Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 31, 2018 | Aug. 24, 2018 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 31, 2018 | |
Document Fiscal Year Focus | 2,019 | |
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 | Large Accelerated Filer | |
Class A | ||
Entity Common Stock, Shares Outstanding (in shares) | 205,282,020 | |
Class B | ||
Entity Common Stock, Shares Outstanding (in shares) | 30,892,432 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 31, 2018 | Jan. 31, 2018 | [1] |
Current assets: | |||
Cash and cash equivalents | $ 370,457 | $ 244,057 | |
Marketable securities | 736,205 | 353,289 | |
Accounts receivable, net of allowance of $1,062 and $957 as of January 31, 2018 and July 31, 2018 | 242,409 | 243,001 | |
Inventory | 41,673 | 34,497 | |
Deferred commissions, current | 23,521 | 21,088 | |
Prepaid expenses and other current assets | 36,071 | 47,552 | |
Total current assets | 1,450,336 | 943,484 | |
Property and equipment, net | 101,718 | 89,142 | |
Intangible assets, net | 4,305 | 5,057 | |
Deferred income taxes, non-current | 1,534 | 1,060 | |
Restricted cash | 15,778 | 14,763 | |
Deferred commissions, non-current | 67,948 | 66,225 | |
Other assets, non-current | 4,610 | 4,264 | |
Total assets | 1,646,229 | 1,123,995 | |
Current liabilities: | |||
Accounts payable | 68,058 | 84,420 | |
Accrued compensation and benefits | 51,654 | 59,898 | |
Accrued expenses and other liabilities | 27,049 | 26,829 | |
Deferred revenue, current | 213,100 | 191,229 | |
Liability related to early exercised stock options | 0 | 320 | |
Total current liabilities | 359,861 | 362,696 | |
Convertible senior notes, net | 436,687 | 0 | |
Deferred revenue, non-current | 200,147 | 182,873 | |
Other liabilities, non-current | 5,140 | 4,025 | |
Total liabilities | 1,001,835 | 549,594 | |
Commitments and contingencies (Note 6) | |||
Stockholders’ equity: | |||
Preferred stock, par value of $0.0001 per share— 20,000 shares authorized as of January 31, 2018 and July 31, 2018; no shares issued and outstanding as of January 31, 2018 and July 31, 2018 | 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, 2018 and July 31, 2018; 220,979 (Class A 129,502, Class B 91,477) and 235,412 (Class A 204,052, Class B 31,360) shares issued and outstanding as of January 31, 2018 and July 31, 2018 | 24 | 22 | |
Additional paid-in capital | 1,675,210 | 1,479,883 | |
Accumulated other comprehensive loss | (2,826) | (1,917) | |
Accumulated deficit | (1,028,014) | (903,587) | |
Total stockholders’ equity | 644,394 | 574,401 | |
Total liabilities and stockholders’ equity | $ 1,646,229 | $ 1,123,995 | |
[1] | *Prior period information has been adjusted to reflect the adoption impact of Accounting Standards Codification 606, Revenue from Contracts with Customers (ASC 606), which we adopted on February 1, 2018. |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jul. 31, 2018 | Jan. 31, 2018 | [1] |
Accounts receivable, allowance | $ 957 | $ 1,062 | |
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) | 235,412,000 | 220,979,000 | |
Common stock, shares outstanding (in shares) | 235,412,000 | 220,979,000 | |
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) | 204,051,868 | 129,502,000 | |
Common stock, shares outstanding (in shares) | 204,051,868 | 129,502,000 | |
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) | 31,359,938 | 91,477,000 | |
Common stock, shares outstanding (in shares) | 31,359,938 | 91,477,000 | |
[1] | *Prior period information has been adjusted to reflect the adoption impact of Accounting Standards Codification 606, Revenue from Contracts with Customers (ASC 606), which we adopted on February 1, 2018. |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jul. 31, 2018 | Jul. 31, 2017 | [1] | Jul. 31, 2018 | Jul. 31, 2017 | ||
Revenue: | ||||||
Product | $ 241,137 | $ 179,669 | $ 436,586 | $ 322,519 | ||
Support subscription | 67,747 | 45,001 | 128,243 | 84,796 | ||
Total revenue | 308,884 | 224,670 | 564,829 | 407,315 | ||
Cost of revenue: | ||||||
Product | 78,262 | 57,252 | 144,682 | 103,897 | ||
Support subscription | 24,457 | 19,199 | 47,667 | 36,102 | ||
Total cost of revenue | 102,719 | 76,451 | 192,349 | 139,999 | ||
Gross profit | 206,165 | 148,219 | 372,480 | 267,316 | ||
Operating expenses: | ||||||
Research and development | 84,031 | 69,361 | 162,523 | 134,789 | ||
Sales and marketing | 143,749 | 117,552 | 266,116 | 209,315 | ||
General and administrative | 33,591 | 22,162 | 60,921 | 42,258 | ||
Total operating expenses | 261,371 | 209,075 | 489,560 | 386,362 | ||
Loss from operations | (55,206) | (60,856) | (117,080) | (119,046) | ||
Other income (expense), net | (4,032) | 3,266 | (5,031) | 5,261 | ||
Loss before provision for income taxes | (59,238) | (57,590) | (122,111) | (113,785) | ||
Provision for income taxes | 885 | 821 | 2,316 | 1,785 | ||
Net loss | $ (60,123) | $ (58,411) | [2] | $ (124,427) | $ (115,570) | [3] |
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share) | $ (0.26) | $ (0.28) | $ (0.55) | $ (0.56) | ||
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted (in shares) | 229,359 | 209,193 | 226,609 | 207,515 | ||
[1] | * Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018. | |||||
[2] | * Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018. | |||||
[3] | * Prior period information has been adjusted to reflect the adoption impact of ASC 606 and ASU 2016-18, which we adopted on February 1, 2018 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jul. 31, 2018 | Jul. 31, 2017 | [2] | Jul. 31, 2018 | Jul. 31, 2017 | ||
Statement of Comprehensive Income [Abstract] | ||||||
Net loss | $ (60,123) | $ (58,411) | [1] | $ (124,427) | $ (115,570) | [3] |
Other comprehensive income (loss): | ||||||
Change in unrealized net gain (loss) on available-for-sale securities | (193) | 165 | (909) | 282 | ||
Comprehensive loss | $ (60,316) | $ (58,246) | $ (125,336) | $ (115,288) | ||
[1] | * Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018. | |||||
[2] | * Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018. | |||||
[3] | * Prior period information has been adjusted to reflect the adoption impact of ASC 606 and ASU 2016-18, which we adopted on February 1, 2018 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | [1] | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net loss | $ (124,427) | $ (115,570) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 33,590 | 30,000 | |
Amortization of debt discount and debt issuance costs | 7,889 | 0 | |
Stock-based compensation expense | 97,609 | 69,057 | |
Other | 82 | 797 | |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 707 | 25 | |
Inventory | (8,900) | (10,487) | |
Deferred commissions | (4,155) | (9,587) | |
Prepaid expenses and other assets | 11,134 | (186) | |
Accounts payable | (18,135) | 201 | |
Accrued compensation and other liabilities | (7,458) | (2,993) | |
Deferred revenue | 39,144 | 24,251 | |
Net cash provided by (used in) operating activities | 27,080 | (14,492) | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchases of property and equipment | (42,733) | (30,100) | |
Purchases of marketable securities | (494,507) | (95,358) | |
Sales of marketable securities | 13,585 | 33,529 | |
Maturities of marketable securities | 97,793 | 73,681 | |
Net cash used in investing activities | (425,862) | (18,248) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Net proceeds from exercise of stock options | 29,067 | 6,793 | |
Proceeds from issuance of common stock under employee stock purchase plan | 19,698 | 14,166 | |
Proceeds from issuance of convertible senior notes, net of issuance costs | 562,062 | 0 | |
Payment for purchase of capped calls | (64,630) | 0 | |
Repurchase of common stock | (20,000) | 0 | |
Net cash provided by financing activities | 526,197 | 20,959 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 127,415 | (11,781) | |
Cash, cash equivalents and restricted cash, beginning of period | 258,820 | 196,409 | |
Cash, cash equivalents and restricted cash, end of period | 386,235 | 184,628 | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD: | |||
Cash and cash equivalents | 370,457 | 171,894 | |
Restricted cash | 15,778 | 12,734 | |
Cash, cash equivalents and restricted cash, end of period | 386,235 | 184,628 | |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||
Cash paid for income taxes | 3,023 | 1,661 | |
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING INFORMATION | |||
Property and equipment purchased but not yet paid | 11,949 | 6,578 | |
Vesting of early exercised stock options | $ 320 | $ 546 | |
[1] | * Prior period information has been adjusted to reflect the adoption impact of ASC 606 and ASU 2016-18, which we adopted on February 1, 2018 |
Business Overview
Business Overview | 6 Months Ended |
Jul. 31, 2018 | |
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 headquartered in Mountain View, California and have wholly owned subsidiaries throughout the world. We empower innovators to build a better world with data. Our data platform replaces storage systems designed for mechanical disk with all-flash systems optimized end-to-end for solid-state memory. Our Pure1 cloud-based support and management platform simplifies storage administration, while real-time scanning enables us to find and fix issues before they have an impact. Our business model replaces the traditional forklift upgrade cycle with Evergreen Storage subscriptions to hardware and software innovation, support and maintenance. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jul. 31, 2018 | |
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, 2018 . 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 2019 or any future period. Certain prior period amounts have been adjusted as a result of adoption of new accounting pronouncements. Refer to " Recently Adopted Accounting Pronouncements" below for further information. 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 standalone selling price for revenue arrangements with multiple performance obligations, useful lives of intangible assets, property and equipment and deferred sales commissions, stock-based compensation, provision for income taxes including related reserves, and contingent liabilities. 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 related to our leases and for a vendor corporate credit card program. As of January 31, 2018 and July 31, 2018 , we had restricted cash of $14.8 million and $15.8 million on 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 accumulated other comprehensive 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 incremental costs paid to our sales force to obtain customer contracts. Deferred commissions related to product revenues are recognized upon transfer of control to customers and deferred commissions related to support subscription revenue are amortized over an expected useful life of six years. We determine the expected useful life based on an estimated benefit period by evaluating our technology development life cycle, expected customer relationship period, and other factors. We classify deferred commissions as current and non-current on our condensed consolidated balance sheets based on the timing of when we expect to recognize the expense. Amortization of deferred commissions is included in sales and marketing expense in the condensed consolidated statements of operations. Changes in total deferred commissions during the periods presented are as follows (in thousands): Three Months Ended July 31, 2018 Six Months Ended July 31, 2018 Beginning balance (1) $ 86,044 $ 87,313 Additions 24,582 40,003 Recognition of deferred commissions (19,157 ) (35,847 ) Ending balance as of July 31, 2018 $ 91,469 $ 91,469 ____________________ (1) Balance as of January 31, 2018 was adjusted to reflect the adoption of ASC 606. Of the $91.5 million total deferred commissions balance as of July 31, 2018 , we expect to recognize approximately 26% as commission expense over the next 12 months and the remainder thereafter. There was no impairment loss in relation to capitalized commissions for the three and six months ended July 31, 2017 and 2018 . Deferred Revenue Deferred revenue primarily consists of amounts that have been invoiced but that have not yet been recognized as revenue and performance obligations pertaining to support subscription services. The current portion of deferred revenue represents the amounts that are expected to be recognized as revenue within one year of the condensed consolidated balance sheet dates. Changes in total deferred revenue during the periods presented are as follows (in thousands): Three Months Ended July 31, 2018 Six Months Ended July 31, 2018 Beginning balance (1) $ 388,614 $ 374,102 Additions 92,511 167,782 Recognition of deferred revenue (67,878 ) (128,637 ) Ending balance as of July 31, 2018 $ 413,247 $ 413,247 ____________________ (1) Balance as of January 31, 2018 was adjusted to reflect the adoption of ASC 606. During the three and six months ended July 31, 2017 , we recognized $44.1 million and $75.1 million in revenue pertaining to deferred revenue as of the beginning of each period. During the three and six months ended July 31, 2018 , we recognized $60.9 million and $106.2 million in revenue pertaining to deferred revenue as of the beginning of each period. Of the $413.2 million remaining performance obligations as of July 31, 2018 , we expect to recognize approximately 52% as revenue over the next 12 months and the remainder thereafter. Substantially all of our contracted but not invoiced performance obligations are subject to cancellation and, therefore, are