (117,943 ) $ (50,014 ) $ (49,827 ) Foreign (58,235 ) (52,315 ) (32,859 ) Total $ (176,178 ) $ (102,329 ) $ (82,686 ) |
Components of the provision for income taxes | The components of the provision for (benefit from) income taxes were as follows (in thousands): Years Ended January 31, 2020 2019 2018 Current: Federal $ 372 $ 76 $ — State 236 134 88 Foreign 2,028 1,442 1,493 Total 2,636 1,652 1,581 Deferred: Federal (2,534 ) (3,389 ) (96 ) State (1,336 ) (704 ) 6 Foreign 578 (877 ) (204 ) Total (3,292 ) (4,970 ) (294 ) Provision for (benefit from) income taxes $ (656 ) $ (3,318 ) $ 1,287 |
Schedule of effective income tax rate reconciliation | The items accounting for the difference between income taxes computed at the federal statutory income tax rate and the provision for (benefit from) income taxes consisted of the following (in thousands): Years Ended January 31, 2020 2019 2018 Income tax benefit at statutory rate $ (36,997 ) $ (21,474 ) $ (27,958 ) State taxes, net of federal benefit 298 106 564 Impact of foreign income taxes 5,376 5,111 5,555 Stock based compensation (41,800 ) (27,361 ) 1,741 Non-deductible expenses 2,114 1,238 615 Change in valuation allowance 72,263 40,357 (11,791 ) Research and development credits (1,899 ) (1,540 ) (1,146 ) Prior year true ups 59 135 (144 ) Change in tax rate due to the Tax Act — — 33,110 Other (70 ) 110 741 Provision for (benefit from) income taxes $ (656 ) $ (3,318 ) $ 1,287 |
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, 2020 and 2019 , respectively (in thousands): Years Ended January 31, 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 204,193 $ 121,024 Deferred revenue 31,103 2,663 Finance and operating lease liabilities 19,068 — Other reserves 377 346 Gross deferred tax assets 254,741 124,033 Valuation allowance (136,981 ) (101,502 ) Total deferred tax assets, net of valuation allowance 117,760 22,531 Deferred tax liabilities: Goodwill (55 ) (44 ) Depreciable assets (10,796 ) (2,288 ) Finance and operating lease right-of-use assets (12,681 ) — Convertible senior notes (78,812 ) (19,066 ) Other liabilities and accruals (15,559 ) 16 Total deferred tax liabilities (117,903 ) (21,382 ) Net deferred tax assets (liabilities) $ (143 ) $ 1,149 |
Summary of activity within unrecognized gross tax benefits | The following table summarizes the changes in the Company’s unrecognized gross tax benefits during the periods presented (in thousands): Years Ended January 31, 2020 2019 2018 Unrecognized tax benefits at beginning of year $ 4,603 $ 4,049 $ 4,400 Increase (decrease) in tax positions in prior years 53 (26 ) (1,494 ) Additions based on tax positions in the current year 634 580 1,143 Unrecognized tax benefits at end of year $ 5,290 $ 4,603 $ 4,049 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Marketable Securities (Details) - USD ($) | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Accounting Policies [Abstract] | ||
Other-than-temporary impairment charges | $ 0 | $ 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Millions | Jan. 31, 2020 | Jan. 31, 2019 |
Accounting Policies [Abstract] | ||
Restricted cash | $ 0.5 | $ 0.5 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Capitalized Software Costs (Details) - USD ($) | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Accounting Policies [Abstract] | ||
Capitalized computer software costs | $ 0 | $ 0 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Property, Plant and Equipment Useful Lives (Details) | 12 Months Ended |
Jan. 31, 2020 | |
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 |
Building | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 40 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Long-Lived Assets, Including Goodwill and Other Acquired Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Accounting Policies [Abstract] | ||
Goodwill impairment | $ 0 | $ 0 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Revenue Recognition (Details) | 12 Months Ended |
Jan. 31, 2020revenue_source | |
Accounting Policies [Abstract] | |
Number of revenue sources | 2 |
Capitalized contract cost, amortization period | 5 years |
Typical payment term period | 30 days |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Advertising (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Accounting Policies [Abstract] | |||
Advertising costs | $ 7.6 | $ 5.1 | $ 3.4 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Stock-Based Compensation (Details) | 12 Months Ended |
Jan. 31, 2020 | |
Accounting Policies [Abstract] | |
Award requisite service period | 4 years |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Segment Information (Details) | 12 Months Ended |
Jan. 31, 2020segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 1 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Related Party Transactions (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Related Party Transactions [Abstract] | |||
Related party transactions | $ 0 | $ 0 | $ 0 |
Due to (from) related parties | $ 0 | $ 0 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Feb. 01, 2019 | Jan. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 11,147 | $ 0 | |
Operating lease, liability | 11,863 | ||
Deferred rent liability | $ 1,000 | ||
Property and equipment, net | 58,316 | 73,664 | |
Finance lease, right-of-use asset | 39,411 | 43,400 | |
Finance lease, liability | 63,890 | 64,000 | |
Cumulative effect of accounting change | (4,103) | ||
ASC 842 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | 10,300 | ||
Operating lease, liability | 11,300 | 70,200 | |
Deferred rent liability | 1,900 | ||
Accumulated Deficit | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of accounting change | $ (4,103) | ||
