Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 31, 2017 | Nov. 30, 2017 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Oct. 31, 2017 | |
Document Fiscal Year Focus | 2,018 | |
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 | Large Accelerated Filer | |
Class A | ||
Entity Common Stock, Shares Outstanding (in shares) | 112,788,614 | |
Class B | ||
Entity Common Stock, Shares Outstanding (in shares) | 103,994,591 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 31, 2017 | Jan. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 182,039 | $ 183,675 |
Marketable securities | 369,337 | 362,986 |
Accounts receivable, net of allowance of $2,000 and $2,073 as of January 31, 2017 and October 31, 2017 | 202,006 | 168,978 |
Inventory | 37,208 | 23,498 |
Deferred commissions, current | 20,187 | 15,787 |
Prepaid expenses and other current assets | 24,522 | 25,157 |
Total current assets | 835,299 | 780,081 |
Property and equipment, net | 84,264 | 81,695 |
Intangible assets, net | 5,432 | 6,560 |
Deferred income taxes, non-current | 965 | 844 |
Other assets, non-current | 36,596 | 30,565 |
Total assets | 962,556 | 899,745 |
Current liabilities: | ||
Accounts payable | 66,664 | 52,719 |
Accrued compensation and benefits | 50,077 | 39,252 |
Accrued expenses and other liabilities | 24,945 | 21,697 |
Deferred revenue, current | 183,889 | 158,095 |
Liability related to early exercised stock options | 568 | 1,362 |
Total current liabilities | 326,143 | 273,125 |
Deferred revenue, non-current | 173,641 | 145,031 |
Other liabilities, non-current | 3,651 | 3,159 |
Total liabilities | 503,435 | 421,315 |
Commitments and contingencies (Note 5) | ||
Stockholders’ equity: | ||
Preferred stock, par value of $0.0001 per share— 20,000 shares authorized as of January 31, 2017 and October 31, 2017; no shares issued and outstanding as of January 31, 2017 and October 31, 2017 | 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, 2017 and October 31, 2017; 204,364 (Class A 87,027, Class B 117,337) and 216,016 (Class A 109,178, Class B 106,838) shares issued and outstanding as of January 31, 2017 and October 31, 2017 | 20 | 20 |
Additional paid-in capital | 1,428,024 | 1,281,452 |
Accumulated other comprehensive loss | (719) | (562) |
Accumulated deficit | (968,204) | (802,480) |
Total stockholders’ equity | 459,121 | 478,430 |
Total liabilities and stockholders’ equity | $ 962,556 | $ 899,745 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Oct. 31, 2017 | Jan. 31, 2017 |
Accounts receivable, allowance | $ 2,073 | $ 2,000 |
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) | 216,016,000 | 204,364,000 |
Common stock, shares outstanding (in shares) | 216,016,000 | 204,364,000 |
Class A | ||
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) | 109,177,866 | 87,027,000 |
Common stock, shares outstanding (in shares) | 109,177,866 | 87,027,000 |
Class B | ||
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) | 106,837,859 | 117,337,000 |
Common stock, shares outstanding (in shares) | 106,837,859 | 117,337,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Revenue: | ||||
Product | $ 223,196 | $ 160,523 | $ 536,634 | $ 403,181 |
Support | 54,478 | 36,433 | 148,132 | 96,936 |
Total revenue | 277,674 | 196,956 | 684,766 | 500,117 |
Cost of revenue: | ||||
Product | 75,392 | 54,725 | 179,289 | 131,618 |
Support | 20,467 | 14,597 | 56,569 | 41,531 |
Total cost of revenue | 95,859 | 69,322 | 235,858 | 173,149 |
Gross profit | 181,815 | 127,634 | 448,908 | 326,968 |
Operating expenses: | ||||
Research and development | 68,927 | 61,612 | 203,716 | 173,185 |
Sales and marketing | 129,299 | 91,392 | 346,896 | 262,073 |
General and administrative | 25,406 | 22,810 | 67,664 | 64,021 |
Legal settlement | 0 | 30,000 | 0 | 30,000 |
Total operating expenses | 223,632 | 205,814 | 618,276 | 529,279 |
Loss from operations | (41,817) | (78,180) | (169,368) | (202,311) |
Other income (expense), net | 1,138 | (192) | 6,399 | 1,127 |
Loss before provision for income taxes | (40,679) | (78,372) | (162,969) | (201,184) |
Provision for income taxes | 970 | 441 | 2,755 | 967 |
Net loss | $ (41,649) | $ (78,813) | $ (165,724) | $ (202,151) |
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share) | $ (0.20) | $ (0.40) | $ (0.79) | $ (1.05) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted (in shares) | 213,274 | 195,807 | 209,456 | 192,637 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (41,649) | $ (78,813) | $ (165,724) | $ (202,151) |
Other comprehensive income (loss): | ||||
Change in unrealized net gain (loss) on available-for-sale securities | (439) | (554) | (157) | 298 |
Comprehensive loss | $ (42,088) | $ (79,367) | $ (165,881) | $ (201,853) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 31, 2017 | Oct. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (165,724) | $ (202,151) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 45,525 | 35,978 |
Stock-based compensation expense | 107,920 | 79,129 |
Other | 879 | 1,051 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (33,630) | (38,186) |
Inventory | (14,314) | (189) |
Deferred commissions | (7,629) | 1,844 |
Prepaid expenses and other current assets | (112) | 39 |
Accounts payable | 11,808 | 3,639 |
Accrued compensation and other liabilities | 14,629 | 6,786 |
Deferred revenue | 54,404 | 60,180 |
Net cash provided by (used in) operating activities | 13,756 | (51,880) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property and equipment | (44,351) | (64,602) |
Purchase of intangible assets | 0 | (1,000) |
Purchases of marketable securities | (151,998) | (483,558) |
Sales of marketable securities | 46,067 | 79,815 |
Maturities of marketable securities | 99,021 | 38,213 |
Net increase in restricted cash | (2,029) | (5,600) |
Net cash used in investing activities | (53,290) | (436,732) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net proceeds from exercise of stock options | 15,761 | 10,725 |
Proceeds from issuance of common stock under employee stock purchase plan | 22,137 | 25,606 |
Net cash provided by financing activities | 37,898 | 36,331 |
Net decrease in cash and cash equivalents | (1,636) | (452,281) |
Cash and cash equivalents, beginning of period | 183,675 | 604,742 |
Cash and cash equivalents, end of period | 182,039 | 152,461 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash paid for income taxes | 2,410 | 2,510 |
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING INFORMATION | ||
Property and equipment purchased but not yet paid | 9,831 | 5,956 |