not considered in our remaining performance obligations. Revenue Recognition We derive revenue from two sources: (1) product revenue which includes hardware and embedded software and (2) support subscription revenue which includes customer support, hardware maintenance, and software upgrades on a when-and-if-available basis. Our product revenue is derived from the sale of storage hardware and operating system software that is integrated into the hardware. We typically recognize product revenue upon transfer of control to our customers. Products are typically shipped directly by us to customers, and our channel partners do not stock our inventory. Our support subscription revenue is derived from the sale of support subscription, which includes the right to receive unspecified software upgrades and enhancements on a when-and-if-available basis, bug fixes, parts replacement services related to the hardware, as well as access to our cloud-based management and support platform. Revenue related to support subscription is recognized ratably over the contractual term, which generally ranges from one to six years and represents our performance obligations period. The vast majority of our products are sold with support subscription agreements, which typically commence upon transfer of control of the corresponding products to our customers. Costs to service the support subscription are expensed as incurred. In addition, our Evergreen Storage program provides our customers who continually maintain active support subscription agreements for three years with an included controller refresh with each additional three year support subscription renewal. In accordance with revenue recognition guidance, the controller refresh represents an additional performance obligation and the allocated revenue is recognized in the period in which these controllers are shipped. We recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration we expect to be entitled in exchange for those goods or services. This is achieved through applying the following five-step approach: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, we satisfy a performance obligation When applying this five-step approach, we apply judgment in determining the customer's ability and intention to pay, which is based on a variety of factors including the customer's historical payment experience and/or published credit and financial information pertaining to the customer. To the extent a customer contract includes multiple promised goods or services, we determine whether promised goods or services are capable of being distinct in the context of the contract to be accounted for as a combined performance obligation. We allocate transaction price to each performance obligation for contracts that contain multiple performance obligations based on a relative standalone selling price, taking into account available information such as market conditions and internally approved pricing guidelines related to performance obligations. Recently Adopted Accounting Pronouncements 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 or ASC 606), 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. ASC 606 supersedes nearly all existing revenue recognition guidance under U.S. GAAP upon its effective date. The standard permits two methods of adoptions: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of applying the standard recognized at the date of application (cumulative catch-up transition method). We adopted the standard using the full retrospective method beginning February 1, 2018, for the year ending January 31, 2019, and our historical financial information for the years ended January 31, 2017 and 2018 has been adjusted to conform to the new standard. The most significant impact of the standard related to the removal of limitation on contingent revenue, resulting in an increase in product revenue and a decrease in support subscription revenue. In addition, the adoption of ASC 606 also resulted in differences in the timing of recognition of sales commissions. While the adoption of the standard changes certain line items within the net cash flow from operating activities, it had no impact to the net cash provided by or used in operating, investing, or financing activities on our condensed consolidated statements of cash flows. The following line items on our condensed consolidated balance sheet as of January 31, 2018 have been adjusted to reflect the adoption of ASC 606 (in thousands): As of January 31, 2018 As Previously Reported Adjustment As Adjusted Assets Deferred commissions, current $ 22,437 $ (1,349 ) $ 21,088 Deferred commissions, non-current 20,288 45,937 66,225 Total deferred commissions $ 42,725 $ 44,588 $ 87,313 Liabilities Deferred revenue, current $ 209,377 $ (18,148 ) $ 191,229 Deferred revenue, non-current 196,632 (13,759 ) 182,873 Total deferred revenue $ 406,009 $ (31,907 ) $ 374,102 Stockholders' equity Accumulated deficit $ (980,082 ) $ 76,495 $ (903,587 ) The following line items on our unaudited condensed consolidated statement of operations for the three and six months ended July 31, 2017 have been adjusted to reflect the adoption of ASC 606 (in thousands, except per share data): Three Months Ended July 31, 2017 Six Months Ended July 31, 2017 As Previously Reported Adjustment As Adjusted As Previously Reported Adjustment As Adjusted Revenue: Product $ 175,013 $ 4,656 $ 179,669 $ 313,438 $ 9,081 $ 322,519 Support subscription 49,448 (4,447 ) 45,001 93,654 (8,858 ) 84,796 Total revenue $ 224,461 $ 209 $ 224,670 $ 407,092 $ 223 $ 407,315 Gross profit $ 148,010 $ 209 $ 148,219 $ 267,093 $ 223 $ 267,316 Sales and marketing $ 120,633 $ (3,081 ) $ 117,552 $ 217,597 $ (8,282 ) $ 209,315 Total operating expenses $ 212,156 $ (3,081 ) $ 209,075 $ 394,644 $ (8,282 ) $ 386,362 Loss from operations $ (64,146 ) $ 3,290 $ (60,856 ) $ (127,551 ) $ 8,505 $ (119,046 ) Loss before provision for income taxes $ (60,880 ) $ 3,290 $ (57,590 ) $ (122,290 ) $ 8,505 $ (113,785 ) Net loss $ (61,701 ) $ 3,290 $ (58,411 ) $ (124,075 ) $ 8,505 $ (115,570 ) Net loss per share attributable to common stockholders, basic and diluted $ (0.29 ) $ 0.01 $ (0.28 ) $ (0.60 ) $ 0.04 $ (0.56 ) Unaudited revenue by geographic location based on bill-to location, which reflects the adoption impact of ASC 606, are as follows (in thousands): Three Months Ended July 31, 2017 Six Months Ended July 31, 2017 As Previously Reported Adjustment As Adjusted As Previously Reported Adjustment As Adjusted Revenue: United States $ 165,466 $ 154 $ 165,620 $ 311,960 $ 165 $ 312,125 Rest of the world 58,995 55 59,050 95,132 58 95,190 Total revenue $ 224,461 $ 209 $ 224,670 $ 407,092 $ 223 $ 407,315 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 restricted cash. We adopted ASU 2016-18 effective February 1, 2018 on a retrospective basis. Upon adoption, restricted cash is 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. The adoption of this standard increased our previously reported net cash flow from investing activities for the periods in which there were changes in restricted cash but did not impact our net cash flow from operating activities or financing activities presented on our consolidated statements of cash flows. The following line items in our unaudited condensed consolidated statement of cash flows for the six months ended July 31, 2017 have been adjusted to reflect the adoption of ASU 2016-18 and ASC 606 (in thousands): Six Months Ended July 31, 2017 As Previously Reported Adjustment As Adjusted Net loss (1) $ (124,075 ) $ 8,505 $ (115,570 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Deferred commissions (1) $ (4,607 ) $ (4,980 ) $ (9,587 ) Accrued compensation and other liabilities (1) $ 310 $ (3,303 ) $ (2,993 ) Deferred revenue (1) $ 24,473 $ (222 ) $ 24,251 Cash used in operating activities $ (14,492 ) $ — $ (14,492 ) Cash, cash equivalents and restricted cash, beginning of period (2) $ 183,675 $ 12,734 $ 196,409 Cash, cash equivalents and restricted cash, end of period (2) $ 171,894 $ 12,734 $ 184,628 _____________________________________________________ (1) Adjustment pertaining to the adoption of ASC 606. (2) Adjustment pertaining to the adoption of ASU 2016-18. In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718) (ASU 2018-07). ASU 2018-07 aligns the accounting for share-based awards to employees and non-employees to follow the same model. The new standard is effective for fiscal years beginning after December 15, 2018 using a modified retrospective transition approach. Early adoption is permitted. We adopted this standard for the three and six months ended July 31, 2018 and the adoption of this standard did not materially impact our consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted 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. ASU 2016-02 requires the use of the modified retrospective method for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. In July 2018, the FASB issued ASU No. 2018-10, Leases (Topic 842), Codification Improvements to Topic 842, Leases (ASU 2018-10) and ASU No. 2018-11, Leases (Topic 842), Targeted Improvements (ASU 2018-11). ASU 2018-11 provides a new transition method in which an entity can initially apply the new lease standards at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. These standards will be effective for us beginning on February 1, 2019 and early adoption is permitted. We expect to apply the new transition method prescribed by ASU 2018-11 at the adoption date. We are currently evaluating the impact of these standards 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 February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This standard allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (the Tax Act) and requires certain disclosures about stranded tax effects. This standard will be effective for us beginning February 1, 2019 and should be applied either in the period of adoption or retrospectively. Early adoption is permitted. We do not expect this standard to have any impact on our consolidated financial statements. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jul. 31, 2018 | |
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 1 - Observable inputs are unadjusted quoted prices in active markets for identical assets or liabilities; • Level 2 - 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 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. 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. In addition to our cash equivalents, marketable securities, and restricted cash, we measure the fair value of our convertible senior notes (the Notes) on a quarterly basis for disclosure purposes. We consider the fair value of the Notes at July 31, 2018 to be a Level 2 measurement due to limited trading activity of the Notes. Refer to Note 5 for further information. 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, 2018 and July 31, 2018 (in thousands): As of January 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Marketable Securities Restricted Cash Level 1 Money market accounts $ — $ — $ — $ 32,057 $ 17,294 $ — $ 14,763 Level 2 U.S. government treasury notes 131,643 — (651 ) 130,992 10,172 120,820 — U.S. government agencies 47,229 — (333 ) 46,896 — 46,896 — Corporate debt securities 186,506 116 (1,049 ) 185,573 — 185,573 — Total $ 365,378 $ 116 $ (2,033 ) $ 395,518 $ 27,466 $ 353,289 $ 14,763 As of July 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Marketable Securities Restricted Cash Level 1 Money market accounts $ — $ — $ — $ 29,047 $ 13,269 $ — $ 15,778 Level 2 U.S. government treasury notes 326,328 — (839 ) 325,489 58,320 267,169 — U.S. government agencies 76,443 — (374 ) 76,069 1,194 74,875 — Corporate debt securities 383,340 104 (1,713 ) 381,731 — 381,731 — Foreign government bonds 5,151 1 (3 ) 5,149 — 5,149 — Asset-backed securities 7,283 — (2 ) 7,281 — 7,281 — Total $ 798,545 $ 105 $ (2,931 ) $ 824,766 $ 72,783 $ 736,205 $ 15,778 The amortized cost and estimated fair value of our marketable securities are shown below by contractual maturity (in thousands): As of July 31, 2018 Amortized Cost Fair Value Due within one year $ 373,160 $ 372,316 Due in one to five years 365,867 363,889 Total $ 739,027 $ 736,205 The gross unrealized losses on our marketable securities as of July 31, 2018 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 July 31, 2018 , 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 $ 271,578 $ (483 ) $ 48,941 $ (356 ) $ 320,519 $ (839 ) U.S. government agencies 55,695 (227 ) 20,374 (147 ) 76,069 (374 ) Corporate debt securities 271,946 (1,454 ) 30,654 (259 ) 302,600 (1,713 ) Foreign government bonds 2,944 (3 ) — — 2,944 (3 ) Asset-backed securities 5,016 (2 ) — — 5,016 (2 ) Total $ 607,179 $ (2,169 ) $ 99,969 $ (762 ) $ 707,148 $ (2,931 ) Realized gains or losses on sale of marketable securities were not significant for all periods presented. |
Balance Sheet Components
Balance Sheet Components | 6 Months Ended |
Jul. 31, 2018 | |
