Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 31, 2015 | Dec. 03, 2015 | |
Document And Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Oct. 31, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | PSTG | |
Entity Registrant Name | Pure Storage, Inc. | |
Entity Central Index Key | 1,474,432 | |
Current Fiscal Year End Date | --01-31 | |
Entity Filer Category | Non-accelerated Filer | |
Class A Common Stock | ||
Document And Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 28,750,000 | |
Class B Common Stock | ||
Document And Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 161,390,400 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Oct. 31, 2015 | Jan. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 573,307 | $ 192,707 |
Accounts receivable, net of allowance of $210 and $566 as of January 31, 2015 and October 31, 2015 | 112,126 | 59,032 |
Inventory | 25,549 | 21,605 |
Deferred commissions, current | 13,612 | 9,431 |
Prepaid expenses and other current assets | 14,028 | 11,195 |
Total current assets | 738,622 | 293,970 |
Property and equipment, net | 47,117 | 39,859 |
Intangible assets, net | 7,306 | 8,284 |
Deferred income taxes, non-current | 4,886 | 5,529 |
Other long-term assets | 20,097 | 14,177 |
Total assets | 818,028 | 361,819 |
Current liabilities: | ||
Accounts payable | 21,684 | 11,007 |
Accrued compensation and benefits | 25,030 | 13,811 |
Accrued expenses and other liabilities | 14,440 | 6,106 |
Deferred revenue, current | 71,481 | 32,199 |
Liability related to early exercised stock options | 4,942 | 6,485 |
Deferred income taxes, current | 5,186 | 5,829 |
Total current liabilities | 142,763 | 75,437 |
Deferred revenue—non-current | 90,175 | 41,470 |
Other long-term liabilities | 1,136 | 802 |
Total liabilities | 234,074 | 117,709 |
Commitments and contingencies (Note 5) | 0 | 0 |
Convertible preferred stock, par value of $0.0001 per share— 123,880 and no shares authorized as of January 31, 2015 and October 31, 2015; 122,281 and no shares issued and outstanding as of January 31, 2015 and October 31, 2015 | 0 | 543,940 |
Stockholders’ (deficit) equity: | ||
Preferred stock, par value of $0.0001 per share— no and 20,000 shares authorized as of January 31, 2015 and October 31, 2015; no shares issued and outstanding as of January 31, 2015 and October 31, 2015 | 0 | 0 |
Class A and Class B common stock, par value of $0.0001 per share— 230,812 (Class A 1, Class B 230,811) and 2,250,000 (Class A 2,000,000, Class B 250,000) shares authorized as of January 31, 2015 and October 31, 2015; 36,465 (Class B 36,465) and 189,980 (Class A 28,750, Class B 161,230) shares issued and outstanding as of January 31, 2015 and October 31, 2015 | 19 | 4 |
Additional paid-in capital | 1,094,976 | 41,749 |
Accumulated deficit | (511,041) | (341,583) |
Total stockholders’ (deficit) equity | 583,954 | (299,830) |
Total liabilities, convertible preferred stock, and stockholders’ (deficit) equity | $ 818,028 | $ 361,819 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Oct. 31, 2015 | Jan. 31, 2015 |
Accounts receivable, net of allowance | $ 566 | $ 210 |
Convertible preferred stock, par value per share | $ 0.0001 | $ 0.0001 |
Convertible preferred stock, shares authorized | 0 | 123,879,952 |
Convertible preferred stock, shares issued | 0 | 122,280,679 |
Convertible preferred stock, shares outstanding | 0 | 122,280,679 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 20,000,000 | 0 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares authorized | 2,250,000,000 | 230,812,000 |
Common stock, shares issued | 189,980,000 | 36,465,000 |
Common stock, shares outstanding | 189,980,000 | 36,465,000 |
Class A Common Stock | ||
Common stock, par value per share | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 2,000,000,000 | 1,000 |
Common stock, shares issued | 28,750,000 | |
Common stock, shares outstanding | 28,750,000 | |
Class B Common Stock | ||
Common stock, par value per share | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 250,000,000 | 230,811,000 |
Common stock, shares issued | 161,229,673 | 36,465,000 |
Common stock, shares outstanding | 161,229,673 | 36,465,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Revenue: | ||||
Product | $ 113,573 | $ 43,753 | $ 248,383 | $ 97,006 |
Support | 17,791 | 5,436 | 41,719 | 11,595 |
Total revenue | 131,364 | 49,189 | 290,102 | 108,601 |
Cost of revenue: | ||||
Product | 41,995 | 16,676 | 92,348 | 39,284 |
Support | 9,058 | 3,827 | 23,479 | 8,751 |
Total cost of revenue | 51,053 | 20,503 | 115,827 | 48,035 |
Gross profit | 80,311 | 28,686 | 174,275 | 60,566 |
Operating expenses: | ||||
Research and development | 43,065 | 22,863 | 112,935 | 63,396 |
Sales and marketing | 63,803 | 38,224 | 171,647 | 109,787 |
General and administrative | 29,022 | 7,415 | 56,941 | 21,834 |
Total operating expenses | 135,890 | 68,502 | 341,523 | 195,017 |
Loss from operations | (55,579) | (39,816) | (167,248) | (134,451) |
Other income (expense), net | (171) | (410) | (1,245) | (717) |
Loss before provision for income taxes | (55,750) | (40,226) | (168,493) | (135,168) |
Provision for income taxes | 751 | 171 | 965 | 428 |
Net loss | $ (56,501) | $ (40,397) | $ (169,458) | $ (135,596) |
Net loss per share attributable to common stockholders, basic and diluted | $ (0.76) | $ (1.43) | $ (3.60) | $ (5.07) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted | 74,565 | 28,280 | 47,109 | 26,769 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 31, 2015 | Oct. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (169,458) | $ (135,596) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 23,118 | 9,751 |
Stock-based compensation expense | 36,198 | 17,241 |
Contribution of common stock to the Pure Good Foundation | 11,900 | 0 |
Other | 0 | 3 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (53,094) | (30,735) |
Inventory | (3,420) | (13,072) |
Deferred commissions | (8,472) | (4,063) |
Prepaid expenses and other assets | (2,065) | (2,368) |
Accounts payable | 10,224 | 4,575 |
Accrued compensation and other liabilities | 17,216 | 7,670 |
Deferred revenue | 87,987 | 36,918 |
Net cash used in operating activities | (49,866) | (109,676) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property and equipment | (29,495) | (30,902) |
Purchases of intangible assets | 0 | (9,125) |
Increase in restricted cash | (2,484) | (1,613) |
Net cash used in investing activities | (31,979) | (41,640) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from initial public offering, net of issuance costs | 459,425 | 0 |
Proceeds from issuance of convertible preferred stock, net of issuance costs | 0 | 280,820 |
Net proceeds from exercise of stock options, including proceeds from repayment of promissory notes | 4,710 | 7,167 |
Repurchase of common stock in connection with a tender offer | 0 | (30,120) |
Payments of deferred offering costs | (1,690) | 0 |
Net cash provided by financing activities | 462,445 | 257,867 |
Net increase in cash and cash equivalents | 380,600 | 106,551 |
Cash and cash equivalents, beginning of period | 192,707 | 130,885 |
Cash and cash equivalents, end of period | 573,307 | 237,436 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash paid for income taxes | 820 | 332 |
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING INFORMATION | ||
Conversion of convertible preferred stock to common stock upon initial public offering | 543,940 | 0 |
Purchase of property and equipment | 1,750 | 1,462 |
Vesting of early exercised stock options and restricted stock awards | 1,543 | 732 |
Cashless exercise of stock options during a tender offer | 0 | 2,057 |
