Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 31, 2017 | Dec. 05, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Oct. 31, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | TNTR | |
Entity Registrant Name | Tintri, Inc. | |
Entity Central Index Key | 1,554,875 | |
Current Fiscal Year End Date | --01-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 31,324,097 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 31, 2017 | Jan. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 48,899 | $ 48,048 |
Short-term investments | 5,994 | 0 |
Accounts receivable, net | 21,161 | 30,749 |
Inventories, net | 6,958 | 6,509 |
Prepaid and other current assets | 4,698 | 6,202 |
Total current assets | 87,710 | 91,508 |
Property and equipment, net | 10,223 | 10,410 |
Other long-term assets | 3,011 | 2,984 |
Total assets | 100,944 | 104,902 |
Current liabilities: | ||
Accounts payable | 15,424 | 15,674 |
Accrued and other current liabilities | 18,417 | 20,668 |
Deferred revenue, current | 31,414 | 28,056 |
Long-term debt, current portion | 18,962 | 0 |
Total current liabilities | 84,217 | 64,398 |
Deferred revenue, non-current | 30,366 | 28,389 |
Long-term debt | 49,607 | 48,914 |
Other long-term liabilities | 5,150 | 5,041 |
Total liabilities | 169,340 | 146,742 |
Commitments and contingencies (Note 6) | ||
Convertible preferred stock | 257,141 | |
Stockholders’ deficit: | ||
Common stock | 2 | 1 |
Additional paid-in capital | 373,126 | 41,745 |
Notes receivables from stockholders | (747) | (1,544) |
Accumulated other comprehensive loss | (325) | (466) |
Accumulated deficit | (439,241) | (338,717) |
Treasury stock | (1,211) | |
Total stockholders’ deficit | (68,396) | (298,981) |
Total liabilities, convertible preferred stock and stockholders’ deficit | $ 100,944 | $ 104,902 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Revenue: | ||||
Product | $ 22,758 | $ 26,871 | $ 71,474 | $ 64,316 |
Support and maintenance | 9,014 | 7,046 | 25,519 | 20,033 |
Total revenue | 31,772 | 33,917 | 96,993 | 84,349 |
Cost of revenue: | ||||
Product | 9,757 | 8,953 | 30,136 | 22,049 |
Support and maintenance | 3,095 | 2,424 | 9,816 | 7,064 |
Total cost of revenue | 12,852 | 11,377 | 39,952 | 29,113 |
Gross Profit: | ||||
Product | 13,001 | 17,918 | 41,338 | 42,267 |
Support and maintenance | 5,919 | 4,622 | 15,703 | 12,969 |
Total gross profit | 18,920 | 22,540 | 57,041 | 55,236 |
Operating expenses: | ||||
Research and development | 17,287 | 13,227 | 55,290 | 39,875 |
Sales and marketing | 28,435 | 27,862 | 88,484 | 77,324 |
General and administrative | 8,061 | 3,955 | 26,564 | 14,541 |
Restructuring charges | 890 | 0 | 890 | 0 |
Total operating expenses | 54,673 | 45,044 | 171,228 | 131,740 |
Loss from operations | (35,753) | (22,504) | (114,187) | (76,504) |
Other expense, net: | ||||
Interest expense | (2,170) | (1,231) | (6,242) | (4,044) |
Other income, net | 130 | 54 | 585 | 735 |
Total other expense, net | (2,040) | (1,177) | (5,657) | (3,309) |
Loss before provision for income taxes | (37,793) | (23,681) | (119,844) | (79,813) |
Provision for income taxes | 132 | 89 | 428 | 440 |
Net loss | (37,925) | (23,770) | (120,272) | (80,253) |
Deemed dividend to Series E and E-1 Convertible Preferred Stock | 0 | 0 | (6,588) | 0 |
Impact of adjustment to Series E, E-1 and F Convertible Preferred Stock | 0 | 0 | 26,336 | 0 |
Net loss attributable to common stockholders | $ (37,925) | $ (23,770) | $ (100,524) | $ (80,253) |
Net loss per share attributable to common stockholders— basic and diluted | $ (1.21) | $ (6.87) | $ (6.33) | $ (23.52) |
Weighted-average shares used in computing net loss per share attributable to common stockholders—basic and diluted | 31,291,513 | 3,459,860 | 15,873,071 | 3,412,447 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net loss | $ (37,925) | $ (23,770) | $ (120,272) | $ (80,253) |
Other comprehensive income (loss), net of taxes: | ||||
Unrealized gains on available-for-sale investments | 2 | 14 | ||
Foreign currency translation adjustments | 12 | (157) | 141 | (261) |
Comprehensive loss, net of taxes | $ (37,913) | $ (23,925) | $ (120,131) | $ (80,500) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | ||
Cash flows from operating activities: | |||
Net loss | $ (120,272) | $ (80,253) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 5,330 | 7,137 | |
Stock-based compensation expense | 37,770 | 10,742 | |
Excess tax benefit from stock-based compensation | 0 | 47 | |
Accretion of balloon payment | 1,221 | 501 | |
Amortization of debt issuance cost, credit facility fees and debt discounts | 172 | 230 | |
Restructuring charges | (940) | [1] | 0 |
Other | (13) | (27) | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 9,588 | (4,132) | |
Inventories | (449) | (1,352) | |
Prepaid expenses and other assets | (659) | (1,436) | |
Payment of offering costs | (3,892) | (2,113) | |
Accounts payable | (1,859) | 4,462 | |
Deferred revenue | 5,335 | 7,710 | |
Accrued and other liabilities | (2,943) | 280 | |
Net cash used in operating activities | (71,611) | (58,204) | |
Cash flows from investing activities: | |||
Purchase of property and equipment | (4,100) | (3,431) | |
Purchase of investments | (11,513) | (13,807) | |
Proceeds from maturities of investments | 5,519 | 66,692 | |
Net cash provided by (used in) investing activities | (10,094) | 49,454 | |
Cash flows from financing activities: | |||
Payment on capital lease financing | (216) | (178) | |
Proceeds from revolving line of credit | 5,000 | 6,962 | |
Proceeds from term loan | 15,000 | 0 | |