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 $ 1,181 $ 2,828 Finished goods 33,316 38,845 Inventory $ 34,497 $ 41,673 Property and Equipment, Net Property and equipment, net, consists of the following (in thousands): As of As of Test equipment $ 142,311 $ 156,040 Computer equipment and software 72,329 92,863 Furniture and fixtures 5,363 5,482 Leasehold improvements 15,032 23,763 Total property and equipment 235,035 278,148 Less: accumulated depreciation and amortization (145,893 ) (176,430 ) Property and equipment, net $ 89,142 $ 101,718 Depreciation and amortization expense was $14.8 million and $16.8 million for the three months ended July 31, 2017 and 2018 , and $29.2 million and $32.8 million for the six months ended July 31, 2017 and 2018 . Intangible Assets, Net Intangible assets, net, consist of the following (in thousands): As of As of Technology patents $ 10,125 $ 10,125 Accumulated amortization (5,068 ) (5,820 ) Intangible assets, net $ 5,057 $ 4,305 Intangible assets amortization expense was $0.4 million for the three months ended July 31, 2017 and 2018 , and $0.8 million for the six months ended July 31, 2017 and 2018. The weighted-average remaining useful life of technology patents is 2.9 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 July 31, 2018 , future expected amortization expense for intangible assets is as follows (in thousands): Fiscal Years Ending January 31, Estimated Future Amortization Expense Remainder of 2019 $ 752 2020 1,504 2021 1,504 2022 545 Total $ 4,305 Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consist of the following (in thousands): As of As of Taxes payable $ 4,052 $ 3,801 Accrued marketing 5,928 5,017 Accrued travel and entertainment expenses 4,386 2,556 Other accrued liabilities 12,463 15,675 Total accrued expenses and other liabilities $ 26,829 $ 27,049 |
Convertible Senior Notes
Convertible Senior Notes | 6 Months Ended |
Jul. 31, 2018 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes | Convertible Senior Notes In April 2018, we issued $575.0 million in principal amount of 0.125% convertible senior notes due 2023, in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act and received proceeds of $562.1 million , after deducting the underwriters’ discounts and commissions. The Notes are governed by an indenture (the Indenture) between us, as the issuer, and U.S. Bank National Association, as trustee. The Notes are our senior unsecured obligations. The Indenture does not contain any financial covenants or restrictions on the payments of dividends, the incurrence of indebtedness, or the issuance or repurchase of securities by us or any of our subsidiaries. The Notes mature on April 15, 2023 unless repurchased or redeemed by us or converted in accordance with their terms prior to the maturity date. Interest is payable semi-annually in arrears on April 15 and October 15 of each year, beginning on October 15, 2018. The Notes are convertible for up to 21,884,155 shares of our common stock at an initial conversion rate of approximately 38.0594 shares of Class A common stock per $1,000 principal amount, which is equal to an initial conversion price of approximately $26.27 per share of Class A common stock, subject to adjustment. Holders of the Notes may surrender their Notes for conversion at their option at any time prior to the close of business on the business day immediately preceding October 15, 2022, only under the following circumstances: • during any fiscal quarter commencing after the fiscal quarter ending on July 31, 2018 (and only during such fiscal quarter), if the last reported sale price of our Class A common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price for the Notes on each applicable trading day; • during the five business day period after any five consecutive trading day period (the measurement period), in which the trading price per $1,000 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our Class A common stock and the conversion rate for the Notes on each such trading day; • if we call any or all of the Notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or • upon the occurrence of specified corporate events. On or after October 15, 2022 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their Notes at any time regardless of the foregoing circumstances. Upon conversion, holders will receive cash, shares of our Class A common stock, or a combination of cash and shares of our Class A common stock, at our election. We intend to settle the principal of the Notes in cash. The conversion price will be subject to adjustment in some events. Following certain corporate events that occur prior to the maturity date or following our issuance of a notice of redemption, we will increase the conversion rate for a holder who elects to convert its Notes in connection with such corporate event or during the related redemption period in certain circumstances. Additionally, upon the occurrence of a corporate event that constitutes a “fundamental change” per the Indenture, holders of the Notes may require us to repurchase for cash all or a portion of the Notes at a purchase price equal to 100% of the principal amount of the Notes plus accrued and unpaid contingent interest. We may not redeem the Notes prior to April 20, 2021. We may redeem for cash all or any portion of the Notes, at our option, on or after April 20, 2021 if the last reported sale price of our Class A common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending not more than two trading days immediately preceding the date on which we provide notice of redemption at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the Notes. In accounting for the issuance of the Notes, we separated the Notes into liability and equity components. The carrying amount of the liability component was determined by measuring the fair value of a similar liability that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was calculated by deducting the fair value of the liability component from the principal amount of the Notes as a whole. The difference between the principal amount of the Notes and the liability component (the debt discount) is amortized to interest expense in the condensed consolidated statements of operations using the effective interest method over the term of the Notes. The equity component of the Notes is included in additional paid-in capital in the condensed consolidated balance sheets and is not remeasured as long as it continues to meet the conditions for equity classification. In accounting for the transaction costs related to the issuance of the Notes, we allocated the total amount incurred to the liability and equity components using the same proportions as the initial carrying value of the Notes. Transaction costs attributable to the liability component were netted with the principal amount of the Notes in the condensed consolidated balance sheets and are being amortized to interest expense in the condensed consolidated statements of operations using the effective interest method over the term of the Notes. Transaction costs attributable to the equity component were netted with the equity component of the Notes in additional paid-in capital in the condensed consolidated balance sheets. Upon the issuance of the Notes, we recorded total debt issuance costs of $12.9 million , of which approximately $9.8 million was allocated to the Notes and approximately $3.1 million was allocated to additional paid-in capital. The Notes consisted of the following (in thousands): As of Liability: Principal $ 575,000 Less: debt discount, net of amortization (128,976 ) Less: debt issuance costs, net of amortization (9,337 ) Net carrying amount of the Notes $ 436,687 Stockholders' equity: Allocated value of the conversion feature $ 136,333 Less: debt issuance costs (3,068 ) Additional paid-in capital $ 133,265 The total estimated fair value of the Notes as of July 31, 2018 was approximately $607.2 million . The fair value was determined based on the closing trading price per $100 of the Notes as of the last day of trading for the period. The fair value of the Notes is primarily affected by the trading price of our common stock and market interest rates. Based on the closing price of our Class A common stock of $21.66 on July 31, 2018 , the if-converted value of the Notes of $474.0 million was less than its principal amount. The following table sets forth total interest expense recognized related to the Notes for the three and six months ended July 31, 2018 (in thousands): Three Months Ended July 31, 2018 Six Months Ended July 31, 2018 Amortization of debt discount $ 6,000 $ 7,357 Amortization of debt issuance costs 434 532 Total amortization of debt discount and debt issuance costs 6,434 7,889 Contractual interest expense 181 224 Total interest expense related to the Notes $ 6,615 $ 8,113 Effective interest rate of the liability component 5.6 % 5.6 % In connection with the offering of the Notes, we paid $64.6 million to enter into capped call transactions with certain of the underwriters and their affiliates (the Capped Calls), whereby we have the option to purchase a total of 21,884,155 shares of our Class A common stock upon any conversion of Notes and/or offset any cash payments we are required to make in excess of the principal amount of the Notes, as the case may be, with such reduction or offset subject to a cap initially equal to $39.66 per share (which represents a premium of 100% over the last reported sales price of our Class A common stock on April 4, 2018), subject to certain adjustments (the Cap Price). The cost of the Capped Calls was accounted for as a reduction to additional paid-in capital on the condensed consolidated balance sheet. The Capped Calls are intended to reduce or offset potential dilution of our common stock upon any conversion of the Notes, subject to a cap based on the Cap Price. Impact on Earnings Per Share The Notes will not impact our diluted earnings per share until the average market price of our Class A common stock exceeds the conversion price of $26.27 per share, as we intend to settle the principal amount of the Notes in cash upon conversion. We are required under the treasury stock method to compute the potentially dilutive shares of common stock related to the Notes for periods we report net income. However, upon conversion, there will be no economic dilution from the Notes until the average market price of our Class A common stock exceeds the Cap Price of $39.66 per share, as exercise of the Capped Calls offsets any dilution from the Notes from the conversion price up to the Cap Price. Capped Calls are excluded from the calculation of diluted earnings per share, as they would be anti-dilutive under the treasury stock method. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases As of January 31, 2018 and July 31, 2018 , the aggregate future minimum payments under non-cancelable operating leases were approximately $113.0 million and $153.7 million . Letters of Credit In connection with the lease amendment executed in March 2018, we issued a letter of credit of $1.5 million . As of January 31, 2018 and July 31, 2018 , we had outstanding letters of credit in the aggregate amount of $9.6 million and $10.8 million , in connection with our facility leases. The letters of credit are collateralized by restricted cash and mature on various dates through August 2029 . Legal Matters 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 we expect to have a material adverse effect on our business, financial position, results of operations or cash flows. Accordingly, we have not recorded any loss contingency on our condensed consolidated balance sheet as of July 31, 2018 . 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 condensed 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, 2018 | |
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 July 31, 2018 , 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, 2018 , 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, 2018 , 204,051,868 shares of Class A common stock were issued and outstanding and 31,359,938 shares of Class B common stock were issued and outstanding. Repurchase of Common Stock Concurrent with the issuance of the Notes (see Note 5), we repurchased and retired 1,008,573 shares, or $20.0 million , of our Class A common stock at $19.83 per share, which was equal to the closing price per share of our Class A common stock on April 4, 2018, the date of the pricing of the offering of the Notes. The repurchased shares were recorded as a reduction of additional paid-in capital on the condensed consolidated balance sheet. |
Equity Incentive Plans
Equity Incentive Plans | 6 Months Ended |
Jul. 31, 2018 | |