Vesting of early exercised stock options | $ 794 | $ 794 |
Business Overview
Business Overview | 9 Months Ended |
Oct. 31, 2017 | |
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 are building a data 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 | 9 Months Ended |
Oct. 31, 2017 | |
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 year ended January 31, 2017 . 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 2018 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 management believes 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 corporate credit card program and letters of credit related to our facility leases. As of January 31, 2017 and October 31, 2017 , we had restricted cash of $12.7 million and $14.8 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, in other comprehensive income (loss), which is reflected as a component of stockholders’ equity. We evaluate our securities to assess whether those with unrealized loss positions are other than temporarily impaired. We consider impairments to be other than temporary if they are related to deterioration in credit risk or if it is likely we will sell the securities before the recovery of their cost basis. Realized gains and losses from the sale of marketable securities and declines in value deemed to be other than temporary are determined on the specific identification method. To date, there have been no declines in value deemed to be other than temporary in any of our securities. Realized gains and losses 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, 2017 and October 31, 2017 , we recorded deferred commissions, current, of $15.8 million and $20.2 million , and deferred commissions, non-current, of $14.9 million and $18.2 million , in other assets, non-current, in the condensed consolidated balance sheets. We recognized sales commission expenses of $21.6 million and $38.3 million during the three months ended October 31, 2016 and 2017 , and $58.8 million and $84.3 million during the nine months October 31, 2016 and 2017 . Recent Accounting Pronouncements 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 (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. The new standard will be effective for us beginning on February 1, 2018. This standard may be adopted using either the full or modified retrospective methods. We anticipate adopting the standard retrospectively to all prior periods presented. While we are in the final stage of evaluating the impact of the new standard on our accounting policies, processes, and system requirements, and have assigned internal and external resources to assist in our evaluation and system implementation, we believe the impact on our consolidated financial statements upon the adoption of this standard will be primarily an increase in revenue, a decrease in deferred revenue balance, a decrease in sales and marketing expenses and an increase in deferred commissions balance. The impact to revenue and deferred revenue balance is primarily attributable to the removal of current limitation on contingent revenue accelerating revenue recognition for certain contracts. The impact to sales and marketing expenses and deferred commissions balance is primarily attributable to a change in current amortization period from contract term to expected customer life as required by the new standard. Additionally, we have made and will continue to make investments in systems to enable timely and accurate reporting under the new standard. 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 will be 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 will be 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. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016-18), which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 will be effective for us beginning on February 1, 2018 and will be applied on a retrospective basis. Early adoption is permitted. We do not expect the adoption of this standard to have any material impact on our consolidated financial statements. In May 2017, the FASB issued ASU No 2017-09, Compensation—Stock Compensation (Topic 718) — Scope of Modification Accounting, to clarify when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new standard, modification is required only if the fair value, the vesting conditions, or the classification of an award as equity or liability changes as a result of the change in terms or conditions. ASU 2017-09 will be effective for us beginning February 1, 2018 and will be applied prospectively. Early adoption is permitted. We are currently evaluating the impact of this standard on our consolidated financial statements. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Oct. 31, 2017 | |
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 or quoted market prices for similar instruments. 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, 2017 and October 31, 2017 (in thousands): As of January 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Marketable Securities Restricted Cash Level 1 Money market accounts $ — $ — $ — $ 12,734 $ — $ — $ 12,734 Level 2 U.S. government treasury notes 148,298 22 (289 ) 148,031 13,226 134,805 — U.S. government agencies 40,398 2 (159 ) 40,241 — 40,241 — Corporate debt securities 185,701 242 (379 ) 185,564 — 185,564 — Foreign government bonds 2,377 2 (3 ) 2,376 — 2,376 — Total $ 376,774 $ 268 $ (830 ) $ 388,946 $ 13,226 $ 362,986 $ 12,734 As of October 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Marketable Securities Restricted Cash Level 1 Money market accounts $ — $ — $ — $ 14,763 $ — $ — $ 14,763 Level 2 U.S. government treasury notes 144,297 6 (419 ) 143,884 6,374 137,510 — U.S. government agencies 44,517 — (205 ) 44,312 — 44,312 — Corporate debt securities 187,616 209 (310 ) 187,515 — 187,515 — Total $ 376,430 $ 215 $ (934 ) $ 390,474 $ 6,374 $ 369,337 $ 14,763 The amortized cost and estimated fair value of our marketable securities are shown below by contractual maturity (in thousands): As of October 31, 2017 Amortized Cost Fair Value Due within one year $ 173,537 $ 173,413 Due in one to five years 196,519 195,924 Total $ 370,056 $ 369,337 Based on our evaluation of available evidence, we concluded that the gross unrealized losses on our marketable securities as of October 31, 2017 were temporary in nature. The following table presents gross unrealized losses and fair values for those investments that were in a continuous unrealized loss as of October 31, 2017 , aggregated by investment category (in thousands): Less than 12 months Greater than 12 months Total Fair Value Unrealized Loss Fair Unrealized Fair Unrealized U.S. government treasury notes $ 122,530 $ (381 ) $ 3,965 $ (38 ) $ 126,495 $ (419 ) U.S. government agencies 31,914 (106 ) 12,398 (99 ) 44,312 (205 ) Corporate debt securities 81,288 (168 ) 24,941 (142 ) 106,229 (310 ) Total $ 235,732 $ (655 ) $ 41,304 $ (279 ) $ 277,036 $ (934 ) Realized gains or losses on sale of marketable securities were not significant for all periods presented. |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Oct. 31, 2017 | |
