Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Jan. 31, 2020 | Feb. 28, 2020 | Jul. 31, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-38069 | ||
Entity Registrant Name | CLOUDERA, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 26-2922329 | ||
Entity Address, Address Line One | 395 Page Mill Road | ||
Entity Address, City or Town | Palo Alto | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94306 | ||
City Area Code | 650 | ||
Local Phone Number | 362-0488 | ||
Title of 12(b) Security | Common Stock, $0.00005 par value per share | ||
Trading Symbol | CLDR | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1.4 | ||
Entity Common Stock, Shares Outstanding (In shares) | 295,190,516 | ||
Documents Incorporated by Reference | Information required in response to Part II and Part III of Form 10-K is hereby incorporated by reference to portions of the Registrant’s Proxy Statement for the Annual Meeting of Stockholders to be held in 2020. The Proxy Statement will be filed by the Registrant with the Securities and Exchange Commission no later than 120 days after the end of the Registrant’s fiscal year ended January 31, 2020. | ||
Entity Central Index Key | 0001535379 | ||
Current Fiscal Year End Date | --01-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 107,638 | $ 158,672 |
Marketable securities, current | 253,361 | 322,005 |
Accounts receivable, net | 249,971 | 242,980 |
Contract assets | 4,648 | 4,824 |
Deferred costs | 54,776 | 32,100 |
Prepaid expenses and other current assets | 37,507 | 38,281 |
Total current assets | 707,901 | 798,862 |
Property and equipment, net | 21,988 | 27,619 |
Marketable securities, non-current | 122,193 | 56,541 |
Intangible assets, net | 605,236 | 679,326 |
Goodwill | 590,361 | 586,456 |
Deferred costs, non-current | 35,260 | 36,913 |
Restricted cash | 3,352 | 3,367 |
Operating lease right-of-use assets | 204,642 | |
Other assets | 8,857 | 7,559 |
TOTAL ASSETS | 2,299,790 | 2,196,643 |
CURRENT LIABILITIES: | ||
Accounts payable | 3,858 | 8,185 |
Accrued compensation | 61,826 | 53,590 |
Other accrued liabilities | 22,297 | 24,548 |
Operating lease liabilities, current | 19,181 | |
Total current liabilities | 579,948 | 494,465 |
Operating lease liabilities, non-current | 192,324 | |
Other liabilities | 7,223 | 22,209 |
TOTAL LIABILITIES | 861,421 | 634,574 |
Commitments and contingencies (Note 8 and Note 9) | ||
STOCKHOLDERS’ EQUITY: | ||
Preferred stock, $0.00005 par value; 20,000,000 shares authorized, no shares issued and outstanding at January 31, 2020 and 2019 | 0 | 0 |
Common stock $0.00005 par value; 1,200,000,000 shares authorized at January 31, 2020 and 2019; 295,167,761 and 268,818,627 shares issued and outstanding at January 31, 2020 and 2019, respectively | 15 | 13 |
Additional paid-in capital | 2,923,905 | 2,711,340 |
Accumulated other comprehensive gain (loss) | 273 | (42) |
Accumulated deficit | (1,485,824) | (1,149,242) |
TOTAL STOCKHOLDERS’ EQUITY | 1,438,369 | 1,562,069 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 2,299,790 | 2,196,643 |
Deferred Revenue | ||
CURRENT LIABILITIES: | ||
Contract with customer, liability, current | 460,561 | 390,965 |
Contract with customer, liability, noncurrent | 81,116 | 116,604 |
Other | ||
CURRENT LIABILITIES: | ||
Contract with customer, liability, current | 12,225 | 17,177 |
Contract with customer, liability, noncurrent | $ 810 | $ 1,296 |
Consolidated Balance Sheets - P
Consolidated Balance Sheets - Parenthetical - $ / shares | Jan. 31, 2020 | Jan. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock par value (in dollars per share) | $ 0.00005 | $ 0.00005 |
Preferred stock authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock issued (in shares) | 0 | 0 |
Preferred stock outstanding (in shares) | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.00005 | $ 0.00005 |
Common stock authorized (in shares) | 1,200,000,000 | 1,200,000,000 |
Common stock issued (in shares) | 295,167,761 | 268,818,627 |
Common stock outstanding (in shares) | 295,167,761 | 268,818,627 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | ||
Revenues [Abstract] | ||||
Revenue | $ 794,191 | $ 479,941 | $ 372,293 | |
Cost of revenue: | ||||
Services | [1],[2] | 232,502 | 136,114 | 158,035 |
Gross profit | [1],[2] | 561,689 | 343,827 | 214,258 |
Operating expenses: | ||||
Research and development | [1],[2] | 263,566 | 173,814 | 215,695 |
Sales and marketing | [1],[2] | 467,541 | 253,164 | 287,196 |
General and administrative | [1],[2] | 170,336 | 110,613 | 85,539 |
Total operating expenses | [1],[2] | 901,443 | 537,591 | 588,430 |
Loss from operations | (339,754) | (193,764) | (374,172) | |
Interest income, net | 11,687 | 9,011 | 5,150 | |
Other income (expense), net | 185 | (2,478) | 1,429 | |
Loss before provision for income taxes | (327,882) | (187,231) | (367,593) | |
Provision for income taxes | (8,700) | (5,418) | (2,079) | |
Net loss | $ (336,582) | $ (192,649) | $ (369,672) | |
Net loss per share, basic and diluted (in dollars per share) | $ (1.20) | $ (1.21) | $ (3.24) | |
Weighted-average shares used in computing net loss per share, basic and diluted (in shares) | 280,772 | 159,816 | 114,141 | |
Subscription | ||||
Cost of revenue: | ||||
Services | [1],[2] | $ 117,739 | $ 63,329 | $ 70,902 |
Services | ||||
Cost of revenue: | ||||
Services | [1],[2] | $ 114,763 | $ 72,785 | $ 87,133 |
[1] | Amounts include amortization of acquired intangible assets as follows (in thousands): | |||
[2] | Amounts include stock-based compensation expense as follows (in thousands): |
Consolidated Statements of Op_2
Consolidated Statements of Operations - Parenthetical - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Amortization expense of intangible assets | $ 80,000 | $ 9,100 | $ 3,700 |
Services | |||
Stock-based compensation expense | 17,609 | 11,492 | 31,843 |
Subscription | |||
Stock-based compensation expense | 16,599 | 9,959 | 24,826 |
Amortization expense of intangible assets | 11,213 | 3,251 | 2,230 |
Research and development | |||
Stock-based compensation expense | 75,554 | 41,430 | 100,143 |
Sales and marketing | |||
Stock-based compensation expense | 63,360 | 27,918 | 90,420 |
Amortization expense of intangible assets | 68,811 | 5,878 | 1,493 |
General and administrative | |||
Stock-based compensation expense | $ 47,232 | $ 26,566 | $ 42,774 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (336,582) | $ (192,649) | $ (369,672) |
Other comprehensive income, net of tax: | |||
Foreign currency translation (loss) gain | (935) | 34 | 349 |
Unrealized gain (loss) on investments | 1,250 | 756 | (625) |
Total other comprehensive income (loss), net of tax | 315 | 790 | (276) |
Comprehensive loss | $ (336,267) | $ (191,859) | $ (369,948) |
Consolidated Statements of Rede
Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Initial Public Offering | Follow-On Offering | Common Stock | Common StockInitial Public Offering | Common StockFollow-On Offering | Additional Paid-In Capital | Additional Paid-In CapitalInitial Public Offering | Additional Paid-In CapitalFollow-On Offering | Accumulated Other Comprehensive Loss | Accumulated Deficit |
Outstanding beginning of period (in shares) at Jan. 31, 2017 | 74,907,415 | ||||||||||
Outstanding value beginning of period at Jan. 31, 2017 | $ 657,687 | ||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering (in shares) | (74,907,415) | ||||||||||
Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering | $ (657,687) | ||||||||||
Outstanding end of period (in shares) at Jan. 31, 2018 | 0 | ||||||||||
Outstanding value end of period at Jan. 31, 2018 | $ 0 | ||||||||||
Outstanding beginning of period (in shares) at Jan. 31, 2017 | 38,156,688 | ||||||||||
Beginning balance at Jan. 31, 2017 | (394,680) | $ 2 | $ 192,795 | $ (556) | $ (586,921) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Shares issued under employee stock plans (in shares) | 5,281,193 | ||||||||||
Shares issued under employee stock plans | 21,435 | 21,435 | |||||||||
Vested restricted stock units converted into shares (in shares) | 9,974,266 | ||||||||||
Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering (in shares) | 74,907,415 | ||||||||||
Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering | 657,687 | $ 4 | 657,683 | ||||||||
Issuance of common stock, net of offering costs (in shares) | 17,250,000 | 3,000,000 | |||||||||
Issuance of common stock, net of offering costs | $ 235,366 | $ 46,008 | $ 1 | $ 235,365 | $ 46,008 | ||||||
Stock-based compensation expense | 290,006 | 290,006 | |||||||||
Shares issued related to business combination (in shares) | 358,206 | ||||||||||
Shares issued related to business combination | 2,081 | 2,081 | |||||||||
Shares withheld related to net settlement of restricted stock units (in shares) | (3,600,767) | ||||||||||
Shares withheld related to net settlement of restricted stock units | (59,781) | (59,781) | |||||||||
Unrealized gain (loss) on investments | (625) | (625) | |||||||||
Foreign currency translation (loss) gain | 349 | 349 | |||||||||
Net loss | (369,672) | (369,672) | |||||||||
Outstanding end of period (in shares) at Jan. 31, 2018 | 145,327,001 | ||||||||||
Ending balance at Jan. 31, 2018 | 428,174 | $ 7 | 1,385,592 | (832) | (956,593) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Shares issued under employee stock plans (in shares) | 3,827,218 | ||||||||||
Shares issued under employee stock plans | 22,179 | 22,179 | |||||||||
Vested restricted stock units converted into shares (in shares) | 9,079,901 | ||||||||||
Stock-based compensation expense | 117,365 | 117,365 | |||||||||
Shares issued related to business combination (in shares) | 111,304,700 | ||||||||||
Shares issued related to business combination | 1,202,428 | $ 6 | 1,202,422 | ||||||||
Shares withheld related to net settlement of restricted stock units (in shares) | (720,193) | ||||||||||
Shares withheld related to net settlement of restricted stock units | (16,218) | (16,218) | |||||||||
Unrealized gain (loss) on investments | 756 | 756 | |||||||||
Foreign currency translation (loss) gain | 34 | 34 | |||||||||
Net loss | (192,649) | (192,649) | |||||||||
Outstanding end of period (in shares) at Jan. 31, 2019 | 268,818,627 | ||||||||||
Ending balance at Jan. 31, 2019 | 1,562,069 | $ 13 | 2,711,340 | (42) | (1,149,242) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Shares issued under employee stock plans (in shares) | 4,395,673 | ||||||||||
Shares issued under employee stock plans | 12,676 | 12,676 | |||||||||
Vested restricted stock units converted into shares (in shares) | 23,273,233 | ||||||||||
Vested restricted stock units converted into shares | 2 | $ 2 | 0 | ||||||||
Shares issued under employee stock plans (in shares) | 2,497,928 | ||||||||||
Shares issued under employee stock plans | 12,156 | 12,156 | |||||||||
Stock-based compensation expense | 220,354 | 220,354 | |||||||||
Shares withheld related to net settlement of restricted stock units (in shares) | (3,817,700) | ||||||||||
Shares withheld related to net settlement of restricted stock units | (32,621) | (32,621) | |||||||||
Unrealized gain (loss) on investments | 1,250 | 1,250 | |||||||||
Foreign currency translation (loss) gain | (935) | (935) | |||||||||
Net loss | (336,582) | (336,582) | |||||||||
Outstanding end of period (in shares) at Jan. 31, 2020 | 295,167,761 | ||||||||||
Ending balance at Jan. 31, 2020 | $ 1,438,369 | $ 15 | $ 2,923,905 | $ 273 | $ (1,485,824) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net loss | $ (336,582) | $ (192,649) | $ (369,672) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 92,156 | 17,428 | 12,102 |
Non-cash lease expense | 45,640 | 0 | 0 |
Stock-based compensation expense | 220,354 | 117,365 | 290,006 |
Accretion and amortization of marketable securities | (2,294) | (1,406) | 512 |
Amortization of deferred costs | 47,552 | 30,634 | 23,284 |
Loss (gain) on disposal of fixed assets | 414 | (25) | (111) |
Release of deferred tax valuation allowance | 0 | 0 | (806) |
Changes in assets and liabilities: | |||
Accounts receivable | (8,956) | 54,231 | (28,780) |
Contract assets | 176 | (1,891) | (285) |
Prepaid expenses and other assets | (8,456) | 16,497 | (16,194) |
Deferred costs | (68,575) | (39,665) | (34,557) |
Accounts payable | (4,089) | 3,795 | (667) |
Accrued compensation | 5,570 | (17,962) | 5,179 |
Accrued expenses and other liabilities | 109 | 5,413 | 7,664 |
Operating lease liabilities | (51,059) | 0 | 0 |
Net cash (used in) provided by operating activities | (36,826) | 34,273 | (42,268) |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchases of marketable securities and other investments | (494,252) | (462,737) | (620,329) |
Proceeds from sale of marketable securities and other investments | 86,739 | 56,702 | 79,069 |
Maturities of marketable securities and other investments | 413,557 | 435,478 | 321,552 |
Cash used in business combinations, net of cash acquired | (4,500) | (1,937) | |
Cash acquired in business combination | 42,557 | ||
Capital expenditures | (7,203) | (10,086) | (12,954) |
Proceeds from sale of equipment | 0 | 45 | 145 |
Net cash (used in) provided by investing activities | (5,659) | 61,959 | (234,454) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Net proceeds from issuance of common stock in initial public offering | 0 | 0 | 237,422 |
Net proceeds from issuance of common stock in follow-on offering | 0 | 0 | 46,008 |
Taxes paid related to net share settlement of restricted stock units | (32,621) | (16,218) | (59,781) |
Proceeds from employee stock plans | 25,664 | 21,844 | 23,673 |
Net cash (used in) provided by financing activities | (6,957) | 5,626 | 247,322 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,607) | (1,118) | 1,067 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (51,049) | 100,740 | (28,333) |
Cash, cash equivalents and restricted cash — Beginning of period | 162,039 | 61,299 | 89,632 |
Cash, cash equivalents and restricted cash — End of period | 110,990 | 162,039 | 61,299 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||
Cash paid for income taxes | 7,760 | 4,775 | 2,694 |
Additional Cash Flow Elements and Supplemental Cash Flow Information [Abstract] | |||
Purchases of property and equipment in accounts payable and other accrued liabilities | 45 | 208 | 1,130 |
Fair value of common stock issued as consideration for business combinations | 0 | 1,154,230 | 2,081 |
Fair value of equity awards assumed | 0 | 48,197 | 0 |
Conversion of redeemable convertible preferred stock to common stock | 0 | 0 | 657,687 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 7,392 | 0 | 0 |
Other | |||
Changes in assets and liabilities: | |||
Other contract liabilities | (5,438) | 5,922 | 12,509 |
Deferred Revenue | |||
Changes in assets and liabilities: | |||
Other contract liabilities | $ 36,652 | $ 36,586 | $ 57,548 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Jan. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business Cloudera, Inc. was incorporated in the state of Delaware on June 27, 2008 and is headquartered in Palo Alto, California. We sell subscriptions and services for an integrated suite of data analytics and management products from the Edge to artificial intelligence (AI). Our offerings are based predominantly on open source software, utilizing data stored natively in public cloud object stores as well as in various open source data stores. Unless the context requires otherwise, the words “we,” “us,” “our,” the “Company” and “Cloudera” refer to Cloudera, Inc. and its subsidiaries taken as a whole. In January 2019, we completed our merger of Hortonworks, Inc. (Hortonworks), a publicly-held company headquartered in Santa Clara, California, and a provider of enterprise-grade, global data management platforms, services and solutions. We have included the financial results of Hortonworks in our consolidated financial statements from the date of completion of our merger. During the year ended January 31, 2019, we adopted Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Consolidation The consolidated financial statements include the accounts of Cloudera, Inc. and its wholly owned subsidiaries which are located in various countries, including the United States, Australia, China, India, Germany, Ireland, The Netherlands, Singapore, Hungary and the United Kingdom. All intercompany balances and transactions have been eliminated upon consolidation. The financial statements are prepared in accordance with accounting principles generally accepted in the United States (GAAP). Fiscal Year Our fiscal year ends on January 31. References to fiscal 2020, for example, refers to the fiscal year ended January 31, 2020. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant items subject to such estimates include the useful lives of property and equipment and intangible assets, allowance for doubtful accounts, stock-based compensation expense, bonus attainment, self-insurance costs incurred, the fair value and useful lives of tangible and intangible assets acquired and liabilities assumed resulting from business combinations, the evaluation for impairment of intangible assets and goodwill, estimated period of benefit for deferred contract costs, estimates related to our revenue recognition such as, the assessment of elements in a multi-element arrangement and the valuation assigned to each element and contingencies, and the incremental borrowing rate used in discounting of our lease liabilities. These estimates and assumptions are based on management’s best estimates and judgment. Management regularly evaluates its estimates and assumptions using historical experience and other factors; however, actual results could differ significantly from these estimates. Segments We operate as two operating segments – subscription and services. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker, who is our chief executive officer, in deciding how to allocate resources and assess performance. In January 2019, we completed our merger with Hortonworks. The combined company operates under the Cloudera name. We have integrated Hortonworks into our ongoing business operations and our chief operating decision maker evaluates our financial information and resources and assesses the performance of these resources on a consolidated basis. Our consolidated financial statements for the year ended and as of January 31, 2019 include the impact of the Hortonworks merger, and our results of operations for the year ended January 31, 2020 reflect the results of operations of the combined entity. Foreign Currency Translation The functional currency of our foreign subsidiaries is generally the local currency. The gains and losses resulting from translating our foreign subsidiaries’ financial statements into U.S. dollars have been reported in accumulated other comprehensive income (loss) on the consolidated balance sheet. Assets and liabilities are translated at exchange rates in effect at the balance sheet date. Equity is translated at the historical rates from the original transaction period. Revenue and expenses are translated at average exchange rates in effect during the period. Foreign currency transaction gains and losses are included in other income (expense), net on the statement of operations. Cash, Cash Equivalents and Restricted Cash Cash equivalents consist of short-term, highly liquid investments with original maturities of three months or less from the date of purchase. Restricted cash represents cash on deposit with financial institutions in support of letters of credit outstanding in favor of certain landlords for office space. Cash as reported on the consolidated statements of cash flows includes the aggregate amounts of cash and cash equivalents and the restricted cash as shown on the consolidated balance sheets. Cash as reported on the consolidated statements of cash flows consists of the following (in thousands): As of January 31, 2020 2019 2018 Cash and cash equivalents $ 107,638 $ 158,672 $ 43,247 Restricted cash (1) 3,352 3,367 18,052 Cash, cash equivalents and restricted cash $ 110,990 $ 162,039 $ 61,299 (1) The restricted cash balance as of January 31, 2019 decreased to $3.4 million from $18.1 million as of January 31, 2018 as a result of the removal of restrictions on letter of credit funds. Marketable Securities We have investments in various marketable securities which are classified as available for sale. We determine the appropriate classification of marketable securities at the time of purchase and reevaluate such determination at each balance sheet date. The investments are adjusted for amortization of premiums and discounts to maturity and such amortization is included in interest income, net on the statement of operations. Changes in market value considered to be temporary are recorded as unrealized gains or losses in other comprehensive income (loss). Realized gains and losses and declines in value judged to be other than temporary on available-for-sale securities are included in other income (expense), net on the statement of operations. The cost of securities sold is based on the specific-identification method. Concentration of Credit Risk and Significant Customers Financial instruments that subject us to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, restricted cash and accounts receivable. Our cash is deposited with high credit quality financial institutions. At times such deposits may be in excess of the Federal Depository Insurance Corporation insured limits. We have not experienced any losses on these deposits. As of January 31, 2020 and 2019, no single customer represented more than 10% of accounts receivable. For the years ended January 31, 2020, 2019 and 2018, no single customer accounted for 10% or more of revenue. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at the invoiced amount. We generally do not require collateral and estimate the allowance for doubtful accounts based on the age of outstanding receivables, historical experience, customer creditworthiness and existing economic conditions. If events or changes in circumstances indicate that specific receivable balances may be impaired, further consideration is given to the collectability of those balances and an allowance is recorded accordingly. Past-due receivable balances are written off when internal collection efforts have been unsuccessful in collecting the amount due. As of January 31, 2020 and 2019, allowance for doubtful accounts was $0.8 million a nd $0.2 million, respectively. The movements in the allowance for doubtful accounts were not significant for any of the periods presented. Property and Equipment, Net Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization of property and equipment is calculated using a straight-line method over the estimated useful lives of the respective assets. Maintenance and repairs that do not extend the life or improve the asset are expensed when incurred. The estimated useful lives of our assets are as follows: Computer software 2 years Computer equipment 2-3 years Furniture and office equipment 3 years Leasehold improvements Shorter of remaining lease term or estimated useful life We review property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. An impairment loss is recognized when the total of estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition is less than its carrying amount. Impairment, if any, would be assessed using discounted cash flows or other appropriate measures of fair value. There was no impairment of property and equipment during the years ended January 31, 2020, 2019 or 2018. Leases As a result of the adoption of ASU 2016-02, Leases (Topic 842) , we have also made changes to our accounting policies with respect to leases. At the inception of a contract, we determine whether the contract is or contains a lease. All leases with a term greater than one year are recognized on the balance sheet as right-of-use (ROU) assets and lease liabilities. We have elected the short-term leases practical expedient which allows any leases with a term of 12 months or less to be considered short-term and thus will not have a lease liability or ROU asset recognized on the balance sheet. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate is the rate incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Our lease terms may include options to extend or terminate the lease, which we do not include in our minimum lease terms unless the options are reasonably certain to be exercised. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components which we have elected to account for as a single lease component. On the lease commencement date, we establish assets and liabilities for the present value of estimated future costs to retire long-lived assets at the termination or expiration of a lease. Such assets are depreciated over the lease term to operating expense. Additionally, we have entered into subleases for unoccupied leased office space. Any impairments to the ROU asset, leasehold improvements or other assets as a result of a sublease are recognized as an operating expense in the period the sublease is executed. Any sublease payments received in excess of the straight-line rent payments for the sublease are recorded as an offset to operating expenses and recognized over the sublease life. Goodwill and Intangible Assets Goodwill represents the excess of the fair value of purchase consideration in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill amounts are not amortized, but rather tested for impairment at least annually or more often if circumstances indicate that the carrying value may not be recoverable. Intangible assets are amortized over their useful lives. Each period we evaluate the estimated remaining useful life of our intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization. We evaluate the recoverability of our long-lived assets, including intangible assets, for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of these assets is measured by comparison of the carrying amount of each asset to the future undiscounted cash flows the asset is expected to generate. If the undiscounted cash flows used in the test for recoverability are less than the carrying amount of these assets, then the carrying amount of such assets is reduced to fair value. There were no impairments of goodwill or intangible assets during the years ended January 31, 2020, 2019 or 2018. Business Combinations We use our best estimates and assumptions to assign fair value to tangible and intangible assets acquired and liabilities assumed at the acquisition or merger date. Such estimates are inherently uncertain and subject to refinement. We continue to collect information and reevaluate these estimates and assumptions and record any adjustments to the preliminary estimates to goodwill provided that we are within the measurement period. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statements of operations. Capitalized Software Costs Capitalization of software development costs for products to be sold to third parties begins upon the establishment of technological feasibility and ceases when the product is available for general release. There is generally no significant passage of time between achievement of technological feasibility and the availability of our software for general release, and the majority of our software is open-source. Therefore, we have not capitalized any software costs through January 31, 2020. All software development costs have been charged to research and development expense in the consolidated statements of operations as incurred. Comprehensive Loss Comprehensive loss represents the net loss for the period plus the results of certain changes to stockholders’ equity (deficit) that are not reflected in the consolidated statements of operations. Revenue Recognition We generate revenue from subscriptions and services. Subscription revenue relates to term (or time-based) subscription agreements for both open source and propriety software including support. Subscription arrangements are typically one three seven customers typically do not include general right of returns. Services revenue relates to professional services for the implementation and use of our subscriptions, machine learning expertise and consultation, training and education services and related reimbursable travel costs. We price our subscription offerings based on the number of servers in a cluster, or nodes, core or edge devices, data under management and/or the scope of support provided. Our consulting services are priced primarily on a time and materials basis, and to a lesser extent, a fixed fee basis, and training services are generally priced based on attendance. We determine revenue recognition through the following steps, which are described in more detail below: • Identification of the contract or contracts with a customer • Identification of the performance obligation(s) in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligation(s) in the contract • Recognition of revenue when, or as, a performance obligation is satisfied Our agreements with customers often include multiple subscriptions and/or professional services elements, and these elements are sometimes included in separate contracts. We consider an entire customer arrangement to determine if separate contracts entered into at or near the same time should be considered combined for the purposes of revenue recognition. We work with partners in various capacities whereby we are typically responsible for providing the actual product or service as a principal. At contract inception, we assess the subscription and services product offerings or bundle of product offerings in our contracts to identify performance obligations that are distinct. A performance obligation is distinct when it is separately identifiable from other items in a bundled package and if a customer can benefit from it on its own or with other resources that are readily available to the customer. To identify our performance obligations, we consider all of the product offerings promised in the contract. We have concluded that our contracts with customers do not contain warranties that give rise to a separate performance obligation. The transaction price is the total amount of consideration we expect to be entitled to in exchange for the product offerings in a contract. Sales, value-added and other taxes we collect from customers concurrent with revenue-producing activities are excluded from revenue. In the instance where our contracts with customers contain variable consideration, we estimate variable consideration primarily using the expected value method. Once we have determined the transaction price, the total transaction price is allocated to each performance obligation in a manner depicting the amount of consideration to which we expect to be entitled in exchange for transferring the product(s) or service(s) to the customer (allocation objective). If the allocation objective is met at contractual prices, no allocations are performed. Otherwise, we allocate the transaction price to each performance obligation identified in the contract on a relative stand-alone selling price basis. In order to determine the stand-alone selling price, we conduct a periodic analysis that requires judgment and considers multiple factors that are reasonably available and maximizes the use of observable inputs that may vary over time depending upon the unique facts and circumstances related to each performance obligation. To have observable inputs, we require that a substantial majority of the stand-alone selling prices for a product offering fall within a pricing range. If a directly observable stand-alone selling price does not exist, we estimate a stand-alone selling price range by reviewing external and internal market factor categories, which may include pricing practices, historical discounting, industry practices, service groups and geographic considerations. There is also no hierarchy for how to estimate or otherwise determine the stand-alone selling price for product offerings that are not sold separately, however, we maximize the use of observable data. We believe that this analysis results in an estimate that approximates the price we would charge for the product offerings if they were sold separately. The following describes the nature of our primary types of revenue and the revenue recognition policies and significant payment terms as they pertain to the types of transactions we enter into with our customers. Subscription revenue Subscription revenue relates to term (or time-based) subscriptions to our platform, which includes both open source and proprietary software and related support. Subscriptions include internet, email and phone support, bug fixes, and the right to receive unspecified software updates and upgrades released when and if available during the subscription term. Revenue for subscription arrangements is recognized ratably beginning on the later of the date access is made available to the customer or the start of the contractual term of the arrangement. Subscription revenue also includes revenue related to functional intellectual property that is generally recognized on the date access is made available to the customer. As part of a subscription, we stand ready to help customers resolve technical issues related to the installed platform. The subscriptions are designed to assist throughout a customer’s lifecycle from development to proof-of-concept, to quality assurance and testing, to production and development. Subscription is generally offered under renewable, fixed fee contracts where payments are typically due annually in advance and may have a term of one year or multiple years. The contracts generally do not contain refund provisions for fees earned related to services performed. A subscription is viewed as a stand-ready performance obligation comprised of a series of distinct days of service that is satisfied ratably over time as the services are provided. A time-elapsed output method is used to measure progress because our efforts are expended evenly throughout the period given the nature of the promise is a stand-ready service. Unearned subscription revenue is included in deferred revenue and other contract liabilities. On occasion, we may sell engineering services and/or a premium subscription agreement that provides a customer with development input and the opportunity to work more closely with our developers. Services revenue Services revenue is derived primarily from customer fees for consulting services engagements and education services. Our professional services are provided primarily on a time and materials basis and, to a lesser extent, a fixed fee basis, and education services are generally priced based on attendance. Time and material contracts are generally invoiced based upon hours incurred on a monthly basis and fixed fee contracts may be invoiced up-front or as milestones are achieved throughout the project. Services revenue is typically recognized over time as the services are rendered. Depending on the nature of the professional services engagement (e.g., time and materials basis, fixed fee basis, etc.), various measures of progress may be used to recognize revenue. These measures of progress include recognizing revenue in an amount equal to and at the time of invoicing, a measure of time incurred relative to remaining hours expected to be delivered, or other similar measures. These measures depict our efforts to satisfy services contracts and therefore reflect the transfer of control for the services to a customer. Contract Assets Contract assets consist of the right to consideration in exchange for product offerings that we have transferred to a customer when that right is conditional on something other than the passage of time (e.g., performance prior to invoicing on fixed fee service arrangements with substantive acceptance terms). We record unbilled accounts receivable related to revenue recognized in excess of amounts invoiced as we have an unconditional right to invoice and receive payment in the future related to those fulfilled obligations. When we have unconditional rights to consideration, except for the passage of time, a receivable are recorded on the consolidated balance sheets. We do not typically include extended payment terms in our contracts with customers. Contract Liabilities Contract liabilities represent an obligation to transfer product offerings for which we have received consideration, or for which an amount of consideration is due from the customer (e.g., subscription arrangements where consideration is paid annually in advance). Contract liabilities are comprised of short-term and long-term deferred revenue and other contract liabilities. Deferred revenue consists of amounts invoiced to customers but not yet recognized as revenue. Our contract balances are reported as net contract assets or liabilities on a contract-by-contract basis at the end of each reporting period. Contract Costs Contract costs, consisting primarily of sales commissions and payroll taxes, that are incremental to obtaining a subscription contract with a customer are capitalized and recorded as deferred costs. We expect to recover deferred contract costs over the period of benefit from the underlying contracts. The amortization period for recovery is consistent with the timing of transfer to the customer of services to which the capitalized costs relate. Contract costs that relate to an underlying transaction are expensed commensurate with the recognition of revenue as performance obligations are satisfied. Contract costs that are incurred in excess of those relating to an underlying transaction are not considered commensurate with recognition of revenue as performance obligations are satisfied, and are amortized on a straight-line basis over the expected benefit period of five years. Commissions for services are treated as a separate class with a contract duration of less than a year and are expensed as incurred. Contract costs were $90.0 million and $69.0 million as of January 31, 2020 and 2019, respectively. For the years ended January 31, 2020, 2019, and 2018, amortization expense for the contract costs were $47.6 million, $30.6 million and $23.3 million, respectively, and there was no impairment loss in relation to the costs capitalized. We do not incur direct fulfillment-related costs of a nature required to be capitalized and amortized. Cost of Revenue Cost of revenue for subscriptions and services is expensed as incurred. Cost of revenue for subscriptions primarily consists of personnel costs such as salaries, bonuses and benefits and stock-based compensation for employees providing technical support for our subscription customers, allocated shared costs (including rent and information technology) and amortization of certain acquired intangible assets. Cost of revenue for services primarily consists of personnel costs for employees and subcontractors associated with service contracts, travel costs and allocated shared costs. Research and Development Research and development costs are expensed as incurred and primarily include personnel costs, contractor fees, allocated shared costs, supplies, and depreciation of equipment associated with the development of new features for our subscriptions prior to the establishment of their technological feasibility. Advertising Expenses Advertising is expensed as incurred. Advertising expense was $15.4 million, $6.9 million, and $6.4 million for the years ended January 31, 2020, 2019 and 2018, respectively. Stock-Based Compensation We recognize stock-based compensation expense for all stock-based payments. Employee stock-based compensation cost is estimated at the grant date based on the fair value of the equity for financial reporting purposes and is recognized as expense over the requisite service period. Prior to our IPO, the fair value of our common stock for financial reporting purposes was determined considering objective and subjective factors and required judgment to determine the fair value of common stock for financial reporting purposes as of the date of each equity grant or modification. We calculate the fair value of options and purchase rights granted under the ESPP based on the Black-Scholes option-pricing model. The Black-Scholes model requires the use of various assumptions including expected term and expected stock price volatility. We estimate the expected term for stock options using the simplified method due to the lack of historical exercise activity. The simplified method calculates the expected term as the midpoint between the vesting date and the contractual expiration date of the award. The expected term for the ESPP purchase rights is estimated using the offering period, which is typically six months. We estimate volatility for options and ESPP purchase rights using volatilities of a group of public companies in a similar industry, stage of life cycle, and size. The interest rate is derived from government bonds with a similar term to the option or ESPP purchase right granted. We have not declared nor do we expect to declare dividends. Therefore, there is no dividend impact on the valuation of options or ESPP purchase rights. We use the straight-line method for employee expense attribution for stock options and ESPP purchase rights. We have granted RSUs to our employees and members of our board of directors under our 2008 Equity Incentive Plan (2008 Plan) and our 2017 Equity Incentive Plan (2017 Plan). RSUs granted generally vest upon the satisfaction of a service-based vesting condition only, which is typically satisfied pro-rata over a period of three In fiscal 2020, 2019 and 2018, stock-based compensation expense was recorded based on awards that were ultimately expected to vest, and such expense was reduced for forfeitures as they occurred. In fiscal 2017, stock-based compensation expense was recorded based on awards that were ultimately expected to vest, and such expense was reduced for estimated forfeitures. When estimating forfeitures, we considered voluntary termination behaviors as the trend in actual option forfeitures. We estimate the fair value of options and other equity awards granted to non-employees using the Black-Scholes method. Stock-based compensation expense is recognized over the vesting period on a straight-line basis. Income Taxes We account for income taxes under the liability method, whereby deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income. A valuation allowance is established when, in management’s estimate, it is more likely than not that the deferred tax asset will not be realized. Any liability related to uncertain tax positions is recorded on the financial statements within other liabilities. Penalties and interest expense related to income taxes, including uncertain tax positions, are classified as a component of provision for income taxes, as necessary. Net Loss Per Share We follow the two-class method when computing net loss per common share as we issue shares that meet the definition of participating securities. The two-class method determines net income (loss) per common share for each class of common stock and participating securities according to dividends declared or accumulated and participation rights in undistributed earnings. The two-class method requires income available to common stockholders for the period to be allocated between common stock and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. Prior to the automatic conversion into shares of common stock as a result of our IPO, our redeemable convertible preferred stock contractually entitled the holders of such shares to participate in dividends, but did not contractually require the holders of such shares to participate in our losses. Diluted net loss per share is the same as basic net loss per share in all periods, because potentially dilutive common shares are not assumed to have been issued if their effect is anti-dilutive. Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been or will be incurred and the amount of the liability can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. Recently Adopted Accounting Standards We adopted the following accounting standards in the first quarter of fiscal 2020: • ASU 2018-07, Compensation-Stock Compensation Improvements to Nonemployee Share-Based Payment Accounting (Topic 718) • ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income The adoption of the above listed accounting standards did not have a material impact on our consolidated financial statements for the year ended January 31, 2020. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes, which is intended to simplify various aspects related to accounting for income taxes. The standard is effective for annual reporting periods and interim periods within those years, beginning after December 15, 2020, with early adoption permitted. We have early adopted this standard in the fourth quarter of fiscal 2020 for our year ended January 31, 2020. The adoption of the new accounting standard had no material impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , as amended, which requires lessees to recognize lease liabilities and corresponding ROU assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. We adopted the new standard on February 1, 2019 using the modified retrospective transition approach by applying the standard to all leases existing at the date of initial application and not restating comparative periods. Under this transition method, the application date of the new standard begins in the reporting period in which we have adopted the standard. We have elected the package of practical expedients permitted under the transition guidance, which allowed us not to reassess (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases a |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Jan. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The following table reflects our contract liabilities balances (in thousands): As of January 31, 2020 2019 Deferred revenue, current $ 460,561 $ 390,965 Other contract liabilities, current 12,225 17,177 Deferred revenue, non-current 81,116 116,604 Other contract liabilities, non-current 810 1,296 Total contract liabilities $ 554,712 $ 526,042 Significant changes in the contract liabilities balances during the periods ended January 31, 2020 and 2019 are as follows (in thousands): Contract Liabilities February 1, 2018 $ 249,950 Performance obligations satisfied during the period that were included in the contract liability balance at the beginning of the period (228,167) Increases due to invoicing prior to satisfaction of performance obligations 270,759 Increases from a business combination 233,500 January 31, 2019 526,042 Performance obligations satisfied during the period that were included in the contract liability balance at the beginning of the period (407,004) Increases due to invoicing prior to satisfaction of performance obligations 435,674 January 31, 2020 $ 554,712 Remaining Performance Obligations The transaction price allocated to remaining performance obligations represents contracted revenue that has been billed but not recognized, and unbilled non-cancelable amounts that will be recognized as revenue in future periods. Transaction price allocated to the remaining performance obligation is influenced by several factors, including seasonality, the timing of renewals and average contract terms. During the year ended January 31, 2020, net revenue recognized from our remaining performance obligations satisfied in previous periods was not material and was primarily related to contract modifications. As of January 31, 2020, approximately $877.2 million of revenue is expected to be recognized from remaining performance obligations in the amount of approximately $585.2 million over the next 12 months and approximately $292.0 million thereafter. Other Practical Expedients |