Accumulated Deficit | ASC 842 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of accounting change | $ (4,100) | ||
Build-to-suit | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property and equipment, net | $ 55,700 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value (Details) - Recurring - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Short-term investments: | ||
Total financial assets | $ 904,182 | $ 406,154 |
Level 1 | ||
Short-term investments: | ||
Total financial assets | 904,182 | 406,154 |
Level 2 | ||
Short-term investments: | ||
Total financial assets | 0 | 0 |
Level 3 | ||
Short-term investments: | ||
Total financial assets | 0 | 0 |
U.S. government treasury securities | ||
Short-term investments: | ||
U.S. government treasury securities | 280,326 | 318,139 |
U.S. government treasury securities | Level 1 | ||
Short-term investments: | ||
U.S. government treasury securities | 280,326 | 318,139 |
U.S. government treasury securities | Level 2 | ||
Short-term investments: | ||
U.S. government treasury securities | 0 | 0 |
U.S. government treasury securities | Level 3 | ||
Short-term investments: | ||
U.S. government treasury securities | 0 | 0 |
Money market funds | ||
Cash and cash equivalents: | ||
Money market funds | 623,856 | 88,015 |
Money market funds | Level 1 | ||
Cash and cash equivalents: | ||
Money market funds | 623,856 | 88,015 |
Money market funds | Level 2 | ||
Cash and cash equivalents: | ||
Money market funds | 0 | 0 |
Money market funds | Level 3 | ||
Cash and cash equivalents: | ||
Money market funds | $ 0 | $ 0 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 63,869 | $ 77,105 |
Less: accumulated depreciation and amortization | (5,553) | (3,441) |
Property and equipment, net | 58,316 | 73,664 |
Servers | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 946 | 587 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 2,673 | 2,224 |
Computer and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 229 | 174 |
Purchased software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 985 | 985 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 19,311 | 16,958 |
Construction in process | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 314 | 16 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 0 | 56,161 |
Finance lease right-of-use assets | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 39,411 | $ 0 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) $ in Thousands | 12 Months Ended | |||
Jan. 31, 2020USD ($)ft² | Jan. 31, 2019USD ($) | Jan. 31, 2018USD ($) | Feb. 01, 2019USD ($) | |
Property, Plant and Equipment [Line Items] | ||||
Rentable area (in sq ft) | ft² | 106,230 | |||
Property and equipment, net | $ 58,316 | $ 73,664 | ||
Operating lease, liability | 11,863 | |||
Depreciation and amortization, property, plant and equipment | $ 2,700 | 2,900 | $ 2,800 | |
ASC 842 | ||||
Property, Plant and Equipment [Line Items] | ||||
Operating lease, liability | 70,200 | $ 11,300 | ||
Build-to-suit | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, net | $ 55,700 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) | May 07, 2019USD ($)asset | Jan. 31, 2020USD ($) | Jul. 31, 2019USD ($) | Jan. 31, 2020USD ($) | Jan. 31, 2019USD ($) |
Business Acquisition [Line Items] | |||||
Goodwill resulting from deferred tax liabilities | $ 55,000 | $ 55,000 | $ 44,000 | ||
Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Weighted average useful life | 3 years 9 months 18 days | ||||
Realm | |||||
Business Acquisition [Line Items] | |||||
Purchase price pursuant to the merger agreement | $ 39,000,000 | ||||
Consideration transferred | $ 38,800,000 | ||||
Number of acquired finite-lived intangible assets | asset | 2 | ||||
Goodwill expected to be tax deductible | $ 0 | ||||
Goodwill adjustment | $ 400,000 | $ 3,500,000 | |||
Goodwill resulting from deferred tax liabilities | $ 3,900,000 | ||||
Acquisition-related costs | $ 600,000 | ||||
Realm | Developed Technology | |||||
Business Acquisition [Line Items] | |||||
Weighted average useful life | 5 years | ||||
Realm | Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Weighted average useful life | 5 years |
Business Combinations - Schedul
Business Combinations - Schedule of Purchase Price Summary (Details) - Realm $ in Thousands | May 07, 2019USD ($) |
Business Acquisition [Line Items] | |
Purchase price pursuant to the merger agreement | $ 39,000 |
Estimated cash amount | 115 |
Downward closing working capital adjustment | (352) |
Total purchase price | $ 38,763 |
Business Combinations - Sched_2
Business Combinations - Schedule of Purchase Price Allocation (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | May 07, 2019 | Jan. 31, 2019 | Jan. 31, 2018 |
Business Acquisition [Line Items] | ||||
Goodwill (excluding deferred tax liability impact) | $ 55,830 | $ 41,878 | $ 1,700 | |
Realm | ||||
Business Acquisition [Line Items] | ||||
Financial and tangible assets, net | $ 43 | |||
Deferred revenue | (350) | |||
Goodwill (excluding deferred tax liability impact) | 10,070 | |||
Total purchase price | 38,763 | |||
Developed Technology | Realm | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | 27,300 | |||
Customer relationships | Realm | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | $ 1,700 |
Goodwill and Acquired Intangi_3
Goodwill and Acquired Intangible Assets, Net - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Goodwill [Roll Forward] | ||
Balance, beginning of the year | $ 41,878 | $ 1,700 |
Increase in goodwill related to business combinations | 13,952 | 40,178 |
Balance, end of the year | $ 55,830 | $ 41,878 |
Goodwill and Acquired Intangi_4
Goodwill and Acquired Intangible Assets, Net - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Jul. 31, 2019 | Jan. 31, 2019 |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Value | $ 50,055 | $ 21,055 | |