Balance Sheet Components Disclosure [Abstract] | |
Balance Sheet Components | Balance Sheet Components Inventory Inventory consists of the following (in thousands): As of As of Raw materials $ 3,003 $ 5,926 Finished goods 20,495 31,282 Inventory $ 23,498 $ 37,208 Property and Equipment, Net Property and equipment, net, consists of the following (in thousands): As of As of Test equipment $ 105,955 $ 135,497 Computer equipment and software 54,521 66,270 Furniture and fixtures 4,494 5,337 Leasehold improvements 10,332 13,815 Total property and equipment 175,302 220,919 Less: accumulated depreciation and amortization (93,607 ) (136,655 ) Property and equipment, net $ 81,695 $ 84,264 Depreciation and amortization expense was $13.2 million and $15.2 million for the three months ended October 31, 2016 and 2017 , and $34.9 million and $44.4 million for the nine months ended October 31, 2016 and 2017 . Intangible Assets, Net Intangible assets, net, consist of the following (in thousands): As of As of Technology patents $ 10,125 $ 10,125 Accumulated amortization (3,565 ) (4,693 ) Intangible assets, net $ 6,560 $ 5,432 Intangible assets amortization expense was $376,000 for three months ended October 31, 2016 and 2017 , and $1.0 million and $1.1 million for the nine months ended October 31, 2016 and 2017 . The weighted-average remaining useful life of technology patents is 3.6 years. Due to the defensive nature of these patents, the amortization expense is included in general and administrative expenses in the condensed consolidated statements of operations. As of October 31, 2017 , expected amortization expense for intangible assets for each of the next five years is as follows (in thousands): Years Ending January 31, Estimated Future Amortization Expense Remainder of 2018 $ 376 2019 1,504 2020 1,504 2021 1,504 2022 544 Total $ 5,432 Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consist of the following (in thousands): As of As of Sales and use tax payable $ 540 $ 1,256 Accrued professional fees 1,765 1,430 Accrued marketing 6,718 8,899 Accrued travel and entertainment expenses 2,235 4,112 Income tax payable 1,135 1,620 Other accrued liabilities 9,304 7,628 Total accrued expenses and other liabilities $ 21,697 $ 24,945 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases During the nine months ended October 31, 2017 , we extended the lease term of an existing office facility with total additional lease obligations of approximately $2.0 million with the lease expiring through March 2019. Additionally, in August 2017, we entered into a seven -year term operating lease for approximately 45,831 square feet of office space in Mountain View, California with a total rent obligation and management fees of $32.2 million . Letters of Credit In connection with the lease executed in August 2017, we issued a letter of credit of $2.6 million . As of January 31, 2017 and October 31, 2017 , we had outstanding letters of credit in the aggregate amount of $7.7 million and $9.6 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 August 2026 . Legal Matters In September 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 for our initial public offering (IPO), asserting claims under sections 11, 12 and 15 of the Securities Act. Substantially identical lawsuits were subsequently filed in the same Court, bringing the same claims against the same defendants. In October 2016, these actions were consolidated under the caption In re Pure Storage, Inc. Shareholder Litigation . In January 2017 and May 2017, the defendants filed demurrers (motions to dismiss) to plaintiffs' complaints on the grounds that the plaintiffs failed to state a claim under the Securities Act, and both times, in April 2017 and August 2017, the Court sustained the demurrers in defendants' favor as to all claims with leave to amend. The plaintiffs subsequently agreed to dismiss the lawsuit entirely, with no amendment or appeal, and in October 2017, the Court dismissed the consolidated action without prejudice. 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 October 31, 2017 . 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 | 9 Months Ended |
Oct. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Preferred Stock We have 20,000,000 authorized 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, 2017 , 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 October 31, 2017 , 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, 2017 , 109,177,866 shares of Class A common stock were issued and outstanding and 106,837,859 shares of Class B common stock were issued and outstanding. |
Equity Incentive Plans
Equity Incentive Plans | 9 Months Ended |
Oct. 31, 2017 | |
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 (the 2009 Plan) and the 2015 Equity Incentive Plan (the 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 initial public offering (IPO) and serves as the successor to the 2009 Plan. The 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 the 2009 Plan after the effective date of the 2015 Plan, and no new grants will be made from the 2009 Plan. Outstanding awards granted under the 2009 Plan will remain subject to the terms of the 2009 Plan and applicable award agreements, until such outstanding awards that are stock options are exercised, terminated or expired by their terms. 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 year 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 number of shares reserved for issuance under our 2015 ESPP increases automatically on the first day of February of each year through 2025, in an amount equal to the lesser of (i) 1% of the total number of shares of our capital stock outstanding as of the immediately preceding January 31, and (ii) 3,500,000 shares of Class A common stock. 