Unpaid deferred offering costs | $ 2,748 | $ 0 |
Business Overview
Business Overview | 9 Months Ended |
Oct. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Business Overview | Note 1. Business Overview Organization and Description of Business Pure Storage, Inc. (the “Company”, “we”, “us”, or other similar pronouns) was originally incorporated in the state of Delaware in October 2009 under the name OS76, Inc. In January 2010, we changed our name to Pure Storage, Inc. We provide an enterprise data storage platform that transforms business through a dramatic increase in performance and reduction in complexity and costs. We are headquartered in Mountain View, California and have wholly owned subsidiaries throughout the world. Initial Public Offering In October 2015, we completed our initial public offering (“IPO”) of Class A common stock, in which we sold 28,750,000 shares. The shares were sold at an initial public offering price of $17.00 per share for net proceeds of $459.4 million, after deducting underwriting discounts and commissions of $29.3 million but before deducting offering costs of $4.5 million of which $2.7 million are expected to be paid by the end of our fiscal year ending on January 31, 2016. Upon the closing of our IPO, all outstanding shares of our convertible preferred stock automatically converted into 122,280,679 shares of Class B common stock. Following the IPO, we have two classes of authorized common stock – Class A common stock and Class B common stock. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Oct. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Note 2. Basis of Presentation and Summary of Significant Accounting Policies Principles of Consolidation The condensed consolidated financial statements include the accounts of the company and our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Unaudited Interim Consolidated Financial Information The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the SEC) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in our prospectus (the Prospectus) filed pursuant to Rule 424(b) under the Securities Exchange Act of 1933, as amended, with the SEC on October 7, 2015. The condensed consolidated balance sheet as of January 31, 2015, included herein was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by U.S. GAAP on an annual reporting basis. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year 2016 or any future period. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and accompanying notes. Actual results could differ from these estimates. Such estimates include, but are not limited to, the determination of best estimate of selling price included in multiple-deliverable revenue arrangements, sales commissions, useful lives of intangible assets and property and equipment, fair values of stock-based awards, provision for income taxes, including related reserves, among others. Management bases its estimates on historical experience and on various other assumptions which are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Restricted Cash Restricted cash is comprised of certificates of deposit related to our leases. As of January 31, 2015 and October 31, 2015, we had restricted cash of $4.6 million and $7.1 million, which was included in other long-term assets in the condensed consolidated balance sheets. Deferred Commissions Deferred commissions consist of direct and incremental costs paid to our sales force related to customer contracts. The deferred commission amounts are recoverable through the revenue streams that will be recognized under the related customer contracts. Direct sales commissions are deferred when earned and amortized over the same period that revenue is recognized from the related customer contract. Amortization of deferred commissions is included in sales and marketing expense in the condensed consolidated statements of operations. As of January 31, 2015 and October 31, 2015, we recorded short-term deferred commissions of $9.4 million and $13.6 million, and long-term deferred commissions of $7.5 million and $11.8 million, in other long-term assets in the condensed consolidated balance sheets. During the three and nine months ended October 31, 2014 and October 31, 2015, we recognized sales commission expenses of $11.7 million, $21.8 million, $16.5 million and $38.6 million, respectively. Recent Accounting Pronouncement Not Yet Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers Revenue from Contracts with Customers |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 3. Fair Value Measurements We define fair value as the exchange price that would be received from sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We measure our financial assets and liabilities at fair value at each reporting period using a fair value hierarchy which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: · Level I —Observable inputs are unadjusted quoted prices in active markets for identical assets or liabilities; · Level II —Observable inputs are quoted prices for similar assets and liabilities in active markets or inputs other than quoted prices that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments; and · Level III —Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. These inputs are based on our own assumptions used to measure assets and liabilities at fair value and require significant management judgment or estimation. We classify our money market funds within Level I because they are valued using quoted market prices. We classify our restricted cash within Level II because they are valued using inputs other than quoted prices which are directly or indirectly observable in the market, including readily-available pricing sources for the identical underlying security which may not be actively traded. The following tables set forth the fair value of our financial assets measured at fair value on a recurring basis as of January 31, 2015 and October 31, 2015 using the above input categories (in thousands): January 31, 2015 Level I Level II Level III Total Financial Assets: Cash and cash equivalents: Money market funds $ 190,621 $ — $ — $ 190,621 Restricted cash: Certificates of deposit — 4,648 — 4,648 Total assets measured at fair value $ 190,621 $ 4,648 $ — $ 195,269 October 31, 2015 Level I Level II Level III Total Financial Assets: Cash and cash equivalents: Money market funds $ 45,614 $ — $ — $ 45,614 Restricted cash: Certificates of deposit — 7,132 — 7,132 Total assets measured at fair value $ 45,614 $ 7,132 $ — $ 52,746 |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Oct. 31, 2015 | |
Balance Sheet Components Disclosure [Abstract] | |