Proceeds from initial public offering, net of underwriting discounts and commissions | 62,314 | 0 | |
Proceeds from repayment of employee notes receivable | 0 | 101 | |
Proceeds from exercise of stock options | 470 | 1,459 | |
Net cash provided by financing activities | 82,568 | 8,344 | |
Foreign exchange impact on cash and cash equivalents | (12) | (48) | |
Net increase (decrease) in cash and cash equivalents | 851 | (454) | |
Cash and cash equivalents, beginning of period | 48,048 | 50,716 | |
Cash and cash equivalents, end of period | 48,899 | 50,262 | |
Supplemental disclosures of cash flow information: | |||
Cash paid for income taxes | 120 | 945 | |
Cash paid for interest | 4,942 | 2,971 | |
Supplemental disclosures of noncash investing and financing activities: | |||
Common stock warrants issued to Series E-2 and F-2 Holders | 14,641 | 0 | |
Conversion of convertible preferred stock to common stock, net of issuance costs | 263,729 | 0 | |
Vesting of early exercised options | 833 | 48 | |
Assets acquired through accounts payable | 814 | 431 | |
Deemed dividend to series E and E-1 Convertible Preferred Stock | 6,588 | 0 | |
Deemed capital contribution from Series E, E-1 and F Convertible Preferred Stock | 26,336 | 0 | |
Repurchase of common stock by way of note forgiveness | 1,211 | 0 | |
Repayment of executive employee promissory notes through repurchase of common stock | $ 7,899 | $ 0 | |
[1] | The non-cash adjustments to restructuring charges primarily consist of the reversal of previously recognized stock-based compensation expense related to awards that will not vest and the reversal of incentive compensation that will not be paid as a result of the restructuring plan. |
Business Overview
Business Overview | 9 Months Ended |
Oct. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Business Overview | (1) Business Overview Description of Business Tintri, Inc. (Tintri or the Company) was incorporated in the state of Delaware in 2008 and is headquartered in Mountain View, California. The Company develops and markets an enterprise cloud platform combining cloud management software technology and a range of all-flash storage systems, for virtualized and cloud environments. Initial Public Offering In July 2017, the Company completed its initial public offering (IPO), in which it sold 8,572,000 shares of common stock. The shares were sold at an IPO price of $7.00 per share for net proceeds of $55.8 million, after deducting underwriting discounts and commissions of $4.2 million. Immediately prior to the closing of the Company’s IPO, all shares of the Company’s then-outstanding convertible preferred stock automatically converted into an aggregate 17,992,973 shares of common stock in accordance with the terms of each series of preferred stock. Following the completion of the IPO, the IPO underwriters exercised an over-allotment option to purchase an additional 1,000,000 shares of common stock from the Company in August 2017. The additional shares were sold at the IPO price of $7.00 per share for net proceeds of $6.5 million, after deducting underwriting discounts and commissions of $0.5 million. Unaudited Interim Condensed Consolidated Financial Information The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (the SEC) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s prospectus (the Prospectus) filed pursuant to Rule 424(b) under the Securities Exchange Act of 1933, as amended, with the SEC on June 30, 2017. The condensed consolidated balance sheet as of January 31, 2017, included herein was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by U.S. GAAP on an annual reporting basis. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year 2018 or any future period. Liquidity The Company has experienced negative cash flows from operations since its inception and expects negative cash flows from operations to continue for the foreseeable future. Net losses incurred during the past three fiscal years ended January 31, 2015, 2016 and 2017 amounted to $69.7 million, $101.0 million and $105.8 million, respectively, and $120.3 million for the nine months ended October 31, 2017. Unless and until the Company is able to generate sufficient revenue from sales of its products and services to generate positive cash flows from operations, it expects such losses to continue. The Company is also subject to certain financial covenants related to its debt facilities that, if breached, could result in the debt becoming immediately due and payable in the event the lenders choose to declare an event of default. The Company may not have sufficient liquidity to repay amounts outstanding under its debt facilities should they become immediately due and payable. Historically, the Company has funded a significant portion of its operations through the issuance of equity and debt. In fiscal 2016, the Company raised $124.6 million in gross proceeds (Note 7) related to the sale of convertible preferred stock. The Company has also entered into credit facilities, under which the Company had borrowed an aggregate of $69.0 million as of October 31, 2017, and a Note Purchase Agreement (Note 5). In July 2017, the Company completed its IPO, in which it raised $55.8 million, after deducting underwriting discounts and commission of $4.2 million Until the Company can generate positive cash flows from operations, it expects to continue to finance its operations with additional debt or equity financing and/or work with its lenders to amend certain financial covenants. The Company’s ability to raise additional liquidity is subject to a number of uncertainties, including, but not limited to, the market demand for the Company’s common or preferred stock, the Company’s financial performance and outlook, the market demand for the Company’s products and services, negative economic developments, adverse market conditions, significant delays in launch of new products and lack of market acceptance of new products. If the Company is not able to raise additional capital or access its debt facilities in sufficient amounts to fund its operations, it would have a material adverse effect on the Company’s business, operating results and financial condition. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Oct. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | (2) Basis of Presentation and Summary of Significant Accounting Policies Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of the accompanying condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Such estimates include, but are not limited to, the determination of the fair value of deliverables included in multiple element revenue arrangements, valuation of inventories, warranty liability, the useful lives of property and equipment, fair value of the Company’s common stock, value of convertible preferred stock warrant liability, the value of stock options granted, accounting for income taxes, including the valuation reserve on deferred tax assets and accounting for uncertain tax positions, and contingencies. Actual results could differ materially from these estimates. Management evaluates these estimates and assumptions on an ongoing basis using historical experience and other factors and makes adjustments when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could materially differ from those estimates and assumptions. Concentrations The Company’s financial instruments that are exposed to concentrations of credit risk are primarily cash and cash equivalents, investments, and accounts receivable. Cash and cash equivalents, and investments are maintained primarily at one financial institution, and deposits will generally exceed the amount of insurance provided on such deposits. Risks associated with cash and cash equivalents, and investments are mitigated by banking with a creditworthy institution. The Company has not experienced any losses on its deposits of cash and cash equivalents or its investments. The Company sells its products primarily through channel partners and distributors (collectively, Partners), and occasionally directly to customers. The Company’s accounts receivable are unsecured and represent amounts due to the Company based on contractual obligations of the Company’s Partners and direct customers. The Company mitigates credit risk with respect to accounts receivable by performing ongoing credit evaluations of its Partners and direct customers to assess the probability of collection based on a number of factors, including, but not limited to, past transaction experience with its Partners and direct customers, evaluation of their credit history, limiting the credit extended, and review of the invoicing terms of the contract. The Company generally does not require its Partners and direct customers to provide collateral to support accounts receivable. The Company records an allowance for doubtful accounts for those receivables that are determined not to be collectible. Partners or direct customers representing greater than 10% of the Company’s revenue and accounts receivable are as follows: Revenue for the Three Months Ended October 31, Revenue for the Nine Months Ended October 31, Accounts Receivable as of January 31, Accounts Receivable as of October 31, 2016 2017 2016 2017 2017 2017 Partner A * 36% * 27% 16% 37% * Represents less than 10%. The Company outsources substantially all of its manufacturing to one independent contract manufacturer. The inability of the manufacturer or supplier to fulfill the Company’s supply or quality requirements or performance failures of the Company’s products could result in lost sales and damage to the Company’s end-customer relationships, which would adversely impact the Company’s business, financial condition and operating results. Foreign Currency Translation and Transactions The financial position and operating results of the Company’s international subsidiaries in the United Kingdom (U.K.), Japan, Ireland, Singapore, Australia, and Canada have been measured using their respective local currency as the functional currency. Assets and liabilities are translated into U.S. dollars at the exchange rate in effect on the respective condensed consolidated balance sheet date. Revenue and expenses are translated into U.S. dollars using average exchange rates for the corresponding period. Translation adjustments are recorded within other comprehensive loss as a separate component of stockholders’ deficit. There is no income tax effect of currency translation adjustments related to foreign subsidiaries as the Company has no present intention of remitting the undistributed earnings of its foreign subsidiaries. Gains and losses from the remeasurement of foreign currency-denominated balances into the functional currency are included in Other income, net in the Company’s condensed consolidated statements of operations. Remeasurement gains and losses were immaterial for the three and nine months ended October 31, 2016 and 2017. Fair Value of Financial Instruments The carrying value of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, investments, accounts payable and accrued and other current liabilities, approximates fair value due to the short period of time to maturity, receipt or payment. The carrying amount of the Company’s revolving line of credit and term loan approximates its fair value as the stated interest rates approximate market rates currently available to the Company. Cash and Cash Equivalents The Company considers all highly liquid investments, such as money market funds, with original maturities of 90 days or less at date of purchase, to be cash equivalents. Cash and cash equivalents consist principally of checking account deposits and money market funds. Accounts Receivable Accounts receivable are recorded at the invoiced amounts and do not bear interest. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio and an allowance for returns. An allowance for doubtful accounts is determined based on the aging of the Company’s trade receivables, historical experience, and management judgment. The Company writes off trade receivables against the allowance when management determines a balance is uncollectible and no longer actively pursues collection of the receivable. An allowance for returns is determined based on historical returns and management judgment. As of January 31, 2017 and October 31, 2017, allowance for doubtful accounts was $0.1 million and $0, respectively. Allowance for returns was $0.3 million and $0.4 million as of January 31, 2017 and October 31, 2017, respectively. Inventories Inventories consist primarily of raw materials related to component parts and finished goods. Finished goods include inventory held for sale, service inventory held at third-party service inventory depots in support of customer service agreements, and customer evaluation inventory. The following is a summary of the Company’s inventories by major category (in thousands): As of January 31, As of October 31, 2017 2017 Raw materials $ 264 $ 390 Finished goods 6,245 6,568 $ 6,509 $ 6,958 Inventory values are stated at the lower of cost (on a first-in, first-out method), or market value. A provision is recorded to adjust inventory to its estimated realizable value when inventory is determined to be in excess of anticipated demand or obsolete. Specifically, customer support inventory is written down to its net realizable value based upon the estimated loss of utility starting from the date the customer support inventory is placed in the third-party service inventory depots through the estimated period of service obligation fulfillment; and customer evaluation inventory is periodically reviewed and reserved for excess and obsolescence. The Company recorded inventory write-downs of $0.9 million and $1.4 million for the nine months ended October 31, 2016 and 2017, respectively, of which $0 and $0.3 million, respectively, were recorded in cost of product revenue and $0.9 million and $1.1 million, respectively, were recorded in cost of support and maintenance revenue in the condensed consolidated statements of operations. Inventory write-downs for the three months ended October 31, 2016 and 2017 were $0.3 million and $0.5 million, respectively, of which $0 and $0.1 million, respectively, were recorded in cost of product revenue and $0.3 million and $0.4 million, respectively, were recorded in cost of support and maintenance revenue in the condensed consolidated statements of operations. Investments The Company’s primary objectives of its investment activities are to preserve principal, provide liquidity, and maximize income without significantly increasing risk. Some of the securities the Company invests in are subject to interest risk. To minimize this risk, the Company maintains its portfolio of cash, cash equivalents, short-term and long-term investments in a variety of securities, which may include commercial paper, money market funds, U.S. government and agency securities, and corporate debt securities. The Company classifies its investments as available-for-sale at the time of purchase since it is intended that these investments are available for current operations, and include these investments on the accompanying condensed consolidated balance sheets as either short-term or long-term investments depending on their maturity. Investments not considered cash equivalents and with maturities of one year or less from the condensed consolidated balance sheet date are classified as short-term investments. Investments with maturities greater than one year from the condensed consolidated balance sheet date are classified as long-term investments. Investments are reported at fair value and are subject to periodic impairment review. Unrealized gains and losses related to changes in the fair value of these securities are recognized in accumulated other comprehensive loss net of tax, unless they are determined to be other-than-temporary impairments. The ultimate value realized on these securities is subject to market price volatility until they are sold. Investments are considered impaired when a decline in fair value is judged to be other-than-temporary. The Company consults with investment managers and considers available quantitative and qualitative evidence in evaluating potential impairment of investments on a quarterly basis. If the cost of an individual investment exceeds its fair value, the Company evaluates, among other factors, general market conditions, the duration and extent to which the fair value is less than cost, and the Company’s intent and ability to hold the investment to maturity. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis in the investment is established. Property and Equipment, Net Property and equipment, including leasehold improvements, are stated at cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Depreciation on property and equipment, excluding leasehold improvements and sales demonstration equipment, ranges from 24 to 60 months. Sales demonstration equipment is depreciated over the estimated useful lives of the respective assets, which range up to 24 months. Leasehold improvements are amortized over the shorter of the estimated useful lives of the respective assets or the remaining property lease terms, which range up to eight years. Upon the retirement or disposition of property and equipment, the related costs and accumulated depreciation are removed and any related gain or loss is recorded in the condensed consolidated statements of operations as an operating expense. Impairment of Long-Lived Assets The Company evaluates events and changes in circumstances that could indicate carrying amounts of long-lived assets, consisting of property and equipment, may not be recoverable. When such events or changes in circumstances occur, the Company assesses the recoverability of long-lived assets by determining whether or not the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future undiscounted cash flows is less than the carrying amount of an asset, the Company records an impairment charge for the amount by which the carrying amount of the asset exceeds the fair value of the asset. When the Company determines that the useful lives of assets are shorter than was originally estimated, the Company accelerates the rate of depreciation over the assets’ new, shorter useful lives. Through October 31, 2017, the Company did not write down any of its long-lived assets as a result of impairment. Warranties The Company provides a one-year warranty for hardware components covering material defects in materials and workmanship. In addition, the Company provides a 90-day warranty on the software in its products for nonconformance with documented specifications. With respect to the hardware warranty obligation, the Company’s contract manufacturer is generally required to repair or replace defective hardware resulting from defective workmanship within one year of shipment. Furthermore, the Company’s support contracts provide for the same parts replacement that end-users are entitled to under the warranty program, except that replacement parts are delivered according to targeted response times to minimize disruption to the end-users’ critical business applications. Substantially all end-users purchase support contracts. Given that substantially all products are sold together with support contracts, the Company has limited exposure related to warranty costs and therefore no warranty reserve has been recorded. Revenue Recognition The Company generates revenue from sales of enterprise cloud platform solutions and related support and maintenance. The Company derives revenue primarily from two sources: (i) Product revenue, which includes hardware and perpetual software license revenue and (ii) Support and maintenance revenue, which includes support, installation services and training. Revenue is recognized when all of the following criteria are met: persuasive evidence of an arrangement exists; the product or service has been delivered; the sales price is fixed or determinable; and collection is reasonably assured. The Company defines each of the four criteria above as follows: • Persuasive Evidence of an Arrangement Exists. The Company uses stand-alone purchase orders, signed sales quotations or purchase orders pursuant to the terms and conditions of a master sales agreement to support the evidence of an arrangement with Partners and direct customers. • Delivery has Occurred. The Company uses shipping documentation to verify delivery of products. Provided that all other revenue recognition criteria have been met, the Company typically recognizes product revenue upon shipment, as title and risk of loss are transferred at that time. Products are typically shipped directly by the Company to Partners and direct customers. Support and maintenance revenue is recognized over time as the services are delivered. The Company generally does not have significant obligations for future performance, such as rights of return or pricing credits, associated with the sales of its products. It is the Company’s practice to identify an end user prior to shipment to a Partner. • The Sales Price is Fixed or Determinable. The Company assesses whether the fee is fixed or determinable based on the payment terms associated with the transaction. If the terms are extended beyond the Company’s normal payment terms, the Company will recognize revenue as the payments become due. Payments from Partners are not contingent on the Partners’ receiving payment from the end-users. • Collection is Reasonably Assured. The Company assesses probability of collection on an individual basis. The Company’s Partners or customers are subjected to a credit review process that evaluates their financial condition and ability to pay. Support and maintenance revenue includes arrangements for software and technical support for the Company’s products. While purchasing support and maintenance is not mandatory, substantially all products shipped have been purchased together with a support contract. Support is offered under renewable, fee-based contracts and includes technical support, hardware repair and replacement parts, and software patches, bug fixes, updates, and upgrades. Support and maintenance revenue is initially deferred and recognized ratably over the life of the contract, with the