Accumulated Amortization | (15,276) | (5,161) | |
Net Book Value | $ 34,779 | 34,779 | 15,894 |
Developed technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Value | 34,700 | 7,400 | |
Accumulated Amortization | (11,495) | (4,358) | |
Net Book Value | 23,205 | 3,042 | |
Domain name | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Value | 155 | 155 | |
Accumulated Amortization | (151) | (128) | |
Net Book Value | 4 | 27 | |
Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Value | 15,200 | 13,500 | |
Accumulated Amortization | (3,630) | (675) | |
Net Book Value | $ 11,570 | $ 12,825 |
Goodwill and Acquired Intangi_5
Goodwill and Acquired Intangible Assets, Net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 10.1 | $ 2.3 | $ 0.9 |
Developed technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 4 years 3 months 18 days | ||
Domain name | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 2 months 12 days | ||
Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 3 years 9 months 18 days |
Goodwill and Acquired Intangi_6
Goodwill and Acquired Intangible Assets, Net - Future Amortization Expense (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Jul. 31, 2019 | Jan. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
2021 | $ 8,504 | ||
2022 | 8,500 | ||
2023 | 8,500 | ||
2024 | 7,825 | ||
2025 | 1,450 | ||
Net Book Value | $ 34,779 | $ 34,779 | $ 15,894 |
Convertible Senior Notes - Addi
Convertible Senior Notes - Additional Information (Details) | Jan. 14, 2020USD ($) | Jan. 31, 2020USD ($)$ / shares | Jul. 31, 2018USD ($)day$ / shares | Jan. 31, 2020USD ($)$ / shares | Jan. 31, 2020USD ($)day$ / shares | Jan. 31, 2019USD ($) | Jan. 31, 2018USD ($) | Jun. 30, 2018USD ($) |
Debt Instrument [Line Items] | ||||||||
Proceeds from borrowings on convertible senior notes, net of issuance costs | $ 1,130,000,000 | $ 1,132,991,000 | $ 291,145,000 | $ 0 | ||||
Effective discount rate | 5.04% | |||||||
Convertible debt, conversion ratio | 4.7349 | 14.6738 | ||||||
Convertible debt, conversion ratio denominator | $ 1,000 | |||||||
Initial conversion price (in dollars per share) | $ / shares | $ 211.20 | $ 68.15 | $ 211.20 | $ 211.20 | ||||
Consecutive threshold trading days | day | 30 | |||||||
Threshold percentage of stock price trigger | 130.00% | |||||||
Carrying amount of convertible debt equity component | $ 84,200,000 | |||||||
Debt issuance costs | $ 5,931,000 | |||||||
Fair value of convertible debt | $ 220,200,000 | $ 220,200,000 | $ 220,200,000 | |||||
Net deferred tax liabilities | 143,000 | 143,000 | 143,000 | |||||
Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Threshold trading days | day | 20 | |||||||
2026 Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issuance costs | 15,019,000 | 15,019,000 | 15,019,000 | |||||
Fair value of convertible debt | 1,200,000,000 | $ 1,200,000,000 | $ 1,200,000,000 | |||||
2024 Notes Partial Repurchase | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issuance costs | $ 3,623,000 | |||||||
Redemption Period 1 | ||||||||
Debt Instrument [Line Items] | ||||||||
Consecutive threshold trading days | day | 30 | 30 | ||||||
Threshold percentage of stock price trigger | 130.00% | 130.00% | ||||||
Redemption Period 1 | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Threshold trading days | day | 20 | 20 | ||||||
Redemption Period 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Convertible debt, conversion ratio denominator | $ 1,000 | |||||||
Threshold trading days | day | 5 | |||||||
Consecutive threshold trading days | day | 5 | |||||||
Redemption Period 2 | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Trading price as a percentage of stock price and debt conversion rate | 98.00% | |||||||
Convertible Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount of debt | 90,000,000 | $ 50,000,000 | $ 250,000,000 | |||||
Interest rate | 0.75% | 0.75% | ||||||
Proceeds from borrowings on convertible senior notes, net of issuance costs | 479,200,000 | $ 291,100,000 | ||||||
Convertible debt, conversion ratio denominator | 100 | $ 100 | $ 100 | |||||
Percentage of principal amount redeemed | 100.00% | |||||||
Debt issuance costs | $ 8,800,000 | |||||||
Effective interest rate | 7.03% | |||||||
Convertible Debt | 2026 Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount of debt | $ 1,000,000,000 | $ 1,000,000,000 | $ 1,000,000,000 | |||||
Interest rate | 0.25% | 0.25% | 0.25% | |||||
Initial conversion price (in dollars per share) | $ / shares | $ 211.20 | $ 211.20 | $ 211.20 | |||||
Carrying amount of convertible debt equity component | $ 294,900,000 | $ 294,900,000 | $ 294,900,000 | |||||
Debt issuance costs | $ 20,300,000 | $ 20,300,000 | $ 20,300,000 | |||||
Effective interest rate | 5.60% | 5.60% | 5.60% | |||||
Net deferred tax liabilities | $ 700,000 | $ 700,000 | $ 700,000 | |||||
Convertible Debt | Additional Convertible Senior Notes Due 2026 | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount of debt | 150,000,000 | 150,000,000 | 150,000,000 | |||||
Convertible Debt | 2024 Notes Partial Repurchase | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount of debt | 210,000,000 | |||||||
Convertible Debt | Convertible Senior Notes, Liability Component | ||||||||
Debt Instrument [Line Items] | ||||||||
Proceeds from borrowings on convertible senior notes, net of issuance costs | 175,141,000 | |||||||
Debt issuance costs | $ 6,300,000 | |||||||
Convertible Debt | Convertible Senior Notes, Equity Component | ||||||||
Debt Instrument [Line Items] | ||||||||
Proceeds from borrowings on convertible senior notes, net of issuance costs | 303,900,000 | |||||||
Debt issuance costs | 2,500,000 | |||||||