Business Combination
Business Combination | 12 Months Ended |
Jan. 31, 2020 | |
Business Combinations [Abstract] | |
Business Combination | Business Combination On January 3, 2019, we acquired all outstanding stock of Hortonworks, a provider of enterprise-grade, global data management platforms, services and solutions for approximately $1.2 billion in consideration consisting of common stock and equity awards assumed. We have included the financial results of Hortonworks in our consolidated financial statements from the date of merger. The transaction costs associated with the merger were approximately $22.8 million, which were included in general and administrative expense in our consolidated statement of operations for the year ended January 31, 2019. The merger-date fair value of the consideration transferred for Hortonworks was approximately $1.2 billion, which consisted of the following (in thousands except for share data): Fair Value Common stock (111,304,700 shares) $ 1,154,230 Fair value of share-based compensation awards assumed 48,197 Total $ 1,202,427 The $1.2 billion fair value consideration transferred was determined based on $10.37 per share, the closing price of our stock on the closing date of the merger with Hortonworks (the Closing Date), for all shares of Hortonworks common stock outstanding immediately prior to the Closing Date. The fair value of the post share conversion of 4.1 million stock options, 0.9 million of performance restricted stock units and 9.0 million restricted stock units assumed was determined using the Black-Scholes option pricing model for stock option awards and observable market price of our common stock for valuation of performance and restricted share units. The share conversion ratio of 1.305 was applied to convert Hortonworks’ outstanding equity awards for Hortonworks’ common stock into equity awards for shares of our common stock. Further, we assumed stock-based awards with a total fair value of $63.5 million, which will be recognized as stock-based compensation expense over a weighted-average period of 1.5 years from the Closing Date. Additionally, we recognized $13.1 million of additional stock-based compensation expense during the year ended January 31, 2019 due to the acceleration and modification of certain stock awards assumed as part of our merger with Hortonworks. The following table summarizes the fair values of assets acquired and liabilities assumed as of the Closing Date (in thousands): Fair Value Cash and cash equivalents $ 40,886 Marketable securities, current 8,103 Accounts receivable, net 165,958 Prepaid expenses and other assets 23,512 Property and equipment, net 8,091 Intangible assets 682,600 Accounts payable (2,888) Accrued compensation (31,007) Other accrued liabilities and long-term liabilities (12,163) Deferred revenue (233,500) Total net assets acquired and liabilities assumed $ 649,592 The $552.8 million excess of purchase consideration over the fair value of total net assets acquired and liabilities assumed was recorded as goodwill. Goodwill of $525.2 million and $27.6 million was allocated to our subscription and services segments, respectively, based on the forecasted post-merger financial results of the subscription and services segments. The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the Closing Date: Fair Value Estimated Useful Life (in thousands) (in years) Unbilled contracts $ 18,300 2 Customer relationships 661,600 10 Trade names 2,700 1 Total identified intangible assets $ 682,600 Unbilled contracts represent the fair value of Hortonworks’ customer contracts that had yet to be billed as of the Closing Date. Customer relationships represent the fair value of the underlying relationships with Hortonworks’ customers. Trade names represent Hortonworks’ trademarks, which consumers associate with the source and quality of Hortonworks’ products and services. The estimated fair values of the intangible assets acquired were determined based on a combination of the income and market approaches to measure the fair value of unbilled contracts, customer relationships, and trade names. The fair value of unbilled contracts and customer relationships was measured based on the income approach, specifically the multi-period excess earnings method. The fair value of the trade names was determined using the relief-from-royalty method. The estimated remaining useful life of the customer relationships intangible is approximately 10 years, which approximates the mean and median of a benchmarking dataset from similar mergers or acquisitions over the last 7 years, focusing on transactions where customer relationships is the primary asset of the transaction. The estimated remaining useful life of unbilled contracts is based on the period over which the support and services are expected to be rendered and the estimated remaining useful life of trade names is based on our expected time frame to phase out the Hortonworks trade names. The goodwill balance of $552.8 million is attributable to the expansion of our product offerings and expected synergies of the combined workforce, products and technologies with Hortonworks. The goodwill balance is not deductible for U.S. income tax purposes. The amounts of revenue and net loss of Hortonworks included in our results from the transaction date of January 3, 2019 through January 31, 2019 are as follows (in thousands): 29 Days Ended January 31, Revenue $ 19,597 Net loss (9,226) |
Cash Equivalents and Marketable
Cash Equivalents and Marketable Securities | 12 Months Ended |
Jan. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Cash Equivalents and Marketable Securities | Cash Equivalents and Marketable Securities The following are the fair values of our cash equivalents and marketable securities as of January 31, 2020 (in thousands): Amortized Unrealized Unrealized Estimated Cash equivalents: Money market funds $ 34,596 $ — $ — $ 34,596 Marketable securities: Asset-backed securities 68,194 235 — 68,429 Corporate notes and obligations 199,226 891 — 200,117 Commercial paper 46,460 7 — 46,467 Municipal securities 20,865 65 — 20,930 Certificates of deposit 14,996 19 — 15,015 U.S. treasury securities 24,563 33 — 24,596 Total cash equivalents and marketable securities $ 408,900 $ 1,250 $ — $ 410,150 The following are the fair values of our cash equivalents and marketable securities as of January 31, 2019 (in thousands): Amortized Unrealized Unrealized Estimated Cash equivalents: Money market funds $ 29,966 $ — $ — $ 29,966 Commercial paper 9,157 1 — 9,158 Certificates of deposit 3,999 1 — 4,000 Reverse repurchase agreements 5,000 — — 5,000 Marketable securities: Asset-backed securities 63,626 16 (57) 63,585 Corporate notes and obligations 140,710 136 (111) 140,735 Commercial paper 101,712 9 (1) 101,720 Certificates of deposit 46,551 21 (1) 46,571 U.S. treasury securities 21,949 — (14) 21,935 Foreign government obligations 4,000 — — 4,000 Total cash equivalents and marketable securities $ 426,670 $ 184 $ (184) $ 426,670 Maturities of our noncurrent marketable securities generally range from one year to three years at both January 31, 2020 and 2019. The contractual maturities of investments in available-for-sale securities were as follows (in thousands): January 31, 2020 January 31, 2019 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due within one year $ 273,582 $ 274,058 $ 380,461 $ 380,335 Due after one year through five years 135,318 136,092 46,209 46,335 Total investments in marketable securities $ 408,900 $ 410,150 $ 426,670 $ 426,670 The unrealized loss for each of these fixed rate marketable securities was not material as of January 31, 2020 and 2019. We do not believe any of the unrealized losses represent an other-than-temporary impairment based on our evaluation of available evidence as of January 31, 2020 and 2019. We expect to receive the full principal and interest on all of these marketable securities and have the ability and intent to hold these investments until a recovery of fair value. Realized gains and realized losses on our cash equivalents and marketable securities are included in other income (expense), net on the consolidated statement of operations and were not material for the years ended January 31, 2020, 2019 and 2018. Reclassification adjustments out of accumulated other comprehensive loss into net loss were not material for the years ended January 31, 2020 and 2019. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Jan. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement Our financial assets and liabilities consist principally of cash and cash equivalents, marketable securities, restricted cash, accounts receivable, and accounts payable. We measure and record certain financial assets and liabilities at fair value on a recurring basis. The estimated fair value of accounts receivable and accounts payable approximates their carrying value due to their short-term nature. Cash equivalents, marketable securities and restricted cash are recorded at estimated fair value. All of our cash equivalents and marketable securities are classified within Level 1 or Level 2 because the cash equivalents and marketable securities are valued using quoted market prices or alternative pricing sources and models utilizing observable market inputs. We follow a three-level valuation hierarchy for disclosure of fair value measurements as follows: Level 1 Inputs are unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 Inputs (other than quoted market prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level 3 Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. Assets Measured at Fair Value on a recurring Basis The following table represents our financial assets according to the fair value hierarchy, measured at fair value as of January 31, 2020 (in thousands): Level 1 Level 2 Total Cash equivalents: Money market funds $ 34,596 $ — $ 34,596 Marketable securities: Asset-backed securities — 68,429 68,429 Corporate notes and obligations — 200,117 200,117 Commercial paper — 46,467 46,467 Municipal securities — 20,930 20,930 Certificates of deposit — 15,015 15,015 U.S. treasury securities — 24,596 24,596 Total financial assets $ 34,596 $ 375,554 $ 410,150 The following table represents our financial assets according to the fair value hierarchy, measured at fair value as of January 31, 2019 (in thousands): Level 1 Level 2 Total Cash equivalents: Money market funds $ 29,966 $ — $ 29,966 Commercial paper — 9,158 9,158 Reverse repurchase agreements — 5,000 5,000 Certificates of deposits — 4,000 4,000 Marketable securities: Asset-backed securities — 63,585 63,585 Corporate notes and obligations — 140,735 140,735 Commercial paper — 101,720 101,720 Certificates of deposit — 46,571 46,571 U.S. treasury securities 14,950 6,985 21,935 Foreign government obligations — 4,000 4,000 Total financial assets $ 44,916 $ 381,754 $ 426,670 We value our Level 1 assets using quoted prices in active markets for identical instruments. We value our Level 2 assets with the help of a third-party pricing service using quoted market prices for similar instruments, nonbinding market prices that are corroborated by observable market data, or pricing models such as discounted cash flow techniques. We use such pricing data as the primary input, to which we have not made any material adjustments during the periods presented, to make our determination and assessments as to the ultimate valuation of these assets. We have no Level 1, 2 or 3 liabilities and no Level 3 assets. There were no transfers between Level 1 and Level 2 assets for the years ended January 31, 2020 and 2019. Assets Measured at Fair Value on a Nonrecurring Basis Certain of our assets, including intangible assets and goodwill, are measured at fair value on a nonrecurring basis, when they are deemed to be other-than temporarily impaired. There were no impairment charges recognized during the years ended January 31, 2020, 2019 and 2018. |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Jan. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Components | Balance Sheet Components Property and Equipment, Net The cost and accumulated depreciation and amortization of property and equipment are as follows (in thousands): As of January 31, 2020 2019 Computer equipment and software $ 22,489 $ 18,259 Office furniture and equipment 12,672 11,907 Leasehold improvements 24,236 24,316 Property and equipment, gross 59,397 54,482 Less: accumulated depreciation and amortization (37,409) (26,863) Property and equipment, net $ 21,988 $ 27,619 Depreciation expense was $12.1 million, $8.3 million and $8.4 million for the years ended January 31, 2020, 2019 and 2018, respectively. Intangible Assets Intangible assets consisted of the following as of January 31, 2020 (in thousands): Gross Fair Accumulated Net Book Weighted Average Developed technology $ 17,570 $ (11,321) $ 6,249 2.0 Customer relationships and other acquired intangible assets 671,447 (80,847) 590,600 8.9 Unbilled contracts 18,300 (9,913) 8,387 0.9 Total $ 707,317 $ (102,081) $ 605,236 8.7 Intangible assets consisted of the following as of January 31, 2019 (in thousands): Gross Fair Accumulated Net Book Weighted Average Developed technology $ 11,986 $ (9,258) $ 2,728 1.9 Customer relationships and other acquired intangible assets 671,097 (12,036) 659,061 9.9 Unbilled contracts 18,300 (763) 17,537 1.9 Total $ 701,383 $ (22,057) $ 679,326 9.6 Amortization expense for intangible assets was $80.0 million, $9.1 million and $3.7 million during the years ended January 31, 2020, 2019 and 2018, respectively. The significant increase in fiscal 2020 relates to the amortization of intangible assets recognized as part of our merger with Hortonworks in January 2019. The expected future amortization expense of these intangible assets as of January 31, 2020 is as follows (in thousands): 2021 $ 77,941 2022 69,074 2023 66,722 2024 66,211 2025 66,160 2026 and thereafter 259,128 Total amortization expense $ 605,236 Goodwill The following table represents the changes to goodwill (in thousands): Balance at January 31, 2018 $ 33,621 Hortonworks merger 552,835 Balance at January 31, 2019 586,456 Other (1) 3,905 Balance at January 31, 2020 $ 590,361 (1) Other consists of certain purchase accounting adjustments related to our merger with Hortonworks and to a business combination. Accrued Compensation Accrued compensation consists of the following (in thousands): As of January 31, 2020 2019 Accrued salaries, benefits and commissions $ 27,067 $ 20,563 Accrued compensation-related taxes 15,205 11,797 Accrued bonuses 13,409 14,832 Employee stock purchase plan withholdings 2,732 1,902 Other 3,413 4,496 Total accrued compensation $ 61,826 $ 53,590 Other Accrued Liabilities Other accrued liabilities consist of the following (in thousands): As of January 31, 2020 2019 Accrued professional costs $ 6,182 $ 6,500 Accrued taxes 5,164 3,731 Accrued travel 1,574 2,751 Other (1) 9,377 11,566 Total other accrued liabilities $ 22,297 $ 24,548 (1) Other includes amounts owed to third-party vendors that provide marketing, corporate event planning, cloud-computing services, self-insurance costs and amounts due for the settlement of certain marketable securities. |
Leases
Leases | 12 Months Ended |
Jan. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases We have entered into various non-cancelable operating lease agreements for our facilities. Our leases have various expiration dates through September 2031. Many leases include one or more options to renew. We do not assume renewals in our determination of the lease term unless the renewals are deemed to be reasonably assured at lease commencement. As described within Note 2 , we adopted ASU 2016-02, Leases , as of February 1, 2019, which requires, among other changes, operating leases with terms exceeding twelve months to be recognized as ROU assets and lease liabilities on the consolidated balance sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The lease term is determined to be the non-cancelable period including any lessee renewal options which are considered to be reasonably certain of exercise. The interest rate implicit in the lease contracts is typically not readily determinable. As such, we utilized the appropriate incremental borrowing rate based on information available at the commencement date, which is the rate incurred to borrow on a collateralized basis over a similar term in a similar economic environment. Components of lease expense are summarized as follows (in thousands): Twelve Months Ended January 31, 2020 Operating lease cost $ 45,640 Short-term lease cost 2,276 Sublease income (15,730) Net lease cost $ 32,186 Lease term and discount rate information are summarized as follows: As of January 31, 2020 Weighted Average Remaining Lease Term (years) 6.8 Weighted Average Discount Rate 6 % Maturities of lease liabilities as of January 31, 2020 are as follows (in thousands): Minimum Lease Payments, Gross 2021 $ 30,038 2022 39,497 2023 35,823 2024 36,453 2025 35,617 2026 and thereafter 83,646 Total lease payments $ 261,074 Less imputed interest (49,569) Present value of lease liabilities $ 211,505 We expect to receive $31.3 million of sublease rental proceeds in the next five years as of January 31, 2020. As of January 31, 2019, prior to the adoption of Topic 842, future minimum lease payments under non-cancelable operating leases was as follows (in thousands): Minimum Lease Payments, Gross 2020 $ 42,293 2021 41,475 2022 37,172 2023 34,249 2024 35,190 2025 and thereafter 115,481 Total minimum lease payments $ 305,860 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Letters of Credit As of January 31, 2020 and 2019, we had a total of $19.9 million and $20.0 million, respectively, in letters of credit outstanding in favor of certain landlords for office space. These letters of credit renew annually and expire at various dates through 2027. Legal Proceedings On June 7, 2019, a purported class action complaint was filed in the United States District Court for the Northern District of California, entitled Christie v. Cloudera, Inc., et al ., Case No. 5:19-cv-3221-LHK. The complaint named as defendants Cloudera, its former Chief Executive Officer, its Chief Financial Officer and a former officer and director, asserting alleged class claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (Exchange Act) and SEC Rule 10b-5. Two substantially similar class action complaints, entitled Zarantonello v. Cloudera, Inc., et al ., Case No. 5:19-cv-4007-LHK, and Dvornic v. Cloudera, Inc., et al ., Case No. 5:19-cv-4310-LHK, were subsequently filed against the same defendants in the same court on July 12, 2019 and July 26, 2019, respectively. The suits have been consolidated under the name, In re Cloudera, Inc. Securities Litigation, Case No. 5:19-cv-3221-LHK. The court subsequently appointed lead plaintiffs and lead counsel, and a consolidated amended complaint was filed on February 14, 2020. The consolidated amended complaint asserts claims against the Company and three individual defendants under Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5, based on allegedly false and misleading statements between April 28, 2017 and June 5, 2019. It also adds as defendants ten current or former directors or officers of the Company and Intel Corporation and asserts claims under Sections 11, 12(a)(2) and 15 of the Securities Act of 1933, on behalf of all persons who acquired Cloudera stock pursuant or traceable to the S-4 registration statement filed in connection with Cloudera’s January 2019 merger with Hortonworks, and alleging that the registration statement contained untrue statements of material fact and omitted material facts. The complaint seeks, among other things, an award of damages and attorneys’ fees and costs. On March 18, 2020, the court vacated its prior order appointing lead plaintiffs and lead counsel and reopened the lead plaintiff process. Cloudera believes that the allegations in the action are without merit. On June 7, 2019, a purported class action complaint was filed in the Superior Court of California, County of Santa Clara, entitled Lazard v. Cloudera, Inc., et al ., Case No. 19CV348674. The complaint named as defendants Cloudera, thirteen individuals who are current or former directors or officers of the Company, and Intel Corporation. The complaint alleged that the registration statement contained untrue statements of material fact and omitted material facts. Two substantially similar suits, entitled Franchi v. Cloudera, Inc., et a l., Case No. 19CV348790, and Cannizzo v. Cloudera, Inc ., et al., Case