Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 31, 2016 | Aug. 25, 2016 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
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 | ||
Entity Common Stock, Shares Outstanding | 72,026,868 | |
Class B Common Stock | ||
Entity Common Stock, Shares Outstanding | 124,581,816 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jul. 31, 2016 | Jan. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 205,818,000 | $ 604,742,000 |
Marketable securities | 364,356,000 | 0 |
Accounts receivable, net of allowance of $944 and $2,146 as of January 31, 2016 and July 31, 2016 | 118,532,000 | 126,324,000 |
Inventory | 22,630,000 | 20,649,000 |
Deferred commissions, current | 14,023,000 | 15,703,000 |
Prepaid expenses and other current assets | 20,933,000 | 20,652,000 |
Total current assets | 746,292,000 | 788,070,000 |
Property and equipment, net | 78,523,000 | 52,629,000 |
Intangible assets, net | 7,312,000 | 6,980,000 |
Deferred income taxes, non-current | 815,000 | 536,000 |
Other assets, non-current | 29,262,000 | 22,568,000 |
Total assets | 862,204,000 | 870,783,000 |
Current liabilities: | ||
Accounts payable | 30,526,000 | 38,187,000 |
Accrued compensation and benefits | 33,369,000 | 32,995,000 |
Accrued expenses and other liabilities | 20,464,000 | 14,076,000 |
Deferred revenue, current | 127,430,000 | 94,514,000 |
Liability related to early exercised stock options | 4,274,000 | 4,760,000 |
Total current liabilities | 216,063,000 | 184,532,000 |
Deferred revenue, non-current | 129,876,000 | 121,690,000 |
Other liabilities, non-current | 2,209,000 | 1,207,000 |
Total liabilities | 348,148,000 | 307,429,000 |
Commitments and contingencies | 0 | 0 |
Stockholders’ equity: | ||
Preferred stock, par value of $0.0001 per share— 20,000 shares authorized as of January 31, 2016 and July 31, 2016; no shares issued and outstanding as of January 31, 2016 and July 31, 2016 | 0 | 0 |
Class A and Class B common stock, par value of $0.0001 per share— 2,250,000 (Class A 2,000,000, Class B 250,000) shares authorized as of January 31, 2016 and July 31, 2016; 190,509 (Class A 28,769, Class B 161,740) and 196,466 (Class A 71,516, Class B 124,950) shares issued and outstanding as of January 31, 2016 and July 31, 2016 | 20,000 | 19,000 |
Additional paid-in capital | 1,193,936,000 | 1,118,670,000 |
Accumulated other comprehensive income | 852,000 | 0 |
Accumulated deficit | (680,752,000) | (555,335,000) |
Total stockholders’ equity | 514,056,000 | 563,354,000 |
Total liabilities and stockholders’ equity | $ 862,204,000 | $ 870,783,000 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jul. 31, 2016 | Jan. 31, 2016 |
Accounts receivable, allowance | $ 2,146 | $ 944 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value per share (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 2,250,000,000 | 2,250,000,000 |
Common stock, shares issued (in shares) | 196,466,000 | 190,509,000 |
Common stock, shares outstanding (in shares) | 196,466,000 | 190,509,000 |
Class A Common Stock | ||
Common stock, par value per share (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued (in shares) | 71,516,602 | 28,769,000 |
Common stock, shares outstanding (in shares) | 71,516,602 | 28,769,000 |
Class B Common Stock | ||
Common stock, par value per share (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 124,949,816 | 161,740,000 |
Common stock, shares outstanding (in shares) | 124,949,816 | 161,740,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | |
Revenue: | ||||
Product | $ 130,920 | $ 71,192 | $ 242,658 | $ 134,810 |
Support | 32,294 | 13,469 | 60,503 | 23,928 |
Total revenue | 163,214 | 84,661 | 303,161 | 158,738 |
Cost of revenue: | ||||
Product | 42,847 | 27,641 | 76,893 | 50,353 |
Support | 14,000 | 7,497 | 26,934 | 14,421 |
Total cost of revenue | 56,847 | 35,138 | 103,827 | 64,774 |
Gross profit | 106,367 | 49,523 | 199,334 | 93,964 |
Operating expenses: | ||||
Research and development | 58,635 | 38,188 | 111,573 | 69,870 |
Sales and marketing | 87,583 | 59,517 | 170,681 | 107,844 |
General and administrative | 19,630 | 15,227 | 41,211 | 27,919 |
Total operating expenses | 165,848 | 112,932 | 323,465 | 205,633 |
Loss from operations | (59,481) | (63,409) | (124,131) | (111,669) |
Other income (expense), net | 37 | (371) | 1,319 | (1,074) |
Loss before provision for income taxes | (59,444) | (63,780) | (122,812) | (112,743) |
Provision for income taxes | 106 | 57 | 526 | 214 |
Net loss | $ (59,550) | $ (63,837) | $ (123,338) | $ (112,957) |
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share) | $ (0.31) | $ (1.89) | $ (0.65) | $ (3.41) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted (in shares) | 192,730 | 33,688 | 191,026 | 33,154 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (59,550) | $ (63,837) | $ (123,338) | $ (112,957) |
Other comprehensive income, net of tax effect: | ||||
Change in unrealized net gain on available-for-sale securities | 45 | 0 | 852 | 0 |
Comprehensive loss | $ (59,505) | $ (63,837) | $ (122,486) | $ (112,957) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (123,338) | $ (112,957) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 22,336 | 14,268 |
Stock-based compensation expense | 50,894 | 20,659 |
Other | 494 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 6,589 | (21,017) |
Inventory | (2,392) | (1,653) |
Deferred commissions | 1,887 | (4,865) |
Prepaid expenses and other assets | (809) | (2,634) |
Accounts payable | (10,007) | 2,417 |
Accrued compensation and other liabilities | 8,687 | 11,479 |
Deferred revenue | 41,102 | 49,813 |
Net cash used in operating activities | (4,557) | (44,490) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property and equipment | (46,118) | (21,823) |
Purchase of intangible assets | (1,000) | 0 |
Purchases of marketable securities | (427,968) | 0 |
Sales of marketable securities | 59,071 | 0 |
Maturities of marketable securities | 5,800 | 0 |
Net increase in restricted cash | (5,600) | 0 |
Net cash used in investing activities | (415,815) | (21,823) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net proceeds from exercise of stock options | 6,369 | 3,004 |
Proceeds from issuance of common stock under employee stock purchase plan | 15,079 | 0 |
Payments of deferred offering costs | 0 | (1,116) |
Net cash provided by financing activities | 21,448 | 1,888 |
Net decrease in cash and cash equivalents | (398,924) | (64,425) |
Cash and cash equivalents, beginning of period | 604,742 | 192,707 |
Cash and cash equivalents, end of period | 205,818 | 128,282 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash paid for income taxes | 1,827 | 333 |
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING INFORMATION | ||
Property and equipment purchased but not yet paid | 7,691 | 1,742 |
Vesting of early exercised stock options | 486 | 1,096 |
Unpaid deferred offering costs | $ 0 | $ 1,373 |
Business Overview
Business Overview | 6 Months Ended |