Convertible Debt | Convertible Senior Notes, Interest Component | ||||||||
Debt Instrument [Line Items] | ||||||||
Proceeds from borrowings on convertible senior notes, net of issuance costs | $ 200,000 | |||||||
Convertible Debt | Convertible Senior Notes Due 2026, Liability Component | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issuance costs | 15,100,000 | 15,100,000 | 15,100,000 | |||||
Convertible Debt | Convertible Senior Notes Due 2026, Equity Component | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issuance costs | 5,200,000 | 5,200,000 | 5,200,000 | |||||
Equity | ||||||||
Debt Instrument [Line Items] | ||||||||
Carrying amount of convertible debt equity component | $ 81,700,000 | |||||||
Equity | Convertible Debt | 2026 Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Carrying amount of convertible debt equity component | $ 289,000,000 | $ 289,000,000 | $ 289,000,000 |
Convertible Senior Notes - Sche
Convertible Senior Notes - Schedule of Net Carrying Amount of the Liability Component of the Notes (Details) - USD ($) $ in Thousands | Jan. 14, 2020 | Jan. 31, 2020 | Jul. 31, 2018 | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 |
Debt Instrument [Line Items] | ||||||
Principal | $ 300,000 | |||||
Unamortized debt discount | (77,211) | |||||
Unamortized debt issuance costs | (5,931) | |||||
Net carrying amount | 216,858 | |||||
Proceeds from borrowings on convertible senior notes, net of issuance costs | $ 1,130,000 | $ 1,132,991 | 291,145 | $ 0 | ||
Less: Net carrying amount of the liability component associated with the 2024 Notes Partial Repurchase | $ (160,619) | |||||
Loss from 2024 Notes Partial Repurchase | 14,522 | (14,522) | $ 0 | $ 0 | ||
Convertible Debt | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized debt issuance costs | $ (8,800) | |||||
Proceeds from borrowings on convertible senior notes, net of issuance costs | 479,200 | 291,100 | ||||
2024 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Principal | 300,000 | 90,002 | 90,002 | |||
Unamortized debt discount | (65,366) | (19,435) | (19,435) | |||
Unamortized debt issuance costs | (5,175) | (1,541) | (1,541) | |||
Net carrying amount | 229,459 | 69,026 | 69,026 | |||
2024 Notes Partial Repurchase | ||||||
Debt Instrument [Line Items] | ||||||
Principal | 209,998 | |||||
Unamortized debt discount | (45,756) | |||||
Unamortized debt issuance costs | (3,623) | |||||
Net carrying amount | 160,619 | |||||
Convertible Senior Notes, Liability Component | Convertible Debt | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized debt issuance costs | $ (6,300) | |||||
Proceeds from borrowings on convertible senior notes, net of issuance costs | $ 175,141 | |||||
2026 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Principal | 1,150,000 | 1,150,000 | ||||
Unamortized debt discount | (292,932) | (292,932) | ||||
Unamortized debt issuance costs | (15,019) | (15,019) | ||||
Net carrying amount | 842,049 | 842,049 | ||||
2026 Notes | Convertible Debt | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized debt issuance costs | $ (20,300) | $ (20,300) |
Convertible Senior Notes - Sc_2
Convertible Senior Notes - Schedule of Interest Expense for the Notes (Details) - Convertible Debt - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Debt Instrument [Line Items] | ||
Contractual interest expense | $ 1,325 | |
Amortization of debt discount | 6,956 | |
Amortization of issuance costs | 415 | |
Total | $ 8,696 | |
2024 Notes | ||
Debt Instrument [Line Items] | ||
Contractual interest expense | $ 2,178 | |
Amortization of debt discount | 12,021 | |
Amortization of issuance costs | 767 | |
Total | 14,966 | |
2026 Notes | ||
Debt Instrument [Line Items] | ||
Contractual interest expense | 136 | |
Amortization of debt discount | 1,977 | |
Amortization of issuance costs | 82 | |
Total | $ 2,195 |
Convertible Senior Notes - Capp
Convertible Senior Notes - Capped Calls (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 1 Months Ended | 2 Months Ended | 12 Months Ended |
Jan. 31, 2020 | Jul. 31, 2018 | Jan. 31, 2020 | |
Option Indexed to Issuer's Equity [Line Items] | |||
Purchase of capped calls | $ 37,100 | $ 303,929 | |
Capped Calls | |||
Option Indexed to Issuer's Equity [Line Items] | |||
Strike price (in dollars per share) | $ 68.15 | ||
Cap price (in dollars per share) | $ 106.90 | ||
Capped Calls | Class A Common Stock | |||
Option Indexed to Issuer's Equity [Line Items] | |||
Underlying capped calls (in shares) | 4.4 | ||
Convertible Debt | 2026 Notes | |||
Option Indexed to Issuer's Equity [Line Items] | |||
Strike price (in dollars per share) | $ 211.20 | ||
Cap price (in dollars per share) | $ 296.42 | ||
Underlying capped calls (in shares) | 5.4 | ||
Purchase of capped calls | $ 93,800 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Sep. 30, 2018USD ($) | Jan. 31, 2020USD ($)ft² | Jan. 31, 2019USD ($) | Jan. 31, 2018USD ($) | Feb. 29, 2020USD ($) | Dec. 31, 2019ft² | Oct. 31, 2019USD ($)ft² | Oct. 31, 2017USD ($) | Jan. 31, 2017USD ($) | Aug. 31, 2016USD ($) | Jul. 31, 2016USD ($) |
Lessee, Lease, Description [Line Items] | |||||||||||
Rentable office space (in sqft) | ft² | 106,230 | ||||||||||
Term of contract | 12 years | ||||||||||
Total minimum payments | $ 83,566,000 | ||||||||||
Option to extend | P5Y | ||||||||||
Rent expense | $ 1,500,000 | $ 10,700,000 | $ 9,100,000 | ||||||||
Operating lease, liability | $ 11,863,000 | ||||||||||
Term of lease | 12 years | 5 years | |||||||||
NY Office Lease | |||||||||||
Lessee, Lease, Description [Line Items] | |||||||||||
Total minimum payments | 87,300,000 | ||||||||||
Operating lease, liability | 0 | ||||||||||
Area of leased space (in sq ft) | ft² | 21,000 | ||||||||||