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). The 2015 ESPP provides for 24 month offering periods beginning March 16th and September 16th of each year, and each offering period consists 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. Our closing stock price on the new offering date of March 16, 2017 was lower than the closing stock prices for both the offerings that started on March 16, 2016 and September 16, 2016, which triggered an ESPP reset for those offerings. The ESPP reset resulted in a modification charge of approximately $9.0 million , which is being recognized over the new 24 -month offering period ending on March 15, 2019. In addition, the original remaining unamortized stock-based compensation expense for each of the offerings is being recognized over the same 24 -month offering period ending on March 15, 2019. We recognized stock-based compensation expense related to our 2015 ESPP of $4.8 million and $4.7 million during the three months ended October 31, 2016 and 2017 , and $13.4 million and $12.6 million during the nine months ended October 31, 2016 and 2017 . As of October 31, 2017 , there was $32.2 million of unrecognized stock-based compensation expense related to our 2015 ESPP which is expected to be recognized over a weighted-average period of approximately 1.4 years. Stock Options A summary of stock option 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, 2017 56,840,189 $ 7.15 7.0 $ 315,502 Options granted 1,000,000 14.92 Options exercised (5,502,179 ) 2.86 Options forfeited/cancelled (2,362,891 ) 14.41 Balance as of October 31, 2017 49,975,119 $ 7.43 6.4 $ 457,252 Vested and exercisable as of October 31, 2017 30,500,061 $ 4.84 5.9 $ 355,871 The aggregate intrinsic value of options vested and exercisable as of October 31, 2017 is calculated based on the difference between the exercise price and the closing price of $16.43 of our Class A common stock on October 31, 2017 . The weighted average fair value of the options granted during the nine months ended October 31, 2017 was $5.58 . As of October 31, 2017 , total unrecognized employee compensation cost related to outstanding options was $89.3 million , which is expected to be recognized over a weighted-average period of approximately 2.7 years. 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 Aggregate Unvested Balance as of January 31, 2017 8,783,024 $ 13.06 $ 99,863 Granted 14,315,164 11.65 Vested (3,627,367 ) 12.33 Forfeited (1,292,330 ) 11.75 Unvested Balance as of October 31, 2017 18,178,491 $ 12.21 $ 298,674 As of October 31, 2017 , total unrecognized employee compensation cost related to unvested restricted stock units was $191.6 million , which is expected to be recognized over a weighted-average period of approximately 2.6 years. In March 2017, we granted 750,000 performance stock units (net of 77,000 canceled units during the nine months ended October 31, 2017 ) with both performance and service vesting conditions payable in common shares from 0% to 150% of the target number granted, contingent upon the degree to which the performance condition is met. In August 2017, we granted 464,744 performance stock units with both performance and service vesting conditions payable in common shares from 0% to 120% of the target number granted, contingent upon the degree to which the performance condition is met. For the performance stock units granted in March 2017, management determined it is probable that the performance condition will be satisfied and accordingly, we began recognizing stock-based compensation expense during the three months ended April 30, 2017. Stock-based compensation expense for these performance stock units was $1.3 million and $2.9 million for the three and nine months ended October 31, 2017 , recognized on an accelerated attribution method. The performance condition for the performance stock units granted in August 2017 will be determined at a future date and accordingly, there is no grant date for these awards from an accounting perspective and grant date fair value is not considered in the calculation of weighted-average grant date fair value in the table above. No stock-based compensation expense was recognized for these performance awards in the three and nine months ended October 31, 2017 . 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 Nine Months Ended 2016 2017 2016 2017 Cost of revenue—product $ 138 $ 143 $ 425 $ 898 Cost of revenue—support 1,178 2,422 3,982 6,441 Research and development 15,241 18,073 40,875 51,632 Sales and marketing 8,468 12,104 24,719 34,169 General and administrative 3,210 6,121 9,128 14,780 Total stock-based compensation expense $ 28,235 $ 38,863 $ 79,129 $ 107,920 The tax benefit related to stock-based compensation expense for all periods presented was not material. |
Net Loss per Share Attributable
Net Loss per Share Attributable to Common Stockholders | 9 Months Ended |
Oct. 31, 2017 | |
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. 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 potentially dilutive common stock equivalents outstanding for the period. For purposes of this calculation, 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 Nine Months Ended 2016 2017 2016 2017 Net loss $ (78,813 ) $ (41,649 ) $ (202,151 ) $ (165,724 ) Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 195,807 213,274 192,637 209,456 Net loss per share attributable to common stockholders, basic and diluted $ (0.40 ) $ (0.20 ) $ (1.05 ) $ (0.79 ) 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 Nine Months Ended 2016 2017 2016 2017 Stock options to purchase common stock 62,874 51,685 65,594 53,786 Restricted stock units 6,342 17,201 4,155 14,913 Early exercised stock options 2,246 196 2,451 287 Employee stock purchase plan 434 585 434 585 Total 71,896 69,667 72,634 69,571 |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 31, 2017 | |
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 October 31, 2017 , there were no material changes to either the nature or the amounts of the uncertain tax positions previously determined for the year ended January 31, 2017 . |
Segment Information
Segment Information | 9 Months Ended |
Oct. 31, 2017 | |
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 Nine Months Ended 2016 2017 2016 2017 United States $ 152,134 $ 192,977 $ 385,464 $ 504,937 Rest of the world 44,822 84,697 114,653 179,829 Total revenue $ 196,956 $ 277,674 $ 500,117 $ 684,766 Long-lived assets by geographic area are summarized as follows (in thousands): As of As of United States $ 78,692 $ 80,387 Rest of the world 3,003 3,877 Total long-lived assets $ 81,695 $ 84,264 |
Basis of Presentation and Sum17
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 31, 2017 | |