Jul. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Overview | 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. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jul. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | 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 Annual Report on Form 10-K for the fiscal year ended January 31, 2016 . 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, comprehensive loss 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 2017 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-element 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 and contingent liabilities, 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 cash collateral for a vendor credit card program and letters of credit related to our leases. As of January 31, 2016 and July 31, 2016 , we had restricted cash of $7.1 million and $12.7 million , which was included in other assets, non-current, in the condensed consolidated balance sheets. Marketable Securities We classify our marketable securities as available-for-sale at the time of purchase and reevaluate such classification at each balance sheet date. We may sell these securities at any time for use in current operations even if they have not yet reached maturity. As a result, we classify our securities, including those with maturities beyond twelve months, as current assets in the accompanying condensed consolidated balance sheets. We carry these securities at fair value and record unrealized gains and losses, net of tax, in other comprehensive income (loss), which is reflected as a component of stockholders’ equity. We determine any realized gains or losses on the sale of marketable securities on a specific identification method. In addition, we evaluate our securities to assess whether those with unrealized loss positions are other than temporarily impaired. Realized gains and losses and declines in value deemed to be other than temporary are reported in other income (expense), net, in the condensed consolidated statements of operations. 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, 2016 and July 31, 2016 , we recorded deferred commissions, current, of $15.7 million and $14.0 million , and deferred commissions, non-current, of $14.3 million and $14.1 million , in other assets, non-current, in the condensed consolidated balance sheets. We recognized sales commission expenses of $9.7 million and $19.6 million during the three months ended July 31, 2015 and 2016 and $18.6 million and $37.2 million during the six months ended July 31, 2015 and 2016. Recently Adopted Accounting Standard In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (ASU 2016-09). We elected to early adopt this standard in the second quarter of fiscal 2017 with February 1, 2016 being the effective date of adoption. Under ASU 2016-09, excess tax benefits and deficiencies are recognized prospectively in our provision for income taxes rather than additional paid-in capital. As a result of the adoption, our provision for income taxes decreased by $535,000 during the three months ended April 30, 2016. Additionally, we have elected to account for forfeitures as they occur rather than estimate expected forfeiture using a modified retrospective transition method. Accordingly, we recorded a cumulative-effect adjustment of $2.1 million to accumulated deficit and an increase of stock-based compensation expense of $864,000 during the three months ended April 30, 2016. The impact to our provision for income taxes and stock-based compensation expense of $535,000 and $864,000 in the quarter ended April 30, 2016 were reflected in our net loss for the six months ended July 31, 2016 . Finally, ASU 2016-09 requires excess tax benefits to be presented as a component of operating cash flows rather than financing cash flows. We elected to adopt this requirement prospectively and accordingly, prior periods have not been adjusted. Excess tax benefits were not material for all periods presented. Recent Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), requiring an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 will supersede nearly all existing revenue recognition guidance under U.S. GAAP when it becomes effective. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers , deferring the effective date for ASU 2014-09 by one year, and thus, the new standard will be effective for us beginning on February 1, 2018 with early adoption permitted on or after February 1, 2017. This standard may be adopted using either the full or modified retrospective methods. We are currently evaluating adoption methods and the impact of this standard on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (ASU 2016-02). ASU 2016-02 requires lessees to recognize all leases with terms in excess of one year on their balance sheet as a right-of-use asset and a lease liability at the commencement date. The new standard also simplifies the accounting for sale and leaseback transactions. The amendments in this update are effective for us beginning on February 1, 2019 and must be adopted using a modified retrospective method for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Early adoption is permitted. We are currently evaluating adoption methods and the impact of this standard on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 amends guidance on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities to require that credit losses on available-for-sale debt securities be presented as an allowance rather than as a write-down. The measurement of credit losses for newly recognized financial assets and subsequent changes in the allowance for credit losses are recorded in the statements of operations. The amendments in this update are effective for us beginning on February 1, 2020 with early adoption permitted on or after February 1, 2019. We are currently evaluating the impact of this standard on our consolidated financial statements. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jul. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Financial Instruments | Financial Instruments Fair Value Measurements We measure our cash equivalents, marketable securities and restricted cash at fair value on a recurring basis. 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 cash equivalents, marketable securities and restricted cash within Level 1 or Level 2 because they are valued using either quoted market prices or 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. Our fixed income available-for-sale securities consist of high quality, investment grade securities from diverse issuers. The valuation techniques used to measure the fair value of our marketable securities were derived from non-binding market consensus prices that are corroborated by observable market data, quoted market prices for similar instruments, or pricing models such as discounted cash flow techniques. Cash Equivalents, Marketable Securities and Restricted Cash The following tables summarize our cash equivalents, marketable securities and restricted cash by significant investment categories as of January 31, 2016 and July 31, 2016 (in thousands): As of January 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Restricted Cash Level 1 Money market funds $ 45,614 $ — $ — $ 45,614 $ 45,614 $ — Level 2 Certificate of deposits 7,132 — — 7,132 — 7,132 Total $ 52,746 $ — $ — $ 52,746 $ 45,614 $ 7,132 As of July 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Marketable Securities Restricted Cash Level 1 Money market accounts $ — $ — $ — $ — $ — $ — $ 12,732 Level 2 U.S. government treasury notes 135,581 181 (3 ) 135,759 18,546 117,213 — U.S. government agencies 47,655 41 (6 ) 47,690 4,001 43,689 — Corporate debt securities 200,093 1,146 (15 ) 201,224 401 200,823 — Foreign government bonds 2,624 7 — 2,631 — 2,631 — Total $ 385,953 $ 1,375 $ (24 ) $ 387,304 $ 22,948 $ 364,356 $ 12,732 The amortized cost and estimated fair value of our marketable securities are shown below by contractual maturity (in thousands): As of July 31, 2016 Amortized Cost Fair Value Due within one year $ 78,421 $ 78,470 Due in one to five years 284,585 285,886 Total $ 363,006 $ 364,356 As of July 31, 2016 , there were no securities that were in an unrealized loss position for more than 12 months. Based on our evaluation of available evidence, we concluded that the gross unrealized losses on our marketable securities as of July 31, 2016 were temporary in nature. The following table presents gross unrealized losses and fair values for those investments that were in a continuous unrealized loss position for less than 12 months as of July 31, 2016 , aggregated by investment category (in thousands): Less than 12 months Fair Value Unrealized Loss U.S. government notes $ 2,002 $ (3 ) U.S. government agencies 6,492 (6 ) Corporate debt securities 13,689 (15 ) Total $ 22,183 $ (24 ) Gross realized gains on sale of marketable securities for the three and six months ended July 31, 2016 were $104,000 and $110,000 , respectively. We reflect these gains as a component of other income (expense), net in the accompanying condensed consolidated statements of operations. |