No. 19CV348974, were subsequently filed in the same court on June 11, 2019 and June 14, 2019, respectively. The suits have been consolidated under the name In re Cloudera, Inc. Securities Litigation , and the consolidated amended complaint purports to assert claims under Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 on behalf of all persons who acquired Cloudera stock pursuant or traceable to the S-4 registration statement filed in connection with Cloudera’s January 2019 merger with Hortonworks, and alleges that the registration statement contained untrue statements of material fact and omitted material facts. Plaintiffs seek, among other things, an award of damages and attorneys’ fees and costs. Cloudera believes that the allegations in the lawsuits are without merit. On July 30, 2019, a purported shareholder derivative complaint was filed in the United States District Court for the District of Delaware, entitled Lee, et al. v. Cole, et al ., Case No. 1:19-cv-01422-LPS. The complaint names as defendants eleven individuals who are current or former directors or officers of the Company, names the Company as a nominal defendant, and purports to assert claims on the Company’s behalf against the individual defendants for breach of fiduciary duty, unjust enrichment, and alleged violation of Sections 10(b) and 20(a) of the Exchange Act. On September 5, 2019, a purported shareholder derivative complaint was filed in the United States District Court for the District of Delaware, entitled Slattery v. Reilly, et al., Case No. 1:19-cv-01662-LPS. The complaint names as defendants thirteen individuals who are current or former directors or officers of the Company, names the Company as a nominal defendant, and purports to assert claims on the Company’s behalf against the individual defendants for breach of fiduciary duty, unjust enrichment, and alleged violations of Section 10(b), 14 and 20(a) of the Exchange Act. On October 16, 2019, a purported shareholder derivative complaint was filed in the United States District Court for the District of Delaware, entitled Frentzel v. Bearden, et al ., Case No. 1:19-cv-01962-LPS. The complaint names as defendants thirteen individuals who are current or former directors or officers of the Company, and names the Company as a nominal defendant, and purports to assert claims on the Company’s behalf against the individual defendants for breach of fiduciary duty, alleged violations of Section 14 of the Exchange Act, insider selling and misappropriation of information. All three derivative actions are based on allegations that are substantially similar to those in the class actions filed in the United States District Court for the Northern District of California, described above. All three derivative actions seek, among other things, an award of damages on behalf of the Company, corporate governance reforms and attorneys’ fees and costs. The Slattery and Frentzel actions additionally seek disgorgement on behalf of the Company. The suits have been consolidated under the name, In re Cloudera, Inc. Stockholder Derivative Litigation , Case No. 1:19-cv-01422-LPS. A consolidated amended complaint has not yet been filed. On September 3, 2019, a purported shareholder derivative complaint was filed in the United States District Court for the Northern District of California, entitled Chen v. Reilly, et al ., Case No. 5:19-cv-05536-LHK. That complaint names as defendants thirteen individuals who are current or former directors or officers of the Company, names the Company as a nominal defendant, and action purports to assert claims on the Company’s behalf against the individual defendants for breach of fiduciary duty, unjust enrichment, waste of corporate assets, and alleged violation of Section 14(a) of the Exchange Act. On September 10, 2019, a purported shareholder derivative complaint that is substantially similar to the Chen action and is brought against the same defendants, was filed in the United States District Court for the Northern District of California, entitled Fu v. Reilly, et al ., Case No. 5:19-cv-05705-LHK. Both derivative actions are based on allegations that are substantially similar to those in the class actions filed in the United States District Court for the Northern District of California, described above. Both derivative actions seek, among other things, an award of damages on behalf of the Company, corporate governance reforms and attorneys’ fees and costs. The suits have been consolidated under the name, In re Cloudera, Inc. Derivative Litigation , Case No. 5:19-cv-05536-LHK. A consolidated amended complaint has not yet been filed and the case is currently stayed. In the ordinary course of business, we are or may be involved in a variety of litigation matters, suits, investigations, and proceedings, including actions with respect to intellectual property claims, government investigations, labor and employment claims, breach of contract claims, tax, and other matters. Regardless of the outcome, these litigation matters can have an adverse impact on us because of defense costs, diversion of management resources, harm to reputation, and other factors. Future litigation may be necessary to defend ourselves, or our customers or partners on indemnity matters, by determining the scope, enforceability and validity of third-party proprietary rights or by establishing our proprietary rights. Further, the ultimate outcome of any litigation is uncertain and, regardless of outcome, litigation can have an adverse impact on us because of defense costs, potential negative publicity, diversion of management resources and other factors. While we are not aware of other pending legal matters or claims, individually or in the aggregate, that are expected to have a material adverse impact on our business, consolidated financial position, results of operations or cash flows, our analysis of whether a claim may proceed to litigation cannot be predicted with certainty, nor can the results of litigation be predicted with certainty. Accordingly, there can be no assurance that existing or future legal proceedings arising in the ordinary course of business or otherwise will not have a material adverse effect on our business, consolidated financial position, results of operations or cash flows in a particular period or subject us to an injunction that could seriously harm our business. We record a provision for contingent losses when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. With respect to our outstanding legal matters, our management believes that the amount or estimable range of possible loss will not, either individually or in the aggregate, have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows. However, the outcome of litigation is inherently uncertain. Therefore, if one or more of these legal matters were resolved against us for amounts in excess of management’s expectations, our results of operations and financial condition including in a particular reporting period, could be materially adversely affected. Indemnification From time to time, we enter into certain types of contracts that contingently require us to indemnify various parties against claims from third parties. These contracts primarily relate to (i) certain real estate leases under which we may be required to indemnify property owners for environmental and other liabilities and other claims arising from our use of the applicable premises, (ii) our amended and restated bylaws, under which we must indemnify directors and executive officers, and may indemnify other officers and employees, for liabilities arising out of their relationship with us, (iii) contracts under which we must indemnify directors and certain officers for liabilities arising out of their relationship with us, (iv) contracts under which we may be required to indemnify customers or partners against certain claims, including claims from third parties asserting, among other things, infringement of their intellectual property rights, and (v) procurement, consulting, or license agreements under which we may be required to indemnify vendors, consultants or licensors for certain claims, including claims that may be brought against them arising from our acts or omissions with respect to the supplied products, technology or services. From time to time, we may receive indemnification claims under these contracts in the normal course of business. In addition, under these contracts we may have to modify the accused infringing intellectual property and/or refund amounts received. In the event that one or more of these matters were to result in a claim against us, an adverse outcome, including a judgment or settlement, may cause a material adverse effect on our future business, operating results or financial condition. It is not possible to determine the maximum potential amount under these contracts due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. We maintain director and officer insurance, which may cover certain liabilities arising from our obligation to indemnify our directors and certain officers. To date, we have not incurred any material costs, and have not accrued any liabilities in the consolidated financial statements as a result of these provisions. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Jan. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation We maintain two stock-based compensation plans: the 2017 Equity Incentive Plan (2017 Plan), and the 2008 Equity Incentive Plan (2008 Plan), collectively referred to as the Stock Plans. We do not expect to grant any additional awards under the 2008 Plan. Outstanding awards under the 2008 Plan continue to be subject to the terms and conditions of the 2008 Plan. When we adopted the 2017 Plan in March 2017, we reserved 30,000,000 shares of our common stock for issuance, plus an additional number of shares of common stock equal to any shares reserved but not issued or subject to outstanding awards under our 2008 Plan on the effective date of our 2017 Plan, plus, on and after the effective date of our 2017 Plan, (i) shares that are subject to outstanding awards under the 2008 Plan which cease to be subject to such awards, (ii) shares issued under the 2008 Plan which are forfeited or repurchased at their original issue price, and (iii) shares subject to awards under the 2008 Plan that are used to pay the exercise price of an option or withheld to satisfy the tax withholding obligations related to any award. The number of shares reserved for issuance under our 2017 Plan will increase automatically on the first day of February of each calendar year during the term of the 2017 Plan by a number of shares of common stock equal to the lesser of (i) 5% of the total outstanding shares of our common stock as of the immediately preceding January 31 or (ii) a number of shares determined by our board of directors. On February 1, 2020, 14,758,388 additional shares were authorized for issuance by the board of directors. As of January 31, 2020, there wer e 13,269,006 shares of common stock reserved and available for future issuance under the Stock Plans. As a result of the Hortonworks merger, a total fair value of the stock-based awards assumed was $63.5 million, which is being recognized as stock-based compensation expense over a weighted-average period of 1.5 years from the Closing Date. Additionally, we recognized $13.1 million of stock-based compensation expense during the year ended January 31, 2019 due to the acceleration and modification of certain employee awards assumed as part of the Hortonworks merger. During the years ended January 31, 2020 and 2019, w e incurred approximately $20.9 million and $6.2 million, respectively, of additional stock-based compensation expense related to the acceleration and modification of stock awards held by certain former employees and former board members. Stock Options Stock options granted generally have a maximum term of ten years from the grant date, are exercisable upon vesting unless otherwise designated for early exercise by the board of directors at the time of grant, and generally vest over a period of three four two three The following table summarizes stock option activity and related information under the Stock Plans: Options Outstanding Options Weighted- Weighted-Average Remaining Aggregate Balance — January 31, 2019 19,117,696 $ 5.83 4.3 $ 154,431 Exercised (4,395,673) 2.88 — — Canceled (1,191,660) 15.25 — — Balance — January 31, 2020 13,530,363 $ 5.96 2.1 $ 70,057 Exercisable— January 31, 2020 13,478,227 $ 5.91 2.0 $ 70,057 Vested and Expected to Vest — January 31, 2020 13,530,363 $ 5.96 2.1 $ 70,057 The total intrinsic value of options exercised during the years ended January 31, 2020, 2019 and 2018 was $26.2 million, $31.2 million and $64.1 million, respectively. The intrinsic value is the difference between the current fair market value of the stock for accounting purposes at the time of exercise and the exercise price of the stock option. As we have accumulated net operating losses, no future tax benefit related to option exercises has been recognized. The total grant-date fair value of stock options vested during the years ended January 31, 2020, 2019 and 2018 was $1.6 million, $27.9 million and $15.2 million, respectively. The weighted-average grant-date fair value of employee options granted during the years ended January 31, 2019 and 2018 was $4.58 and $8.67 per share, respectively. There were no options granted during the year ended January 31, 2020. The fair value of each stock option grant was estimated at the grant date using the Black-Scholes option-pricing model with the following weighted-average assumptions: Years Ended January 31, 2019 2018 Volatility 45.0% 45.3% Risk-free interest rate 2.5% 2.0% Expected term (in years) 5.0 years 6.1 years Expected dividends —% —% The unamortized stock-based compensation expense for options of $0.3 million at January 31, 2020 will be recognized over the average remaining vesting period of 0.80 years. Restricted Stock Units We issue RSUs to employees and directors under the Stock Plans. Prior to our IPO in May 2017, the employee RSUs vested upon the satisfaction of both a service-based vesting condition and a liquidity event-related performance vesting condition. RSUs granted subsequent to our IPO vest upon the satisfaction of a service-based vesting condition only. The service-based condition for the majority of these awards is generally satisfied pro-rata over four years. For new employee grants, the RSUs generally meet the service-based condition over a four one three four The liquidity event-related performance condition is satisfied upon the occurrence of a qualifying liquidity event, such as the effective date of an IPO, or six months following the effective date of an IPO. During the quarter ended April 30, 2017, the majority of RSUs were modified such that the liquidity event-related performance condition is satisfied upon the effective date of an IPO, rather than six months following an IPO. The modification established a new measurement date for these modified RSUs. The liquidity event-related performance condition is viewed as a performance-based criterion for which the achievement of such liquidity event is not deemed probable for accounting purposes until the event occurs. The liquidity event-related performance condition was achieved for the majority of our RSUs and became probable of being achieved for the remaining RSUs on April 27, 2017, the effective date of our IPO. We recognized stock-based compensation expense using the accelerated attribution method with a cumulative catch-up of stock-based compensation expense in the amount of $181.5 million in fiscal 2018, attributable to service prior to such effective date. The f ollowing table summarizes RSU activity and related information under the Stock Plans: RSUs Outstanding Number of RSUs Weighted-Average Grant Date Fair Value Per Share Balance —January 31, 2019 35,058,103 $ 13.25 Granted 36,075,434 8.96 Canceled (9,276,310) 12.49 Vested and converted to shares (23,273,233) 11.15 Balance —January 31, 2020 38,583,994 $ 10.85 The weighted-average grant date fair value of RSUs granted during the years ended January 31, 2020, 2019 and 2018 was $8.96, $12.08 and $16.93 per share, respectively. The total fair value of RSUs vested during the years ended January 31, 2020, 2019 and 2018 was $218.3 million, $128.7 million, and $166.7 million, respectively. The unamortized stock-based compensation expense for RSUs was $366.6 million as of January 31, 2020 and will be recognized over the average remaining vesting period of 2.2 years. Employee Stock Purchase Plan Our ESPP is intended to qualify as an employee stock purchase plan under Section 423 of the United States Internal Revenue Code of 1986, as amended (Code). Purchases will be accomplished through participation in discrete offering periods. Each offering period consists of a six Under our ESPP, eligible employees will be able to acquire shares of our common stock by accumulating funds through payroll deductions. Our employees generally are eligible to participate in our ESPP if they are employed by us for at least 20 hours per week and more than five We initially reserved 3,000,000 shares of our common stock for issuance under our ESPP. The number of shares reserved for issuance under our ESPP increases automatically on February 1 of each of the first 10 calendar years following the first offering date by the number of shares equal to the lesser of (i) 1% of the total outstanding shares of our common stock as of the immediately preceding January 31 (rounded to the nearest whole share) or (ii) a number of shares of our common stock determined by our board of directors. On February 1, 2020, 2,951,677 additional shares were authorized for issuance by the board of directors. As of January 31, 2020, the total number of shares available for grant under the ESPP was 2,905,694 shares. As of January 31, 2020, $2.7 million was withheld on behalf of employees for a future purchase under the ESPP and is recorded in accrued compensation in our consolidated balance sheets. See Note 7 for additional information. The fair value of each ESPP grant was estimated at the grant date using the Black-Scholes option-pricing model with the following weighted-average assumptions: Years Ended January 31, 2020 2019 2018 Volatility 31.9% 38.8% 32.9% Risk-free interest rate 1.9% 2.4% 1.2% Expected term (in years) 0.5 years 0.5 years 0.6 years Expected dividends —% —% —% |
Income taxes
Income taxes | 12 Months Ended |
Jan. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The domestic and foreign components of loss before provision for income taxes consisted of the following (in thousands): Years Ended January 31, 2020 2019 2018 Domestic $ (340,542) $ (191,479) $ (372,466) Foreign 12,660 4,248 4,873 Net loss before provision for income taxes $ (327,882) $ (187,231) $ (367,593) The components of provision for income taxes are as follows (in thousands): Years Ended January 31, 2020 2019 2018 Current: Federal $ — $ — $ — State (18) (106) (112) Foreign (8,766) (5,371) (3,097) Total (8,784) (5,477) (3,209) Deferred: Federal — — 917 State — — — Foreign 84 59 213 Total 84 59 1,130 Total provision for income taxes $ (8,700) $ (5,418) $ (2,079) A reconciliation of income taxes at the statutory federal income tax rate to the provision for income taxes included in the consolidated statements of operations is as follows (in thousands): Years Ended January 31, 2020 2019 2018 U.S. federal statutory income tax $ 68,856 $ 39,318 $ 124,287 Research tax credits 6,120 10,044 7,976 Stock-based compensation (6,395) (3,004) (5,124) Change in valuation allowance 8,566 (42,450) 2,907 Foreign tax rate differential (6,384) (4,945) — Legal expenses — (4,000) — Federal tax rate change — — (132,387) Global intangible low-taxed income (3,668) — — Non-deductible compensation (1,150) — — Change in U.S. tax status of foreign entities (72,449) — — Other (2,196) (381) 262 Provision for income taxes $ (8,700) $ (5,418) $ (2,079) The deferred tax assets and liabilities were as follows (in thousands): As of January 31, 2020 2019 Deferred tax assets: Accruals and reserves $ 7,948 $ 13,753 Deferred revenue 28,621 — Net operating loss carryforwards 475,390 430,220 Research and development credits and other credits 75,168 62,869 Stock-based compensation 18,428 30,946 ROU assets/lease liability 53,048 — Gross deferred tax assets 658,603 537,788 Less valuation allowance (459,649) (454,278) Total deferred tax assets, net of valuation allowance 198,954 83,510 Deferred tax liabilities: Depreciation and amortization (128,825) (61,285) Deferred revenue — (5,026) ROU assets/lease liability (48,085) — Deferred costs (21,609) (16,768) Gross deferred tax liabilities (198,519) (83,079) Net deferred tax assets $ 435 $ 431 Undistributed earnings of our foreign subsidiaries at January 31, 2020 are considered to be indefinitely reinvested and, accordingly, no provision for federal and state income taxes has been provided thereon. Due to the Transition Tax and Global Intangible Low-Tax Income (GILTI) regimes as enacted by the U.S. Tax Cuts and Jobs Act of 2017 (Tax Act), those foreign earnings will not be subject to federal income taxes when actually distributed in the form of a dividend or otherwise. However, we could still be subject to state income taxes and withholding taxes payable to various foreign countries. The amounts of taxes which we could be subject to are not material to the accompanying financial statements. In January 2018, the FASB released guidance on the accounting for tax on the GILTI provision of the Tax Act. The GILTI provision imposes a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance indicates that either accounting for deferred taxes related to GILTI inclusions or treating any taxes on GILTI inclusions as a period cost are both acceptable methods subject to an accounting policy election. We have elected to treat any taxes on GILTI inclusions as a period cost. A valuation allowance is provided when it is more likely than not that the deferred tax assets will not be realized. We have established a valuation allowance to offset deferred tax assets at January 31, 2020 and 2019 due to the uncertainty of realizing future tax benefits from our net operating loss carryforwards and other deferred tax assets. The net change in the total valuation allowance for the years ended January 31, 2020 and 2019 was an increase of approximately $5.4 million and $182.9 million, respectively. At January 31, 2020, we have federal, California and other state net operating loss carryforwards of approximately $1.9 billion, $528.7 million and $682.1 million, respectively, expiring beginning fiscal 2028, for federal and California purposes and fiscal 2020 for other states’ purposes. At January 31, 2020, we have federal and state research credit carryforwards of approximately $56.9 million and $46.7 million, respectively, expiring beginning in fiscal 2029 for federal purposes. The state credits can be carried forward indefinitely. Federal and state tax laws may impose substantial restrictions on the utilization of the net operating loss and credit carryforward attributes in the event of an ownership change as defined in Section 382 and Section 383 of the Internal Revenue Code. Accordingly, our ability to utilize these carryforwards may be limited as a result of such ownership changes. Such a limitation could result in the expiration of our net operating loss and credit carryforwards before they are utilized. We have performed an analysis to determine whether an ownership change has occurred since inception. The analysis identified several historical ownership changes; however, the limitations did not result in a material restriction on the use of our carryforwards. In the event we experience any subsequent changes in ownership, the availability of our carryforwards in any taxable year could change. For benefits to be recorded, a tax position must be more likely than not to be sustained upon examination. The amount recognized is measured as the largest amount of benefit that is greate r than 50% likely of being realized upon settle ment. The following table reflects the changes in the gross unrecognized tax benefits (in thousands): Years Ended January 31, 2020 2019 2018 Balance as of beginning of year $ 18,600 $ 11,700 $ 9,600 Tax positions taken in prior period: Gross increases 600 — — Tax positions taken in current period: Gross decreases — (1,000) — Gross increases (1) 5,200 7,900 2,100 Balance as of end of year $ 24,400 $ 18,600 $ 11,700 (1) Includes $7.4 million from the Hortonworks merger for fiscal year 2019. As of January 31, 2020, the total amount of gross unrecognized tax benefits was $24.4 million, of whic h $1.6 million, if recognized, would impact our effective tax rate. We recognize interest and penalties related to income tax matters in the provision for income taxes. As of January 31, 2020, we had no accrued interest and penalties related to uncertain tax positions. We are subject to taxes in the United States and other foreign jurisdictions. In the normal course of business, we are subject to examination by various federal, state and local taxing authorities. We are not currently under audit by the Internal Revenue Service or any other tax authority. All tax years remain open to examination by major taxing jurisdictions in which we file returns. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jan. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Certain members of our board of directors currently serve on the board of directors or as an executive of certain companies that are our customers. The aggregate revenue we recognized from these customers was $16.2 million, $21.2 million and $19.6 million for the years ended January 31, 2020, 2019 and 2018, respectively. There was $1.2 million and $2.5 million in accounts receivable due from these customers as of January 31, 2020 and 2019, respectively. |