related expenses, including the write down of customer support inventory to its net realizable value, recognized as incurred. Support and maintenance contracts range from one to five years. Unearned support revenue is included in deferred revenue. Professional service revenue primarily consists of fees the Company earns related to installation. While installation services are not contractually mandatory, customers occasionally purchase such services. The Company generally recognizes revenue from installation services upon delivery or completion of performance. Installation services are typically short term in nature. To date, revenue arising from installation service has been insignificant. The Company reports revenue net of sales taxes. Shipping charges billed to customers are included in product revenue and the related shipping and handling costs are included in cost of product revenue. Multiple Element Arrangements The Company’s offering consists of hardware products containing software components that function together to provide the essential functionality of the product. Therefore, the Company’s hardware products (inclusive of the core software) are considered non-software deliverables and are not subject to industry-specific software revenue recognition guidance. The Company’s product revenue also includes revenue from the sale of stand-alone software products. Stand-alone software may operate on the Company’s hardware product, but is not considered essential to the functionality of the hardware and is subject to the industry-specific software revenue recognition guidance. The Company’s typical multiple element arrangement includes hardware product (including the essential software) and support. The Company may also sell stand-alone software as part of its multiple element arrangements. The Company considers each of these deliverables to be separate units of accounting based on whether the delivered items have stand-alone value. The Company has determined that each unit of accounting has stand-alone value because they are sold separately by the Company or, for hardware products, because the customers can resell them to others on a stand-alone basis. For certain arrangements with multiple deliverables, the Company allocates the arrangement fee to the non-software element based upon the relative selling price of such element and, if software and software-related elements such as support for the software element are also included in the arrangement, the Company allocates the arrangement fee to those software and software-related elements as a group. After such allocations are made, the amount of the arrangement fee allocated to the software and software-related elements is accounted for using the residual method. When applying the relative selling price method, the Company determines the selling price for each element using vendor-specific objective evidence (VSOE) of selling price, if it exists, or if not, third-party evidence (TPE) of selling price, if it exists. If neither VSOE nor TPE of selling price exist for an element, the Company uses its best estimated selling price (BESP) for that element. The revenue allocated to each element is then recognized when the basic revenue recognition criteria are met for that element. When an arrangement includes stand-alone software products and related support, consideration is allocated to the software deliverable as described above. The Company uses the residual method to recognize revenue related to this consideration when a product agreement includes one or more elements to be delivered at a future date and VSOE of the fair value of all undelivered elements exists. In the majority of the Company’s contracts, the only element that remains undelivered at the time of delivery of the product is support services. Under the residual method, the VSOE of fair value of the undelivered elements is deferred and the remaining portion of the contract fee is recognized upfront as product revenue. If evidence of the VSOE of fair value of the undelivered elements does not exist, all revenue is deferred and recognized at the earlier of (i) when delivery of those elements occurs or (ii) when fair value can be established unless support services is the only undelivered element, in which case, the entire arrangement fee is recognized ratably over the contractual period of the support services. VSOE of fair value for elements of an arrangement is based upon the normal pricing and discounting practices for those deliverables when sold separately. In determining VSOE, the Company requires that a substantial majority of the selling prices for a deliverable fall within a reasonably narrow pricing range, evidenced by a substantial majority of such historical stand-alone transactions falling within a reasonably narrow range. The Company is not able to determine TPE for its products or services. TPE is determined based on competitor prices for similar deliverables when sold separately. Generally, the Company’s go-to-market strategy differs from that of its peers and its offerings contain a significant level of differentiation such that the comparable pricing of products with similar functionality cannot be obtained. Furthermore, the Company is unable to reliably determine what similar competitor products’ selling prices are on a stand-alone basis. When the Company is unable to establish the selling price of its deliverables using VSOE or TPE, the Company uses BESP in its allocation of arrangement consideration. The objective of BESP is to determine the price at which we would