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 year ended January 31, 2017 . 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 2018 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 management believes 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 corporate credit card program and letters of credit related to our facility 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, in other comprehensive income (loss), which is reflected as a component of stockholders’ equity. We evaluate our securities to assess whether those with unrealized loss positions are other than temporarily impaired. We consider impairments to be other than temporary if they are related to deterioration in credit risk or if it is likely we will sell the securities before the recovery of their cost basis. Realized gains and losses from the sale of marketable securities and declines in value deemed to be other than temporary are determined on the specific identification method. To date, there have been no declines in value deemed to be other than temporary in any of our securities. Realized gains and losses 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. |
Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements 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 (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. The new standard will be effective for us beginning on February 1, 2018. This standard may be adopted using either the full or modified retrospective methods. We anticipate adopting the standard retrospectively to all prior periods presented. While we are in the final stage of evaluating the impact of the new standard on our accounting policies, processes, and system requirements, and have assigned internal and external resources to assist in our evaluation and system implementation, we believe the impact on our consolidated financial statements upon the adoption of this standard will be primarily an increase in revenue, a decrease in deferred revenue balance, a decrease in sales and marketing expenses and an increase in deferred commissions balance. The impact to revenue and deferred revenue balance is primarily attributable to the removal of current limitation on contingent revenue accelerating revenue recognition for certain contracts. The impact to sales and marketing expenses and deferred commissions balance is primarily attributable to a change in current amortization period from contract term to expected customer life as required by the new standard. Additionally, we have made and will continue to make investments in systems to enable timely and accurate reporting under the new standard. 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 will be 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 will be 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. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016-18), which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 will be effective for us beginning on February 1, 2018 and will be applied on a retrospective basis. Early adoption is permitted. We do not expect the adoption of this standard to have any material impact on our consolidated financial statements. In May 2017, the FASB issued ASU No 2017-09, Compensation—Stock Compensation (Topic 718) — Scope of Modification Accounting, to clarify when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new standard, modification is required only if the fair value, the vesting conditions, or the classification of an award as equity or liability changes as a result of the change in terms or conditions. ASU 2017-09 will be effective for us beginning February 1, 2018 and will be applied prospectively. Early adoption is permitted. We are currently evaluating the impact of this standard on our consolidated financial statements. |
Fair Value Measurements | 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 or quoted market prices for similar instruments. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
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, 2017 and October 31, 2017 (in thousands): As of January 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Marketable Securities Restricted Cash Level 1 Money market accounts $ — $ — $ — $ 12,734 $ — $ — $ 12,734 Level 2 U.S. government treasury notes 148,298 22 (289 ) 148,031 13,226 134,805 — U.S. government agencies 40,398 2 (159 ) 40,241 — 40,241 — Corporate debt securities 185,701 242 (379 ) 185,564 — 185,564 — Foreign government bonds 2,377 2 (3 ) 2,376 — 2,376 — Total $ 376,774 $ 268 $ (830 ) $ 388,946 $ 13,226 $ 362,986 $ 12,734 As of October 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Marketable Securities Restricted Cash Level 1 Money market accounts $ — $ — $ — $ 14,763 $ — $ — $ 14,763 Level 2 U.S. government treasury notes 144,297 6 (419 ) 143,884 6,374 137,510 — U.S. government agencies 44,517 — (205 ) 44,312 — 44,312 — Corporate debt securities 187,616 209 (310 ) 187,515 — 187,515 — Total $ 376,430 $ 215 $ (934 ) $ 390,474 $ 6,374 $ 369,337 $ 14,763 |
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 October 31, 2017 Amortized Cost Fair Value Due within one year $ 173,537 $ 173,413 Due in one to five years 196,519 195,924 Total $ 370,056 $ 369,337 |
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 as of October 31, 2017 , aggregated by investment category (in thousands): Less than 12 months Greater than 12 months Total Fair Value Unrealized Loss Fair Unrealized Fair Unrealized U.S. government treasury notes $ 122,530 $ (381 ) $ 3,965 $ (38 ) $ 126,495 $ (419 ) U.S. government agencies 31,914 (106 ) 12,398 (99 ) 44,312 (205 ) Corporate debt securities 81,288 (168 ) 24,941 (142 ) 106,229 (310 ) Total $ 235,732 $ (655 ) $ 41,304 $ (279 ) $ 277,036 $ (934 ) |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
Balance Sheet Components Disclosure [Abstract] | |
Schedule of Inventory | Inventory consists of the following (in thousands): As of As of Raw materials $ 3,003 $ 5,926 Finished goods 20,495 31,282 Inventory $ 23,498 $ 37,208 |
Schedule of Property and Equipment, Net | Property and equipment, net, consists of the following (in thousands): As of As of Test equipment $ 105,955 $ 135,497 Computer equipment and software 54,521 66,270 Furniture and fixtures 4,494 5,337 Leasehold improvements 10,332 13,815 Total property and equipment 175,302 220,919 Less: accumulated depreciation and amortization (93,607 ) (136,655 ) Property and equipment, net $ 81,695 $ 84,264 |