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. 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. The 2015 ESPP allows eligible employees to purchase shares of our Class A common stock at a discount through payroll deductions 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), resulting in a modification. 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 on (1) the first trading day of the applicable offering period or (2) the purchase date. There was an ESPP reset in the three months ended April 30, 2017 that resulted in a total modification charge of $9.0 million , which is recognized over the new offering period ending March 15, 2019. We recognized stock-based compensation expense related to our 2015 ESPP of $3.8 million and $7.9 million during the three months ended July 31, 2017 and 2018 and $7.9 million and $14.6 million during the six months ended July 31, 2017 and 2018 . As of July 31, 2018 , there was $23.9 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 0.9 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, 2018 46,359,949 $ 7.75 6.3 $ 574,224 Options exercised (5,884,173 ) 4.94 Options forfeited/canceled (1,191,720 ) 9.36 Balance as of July 31, 2018 39,284,056 $ 8.12 5.9 $ 531,664 Vested and exercisable as of July 31, 2018 26,675,832 $ 6.00 5.4 $ 417,651 The aggregate intrinsic value of options vested and exercisable as of July 31, 2018 is calculated based on the difference between the exercise price and the closing price of $21.66 of our Class A common stock on July 31, 2018 . As of July 31, 2018 , total unrecognized employee compensation cost related to outstanding options was $49.6 million , which is expected to be recognized over a weighted-average period of approximately 2.1 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, 2018 17,682,646 $ 12.60 $ 356,117 Granted 7,751,921 20.79 Vested (4,117,282 ) 12.50 Forfeited (858,561 ) 14.18 Converted (1,142,838 ) 11.86 Unvested balance as of July 31, 2018 19,315,886 $ 15.87 $ 418,359 As of July 31, 2018 , total unrecognized employee compensation cost related to unvested restricted stock units was $273.3 million , which is expected to be recognized over a weighted-average period of approximately 3.0 years. In March 2017, we granted 750,000 performance stock units (net of 77,000 canceled units), at a target percentage of 100%, 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 March 2018, a total of 780,000 shares was earned based on the performance condition achieved and these shares are subject to service conditions through the vesting periods. Stock-based compensation expense for these performance stock units, recognized on an accelerated attribution method, was $1.2 million and $0.5 million for the three months ended July 31, 2017 and 2018 , and $1.6 million and $1.5 million for the six months ended July 31, 2017 and 2018 . In August 2017, we granted 464,744 performance stock units, at a target percentage of 100% , 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. The performance condition for these performance stock units was set in March 2018 and accordingly, established the grant date for these awards from an accounting perspective and for determining the grant date fair value. Restricted Stock In March 2018, we converted certain restricted stock units and performance stock units that were previously granted into 1,375,210 shares of restricted stock for corporate tax benefit purposes. Of the 1,375,210 shares of restricted stock, 697,116 shares are performance restricted stock and 678,094 shares are subject to service vesting conditions only. The conversion did not change the fair value or vesting conditions and therefore no modification accounting was required. During the three and six months ended July 31, 2018 , we issued 21,047 shares and 1,954,908 shares of performance restricted stock, at the maximum performance percentage of 180% , with performance vesting conditions payable in common shares, contingent upon the degree to which the performance condition is met. The shares may be earned from 0% to 180% . Actual shares earned may be lower than the aggregate maximum number dependent on the degree to which the performance condition is met, and cannot be higher than the aggregate maximum number. Any portion of shares that are not earned will be canceled. All unvested restricted shares are subject to repurchase. Stock-based compensation expense for performance restricted stock is recognized on an accelerated attribution method. In the three and six months ended July 31, 2018 , we recognized $6.7 million and $10.2 million in stock-based compensation expense relating to restricted stock. As of July 31, 2018 , total unrecognized employee compensation cost related to unvested restricted stock was $31.7 million , which is expected to be recognized over a weighted-average period of approximately 2.6 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, 2017 2018 2017 2018 Cost of revenue—product $ 358 $ 720 $ 755 $ 1,328 Cost of revenue—support subscription 2,245 2,929 4,019 5,613 Research and development 17,971 22,232 33,559 43,322 Sales and marketing 11,439 17,269 22,065 31,209 General and administrative 4,825 10,504 8,659 16,137 Total stock-based compensation expense $ 36,838 $ 53,654 $ 69,057 $ 97,609 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 | 6 Months Ended |
Jul. 31, 2018 | |
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 including our outstanding stock options, common stock related to unvested early exercised stock options, common stock related to unvested restricted stock units and restricted stock awards, convertible senior notes to the extent dilutive, and common stock issuable pursuant to the ESPP. For purposes of calculating basic and diluted net loss per share attributable to common shareholders, these potentially dilutive common stock equivalents 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. 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, 2017 2018 2017 2018 (As Adjusted*) (As Adjusted*) Net loss $ (58,411 ) $ (60,123 ) $ (115,570 ) $ (124,427 ) Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 209,193 229,359 207,515 226,609 Net loss per share attributable to common stockholders, basic and diluted $ (0.28 ) $ (0.26 ) $ (0.56 ) $ (0.55 ) * Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018. 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, 2017 2018 2017 2018 Stock options to purchase common stock 53,878 40,920 54,864 42,923 Restricted stock units 15,710 19,957 13,759 19,486 Restricted stock and early exercised stock options 279 3,327 333 2,585 Employee stock purchase plan 898 1,154 898 1,127 Total 70,765 65,358 69,854 66,121 |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 31, 2018 | |
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, 2018 , 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, 2018 . The Tax Act was signed into law on December 22, 2017. The new legislation decreases the U.S. corporate federal income tax rate from 35% to 21% effective January 1, 2018. The Tax Act also includes a number of other provisions including the elimination of loss carrybacks and limitations on the use of future losses, limitations on the deductibility of executive compensation, limitation or modification on the deductibility of certain business expenses, the transition of U.S. international taxation from a worldwide tax system to a territorial system, and the introduction of a base erosion and anti-abuse tax. Under the Tax Act, the Global Intangible Low-Taxed Income (GILTI) provision taxes foreign income in excess of a deemed return on tangible assets of foreign corporations. Under U.S. GAAP, companies are allowed to make an accounting policy election to either (i) account for GILTI as a component of tax expense in the period in which a company is subject to the rules -- the period cost method, or (ii) account for GILTI in a company’s measurement of deferred taxes -- the deferred method. Because of the complexity of the new tax rules, we have not yet made an accounting policy election and are continuing to assess the impact of the Tax Act during the one-year measurement period from the Tax Act enactment date as allowed by Staff Accounting Bulletin No. 118 (SAB 118) issued in connection with the Tax Act. We expect to complete the accounting for the tax effects of the Tax Act in calendar year 2018. |
Segment Information
Segment Information | 6 Months Ended |
Jul. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our chief operating decision maker is a group 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. Disaggregation of Revenue The following table depicts the disaggregation of revenue by geographic area based on the billing address of our customers and is consistent with how we evaluate our financial performance (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2017 2018 2017 2018 (As Adjusted*) (As Adjusted*) United States $ 165,620 $ 229,760 $ 312,125 $ 414,678 Rest of the world 59,050 79,124 95,190 150,151 Total revenue $ 224,670 $ 308,884 $ 407,315 $ 564,829 * Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018. Long-Lived Assets by Geographic Area Long-lived assets by geographic area are summarized as follows (in thousands): As of As of United States $ 85,430 $ 97,250 Rest of the world 3,712 4,468 Total long-lived assets $ 89,142 $ 101,718 |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jul. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event In August 2018, we acquired StorReduce, Inc., a cloud-first software-defined storage solution, for $25 million in cash, subject to adjustments. We are currently in the process of completing the purchase price allocation for this acquisition, which will be included in our condensed consolidated financial statements for the quarter ending October 31, 2018. |
Basis of Presentation and Sum19
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jul. 31, 2018 | |
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, 2018 . 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 2019 or any future period. Certain prior period amounts have been adjusted as a result of adoption of new accounting pronouncements. Refer to " Recently Adopted Accounting Pronouncements" below for further information. |
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 standalone selling price for revenue arrangements with multiple performance obligations, useful lives of intangible assets, property and equipment and deferred sales commissions, stock-based compensation, provision for income taxes including related reserves, and contingent liabilities. 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 related to our leases and for a vendor corporate credit card program. |
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 accumulated other comprehensive 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 incremental costs paid to our sales force to obtain customer contracts. Deferred commissions related to product revenues are recognized upon transfer of control to customers and deferred commissions related to support subscription revenue are amortized over an expected useful life of six years. We determine the expected useful life based on an estimated benefit period by evaluating our technology development life cycle, expected customer relationship period, and other factors. We classify deferred commissions as current and non-current on our condensed consolidated balance sheets based on the timing of when we expect to recognize the expense. Amortization of deferred commissions is included in sales and marketing expense in the condensed consolidated statements of operations. |
Deferred Revenue | Deferred Revenue Deferred revenue primarily consists of amounts that have been invoiced but that have not yet been recognized as revenue and performance obligations pertaining to support subscription services. The current portion of deferred revenue represents the amounts that are expected to be recognized as revenue within one year of the condensed consolidated balance sheet dates. |
Revenue Recognition | Revenue Recognition We derive revenue from two sources: (1) product revenue which includes hardware and embedded software and (2) support subscription revenue which includes customer support, hardware maintenance, and software upgrades on a when-and-if-available basis. Our product revenue is derived from the sale of storage hardware and operating system software that is integrated into the hardware. We typically recognize product revenue upon transfer of control to our customers. Products are typically shipped directly by us to customers, and our channel partners do not stock our inventory. Our support subscription revenue is derived from the sale of support subscription, which includes the right to receive unspecified software upgrades and enhancements on a when-and-if-available basis, bug fixes, parts replacement services related to the hardware, as well as access to our cloud-based management and support platform. Revenue related to support subscription is recognized ratably over the contractual term, which generally ranges from one to six years and represents our performance obligations period. The vast majority of our products are sold with support subscription agreements, which typically commence upon transfer of control of the corresponding products to our customers. Costs to service the support subscription are expensed as incurred. In addition, our Evergreen Storage program provides our customers who continually maintain active support subscription agreements for three years with an included controller refresh with each additional three year support subscription renewal. In accordance with revenue recognition guidance, the controller refresh represents an additional performance obligation and the allocated revenue is recognized in the period in which these controllers are shipped. We recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration we expect to be entitled in exchange for those goods or services. This is achieved through applying the following five-step approach: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, we satisfy a performance obligation When applying this five-step approach, we apply judgment in determining the customer's ability and intention to pay, which is based on a variety of factors including the customer's historical payment experience and/or published credit and financial information pertaining to the customer. To the extent a customer contract includes multiple promised goods or services, we determine whether promised goods or services are capable of being distinct in the context of the contract to be accounted for as a combined performance obligation. We allocate transaction price to each performance obligation for contracts that contain multiple performance obligations based on a relative standalone selling price, taking into account available information such as market conditions and internally approved pricing guidelines related to performance obligations. |
Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements 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 or ASC 606), 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. ASC 606 supersedes nearly all existing revenue recognition guidance under U.S. GAAP upon its effective date. The standard permits two methods of adoptions: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of applying the standard recognized at the date of application (cumulative catch-up transition method). We adopted the standard using the full retrospective method beginning February 1, 2018, for the year ending January 31, 2019, and our historical financial information for the years ended January 31, 2017 and 2018 has been adjusted to conform to the new standard. The most significant impact of the standard related to the removal of limitation on contingent revenue, resulting in an increase in product revenue and a decrease in support subscription revenue. In addition, the adoption of ASC 606 also resulted in differences in the timing of recognition of sales commissions. While the adoption of the standard changes certain line items within the net cash flow from operating activities, it had no impact to the net cash provided by or used in operating, investing, or financing activities on our condensed consolidated statements of cash flows. The following line items on our condensed consolidated balance sheet as of January 31, 2018 have been adjusted to reflect the adoption of ASC 606 (in thousands): As of January 31, 2018 As Previously Reported Adjustment As Adjusted Assets Deferred commissions, current $ 22,437 $ (1,349 ) $ 21,088 Deferred commissions, non-current 20,288 45,937 66,225 Total deferred commissions $ 42,725 $ 44,588 $ 87,313 Liabilities Deferred revenue, current $ 209,377 $ (18,148 ) $ 191,229 Deferred revenue, non-current 196,632 (13,759 ) 182,873 Total deferred revenue $ 406,009 $ (31,907 ) $ 374,102 Stockholders' equity Accumulated deficit $ (980,082 ) $ 76,495 $ (903,587 ) The following line items on our unaudited condensed consolidated statement of operations for the three and six months ended July 31, 2017 have been adjusted to reflect the adoption of ASC 606 (in thousands, except per share data): Three Months Ended July 31, 2017 Six Months Ended July 31, 2017 As Previously Reported Adjustment As Adjusted As Previously Reported Adjustment As Adjusted Revenue: Product $ 175,013 $ 4,656 $ 179,669 $ 313,438 $ 9,081 $ 322,519 Support subscription 49,448 (4,447 ) 45,001 93,654 (8,858 ) 84,796 Total revenue $ 224,461 $ 209 $ 224,670 $ 407,092 $ 223 $ 407,315 Gross profit $ 148,010 $ 209 $ 148,219 $ 267,093 $ 223 $ 267,316 Sales and marketing $ 120,633 $ (3,081 ) $ 117,552 $ 217,597 $ (8,282 ) $ 209,315 Total operating expenses $ 212,156 $ (3,081 ) $ 209,075 $ 394,644 $ (8,282 ) $ 386,362 Loss from operations $ (64,146 ) $ 3,290 $ (60,856 ) $ (127,551 ) $ 8,505 $ (119,046 ) Loss before provision for income taxes $ (60,880 ) $ 3,290 $ (57,590 ) $ (122,290 ) $ 8,505 $ (113,785 ) Net loss $ (61,701 ) $ 3,290 $ (58,411 ) $ (124,075 ) $ 8,505 $ (115,570 ) Net loss per share attributable to common stockholders, basic and diluted $ (0.29 ) $ 0.01 $ (0.28 ) $ (0.60 ) $ 0.04 $ (0.56 ) Unaudited revenue by geographic location based on bill-to location, which reflects the adoption impact of ASC 606, are as follows (in thousands): Three Months Ended July 31, 2017 Six Months Ended July 31, 2017 As Previously Reported Adjustment As Adjusted As Previously Reported Adjustment As Adjusted Revenue: United States $ 165,466 $ 154 $ 165,620 $ 311,960 $ 165 $ 312,125 Rest of the world 58,995 55 59,050 95,132 58 95,190 Total revenue $ 224,461 $ 209 $ 224,670 $ 407,092 $ 223 $ 407,315 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 restricted cash. We adopted ASU 2016-18 effective February 1, 2018 on a retrospective basis. Upon adoption, restricted cash is 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. The adoption of this standard increased our previously reported net cash flow from investing activities for the periods in which there were changes in restricted cash but did not impact our net cash flow from operating activities or financing activities presented on our consolidated statements of cash flows. The following line items in our unaudited condensed consolidated statement of cash flows for the six months ended July 31, 2017 have been adjusted to reflect the adoption of ASU 2016-18 and ASC 606 (in thousands): Six Months Ended July 31, 2017 As Previously Reported Adjustment As Adjusted Net loss (1) $ (124,075 ) $ 8,505 $ (115,570 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Deferred commissions (1) $ (4,607 ) $ (4,980 ) $ (9,587 ) Accrued compensation and other liabilities (1) $ 310 $ (3,303 ) $ (2,993 ) Deferred revenue (1) $ 24,473 $ (222 ) $ 24,251 Cash used in operating activities $ (14,492 ) $ — $ (14,492 ) Cash, cash equivalents and restricted cash, beginning of period (2) $ 183,675 $ 12,734 $ 196,409 Cash, cash equivalents and restricted cash, end of period (2) $ 171,894 $ 12,734 $ 184,628 _____________________________________________________ (1) Adjustment pertaining to the adoption of ASC 606. (2) Adjustment pertaining to the adoption of ASU 2016-18. In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718) (ASU 2018-07). ASU 2018-07 aligns the accounting for share-based awards to employees and non-employees to follow the same model. The new standard is effective for fiscal years beginning after December 15, 2018 using a modified retrospective transition approach. Early adoption is permitted. We adopted this standard for the three and six months ended July 31, 2018 and the adoption of this standard did not materially impact our consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted 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. ASU 2016-02 requires the use of the modified retrospective method for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. In July 2018, the FASB issued ASU No. 2018-10, Leases (Topic 842), Codification Improvements to Topic 842, Leases (ASU 2018-10) and ASU No. 2018-11, Leases (Topic 842), Targeted Improvements (ASU 2018-11). ASU 2018-11 provides a new transition method in which an entity can initially apply the new lease standards at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. These standards will be effective for us beginning on February 1, 2019 and early adoption is permitted. We expect to apply the new transition method prescribed by ASU 2018-11 at the adoption date. We are currently evaluating the impact of these standards 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 February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This standard allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (the Tax Act) and requires certain disclosures about stranded tax effects. This standard will be effective for us beginning February 1, 2019 and should be applied either in the period of adoption or retrospectively. Early adoption is permitted. We do not expect this standard to have any impact 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 1 - Observable inputs are unadjusted quoted prices in active markets for identical assets or liabilities; • Level 2 - 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 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. 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. In addition to our cash equivalents, marketable securities, and restricted cash, we measure the fair value of our convertible senior notes (the Notes) on a quarterly basis for disclosure purposes. We consider the fair value of the Notes at July 31, 2018 to be a Level 2 measurement due to limited trading activity of the Notes. Refer to Note 5 for further information. |
Basis of Presentation and Sum20
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jul. 31, 2018 | |
Accounting Policies [Abstract] | |
Deferred Commissions | Changes in total deferred commissions during the periods presented are as follows (in thousands): Three Months Ended July 31, 2018 Six Months Ended July 31, 2018 Beginning balance (1) $ 86,044 $ 87,313 Additions 24,582 40,003 Recognition of deferred commissions (19,157 ) (35,847 ) Ending balance as of July 31, 2018 $ 91,469 $ 91,469 ____________________ (1) Balance as of January 31, 2018 was adjusted to reflect the adoption of ASC 606. |
Deferred Revenue | Changes in total deferred revenue during the periods presented are as follows (in thousands): Three Months Ended July 31, 2018 Six Months Ended July 31, 2018 Beginning balance (1) $ 388,614 $ 374,102 Additions 92,511 167,782 Recognition of deferred revenue (67,878 ) (128,637 ) Ending balance as of July 31, 2018 $ 413,247 $ 413,247 ____________________ (1) Balance as of January 31, 2018 was adjusted to reflect the adoption of ASC 606. |
Schedule of Recently Adopted Accounting Pronouncements | The following line items on our condensed consolidated balance sheet as of January 31, 2018 have been adjusted to reflect the adoption of ASC 606 (in thousands): As of January 31, 2018 As Previously Reported Adjustment As Adjusted Assets Deferred commissions, current $ 22,437 $ (1,349 ) $ 21,088 Deferred commissions, non-current 20,288 45,937 66,225 Total deferred commissions $ 42,725 $ 44,588 $ 87,313 Liabilities Deferred revenue, current $ 209,377 $ (18,148 ) $ 191,229 Deferred revenue, non-current 196,632 (13,759 ) 182,873 Total deferred revenue $ 406,009 $ (31,907 ) $ 374,102 Stockholders' equity Accumulated deficit $ (980,082 ) $ 76,495 $ (903,587 ) The following line items on our unaudited condensed consolidated statement of operations for the three and six months ended July 31, 2017 have been adjusted to reflect the adoption of ASC 606 (in thousands, except per share data): Three Months Ended July 31, 2017 Six Months Ended July 31, 2017 As Previously Reported Adjustment As Adjusted As Previously Reported Adjustment As Adjusted Revenue: Product $ 175,013 $ 4,656 $ 179,669 $ 313,438 $ 9,081 $ 322,519 Support subscription 49,448 (4,447 ) 45,001 93,654 (8,858 ) 84,796 Total revenue $ 224,461 $ 209 $ 224,670 $ 407,092 $ 223 $ 407,315 Gross profit $ 148,010 $ 209 $ 148,219 $ 267,093 $ 223 $ 267,316 Sales and marketing $ 120,633 $ (3,081 ) $ 117,552 $ 217,597 $ (8,282 ) $ 209,315 Total operating expenses $ 212,156 $ (3,081 ) $ 209,075 $ 394,644 $ (8,282 ) $ 386,362 Loss from operations $ (64,146 ) $ 3,290 $ (60,856 ) $ (127,551 ) $ 8,505 $ (119,046 ) Loss before provision for income taxes $ (60,880 ) $ 3,290 $ (57,590 ) $ (122,290 ) $ 8,505 $ (113,785 ) Net loss $ (61,701 ) $ 3,290 $ (58,411 ) $ (124,075 ) $ 8,505 $ (115,570 ) Net loss per share attributable to common stockholders, basic and diluted $ (0.29 ) $ 0.01 $ (0.28 ) $ (0.60 ) $ 0.04 $ (0.56 ) Unaudited revenue by geographic location based on bill-to location, which reflects the adoption impact of ASC 606, are as follows (in thousands): Three Months Ended July 31, 2017 Six Months Ended July 31, 2017 As Previously Reported Adjustment As Adjusted As Previously Reported Adjustment As Adjusted Revenue: United States $ 165,466 $ 154 $ 165,620 $ 311,960 $ 165 $ 312,125 Rest of the world 58,995 55 59,050 95,132 58 95,190 Total revenue $ 224,461 $ 209 $ 224,670 $ 407,092 $ 223 $ 407,315 The following line items in our unaudited condensed consolidated statement of cash flows for the six months ended July 31, 2017 have been adjusted to reflect the adoption of ASU 2016-18 and ASC 606 (in thousands): Six Months Ended July 31, 2017 As Previously Reported Adjustment As Adjusted Net loss (1) $ (124,075 ) $ 8,505 $ (115,570 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Deferred commissions (1) $ (4,607 ) $ (4,980 ) $ (9,587 ) Accrued compensation and other liabilities (1) $ 310 $ (3,303 ) $ (2,993 ) Deferred revenue (1) $ 24,473 $ (222 ) $ 24,251 Cash used in operating activities $ (14,492 ) $ — $ (14,492 ) Cash, cash equivalents and restricted cash, beginning of period (2) $ 183,675 $ 12,734 $ 196,409 Cash, cash equivalents and restricted cash, end of period (2) $ 171,894 $ 12,734 $ 184,628 _____________________________________________________ (1) Adjustment pertaining to the adoption of ASC 606. (2) Adjustment pertaining to the adoption of ASU 2016-18. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jul. 31, 2018 | |
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, 2018 and July 31, 2018 (in thousands): As of January 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Marketable Securities Restricted Cash Level 1 Money market accounts $ — $ — $ — $ 32,057 $ 17,294 $ — $ 14,763 Level 2 U.S. government treasury notes 131,643 — (651 ) 130,992 10,172 120,820 — U.S. government agencies 47,229 — (333 ) 46,896 — 46,896 — Corporate debt securities 186,506 116 (1,049 ) 185,573 — 185,573 — Total $ 365,378 $ 116 $ (2,033 ) $ 395,518 $ 27,466 $ 353,289 $ 14,763 As of July 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Marketable Securities Restricted Cash Level 1 Money market accounts $ — $ — $ — $ 29,047 $ 13,269 $ — $ 15,778 Level 2 U.S. government treasury notes 326,328 — (839 ) 325,489 58,320 267,169 — U.S. government agencies 76,443 — (374 ) 76,069 1,194 74,875 — Corporate debt securities 383,340 104 (1,713 ) 381,731 — 381,731 — Foreign government bonds 5,151 1 (3 ) 5,149 — 5,149 — Asset-backed securities 7,283 — (2 ) 7,281 — 7,281 — Total $ 798,545 $ 105 $ (2,931 ) $ 824,766 $ 72,783 $ 736,205 $ 15,778 |
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, 2018 Amortized Cost Fair Value Due within one year $ 373,160 $ 372,316 Due in one to five years 365,867 363,889 Total $ 739,027 $ 736,205 |