Balance Sheet Components | Note 4. Balance Sheet Components Property and Equipment, Net Property and equipment, net consists of the following (in thousands): January 31, October 31, 2015 2015 Test equipment $ 37,059 $ 58,359 Computer, equipment and software 19,022 25,158 Furniture and fixtures 2,460 2,587 Leasehold improvements 3,776 4,579 Total property and equipment 62,317 90,683 Less: accumulated depreciation and amortization (22,458 ) (43,566 ) Property and equipment, net $ 39,859 $ 47,117 Depreciation and amortization expense was $4.1 million and $8.5 million for the three months ended October 31, 2014 and October 31, 2015 and $9.2 million and $22.1 million for the nine months ended October 31, 2014 and October 31, 2015. Intangible Assets, Net Intangible assets, net consist of the following (in thousands): January 31, 2015 October 31, 2015 Technology patents $ 9,125 $ 9,125 Accumulated amortization (841 ) (1,819 ) Intangible assets, net $ 8,284 $ 7,306 Intangible assets amortization expense was $306,000 and $326,000 for the three months ended October 31, 2014 and October 31, 2015 and $515,000 and $978,000 for the nine months ended October 31, 2014 and October 31, 2015. Due to the defensive nature of these patents, the amortization is included in general and administrative expenses in the condensed consolidated statements of operations. As of October 31, 2015, expected amortization expense for intangible assets for each of the next five years and thereafter is as follows (in thousands): Year Ending January 31, Estimated Future Amortization Expense Remainder of 2016 $ 326 2017 1,304 2018 1,304 2019 1,304 2020 1,304 Thereafter 1,764 Total $ 7,306 Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consist of the following (in thousands): January 31, October 31, 2015 2015 Sales and use tax payable $ 591 $ 583 Accrued professional fees 1,502 2,149 Accrued travel and entertainment expenses 1,138 1,264 Income tax payable 779 941 Other accrued liabilities 2,096 6,786 Accrued deferred offering costs — 2,717 Total accrued expenses and other liabilities $ 6,106 $ 14,440 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 5. Commitments and Contingencies Operating Leases In August 2015, we entered into certain lease agreements for office facilities with total lease obligations of approximately $19.7 million with lease periods expiring through 2023. In connection with these leases, we are required to maintain letters of credit of up to $3.3 million. Purchase Obligations In July 2015 and in November 2015, we entered into non-cancelable contracts of $1.1 million and $6.1 million, respectively, related to certain software services payable through 2018. Letters of Credit As of January 31, 2015 and October 31, 2015, we had outstanding letters of credit in the aggregate amount of $4.6 million and $7.1 million in connection with our facility leases. The letters of credit are collateralized by restricted cash in the same amount and mature at various dates through March 2023. Legal Matters On November 4, 2013, EMC Corporation, or EMC, filed a complaint against us, alleging that our hiring of EMC employees evidences a scheme to misappropriate EMC’s confidential information and trade secrets and to unlawfully interfere with EMC’s business relationships with its customers and contractual relationships with its employees. The complaint seeks damages and injunctive relief. On November 26, 2013, we answered and counterclaimed, denying EMC’s allegations and alleging that EMC surreptitiously obtained and tested our product in a manner that constituted misappropriation of our trade secrets, a breach of contract, breach of the covenant of good faith and fair dealing, unlawful interference with our contractual and business relationships as well as unfair competition and a violation of Massachusetts General Law 93A, Sections 2 and 11. On November 18, 2014, we amended our counterclaim, additionally alleging that EMC has engaged in commercial disparagement, violated the Lanham Act and engaged in defamation. Our counterclaim seeks damages and declaratory and injunctive relief. Fact discovery deadline has passed. Expert discovery is scheduled to conclude on March 18, 2016, and the deadline for filing dispositive motions is April 8, 2016. The district court has scheduled a trial date for October 17, 2016. On November 26, 2013, EMC filed a complaint against us, alleging infringement of five patents held by EMC. The complaint seeks damages and injunctive and equitable relief. On January 17, 2014, we filed a response to the complaint, denying all claims and asserting that EMC’s patents are invalid. Discovery has concluded. Trial is currently scheduled for March 7, 2016. We intend to defend these lawsuits vigorously. The outcome, including our liability, if any, with respect to this litigation, is uncertain. At present, we are unable to estimate a reasonably possible range of loss, if any, that may result from these matters. If an unfavorable outcome were to occur in this litigation, the impact could be material to our business, financial condition or results of operations. From time to time, we have become involved in claims and other legal matters arising in the normal course of business. We investigate these claims as they arise. Although claims are inherently unpredictable, we currently are not aware of any matters that may have a material adverse effect on our business, financial position, results of operations or cash flows. Accordingly we have not recorded any loss contingency on our condensed consolidated balance sheets as of January 31, 2015 and October 31, 2015. |
Line of Credit
Line of Credit | 9 Months Ended |
Oct. 31, 2015 | |
Debt Disclosure [Abstract] | |
Line of Credit | Note 6. Line of Credit In August 2014, we entered into a two-year loan and security agreement with a financial institution to provide up to $15.0 million on a revolving line based on 80% of qualifying accounts receivable. Borrowings under this revolving line of credit bear interest at prime rate plus 1%. Interest expense is paid on a monthly basis based on the principle amount outstanding under the line of credit. The revolving line of credit matures in August 2016. Early termination is allowed but subject to a non-refundable termination fee of $150,000 if terminated on or after the first year from the effective date of the credit facility. Borrowings under this line of credit are collateralized by substantially all of our assets, excluding any intellectual property. We are also required to comply with certain financial covenants, including a minimum quarterly revenue target, delivery of financial and other information, as well as limitations on dispositions, mergers, or consolidations and other corporate activities. The terms of our outstanding loan and security agreements also restrict our ability to pay dividends. As of January 31, 2015 and October 31, 2015, we had no borrowings from this line of credit and we were in compliance with our financial covenants. In September 2015, we entered into a non-binding engagement letter with Silicon Valley Bank for an additional credit facility pursuant to which Silicon Valley Bank would serve as the lead arranger of a syndicate of banks. In November 2015, the non-binding engagement letter was terminated. |
Convertible Preferred Stock
Convertible Preferred Stock | 9 Months Ended |
Oct. 31, 2015 | |
Temporary Equity [Abstract] | |
Convertible Preferred Stock | Note 7. Convertible Preferred Stock Upon the closing of our IPO in October 2015, all shares of our then-outstanding convertible preferred stock automatically converted on a one-to-one basis into an aggregate of 122,280,679 shares of Class B common stock. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Oct. 31, 2015 | |
Equity [Abstract] | |