Schedule of Intangible Assets, Net | Intangible assets, net, consist of the following (in thousands): As of As of Technology patents $ 10,125 $ 10,125 Accumulated amortization (3,565 ) (4,693 ) Intangible assets, net $ 6,560 $ 5,432 |
Schedule of Expected Amortization Expenses for Intangible Assets | As of October 31, 2017 , expected amortization expense for intangible assets for each of the next five years is as follows (in thousands): Years Ending January 31, Estimated Future Amortization Expense Remainder of 2018 $ 376 2019 1,504 2020 1,504 2021 1,504 2022 544 Total $ 5,432 |
Schedule of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consist of the following (in thousands): As of As of Sales and use tax payable $ 540 $ 1,256 Accrued professional fees 1,765 1,430 Accrued marketing 6,718 8,899 Accrued travel and entertainment expenses 2,235 4,112 Income tax payable 1,135 1,620 Other accrued liabilities 9,304 7,628 Total accrued expenses and other liabilities $ 21,697 $ 24,945 |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Activity Under Equity Incentive Plans and Related Information | A summary of stock option 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, 2017 56,840,189 $ 7.15 7.0 $ 315,502 Options granted 1,000,000 14.92 Options exercised (5,502,179 ) 2.86 Options forfeited/cancelled (2,362,891 ) 14.41 Balance as of October 31, 2017 49,975,119 $ 7.43 6.4 $ 457,252 Vested and exercisable as of October 31, 2017 30,500,061 $ 4.84 5.9 $ 355,871 |
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 Aggregate Unvested Balance as of January 31, 2017 8,783,024 $ 13.06 $ 99,863 Granted 14,315,164 11.65 Vested (3,627,367 ) 12.33 Forfeited (1,292,330 ) 11.75 Unvested Balance as of October 31, 2017 18,178,491 $ 12.21 $ 298,674 |
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 Nine Months Ended 2016 2017 2016 2017 Cost of revenue—product $ 138 $ 143 $ 425 $ 898 Cost of revenue—support 1,178 2,422 3,982 6,441 Research and development 15,241 18,073 40,875 51,632 Sales and marketing 8,468 12,104 24,719 34,169 General and administrative 3,210 6,121 9,128 14,780 Total stock-based compensation expense $ 28,235 $ 38,863 $ 79,129 $ 107,920 |
Net Loss per Share Attributab21
Net Loss per Share Attributable to Common Stockholders (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
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 Nine Months Ended 2016 2017 2016 2017 Net loss $ (78,813 ) $ (41,649 ) $ (202,151 ) $ (165,724 ) Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 195,807 213,274 192,637 209,456 Net loss per share attributable to common stockholders, basic and diluted $ (0.40 ) $ (0.20 ) $ (1.05 ) $ (0.79 ) |
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 Nine Months Ended 2016 2017 2016 2017 Stock options to purchase common stock 62,874 51,685 65,594 53,786 Restricted stock units 6,342 17,201 4,155 14,913 Early exercised stock options 2,246 196 2,451 287 Employee stock purchase plan 434 585 434 585 Total 71,896 69,667 72,634 69,571 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
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 Nine Months Ended 2016 2017 2016 2017 United States $ 152,134 $ 192,977 $ 385,464 $ 504,937 Rest of the world 44,822 84,697 114,653 179,829 Total revenue $ 196,956 $ 277,674 $ 500,117 $ 684,766 |
Schedule of Long-Lived Assets by Geographic Area | Long-lived assets by geographic area are summarized as follows (in thousands): As of As of United States $ 78,692 $ 80,387 Rest of the world 3,003 3,877 Total long-lived assets $ 81,695 $ 84,264 |
Basis of Presentation and Sum23
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | Jan. 31, 2017 | |
Accounting Policies [Abstract] | |||||
Restricted cash | $ 14,763 | $ 14,763 | $ 12,734 | ||
Deferred commissions, current | 20,187 | 20,187 | 15,787 | ||
Deferred income taxes, non-current | 18,200 | 18,200 | $ 14,900 | ||
Sales commission expenses | $ 38,300 | $ 21,600 | $ 84,300 | $ 58,800 |
Financial Instruments - Summary
Financial Instruments - Summary of Cash Equivalents, Marketable Securities and Restricted Cash by Significant Investment Categories (Details) - USD ($) $ in Thousands | Oct. 31, 2017 | Jan. 31, 2017 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 376,430 | $ 376,774 |
Gross Unrealized Gains | 215 | 268 |
Gross Unrealized Losses | (934) | (830) |
Fair Value | 390,474 | 388,946 |
Cash Equivalents | 6,374 | 13,226 |
Marketable Securities | 369,337 | 362,986 |
Restricted Cash | 14,763 | 12,734 |
Money market accounts | Level 1 | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 0 | 0 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 14,763 | 12,734 |
Cash Equivalents | 0 | 0 |
Marketable Securities | 0 | 0 |
Restricted Cash | 14,763 | 12,734 |
U.S. government treasury notes | Level 2 | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 144,297 | 148,298 |
Gross Unrealized Gains | 6 | 22 |
Gross Unrealized Losses | (419) | (289) |
Fair Value | 143,884 | 148,031 |
Cash Equivalents | 6,374 | 13,226 |
Marketable Securities | 137,510 | 134,805 |
Restricted Cash | 0 | 0 |
U.S. government agencies | Level 2 | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 44,517 | 40,398 |
Gross Unrealized Gains | 0 | 2 |
Gross Unrealized Losses | (205) | (159) |
Fair Value | 44,312 | 40,241 |
Cash Equivalents | 0 | 0 |
Marketable Securities | 44,312 | 40,241 |
Restricted Cash | 0 | 0 |
Corporate debt securities | Level 2 | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 187,616 | 185,701 |
Gross Unrealized Gains | 209 | 242 |
Gross Unrealized Losses | (310) | (379) |
Fair Value | 187,515 | 185,564 |
Cash Equivalents | 0 | 0 |
Marketable Securities | 187,515 | 185,564 |
Restricted Cash | $ 0 | 0 |
Foreign government bonds | Level 2 | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 2,377 | |
Gross Unrealized Gains | 2 | |
Gross Unrealized Losses | (3) | |
Fair Value | 2,376 | |
Cash Equivalents | 0 | |
Marketable Securities | 2,376 | |
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 | Oct. 31, 2017USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Due within one year, Amortized Cost | $ 173,537 |
Due in one to five years, Amortized Cost | 196,519 |
Total, Amortized Cost | 370,056 |
Due within one year, Fair Value | 173,413 |
Due in one to five years, Fair Value | 195,924 |
Total, Fair Value | $ 369,337 |
Financial Instruments - Sched26
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 | Oct. 31, 2017USD ($) |
Fair Value | |
Less than 12 months | $ 235,732 |
Greater than 12 months | 41,304 |
Total | 277,036 |
Unrealized Loss | |
Less than 12 months | (655) |
Greater than 12 months | (279) |