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 July 31, 2018 , 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 $ 271,578 $ (483 ) $ 48,941 $ (356 ) $ 320,519 $ (839 ) U.S. government agencies 55,695 (227 ) 20,374 (147 ) 76,069 (374 ) Corporate debt securities 271,946 (1,454 ) 30,654 (259 ) 302,600 (1,713 ) Foreign government bonds 2,944 (3 ) — — 2,944 (3 ) Asset-backed securities 5,016 (2 ) — — 5,016 (2 ) Total $ 607,179 $ (2,169 ) $ 99,969 $ (762 ) $ 707,148 $ (2,931 ) |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 6 Months Ended |
Jul. 31, 2018 | |
Balance Sheet Components Disclosure [Abstract] | |
Schedule of Inventory | Inventory consists of the following (in thousands): As of As of Raw materials $ 1,181 $ 2,828 Finished goods 33,316 38,845 Inventory $ 34,497 $ 41,673 |
Schedule of Property and Equipment, Net | Property and equipment, net, consists of the following (in thousands): As of As of Test equipment $ 142,311 $ 156,040 Computer equipment and software 72,329 92,863 Furniture and fixtures 5,363 5,482 Leasehold improvements 15,032 23,763 Total property and equipment 235,035 278,148 Less: accumulated depreciation and amortization (145,893 ) (176,430 ) Property and equipment, net $ 89,142 $ 101,718 |
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 (5,068 ) (5,820 ) Intangible assets, net $ 5,057 $ 4,305 |
Schedule of Expected Amortization Expenses for Intangible Assets | As of July 31, 2018 , future expected amortization expense for intangible assets is as follows (in thousands): Fiscal Years Ending January 31, Estimated Future Amortization Expense Remainder of 2019 $ 752 2020 1,504 2021 1,504 2022 545 Total $ 4,305 |
Schedule of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consist of the following (in thousands): As of As of Taxes payable $ 4,052 $ 3,801 Accrued marketing 5,928 5,017 Accrued travel and entertainment expenses 4,386 2,556 Other accrued liabilities 12,463 15,675 Total accrued expenses and other liabilities $ 26,829 $ 27,049 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 6 Months Ended |
Jul. 31, 2018 | |
Debt Disclosure [Abstract] | |
Convertible Debt | The Notes consisted of the following (in thousands): As of Liability: Principal $ 575,000 Less: debt discount, net of amortization (128,976 ) Less: debt issuance costs, net of amortization (9,337 ) Net carrying amount of the Notes $ 436,687 Stockholders' equity: Allocated value of the conversion feature $ 136,333 Less: debt issuance costs (3,068 ) Additional paid-in capital $ 133,265 |
Interest Expense | The following table sets forth total interest expense recognized related to the Notes for the three and six months ended July 31, 2018 (in thousands): Three Months Ended July 31, 2018 Six Months Ended July 31, 2018 Amortization of debt discount $ 6,000 $ 7,357 Amortization of debt issuance costs 434 532 Total amortization of debt discount and debt issuance costs 6,434 7,889 Contractual interest expense 181 224 Total interest expense related to the Notes $ 6,615 $ 8,113 Effective interest rate of the liability component 5.6 % 5.6 % |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 6 Months Ended |
Jul. 31, 2018 | |
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, 2018 46,359,949 $ 7.75 6.3 $ 574,224 Options exercised (5,884,173 ) 4.94 Options forfeited/canceled (1,191,720 ) 9.36 Balance as of July 31, 2018 39,284,056 $ 8.12 5.9 $ 531,664 Vested and exercisable as of July 31, 2018 26,675,832 $ 6.00 5.4 $ 417,651 |
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, 2018 17,682,646 $ 12.60 $ 356,117 Granted 7,751,921 20.79 Vested (4,117,282 ) 12.50 Forfeited (858,561 ) 14.18 Converted (1,142,838 ) 11.86 Unvested balance as of July 31, 2018 19,315,886 $ 15.87 $ 418,359 |
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, 2017 2018 2017 2018 Cost of revenue—product $ 358 $ 720 $ 755 $ 1,328 Cost of revenue—support subscription 2,245 2,929 4,019 5,613 Research and development 17,971 22,232 33,559 43,322 Sales and marketing 11,439 17,269 22,065 31,209 General and administrative 4,825 10,504 8,659 16,137 Total stock-based compensation expense $ 36,838 $ 53,654 $ 69,057 $ 97,609 |
Net Loss per Share Attributab25
Net Loss per Share Attributable to Common Stockholders (Tables) | 6 Months Ended |
Jul. 31, 2018 | |
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, 2017 2018 2017 2018 (As Adjusted*) (As Adjusted*) Net loss $ (58,411 ) $ (60,123 ) $ (115,570 ) $ (124,427 ) Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 209,193 229,359 207,515 226,609 Net loss per share attributable to common stockholders, basic and diluted $ (0.28 ) $ (0.26 ) $ (0.56 ) $ (0.55 ) * Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018. |
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, 2017 2018 2017 2018 Stock options to purchase common stock 53,878 40,920 54,864 42,923 Restricted stock units 15,710 19,957 13,759 19,486 Restricted stock and early exercised stock options 279 3,327 333 2,585 Employee stock purchase plan 898 1,154 898 1,127 Total 70,765 65,358 69,854 66,121 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jul. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Geographic Area | The following table depicts the disaggregation of revenue by geographic area based on the billing address of our customers and is consistent with how we evaluate our financial performance (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2017 2018 2017 2018 (As Adjusted*) (As Adjusted*) United States $ 165,620 $ 229,760 $ 312,125 $ 414,678 Rest of the world 59,050 79,124 95,190 150,151 Total revenue $ 224,670 $ 308,884 $ 407,315 $ 564,829 * Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018. |
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 $ 85,430 $ 97,250 Rest of the world 3,712 4,468 Total long-lived assets $ 89,142 $ 101,718 |
Basis of Presentation and Sum27
Basis of Presentation and Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Thousands | Jul. 31, 2018 | Jan. 31, 2018 | Jul. 31, 2017 | ||
Accounting Policies [Abstract] | |||||
Restricted cash | $ 15,778 | $ 14,763 | [1] | $ 12,734 | [2] |
[1] | *Prior period information has been adjusted to reflect the adoption impact of Accounting Standards Codification 606, Revenue from Contracts with Customers (ASC 606), which we adopted on February 1, 2018. | ||||
[2] | * Prior period information has been adjusted to reflect the adoption impact of ASC 606 and ASU 2016-18, which we adopted on February 1, 2018 |
Basis of Presentation and Sum28
Basis of Presentation and Summary of Significant Accounting Policies - Deferred Commissions (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2018 | Jul. 31, 2017 | |
Accounting Policies [Abstract] | ||||
Remaining amortization period | 6 years | |||
Contract Assets | ||||
Beginning balance | $ 86,044,000 | $ 87,313,000 | ||
Additions | 24,582,000 | 40,003,000 | ||
Recognition of deferred commissions | (19,157,000) | (35,847,000) | ||
Ending balance as of July 31, 2018 | 91,469,000 | 91,469,000 | ||
Impairment loss, capitalized commissions | $ 0 | $ 0 | $ 0 | $ 0 |
Basis of Presentation and Sum29
Basis of Presentation and Summary of Significant Accounting Policies - Deferred Commissions (Typed Dimensions) (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-08-01 | 6 Months Ended |
Jul. 31, 2018 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 26.00% |
Remaining performance obligation, expected timing | 1 year |
Basis of Presentation and Sum30
Basis of Presentation and Summary of Significant Accounting Policies - Deferred Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2018 | Jul. 31, 2017 | |
Contract Liability | ||||
Beginning balance | $ 388,614 | $ 374,102 | ||
Additions | 92,511 | 167,782 | ||
Recognition of deferred revenue | 67,878 | 128,637 | ||
Ending balance as of July 31, 2018 | 413,247 | 413,247 | ||
Product Revenue and Support Subscription Revenue | ||||
Contract Liability | ||||
Deferred revenue recognized | $ 60,900 | $ 44,100 | $ 106,200 | $ 75,100 |
Basis of Presentation and Sum31
Basis of Presentation and Summary of Significant Accounting Policies - Deferred Revenue (Typed Dimensions) (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-08-01 | 6 Months Ended |
Jul. 31, 2018 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 52.00% |
Remaining performance obligation, expected timing | 1 year |
Basis of Presentation and Sum32
Basis of Presentation and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements (Balance Sheet) (Details) - USD ($) $ in Thousands | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | |
Assets | ||||
Deferred commissions, current | $ 21,088 | |||
Deferred commissions, non-current | 66,225 | |||
Total deferred commissions | $ 91,469 | $ 86,044 | 87,313 | |
Liabilities | ||||
Deferred revenue, current | 191,229 | |||
Deferred revenue, non-current | 182,873 | |||
Total deferred revenue | 413,247 | $ 388,614 | 374,102 | |
Stockholders' equity | ||||
Accumulated deficit | $ (1,028,014) | (903,587) | [1] | |
As Previously Reported | ||||
Assets | ||||
Deferred commissions, current | 22,437 | |||
Deferred commissions, non-current | 20,288 | |||
Total deferred commissions | 42,725 | |||
Liabilities | ||||
Deferred revenue, current | 209,377 | |||
Deferred revenue, non-current | 196,632 | |||
Total deferred revenue | 406,009 | |||
Stockholders' equity | ||||
Accumulated deficit | (980,082) | |||
Adjustment | Accounting Standards Update 2014-09 | ||||
Assets | ||||
Deferred commissions, current | (1,349) | |||
Deferred commissions, non-current | 45,937 | |||
Total deferred commissions | 44,588 | |||
Liabilities | ||||
Deferred revenue, current | (18,148) | |||
Deferred revenue, non-current | (13,759) | |||
Total deferred revenue | (31,907) | |||
Stockholders' equity | ||||
Accumulated deficit | $ 76,495 | |||
[1] | *Prior period information has been adjusted to reflect the adoption impact of Accounting Standards Codification 606, Revenue from Contracts with Customers (ASC 606), which we adopted on February 1, 2018. |
Basis of Presentation and Sum33
Basis of Presentation and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements (Statement of Operations) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2018 | Jul. 31, 2017 | |||
Revenue: | ||||||
Product | $ 241,137 | $ 179,669 | [1] | $ 436,586 | $ 322,519 | |
Support subscription | 67,747 | 45,001 | [1] | 128,243 | 84,796 | |
Total revenue | 308,884 | 224,670 | [1] | 564,829 | 407,315 | |
Gross profit | 206,165 | 148,219 | [1] | 372,480 | 267,316 | |
Sales and marketing | 143,749 | 117,552 | [1] | 266,116 | 209,315 | |
Total operating expenses | 261,371 | 209,075 | [1] | 489,560 | 386,362 | |
Loss from operations | (55,206) | (60,856) | [1] | (117,080) | (119,046) | |
Loss before provision for income taxes | (59,238) | (57,590) | [1] | (122,111) | (113,785) | |
Net loss | $ (60,123) | $ (58,411) | [1],[2] | $ (124,427) | $ (115,570) | [3] |
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share) | $ (0.26) | $ (0.28) | [1] | $ (0.55) | $ (0.56) | |
As Previously Reported | ||||||
Revenue: | ||||||
Product | $ 175,013 | $ 313,438 | ||||
Support subscription | 49,448 | 93,654 | ||||
Total revenue | 224,461 | 407,092 | ||||
Gross profit | 148,010 | 267,093 | ||||
Sales and marketing | 120,633 | 217,597 | ||||
Total operating expenses | 212,156 | 394,644 | ||||
Loss from operations | (64,146) | (127,551) | ||||
Loss before provision for income taxes | (60,880) | (122,290) | ||||
Net loss | $ (61,701) | $ (124,075) | ||||
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share) | $ (0.29) | $ (0.60) | ||||
Adjustment | Accounting Standards Update 2014-09 | ||||||
Revenue: | ||||||
Product | $ 4,656 | $ 9,081 | ||||
Support subscription | (4,447) | (8,858) | ||||
Total revenue | 209 | 223 | ||||
Gross profit | 209 | 223 | ||||
Sales and marketing | (3,081) | (8,282) | ||||
Total operating expenses | (3,081) | (8,282) | ||||
Loss from operations | 3,290 | 8,505 | ||||
Loss before provision for income taxes | 3,290 | 8,505 | ||||
Net loss | $ 3,290 | $ 8,505 | ||||
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share) | $ 0.01 | $ 0.04 | ||||
[1] | * Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018. | |||||
[2] | * Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018. | |||||
[3] | * Prior period information has been adjusted to reflect the adoption impact of ASC 606 and ASU 2016-18, which we adopted on February 1, 2018 |
Basis of Presentation and Sum34
Basis of Presentation and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements (Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2018 | Jul. 31, 2017 | ||
Revenue: | |||||
Total revenue | $ 308,884 | $ 224,670 | [1] | $ 564,829 | $ 407,315 |
As Previously Reported | |||||
Revenue: | |||||
Total revenue | 224,461 | 407,092 | |||
Adjustment | Accounting Standards Update 2014-09 | |||||
Revenue: | |||||
Total revenue | 209 | 223 | |||
United States | |||||
Revenue: | |||||
Total revenue | 229,760 | 165,620 | 414,678 | 312,125 | |
United States | As Previously Reported | |||||
Revenue: | |||||
Total revenue | 165,466 | 311,960 | |||
United States | Adjustment | Accounting Standards Update 2014-09 | |||||
Revenue: | |||||
Total revenue | 154 | 165 | |||
Rest of the world | |||||
Revenue: | |||||
Total revenue | $ 79,124 | 59,050 | $ 150,151 | 95,190 | |
Rest of the world | As Previously Reported | |||||
Revenue: | |||||
Total revenue | 58,995 | 95,132 | |||
Rest of the world | Adjustment | Accounting Standards Update 2014-09 | |||||
Revenue: | |||||
Total revenue | $ 55 | $ 58 | |||
[1] | * Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018. |
Basis of Presentation and Sum35