Stockholders’ Equity | Note 8. Stockholders’ Equity Preferred Stock Upon the closing of our IPO in October 2015, we filed an Amended and Restated Certificate of Incorporation, which authorized 20,000,000 shares of undesignated preferred stock, the rights, preferences and privileges of which may be designated from time to time by our board of directors. As of October 31, 2015, there were 20,000,000 shares of preferred stock authorized with a par value of $0.0001 per share, and no shares of preferred stock were issued or outstanding. Class A and Class B Common Stock We have two classes of authorized common stock, Class A common stock and Class B common stock. As of October 31, 2015, we had 2,000,000,000 shares of Class A common stock authorized with a par value of $0.0001 per share and 250,000,000 shares of Class B common stock authorized with a par value of $0.0001 per share. As of October 31, 2015, 28,750,000 shares of Class A common stock were issued and outstanding and 161,229,673 shares of Class B common stock were issued and outstanding. In August 2015, we established the Pure Good Foundation as a non-profit organization, and in September 2015 we issued 700,000 shares of our Class B common stock to this foundation. As a result, we incurred a one-time general and administrative expense of $11.9 million during the three months ended October 31, 2015, the amount of which was equal to the fair value of the shares of Class B common stock issued. We anticipate that the proposed programs of the Pure Good Foundation will include grants, humanitarian relief, volunteerism and social development projects. We believe that the Pure Good Foundation will foster employee morale, strengthen our community presence and provide increased brand visibility. |
Equity Incentive Plans
Equity Incentive Plans | 9 Months Ended |
Oct. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity Incentive Plans | Note 9. Equity Incentive Plans Equity Incentive Plans We maintain two equity incentive plans: the 2009 Equity Incentive Plan (our “2009 Plan”) and the 2015 Equity Incentive Plan (our “2015 Plan”). In August 2015, our board of directors adopted, and in September 2015 our stockholders approved, the 2015 Plan, which became effective in connection with our IPO in October 2015 and serves as the successor to our 2009 Plan. We have initially reserved 27,000,000 shares of our Class A common stock for issuance under our 2015 Plan. Our 2015 Plan provides for the issuance of incentive stock options to our employees and nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance stock awards, performance cash awards, and other forms of stock awards to our employees, directors and consultants. No new awards will be issued under our 2009 Plan after the effective date of our 2015 Plan. Outstanding awards granted under our 2009 Plan will remain subject to the terms of our 2009 Plan and applicable award agreements, until such outstanding awards that are stock options are exercised, terminated or expired by their terms, and until any restricted stock awards become vested or are forfeited. Our equity awards generally vest over a two to four year period and expire no later than ten years from the date of grant. As of October 31, 2015, 26,476,500 shares of our Class A common stock were reserved for future issuance under the 2015 Plan. 2015 Employee Stock Purchase Plan In August 2015, our board of directors adopted and our stockholders approved, the 2015 Employee Stock Purchase Plan (“2015 ESPP”), which became effective in connection with our IPO in October 2015. A total of 3,500,000 shares of Class A common stock was initially reserved for issuance under the 2015 ESPP. The 2015 ESPP allows eligible employees to purchase shares of our Class A common stock at a discount through payroll deductions (or other payroll contributions) of up to 30% of their eligible compensation, subject to a cap of 3,000 shares on any purchase date or $25,000 in any calendar year (as determined under applicable tax rules). Except for the initial offering period, the 2015 ESPP provides for 24 month offering periods beginning March and September of each year, and each offering period will consist of four six-month purchase periods. The initial offering period began in October 2015, and will end on September 15, 2017. On each purchase date, eligible employees will purchase our Class A common stock at a price per share equal to 85% of the lesser of the fair market value of our Class A common stock (1) on the first trading day of the applicable offering period or (2) the purchase date. For the first offering period, the fair market value of our Class A common stock on the offering date was $17.00, the price at which our Class A common stock was first sold to the public in our IPO. As of October 31, 2015, 3,500,000 shares were reserved for future issuance under the 2015 ESPP. Stock Options A summary of activity under our equity incentive plans and related information is as follows: Options Outstanding Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value (In Thousands) Balance as of January 31, 2015 54,284,474 $ 3.02 8.3 $ 523,654 Options granted 18,159,824 15.77 Options exercised (1,784,066 ) 2.64 Options cancelled (1,730,681 ) 7.09 Balance as of October 31, 2015 68,929,551 6.29 Vested and exercisable as of October 31, 2015 21,903,812 1.71 6.8 $ 348,767 Vested and expected to vest as of October 31, 2015 66,851,238 6.22 8.1 $ 763,519 As of October 31, 2015, total unrecognized employee compensation cost, net of estimated forfeitures, was $210.7 million, which is expected to be recognized over a weighted-average period of 3.85 years. During the three and nine months ended October 31, 2014 and 2015, we granted options to purchase 90,000, 415,000 50,000 and 133,000 shares of common stock that vest upon satisfaction of a performance condition, respectively. For all the options that vest upon satisfaction of a performance condition, management determined it is probable that the performance condition will be satisfied and, accordingly, the related stock-based compensation expense of $407,000, $1.1 million, $797,000 and $1.8 million was recognized during the three and nine months ended October 31, 2014 and 2015, respectively. 2015 ESPP During the three months ended October 31, 2015, we recognized $907,000 of stock-based compensation expense related to the 2015 ESPP. As of October 31, 2015, there was $25.9 million of unrecognized stock-based compensation expense related to our 2015 ESPP that is expected to be recognized over the remaining term of the initial offering period. Determination of Fair Value The fair value of shares to be purchased under ESPP is estimated on the grant date using the Black-Scholes option pricing model. This valuation model for stock-based compensation expense requires us to make assumptions and judgments about the variables used in the calculation including expected term, the expected volatility of the common stock, a risk-free interest rate and expected dividend yield. We estimated the fair value of ESPP purchase rights using a Black-Scholes option pricing model with the following assumptions: Three Months Ended October 31, Nine Months Ended October 31, 2014 2015 2014 2015 Expected term (in years) — 0.4 – 1.9 — 0.4 – 1.9 Expected volatility — 49 % — 49 % Risk-free interest rate — 0.1% - 0.7 % — 0.1% - 0.7 % Dividend rate — — — — The assumptions used in the Black-Scholes option pricing model were determined as follows. Expected Term —The expected term represents the period that our stock-based awards are expected to be outstanding. The expected term assumptions were determined based on the contractual lives of the ESPP purchase rights. Expected Volatility —Since we do not have a substantive trading history of our common stock, the expected volatility was derived from the average historical stock volatilities of several public companies within the same industry that we consider to be comparable to our business over a period equivalent to the expected term of the ESPP purchase rights. 