Balance Sheet Components
Balance Sheet Components | 6 Months Ended |
Jul. 31, 2016 | |
Balance Sheet Components Disclosure [Abstract] | |
Balance Sheet Components | Balance Sheet Components Property and Equipment, Net Property and equipment, net, consists of the following (in thousands): As of January 31, 2016 As of July 31, 2016 Test equipment $ 65,663 $ 94,914 Computer, equipment and software 31,388 45,340 Furniture and fixtures 2,852 4,028 Leasehold improvements 4,935 7,839 Total property and equipment 104,838 152,121 Less: accumulated depreciation and amortization (52,209 ) (73,598 ) Property and equipment, net $ 52,629 $ 78,523 Depreciation and amortization expense was $7.2 million and $11.6 million for the three months ended July 31, 2015 and 2016 and $13.4 million and $21.7 million for the six months ended July 31, 2015 and 2016 , respectively. Intangible Assets, Net Intangible assets, net, consist of the following (in thousands): As of January 31, 2016 As of July 31, 2016 Technology patents $ 9,125 $ 10,125 Accumulated amortization (2,145 ) (2,813 ) Intangible assets, net $ 6,980 $ 7,312 During the three months ended July 31, 2016, we acquired a portfolio of technology patents for $1.0 million with an estimated weighted average useful life of 5 years. Intangible assets amortization expense was $326,000 a nd $342,000 for the three months ended July 31, 2015 and 2016 and $652,000 and $668,000 for the six months ended July 31, 2015 and 2016 . 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 July 31, 2016 , expected amortization expense for intangible assets for each of the next five years and thereafter is as follows (in thousands): Fiscal Years Ending January 31, Estimated Future Amortization Expense Remainder of 2017 $ 752 2018 1,504 2019 1,504 2020 1,504 2021 1,504 Thereafter 544 Total $ 7,312 Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consist of the following (in thousands): As of January 31, 2016 As of July 31, 2016 Sales and use tax payable $ 299 $ 150 Accrued professional fees 3,044 3,214 Accrued marketing 2,684 6,237 Accrued travel and entertainment expenses 2,182 3,223 Income tax payable 1,791 1,285 Other accrued liabilities 4,076 6,355 Total accrued expenses and other liabilities $ 14,076 $ 20,464 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases During the six months ended July 31, 2016, we entered into three office facility lease agreements and an amendment to an existing office facility lease agreement with total additional lease obligations of approximately $39.5 million with lease periods expiring through June 2024. Letters of Credit As of January 31, 2016 and July 31, 2016 , we had outstanding letters of credit in the aggregate amount of $7.1 million and $7.7 million respectively, 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 June 2024. Legal Matters On November 4, 2013, EMC filed a complaint against us in the U.S. District Court for the District of Massachusetts, 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 and expert discovery has closed. Dispositive motions were filed in May 2016. In August 2016, we received summary judgment on EMC’s claims under Massachusetts General Law 93A , and the remainder of our dispositive motions were denied pending resolution at trial. EMC’s dispositive motions are still pending. The District Court has scheduled a trial date for October 24, 2016. In a separate litigation matter, on November 26, 2013, EMC filed a complaint against us in the U.S. District Court for the District of Delaware, alleging infringement of five patents held by EMC. The five patents are U.S. Patent No. 6,904,556 entitled “Systems and Methods Which Utilize Parity Sets,” U.S. Patent No. 6,915,475 entitled “Data Integrity Management for Data Storage Systems,” U.S. Patent No. 7,373,464 entitled “Efficient Data Storage System” and the related U.S. Patent No. 7,434,015 entitled “Efficient Data Storage System” and U.S. Patent No. 8,375,187 entitled “I/O Scheduling For Flash Drives.” The complaint seeks damages and injunctive and equitable relief, with respect to the FlashArray 400-Series and predecessor products. Prior to trial, EMC dropped U.S. Patent No. 6,915,475 from the suit, and the District Court found, in a summary judgment ruling, that we did not infringe U.S. Patent No. 8,375,187 and did infringe certain claims of U.S. Patent No. 7,434,015, (’015 patent). The remaining two patents and the validity of ‘015 patent went to trial. On March 15, 2016, the jury returned a verdict finding that we did not infringe U.S. Patent Nos. 6,904,556 and 7,373,464, and that the ‘015 patent, which the District Court ruled us to have infringed, is valid. The jury awarded EMC $14.0 million in royalty damages for infringement of the '015 patent. The jury declined to award any lost profit damages. On March 21, 2016, EMC filed an additional complaint for infringement of the '015 patent with respect to the FlashArray//m product, which EMC did not seek permission from the District Court to add to the lawsuit when FlashArray//m was launched in June of 2015. This new complaint seeks damages and injunctive and equitable relief based on the District Court's previous ruling with respect to the '015 patent. The infringement ruling represents a reasonably possible loss contingency under the applicable accounting standards of up to $14.0 million . We believed there were strong grounds to challenge the infringement ruling by the District Court and the validity finding by the jury with respect to the ‘015 patent, and thus we challenged the findings with respect to the ‘015 patent in post-trial motions before the District Court. On September 1, 2016, the District Court ruled that we are entitled to a new trial on the issue of validity of the ‘015 patent in light of U.S. Patent No. 6,889,297 (the Sun patent) and dismissed as moot EMC’s motion for a permanent injunction precluding us from using the deduplication technology of the asserted claims of the ‘015 patent. No date has been set for the new trial. At present, we do not believe it is probable that a loss has been incurred. As a result, we have not recorded any loss contingency on our consolidated balance sheet as of July 31, 2016 . On September 1, 2016, a purported securities class action entitled Ramsay v. Pure Storage, Inc., et al. was filed in the Superior Court of the State of California (San Mateo County) against us and certain of our officers, directors, investors and underwriters. The complaint asserts claims under sections 11, 12 and 15 of the Securities Act of 1933, 15 U.S.C. section 77 related to alleged inaccuracies, omissions, misstatements or misrepresentations in our registration statement filed in connection with our initial public offering. While we have not yet responded to the complaint, we believe there is no merit to the allegations and intend to defend ourselves vigorously. 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 consolidated balance sheet as of July 31, 2016 . Indemnification Our arrangements generally include certain provisions for indemnifying customers against liabilities if our products or services infringe a third party’s intellectual property rights. Other guarantees or indemnification arrangements include guarantees of product and service performance and standby letters of credit for lease facilities. It is not possible to determine the maximum potential amount under these indemnification obligations due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. To date, we have not incurred any material costs as a result of such obligations and have not accrued any liabilities related to such obligations in the consolidated financial statements. In addition, we indemnify our officers, directors and certain key employees while they are serving in good faith in their respective capacities. To date, there have been no claims under any indemnification provisions. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jul. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Preferred Stock Upon the closing of our initial public offering (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 July 31, 2016 , there were no shares of preferred stock 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 July 31, 2016 , 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 July 31, 2016 , 71,516,602 shares of Class A common stock were issued and outstanding and 124,949,816 shares of Class B common stock were issued and outstanding. |