Basis of Presentation and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements (Statement of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2018 | Jul. 31, 2017 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Net loss | $ (60,123) | $ (58,411) | [1],[2] | $ (124,427) | $ (115,570) | [3] |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||
Deferred commissions | (4,155) | (9,587) | [3] | |||
Accrued compensation and other liabilities | (7,458) | (2,993) | [3] | |||
Deferred revenue | 39,144 | 24,251 | [3] | |||
Cash used in operating activities | 27,080 | (14,492) | [3] | |||
Cash, cash equivalents and restricted cash, beginning of period | 258,820 | 196,409 | [3] | |||
Cash, cash equivalents and restricted cash, end of period | $ 386,235 | 184,628 | [3] | $ 386,235 | 184,628 | [3] |
As Previously Reported | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Net loss | (61,701) | (124,075) | ||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||
Deferred commissions | (4,607) | |||||
Accrued compensation and other liabilities | 310 | |||||
Deferred revenue | 24,473 | |||||
Cash used in operating activities | (14,492) | |||||
Cash, cash equivalents and restricted cash, beginning of period | 183,675 | |||||
Cash, cash equivalents and restricted cash, end of period | 171,894 | 171,894 | ||||
Adjustment | Accounting Standards Update 2014-09 | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Net loss | 3,290 | 8,505 | ||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||
Deferred commissions | (4,980) | |||||
Accrued compensation and other liabilities | (3,303) | |||||
Deferred revenue | (222) | |||||
Cash used in operating activities | 0 | |||||
Adjustment | Accounting Standards Update 2016-18 | ||||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||
Cash, cash equivalents and restricted cash, beginning of period | 12,734 | |||||
Cash, cash equivalents and restricted cash, end of period | $ 12,734 | $ 12,734 | ||||
[1] | * Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018. | |||||
[2] | * Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018. | |||||
[3] | * Prior period information has been adjusted to reflect the adoption impact of ASC 606 and ASU 2016-18, which we adopted on February 1, 2018 |
Financial Instruments - Summary
Financial Instruments - Summary of Cash Equivalents, Marketable Securities and Restricted Cash by Significant Investment Categories (Details) - USD ($) $ in Thousands | Jul. 31, 2018 | Jan. 31, 2018 | |
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized Cost | $ 798,545 | $ 365,378 | |
Gross Unrealized Gains | 105 | 116 | |
Gross Unrealized Losses | (2,931) | (2,033) | |
Fair Value | 824,766 | 395,518 | |
Cash Equivalents | 72,783 | 27,466 | |
Marketable Securities | 736,205 | 353,289 | [1] |
Restricted Cash | 15,778 | 14,763 | |
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 | 29,047 | 32,057 | |
Cash Equivalents | 13,269 | 17,294 | |
Marketable Securities | 0 | 0 | |
Restricted Cash | 15,778 | 14,763 | |
U.S. government treasury notes | Level 2 | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized Cost | 326,328 | 131,643 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | (839) | (651) | |
Fair Value | 325,489 | 130,992 | |
Cash Equivalents | 58,320 | 10,172 | |
Marketable Securities | 267,169 | 120,820 | |
Restricted Cash | 0 | 0 | |
U.S. government agencies | Level 2 | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized Cost | 76,443 | 47,229 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | (374) | (333) | |
Fair Value | 76,069 | 46,896 | |
Cash Equivalents | 1,194 | 0 | |
Marketable Securities | 74,875 | 46,896 | |
Restricted Cash | 0 | 0 | |
Corporate debt securities | Level 2 | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized Cost | 383,340 | 186,506 | |
Gross Unrealized Gains | 104 | 116 | |
Gross Unrealized Losses | (1,713) | (1,049) | |
Fair Value | 381,731 | 185,573 | |
Cash Equivalents | 0 | 0 | |
Marketable Securities | 381,731 | 185,573 | |
Restricted Cash | 0 | $ 0 | |
Foreign government bonds | Level 2 | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized Cost | 5,151 | ||
Gross Unrealized Gains | 1 | ||
Gross Unrealized Losses | (3) | ||
Fair Value | 5,149 | ||
Cash Equivalents | 0 | ||
Marketable Securities | 5,149 | ||
Restricted Cash | 0 | ||
Asset-backed securities | Level 2 | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized Cost | 7,283 | ||
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | (2) | ||
Fair Value | 7,281 | ||
Cash Equivalents | 0 | ||
Marketable Securities | 7,281 | ||
Restricted Cash | $ 0 | ||
[1] | *Prior period information has been adjusted to reflect the adoption impact of Accounting Standards Codification 606, Revenue from Contracts with Customers (ASC 606), which we adopted on February 1, 2018. |
Financial Instruments - Schedul
Financial Instruments - Schedule of Amortized Cost and Estimated Fair Value of Marketable Securities by Contractual Maturity (Details) $ in Thousands | Jul. 31, 2018USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Due within one year, Amortized Cost | $ 373,160 |
Due in one to five years, Amortized Cost | 365,867 |
Total, Amortized Cost | 739,027 |
Due within one year, Fair Value | 372,316 |
Due in one to five years, Fair Value | 363,889 |
Total, Fair Value | $ 736,205 |
Financial Instruments - Sched38
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 | Jul. 31, 2018USD ($) |
Fair Value | |
Less than 12 months | $ 607,179 |
Greater than 12 months | 99,969 |
Total | 707,148 |
Unrealized Loss | |
Less than 12 months | (2,169) |
Greater than 12 months | (762) |
Total | (2,931) |
U.S. government treasury notes | |
Fair Value | |
Less than 12 months | 271,578 |
Greater than 12 months | 48,941 |
Total | 320,519 |
Unrealized Loss | |
Less than 12 months | (483) |
Greater than 12 months | (356) |
Total | (839) |
U.S. government agencies | |
Fair Value | |
Less than 12 months | 55,695 |
Greater than 12 months | 20,374 |
Total | 76,069 |
Unrealized Loss | |
Less than 12 months | (227) |
Greater than 12 months | (147) |
Total | (374) |
Corporate debt securities | |
Fair Value | |
Less than 12 months | 271,946 |
Greater than 12 months | 30,654 |
Total | 302,600 |
Unrealized Loss | |
Less than 12 months | (1,454) |
Greater than 12 months | (259) |
Total | (1,713) |
Foreign government bonds | |
Fair Value | |
Less than 12 months | 2,944 |
Greater than 12 months | 0 |
Total | 2,944 |
Unrealized Loss | |
Less than 12 months | (3) |
Greater than 12 months | 0 |
Total | (3) |
Asset-backed securities | |
Fair Value | |
Less than 12 months | 5,016 |
Greater than 12 months | 0 |
Total | 5,016 |
Unrealized Loss | |
Less than 12 months | (2) |
Greater than 12 months | 0 |
Total | $ (2) |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Inventory (Details) - USD ($) $ in Thousands | Jul. 31, 2018 | Jan. 31, 2018 |
Balance Sheet Components Disclosure [Abstract] | ||
Raw materials | $ 2,828 | $ 1,181 |
Finished goods | 38,845 | 33,316 |
Inventory | $ 41,673 | $ 34,497 |
Balance Sheet Components - Sc40
Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jul. 31, 2018 | Jan. 31, 2018 | |
Property Plant And Equipment [Line Items] | |||
Total property and equipment | $ 278,148 | $ 235,035 | |
Less: accumulated depreciation and amortization | (176,430) | (145,893) | |
Property and equipment, net | 101,718 | 89,142 | [1] |
Test equipment | |||
Property Plant And Equipment [Line Items] | |||
Total property and equipment | 156,040 | 142,311 | |
Computer equipment and software | |||
Property Plant And Equipment [Line Items] | |||
Total property and equipment | 92,863 | 72,329 | |
Furniture and fixtures | |||
Property Plant And Equipment [Line Items] | |||
Total property and equipment | 5,482 | 5,363 | |
Leasehold improvements | |||
Property Plant And Equipment [Line Items] | |||
Total property and equipment | $ 23,763 | $ 15,032 | |
[1] | *Prior period information has been adjusted to reflect the adoption impact of Accounting Standards Codification 606, Revenue from Contracts with Customers (ASC 606), which we adopted on February 1, 2018. |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2018 | Jul. 31, 2017 | |
Balance Sheet Components Disclosure [Abstract] | ||||
Depreciation and amortization | $ 16.8 | $ 14.8 | $ 32.8 | $ 29.2 |
Intangible assets amortization expense | $ 0.4 | $ 0.4 | $ 0.8 | $ 0.8 |
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted-average remaining useful life | 2 years 10 months 24 days |
Balance Sheet Components - Sc42
Balance Sheet Components - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Thousands | Jul. 31, 2018 | Jan. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, net | $ 4,305 | $ 5,057 | [1] |
Technology patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Technology patents | 10,125 | 10,125 | |
Accumulated amortization | (5,820) | (5,068) | |
Intangible assets, net | $ 4,305 | $ 5,057 | |
[1] | *Prior period information has been adjusted to reflect the adoption impact of Accounting Standards Codification 606, Revenue from Contracts with Customers (ASC 606), which we adopted on February 1, 2018. |
Balance Sheet Components - Sc43
Balance Sheet Components - Schedule of Expected Amortization Expenses for Intangible Assets (Details) - USD ($) $ in Thousands | Jul. 31, 2018 | Jan. 31, 2018 | [1] |
Balance Sheet Components Disclosure [Abstract] | |||
Remainder of 2019 | $ 752 | ||
2,020 | 1,504 | ||
2,021 | 1,504 | ||
2,022 | 545 | ||
Intangible assets, net | $ 4,305 | $ 5,057 | |
[1] | *Prior period information has been adjusted to reflect the adoption impact of Accounting Standards Codification 606, Revenue from Contracts with Customers (ASC 606), which we adopted on February 1, 2018. |
Balance Sheet Components - Sc44
Balance Sheet Components - Schedule of Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Jul. 31, 2018 | Jan. 31, 2018 |
Balance Sheet Components Disclosure [Abstract] | ||
Taxes payable | $ 3,801 | $ 4,052 |
Accrued marketing | 5,017 | 5,928 |
Accrued travel and entertainment expenses | 2,556 | 4,386 |
Other accrued liabilities | 15,675 | 12,463 |
Total accrued expenses and other liabilities | $ 27,049 | $ 26,829 |
Convertible Senior Notes (Detai
Convertible Senior Notes (Details) | 1 Months Ended | 6 Months Ended | |||
Apr. 30, 2018USD ($)dayshares$ / shares | Jul. 31, 2018USD ($)$ / shares | Jul. 31, 2017USD ($) | [1] | Apr. 04, 2018$ / shares | |
Debt Instrument [Line Items] | |||||
Proceeds from issuance of convertible senior notes, net of issuance costs | $ 562,062,000 | $ 0 | |||
Debt issuance costs, net of amortization | $ 12,900,000 | ||||
Closing price of stock (in dollars per share) | $ / shares | $ 21.66 | ||||
Payment to enter into agreement | $ 64,630,000 | $ 0 | |||
Capped Call | |||||
Debt Instrument [Line Items] | |||||
Payment to enter into agreement | 64,600,000 | ||||
Convertible Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt issuance costs, net of amortization | 9,800,000 | 9,337,000 | |||
Additional Paid-in Capital | |||||
Debt Instrument [Line Items] | |||||
Debt issuance costs, net of amortization | $ 3,100,000 | $ 3,068,000 | |||
Class A | |||||
Debt Instrument [Line Items] | |||||
Closing price of stock (in dollars per share) | $ / shares | $ 21.66 | $ 19.83 | |||
Class A | Capped Call | |||||
Debt Instrument [Line Items] | |||||
Exercise price (in dollars per share) | $ / shares | $ 39.66 | ||||
Exercise price premium percentage over last reported sales price | 100.00% | ||||
Convertible Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 575,000,000 | ||||
Interest rate | 0.125% | ||||
Proceeds from issuance of convertible senior notes, net of issuance costs | $ 562,100,000 | ||||
Conversion percentage of principal amount plus accrued and unpaid contingent interest | 100.00% | ||||
Convertible debt, fair value based on the closing trading price per $100 of the Notes | $ 607,200,000 | ||||
If-converted value | $ 474,000,000 | ||||
Convertible Senior Notes | Class A | |||||
Debt Instrument [Line Items] | |||||
Number of convertible shares at initial conversion rate (in shares) | shares | 21,884,155 | ||||
Conversion ratio (in shares per $1,000 principal amount) | 38.0594 | ||||
Conversion price (in dollars per share) | $ / shares | $ 26.27 | ||||
Redemption percentage of principal amount of Notes to be redeemed | 100.00% | ||||
Convertible Senior Notes | Class A | Any Fiscal Quarter Commencing After The Fiscal Quarter Ending On July 31, 2018 | |||||
Debt Instrument [Line Items] | |||||
Threshold trading days | day | 20 | ||||
Threshold consecutive trading days | day | 30 | ||||
Threshold percentage of stock price trigger | 130.00% | ||||
Convertible Senior Notes | Class A | Five Business Day Period After Any Five Consecutive Trading Day Period | |||||
Debt Instrument [Line Items] | |||||
Threshold consecutive trading days | day | 5 | ||||
Threshold percentage of stock price trigger | 98.00% | ||||
Threshold business days | day | 5 | ||||
Convertible Senior Notes | Class A | Immediately Preceding The Date On Which We Provide Notice Of Redemption | |||||
Debt Instrument [Line Items] | |||||
Threshold trading days | day | 2 | ||||
[1] | * Prior period information has been adjusted to reflect the adoption impact of ASC 606 and ASU 2016-18, which we adopted on February 1, 2018 |
Convertible Senior Notes - Allo
Convertible Senior Notes - Allocation of Notes (Details) - USD ($) $ in Thousands | Apr. 30, 2018 | Jul. 31, 2018 |
Liability: | ||
Less: debt issuance costs, net of amortization | $ (12,900) | |
Stockholders' equity: | ||
Less: debt issuance costs | (12,900) | |
Convertible Senior Notes | ||
Liability: | ||
Principal | $ 575,000 | |