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 expected term of the ESPP purchase rights. Dividend Rate —We have never declared or paid any cash dividends and do not plan to pay cash dividends in the foreseeable future, and, therefore, use an expected dividend yield of zero. Non-Employee Stock Option Awards We granted non-employee stock options to purchase 22,500 shares of common stock during the three months ended October 31, 2015, and 7,500 and 22,500 shares of common stock during the nine months ended October 31, 2014 and 2015. No stock options were granted to non-employees during the three months ended October 31, 2014. We recognized stock-based compensation expense related to non-employee stock options of $483,000 and $93,000 for the three months ended October 31, 2014 and 2015 and $1.9 million and $975,000 for the nine months ended October 31, 2014 and 2015. Stock-Based Compensation Expense The following table summarizes the components of stock-based compensation expense recognized in the condensed consolidated statements of operations (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2014 2015 2014 2015 Cost of revenue—product $ 35 $ 43 $ 264 $ 139 Cost of revenue—support 159 657 1,057 1,511 Research and development 3,399 8,195 18,546 18,624 Sales and marketing 2,315 4,559 19,676 10,539 General and administrative 823 2,085 5,331 5,385 Total stock-based compensation expense $ 6,731 $ 15,539 $ 44,874 $ 36,198 The stock-based compensation expense for the nine months ended October 31, 2014 included $27.6 million related to the repurchase of common stock in excess of fair value in connection with a tender offer. |
Net Loss per Share Attributable
Net Loss per Share Attributable to Common Stockholders | 9 Months Ended |
Oct. 31, 2015 | |
Earnings Per Share [Abstract] | |
Net Loss per Share Attributable to Common Stockholders | Note 10. Net Loss per Share Attributable to Common Stockholders Basic and diluted net loss per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities. We consider all series of our convertible preferred stock to be participating securities. Under the two-class method, the net loss attributable to common stockholders is not allocated to the convertible preferred stock as the holders of our convertible preferred stock do not have a contractual obligation to share in our losses. Basic net loss per share attributable to common stockholders is computed 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 diluted net loss per share attributable to common stockholders is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, convertible preferred stock, stock options, restricted stock awards and early exercised stock options are considered to be common stock equivalents but have been excluded from the calculation of diluted net loss per share attributable to common stockholders as their effect is anti-dilutive. The rights, including the liquidation and dividend rights, of the holders of our Class A and Class B common stock are identical, except with respect to voting. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis and the resulting net loss per share attributed to common stockholders will, therefore, be the same for both Class A and Class B common stock on an individual or combined basis. We did not present dilutive net loss per share on an if-converted basis because the impact was not dilutive. The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except per share data): Three Months Ended October 31, Nine Months Ended October 31, 2014 2015 2014 2015 Net loss $ (40,397 ) $ (56,501 ) $ (135,596 ) $ (169,458 ) Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 28,280 74,565 26,769 47,109 Net loss per share attributable to common stockholders, basic and diluted $ (1.43 ) $ (0.76 ) $ (5.07 ) $ (3.60 ) The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2014 2015 2014 2015 Convertible preferred stock (on an if-converted basis) 122,250 — 116,215 — Stock options to purchase common stock 50,433 63,738 49,589 59,611 Early exercised stock options and restricted stock awards 7,871 3,318 9,086 3,849 Total 180,554 67,056 174,890 63,460 |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11. Income Taxes Our provision for income taxes was primarily due to taxes on international operations and state income taxes. The difference between the provision for income taxes that would be derived by applying the statutory rate to our income (loss) before income taxes and the provision for income taxes recorded was primarily attributable to the difference in foreign tax rates and creation of the US tax attributes that were subject to a full valuation allowance. As of October 31, 2015, there were no material changes to either the nature or the amounts of the uncertain tax positions previously determined for the fiscal year ended January 31, 2015. |
Segment Information
Segment Information | 9 Months Ended |
Oct. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Note 12. Segment Information Our chief operating decision maker is a group which is comprised of our Chief Executive Officer, our Chief Financial Officer, and our President. This group reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. We have one business activity and there are no segment managers who are held accountable for operations or operating results. Accordingly, we have a single reportable segment. The following table sets forth revenue by geographic area based on the billing address of our customers (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2014 2015 2014 2015 United States $ 39,574 $ 105,615 $ 84,844 $ 229,892 Rest of the world 9,615 25,749 23,757 60,210 Total revenue $ 49,189 $ 131,364 $ 108,601 $ 290,102 Long-lived assets by geographic area are summarized as follows (in thousands): January 31, October 31, 2015 2015 United States $ 39,069 $ 45,756 Rest of the world 790 1,361 Total long-lived assets $ 39,859 $ 47,117 |
Basis of Presentation and Sum18
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 31, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of the company and our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Unaudited Interim Consolidated Financial Information | Unaudited Interim Consolidated Financial Information The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the SEC) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in our prospectus (the Prospectus) filed pursuant to Rule 424(b) under the Securities Exchange Act of 1933, as amended, with the SEC on October 7, 2015. The condensed consolidated balance sheet as of January 31, 2015, included herein was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by U.S. GAAP on an annual reporting basis. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year 2016 or any future period. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and accompanying notes. Actual results could differ from these estimates. Such estimates include, but are not limited to, the determination of best estimate of selling price included in multiple-deliverable revenue arrangements, sales commissions, useful lives of intangible assets and property and equipment, fair values of stock-based awards, provision for income taxes, including related reserves, among others. Management bases its estimates on historical experience and on various other assumptions which are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. |
Restricted Cash | Restricted Cash Restricted cash is comprised of certificates of deposit related to our leases. As of January 31, 2015 and October 31, 2015, we had restricted cash of $4.6 million and $7.1 million, which was included in other long-term assets in the condensed consolidated balance sheets. |