Equity Incentive Plans
Equity Incentive Plans | 6 Months Ended |
Jul. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity Incentive Plans | 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 and serves as the successor to our 2009 Plan. Our 2015 Plan provides for grants of incentive stock options, non-statutory 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. We ceased grants of new awards under our 2009 Plan after the effective date of our 2015 Plan, and no new grants will be made from our 2009 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. We initially reserved 27,000,000 shares of our Class A common stock for issuance under our 2015 Plan. The number of shares reserved for issuance under our 2015 Plan increases automatically on the first day of February of each of 2016 through 2025, in an amount equal to 5% of the total number of shares of our capital stock outstanding as of the immediately preceding January 31. The exercise price of stock options will generally not be less than 100% of the fair market value of our common stock on the date of grant, as determined by our board of directors. Our equity awards generally vest over a two to four year period and expire no later than ten years from the date of grant. 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. 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 16th and September 16th of each year, and each offering period will consist of four six -month purchase periods, subject to a reset provision. If the closing stock price on the offering date of a new offering falls below the closing stock price on the offering date of an ongoing offering, the ongoing offering would terminate immediately following the purchase of ESPP shares on the purchase date immediately preceding the new offering and participants in the terminated ongoing offering would automatically be enrolled in the new offering (ESPP reset). 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. The initial offering period began on October 7, 2015 and ended on March 15, 2016 as our closing stock price on the new offering date of March 16, 2016 was lower than the closing stock price on October 7, 2015 which triggered an ESPP reset. The ESPP reset resulted in a modification charge of approximately $10.6 million which is being recognized over the new 24 -month offering period. During the three and six months ended July 31, 2016 , we recognized $4.3 million and $8.6 million of stock-based compensation expense related to our 2015 ESPP. As of July 31, 2016 , there was $24.9 million of unrecognized stock-based compensation expense related to our 2015 ESPP that is expected to be recognized over the term of the related offering periods. 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, 2016 68,879,087 $ 6.43 7.9 $ 505,131 Options granted 1,979,000 12.70 Options exercised (4,258,667 ) 1.57 Options forfeited/cancelled (1,492,727 ) 11.09 Balance as of July 31, 2016 65,106,693 $ 6.83 7.5 $ 432,684 Vested and exercisable as of July 31, 2016 26,456,291 $ 3.16 6.5 $ 254,711 The aggregate intrinsic value of options vested and exercisable as of July 31, 2016 is calculated based on the difference between the exercise price and the closing price of $12.60 of our Class A common stock on July 29, 2016. As of July 31, 2016 , total unrecognized employee compensation cost was $172.7 million , which is expected to be recognized over a weighted-average period of approximately 3.2 years . During the six months ended July 31, 2015 and 2016 , we granted options to purchase 83,000 and 780,000 shares of common stock that vest upon satisfaction of a performance condition. No performance shares were issued during the three months ended July 31, 2015 and 2016 . For those options that management determined it is probable that the performance condition will be satisfied, we recognized stock-based compensation expense of $514,000 and $1.4 million for the three months ended July 31, 2015 and 2016 and $954,000 and $2.0 million for the six months ended July 31, 2015 and 2016 . Restricted Stock Units A summary of the restricted stock unit activity under our 2015 Plan and related information is as follows: Number of Restricted Stock Units Outstanding Weighted- Average Grant Date Fair Value Unvested Balance as of January 31, 2016 53,000 $ 16.98 Granted 5,513,900 13.46 Vested (264,648 ) 14.38 Forfeited (134,734 ) 14.51 Unvested Balance as of July 31, 2016 5,167,518 $ 13.42 As of July 31, 2016 , total unrecognized employee compensation cost related to outstanding restricted stock units was $64.2 million , which is expected to be recognized over a weighted-average period of approximately 2.9 years . 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 July 31, Six Months Ended July 31, 2015 2016 2015 2016 Cost of revenue—product $ 40 $ 181 $ 96 $ 287 Cost of revenue—support 521 1,712 854 2,804 Research and development 6,804 13,976 10,429 25,634 Sales and marketing 2,536 8,732 5,980 16,251 General and administrative 1,899 3,295 3,300 5,918 Total stock-based compensation expense $ 11,800 $ 27,896 $ 20,659 $ 50,894 |
Net Loss per Share Attributable
Net Loss per Share Attributable to Common Stockholders | 6 Months Ended |
Jul. 31, 2016 | |
Earnings Per Share [Abstract] | |
Net Loss per Share Attributable to Common Stockholders | 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. 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, unvested restricted stock awards, repurchasable shares from early exercised stock options and shares subject to ESPP withholding 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 July 31, Six Months Ended July 31, 2015 2016 2015 2016 Net loss $ (63,837 ) $ (59,550 ) $ (112,957 ) $ (123,338 ) Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 33,688 192,730 33,154 191,026 Net loss per share attributable to common stockholders, basic and diluted $ (1.89 ) $ (0.31 ) $ (3.41 ) $ (0.65 ) 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 July 31, Six Months Ended July 31, 2015 2016 2015 2016 Convertible preferred stock (on an if-converted basis) 122,281 — 122,281 — Stock options to purchase common stock 59,354 65,567 57,358 66,974 Restricted stock units — 4,682 — 3,046 Early exercised stock options 3,837 2,446 4,119 2,555 Employee stock purchase plan — 953 — 953 Total 185,472 73,648 183,758 73,528 |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 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 loss before income taxes and the provision for income taxes recorded was primarily attributable to changes in our valuation allowance, non-deductible stock-based compensation expense and the tax rate differential between the U.S. and foreign countries. As of July 31, 2016 , 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, 2016 . |