Segment Information
Segment Information | 12 Months Ended |
Jan. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information In January 2019, we completed our merger with Hortonworks. The combined company operates under the Cloudera name. We have integrated Hortonworks into our ongoing business operations and our chief operating decision maker, our chief executive officer, evaluates our financial information and resources and assesses the performance of these resources on a consolidated basis. The results of the reportable segments are derived directly from our management reporting system and are based on our methods of internal reporting which are not necessarily in conformity with GAAP. Our management measures the performance of each segment based on several metrics, including contribution margin, as defined below. Our management does not use asset information to assess performance and make decisions regarding allocation of resources. Therefore, depreciation and amortization expense are not allocated among segments. Contribution margin is used, in part, to evaluate the performance of, and allocate resources to, each of the segments. Segment contribution margin includes segment revenue less the related cost of sales excluding certain operating expenses that are not allocated to segments because they are separately managed at the consolidated corporate level. These unallocated costs include stock-based compensation expense, amortization of certain acquired intangible assets, direct sales and marketing costs, research and development costs, corporate general and administrative costs, such as legal and accounting, interest income, interest expense, and other income and expense. Financial information for each reportable segment was as follows (in thousands): Years Ended January 31, 2020 2019 2018 Revenue: Subscription $ 667,826 $ 406,333 $ 302,617 Services 126,365 73,608 69,676 Total revenue $ 794,191 $ 479,941 $ 372,293 Years Ended January 31, 2020 2019 2018 Contribution margin: Subscription $ 577,899 $ 356,214 $ 258,771 Services 29,211 12,315 14,386 Total segment contribution margin $ 607,110 $ 368,529 $ 273,157 The reconciliation of segment financial information to our loss from operations is as follows (in thousands): Years Ended January 31, 2020 2019 2018 Segment contribution margin $ 607,110 $ 368,529 $ 273,157 Amortization of acquired intangible assets (80,024) (9,129) (3,723) Stock-based compensation expense (220,354) (117,365) (290,006) Corporate costs, such as research and development, corporate general and administrative and other (646,486) (435,799) (353,600) Loss from operations $ (339,754) $ (193,764) $ (374,172) Sales outside of the United States represented approximately 38%, 34% and 30% of our total revenue for the years ended January 31, 2020, 2019 and 2018, respectively. No individual foreign country represented more than 10% of revenue in any period presented. All revenues from external customers are attributed to individual countries on an end-customer basis, based on domicile of the purchasing entity, if known, or the location of the customer’s headquarters if the specific purchasing entity within the customer is unknown. As of January 31, 2020 and 2019, assets located outside the United States were 5% and 4% of total assets, respectively. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Jan. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share The following table sets forth the calculation of basic and diluted net loss per share during the periods presented (in thousands, except per share data) : Years Ended January 31, 2020 2019 2018 Numerator: Net loss $ (336,582) $ (192,649) $ (369,672) Denominator: Weighted-average shares used in computing net loss, basic and diluted 280,772 159,816 114,141 Net loss per share, basic and diluted $ (1.20) $ (1.21) $ (3.24) The following outstanding shares of common stock equivalents were excluded from the computation of the diluted net loss per share for the periods presented because their effect would have been anti-dilutive (in thousands): As of 2020 2019 2018 Stock options to purchase common stock 13,530 19,118 18,407 Restricted stock awards 38,584 35,058 22,243 Shares issuable pursuant to the ESPP 969 724 522 Total 53,083 54,900 41,172 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (unaudited) | 12 Months Ended |
Jan. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (unaudited) | Selected Quarterly Financial Data (unaudited) The following table sets forth selected summarized quarterly financial information for each of the eight quarters in fiscal 2020 and 2019 (in thousands, except per share data): April 30 July 31 October 31 January 31 Fiscal Year Fiscal 2020 Revenue $ 187,468 $ 196,711 $ 198,292 $ 211,720 $ 794,191 Gross profit 126,235 139,581 140,664 155,209 561,689 Loss from operations (103,753) (89,097) (82,467) (64,437) (339,754) Net loss $ (103,130) $ (87,043) $ (82,122) $ (64,287) $ (336,582) Net loss per share, basic and diluted (*) $ (0.38) $ (0.31) $ (0.29) $ (0.22) $ (1.20) Fiscal 2019 Revenue $ 103,459 $ 112,979 $ 118,988 $ 144,515 $ 479,941 Gross profit 70,108 80,847 89,012 103,860 343,827 Loss from operations (51,702) (29,424) (25,673) (86,965) (193,764) Net loss $ (52,322) $ (28,949) $ (25,857) $ (85,521) $ (192,649) Net loss per share, basic and diluted (*) $ (0.36) $ (0.19) $ (0.17) $ (0.45) $ (1.21) (*) Net loss per share is computed independently. Therefore , the sum of the qu arterly net loss per share may not equal to the total computed for the year or any cumulative interim period. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jan. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn March 3, 2020, the Company's board of directors authorized a share repurchase program of up to $100 million of the Company’s outstanding shares of common stock. Share repurchases may be made through open market purchases, block trades and/or privately negotiated transactions in compliance with Rule 10b-18 promulgated under the Securities Exchange Act of 1934, as amended, subject to market conditions, applicable legal requirements, and other relevant factors. Repurchases may also be made under Rule 10b5-1 plans, which permit shares of common stock to be repurchased through pre-determined criteria. The timing, volume and nature of the repurchases will be at the discretion of our management based on their evaluation of the capital needs of the Company, market conditions, applicable legal requirements and other factors. The program does not have an expiration date, and it may be suspended or discontinued at any time. As of the date of this filing, we used $26.0 million to repurchase 3.9 million shares of common stock at an average repurchase price of $6.56 per share under the repurchase program. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | The consolidated financial statements include the accounts of Cloudera, Inc. and its wholly owned subsidiaries which are located in various countries, including the United States, Australia, China, India, Germany, Ireland, The Netherlands, Singapore, Hungary and the United Kingdom. All intercompany balances and transactions have been eliminated upon consolidation. The financial statements are prepared in accordance with accounting principles generally accepted in the United States (GAAP). |
Fiscal Year | Our fiscal year ends on January 31. References to fiscal 2020, for example, refers to the fiscal year ended January 31, 2020. |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant items subject to such estimates include the useful lives of property and equipment and intangible assets, allowance for doubtful accounts, stock-based compensation expense, bonus attainment, self-insurance costs incurred, the fair value and useful lives of tangible and intangible assets acquired and liabilities assumed resulting from business combinations, the evaluation for impairment of intangible assets and goodwill, estimated period of benefit for deferred contract costs, estimates related to our revenue recognition such as, the assessment of elements in a multi-element arrangement and the valuation assigned to each element and contingencies, and the incremental borrowing rate used in discounting of our lease liabilities. These estimates and assumptions are based on management’s best estimates and judgment. Management regularly evaluates its estimates and assumptions using historical experience and other factors; however, actual results could differ significantly from these estimates. |
Segments | We operate as two operating segments – subscription and services. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker, who is our chief executive officer, in deciding how to allocate resources and assess performance. In January 2019, we completed our merger with Hortonworks. The combined company operates under the Cloudera name. We have integrated Hortonworks into our ongoing business operations and our chief operating |
Foreign Currency Translation | The functional currency of our foreign subsidiaries is generally the local currency. The gains and losses resulting from translating our foreign subsidiaries’ financial statements into U.S. dollars have been reported in accumulated other comprehensive income (loss) on the consolidated balance sheet. Assets and liabilities are translated at exchange rates in effect at the balance sheet date. Equity is translated at the historical rates from the original transaction period. Revenue and expenses are translated at average exchange rates in effect during the period. Foreign currency transaction gains and losses are included in other income (expense), net on the statement of operations. |
Cash, Cash Equivalents and Restricted Cash | Cash equivalents consist of short-term, highly liquid investments with original maturities of three months or less from the date of purchase. Restricted cash represents cash on deposit with financial institutions in support of letters of credit outstanding in favor of certain landlords for office space.Cash as reported on the consolidated statements of cash flows includes the aggregate amounts of cash and cash equivalents and the restricted cash as shown on the consolidated balance sheets. |
Marketable Securities | We have investments in various marketable securities which are classified as available for sale. We determine the appropriate classification of marketable securities at the time of purchase and reevaluate such determination at each balance sheet date. The investments are adjusted for amortization of premiums and discounts to maturity and such amortization is included in interest income, net on the statement of operations. Changes in market value considered to be temporary are recorded as unrealized gains or losses in other comprehensive income (loss). Realized gains and losses and declines in value judged to be other than temporary on available-for-sale securities are included in other income (expense), net on the statement of operations. The cost of securities sold is based on the specific-identification method. |
Concentration of Credit Risk and Significant Customers | Financial instruments that subject us to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, restricted cash and accounts receivable. Our cash is deposited with high credit quality financial institutions. At times such deposits may be in excess of the Federal Depository Insurance Corporation insured limits. We have not experienced any losses on these deposits. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts receivable are recorded at the invoiced amount. We generally do not require collateral and estimate the allowance for doubtful accounts based on the age of outstanding receivables, historical experience, customer creditworthiness and existing economic conditions. If events or changes in circumstances indicate that specific receivable balances may be impaired, further consideration is given to the collectability of those balances and an allowance is recorded accordingly. Past-due receivable balances are written off when internal collection efforts have been unsuccessful in collecting the amount due. |
Property and Equipment, Net | Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization of property and equipment is calculated using a straight-line method over the estimated useful lives of the respective assets. Maintenance and repairs that do not extend the life or improve the asset are expensed when incurred. The estimated useful lives of our assets are as follows: Computer software 2 years Computer equipment 2-3 years Furniture and office equipment 3 years Leasehold improvements Shorter of remaining lease term or estimated useful life |
Leases | As a result of the adoption of ASU 2016-02, Leases (Topic 842) , we have also made changes to our accounting policies with respect to leases. At the inception of a contract, we determine whether the contract is or contains a lease. All leases with a term greater than one year are recognized on the balance sheet as right-of-use (ROU) assets and lease liabilities. We have elected the short-term leases practical expedient which allows any leases with a term of 12 months or less to be considered short-term and thus will not have a lease liability or ROU asset recognized on the balance sheet. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate is the rate incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Our lease terms may include options to extend or terminate the lease, which we do not include in our minimum lease terms unless the options are reasonably certain to be exercised. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components which we have elected to account for as a single lease component. On the lease commencement date, we establish assets and liabilities for the present value of estimated future costs to retire long-lived assets at the termination or expiration of a lease. Such assets are depreciated over the lease term to operating expense. Additionally, we have entered into subleases for unoccupied leased office space. Any impairments to the ROU asset, leasehold improvements or other assets as a result of a sublease are recognized as an operating expense in the period the sublease is executed. Any sublease payments received in excess of the straight-line rent payments for the sublease are recorded as an offset to operating expenses and recognized over the sublease life. |
Goodwill and Intangible Assets | Goodwill represents the excess of the fair value of purchase consideration in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill amounts are not amortized, but rather tested for impairment at least annually or more often if circumstances indicate that the carrying value may not be recoverable. Intangible assets are amortized over their useful lives. Each period we evaluate the estimated remaining useful life of our intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization. We evaluate the recoverability of our long-lived assets, including intangible assets, for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of these assets is measured by comparison of the carrying amount of each asset to the future undiscounted cash flows the asset is expected to generate. If the undiscounted cash flows used in the test for recoverability are less than the carrying amount of these assets, then the carrying amount of such assets is reduced to fair value. |
Business Combinations | We use our best estimates and assumptions to assign fair value to tangible and intangible assets acquired and liabilities assumed at the acquisition or merger date. Such estimates are inherently uncertain and subject to refinement. We continue to collect information and reevaluate these estimates and assumptions and record any adjustments to the preliminary estimates to goodwill provided that we are within the measurement period. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statements of operations. |
Capitalized Software Costs | Capitalization of software development costs for products to be sold to third parties begins upon the establishment of technological feasibility and ceases when the product is available for general release. There is generally no significant passage of time between achievement of technological feasibility and the availability of our software for general release, and the majority of our software is open-source. Therefore, we have not capitalized any software costs through January 31, 2020. All software development costs have been charged to research and development expense in the consolidated statements of operations as incurred. |
Comprehensive Loss | Comprehensive loss represents the net loss for the period plus the results of certain changes to stockholders’ equity (deficit) that are not reflected in the consolidated statements of operations. |
Cost of Revenue | Cost of revenue for subscriptions and services is expensed as incurred. Cost of revenue for subscriptions primarily consists of personnel costs such as salaries, bonuses and benefits and stock-based compensation for employees providing technical support for our subscription customers, allocated shared costs (including rent and information technology) and amortization of certain acquired intangible assets. Cost of revenue for services primarily consists of personnel costs for employees and subcontractors associated with service contracts, travel costs and allocated shared costs. |
Research and Development | Research and development costs are expensed as incurred and primarily include personnel costs, contractor fees, allocated shared costs, supplies, and depreciation of equipment associated with the development of new features for our subscriptions prior to the establishment of their technological feasibility. |
Advertising Expenses | Advertising is expensed as incurred. |
Stock-Based Compensation | We recognize stock-based compensation expense for all stock-based payments. Employee stock-based compensation cost is estimated at the grant date based on the fair value of the equity for financial reporting purposes and is recognized as expense over the requisite service period. Prior to our IPO, the fair value of our common stock for financial reporting purposes was determined considering objective and subjective factors and required judgment to determine the fair value of common stock for financial reporting purposes as of the date of each equity grant or modification. We calculate the fair value of options and purchase rights granted under the ESPP based on the Black-Scholes option-pricing model. The Black-Scholes model requires the use of various assumptions including expected term and expected stock price volatility. We estimate the expected term for stock options using the simplified method due to the lack of historical exercise activity. The simplified method calculates the expected term as the midpoint between the vesting date and the contractual expiration date of the award. The expected term for the ESPP purchase rights is estimated using the offering period, which is typically six months. We estimate volatility for options and ESPP purchase rights using volatilities of a group of public companies in a similar industry, stage of life cycle, and size. The interest rate is derived from government bonds with a similar term to the option or ESPP purchase right granted. We have not declared nor do we expect to declare dividends. Therefore, there is no dividend impact on the valuation of options or ESPP purchase rights. We use the straight-line method for employee expense attribution for stock options and ESPP purchase rights. We have granted RSUs to our employees and members of our board of directors under our 2008 Equity Incentive Plan (2008 Plan) and our 2017 Equity Incentive Plan (2017 Plan). RSUs granted generally vest upon the satisfaction of a service-based vesting condition only, which is typically satisfied pro-rata over a period of three In fiscal 2020, 2019 and 2018, stock-based compensation expense was recorded based on awards that were ultimately expected to vest, and such expense was reduced for forfeitures as they occurred. In fiscal 2017, stock-based compensation expense was recorded based on awards that were ultimately expected to vest, and such expense was reduced for estimated forfeitures. When estimating forfeitures, we considered voluntary termination behaviors as the trend in actual option forfeitures. We estimate the fair value of options and other equity awards granted to non-employees using the Black-Scholes method. Stock-based compensation expense is recognized over the vesting period on a straight-line basis. |