Deferred Commissions | Deferred Commissions Deferred commissions consist of direct and incremental costs paid to our sales force related to customer contracts. The deferred commission amounts are recoverable through the revenue streams that will be recognized under the related customer contracts. Direct sales commissions are deferred when earned and amortized over the same period that revenue is recognized from the related customer contract. Amortization of deferred commissions is included in sales and marketing expense in the condensed consolidated statements of operations. As of January 31, 2015 and October 31, 2015, we recorded short-term deferred commissions of $9.4 million and $13.6 million, and long-term deferred commissions of $7.5 million and $11.8 million, in other long-term assets in the condensed consolidated balance sheets. During the three and nine months ended October 31, 2014 and October 31, 2015, we recognized sales commission expenses of $11.7 million, $21.8 million, $16.5 million and $38.6 million, respectively. |
Recent Accounting Pronouncement Not Yet Adopted | Recent Accounting Pronouncement Not Yet Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers Revenue from Contracts with Customers |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The following tables set forth the fair value of our financial assets measured at fair value on a recurring basis as of January 31, 2015 and October 31, 2015 using the above input categories (in thousands): January 31, 2015 Level I Level II Level III Total Financial Assets: Cash and cash equivalents: Money market funds $ 190,621 $ — $ — $ 190,621 Restricted cash: Certificates of deposit — 4,648 — 4,648 Total assets measured at fair value $ 190,621 $ 4,648 $ — $ 195,269 October 31, 2015 Level I Level II Level III Total Financial Assets: Cash and cash equivalents: Money market funds $ 45,614 $ — $ — $ 45,614 Restricted cash: Certificates of deposit — 7,132 — 7,132 Total assets measured at fair value $ 45,614 $ 7,132 $ — $ 52,746 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Balance Sheet Components Disclosure [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consists of the following (in thousands): January 31, October 31, 2015 2015 Test equipment $ 37,059 $ 58,359 Computer, equipment and software 19,022 25,158 Furniture and fixtures 2,460 2,587 Leasehold improvements 3,776 4,579 Total property and equipment 62,317 90,683 Less: accumulated depreciation and amortization (22,458 ) (43,566 ) Property and equipment, net $ 39,859 $ 47,117 |
Schedule of Intangible Assets, Net | Intangible assets, net consist of the following (in thousands): January 31, 2015 October 31, 2015 Technology patents $ 9,125 $ 9,125 Accumulated amortization (841 ) (1,819 ) Intangible assets, net $ 8,284 $ 7,306 |
Schedule of Expected Amortization Expenses for Intangible Assets | As of October 31, 2015, expected amortization expense for intangible assets for each of the next five years and thereafter is as follows (in thousands): Year Ending January 31, Estimated Future Amortization Expense Remainder of 2016 $ 326 2017 1,304 2018 1,304 2019 1,304 2020 1,304 Thereafter 1,764 Total $ 7,306 |
Schedule of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consist of the following (in thousands): January 31, October 31, 2015 2015 Sales and use tax payable $ 591 $ 583 Accrued professional fees 1,502 2,149 Accrued travel and entertainment expenses 1,138 1,264 Income tax payable 779 941 Other accrued liabilities 2,096 6,786 Accrued deferred offering costs — 2,717 Total accrued expenses and other liabilities $ 6,106 $ 14,440 |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity Under Equity Incentive Plans and Related Information | A summary of activity under our equity incentive plans and related information is as follows: Options Outstanding Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value (In Thousands) Balance as of January 31, 2015 54,284,474 $ 3.02 8.3 $ 523,654 Options granted 18,159,824 15.77 Options exercised (1,784,066 ) 2.64 Options cancelled (1,730,681 ) 7.09 Balance as of October 31, 2015 68,929,551 6.29 Vested and exercisable as of October 31, 2015 21,903,812 1.71 6.8 $ 348,767 Vested and expected to vest as of October 31, 2015 66,851,238 6.22 8.1 $ 763,519 |
Summary of Estimated Fair Value of Employee Purchase Plan | We estimated the fair value of ESPP purchase rights using a Black-Scholes option pricing model with the following assumptions: Three Months Ended October 31, Nine Months Ended October 31, 2014 2015 2014 2015 Expected term (in years) — 0.4 – 1.9 — 0.4 – 1.9 Expected volatility — 49 % — 49 % Risk-free interest rate — 0.1% - 0.7 % — 0.1% - 0.7 % Dividend rate — — — — |
Summarizes the Components of Stock-Based Compensation | The following table summarizes the components of stock-based compensation expense recognized in the condensed consolidated statements of operations (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2014 2015 2014 2015 Cost of revenue—product $ 35 $ 43 $ 264 $ 139 Cost of revenue—support 159 657 1,057 1,511 Research and development 3,399 8,195 18,546 18,624 Sales and marketing 2,315 4,559 19,676 10,539 General and administrative 823 2,085 5,331 5,385 Total stock-based compensation expense $ 6,731 $ 15,539 $ 44,874 $ 36,198 |
Net Loss per Share Attributab22
Net Loss per Share Attributable to Common Stockholders (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Earnings Per Share [Abstract] | |
Summary of Computation of Basic and Diluted Net Loss per Share Attributable to Common Stockholders | The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except per share data): Three Months Ended October 31, Nine Months Ended October 31, 2014 2015 2014 2015 Net loss $ (40,397 ) $ (56,501 ) $ (135,596 ) $ (169,458 ) Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 28,280 74,565 26,769 47,109 Net loss per share attributable to common stockholders, basic and diluted $ (1.43 ) $ (0.76 ) $ (5.07 ) $ (3.60 ) |
Summary of Weighted-average Outstanding Shares Excluded from Computation of Diluted Net Loss per Share Attributable to Common Stockholders | The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2014 2015 2014 2015 Convertible preferred stock (on an if-converted basis) 122,250 — 116,215 — Stock options to purchase common stock 50,433 63,738 49,589 59,611 Early exercised stock options and restricted stock awards 7,871 3,318 9,086 3,849 Total 180,554 67,056 174,890 63,460 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Geographic Area | The following table sets forth revenue by geographic area based on the billing address of our customers (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2014 2015 2014 2015 United States $ 39,574 $ 105,615 $ 84,844 $ 229,892 Rest of the world 9,615 25,749 23,757 60,210 Total revenue $ 49,189 $ 131,364 $ 108,601 $ 290,102 |
Schedule of Long-Lived Assets by Geographic Area | Long-lived assets by geographic area are summarized as follows (in thousands): January 31, October 31, 2015 2015 United States $ 39,069 $ 45,756 Rest of the world 790 1,361 Total long-lived assets $ 39,859 $ 47,117 |
Business Overview - Additional
Business Overview - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2015 | Oct. 31, 2014 | Jan. 31, 2016 | |
Organization And Description Of Business [Line Items] | ||||
Net proceeds from initial public offering | $ 459,425 | $ 0 | ||
Conversion of preferred stock | 122,280,679 | 122,280,679 | ||
IPO | ||||
Organization And Description Of Business [Line Items] | ||||
Net proceeds from initial public offering | $ 459,400 | |||
Underwriting discounts and commissions | 29,300 | |||
Offering costs incurred | $ 4,500 | |||
Accrued offering costs | $ 2,700 | |||
IPO | Class A Common Stock | ||||
Organization And Description Of Business [Line Items] | ||||
Shares issued | 28,750,000 | |||
Issue price per share | $ 17 | $ 17 | ||
IPO | Class B Common Stock | ||||
Organization And Description Of Business [Line Items] | ||||
Conversion of preferred stock | 122,280,679 | 122,280,679 |