Segment Information
Segment Information | 6 Months Ended |
Jul. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | 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 July 31, Six Months Ended July 31, 2015 2016 2015 2016 United States $ 65,603 $ 122,103 $ 124,277 $ 233,330 Rest of the world 19,058 41,111 34,461 69,831 Total revenue $ 84,661 $ 163,214 $ 158,738 $ 303,161 Long-lived assets by geographic area are summarized as follows (in thousands): As of January 31, 2016 As of July 31, 2016 United States $ 50,501 $ 75,425 Rest of the world 2,128 3,098 Total long-lived assets $ 52,629 $ 78,523 |
Basis of Presentation and Sum17
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jul. 31, 2016 | |
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 Annual Report on Form 10-K for the fiscal year ended January 31, 2016 . 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, comprehensive loss 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 2017 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-element 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 and contingent liabilities, 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 cash collateral for a vendor credit card program and letters of credit related to our leases. |
Marketable Securities | Marketable Securities We classify our marketable securities as available-for-sale at the time of purchase and reevaluate such classification at each balance sheet date. We may sell these securities at any time for use in current operations even if they have not yet reached maturity. As a result, we classify our securities, including those with maturities beyond twelve months, as current assets in the accompanying condensed consolidated balance sheets. We carry these securities at fair value and record unrealized gains and losses, net of tax, in other comprehensive income (loss), which is reflected as a component of stockholders’ equity. We determine any realized gains or losses on the sale of marketable securities on a specific identification method. In addition, we evaluate our securities to assess whether those with unrealized loss positions are other than temporarily impaired. Realized gains and losses and declines in value deemed to be other than temporary are reported in other income (expense), net, in the condensed consolidated statements of operations. |
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. |
Recently Adopted Accounting Standard and Recent Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Standard In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (ASU 2016-09). We elected to early adopt this standard in the second quarter of fiscal 2017 with February 1, 2016 being the effective date of adoption. Under ASU 2016-09, excess tax benefits and deficiencies are recognized prospectively in our provision for income taxes rather than additional paid-in capital. As a result of the adoption, our provision for income taxes decreased by $535,000 during the three months ended April 30, 2016. Additionally, we have elected to account for forfeitures as they occur rather than estimate expected forfeiture using a modified retrospective transition method. Accordingly, we recorded a cumulative-effect adjustment of $2.1 million to accumulated deficit and an increase of stock-based compensation expense of $864,000 during the three months ended April 30, 2016. The impact to our provision for income taxes and stock-based compensation expense of $535,000 and $864,000 in the quarter ended April 30, 2016 were reflected in our net loss for the six months ended July 31, 2016 . Finally, ASU 2016-09 requires excess tax benefits to be presented as a component of operating cash flows rather than financing cash flows. We elected to adopt this requirement prospectively and accordingly, prior periods have not been adjusted. Excess tax benefits were not material for all periods presented. Recent Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), requiring an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 will supersede nearly all existing revenue recognition guidance under U.S. GAAP when it becomes effective. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers , deferring the effective date for ASU 2014-09 by one year, and thus, the new standard will be effective for us beginning on February 1, 2018 with early adoption permitted on or after February 1, 2017. This standard may be adopted using either the full or modified retrospective methods. We are currently evaluating adoption methods and the impact of this standard on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (ASU 2016-02). ASU 2016-02 requires lessees to recognize all leases with terms in excess of one year on their balance sheet as a right-of-use asset and a lease liability at the commencement date. The new standard also simplifies the accounting for sale and leaseback transactions. The amendments in this update are effective for us beginning on February 1, 2019 and must be adopted using a modified retrospective method for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Early adoption is permitted. We are currently evaluating adoption methods and the impact of this standard on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 amends guidance on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities to require that credit losses on available-for-sale debt securities be presented as an allowance rather than as a write-down. The measurement of credit losses for newly recognized financial assets and subsequent changes in the allowance for credit losses are recorded in the statements of operations. The amendments in this update are effective for us beginning on February 1, 2020 with early adoption permitted on or after February 1, 2019. We are currently evaluating the impact of this standard on our consolidated financial statements. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jul. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Cash Equivalents, Marketable Securities and Restricted Cash by Significant Investment Categories | The following tables summarize our cash equivalents, marketable securities and restricted cash by significant investment categories as of January 31, 2016 and July 31, 2016 (in thousands): As of January 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Restricted Cash Level 1 Money market funds $ 45,614 $ — $ — $ 45,614 $ 45,614 $ — Level 2 Certificate of deposits 7,132 — — 7,132 — 7,132 Total $ 52,746 $ — $ — $ 52,746 $ 45,614 $ 7,132 As of July 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Marketable Securities Restricted Cash Level 1 Money market accounts $ — $ — $ — $ — $ — $ — $ 12,732 Level 2 U.S. government treasury notes 135,581 181 (3 ) 135,759 18,546 117,213 — U.S. government agencies 47,655 41 (6 ) 47,690 4,001 43,689 — Corporate debt securities 200,093 1,146 (15 ) 201,224 401 200,823 — Foreign government bonds 2,624 7 — 2,631 — 2,631 — Total $ 385,953 $ 1,375 $ (24 ) $ 387,304 $ 22,948 $ 364,356 $ 12,732 |
Schedule of Amortized Cost and Estimated Fair Value of Marketable Securities by Contractual Maturity | The amortized cost and estimated fair value of our marketable securities are shown below by contractual maturity (in thousands): As of July 31, 2016 Amortized Cost Fair Value Due within one year $ 78,421 $ 78,470 Due in one to five years 284,585 285,886 Total $ 363,006 $ 364,356 |