Income Taxes | We account for income taxes under the liability method, whereby deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income. A valuation allowance is established when, in management’s estimate, it is more likely than not that the deferred tax asset will not be realized. Any liability related to uncertain tax positions is recorded on the financial statements within other liabilities. Penalties and interest expense related to income taxes, including uncertain tax positions, are classified as a component of provision for income taxes, as necessary. |
Net Loss Per Share | We follow the two-class method when computing net loss per common share as we issue shares that meet the definition of participating securities. The two-class method determines net income (loss) per common share for each class of common stock and participating securities according to dividends declared or accumulated and participation rights in undistributed earnings. The two-class method requires income available to common stockholders for the period to be allocated between common stock and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. Prior to the automatic conversion into shares of common stock as a result of our IPO, our redeemable convertible preferred stock contractually entitled the holders of such shares to participate in dividends, but did not contractually require the holders of such shares to participate in our losses. Diluted net loss per share is the same as basic net loss per share in all periods, because potentially dilutive common shares are not assumed to have been issued if their effect is anti-dilutive. |
Commitments and Contingencies | Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been or will be incurred and the amount of the liability can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. |
Recently Adopted and Issued Accounting Standards | Recently Adopted Accounting Standards We adopted the following accounting standards in the first quarter of fiscal 2020: • ASU 2018-07, Compensation-Stock Compensation Improvements to Nonemployee Share-Based Payment Accounting (Topic 718) • ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income The adoption of the above listed accounting standards did not have a material impact on our consolidated financial statements for the year ended January 31, 2020. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes, which is intended to simplify various aspects related to accounting for income taxes. The standard is effective for annual reporting periods and interim periods within those years, beginning after December 15, 2020, with early adoption permitted. We have early adopted this standard in the fourth quarter of fiscal 2020 for our year ended January 31, 2020. The adoption of the new accounting standard had no material impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , as amended, which requires lessees to recognize lease liabilities and corresponding ROU assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. We adopted the new standard on February 1, 2019 using the modified retrospective transition approach by applying the standard to all leases existing at the date of initial application and not restating comparative periods. Under this transition method, the application date of the new standard begins in the reporting period in which we have adopted the standard. We have elected the package of practical expedients permitted under the transition guidance, which allowed us not to reassess (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases and (3) the accounting for any initial direct costs for any expired or existing leases. We have also elected the short-term lease exception and will not recognize ROU assets or lease liabilities for qualifying leases (leases with a term of less than 12 months from lease commencement). As a result of the adoption of Topic 842, we recognized ROU assets and lease liabilities for operating leases of $235.9 million and $247.3 million, respectively, as of February 1, 2019. The aggregate lease liability differs from the ROU asset primarily due to lease incentives that are recognized over the life of the leases, and timing differences between when lease payments are remitted to lessors and when ROU asset amortization expense is charged to earnings. We currently have no finance leases. The adoption of the new lease accounting standard had no impact on cash provided by or used in operating, investing or financing activities on our consolidated statements of cash flows. The adoption of the new lease accounting standard did not impact our statements of operations nor previously reported financial results. See Note 8 to our consolidated financial statements for further information on the implementation of the standard. Recently Issued Accounting Standards 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), which requires an entity to utilize a new impairment model known as the current expected credit loss model in place of the currently used incurred loss method. Under this update, on initial recognition and at each reporting period, an entity will be required to recognize an allowance that reflects the entity’s current estimate of credit losses expected to be incurred over the life of the financial instrument. For trade receivables, loans, and other financial instruments, an entity will be required to use a forward-looking expected loss model to recognize credit losses that are probable. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments , to eliminate inconsistencies and provide clarifications to the transition requirements of ASU 2016-13. In November 2019, the FASB issued ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments-Credit Losses , to provide clarification guidance in the following areas: (i) expected recoveries for purchased financial assets with credit deterioration; (ii) transition relief for troubled debt restructurings; (iii) disclosures related to accrued interest receivables; (iv) financial assets secured by collateral maintenance provisions; and (v) conforming amendment to subtopic 805-20. The standard is effective for an nual reporting periods and interim periods within those years, beginning after December 15, 2019, and requires a cumulative effect adjustment to the balance sheet as of the beginning of the first reporting period in which the guidance is effective. We will adopt this standard on February 1, 2020 using the modified retrospective adoption approach. We do not anticipate that ASU 2016-13 will have a material impact on our consolidated financial statements and disclosures based on the composition of the Company's historical credit loss activity, investment portfolio and current market conditions. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-04) , which eliminates step two from the goodwill impairment test. Under this standard, an entity should recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value up to the amount of goodwill allocated to that reporting unit. The standard is effective prospectively for annual reporting periods and interim periods within those years, beginning after December 15, 2019. We will adopt this standard on February 1, 2020. We do not anticipate that ASU 2017-04 will have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement , which amends ASC 820, Fair Value Measurement (ASU 2018-13) . ASU 2018-13 modifies the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The standard is effective for annual reporting periods and interim periods within those years, beginning after December 15, 2019. We will adopt this standard on February 1, 2020 using the prospective adoption approach. We do not anticipate that ASU 2018-13 will have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other - Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) (ASU 2018-15) , which aligns the requirements for capitalizing implementation costs in a cloud computing arrangement service contract with the requirements for capitalizing implementation costs incurred for an internal-use software license. The standard is effective for annual reporting periods and interim periods within those years, beginning after December 15, 2019. We will adopt this standard on February 1, 2020 using the prospective adoption approach. We do not anticipate that ASU 2018-15 will have a material impact on our consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Accounting Policies [Abstract] | |
Restricted Cash as Shown on the Consolidated Balance Sheet | Cash as reported on the consolidated statements of cash flows consists of the following (in thousands): As of January 31, 2020 2019 2018 Cash and cash equivalents $ 107,638 $ 158,672 $ 43,247 Restricted cash (1) 3,352 3,367 18,052 Cash, cash equivalents and restricted cash $ 110,990 $ 162,039 $ 61,299 (1) The restricted cash balance as of January 31, 2019 decreased to $3.4 million from $18.1 million as of January 31, 2018 as a result of the removal of restrictions on letter of credit funds. |
Schedule of Estimated Useful Lives of Company's Assets | The estimated useful lives of our assets are as follows: Computer software 2 years Computer equipment 2-3 years Furniture and office equipment 3 years Leasehold improvements Shorter of remaining lease term or estimated useful life The cost and accumulated depreciation and amortization of property and equipment are as follows (in thousands): As of January 31, 2020 2019 Computer equipment and software $ 22,489 $ 18,259 Office furniture and equipment 12,672 11,907 Leasehold improvements 24,236 24,316 Property and equipment, gross 59,397 54,482 Less: accumulated depreciation and amortization (37,409) (26,863) Property and equipment, net $ 21,988 $ 27,619 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset and Liability | The following table reflects our contract liabilities balances (in thousands): As of January 31, 2020 2019 Deferred revenue, current $ 460,561 $ 390,965 Other contract liabilities, current 12,225 17,177 Deferred revenue, non-current 81,116 116,604 Other contract liabilities, non-current 810 1,296 Total contract liabilities $ 554,712 $ 526,042 Significant changes in the contract liabilities balances during the periods ended January 31, 2020 and 2019 are as follows (in thousands): Contract Liabilities February 1, 2018 $ 249,950 Performance obligations satisfied during the period that were included in the contract liability balance at the beginning of the period (228,167) Increases due to invoicing prior to satisfaction of performance obligations 270,759 Increases from a business combination 233,500 January 31, 2019 526,042 Performance obligations satisfied during the period that were included in the contract liability balance at the beginning of the period (407,004) Increases due to invoicing prior to satisfaction of performance obligations 435,674 January 31, 2020 $ 554,712 |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Business Combinations [Abstract] | |
Fair Value of Consideration Transferred | The merger-date fair value of the consideration transferred for Hortonworks was approximately $1.2 billion, which consisted of the following (in thousands except for share data): Fair Value Common stock (111,304,700 shares) $ 1,154,230 Fair value of share-based compensation awards assumed 48,197 Total $ 1,202,427 The amounts of revenue and net loss of Hortonworks included in our results from the transaction date of January 3, 2019 through January 31, 2019 are as follows (in thousands): 29 Days Ended January 31, Revenue $ 19,597 Net loss (9,226) |
Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the fair values of assets acquired and liabilities assumed as of the Closing Date (in thousands): Fair Value Cash and cash equivalents $ 40,886 Marketable securities, current 8,103 Accounts receivable, net 165,958 Prepaid expenses and other assets 23,512 Property and equipment, net 8,091 Intangible assets 682,600 Accounts payable (2,888) Accrued compensation (31,007) Other accrued liabilities and long-term liabilities (12,163) Deferred revenue (233,500) Total net assets acquired and liabilities assumed $ 649,592 |
Schedule of Acquired Finite-Lived Intangible Assets | The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the Closing Date: Fair Value Estimated Useful Life (in thousands) (in years) Unbilled contracts $ 18,300 2 Customer relationships 661,600 10 Trade names 2,700 1 Total identified intangible assets $ 682,600 |
Cash Equivalents and Marketab_2
Cash Equivalents and Marketable Securities (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Cash as Reported on the Condensed Consolidated Flows | The following are the fair values of our cash equivalents and marketable securities as of January 31, 2020 (in thousands): Amortized Unrealized Unrealized Estimated Cash equivalents: Money market funds $ 34,596 $ — $ — $ 34,596 Marketable securities: Asset-backed securities 68,194 235 — 68,429 Corporate notes and obligations 199,226 891 — 200,117 Commercial paper 46,460 7 — 46,467 Municipal securities 20,865 65 — 20,930 Certificates of deposit 14,996 19 — 15,015 U.S. treasury securities 24,563 33 — 24,596 Total cash equivalents and marketable securities $ 408,900 $ 1,250 $ — $ 410,150 The following are the fair values of our cash equivalents and marketable securities as of January 31, 2019 (in thousands): Amortized Unrealized Unrealized Estimated Cash equivalents: Money market funds $ 29,966 $ — $ — $ 29,966 Commercial paper 9,157 1 — 9,158 Certificates of deposit 3,999 1 — 4,000 Reverse repurchase agreements 5,000 — — 5,000 Marketable securities: Asset-backed securities 63,626 16 (57) 63,585 Corporate notes and obligations 140,710 136 (111) 140,735 Commercial paper 101,712 9 (1) 101,720 Certificates of deposit 46,551 21 (1) 46,571 U.S. treasury securities 21,949 — (14) 21,935 Foreign government obligations 4,000 — — 4,000 Total cash equivalents and marketable securities $ 426,670 $ 184 $ (184) $ 426,670 |
Debt Securities, Available-for-sale | The contractual maturities of investments in available-for-sale securities were as follows (in thousands): January 31, 2020 January 31, 2019 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due within one year $ 273,582 $ 274,058 $ 380,461 $ 380,335 Due after one year through five years 135,318 136,092 46,209 46,335 Total investments in marketable securities $ 408,900 $ 410,150 $ 426,670 $ 426,670 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities According to the Fair Value Hierarchy, Measured at Fair Value | The following table represents our financial assets according to the fair value hierarchy, measured at fair value as of January 31, 2020 (in thousands): Level 1 Level 2 Total Cash equivalents: Money market funds $ 34,596 $ — $ 34,596 Marketable securities: Asset-backed securities — 68,429 68,429 Corporate notes and obligations — 200,117 200,117 Commercial paper — 46,467 46,467 Municipal securities — 20,930 20,930 Certificates of deposit — 15,015 15,015 U.S. treasury securities — 24,596 24,596 Total financial assets $ 34,596 $ 375,554 $ 410,150 The following table represents our financial assets according to the fair value hierarchy, measured at fair value as of January 31, 2019 (in thousands): Level 1 Level 2 Total Cash equivalents: Money market funds $ 29,966 $ — $ 29,966 Commercial paper — 9,158 9,158 Reverse repurchase agreements — 5,000 5,000 Certificates of deposits — 4,000 4,000 Marketable securities: Asset-backed securities — 63,585 63,585 Corporate notes and obligations — 140,735 140,735 Commercial paper — 101,720 101,720 Certificates of deposit — 46,571 46,571 U.S. treasury securities 14,950 6,985 21,935 Foreign government obligations — 4,000 4,000 Total financial assets $ 44,916 $ 381,754 $ 426,670 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Cost and Accumulated Depreciation and Amortization of Property and Equipment | The estimated useful lives of our assets are as follows: Computer software 2 years Computer equipment 2-3 years Furniture and office equipment 3 years Leasehold improvements Shorter of remaining lease term or estimated useful life The cost and accumulated depreciation and amortization of property and equipment are as follows (in thousands): As of January 31, 2020 2019 Computer equipment and software $ 22,489 $ 18,259 Office furniture and equipment 12,672 11,907 Leasehold improvements 24,236 24,316 Property and equipment, gross 59,397 54,482 Less: accumulated depreciation and amortization (37,409) (26,863) Property and equipment, net $ 21,988 $ 27,619 |
Schedule of Intangible Assets | Intangible assets consisted of the following as of January 31, 2020 (in thousands): Gross Fair Accumulated Net Book Weighted Average Developed technology $ 17,570 $ (11,321) $ 6,249 2.0 Customer relationships and other acquired intangible assets 671,447 (80,847) 590,600 8.9 Unbilled contracts 18,300 (9,913) 8,387 0.9 Total $ 707,317 $ (102,081) $ 605,236 8.7 Intangible assets consisted of the following as of January 31, 2019 (in thousands): Gross Fair Accumulated Net Book Weighted Average Developed technology $ 11,986 $ (9,258) $ 2,728 1.9 Customer relationships and other acquired intangible assets 671,097 (12,036) 659,061 9.9 Unbilled contracts 18,300 (763) 17,537 1.9 Total $ 701,383 $ (22,057) $ 679,326 9.6 |
Schedule of Expected Future Amortization Expense of Intangible Assets | The expected future amortization expense of these intangible assets as of January 31, 2020 is as follows (in thousands): 2021 $ 77,941 2022 69,074 2023 66,722 2024 66,211 2025 66,160 2026 and thereafter 259,128 Total amortization expense $ 605,236 |
Schedule of Changes in Goodwill | The following table represents the changes to goodwill (in thousands): Balance at January 31, 2018 $ 33,621 Hortonworks merger 552,835 Balance at January 31, 2019 586,456 Other (1) 3,905 Balance at January 31, 2020 $ 590,361 (1) Other consists of certain purchase accounting adjustments related to our merger with Hortonworks and to a business combination. |
Accrued Compensation and Other Accrued Liabilities | Accrued compensation consists of the following (in thousands): As of January 31, 2020 2019 Accrued salaries, benefits and commissions $ 27,067 $ 20,563 Accrued compensation-related taxes 15,205 11,797 Accrued bonuses 13,409 14,832 Employee stock purchase plan withholdings 2,732 1,902 Other 3,413 4,496 Total accrued compensation $ 61,826 $ 53,590 Other Accrued Liabilities Other accrued liabilities consist of the following (in thousands): As of January 31, 2020 2019 Accrued professional costs $ 6,182 $ 6,500 Accrued taxes 5,164 3,731 Accrued travel 1,574 2,751 Other (1) 9,377 11,566 Total other accrued liabilities $ 22,297 $ 24,548 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Leases [Abstract] | |
Lease, Cost | Components of lease expense are summarized as follows (in thousands): Twelve Months Ended January 31, 2020 Operating lease cost $ 45,640 Short-term lease cost 2,276 Sublease income (15,730) Net lease cost $ 32,186 |
Lease Terms And Discount Rates | Lease term and discount rate information are summarized as follows: As of January 31, 2020 Weighted Average Remaining Lease Term (years) 6.8 Weighted Average Discount Rate 6 % |
Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities as of January 31, 2020 are as follows (in thousands): Minimum Lease Payments, Gross 2021 $ 30,038 2022 39,497 2023 35,823 2024 36,453 2025 35,617 2026 and thereafter 83,646 Total lease payments $ 261,074 Less imputed interest (49,569) Present value of lease liabilities $ 211,505 We expect to receive $31.3 million of sublease rental proceeds in the next five years as of January 31, 2020. As of January 31, 2019, prior to the adoption of Topic 842, future minimum lease payments under non-cancelable operating leases was as follows (in thousands): Minimum Lease Payments, Gross 2020 $ 42,293 2021 41,475 2022 37,172 2023 34,249 2024 35,190 2025 and thereafter 115,481 Total minimum lease payments $ 305,860 |
Schedule of Future Minimum Rental Payments for Operating Leases Under Topic 840 | As of January 31, 2019, prior to the adoption of Topic 842, future minimum lease payments under non-cancelable operating leases was as follows (in thousands): Minimum Lease Payments, Gross 2020 $ 42,293 2021 41,475 2022 37,172 2023 34,249 2024 35,190 2025 and thereafter 115,481 Total minimum lease payments $ 305,860 |
Stock Option Plans (Tables)
Stock Option Plans (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The following table summarizes stock option activity and related information under the Stock Plans: Options Outstanding Options Weighted- Weighted-Average Remaining Aggregate Balance — January 31, 2019 19,117,696 $ 5.83 4.3 $ 154,431 Exercised (4,395,673) 2.88 — — Canceled (1,191,660) 15.25 — — Balance — January 31, 2020 13,530,363 $ 5.96 2.1 $ 70,057 Exercisable— January 31, 2020 13,478,227 $ 5.91 2.0 $ 70,057 Vested and Expected to Vest — January 31, 2020 13,530,363 $ 5.96 2.1 $ 70,057 |
Schedule of Weighted Average Assumptions in Calculating Option Fair Value | The fair value of each stock option grant was estimated at the grant date using the Black-Scholes option-pricing model with the following weighted-average assumptions: Years Ended January 31, 2019 2018 Volatility 45.0% 45.3% Risk-free interest rate 2.5% 2.0% Expected term (in years) 5.0 years 6.1 years Expected dividends —% —% |
Schedule of Restricted Stock Activity | The f ollowing table summarizes RSU activity and related information under the Stock Plans: RSUs Outstanding Number of RSUs Weighted-Average Grant Date Fair Value Per Share Balance —January 31, 2019 35,058,103 $ 13.25 Granted 36,075,434 8.96 Canceled (9,276,310) 12.49 Vested and converted to shares (23,273,233) 11.15 Balance —January 31, 2020 38,583,994 $ 10.85 |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | The fair value of each ESPP grant was estimated at the grant date using the Black-Scholes option-pricing model with the following weighted-average assumptions: Years Ended January 31, 2020 2019 2018 Volatility 31.9% 38.8% 32.9% Risk-free interest rate 1.9% 2.4% 1.2% Expected term (in years) 0.5 years 0.5 years 0.6 years Expected dividends —% —% —% |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Domestic and Foreign Components of Loss before Provision for Income Taxes | The domestic and foreign components of loss before provision for income taxes consisted of the following (in thousands): Years Ended January 31, 2020 2019 2018 Domestic $ (340,542) $ (191,479) $ (372,466) Foreign 12,660 4,248 4,873 Net loss before provision for income taxes $ (327,882) $ (187,231) $ (367,593) |