Basis of Presentation and Sum25
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | Jan. 31, 2015 | |
Accounting Policies [Abstract] | |||||
Restricted cash | $ 7,100 | $ 7,100 | $ 4,600 | ||
Deferred commissions, current | 13,612 | 13,612 | 9,431 | ||
Deferred income taxes, non-current | 11,800 | 11,800 | $ 7,500 | ||
Sales commission expenses | $ 16,500 | $ 11,700 | $ 38,600 | $ 21,800 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Assets Measured at Fair Value on Recurring Basis (Details) - Fair Value Measurements Recurring - USD ($) $ in Thousands | Oct. 31, 2015 | Jan. 31, 2015 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | $ 52,746 | $ 195,269 |
Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 45,614 | 190,621 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 7,132 | 4,648 |
Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalent | 45,614 | 190,621 |
Money Market Funds | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalent | 45,614 | 190,621 |
Certificates of Deposit | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Restricted cash | 7,132 | 4,648 |
Certificates of Deposit | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Restricted cash | $ 7,132 | $ 4,648 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Oct. 31, 2015 | Jan. 31, 2015 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | $ 90,683 | $ 62,317 |
Less: accumulated depreciation and amortization | (43,566) | (22,458) |
Property and equipment, net | 47,117 | 39,859 |
Test Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 58,359 | 37,059 |
Computer Equipment and Software | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 25,158 | 19,022 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 2,587 | 2,460 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | $ 4,579 | $ 3,776 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Balance Sheet Components Disclosure [Abstract] | ||||
Depreciation and amortization | $ 8,500,000 | $ 4,100,000 | $ 22,100,000 | $ 9,200,000 |
Intangible assets amortization expense | $ 326,000 | $ 306,000 | $ 978,000 | $ 515,000 |
Balance Sheet Components - Sc29
Balance Sheet Components - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Thousands | Oct. 31, 2015 | Jan. 31, 2015 |
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, net | $ 7,306 | $ 8,284 |
Technology Patents | ||
Finite Lived Intangible Assets [Line Items] | ||
Technology patents | 9,125 | 9,125 |
Accumulated amortization | (1,819) | (841) |
Intangible assets, net | $ 7,306 | $ 8,284 |
Balance Sheet Components - Sc30
Balance Sheet Components - Schedule of Expected Amortization Expenses for Intangible Assets (Details) - USD ($) $ in Thousands | Oct. 31, 2015 | Jan. 31, 2015 |
Intangible Assets Net Disclosure [Abstract] | ||
Remainder of 2016 | $ 326 | |
2,017 | 1,304 | |
2,018 | 1,304 | |
2,019 | 1,304 | |
2,020 | 1,304 | |
Thereafter | 1,764 | |
Intangible assets, net | $ 7,306 | $ 8,284 |
Balance Sheet Components - Sc31
Balance Sheet Components - Schedule of Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Oct. 31, 2015 | Jan. 31, 2015 |
Payables And Accruals [Abstract] | ||
Sales and use tax payable | $ 583 | $ 591 |
Accrued professional fees | 2,149 | 1,502 |
Accrued travel and entertainment expenses | 1,264 | 1,138 |
Income tax payable | 941 | 779 |
Other accrued liabilities | 6,786 | 2,096 |
Accrued deferred offering costs | 2,717 | 0 |
Total accrued expenses and other liabilities | $ 14,440 | $ 6,106 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |||
Aug. 31, 2015 | Oct. 31, 2015 | Nov. 30, 2015 | Jul. 31, 2015 | Jan. 31, 2015 | |
Commitments And Contingencies [Line Items] | |||||
Lease obligations | $ 19,700,000 | ||||
Lease expiration period | 2,023 | ||||
Outstanding letters of credit | $ 3,300,000 | $ 7,100,000 | $ 4,600,000 | ||
Non-cancelable purchase obligation related to software services | $ 1,100,000 | ||||
Letter of credit maturity year and month | 2023-03 | ||||
Loss contingency | $ 0 | $ 0 | |||
Subsequent Event | |||||
Commitments And Contingencies [Line Items] | |||||
Non-cancelable purchase obligation related to software services | $ 6,100,000 |
Line of Credit - Additional Inf
Line of Credit - Additional Information (Details) - USD ($) | 1 Months Ended | ||
Aug. 31, 2014 | Oct. 31, 2015 | Jan. 31, 2015 | |
Debt Instrument [Line Items] | |||
Line of credit | $ 0 | $ 0 | |
Revolving Line of Credit | |||
Debt Instrument [Line Items] | |||
Line of credit facility, term | 2 years | ||
Line of credit facility, maximum borrowing capacity | $ 15,000,000 | ||
Percentage of accounts receivable qualifying for revolving credit agreement | 80.00% | ||
Line of credit facility expiration month and year | 2016-08 | ||
Line of credit facility, termination fee on or after first year | $ 150,000 | ||
Revolving Line of Credit | Prime Rate | |||
Debt Instrument [Line Items] | |||
Line of credit facility, interest rate | 1.00% |
Convertible Preferred Stock - A
Convertible Preferred Stock - Additional Information (Details) | Oct. 31, 2015shares |
Class Of Stock Disclosures [Abstract] | |
Conversion of preferred stock | 122,280,679 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Oct. 31, 2015 | Sep. 30, 2015 | Jan. 31, 2015 | |
Class Of Stock [Line Items] | |||
Preferred stock, shares authorized | 20,000,000 | 0 | |
Preferred stock, par value | $ 0.0001 | $ 0.0001 | |
Preferred stock, shares issued | 0 | 0 | |
Preferred stock, shares outstanding | 0 | 0 | |
Common stock, shares authorized | 2,250,000,000 | 230,812,000 | |
Common stock, shares issued | 189,980,000 | 36,465,000 | |
Common stock, shares outstanding | 189,980,000 | 36,465,000 | |
Class A Common Stock | |||
Class Of Stock [Line Items] | |||
Common stock, shares authorized | 2,000,000,000 | 1,000 | |
Common stock, par value per share | $ 0.0001 | $ 0.0001 | |
Common stock, shares issued | 28,750,000 | ||
Common stock, shares outstanding | 28,750,000 | ||
Class B Common Stock | |||
Class Of Stock [Line Items] | |||
Common stock, shares authorized | 250,000,000 | 230,811,000 | |
Common stock, par value per share | $ 0.0001 | $ 0.0001 | |
Common stock, shares issued | 161,229,673 | 36,465,000 | |
Common stock, shares outstanding | 161,229,673 | 36,465,000 | |
Class B Common Stock | Pure Good Foundation | |||
Class Of Stock [Line Items] | |||
Common stock, shares issued | 700,000 | ||
Non cash general and administrative expense | $ 11.9 |
Equity Incentive Plans - Additi
Equity Incentive Plans - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2015USD ($)shares | Oct. 31, 2015USD ($)shares | Oct. 31, 2014USD ($)shares | Oct. 31, 2015USD ($)Planshares | Oct. 31, 2014USD ($)shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of equity incentive plans | Plan | 2 | ||||
Unrecognized compensation cost | $ 210,700,000 | $ 210,700,000 | |||
Unrecognized compensation cost related to stock awards, weighted-average period | 3 years 10 months 6 days | ||||
Options Outstanding, Number of Shares, Options granted | shares | 18,159,824 | ||||
Stock-based compensation expense | $ 15,539,000 | $ 6,731,000 | $ 36,198,000 | $ 44,874,000 | |
Repurchase Of Common Stock | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 27,600,000 | ||||
Performance Condition | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Options Outstanding, Number of Shares, Options granted | shares | 50,000 | 90,000 | 133,000 | 415,000 | |
Stock-based compensation expense | $ 797,000 | $ 407,000 | $ 1,800,000 | $ 1,100,000 | |
Non Employee Stock Option | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Options Outstanding, Number of Shares, Options granted | shares | 22,500 | 0 | 22,500 | 7,500 | |