Schedule of Gross Unrealized Losses and Fair Values for Investments that were in Continuous Unrealized Loss Position for Less Than 12 Months, Aggregated by Investments Category | The following table presents gross unrealized losses and fair values for those investments that were in a continuous unrealized loss position for less than 12 months as of July 31, 2016 , aggregated by investment category (in thousands): Less than 12 months Fair Value Unrealized Loss U.S. government notes $ 2,002 $ (3 ) U.S. government agencies 6,492 (6 ) Corporate debt securities 13,689 (15 ) Total $ 22,183 $ (24 ) |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 6 Months Ended |
Jul. 31, 2016 | |
Balance Sheet Components Disclosure [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net, consists of the following (in thousands): As of January 31, 2016 As of July 31, 2016 Test equipment $ 65,663 $ 94,914 Computer, equipment and software 31,388 45,340 Furniture and fixtures 2,852 4,028 Leasehold improvements 4,935 7,839 Total property and equipment 104,838 152,121 Less: accumulated depreciation and amortization (52,209 ) (73,598 ) Property and equipment, net $ 52,629 $ 78,523 |
Schedule of Intangible Assets, Net | Intangible assets, net, consist of the following (in thousands): As of January 31, 2016 As of July 31, 2016 Technology patents $ 9,125 $ 10,125 Accumulated amortization (2,145 ) (2,813 ) Intangible assets, net $ 6,980 $ 7,312 |
Schedule of Expected Amortization Expenses for Intangible Assets | As of July 31, 2016 , expected amortization expense for intangible assets for each of the next five years and thereafter is as follows (in thousands): Fiscal Years Ending January 31, Estimated Future Amortization Expense Remainder of 2017 $ 752 2018 1,504 2019 1,504 2020 1,504 2021 1,504 Thereafter 544 Total $ 7,312 |
Schedule of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consist of the following (in thousands): As of January 31, 2016 As of July 31, 2016 Sales and use tax payable $ 299 $ 150 Accrued professional fees 3,044 3,214 Accrued marketing 2,684 6,237 Accrued travel and entertainment expenses 2,182 3,223 Income tax payable 1,791 1,285 Other accrued liabilities 4,076 6,355 Total accrued expenses and other liabilities $ 14,076 $ 20,464 |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 6 Months Ended |
Jul. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based 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, 2016 68,879,087 $ 6.43 7.9 $ 505,131 Options granted 1,979,000 12.70 Options exercised (4,258,667 ) 1.57 Options forfeited/cancelled (1,492,727 ) 11.09 Balance as of July 31, 2016 65,106,693 $ 6.83 7.5 $ 432,684 Vested and exercisable as of July 31, 2016 26,456,291 $ 3.16 6.5 $ 254,711 |
Summary of Restricted Stock Unit Activity Under 2015 Plan | A summary of the restricted stock unit activity under our 2015 Plan and related information is as follows: Number of Restricted Stock Units Outstanding Weighted- Average Grant Date Fair Value Unvested Balance as of January 31, 2016 53,000 $ 16.98 Granted 5,513,900 13.46 Vested (264,648 ) 14.38 Forfeited (134,734 ) 14.51 Unvested Balance as of July 31, 2016 5,167,518 $ 13.42 |
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 July 31, Six Months Ended July 31, 2015 2016 2015 2016 Cost of revenue—product $ 40 $ 181 $ 96 $ 287 Cost of revenue—support 521 1,712 854 2,804 Research and development 6,804 13,976 10,429 25,634 Sales and marketing 2,536 8,732 5,980 16,251 General and administrative 1,899 3,295 3,300 5,918 Total stock-based compensation expense $ 11,800 $ 27,896 $ 20,659 $ 50,894 |
Net Loss per Share Attributab21
Net Loss per Share Attributable to Common Stockholders (Tables) | 6 Months Ended |
Jul. 31, 2016 | |
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 July 31, Six Months Ended July 31, 2015 2016 2015 2016 Net loss $ (63,837 ) $ (59,550 ) $ (112,957 ) $ (123,338 ) Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 33,688 192,730 33,154 191,026 Net loss per share attributable to common stockholders, basic and diluted $ (1.89 ) $ (0.31 ) $ (3.41 ) $ (0.65 ) |
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 July 31, Six Months Ended July 31, 2015 2016 2015 2016 Convertible preferred stock (on an if-converted basis) 122,281 — 122,281 — Stock options to purchase common stock 59,354 65,567 57,358 66,974 Restricted stock units — 4,682 — 3,046 Early exercised stock options 3,837 2,446 4,119 2,555 Employee stock purchase plan — 953 — 953 Total 185,472 73,648 183,758 73,528 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jul. 31, 2016 | |
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 July 31, Six Months Ended July 31, 2015 2016 2015 2016 United States $ 65,603 $ 122,103 $ 124,277 $ 233,330 Rest of the world 19,058 41,111 34,461 69,831 Total revenue $ 84,661 $ 163,214 $ 158,738 $ 303,161 |
Schedule of Long-Lived Assets by Geographic Area | Long-lived assets by geographic area are summarized as follows (in thousands): As of January 31, 2016 As of July 31, 2016 United States $ 50,501 $ 75,425 Rest of the world 2,128 3,098 Total long-lived assets $ 52,629 $ 78,523 |
Basis of Presentation and Sum23
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jul. 31, 2016 | Apr. 30, 2016 | Jul. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | Jan. 31, 2016 | |
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||
Restricted cash | $ 12,732 | $ 12,732 | $ 7,132 | |||
Deferred commissions, current | 14,023 | 14,023 | 15,703 | |||
Deferred income taxes, non-current | 14,100 | 14,100 | 14,300 | |||
Sales commission expenses | 19,600 | $ 9,700 | 37,200 | $ 18,600 | ||
Decrease in provision for income taxes | 106 | 57 | 526 | 214 | ||
Accumulated deficit | (680,752) | (680,752) | $ (555,335) | |||
Total stock-based compensation expense | $ 27,896 | $ 11,800 | 50,894 | $ 20,659 | ||
Accounting Standards Update 2016-09, Forfeiture Rate Component | New Accounting Pronouncement, Early Adoption, Effect | ||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||
Decrease in provision for income taxes | $ (535) | 535 | ||||
Total stock-based compensation expense | 864 | $ 864 | ||||
Accounting Standards Update 2016-09, Forfeiture Rate Component | Accumulated Deficit | New Accounting Pronouncement, Early Adoption, Effect | ||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||
Cumulative-effect adjustment, new accounting standard | $ 2,100 |
Financial Instruments - Summary
Financial Instruments - Summary of Cash Equivalents, Marketable Securities and Restricted Cash by Significant Investment Categories (Details) - USD ($) $ in Thousands | Jul. 31, 2016 | Jan. 31, 2016 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 385,953 | $ 52,746 |
Gross Unrealized Gains | 1,375 | 0 |
Gross Unrealized Losses | (24) | 0 |
Fair Value | 387,304 | 52,746 |
Cash Equivalents | 22,948 | 45,614 |
Marketable Securities | 364,356 | 0 |
Restricted Cash | 12,732 | 7,132 |
Money Market Funds | Level 1 | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 45,614 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 45,614 | |
Cash Equivalents | 45,614 | |
Restricted Cash | 0 | |
Certificate of Deposit | Level 2 | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 7,132 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 7,132 | |
Cash Equivalents | 0 | |
Restricted Cash | $ 7,132 | |
Money Market Accounts | Level 1 | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 0 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 0 | |
Cash Equivalents | 0 | |
Marketable Securities | 0 | |
Restricted Cash | 12,732 | |
U.S. Government Treasury Notes | Level 2 | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 135,581 | |
Gross Unrealized Gains | 181 | |
Gross Unrealized Losses | (3) | |
Fair Value | 135,759 | |
Cash Equivalents | 18,546 | |
Marketable Securities | 117,213 | |
Restricted Cash | 0 | |
U.S. Government Agencies | Level 2 | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 47,655 | |
Gross Unrealized Gains | 41 | |
Gross Unrealized Losses | (6) | |
Fair Value | 47,690 | |
Cash Equivalents | 4,001 | |
Marketable Securities | 43,689 | |