Less: debt discount, net of amortization | (128,976) | |
Less: debt issuance costs, net of amortization | (9,800) | (9,337) |
Net carrying amount of the Notes | 436,687 | |
Stockholders' equity: | ||
Less: debt issuance costs | (9,800) | (9,337) |
Additional Paid-in Capital | ||
Liability: | ||
Less: debt issuance costs, net of amortization | (3,100) | (3,068) |
Stockholders' equity: | ||
Allocated value of the conversion feature | 136,333 | |
Less: debt issuance costs | (3,100) | $ (3,068) |
Additional paid-in capital | $ 133,265 |
Convertible Senior Notes - Inte
Convertible Senior Notes - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2018 | Jul. 31, 2017 | [1] | |
Debt Instrument [Line Items] | ||||
Total amortization of debt discount and debt issuance costs | $ 7,889 | $ 0 | ||
Convertible Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Amortization of debt discount | $ 6,000 | 7,357 | ||
Amortization of debt issuance costs | 434 | 532 | ||
Total amortization of debt discount and debt issuance costs | 6,434 | 7,889 | ||
Contractual interest expense | 181 | 224 | ||
Total interest expense related to the Notes | $ 6,615 | $ 8,113 | ||
Effective interest rate of the liability component | 5.60% | 5.60% | ||
[1] | * Prior period information has been adjusted to reflect the adoption impact of ASC 606 and ASU 2016-18, which we adopted on February 1, 2018 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | Jul. 31, 2018 | Mar. 31, 2018 | Jan. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | |||
Base rent obligation | $ 153,700,000 | $ 113,000,000 | |
Lessee, Lease, Description [Line Items] | |||
Outstanding letters of credit | $ 10,800,000 | $ 9,600,000 | |
Letter of Credit | |||
Lessee, Lease, Description [Line Items] | |||
Principal amount | $ 1,500,000 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) $ / shares in Units, $ in Millions | 1 Months Ended | ||||
Apr. 30, 2018USD ($)shares | Jul. 31, 2018class$ / sharesshares | Apr. 04, 2018$ / shares | Jan. 31, 2018$ / sharesshares | [1] | |
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) | 235,412,000 | 220,979,000 | |||
Common stock, shares outstanding (in shares) | 235,412,000 | 220,979,000 | |||
Closing price of stock (in dollars per share) | $ / shares | $ 21.66 | ||||
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) | 204,051,868 | 129,502,000 | |||
Common stock, shares outstanding (in shares) | 204,051,868 | 129,502,000 | |||
Stock repurchased and retired during period (in shares) | 1,008,573 | ||||
Stock repurchased and retired during period, value | $ | $ 20 | ||||
Closing price of stock (in dollars per share) | $ / shares | $ 21.66 | $ 19.83 | |||
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) | 31,359,938 | 91,477,000 | |||
Common stock, shares outstanding (in shares) | 31,359,938 | 91,477,000 | |||
[1] | *Prior period information has been adjusted to reflect the adoption impact of Accounting Standards Codification 606, Revenue from Contracts with Customers (ASC 606), which we adopted on February 1, 2018. |
Equity Incentive Plans - Additi
Equity Incentive Plans - Additional Information (Details) | Mar. 16, 2016 | Aug. 31, 2015USD ($)periodshares | Jul. 31, 2018USD ($) | Jul. 31, 2017USD ($) | Apr. 30, 2017USD ($) | Jul. 31, 2018USD ($)plan | Jul. 31, 2017USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of equity incentive plans | plan | 2 | ||||||
Total stock-based compensation expense | $ 53,654,000 | $ 36,838,000 | $ 97,609,000 | $ 69,057,000 | |||
Compensation cost, weighted average term | 2 years 1 month 6 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 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 | ||||||
Total stock-based compensation expense | 7,900,000 | $ 3,800,000 | $ 14,600,000 | $ 7,900,000 | |||
Unrecognized stock-based compensation expense | $ 23,900,000 | $ 23,900,000 | |||||
Compensation cost, weighted average term | 10 months 24 days | ||||||
2015 Employee Stock Purchase Plan | Class A | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Purchase price as percentage of fair market value of common stock | 85.00% | ||||||
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 | ||||||
Modification charges | $ 9,000,000 |
Equity Incentive Plans - Stock
Equity Incentive Plans - Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jul. 31, 2018 | Jan. 31, 2017 | Apr. 04, 2018 | Jan. 31, 2018 | |
Options Outstanding, Number of Shares | ||||
Beginning balance (in shares) | 46,359,949 | |||
Options exercised (in shares) | (5,884,173) | |||
Options forfeited/cancelled (in shares) | (1,191,720) | |||
Ending balance (in shares) | 39,284,056 | |||
Options Outstanding, Number of Shares, Vested and exercisable (in shares) | 26,675,832 | |||
Options Outstanding, Weighted Average Exercise Price | ||||
Beginning balance (in dollars per share) | $ 7.75 | |||
Options exercised (in dollars per share) | 4.94 | |||
Options forfeited/cancelled (in dollars per share) | 9.36 | |||
Ending balance (in dollars per share) | 8.12 | |||
Weighted Average Exercise Price, Vested and exercisable (in dollars per share) | $ 6 | |||
Weighted- Average Remaining Contractual Life | ||||
Weighted Average Remaining Contractual Life | 5 years 10 months 24 days | 6 years 3 months 18 days | ||
Weighted Average Remaining Contractual Life, Vested and exercisable | 5 years 4 months 24 days | |||
Aggregate Intrinsic Value | ||||
Aggregate Intrinsic Value | $ 531,664 | $ 574,224 | ||
Aggregate Intrinsic Value, Vested and exercisable | $ 417,651 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Closing price of stock (in dollars per share) | $ 21.66 | |||
Unrecognized compensation cost, stock options | $ 49,600 | |||
Compensation cost, weighted average term | 2 years 1 month 6 days | |||
Class A | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Closing price of stock (in dollars per share) | $ 21.66 | $ 19.83 |
Equity Incentive Plans - Restri
Equity Incentive Plans - Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Mar. 31, 2018 | Aug. 31, 2017 | Mar. 30, 2017 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2018 | Jul. 31, 2017 | Jan. 31, 2018 | |
Weighted-Average Grant Date Fair Value | ||||||||
Compensation cost, weighted average term | 2 years 1 month 6 days | |||||||
Stock-based compensation expense | $ 53,654 | $ 36,838 | $ 97,609 | $ 69,057 | ||||
Restricted Stock Units | ||||||||
Number of Restricted Stock Units Outstanding | ||||||||
Unvested, Beginning balance (in shares) | 17,682,646 | |||||||
Granted (in shares) | 7,751,921 | |||||||
Vested (in shares) | (4,117,282) | |||||||
Forfeited (in shares) | (858,561) | |||||||
Converted (in shares) | (1,142,838) | |||||||
Unvested, Ending balance (in shares) | 1,375,210 | 19,315,886 | 19,315,886 | |||||
Weighted-Average Grant Date Fair Value | ||||||||
Beginning balance (in dollars per share) | $ 12.60 | |||||||
Granted (in dollars per share) | 20.79 | |||||||
Vested (in dollars per share) | 12.50 | |||||||
Forfeited (in dollars per share) | 14.18 | |||||||
Converted (in dollars per share) | 11.86 | |||||||
Ending balance (in dollars per share) | $ 15.87 | $ 15.87 | ||||||
Aggregate Intrinsic Value | $ 418,359 | $ 418,359 | $ 356,117 | |||||
Compensation not yet recognized | 273,300 | $ 273,300 | ||||||
Compensation cost, weighted average term | 3 years | |||||||
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 | ||||||||
Earned (in shares) | 780,000 | |||||||
Stock-based compensation expense | $ 500 | $ 1,200 | $ 1,500 | $ 1,600 | ||||
Performance Shares | Granted March 2017 | Minimum | ||||||||
Weighted-Average Grant Date Fair Value | ||||||||
Award vesting rights, percentage | 0.00% | |||||||
Performance Shares | Granted March 2017 | Maximum | ||||||||
Weighted-Average Grant Date Fair Value | ||||||||
Award vesting rights, percentage | 150.00% | |||||||
Performance Shares | Granted August 2017 | ||||||||
Number of Restricted Stock Units Outstanding | ||||||||
Granted (in shares) | 464,744 | |||||||
Weighted-Average Grant Date Fair Value | ||||||||
Award vesting rights, percentage | 100.00% | |||||||
Performance Shares | Granted August 2017 | Minimum | ||||||||
Weighted-Average Grant Date Fair Value | ||||||||
Award vesting rights, percentage | 0.00% | |||||||
Performance Shares | Granted August 2017 | Maximum | ||||||||
Weighted-Average Grant Date Fair Value | ||||||||
Award vesting rights, percentage | 150.00% |
Equity Incentive Plans - Rest53
Equity Incentive Plans - Restricted Stock (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2018 | Jul. 31, 2017 | Mar. 31, 2018 | Jan. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 53,654 | $ 36,838 | $ 97,609 | $ 69,057 | ||
Compensation cost, weighted average term | 2 years 1 month 6 days | |||||
Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award balance (in shares) | 19,315,886 | 19,315,886 | 1,375,210 | 17,682,646 | ||
Issued (in shares) | 7,751,921 | |||||
Compensation cost, weighted average term | 3 years | |||||
Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 6,700 | $ 10,200 | ||||
Unrecognized stock-based compensation expense | $ 31,700 | $ 31,700 | ||||
Compensation cost, weighted average term | 2 years 7 months 6 days | |||||
Restricted Stock | Performance Vesting Conditions | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award balance (in shares) | 697,116 | |||||
Restricted Stock | Service Vesting Conditions | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award balance (in shares) | 678,094 | |||||
Restricted Stock | Performance Vesting At Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Issued (in shares) | 21,047 | 1,954,908 | ||||
Restricted Stock | Maximum | Performance Vesting At Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting rights, percentage | 180.00% | |||||
Restricted Stock | Minimum | Performance Vesting At Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting rights, percentage | 0.00% |
Equity Incentive Plans - Stock-
Equity Incentive Plans - Stock-Based Compensation Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2018 | Jul. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 53,654 | $ 36,838 | $ 97,609 | $ 69,057 |
Cost of revenue—product | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 720 | 358 | 1,328 | 755 |
Cost of revenue—support subscription | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 2,929 | 2,245 | 5,613 | 4,019 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 22,232 | 17,971 | 43,322 | 33,559 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 17,269 | 11,439 | 31,209 | 22,065 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 10,504 | $ 4,825 | $ 16,137 | $ 8,659 |
Net Loss per Share Attributab55
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, 2018 | Jul. 31, 2017 | [1] | Jul. 31, 2018 | Jul. 31, 2017 | ||
Earnings Per Share [Abstract] | ||||||
Net loss | $ (60,123) | $ (58,411) | [2] | $ (124,427) | $ (115,570) | [3] |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted (in shares) | 229,359 | 209,193 | 226,609 | 207,515 | ||
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share) | $ (0.26) | $ (0.28) | $ (0.55) | $ (0.56) | ||
[1] | * Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018. | |||||
[2] | * Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018. | |||||
[3] | * Prior period information has been adjusted to reflect the adoption impact of ASC 606 and ASU 2016-18, which we adopted on February 1, 2018 |
Net Loss per Share Attributab56
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, 2018 | Jul. 31, 2017 | Jul. 31, 2018 | Jul. 31, 2017 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share, amount (in shares) | 65,358 | 70,765 | 66,121 | 69,854 |
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) | 40,920 | 53,878 | 42,923 | 54,864 |
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) | 19,957 | 15,710 | 19,486 | 13,759 |
Restricted stock and 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) | 3,327 | 279 | 2,585 | 333 |
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) | 1,154 | 898 | 1,127 | 898 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 6 Months Ended |
Jul. 31, 2018segment | |
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, 2018 | Jul. 31, 2017 | Jul. 31, 2018 | Jul. 31, 2017 | ||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||
Total revenue | $ 308,884 | $ 224,670 | [1] | $ 564,829 | $ 407,315 |
United States | |||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||
Total revenue | 229,760 | 165,620 | 414,678 | 312,125 | |
Rest of the world | |||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||
Total revenue | $ 79,124 | $ 59,050 | $ 150,151 | $ 95,190 | |
[1] | * Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018. |
Segment Information - Schedul59
Segment Information - Schedule of Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | Jul. 31, 2018 | Jan. 31, 2018 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Total long-lived assets | $ 101,718 | $ 89,142 | [1] |
United States | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Total long-lived assets | 97,250 | 85,430 | |
Rest of the world | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Total long-lived assets | $ 4,468 | $ 3,712 | |
[1] | *Prior period information has been adjusted to reflect the adoption impact of Accounting Standards Codification 606, Revenue from Contracts with Customers (ASC 606), which we adopted on February 1, 2018. |
Subsequent Event (Details)
Subsequent Event (Details) $ in Millions | 1 Months Ended |
Aug. 31, 2018USD ($) | |
Subsequent Event | StorReduce, Inc. | |
Subsequent Event [Line Items] | |
Cash consideration | $ 25 |