Lease not yet commenced, estimated base rent payments | $ 8,100,000 | ||||||||||
Operating Lease in New York | |||||||||||
Lessee, Lease, Description [Line Items] | |||||||||||
Letters of credit outstanding | $ 500,000 | $ 1,100,000 | |||||||||
Operating Lease in Texas | |||||||||||
Lessee, Lease, Description [Line Items] | |||||||||||
Letters of credit outstanding | $ 300,000 | $ 400,000 | |||||||||
Operating Lease in Australia | |||||||||||
Lessee, Lease, Description [Line Items] | |||||||||||
Letters of credit outstanding | $ 200,000 | ||||||||||
Dublin Lease | |||||||||||
Lessee, Lease, Description [Line Items] | |||||||||||
Area of leased space (in sq ft) | ft² | 40,000 | ||||||||||
Lease not yet commenced, estimated base rent payments | $ 27,000,000 | ||||||||||
Subsequent Event | Operating Lease in Australia | |||||||||||
Lessee, Lease, Description [Line Items] | |||||||||||
Letters of credit outstanding | $ 500,000 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Finance lease cost: | |||
Amortization of finance lease right-of-use assets | $ 3,976 | $ 0 | $ 0 |
Interest on finance lease liabilities | 3,639 | ||
Operating lease cost | 4,712 | ||
Short-term lease cost | 2,229 | ||
Total lease cost | $ 14,556 |
Leases - Balance Sheet Componen
Leases - Balance Sheet Components (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Feb. 01, 2019 | Jan. 31, 2019 |
Finance Lease: | |||
Property and equipment, net | $ 39,411 | $ 43,400 | |
Other accrued liabilities (current) | 4,633 | ||
Other liabilities, non-current | 59,257 | ||
Operating Leases: | |||
Operating lease right-of-use assets | 11,147 | $ 0 | |
Operating lease liabilities (current) | 3,750 | 0 | |
Operating lease liabilities, non-current | $ 8,113 | $ 0 |
Leases - Supplemental Informati
Leases - Supplemental Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from finance lease | $ 1,817 | ||
Operating cash flows from operating leases | 4,450 | ||
Financing cash flows from finance lease | 1,915 | $ 0 | $ 0 |
Right-of-use assets obtained in exchange for lease obligations: | |||
Finance lease | 0 | ||
Operating leases | $ 3,930 | ||
Weighted-average remaining lease term (in years): | |||
Finance lease | 9 years 10 months 24 days | ||
Operating leases | 4 years 2 months 12 days | ||
Weighted-average discount rate: | |||
Finance lease | 5.60% | ||
Operating leases | 6.20% |
Leases - Lease Maturities (Deta
Leases - Lease Maturities (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Feb. 01, 2019 | Jan. 31, 2019 |
Finance Lease | |||
2021 | $ 8,073 | ||
2022 | 8,073 | ||
2023 | 8,073 | ||
2024 | 8,073 | ||
2025 | 8,445 | ||
Thereafter | 42,829 | ||
Total minimum payments | 83,566 | ||
Less imputed interest | (19,676) | ||
Present value of future minimum lease payments | 63,890 | $ 64,000 | |
Less current obligations under leases | (4,633) | ||
Non-current lease obligations | 59,257 | ||
Operating Leases | |||
2021 | 4,352 | ||
2022 | 2,935 | ||
2023 | 2,708 | ||
2024 | 1,266 | ||
2025 | 848 | ||
Thereafter | 1,377 | ||
Total minimum payments | 13,486 | ||
Less imputed interest | (1,623) | ||
Present value of future minimum lease payments | 11,863 | ||
Less current obligations under leases | (3,750) | $ 0 | |
Operating lease liabilities, non-current | $ 8,113 | $ 0 |
Leases - Lease Maturities Prior
Leases - Lease Maturities Prior To Adoption of New Lease Standard (Details) $ in Thousands | Jan. 31, 2020USD ($) |
Financing Lease | |
2020 | $ 3,732 |
2021 | 8,073 |
2022 | 8,073 |
2023 | 8,073 |
2024 | 8,073 |
Thereafter | 51,274 |
Total minimum payments | 87,298 |
Operating Leases | |
2020 | 4,578 |
2021 | 3,765 |
2022 | 2,277 |
2023 | 2,224 |
2024 | 922 |
Thereafter | 2,149 |
Total minimum payments | $ 15,915 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Financing and Operating Leases and Other Non-Cancellable Agreements (Details) $ in Thousands | Jan. 31, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2021 | $ 50,413 |
2022 | 56,847 |
2023 | 52,496 |
2024 | 61,450 |
2025 | 10,850 |
Thereafter | 0 |
Total minimum payments | $ 232,056 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) - USD ($) | Jan. 31, 2020 | Jan. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Accrual for contingencies | $ 0 | $ 0 |
Stockholders_ Equity (Deficit)
Stockholders’ Equity (Deficit) (Details) | 12 Months Ended | |||||
Jan. 31, 2020$ / sharesshares | Jan. 31, 2020shares$ / shares | Jan. 31, 2020$ / sharesshares | Jan. 31, 2020vote$ / sharesshares | Jan. 31, 2020class_of_stock$ / sharesshares | Jan. 31, 2019$ / sharesshares | |
Class of Stock [Line Items] | ||||||
Number of class of common stock | class_of_stock | 2 | |||||
Class A Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Number of votes | 1 | 1 | ||||
Common stock authorized (in shares) | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 |
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 |
Common stock issued (in shares) | 48,512,090 | 48,512,090 | 48,512,090 | 48,512,090 | 48,512,090 | 13,303,028 |
Common stock outstanding (in shares) | 48,512,090 | 48,512,090 | 48,512,090 | 48,512,090 | 48,512,090 | 13,303,028 |
Class B Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Number of votes | 10 | 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 | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 113,000,000 |
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 |
Common stock issued (in shares) | 8,969,824 | 8,969,824 | 8,969,824 | 8,969,824 | 8,969,824 | 37,371,914 |
Common stock outstanding (in shares) | 8,870,453 | 8,870,453 | 8,870,453 | 8,870,453 | 8,870,453 | 37,272,543 |
Revenue - Schedule of Disaggreg
Revenue - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Total | $ 421,720 | $ 267,016 | $ 166,028 |
MongoDB Atlas-related | |||
Disaggregation of Revenue [Line Items] | |||