Restricted Cash | 0 | |
Corporate Debt Securities | Level 2 | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 200,093 | |
Gross Unrealized Gains | 1,146 | |
Gross Unrealized Losses | (15) | |
Fair Value | 201,224 | |
Cash Equivalents | 401 | |
Marketable Securities | 200,823 | |
Restricted Cash | 0 | |
Foreign Government Bonds | Level 2 | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 2,624 | |
Gross Unrealized Gains | 7 | |
Gross Unrealized Losses | 0 | |
Fair Value | 2,631 | |
Cash Equivalents | 0 | |
Marketable Securities | 2,631 | |
Restricted Cash | $ 0 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Amortized Cost and Estimated Fair Value of Marketable Securities by Contractual Maturity (Details) $ in Thousands | Jul. 31, 2016USD ($) |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | |
Due within one year, Amortized Cost | $ 78,421 |
Due in one to five years, Amortized Cost | 284,585 |
Total, Amortized Cost | 363,006 |
Due within one year, Fair Value | 78,470 |
Due in one to five years, Fair Value | 285,886 |
Total, Fair Value | $ 364,356 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) | Jul. 31, 2016USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Securities in unrealized loss position for more than 12 months | $ 0 |
Financial Instruments - Sched27
Financial Instruments - Schedule of Gross Unrealized Losses and Fair Values for Investments that were in Continuous Unrealized Loss Position for Less Than 12 Months, Aggregated by Investments Category (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jul. 31, 2016USD ($) | Jul. 31, 2016USD ($) | |
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value of Less Than 12 Months | $ 22,183 | $ 22,183 |
Unrealized Losses of Less Than 12 Months | (24) | (24) |
Gross realized gains, available-for-sale securities | 104 | 110 |
U.S. Government Notes | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value of Less Than 12 Months | 2,002 | 2,002 |
Unrealized Losses of Less Than 12 Months | (3) | (3) |
U.S. Government Agencies | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value of Less Than 12 Months | 6,492 | 6,492 |
Unrealized Losses of Less Than 12 Months | (6) | (6) |
Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value of Less Than 12 Months | 13,689 | 13,689 |
Unrealized Losses of Less Than 12 Months | $ (15) | $ (15) |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jul. 31, 2016 | Jan. 31, 2016 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 152,121 | $ 104,838 |
Less: accumulated depreciation and amortization | (73,598) | (52,209) |
Property and equipment, net | 78,523 | 52,629 |
Test equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 94,914 | 65,663 |
Computer, equipment and software | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 45,340 | 31,388 |
Furniture and fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 4,028 | 2,852 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 7,839 | $ 4,935 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | |
Balance Sheet Components Disclosure [Abstract] | ||||
Depreciation and amortization | $ 11,600 | $ 7,200 | $ 21,700 | $ 13,400 |
Intangible assets amortization expense | $ 342 | $ 326 | $ 668 | $ 652 |
Balance Sheet Components - Sc30
Balance Sheet Components - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2016 | Jan. 31, 2016 | |
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, net | $ 7,312 | $ 6,980 |
Technology patents | ||
Finite Lived Intangible Assets [Line Items] | ||
Technology patents | 10,125 | 9,125 |
Accumulated amortization | (2,813) | (2,145) |
Intangible assets, net | 7,312 | $ 6,980 |
Acquired technology patents | $ 1,000 | |
Weighted average amortization life | 5 years |
Balance Sheet Components - Sc31
Balance Sheet Components - Schedule of Expected Amortization Expenses for Intangible Assets (Details) - USD ($) $ in Thousands | Jul. 31, 2016 | Jan. 31, 2016 |
Intangible Assets Net Disclosure [Abstract] | ||
Remainder of 2017 | $ 752 | |
2,018 | 1,504 | |
2,019 | 1,504 | |
2,020 | 1,504 | |
2,021 | 1,504 | |
Thereafter | 544 | |
Intangible assets, net | $ 7,312 | $ 6,980 |
Balance Sheet Components - Sc32
Balance Sheet Components - Schedule of Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Jul. 31, 2016 | Jan. 31, 2016 |
Balance Sheet Components Disclosure [Abstract] | ||
Sales and use tax payable | $ 150 | $ 299 |
Accrued professional fees | 3,214 | 3,044 |
Accrued marketing | 6,237 | 2,684 |
Accrued travel and entertainment expenses | 3,223 | 2,182 |
Income tax payable | 1,285 | 1,791 |
Other accrued liabilities | 6,355 | 4,076 |
Total accrued expenses and other liabilities | $ 20,464 | $ 14,076 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | Mar. 15, 2016USD ($) | Nov. 26, 2013patent | Jul. 31, 2016USD ($)lease_agreement | Jan. 31, 2016USD ($) |
Commitments And Contingencies [Line Items] | ||||
Outstanding letters of credit | $ 7,700,000 | $ 7,100,000 | ||
Royalty damages | $ 14,000,000 | |||
Maximum | ||||
Commitments And Contingencies [Line Items] | ||||
Reasonably possible loss contingency (up to) | $ 14,000,000 | |||
Patent Infringement | ||||
Commitments And Contingencies [Line Items] | ||||
Patent infringement allegations number of patents | patent | 5 | |||
Patent infringement allegations number of patents which went to trial | patent | 2 | |||
Office Facility Leases | ||||
Commitments And Contingencies [Line Items] | ||||
Number of lease agreements | lease_agreement | 3 | |||
Total operating lease obligations | $ 39,500,000 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) | Jul. 31, 2016class$ / sharesshares | Jan. 31, 2016$ / sharesshares | Oct. 31, 2015shares |
Class Of Stock [Line Items] | |||
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 | 20,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 | |
Number of classes of stock | class | 2 | ||
Preferred stock, shares outstanding (in shares) | 0 | 0 | |
Common stock, shares authorized (in shares) | 2,250,000,000 | 2,250,000,000 | |
Common stock, par value per share (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |
Common stock, shares issued (in shares) | 196,466,000 | 190,509,000 | |
Common stock, shares outstanding (in shares) | 196,466,000 | 190,509,000 | |
Class A Common Stock | |||
Class Of Stock [Line Items] | |||
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 | |
Common stock, par value per share (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |
Common stock, shares issued (in shares) | 71,516,602 | 28,769,000 | |
Common stock, shares outstanding (in shares) | 71,516,602 | 28,769,000 | |
Class B Common Stock | |||
Class Of Stock [Line Items] | |||
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 | |
Common stock, par value per share (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |
Common stock, shares issued (in shares) | 124,949,816 | 161,740,000 | |
Common stock, shares outstanding (in shares) | 124,949,816 | 161,740,000 |
Equity Incentive Plans - Additi
Equity Incentive Plans - Additional Information (Details) | Mar. 16, 2016USD ($) | Aug. 31, 2015USD ($)periodshares | Jul. 31, 2016USD ($)shares | Jul. 31, 2015USD ($) | Jul. 31, 2016USD ($)planshares | Jul. 31, 2015USD ($)shares | Jul. 29, 2016$ / shares |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of equity incentive plans | plan | 2 | ||||||
Total stock-based compensation expense | $ 27,896,000 | $ 11,800,000 | $ 50,894,000 | $ 20,659,000 | |||
Unrecognized compensation cost, stock options | 172,700,000 | $ 172,700,000 | |||||
Unrecognized compensation cost for stock options, weighted-average period | 3 years 2 months | ||||||
Performance Shares | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Total stock-based compensation expense | $ 1,400,000 | $ 514,000 | $ 2,000,000 | $ 954,000 | |||