Total | (934) |
U.S. government treasury notes | |
Fair Value | |
Less than 12 months | 122,530 |
Greater than 12 months | 3,965 |
Total | 126,495 |
Unrealized Loss | |
Less than 12 months | (381) |
Greater than 12 months | (38) |
Total | (419) |
U.S. government agencies | |
Fair Value | |
Less than 12 months | 31,914 |
Greater than 12 months | 12,398 |
Total | 44,312 |
Unrealized Loss | |
Less than 12 months | (106) |
Greater than 12 months | (99) |
Total | (205) |
Corporate debt securities | |
Fair Value | |
Less than 12 months | 81,288 |
Greater than 12 months | 24,941 |
Total | 106,229 |
Unrealized Loss | |
Less than 12 months | (168) |
Greater than 12 months | (142) |
Total | $ (310) |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Inventory (Details) - USD ($) $ in Thousands | Oct. 31, 2017 | Jan. 31, 2017 |
Balance Sheet Components Disclosure [Abstract] | ||
Raw materials | $ 5,926 | $ 3,003 |
Finished goods | 31,282 | 20,495 |
Inventory | $ 37,208 | $ 23,498 |
Balance Sheet Components - Sc28
Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Oct. 31, 2017 | Jan. 31, 2017 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 220,919 | $ 175,302 |
Less: accumulated depreciation and amortization | (136,655) | (93,607) |
Property and equipment, net | 84,264 | 81,695 |
Test equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 135,497 | 105,955 |
Computer equipment and software | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 66,270 | 54,521 |
Furniture and fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 5,337 | 4,494 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 13,815 | $ 10,332 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Balance Sheet Components Disclosure [Abstract] | ||||
Depreciation and amortization | $ 15,200 | $ 13,200 | $ 44,400 | $ 34,900 |
Intangible assets amortization expense | $ 376 | $ 376 | $ 1,100 | $ 1,000 |
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted-average remaining useful life | 3 years 7 months 6 days |
Balance Sheet Components - Sc30
Balance Sheet Components - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Thousands | Oct. 31, 2017 | Jan. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, net | $ 5,432 | $ 6,560 |
Technology patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Technology patents | 10,125 | 10,125 |
Accumulated amortization | (4,693) | (3,565) |
Intangible assets, net | $ 5,432 | $ 6,560 |
Balance Sheet Components - Sc31
Balance Sheet Components - Schedule of Expected Amortization Expenses for Intangible Assets (Details) - USD ($) $ in Thousands | Oct. 31, 2017 | Jan. 31, 2017 |
Balance Sheet Components Disclosure [Abstract] | ||
Remainder of 2018 | $ 376 | |
2,019 | 1,504 | |
2,020 | 1,504 | |
2,021 | 1,504 | |
2,022 | 544 | |
Intangible assets, net | $ 5,432 | $ 6,560 |
Balance Sheet Components - Sc32
Balance Sheet Components - Schedule of Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Oct. 31, 2017 | Jan. 31, 2017 |
Balance Sheet Components Disclosure [Abstract] | ||
Sales and use tax payable | $ 1,256 | $ 540 |
Accrued professional fees | 1,430 | 1,765 |
Accrued marketing | 8,899 | 6,718 |
Accrued travel and entertainment expenses | 4,112 | 2,235 |
Income tax payable | 1,620 | 1,135 |
Other accrued liabilities | 7,628 | 9,304 |
Total accrued expenses and other liabilities | $ 24,945 | $ 21,697 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | 1 Months Ended | |||
Aug. 31, 2017USD ($)ft² | Oct. 31, 2017USD ($) | Jan. 31, 2017USD ($) | Oct. 31, 2016USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Total operating lease obligations | $ 2 | |||
Lease term | 7 years | |||
Area of leased office space (in sqft) | ft² | 45,831 | |||
Base rent obligation | $ 32.2 | |||
Outstanding letters of credit | $ 2.6 | $ 7.7 | $ 9.6 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) | Oct. 31, 2017class$ / sharesshares | Jan. 31, 2017$ / sharesshares |
Class Of Stock [Line Items] | ||
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 |
Number of classes of stock | class | 2 | |
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) | 216,016,000 | 204,364,000 |
Common stock, shares outstanding (in shares) | 216,016,000 | 204,364,000 |
Class A | ||
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) | 109,177,866 | 87,027,000 |
Common stock, shares outstanding (in shares) | 109,177,866 | 87,027,000 |
Class B | ||
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) | 106,837,859 | 117,337,000 |
Common stock, shares outstanding (in shares) | 106,837,859 | 117,337,000 |
Equity Incentive Plans - Additi
Equity Incentive Plans - Additional Information (Details) $ in Thousands | Mar. 16, 2016USD ($) | Aug. 31, 2015periodshares | Oct. 31, 2017USD ($)shares | Oct. 31, 2016USD ($) | Oct. 31, 2017USD ($)planshares | Oct. 31, 2016USD ($) |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number of equity incentive plans | plan | 2 | |||||
Total stock-based compensation expense | $ 38,863 | $ 28,235 | $ 107,920 | $ 79,129 | ||
Compensation cost, weighted average term | 2 years 8 months 12 days | |||||
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 Equity Incentive Plan | Class A | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares initially reserved for issuance (in shares) | shares | 27,000,000 | 27,000,000 | ||||
Increase in shares reserved by percentage of capital stock | 5.00% | |||||
2015 Employee Stock Purchase Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Employee stock purchase plan offering period | 24 months | |||||
Number of purchase periods | period | 4 | |||||
Purchase period, term | 6 months | |||||
Modification charge related to the ESPP reset | $ 9,000 | |||||
Total stock-based compensation expense | $ 4,700 | $ 4,800 | $ 12,600 | $ 13,400 | ||
Unrecognized stock-based compensation expense | $ 32,200 | $ 32,200 | ||||
Compensation cost, weighted average term | 1 year 4 months 24 days | |||||
2015 Employee Stock Purchase Plan | Class A | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Increase in shares reserved by percentage of capital stock | 1.00% | |||||
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 |
Equity Incentive Plans - Stock
Equity Incentive Plans - Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Oct. 31, 2017 | Jan. 31, 2017 | |
Options Outstanding, Number of Shares | ||
Beginning balance (in shares) | 56,840,189 | |
Options granted (in shares) | 1,000,000 | |
Options exercised (in shares) | (5,502,179) | |
Options forfeited/cancelled (in shares) | (2,362,891) | |