Total | 162,510 | 60,241 | 11,265 |
Other subscription | |||
Disaggregation of Revenue [Line Items] | |||
Total | 237,316 | 188,150 | 140,588 |
Services | |||
Disaggregation of Revenue [Line Items] | |||
Total | 21,894 | 18,625 | 14,175 |
Americas | |||
Disaggregation of Revenue [Line Items] | |||
Total | 272,358 | 172,688 | 110,616 |
EMEA | |||
Disaggregation of Revenue [Line Items] | |||
Total | 118,660 | 79,757 | 48,129 |
Asia Pacific | |||
Disaggregation of Revenue [Line Items] | |||
Total | $ 30,702 | $ 14,571 | $ 7,283 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - Geographic Concentration Risk - Revenue from Contract with Customer | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
United States | |||
Disaggregation of Revenue [Abstract] | |||
Concentration risk, percentage | 59.00% | 61.00% | 63.00% |
United Kingdom | |||
Disaggregation of Revenue [Abstract] | |||
Concentration risk, percentage | 10.00% | 10.00% | 11.00% |
Revenue - Contract Liabilities
Revenue - Contract Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |||
Contract with customer, liability | $ 190.8 | $ 137.7 | $ 100.9 |
Deferred revenue, percent | 29.00% | 31.00% |
Revenue - Remaining Performance
Revenue - Remaining Performance Obligations (Details) $ in Millions | Jan. 31, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation, amount | $ 210.2 |
Remaining performance obligation, percentage | 54.00% |
Performance obligation, expected timing of satisfaction, period | 12 months |
Revenue - Unbilled Receivables
Revenue - Unbilled Receivables (Details) - USD ($) $ in Millions | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 |
Revenue from Contract with Customer [Abstract] | |||
Unbilled Receivables | $ 6.7 | $ 8 | $ 3.8 |
Revenue - Costs Capitalized to
Revenue - Costs Capitalized to Obtain Contracts with Customers (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |||
Capitalized contract costs | $ 77,000,000 | $ 48,600,000 | |
Capitalized contract cost, amortization | 19,400,000 | 14,100,000 | $ 9,900,000 |
Impairment loss for capitalized costs | $ 0 | $ 0 | $ 0 |
Equity Incentive Plans - 2008 a
Equity Incentive Plans - 2008 and 2016 Stock Plan (Details) | 12 Months Ended |
Jan. 31, 2020 | |
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] | |
Award vesting period | 1 year |
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] | |
Award vesting period | 36 months |
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, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Shares Available for Grant | |||
Balance - beginning of period (in shares) | 6,067,076 | 4,636,564 | |
Authorized (in shares) | 2,716,090 | 2,528,778 | |
Early exercised shares repurchased (in shares) | 5,677 | 35,668 | |
Options forfeited and expired (in shares) | 278,650 | 872,223 | |
Balance - end of period (in shares) | 7,026,775 | 6,067,076 | 4,636,564 |
Shares | |||
Balance - beginning of period (in shares) | 8,621,010 | 12,637,435 | |
Options exercised (in shares) | (2,163,361) | (3,144,202) | |
Options forfeited and expired (in shares) | (278,650) | (872,223) | |
Balance - end of period (in shares) | 6,178,999 | 8,621,010 | 12,637,435 |
Options vested and exercisable (in shares) | 4,693,273 | 5,342,183 | |
Options vested and exercisable - Stock options vested and expected to vest (in shares) | 6,178,999 | ||
Weighted- Average Exercise Price Per Share | |||
Balance - beginning of period (in dollars per share) | $ 7.75 | $ 7.63 | |
Options exercised (in dollars per share) | 7.76 | 7.06 | |
Options forfeited and expired (in dollars per share) | 11.28 | 8.40 | |
Balance - end of period (in dollars per share) | 7.60 | 7.75 | $ 7.63 |
Options vested and exercisable (in dollars per share) | 7.08 | $ 6.95 | |
Options vested and exercisable - Stock options vested and expected to vest (in dollars per share) | $ 7.60 | ||
Weighted- Average Remaining Contractual Term (In Years) | |||
Balance | 5 years 8 months 12 days | 6 years 8 months 12 days | 7 years 8 months 12 days |
Options vested and exercisable | 5 years 4 months 24 days | 6 years | |
Stock options vested and expected to vest | 5 years 8 months 12 days | ||
Aggregate Intrinsic Value | |||
Balance | $ 965,860 | $ 729,392 | $ 246,227 |
Options vested and exercisable | 736,034 | $ 456,275 | |
Stock options vested and expected to vest, intrinsic value | $ 965,860 | ||
Restricted Stock Units (RSUs) | |||
Shares Available for Grant | |||
RSUs granted (in shares) | (2,347,359) | (2,134,844) | |
RSUs forfeited and canceled (in shares) | 306,641 | 128,687 |
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, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 2.2 | ||
Weighted-average grant date fair value (in dollars per share) | $ 4.76 | ||
Options granted (in shares) | 0 | ||
Intrinsic value | $ 293.9 | $ 198.9 | $ 4.1 |
Stock options vested, fair value | 6.3 | $ 15.9 | $ 13.5 |
Share-based compensation cost not yet recognized | $ 5.1 | ||
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted (in shares) | 0 | 0 | |
Share-based compensation, period for recognition | 1 year 2 months 12 days | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 310.2 | ||
Share-based compensation, period for recognition | 3 years 1 month 6 days |
Equity Incentive Plans - Sche_2
Equity Incentive Plans - Schedule of RSU Activity (Details) - Restricted Stock Units (RSUs) - $ / shares | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Shares | ||
Unvested - Beginning of period (in shares) | 1,988,774 | 245,746 |
RSUs granted (in shares) | 2,347,359 | 2,134,844 |
RSUs vested (in shares) | (748,061) | (263,129) |
RSUs forfeited and canceled (in shares) | (306,641) | (128,687) |