Number of options granted, net of cancellations (in shares) | shares | 780,000 | 83,000 | |||||
Restricted Stock Units | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Unrecognized compensation cost for stock options, weighted-average period | 2 years 11 months | ||||||
Unrecognized compensation cost | $ 64,200,000 | $ 64,200,000 | |||||
2015 Equity Incentive Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Equity awards of vest expire period (no later than) | 10 years | ||||||
2015 Equity Incentive Plan | Minimum | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Purchase price as percentage of fair market value of common stock | 100.00% | ||||||
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] | |||||||
Number of purchase periods | period | 4 | ||||||
Purchase period, term | 6 months | ||||||
Modification charge related to the ESPP reset | $ 10,600,000 | ||||||
Employee stock purchase plan offering period | 24 months | ||||||
Total stock-based compensation expense | $ 4,300,000 | $ 8,600,000 | |||||
Unrecognized stock-based compensation expense | $ 24,900,000 | $ 24,900,000 | |||||
Class A Common Stock | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Closing price of stock (in dollars per share) | $ / shares | $ 12.60 | ||||||
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 | |||||
Increase in shares reserved by percentage of capital stock | 5.00% | ||||||
Class A Common Stock | 2015 Employee Stock Purchase Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Purchase price as percentage of fair market value of common stock | 85.00% | ||||||
Shares reserved for future issuance (in shares) | shares | 3,500,000 | ||||||
Payroll deductions percentage | 30.00% | ||||||
Share cap for ESPP at purchase date (in shares) | shares | 3,000 | ||||||
Calendar year gap for ESPP contribution amount | $ 25,000 |
Equity Incentive Plans - Summar
Equity Incentive Plans - Summary of Activity Under the Equity Incentive Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jul. 31, 2016 | Jul. 31, 2016 | Jan. 31, 2016 | |
Options Outstanding, Number of Shares | |||
Options Outstanding, Number of Shares, Beginning balance | 68,879,087 | ||
Options Outstanding, Number of Shares, Options granted | 1,979,000 | ||
Options Outstanding, Number of Shares, Options exercised | (4,258,667) | ||
Options Outstanding, Number of Shares, Options forfeited/cancelled | (1,492,727) | ||
Options Outstanding, Number of Shares, Ending balance | 65,106,693 | 65,106,693 | 68,879,087 |
Options Outstanding, Number of Shares, Vested and exercisable | 26,456,291 | 26,456,291 | |
Options Outstanding, Weighted Average Exercise Price | |||
Weighted Average Exercise Price, Beginning balance (in dollars per share) | $ 6.43 | ||
Weighted Average Exercise Price, Options granted (in dollars per share) | 12.70 | ||
Weighted Average Exercise Price, Options exercised (in dollars per share) | 1.57 | ||
Weighted Average Exercise Price, Options forfeited/cancelled (in dollars per share) | 11.09 | ||
Weighted Average Exercise Price, Ending balance (in dollars per share) | $ 6.83 | 6.83 | $ 6.43 |
Weighted Average Exercise Price, Vested and exercisable (in dollars per share) | $ 3.16 | $ 3.16 | |
Weighted Average Remaining Contractual Life (Years) | 7 years 6 months | 7 years 11 months | |
Weighted Average Remaining Contractual Life (Years), Vested and exercisable | 6 years 6 months | ||
Aggregate Intrinsic Value | $ 432,684 | $ 432,684 | $ 505,131 |
Aggregate Intrinsic Value, Vested and exercisable | $ 254,711 | $ 254,711 |
Equity Incentive Plans - Summ37
Equity Incentive Plans - Summary of Restricted Stock Unit Activity Under 2015 Plan (Details) - Restricted Stock Units | 6 Months Ended |
Jul. 31, 2016$ / sharesshares | |
Number of Restricted Stock Units Outstanding | |
Number of Restricted Stock Units Outstanding, Unvested, Beginning balance (in shares) | shares | 53,000 |
Number of Restricted Stock Units Outstanding, Granted (in shares) | shares | 5,513,900 |
Number of Restricted Stock Units Outstanding, Vested (in shares) | shares | (264,648) |
Number of Restricted Stock Units Outstanding, Forfeited (in shares) | shares | (134,734) |
Number of Restricted Stock Units Outstanding, Unvested, Ending balance (in shares) | shares | 5,167,518 |
Weighted-Average Grant Date Fair Value | |
Weighted-Average Grant Date Fair Value, Beginning balance (in dollars per share) | $ / shares | $ 16.98 |
Weighted-Average Grant Date Fair Value, Granted (in dollars per share) | $ / shares | 13.46 |
Weighted-Average Grant Date Fair Value, Vested (in dollars per share) | $ / shares | 14.38 |
Weighted-Average Grant Date Fair Value, Forfeited (in dollars per share) | $ / shares | 14.51 |
Weighted-Average Grant Date Fair Value, Ending balance (in dollars per share) | $ / shares | $ 13.42 |
Equity Incentive Plans - Summ38
Equity Incentive Plans - Summary of Stock-Based Compensation Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 27,896 | $ 11,800 | $ 50,894 | $ 20,659 |
Cost of revenue—product | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 181 | 40 | 287 | 96 |
Cost of revenue—support | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 1,712 | 521 | 2,804 | 854 |
Research and development | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 13,976 | 6,804 | 25,634 | 10,429 |
Sales and marketing | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 8,732 | 2,536 | 16,251 | 5,980 |
General and administrative | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 3,295 | $ 1,899 | $ 5,918 | $ 3,300 |
Net Loss per Share Attributab39
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 | 6 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (59,550) | $ (63,837) | $ (123,338) | $ (112,957) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted (in shares) | 192,730 | 33,688 | 191,026 | 33,154 |
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share) | $ (0.31) | $ (1.89) | $ (0.65) | $ (3.41) |
Net Loss per Share Attributab40
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 | 6 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share, amount (in shares) | 73,648 | 185,472 | 73,528 | 183,758 |
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 (in shares) | 65,567 | 59,354 | 66,974 | 57,358 |
Restricted stock units | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share, amount (in shares) | 4,682 | 0 | 3,046 | 0 |
Early exercised stock options | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share, amount (in shares) | 2,446 | 3,837 | 2,555 | 4,119 |
Employee stock purchase plan | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share, amount (in shares) | 953 | 0 | 953 | 0 |
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 (in shares) | 0 | 122,281 | 0 | 122,281 |
Segment Information - Additiona
Segment Information - Additional Information (Details) - segment | 3 Months Ended | 6 Months Ended |
Jul. 31, 2016 | Jul. 31, 2016 | |
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 | 6 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total revenue | $ 163,214 | $ 84,661 | $ 303,161 | $ 158,738 |
United States | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total revenue | 122,103 | 65,603 | 233,330 | 124,277 |
Rest of the world | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total revenue | $ 41,111 | $ 19,058 | $ 69,831 | $ 34,461 |
Segment Information - Schedul43
Segment Information - Schedule of Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | Jul. 31, 2016 | Jan. 31, 2016 |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total long-lived assets | $ 78,523 | $ 52,629 |
United States | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total long-lived assets | 75,425 | 50,501 |
Rest of the world | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total long-lived assets | $ 3,098 | $ 2,128 |