Ending balance (in shares) | 49,975,119 | 56,840,189 |
Options Outstanding, Number of Shares, Vested and exercisable (in shares) | 30,500,061 | |
Options Outstanding, Weighted Average Exercise Price | ||
Beginning balance (in dollars per share) | $ 7.15 | |
Options granted (in dollars per share) | 14.92 | |
Options exercised (in dollars per share) | 2.86 | |
Options forfeited/cancelled (in dollars per share) | 14.41 | |
Ending balance (in dollars per share) | 7.43 | $ 7.15 |
Weighted Average Exercise Price, Vested and exercisable (in dollars per share) | $ 4.84 | |
Weighted- Average Remaining Contractual Life | ||
Weighted Average Remaining Contractual Life | 6 years 4 months 24 days | 7 years |
Weighted Average Remaining Contractual Life, Vested and exercisable | 5 years 10 months 24 days | |
Aggregate Intrinsic Value | ||
Aggregate Intrinsic Value | $ 457,252 | $ 315,502 |
Aggregate Intrinsic Value, Vested and exercisable | $ 355,871 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted average fair value of the options granted (in dollars per share) | $ 5.58 | |
Unrecognized compensation cost, stock options | $ 89,300 | |
Compensation cost, weighted average term | 2 years 8 months 12 days | |
Class A | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Closing price of stock (in dollars per share) | $ 16.43 |
Equity Incentive Plans - Restri
Equity Incentive Plans - Restricted Stock Units (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Aug. 31, 2017 | Mar. 30, 2017 | Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | Jan. 31, 2017 | |
Weighted-Average Grant Date Fair Value | |||||||
Compensation cost, weighted average term | 2 years 8 months 12 days | ||||||
Stock-based compensation expense | $ 38,863,000 | $ 28,235,000 | $ 107,920,000 | $ 79,129,000 | |||
Restricted Stock Units | |||||||
Number of Restricted Stock Units Outstanding | |||||||
Unvested, Beginning balance (in shares) | 8,783,024 | ||||||
Granted (in shares) | 14,315,164 | ||||||
Vested (in shares) | (3,627,367) | ||||||
Forfeited (in shares) | (1,292,330) | ||||||
Unvested, Ending balance (in shares) | 18,178,491 | 18,178,491 | |||||
Weighted-Average Grant Date Fair Value | |||||||
Beginning balance (in dollars per share) | $ 13.06 | ||||||
Granted (in dollars per share) | 11.65 | ||||||
Vested (in dollars per share) | 12.33 | ||||||
Forfeited (in dollars per share) | 11.75 | ||||||
Ending balance (in dollars per share) | $ 12.21 | $ 12.21 | |||||
Aggregate Intrinsic Value | $ 298,674,000 | $ 298,674,000 | $ 99,863,000 | ||||
Compensation not yet recognized | 191,600,000 | $ 191,600,000 | |||||
Compensation cost, weighted average term | 2 years 7 months | ||||||
Performance Shares | Granted March 2017 | |||||||
Number of Restricted Stock Units Outstanding | |||||||
Granted (in shares) | 750,000 | ||||||
Forfeited (in shares) | (77,000) | ||||||
Weighted-Average Grant Date Fair Value | |||||||
Stock-based compensation expense | 1,300,000 | $ 2,900,000 | |||||
Performance Shares | Granted March 2017 | Minimum | |||||||
Weighted-Average Grant Date Fair Value | |||||||
Vesting rights, percentage of target number granted | 0.00% | ||||||
Performance Shares | Granted March 2017 | Maximum | |||||||
Weighted-Average Grant Date Fair Value | |||||||
Vesting rights, percentage of target number granted | 150.00% | ||||||
Performance Shares | Granted August 2017 | |||||||
Number of Restricted Stock Units Outstanding | |||||||
Granted (in shares) | 464,744 | ||||||
Weighted-Average Grant Date Fair Value | |||||||
Stock-based compensation expense | $ 0 | $ 0 | |||||
Performance Shares | Granted August 2017 | Minimum | |||||||
Weighted-Average Grant Date Fair Value | |||||||
Vesting rights, percentage of target number granted | 0.00% | ||||||
Performance Shares | Granted August 2017 | Maximum | |||||||
Weighted-Average Grant Date Fair Value | |||||||
Vesting rights, percentage of target number granted | 120.00% |
Equity Incentive Plans - Stock-
Equity Incentive Plans - Stock-Based Compensation Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 38,863 | $ 28,235 | $ 107,920 | $ 79,129 |
Cost of revenue—product | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 143 | 138 | 898 | 425 |
Cost of revenue—support | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 2,422 | 1,178 | 6,441 | 3,982 |
Research and development | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 18,073 | 15,241 | 51,632 | 40,875 |
Sales and marketing | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 12,104 | 8,468 | 34,169 | 24,719 |
General and administrative | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 6,121 | $ 3,210 | $ 14,780 | $ 9,128 |
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 | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (41,649) | $ (78,813) | $ (165,724) | $ (202,151) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted (in shares) | 213,274 | 195,807 | 209,456 | 192,637 |
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share) | $ (0.20) | $ (0.40) | $ (0.79) | $ (1.05) |
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 | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share, amount (in shares) | 69,667 | 71,896 | 69,571 | 72,634 |
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) | 51,685 | 62,874 | 53,786 | 65,594 |
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) | 17,201 | 6,342 | 14,913 | 4,155 |
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) | 196 | 2,246 | 287 | 2,451 |
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) | 585 | 434 | 585 | 434 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 9 Months Ended |
Oct. 31, 2017segment | |
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, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total revenue | $ 277,674 | $ 196,956 | $ 684,766 | $ 500,117 |
United States | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total revenue | 192,977 | 152,134 | 504,937 | 385,464 |
Rest of the world | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total revenue | $ 84,697 | $ 44,822 | $ 179,829 | $ 114,653 |
Segment Information - Schedul43
Segment Information - Schedule of Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | Oct. 31, 2017 | Jan. 31, 2017 |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total long-lived assets | $ 84,264 | $ 81,695 |
United States | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total long-lived assets | 80,387 | 78,692 |
Rest of the world | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total long-lived assets | $ 3,877 | $ 3,003 |