Schedule of Components of Provision for Income Tax | The components of provision for income taxes are as follows (in thousands): Years Ended January 31, 2020 2019 2018 Current: Federal $ — $ — $ — State (18) (106) (112) Foreign (8,766) (5,371) (3,097) Total (8,784) (5,477) (3,209) Deferred: Federal — — 917 State — — — Foreign 84 59 213 Total 84 59 1,130 Total provision for income taxes $ (8,700) $ (5,418) $ (2,079) |
Reconciliation of Income Taxes at Statutory Federal Income Tax Rate to Provision for Income Taxes | A reconciliation of income taxes at the statutory federal income tax rate to the provision for income taxes included in the consolidated statements of operations is as follows (in thousands): Years Ended January 31, 2020 2019 2018 U.S. federal statutory income tax $ 68,856 $ 39,318 $ 124,287 Research tax credits 6,120 10,044 7,976 Stock-based compensation (6,395) (3,004) (5,124) Change in valuation allowance 8,566 (42,450) 2,907 Foreign tax rate differential (6,384) (4,945) — Legal expenses — (4,000) — Federal tax rate change — — (132,387) Global intangible low-taxed income (3,668) — — Non-deductible compensation (1,150) — — Change in U.S. tax status of foreign entities (72,449) — — Other (2,196) (381) 262 Provision for income taxes $ (8,700) $ (5,418) $ (2,079) |
Schedule of Deferred Tax Assets and Liabilities | The deferred tax assets and liabilities were as follows (in thousands): As of January 31, 2020 2019 Deferred tax assets: Accruals and reserves $ 7,948 $ 13,753 Deferred revenue 28,621 — Net operating loss carryforwards 475,390 430,220 Research and development credits and other credits 75,168 62,869 Stock-based compensation 18,428 30,946 ROU assets/lease liability 53,048 — Gross deferred tax assets 658,603 537,788 Less valuation allowance (459,649) (454,278) Total deferred tax assets, net of valuation allowance 198,954 83,510 Deferred tax liabilities: Depreciation and amortization (128,825) (61,285) Deferred revenue — (5,026) ROU assets/lease liability (48,085) — Deferred costs (21,609) (16,768) Gross deferred tax liabilities (198,519) (83,079) Net deferred tax assets $ 435 $ 431 |
Schedule of Changes in Gross Unrecognized Tax Benefits | The following table reflects the changes in the gross unrecognized tax benefits (in thousands): Years Ended January 31, 2020 2019 2018 Balance as of beginning of year $ 18,600 $ 11,700 $ 9,600 Tax positions taken in prior period: Gross increases 600 — — Tax positions taken in current period: Gross decreases — (1,000) — Gross increases (1) 5,200 7,900 2,100 Balance as of end of year $ 24,400 $ 18,600 $ 11,700 (1) Includes $7.4 million from the Hortonworks merger for fiscal year 2019. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information by Reportable Segment | Financial information for each reportable segment was as follows (in thousands): Years Ended January 31, 2020 2019 2018 Revenue: Subscription $ 667,826 $ 406,333 $ 302,617 Services 126,365 73,608 69,676 Total revenue $ 794,191 $ 479,941 $ 372,293 Years Ended January 31, 2020 2019 2018 Contribution margin: Subscription $ 577,899 $ 356,214 $ 258,771 Services 29,211 12,315 14,386 Total segment contribution margin $ 607,110 $ 368,529 $ 273,157 |
Reconciliation of Segment Financial Information to Loss from Operations | The reconciliation of segment financial information to our loss from operations is as follows (in thousands): Years Ended January 31, 2020 2019 2018 Segment contribution margin $ 607,110 $ 368,529 $ 273,157 Amortization of acquired intangible assets (80,024) (9,129) (3,723) Stock-based compensation expense (220,354) (117,365) (290,006) Corporate costs, such as research and development, corporate general and administrative and other (646,486) (435,799) (353,600) Loss from operations $ (339,754) $ (193,764) $ (374,172) |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of the Calculation of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders | The following table sets forth the calculation of basic and diluted net loss per share during the periods presented (in thousands, except per share data) : Years Ended January 31, 2020 2019 2018 Numerator: Net loss $ (336,582) $ (192,649) $ (369,672) Denominator: Weighted-average shares used in computing net loss, basic and diluted 280,772 159,816 114,141 Net loss per share, basic and diluted $ (1.20) $ (1.21) $ (3.24) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following outstanding shares of common stock equivalents were excluded from the computation of the diluted net loss per share for the periods presented because their effect would have been anti-dilutive (in thousands): As of 2020 2019 2018 Stock options to purchase common stock 13,530 19,118 18,407 Restricted stock awards 38,584 35,058 22,243 Shares issuable pursuant to the ESPP 969 724 522 Total 53,083 54,900 41,172 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Information | The following table sets forth selected summarized quarterly financial information for each of the eight quarters in fiscal 2020 and 2019 (in thousands, except per share data): April 30 July 31 October 31 January 31 Fiscal Year Fiscal 2020 Revenue $ 187,468 $ 196,711 $ 198,292 $ 211,720 $ 794,191 Gross profit 126,235 139,581 140,664 155,209 561,689 Loss from operations (103,753) (89,097) (82,467) (64,437) (339,754) Net loss $ (103,130) $ (87,043) $ (82,122) $ (64,287) $ (336,582) Net loss per share, basic and diluted (*) $ (0.38) $ (0.31) $ (0.29) $ (0.22) $ (1.20) Fiscal 2019 Revenue $ 103,459 $ 112,979 $ 118,988 $ 144,515 $ 479,941 Gross profit 70,108 80,847 89,012 103,860 343,827 Loss from operations (51,702) (29,424) (25,673) (86,965) (193,764) Net loss $ (52,322) $ (28,949) $ (25,857) $ (85,521) $ (192,649) Net loss per share, basic and diluted (*) $ (0.36) $ (0.19) $ (0.17) $ (0.45) $ (1.21) (*) Net loss per share is computed independently. Therefore , the sum of the qu arterly net loss per share may not equal to the total computed for the year or any cumulative interim period. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) | 12 Months Ended | |||
Jan. 31, 2020USD ($)segment | Jan. 31, 2019USD ($) | Jan. 31, 2018USD ($) | Feb. 01, 2019USD ($) | |
Concentration Risk [Line Items] | ||||
Operating segments | segment | 2 | |||
Allowance for doubtful accounts | $ 800,000 | $ 200,000 | ||
Impairment of property and equipment | 0 | 0 | $ 0 | |
Goodwill impairment | 0 | 0 | 0 | |
Impairment of intangible assets | 0 | 0 | 0 | |
Contract costs | 90,000,000 | 69,000,000 | ||
Capitalized contract cost, amortization | 47,600,000 | 30,600,000 | 23,300,000 | |
Amortization of deferred costs | 47,552,000 | 30,634,000 | 23,284,000 | |
Advertising expense | 15,400,000 | $ 6,900,000 | $ 6,400,000 | |
Present value of lease liabilities | 211,505,000 | $ 247,300,000 | ||
Operating lease right-of-use assets | $ 204,642,000 | $ 235,900,000 | ||
Restricted stock awards | ||||
Concentration Risk [Line Items] | ||||
Award vesting period (in years) | 4 years | |||
Minimum | ||||
Concentration Risk [Line Items] | ||||
Subscription period | 1 year | |||
Minimum | Restricted stock awards | ||||
Concentration Risk [Line Items] | ||||
Award vesting period (in years) | 3 years | |||
Minimum | Equity Incentive Plan 2008 | Restricted stock awards | ||||
Concentration Risk [Line Items] | ||||
Award vesting period (in years) | 3 years | |||
Maximum | ||||
Concentration Risk [Line Items] | ||||
Subscription period | 3 years | |||
Revenue from contract with customer, subscription period, limited cases | 7 years | |||
Maximum | Restricted stock awards | ||||
Concentration Risk [Line Items] | ||||
Award vesting period (in years) | 4 years | |||
Maximum | Equity Incentive Plan 2008 | Restricted stock awards | ||||
Concentration Risk [Line Items] | ||||
Award vesting period (in years) | 4 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Cash as Reported on the Condensed Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 107,638 | $ 158,672 | $ 43,247 | |
Restricted cash | 3,352 | 3,367 | 18,052 | |
Cash, cash equivalents and restricted cash | $ 110,990 | $ 162,039 | $ 61,299 | $ 89,632 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Company's Assets (Details) | 12 Months Ended |
Jan. 31, 2020 | |
Computer software | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 2 years |
Computer equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 2 years |
Computer equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Furniture and office equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Contract Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 |
Disaggregation of Revenue [Line Items] | |||
Total contract liabilities | $ 554,712 | $ 526,042 | $ 249,950 |
Deferred Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Contract with customer, liability, current | 460,561 | 390,965 | |
Contract with customer, liability, noncurrent | 81,116 | 116,604 | |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Contract with customer, liability, current | 12,225 | 17,177 | |
Contract with customer, liability, noncurrent | $ 810 | $ 1,296 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Significant Changes in Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Contract Liabilities | ||
Contract Liabilities, balance beginning of period | $ 526,042 | $ 249,950 |
Performance obligations satisfied during the period that were included in the contract liability balance at the beginning of the period | (407,004) | (228,167) |
Increases due to invoicing prior to satisfaction of performance obligations | 435,674 | 270,759 |
Increases from a business combination | 233,500 | |
Contract Liabilities, balance end of period | $ 554,712 | $ 526,042 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Performance Obligations (Details) $ in Millions | Jan. 31, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 877.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-02-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 585.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-02-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 292 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period |
Business Combination - Narrativ
Business Combination - Narrative (Details) | Jan. 03, 2019USD ($)$ / sharesshares | Jan. 31, 2019USD ($) | Jan. 31, 2020USD ($) | Jan. 31, 2019USD ($) |
Business Acquisition [Line Items] | ||||
Stock issued in acquisition (in shares) | shares | 111,304,700 | |||
Average remaining vesting period (in years) | 9 months 18 days | |||
Stock-based compensation | $ 20,900,000 | $ 6,200,000 | ||
Goodwill acquired during period | 552,835,000 | |||
Estimated useful life, benchmark period | 7 years | |||
Hortonworks, Inc | ||||
Business Acquisition [Line Items] | ||||
Consideration transferred | $ 1,200,000,000 | $ 1,202,427,000 | ||
Transaction costs | $ 22,800,000 | |||
Share price (in usd per share) | $ / shares | $ 10.37 | |||
Share conversion ratio | 1.305 | |||
Fair value of stock awards assumed | $ 63,500,000 | |||
Average remaining vesting period (in years) | 1 year 6 months | |||
Stock-based compensation | $ 13,100,000 | |||
Goodwill acquired during period | $ 552,800,000 | |||
Business acquisition, goodwill, expected tax deductible amount | $ 0 | |||
Stock options to purchase common stock | Hortonworks, Inc | ||||
Business Acquisition [Line Items] | ||||
Stock issued in acquisition (in shares) | shares | 4,100,000 | |||
Performance Restricted Stock Units | Hortonworks, Inc | ||||
Business Acquisition [Line Items] | ||||
Stock issued in acquisition (in shares) | shares | 900,000 | |||
Restricted stock awards | ||||
Business Acquisition [Line Items] | ||||
Average remaining vesting period (in years) | 2 years 2 months 12 days | |||
Restricted stock awards | Hortonworks, Inc | ||||
Business Acquisition [Line Items] | ||||
Stock issued in acquisition (in shares) | shares | 9,000,000 | |||
Subscription | ||||
Business Acquisition [Line Items] | ||||
Goodwill acquired during period | $ 525,200,000 | |||
Services | ||||
Business Acquisition [Line Items] | ||||
Goodwill acquired during period | $ 27,600,000 | |||
Customer relationships | Hortonworks, Inc | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 10 years |
Business Combination - Acquisit
Business Combination - Acquisition Date Fair Value of Consideration Transferred (Details) - USD ($) $ in Thousands | Jan. 03, 2019 | Jan. 31, 2019 | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 |
Business Acquisition [Line Items] | |||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 0 | $ 1,154,230 | $ 2,081 | ||
Fair value of share-based compensation awards assumed | $ 48,197 | $ 0 | $ 48,197 | $ 0 | |
Stock issued in acquisition (in shares) | 111,304,700 | ||||
Hortonworks, Inc | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 1,154,230 | ||||
Consideration transferred | $ 1,200,000 | $ 1,202,427 |
Business Combination - Summary
Business Combination - Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed (Details) - Hortonworks, Inc $ in Thousands | Jan. 03, 2019USD ($) |
Business Acquisition [Line Items] | |
Cash and cash equivalents | $ 40,886 |
Marketable securities, current | 8,103 |
Accounts receivable, net | 165,958 |
Prepaid expenses and other assets | 23,512 |
Property and equipment, net | 8,091 |
Intangible assets | 682,600 |
Accounts payable | (2,888) |
Accrued compensation | (31,007) |
Other accrued liabilities and long-term liabilities | (12,163) |
Deferred revenue | (233,500) |
Total net assets acquired and liabilities assumed | $ 649,592 |
Business Combination - Componen
Business Combination - Components of Intangible Assets Acquired and Their Estimated Useful Lives (Details) - Hortonworks, Inc $ in Thousands | Jan. 03, 2019USD ($) |
Business Acquisition [Line Items] | |
Fair Value | $ 682,600 |
Unbilled contracts | |
Business Acquisition [Line Items] | |
Fair Value | $ 18,300 |
Estimated Useful Life | 2 years |
Customer relationships | |
Business Acquisition [Line Items] | |
Fair Value | $ 661,600 |
Estimated Useful Life | 10 years |
Trade names | |
Business Acquisition [Line Items] | |
Fair Value | $ 2,700 |
Estimated Useful Life | 1 year |
Business Combination - Amounts
Business Combination - Amounts of Revenue and Net Loss (Details) - Hortonworks, Inc $ in Thousands | 1 Months Ended |
Jan. 31, 2019USD ($) | |
Business Acquisition [Line Items] | |
Revenue | $ 19,597 |
Net loss | $ (9,226) |
Cash Equivalents and Marketab_3
Cash Equivalents and Marketable Securities - Schedule of Fair Value of Cash and Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Marketable securities: | ||
Unrealized Losses | $ 0 | $ (184) |
Total, Amortized Cost | 408,900 | 426,670 |
Total, Unrealized Gains | 1,250 | 184 |
Total, Estimated Fair Value | 410,150 | 426,670 |
Asset-backed securities | ||
Marketable securities: | ||
Amortized Cost | 68,194 | 63,626 |
Unrealized Gains | 235 | 16 |
Unrealized Losses | 0 | (57) |
Estimated Fair Value | 68,429 | 63,585 |
Corporate notes and obligations | ||
Marketable securities: | ||
Amortized Cost | 199,226 | 140,710 |
Unrealized Gains | 891 | 136 |
Unrealized Losses | 0 | (111) |
Estimated Fair Value | 200,117 | 140,735 |
Commercial paper | ||
Marketable securities: | ||
Amortized Cost | 46,460 | 101,712 |
Unrealized Gains | 7 | 9 |
Unrealized Losses | 0 | (1) |
Estimated Fair Value | 46,467 | 101,720 |
Municipal securities | ||
Marketable securities: | ||
Amortized Cost | 20,865 | |
Unrealized Gains | 65 | |
Unrealized Losses | 0 | |
Estimated Fair Value | 20,930 | |
Certificates of deposit | ||
Marketable securities: | ||
Amortized Cost | 14,996 | 46,551 |
Unrealized Gains | 19 | 21 |
Unrealized Losses | 0 | (1) |
Estimated Fair Value | 15,015 | 46,571 |
U.S. treasury securities | ||
Marketable securities: | ||
Amortized Cost | 24,563 | 21,949 |
Unrealized Gains | 33 | 0 |
Unrealized Losses | 0 | (14) |
Estimated Fair Value | 24,596 | 21,935 |
Foreign government obligations | ||
Marketable securities: | ||
Amortized Cost | 4,000 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Estimated Fair Value | 4,000 | |
Money market funds | ||
Cash equivalents: | ||
Amortized Cost | 34,596 | 29,966 |
Estimated Fair Value | $ 34,596 | 29,966 |
Commercial paper | ||
Cash equivalents: | ||
Amortized Cost | 9,157 | |
Unrealized Gains | 1 | |
Estimated Fair Value | 9,158 | |
Certificates of deposit | ||
Cash equivalents: | ||
Amortized Cost | 3,999 | |
Unrealized Gains | 1 | |
Estimated Fair Value | 4,000 | |
Reverse repurchase agreements | ||
Cash equivalents: | ||
Amortized Cost | 5,000 | |
Estimated Fair Value | $ 5,000 |
Cash Equivalents and Marketab_4
Cash Equivalents and Marketable Securities - Narrative (Details) | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Minimum | ||
Cash and Cash Equivalents [Line Items] | ||
Marketable securities term | 1 year | 1 year |
Maximum | ||
Cash and Cash Equivalents [Line Items] | ||
Marketable securities term | 3 years | 3 years |
Cash Equivalents and Marketab_5
Cash Equivalents and Marketable Securities - Summary of Contractual Maturities of Investments (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Amortized Cost | ||
Due within one year | $ 273,582 | $ 380,461 |
Due after one year through five years | 135,318 | 46,209 |
Total investments in marketable securities | 410,150 | 426,670 |
Estimated Fair Value | ||
Due within one year | 274,058 | 380,335 |
Due after one year through five years | 136,092 | 46,335 |
Total investments in marketable securities | $ 408,900 | $ 426,670 |
Fair Value Measurement - Schedu
Fair Value Measurement - Schedule of Financial Assets and Liabilities According to the Fair Value Hierarchy, Measured at Fair Value (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 68,429 | $ 63,585 |
Corporate notes and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 200,117 | 140,735 |
Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 20,930 | |
Certificates of deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 15,015 | 46,571 |
U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 24,596 | 21,935 |
Foreign government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 4,000 | |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 410,150 | 426,670 |
Fair Value, Measurements, Recurring | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 68,429 | 63,585 |
Fair Value, Measurements, Recurring | Corporate notes and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 200,117 | 140,735 |
Fair Value, Measurements, Recurring | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 46,467 | 101,720 |
Fair Value, Measurements, Recurring | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 20,930 | |
Fair Value, Measurements, Recurring | Certificates of deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 15,015 | 46,571 |
Fair Value, Measurements, Recurring | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 24,596 | 21,935 |
Fair Value, Measurements, Recurring | Foreign government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 4,000 | |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 34,596 | 44,916 |
Fair Value, Measurements, Recurring | Level 1 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Corporate notes and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Certificates of deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 14,950 |
Fair Value, Measurements, Recurring | Level 1 | Foreign government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 375,554 | 381,754 |
Fair Value, Measurements, Recurring | Level 2 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 68,429 | 63,585 |
Fair Value, Measurements, Recurring | Level 2 | Corporate notes and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 200,117 | 140,735 |
Fair Value, Measurements, Recurring | Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 46,467 | 101,720 |
Fair Value, Measurements, Recurring | Level 2 | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 20,930 | |
Fair Value, Measurements, Recurring | Level 2 | Certificates of deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 15,015 | 46,571 |
Fair Value, Measurements, Recurring | Level 2 | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 24,596 | 6,985 |
Fair Value, Measurements, Recurring | Level 2 | Foreign government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 4,000 | |
Fair Value, Measurements, Recurring | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 34,596 | 29,966 |
Fair Value, Measurements, Recurring | Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 34,596 | 29,966 |
Fair Value, Measurements, Recurring | Money market funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 0 | 0 |
Fair Value, Measurements, Recurring | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 9,158 | |
Fair Value, Measurements, Recurring | Commercial paper | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Fair Value, Measurements, Recurring | Commercial paper | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 9,158 | |
Fair Value, Measurements, Recurring | Reverse repurchase agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 5,000 | |
Fair Value, Measurements, Recurring | Reverse repurchase agreements | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Fair Value, Measurements, Recurring | Reverse repurchase agreements | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 5,000 | |
Fair Value, Measurements, Recurring | Certificates of deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 4,000 | |
Fair Value, Measurements, Recurring | Certificates of deposits | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Fair Value, Measurements, Recurring | Certificates of deposits | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 4,000 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Cost and Accumulated Depreciation and Amortization of Property and Equipment (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 59,397 | $ 54,482 |
Less: accumulated depreciation and amortization | (37,409) | (26,863) |
Property and equipment, net | 21,988 | 27,619 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 22,489 | 18,259 |
Furniture and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 12,672 | 11,907 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 24,236 | $ 24,316 |