Stock-based compensation expense | $ 93,000 | $ 483,000 | $ 975,000 | $ 1,900,000 | |
2015 Equity Incentive Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Equity awards of vest expire period | 10 years | ||||
2015 Equity Incentive Plan | Minimum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Equity awards of vest period | 2 years | ||||
2015 Equity Incentive Plan | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Equity awards of vest period | 4 years | ||||
2015 Employee Stock Purchase Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares reserved for future issuance | shares | 3,500,000 | ||||
Employee Stock Purchase Plan Offering Period | 24 months | ||||
Fair market value of Class A common stock | $ 17 | ||||
ESPP | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock-based compensation expense | 907,000 | ||||
Unrecognized stock-based compensation expense | $ 25,900,000 | $ 25,900,000 | |||
Class A Common Stock | 2015 Equity Incentive Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares initially reserved for issuance | shares | 27,000,000 | 27,000,000 | |||
Shares reserved for future issuance | shares | 26,476,500 | 26,476,500 | |||
Class A Common Stock | 2015 Employee Stock Purchase Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares reserved for future issuance | shares | 3,500,000 | ||||
Payroll deductions percentage | 30.00% | ||||
Share cap for ESPP at purchase date | shares | 3,000 | ||||
Calendar year gap for ESPP contribution amount | $ 25,000 | ||||
ESPP offering price as percentage of fair market value | 85.00% |
Equity Incentive Plans - Summar
Equity Incentive Plans - Summary of Activity Under the Equity Incentive Plans (Details) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Oct. 31, 2015USD ($)$ / sharesshares | Jan. 31, 2015USD ($)$ / sharesshares | |
Options Outstanding, Number of Shares | ||
Options Outstanding, Number of Shares, Beginning Balance | shares | 54,284,474 | |
Options Outstanding, Number of Shares, Options granted | shares | 18,159,824 | |
Options Outstanding, Number of Shares, Options exercised | shares | (1,784,066) | |
Options Outstanding, Number of Shares, Options cancelled | shares | (1,730,681) | |
Options Outstanding, Number of Shares, Ending Balance | shares | 68,929,551 | 54,284,474 |
Options Outstanding, Number of Shares, Vested and exercisable | shares | 21,903,812 | |
Options Outstanding, Number of Shares, Vested and expected to vest | shares | 66,851,238 | |
Options Outstanding, Weighted Average Exercise Price | ||
Weighted Average Exercise Price, Beginning Balance | $ / shares | $ 3.02 | |
Weighted Average Exercise Price, Options granted | $ / shares | 15.77 | |
Weighted Average Exercise Price, Options exercised | $ / shares | 2.64 | |
Weighted Average Exercise Price, Options Cancelled | $ / shares | 7.09 | |
Weighted Average Exercise Price, Ending Balance | $ / shares | 6.29 | $ 3.02 |
Weighted Average Exercise Price, Vested and exercisable | $ / shares | 1.71 | |
Weighted Average Exercise Price, Vested and expected to vest | $ / shares | $ 6.22 | |
Options Outstanding, Weighted Average Remaining Contractual Life (In Years) | ||
Weighted Average Remaining Contractual Life (In Years) | 0 years | 8 years 3 months 18 days |
Weighted Average Remaining Contractual Life (In Years), Vested and exercisable | 6 years 9 months 18 days | |
Weighted Average Remaining Contractual Life (In Years), Vested and expected to vest | 8 years 1 month 6 days | |
Options Outstanding, Aggregate Intrinsic Value | ||
Aggregate Intrinsic Value, Beginning Balance | $ | $ 523,654 | |
Aggregate Intrinsic Value, Ending Balance | $ | 0 | $ 523,654 |
Aggregate Intrinsic Value, Vested and exercisable | $ | 348,767 | |
Aggregate Intrinsic Value, Vested and expected to vest | $ | $ 763,519 |
Equity Incentive Plans - Summ38
Equity Incentive Plans - Summary of Estimated Fair Value of Employee Stock Options (Details) - Employee Stock Purchase Plan | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (in years) | 0 years | 0 years | ||
Expected volatility | 49.00% | 0.00% | 49.00% | 0.00% |
Risk-free interest rate | 0.00% | 0.00% | ||
Risk-free interest rate, Minimum | 0.10% | 0.10% | ||
Risk-free interest rate, Maximum | 0.70% | 0.70% | ||
Dividend rate | 0.00% | 0.00% | 0.00% | 0.00% |
Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (in years) | 4 months 24 days | 4 months 24 days | ||
Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (in years) | 1 year 10 months 24 days | 1 year 10 months 24 days |
Equity Incentive Plans - Summ39
Equity Incentive Plans - Summary of Stock-Based Compensation Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 15,539 | $ 6,731 | $ 36,198 | $ 44,874 |
Cost of Revenue Product | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | 43 | 35 | 139 | 264 |
Cost of Revenue Support | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | 657 | 159 | 1,511 | 1,057 |
Research and Development | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | 8,195 | 3,399 | 18,624 | 18,546 |
Sales and Marketing | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | 4,559 | 2,315 | 10,539 | 19,676 |
General and Administrative | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 2,085 | $ 823 | $ 5,385 | $ 5,331 |
Net Loss per Share Attributab40
Net Loss per Share Attributable to Common Stockholders - Summary of Computation of Basic and Diluted Net Loss per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (56,501) | $ (40,397) | $ (169,458) | $ (135,596) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted | 74,565 | 28,280 | 47,109 | 26,769 |
Net loss per share attributable to common stockholders, basic and diluted | $ (0.76) | $ (1.43) | $ (3.60) | $ (5.07) |
Net Loss per Share Attributab41
Net Loss per Share Attributable to Common Stockholders - Summary of Weighted-average Outstanding Shares Excluded from Computation of Diluted Net Loss per Share Attributable to Common Stockholders (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share, amount | 67,056 | 180,554 | 63,460 | 174,890 |
Convertible preferred stock (on an if-converted basis) | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share, amount | 0 | 122,250 | 0 | 116,215 |
Stock options to purchase common stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share, amount | 63,738 | 50,433 | 59,611 | 49,589 |
Early exercised stock options and restricted stock awards | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share, amount | 3,318 | 7,871 | 3,849 | 9,086 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 9 Months Ended |
Oct. 31, 2015Segment | |
Segment Reporting [Abstract] | |
Number of business activity | 1 |
Number of reportable segments | 1 |
Segment Information - Schedule
Segment Information - Schedule of Revenue by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total revenue | $ 131,364 | $ 49,189 | $ 290,102 | $ 108,601 |
United States | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total revenue | 105,615 | 39,574 | 229,892 | 84,844 |
Rest of the world | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total revenue | $ 25,749 | $ 9,615 | $ 60,210 | $ 23,757 |
Segment Information - Schedul44
Segment Information - Schedule of Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | Oct. 31, 2015 | Jan. 31, 2015 |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property and equipment, net | $ 47,117 | $ 39,859 |
United States | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property and equipment, net | 45,756 | 39,069 |
Rest of the world | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property and equipment, net | $ 1,361 | $ 790 |