Unvested - End of period (in shares) | 3,281,431 | 1,988,774 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Unvested - Beginning of period (in dollars per share) | $ 54.22 | $ 26.20 |
RSUs granted (in dollars per share) | 128.25 | 54.53 |
RSUs vested (in dollars per share) | 65.96 | 42.38 |
RSUs forfeited and canceled (in dollars per share) | 77.59 | 42.08 |
Unvested - End of period (in dollars per share) | $ 102.30 | $ 54.22 |
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, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 75,776 | $ 37,403 | $ 21,235 |
Stock Appreciation Rights (SARs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Awards granted (in shares) | 5,975 | 3,650 | 8,000 |
Exercise price of awards granted (in dollars per share) | $ 129.89 | $ 74.92 | $ 27.35 |
Awards vested (in shares) | 4,958 | 14,273 | 9,302 |
Stock-based compensation expense | $ 2,100 | $ 1,100 | $ 200 |
Cash paid for exercise of SARs | $ 200 | ||
SARs exercised (in shares) | 2,066 | ||
Stock Appreciation Rights (SARs) | One Year Anniversary | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year | ||
Vesting rights percentage | 25.00% | ||
Stock Appreciation Rights (SARs) | 25 to 36 Months | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 36 months | ||
Vesting rights percentage | 75.00% |
Equity Incentive Plans - 2017 E
Equity Incentive Plans - 2017 Employee Stock Purchase Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | Feb. 01, 2019 | Feb. 01, 2018 | Oct. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 75,776 | $ 37,403 | $ 21,235 | |||
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 2,200 | |||||
Class A Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares issued (in shares) | 154,988 | 374,576 | 0 | |||
Employee Stock Purchase Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Reserved for future issuance (in shares) | 1,514,409 | 995,000 | ||||
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 | $ 5,100 | $ 2,900 | $ 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) | 2,043,973 | 1,500,755 |
Equity Incentive Plans - Stoc_2
Equity Incentive Plans - Stock Option Repricing (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | 34 Months Ended | |||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2019 | Apr. 13, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options outstanding (in shares) | 6,178,999 | 8,621,010 | 12,637,435 | 8,621,010 | |
Stock Option Repricing | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average exercise price (in dollars per share) | $ 6.50 | ||||
Options outstanding (in shares) | 6,898,736 | ||||
Compensation cost | $ 0.2 | $ 1.9 | $ 2.4 | $ 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) | $ 6.50 |
Equity Incentive Plans - Early
Equity Incentive Plans - Early Exercise of Stock Options (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Issuance of common stock (in shares) | 2,163,361 | 3,144,202 |
Common stock subject to repurchase (in shares) | 14,332 | 59,356 |
Fair value of shares subject to repurchase | $ 0.1 | $ 0.5 |
Early Exercised Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Issuance of common stock (in shares) | 1,064 | 6,059 |
Stock repurchased (in shares) | 5,677 | 35,668 |
Equity Incentive Plans - Sche_3
Equity Incentive Plans - Schedule of Stock Option Valuation Assumptions (Details) - shares | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted (in shares) | 0 | ||
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility, minimum | 41.20% | ||
Expected volatility, maximum | 45.70% | ||
Risk-free interest rate, minimum (as a percent) | 1.80% | ||
Risk-free interest rate, maximum (as a percent) | 2.40% | ||
Dividend yield (as a percent) | 0.00% | ||
Options granted (in shares) | 0 | 0 | |
Employee Stock Option | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 5 years 10 months 6 days | ||
Employee Stock Option | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 years 2 months 12 days |
Equity Incentive Plans - Sche_4
Equity Incentive Plans - Schedule of ESPP Valuation Assumptions (Details) - Employee Stock Purchase Plan | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility, minimum | 42.00% | 29.00% |
Expected volatility, maximum | 48.00% | 54.00% |
Dividend yield (as a percent) | 0.00% | 0.00% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 5 months 27 days | 5 months 27 days |
Risk-free interest rate (as a percent) | 1.60% | 2.10% |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 6 months 15 days | 6 months 15 days |
Risk-free interest rate (as a percent) | 2.20% | 2.50% |
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, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 75,776 | $ 37,403 | $ 21,235 |
Cost of revenue—subscription | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 4,996 | 2,047 | 730 |
Cost of revenue—services | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 3,047 | 1,239 | 462 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 26,640 | 11,059 | 6,364 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 26,686 | 11,687 | 5,752 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 14,407 | $ 11,371 | $ 7,927 |
Net Loss per Share - Additional
Net Loss per Share - Additional Information (Details) | 12 Months Ended | |||
Jan. 31, 2020$ / sharesshares | Jan. 31, 2020shares$ / shares | Jan. 31, 2020vote$ / sharesshares | Jul. 31, 2018$ / shares | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Initial conversion price (in dollars per share) | $ 211.20 | $ 211.20 | $ 211.20 | $ 68.15 |
Class A Common Stock | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Number of votes | 1 | 1 | ||
Class B Common Stock | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Number of votes | 10 | 10 | ||