Balance Sheet Components - Narr
Balance Sheet Components - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Depreciation | $ 12.1 | $ 8.3 | $ 8.4 |
Amortization expense of intangible assets | $ 80 | $ 9.1 | $ 3.7 |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Fair Value | $ 707,317 | $ 701,383 |
Accumulated Amortization | (102,081) | (22,057) |
Net Book Value | $ 605,236 | $ 679,326 |
Weighted Average Remaining Useful Life (in years) | 8 years 8 months 12 days | 9 years 7 months 6 days |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Fair Value | $ 17,570 | $ 11,986 |
Accumulated Amortization | (11,321) | (9,258) |
Net Book Value | $ 6,249 | $ 2,728 |
Weighted Average Remaining Useful Life (in years) | 2 years | 1 year 10 months 24 days |
Customer relationships and other acquired intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Fair Value | $ 671,447 | $ 671,097 |
Accumulated Amortization | (80,847) | (12,036) |
Net Book Value | $ 590,600 | $ 659,061 |
Weighted Average Remaining Useful Life (in years) | 8 years 10 months 24 days | 9 years 10 months 24 days |
Unbilled contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Fair Value | $ 18,300 | $ 18,300 |
Accumulated Amortization | (9,913) | (763) |
Net Book Value | $ 8,387 | $ 17,537 |
Weighted Average Remaining Useful Life (in years) | 10 months 24 days | 1 year 10 months 24 days |
Balance Sheet Components - Sc_3
Balance Sheet Components - Schedule of Expected Future Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
2021 | $ 77,941 | |
2022 | 69,074 | |
2023 | 66,722 | |
2024 | 66,211 | |
2025 | 66,160 | |
2026 and thereafter | 259,128 | |
Net Book Value | $ 605,236 | $ 679,326 |
Balance Sheet Components - Sc_4
Balance Sheet Components - Schedule of Changes in Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 586,456 | $ 33,621 |
Additions from an acquisition | 552,835 | |
Other | 3,905 | |
Ending balance | $ 590,361 | $ 586,456 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Compensation and Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Accrued Compensation | ||
Accrued salaries, benefits and commissions | $ 27,067 | $ 20,563 |
Accrued compensation-related taxes | 15,205 | 11,797 |
Accrued bonuses | 13,409 | 14,832 |
Employee stock purchase plan withholdings | 2,732 | 1,902 |
Other | 3,413 | 4,496 |
Total accrued compensation | 61,826 | 53,590 |
Other Accrued Liabilities | ||
Accrued professional costs | 6,182 | 6,500 |
Accrued taxes | 5,164 | 3,731 |
Accrued travel | 1,574 | 2,751 |
Other | 9,377 | 11,566 |
Total other accrued liabilities | $ 22,297 | $ 24,548 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) $ in Thousands | 12 Months Ended |
Jan. 31, 2020USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 45,640 |
Short-term lease cost | 2,276 |
Sublease income | (15,730) |
Net lease cost | $ 32,186 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Jan. 31, 2020 |
Leases [Abstract] | |
Weighted Average Remaining Lease Term (years) | 6 years 9 months 18 days |
Weighted Average Discount Rate | 6.00% |
Leases - Maturities (Details)
Leases - Maturities (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Feb. 01, 2019 |
Leases [Abstract] | ||
2021 | $ 30,038 | |
2022 | 39,497 | |
2023 | 35,823 | |
2024 | 36,453 | |
2025 | 35,617 | |
2026 and thereafter | 83,646 | |
Total lease payments | 261,074 | |
Less imputed interest | (49,569) | |
Present value of lease liabilities | $ 211,505 | $ 247,300 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | Jan. 31, 2020USD ($) |
Leases [Abstract] | |
Sublease, rental proceeds, next five years | $ 31.3 |
Leases - Future Minimum Payment
Leases - Future Minimum Payments Due Under Topic 840 (Details) $ in Thousands | Jan. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 42,293 |
2021 | 41,475 |
2022 | 37,172 |
2023 | 34,249 |
2024 | 35,190 |
2025 and thereafter | 115,481 |
Total minimum lease payments | $ 305,860 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | Jun. 07, 2019directorsOrOfficersdefendants | Jan. 31, 2020USD ($) | Oct. 16, 2019numberOfDerivativeActionsdirectorsOrOfficers | Sep. 05, 2019directorsOrOfficers | Sep. 03, 2019directorsOrOfficers | Jul. 30, 2019directorsOrOfficers | Jan. 31, 2019USD ($) |
Loss Contingencies [Line Items] | |||||||
Letters of credit | $ | $ 19.9 | $ 20 | |||||
Christine V. Cloudera, Inc | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency, number of defendants | defendants | 3 | ||||||
Loss contingency, number of directors or officers | 10 | ||||||
Lazard v. Cloudera, Inc | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency, number of directors or officers | 13 | ||||||
Lee, et al. v. Cole, et al. | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency, number of directors or officers | 11 | ||||||
Slattery v. Reilly, et al. | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency, number of directors or officers | 13 | ||||||
Frentzel v. Bearden, et al. | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency, number of directors or officers | 13 | ||||||
Loss contingency, number of derivative actions | numberOfDerivativeActions | 3 | ||||||
Chen v. Reilly, et al. | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency, number of directors or officers | 13 |
Stock Option Plans - Narrative
Stock Option Plans - Narrative (Details) | Feb. 01, 2020shares | Jan. 03, 2019USD ($) | Mar. 31, 2017shares | Jan. 31, 2020USD ($)hourplan$ / sharesshares | Jan. 31, 2019USD ($)$ / sharesshares | Jan. 31, 2018USD ($)$ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of plans | plan | 2 | |||||
Shares reserved and available for future issuance (in shares) | shares | 13,530,363 | 19,117,696 | ||||
Stock-based compensation | $ 20,900,000 | $ 6,200,000 | ||||
Award expiration period (in years) | 10 years | |||||
Intrinsic value of exercised options | $ 26,200,000 | 31,200,000 | $ 64,100,000 | |||
Grant date fair value | 1,600,000 | $ 27,900,000 | $ 15,200,000 | |||
Weighted average grant date value of employee options (in dollars per share) | $ / shares | $ 4.58 | $ 8.67 | ||||
Unamortized stock based compensation expense | $ 300,000 | |||||
Average remaining vesting period (in years) | 9 months 18 days | |||||
Share-based compensation arrangement by share-based payment award, value withheld for future purchases | $ 2,700,000 | |||||
Employee stock purchase plan withholdings | $ 2,732,000 | $ 1,902,000 | ||||
Employee Stock Option | After one year | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period (in years) | 1 year | |||||
Award vesting (as a percent) | 25.00% | |||||
Restricted stock awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period (in years) | 4 years | |||||
Average remaining vesting period (in years) | 2 years 2 months 12 days | |||||
Granted (in dollars per share) | $ / shares | $ 8.96 | $ 12.08 | $ 16.93 | |||
Fair value of RSUs vested during period | $ 218,300,000 | $ 128,700,000 | $ 166,700,000 | |||
Unamortized stock based compensation expense RSUs | $ 366,600,000 | |||||
Restricted stock awards | After one year | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period (in years) | 1 year | |||||
Award vesting (as a percent) | 25.00% | |||||
Restricted stock awards | Remaining three years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period (in years) | 3 years | |||||
Minimum | Employee Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period (in years) | 3 years | |||||
Minimum | Employee Stock Option | Remaining three years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period (in years) | 2 years | |||||
Minimum | Restricted stock awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period (in years) | 3 years | |||||
Maximum | Employee Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period (in years) | 4 years | |||||
Maximum | Employee Stock Option | Remaining three years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period (in years) | 3 years | |||||
Maximum | Restricted stock awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period (in years) | 4 years | |||||
Equity Incentive Plan 2017 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restriction on increase to shares outstanding (as a percent) | 5.00% | |||||
Increase in shares reserved for grant (in shares) | shares | 14,758,388 | |||||
Shares reserved and available for future issuance (in shares) | shares | 13,269,006 | |||||
Employee Stock Purchase Plan 2017 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common issued or reserved for issuance (in shares) | shares | 30,000,000 | |||||
Restriction on increase to shares outstanding (as a percent) | 1.00% | |||||
Share purchase period (in years) | 6 months | |||||
Minimum weekly hours worked for plan eligibility | hour | 20 | |||||
Minimum months worked for plan eligibility | 5 months | |||||
Maximum ownership interest for plan participation (as a percent) | 5.00% | |||||
Purchase price (as a percent) | 85.00% | |||||
Maximum stock value purchased | $ 25,000 | |||||
Maximum shares purchased (in shares) | shares | 2,500 | |||||
Reserved for issuance under plans (in shares) | shares | 2,951,677 | 3,000,000 | ||||
Years for increasing shares included in plan | 10 years | |||||
Shares available for grant (in shares) | shares | 2,905,694 | |||||
Employee Stock Purchase Plan 2017 | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum payroll deduction (as a percent) | 1.00% | |||||
Employee Stock Purchase Plan 2017 | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum payroll deduction (as a percent) | 15.00% | |||||
Equity Incentive Plan 2008 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation | $ 181,500,000 | |||||
Equity Incentive Plan 2008 | Minimum | Restricted stock awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period (in years) | 3 years | |||||
Equity Incentive Plan 2008 | Maximum | Restricted stock awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period (in years) | 4 years | |||||
Hortonworks, Inc | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Fair value of stock awards assumed | $ 63,500,000 | |||||
Share based compensation, weighted average period | 1 year 6 months | |||||
Stock-based compensation | $ 13,100,000 | |||||
Average remaining vesting period (in years) | 1 year 6 months |
Stock Option Plans - Schedule o
Stock Option Plans - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Options Outstanding | ||
Balance at the beginning of the period (in shares) | 19,117,696 | |
Exercised (in shares) | (4,395,673) | |
Canceled (in shares) | (1,191,660) | |
Balance at the end of the period (in shares) | 13,530,363 | 19,117,696 |
Exercisable (in shares) | 13,478,227 | |
Vested and expected to vest (in shares) | 13,530,363 | |
Weighted- Average Exercise Price | ||
Balance at the beginning of the period (in dollars per share) | $ 5.83 | |
Exercised (in dollars per share) | 2.88 | |
Canceled (in dollars per share) | 15.25 | |
Balance at the end of the period (in dollars per share) | 5.96 | $ 5.83 |
Exercisable (in dollars per share) | 5.91 | |
Vested and expected to vest (in dollars per share) | $ 5.96 | |
Weighted-Average Remaining Contractual Term (Years) | ||
Balance | 2 years 1 month 6 days | 4 years 3 months 18 days |
Vested and Expected to Vest — January 31, 2020 | 2 years 1 month 6 days | |
Exercisable— January 31, 2020 | 2 years | |
Aggregate Intrinsic Value (in thousands) | ||
Balance | $ 70,057 | $ 154,431 |
Exercisable— January 31, 2020 | 70,057 | |
Vested and Expected to Vest — January 31, 2020 | $ 70,057 |
Stock Option Plans - Schedule_2
Stock Option Plans - Schedule of Weighted Average Assumptions in Calculating Option Fair Value (Details) - Employee Stock Option | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility (as a percent) | 45.00% | 45.30% |
Risk-free interest rate (as a percent) | 2.50% | 2.00% |
Expected term (in years) | 5 years | 6 years 1 month 6 days |
Expected dividends (as a percent) | 0.00% | 0.00% |
Stock Option Plans - Schedule_3
Stock Option Plans - Schedule of Restricted Stock Activity (Details) - Restricted stock awards - $ / shares | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Number of Restricted Stock Units | |||
Number of Restricted Stock Units Outstanding Beginning of Period (in shares) | 35,058,103 | ||
Granted (in shares) | 36,075,434 | ||
Canceled (in shares) | (9,276,310) | ||
Vested and converted to shares (in shares) | (23,273,233) | ||
Number of Restricted Stock Units Outstanding End of Period (in shares) | 38,583,994 | 35,058,103 | |
Weighted- Average Grant Date Fair Value Per Share | |||
Weighted- Average Grant Date Fair Value Per Share Beginning of Period (in dollars per share) | $ 13.25 | ||
Granted (in dollars per share) | 8.96 | $ 12.08 | $ 16.93 |
Canceled (in dollars per share) | 12.49 | ||
Vested and converted to shares (in dollars per share) | 11.15 | ||
Weighted- Average Grant Date Fair Value Per Share End of Period (in dollars per share) | $ 10.85 | $ 13.25 |
Stock Option Plans Stock Option
Stock Option Plans Stock Option Plans - Fair Value of ESPP Using Black-Scholes (Details) - Shares issuable pursuant to the ESPP | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility (as a percent) | 31.90% | 38.80% | 32.90% |
Risk-free interest rate (as a percent) | 1.90% | 2.40% | 1.20% |
Expected term (in years) | 6 months | 6 months | 7 months 6 days |
Expected dividends (as a percent) | 0.00% | 0.00% | 0.00% |
Income taxes - Schedule of Dome
Income taxes - Schedule of Domestic and Foreign Components of Loss before Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (340,542) | $ (191,479) | $ (372,466) |
Foreign | 12,660 | 4,248 | 4,873 |
Loss before provision for income taxes | $ (327,882) | $ (187,231) | $ (367,593) |
Income taxes - Schedule of Comp
Income taxes - Schedule of Components of Provision for Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Current: | |||
Federal | $ 0 | $ 0 | $ 0 |
State | (18) | (106) | (112) |
Foreign | (8,766) | (5,371) | (3,097) |
Total | (8,784) | (5,477) | (3,209) |
Deferred: | |||
Federal | 0 | 0 | 917 |
State | 0 | 0 | 0 |
Foreign | 84 | 59 | 213 |
Total | 84 | 59 | 1,130 |
Total provision for income taxes | $ (8,700) | $ (5,418) | $ (2,079) |
Income taxes - Reconciliation o
Income taxes - Reconciliation of Income Taxes at Statutory Federal Income Tax Rate to Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory income tax | $ 68,856 | $ 39,318 | $ 124,287 |
Research tax credits | 6,120 | 10,044 | 7,976 |
Stock-based compensation | (6,395) | (3,004) | (5,124) |
Change in valuation allowance | 8,566 | (42,450) | 2,907 |
Foreign tax rate differential | (6,384) | (4,945) | 0 |
Legal expenses | 0 | (4,000) | 0 |
Federal tax rate change | 0 | 0 | (132,387) |
Global intangible low-taxed income | (3,668) | 0 | 0 |
Non-deductible compensation | (1,150) | 0 | 0 |
Change in U.S. tax status of foreign entities | (72,449) | 0 | 0 |
Other | (2,196) | (381) | 262 |
Total provision for income taxes | $ (8,700) | $ (5,418) | $ (2,079) |
Income taxes - Schedule of Defe
Income taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Deferred tax assets: | ||
Accruals and reserves | $ 7,948 | $ 13,753 |
Deferred revenue | 28,621 | 0 |
Net operating loss carryforwards | 475,390 | 430,220 |
Research and development credits and other credits | 75,168 | 62,869 |
Stock-based compensation | 18,428 | 30,946 |
ROU assets/lease liability | 53,048 | |
Gross deferred tax assets | 658,603 | 537,788 |
Less valuation allowance | (459,649) | (454,278) |
Total deferred tax assets, net of valuation allowance | 198,954 | 83,510 |
Deferred tax liabilities: | ||
Depreciation and amortization | (128,825) | (61,285) |
Deferred revenue | 0 | (5,026) |
ROU assets/lease liability | (48,085) | |
Deferred costs | (21,609) | (16,768) |
Gross deferred tax liabilities | (198,519) | (83,079) |
Net deferred tax assets | $ 435 | $ 431 |
Income taxes - Narrative (Detai
Income taxes - Narrative (Details) - USD ($) | 12 Months Ended | |||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | ||||
Increase in valuation allowance | $ 5,400,000 | $ 182,900,000 | ||
Unrecognized tax benefits | 24,400,000 | $ 18,600,000 | $ 11,700,000 | $ 9,600,000 |
Income tax benefit, favorable impact on effective tax rate | 1,600,000 | |||
Income tax penalties and interest accrued | 0 | |||
Federal | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 1,900,000,000 | |||
Research and development credits and other credits | 56,900,000 | |||
State | ||||
Operating Loss Carryforwards [Line Items] | ||||
Research and development credits and other credits | 46,700,000 | |||
State | California | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 528,700,000 | |||
State | Other State Board | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | $ 682,100,000 |
Income taxes - Schedule of Chan
Income taxes - Schedule of Changes in Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | Jan. 03, 2019 | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Balance as of beginning of year | $ 18,600 | $ 11,700 | $ 9,600 | |
Gross increases | 600 | 0 | 0 | |
Tax positions taken in current period gross decreases | 0 | (1,000) | 0 | |
Tax positions taken in current period gross increases | 5,200 | 7,900 | 2,100 | |
Balance as of end of year | $ 24,400 | $ 18,600 | $ 11,700 | |
Hortonworks, Inc | ||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Tax positions taken in current period gross increases | $ 7,400 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - Affiliated Entity - Other Related Parties - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Revenue from Affiliated Companies | |||
Related Party Transaction [Line Items] | |||
Revenue from related party | $ 16.2 | $ 21.2 | $ 19.6 |
Accounts Receivable from Affiliated Companies | |||
Related Party Transaction [Line Items] | |||
Accounts receivable related party | $ 1.2 | $ 2.5 |
Segment Information - Schedule
Segment Information - Schedule of Financial Information by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 211,720 | $ 198,292 | $ 196,711 | $ 187,468 | $ 144,515 | $ 118,988 | $ 112,979 | $ 103,459 | $ 794,191 | $ 479,941 | $ 372,293 |
Contribution margin | 607,110 | 368,529 | 273,157 | ||||||||
Subscription | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 667,826 | 406,333 | 302,617 | ||||||||
Contribution margin | 577,899 | 356,214 | 258,771 | ||||||||
Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 126,365 | 73,608 | 69,676 | ||||||||
Contribution margin | $ 29,211 | $ 12,315 | $ 14,386 |
Segment Information - Reconcili
Segment Information - Reconciliation of Segment Financial Information to Loss from Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Contribution margin | $ 607,110 | $ 368,529 | $ 273,157 | |||||||||
Amortization of acquired intangible assets | (80,000) | (9,100) | (3,700) | |||||||||
Corporate costs, such as research and development, corporate general and administrative and other | [1],[2] | (901,443) | (537,591) | (588,430) | ||||||||
Loss from operations | $ (64,437) | $ (82,467) | $ (89,097) | $ (103,753) | $ (86,965) | $ (25,673) | $ (29,424) | $ (51,702) | (339,754) | (193,764) | (374,172) | |
Operating Segments | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Contribution margin | 607,110 | 368,529 | 273,157 | |||||||||
Corporate, Non-Segment | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Amortization of acquired intangible assets | (80,024) | (9,129) | (3,723) | |||||||||
Stock-based compensation expense | (220,354) | (117,365) | (290,006) | |||||||||
Corporate costs, such as research and development, corporate general and administrative and other | $ (646,486) | $ (435,799) | $ (353,600) | |||||||||
[1] | Amounts include amortization of acquired intangible assets as follows (in thousands): | |||||||||||
[2] | Amounts include stock-based compensation expense as follows (in thousands): |
Segment Information - Narrative
Segment Information - Narrative (Details) - Non-US - Geographic Concentration | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Revenue from Contract with Customer Benchmark | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 38.00% | 34.00% | 30.00% |
Total Assets | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 5.00% | 4.00% |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of the Calculation 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 | 12 Months Ended | |||||||||
Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Numerator: | |||||||||||
Net loss | $ (64,287) | $ (82,122) | $ (87,043) | $ (103,130) | $ (85,521) | $ (25,857) | $ (28,949) | $ (52,322) | $ (336,582) | $ (192,649) | $ (369,672) |
Denominator: | |||||||||||
Weighted-average shares used in computing net loss per share, basic and diluted (in shares) | 280,772 | 159,816 | 114,141 | ||||||||
Net loss per share, basic and diluted (in dollars per share) | $ (0.22) | $ (0.29) | $ (0.31) | $ (0.38) | $ (0.45) | $ (0.17) | $ (0.19) | $ (0.36) | $ (1.20) | $ (1.21) | $ (3.24) |
Net Loss Per Share - Schedule_2
Net Loss Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 53,083 | 54,900 | 41,172 |
Stock options to purchase common stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 13,530 | 19,118 | 18,407 |
Restricted stock awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 38,584 | 35,058 | 22,243 |
Shares issuable pursuant to the ESPP | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 969 | 724 | 522 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | ||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Revenue | $ 211,720 | $ 198,292 | $ 196,711 | $ 187,468 | $ 144,515 | $ 118,988 | $ 112,979 | $ 103,459 | $ 794,191 | $ 479,941 | $ 372,293 | |||
Gross profit | 155,209 | 140,664 | 139,581 | 126,235 | 103,860 | 89,012 | 80,847 | 70,108 | 561,689 | [1],[2] | 343,827 | [1],[2] | 214,258 | [1],[2] |
Loss from operations | (64,437) | (82,467) | (89,097) | (103,753) | (86,965) | (25,673) | (29,424) | (51,702) | (339,754) | (193,764) | (374,172) | |||
Net loss | $ (64,287) | $ (82,122) | $ (87,043) | $ (103,130) | $ (85,521) | $ (25,857) | $ (28,949) | $ (52,322) | $ (336,582) | $ (192,649) | $ (369,672) | |||
Net loss per share, basic and diluted (in dollars per share) | $ (0.22) | $ (0.29) | $ (0.31) | $ (0.38) | $ (0.45) | $ (0.17) | $ (0.19) | $ (0.36) | $ (1.20) | $ (1.21) | $ (3.24) | |||
[1] | Amounts include amortization of acquired intangible assets as follows (in thousands): | |||||||||||||
[2] | Amounts include stock-based compensation expense as follows (in thousands): |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | |
Mar. 27, 2020 | Mar. 03, 2020 | |
Subsequent Event [Line Items] | ||
Stock repurchase program, number of shares authorized to be repurchased (in shares) | 100,000,000 | |
Payments for repurchase of common stock | $ 26 | |
Stock repurchased during period, shares (in shares) | 3,900,000 | |
Treasury stock acquired, average cost per share (in usd per share) | $ 6.56 |