2024 Notes | Convertible Debt | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Shares issuable upon conversion (in shares) | shares | 4,400,000 | 4,400,000 | 4,400,000 | |
Initial conversion price (in dollars per share) | $ 68.15 | $ 68.15 | $ 68.15 | |
Average market price | $ 139.22 | |||
2026 Notes | Convertible Debt | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Shares issuable upon conversion (in shares) | shares | 5,400,000 | 5,400,000 | 5,400,000 | |
Initial conversion price (in dollars per share) | $ 211.20 | $ 211.20 | $ 211.20 |
Net Loss per Share - Schedule o
Net Loss per Share - Schedule of Basic and Diluted Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Numerator: | |||
Net loss | $ (175,522) | $ (99,011) | $ (83,973) |
Denominator: | |||
Weighted-average shares used to compute net loss per share, basic and diluted (in shares) | 55,939,032 | 52,034,596 | 23,718,391 |
Net loss per share, basic and diluted (in dollars per share) | $ (3.14) | $ (1.90) | $ (3.54) |
Net Loss per Share - Schedule_2
Net Loss per Share - Schedule of Antidilutive Securities Excluded from the Computation of Diluted Net loss per share (Details) - shares | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
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) | 0 | 0 | 19,534,014 |
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) | 0 | 0 | 22,592 |
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) | 0 | 0 | 90,143 |
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) | 2,145,462 | 3,174,009 | 2,552,397 |
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) | 5,076,831 | 7,691,386 | 9,612,572 |
Unvested restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2,914,575 | 1,447,642 | 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) | 29,532 | 126,447 | 236,675 |
Shares underlying the conversion spread in the 2024 Notes | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2,112,279 | 227,982 | 0 |
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, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (117,943) | $ (50,014) | $ (49,827) |
Foreign | (58,235) | (52,315) | (32,859) |
Loss before provision for (benefit from) income taxes | $ (176,178) | $ (102,329) | $ (82,686) |
Income Taxes - Schedule of Co_2
Income Taxes - Schedule of Components of Provision for Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Current: | |||
Federal | $ 372 | $ 76 | $ 0 |
State | 236 | 134 | 88 |
Foreign | 2,028 | 1,442 | 1,493 |
Total | 2,636 | 1,652 | 1,581 |
Deferred: | |||
Federal | (2,534) | (3,389) | (96) |
State | (1,336) | (704) | 6 |
Foreign | 578 | (877) | (204) |
Total | (3,292) | (4,970) | (294) |
Provision for (benefit from) income taxes | $ (656) | $ (3,318) | $ 1,287 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income tax benefit at statutory rate | $ (36,997) | $ (21,474) | $ (27,958) |
State taxes, net of federal benefit | 298 | 106 | 564 |
Impact of foreign income taxes | 5,376 | 5,111 | 5,555 |
Stock based compensation | (41,800) | (27,361) | 1,741 |
Non-deductible expenses | 2,114 | 1,238 | 615 |
Change in valuation allowance | 72,263 | 40,357 | (11,791) |
Research and development credits | (1,899) | (1,540) | (1,146) |
Prior year true ups | 59 | 135 | (144) |
Change in tax rate due to the Tax Act | 0 | 0 | 33,110 |
Other | (70) | 110 | 741 |
Provision for (benefit from) income taxes | $ (656) | $ (3,318) | $ 1,287 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 |
Operating Loss Carryforwards [Line Items] | |||
Valuation allowance | $ 136,981,000 | $ 101,502,000 | |
Unrecognized tax benefits that would impact effective tax rate | 100,000 | $ 100,000 | $ 0 |
Undistributed earnings of foreign subsidiaries | 1,900,000 | ||
Unrecognized deferred tax liability related to undistributed earnings of foreign subsidiaries | 200,000 | ||
Significant change in unrecognized tax benefits within the next twelve months | 0 | ||
Domestic Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 659,700,000 | ||
State and Local Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 475,300,000 | ||
Research Tax Credit Carryforward | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforward, amount | 6,600,000 | ||
Ireland | Foreign Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 258,800,000 | ||
United Kingdom | Foreign Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 7,200,000 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 204,193 | $ 121,024 |
Deferred revenue | 31,103 | 2,663 |
Finance and operating lease liabilities | 19,068 | 0 |
Other reserves | 377 | 346 |
Gross deferred tax assets | 254,741 | 124,033 |
Valuation allowance | (136,981) | (101,502) |
Total deferred tax assets, net of valuation allowance | 117,760 | 22,531 |
Deferred tax liability: | ||
Goodwill | (55) | (44) |
Depreciable assets | (10,796) | (2,288) |
Finance and operating lease right-of-use assets | (12,681) | 0 |
Convertible senior notes | (78,812) | (19,066) |
Other liabilities and accruals | (15,559) | |
Other liabilities and accruals | 16 | |
Total deferred tax liability | (117,903) | (21,382) |
Net deferred tax liabilities | $ (143) | |
Net deferred tax assets | $ 1,149 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits at beginning of year | $ 4,603 | $ 4,049 | $ 4,400 |
Increase in tax positions in prior years | 53 | ||
Decrease in tax positions in prior years | (26) | (1,494) | |
Additions based on tax positions in the current year | 634 | 580 | 1,143 |
Unrecognized tax benefits at end of year | $ 5,290 | $ 4,603 | $ 4,049 |
Subsequent Events (Details)
Subsequent Events (Details) - Sydney Office - Subsequent Event ft² in Thousands, $ in Millions | Feb. 29, 2020USD ($)ft² |
Subsequent Event [Line Items] | |
Area of leased space (in sq ft) | ft² | 25 |
Lease not yet commenced, estimated base rent payments | $ | $ 3.4 |