transact a sale if the product or service were sold on a stand-alone basis. The Company determines BESP for the purposes of allocating the arrangement by reviewing market factors including, but not limited to, pricing practices including discounting, the geographies in which the Company offers its products and services, and the type of customer (i.e., Partners or direct customers). Additionally, the Company considers historical transactions, including transactions whereby the deliverable was sold on a stand-alone basis. Deferred revenue consists of billings or payments received in advance of revenue recognition and primarily relates to support and maintenance. Deferred revenue that will be recognized during the twelve-month period following the balance sheet date is recorded as Deferred revenue, current and the remaining portion is recorded as Deferred revenue, non-current. Research and Development Research and development expense consists of personnel costs, including stock-based compensation expense, for the Company’s research and development personnel and product development costs, including engineering services, development software and hardware tools, depreciation of capital equipment, facility costs, and information technology spend. Research and development costs are expensed as incurred. All costs incurred in the research and development of the Company’s software products are expensed as incurred until technological feasibility has been established. As of January 31, 2017 and October 31, 2017, there were no capitalized computer software development costs as the time between technological feasibility and general release is short. Advertising Costs Advertising costs are expensed as incurred and are included in sales and marketing expense. Advertising costs for the nine months ended October 31, 2016 and 2017 were $0.6 million and $2.2 million, respectively. Advertising costs for the three months ended October 31, 2016 and 2017 were $0.2 million and $0.3 million, respectively. Commission Costs Commission costs are expensed as incurred and are included in sales and marketing expense. Stock-Based Compensation Stock Options The Company measures and recognizes compensation expense for all stock-based awards made to employees based on estimated fair values on the date of grant. The Company uses the Black-Scholes option pricing model to estimate the value of stock-based compensation expense for all stock options. The related stock-based compensation expense is recognized on a straight-line basis, over the period in which an employee is required to provide service in exchange for the stock-based award, which is generally four years. Restricted Stock Units Stock-based compensation expense is measured and recognized in the financial statements based on the fair value of the Company’s common stock on the date of grant. Stock-based compensation expense is recognized over the requisite service period, and upon performance conditions being met. Income Taxes The Company recognizes income taxes under the asset-and-liability method. The Company recognizes deferred income tax assets and liabilities for the expected future consequences of temporary differences between the financial reporting and tax bases of assets and liabilities. These differences are measured using the enacted statutory tax rates that are expected to apply to taxable income for the years in which differences are expected to reverse. The Company recognizes the effect on deferred income taxes of a change in tax rates in income in the period that includes the enactment date. The Company records a valuation allowance to reduce its deferred tax assets to the net amount that the Company believes is more likely than not to be realized. The Company considers all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income, and ongoing tax planning strategies in assessing the need for a valuation allowance. Realization of deferred tax assets is dependent upon the generation of future taxable income, if any, the timing and amount of which are uncertain. Due to the history of losses the Company has generated in the past, the Company believes that it is not more likely than not that the deferred tax assets will be realized as of October 31, 2017. Accordingly, the Company has recorded a full valuation allowance on its net deferred tax assets. The Company recognizes tax benefits from uncertain tax positions only if they believe that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The Company makes adjustments to these reserves when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. The provision for income taxes includes the effects of any reserves that are considered appropriate, as well as the related net interest and penalties. The Company expects to permanently reinvest undistributed earnings in foreign subsidiaries outside of the United States to fund future foreign operations. The Company projects that it will have sufficient cash flow in the United States and will not need to repatriate the foreign earnings to finance its domestic operations. If the Company were to distribute these earnings to the United States, it would be subject to U.S. income taxes, less any allowable foreign tax credits, and foreign withholding taxes. The Company has not recorded a deferred tax liability on any portion of its undistributed earnings in foreign subsidiaries. If the Company were to repatriate these earnings to the United States, any associated income tax liability would be insignificant. Recently Issued and Not Yet Adopted Accounting Pronouncements In May 2017, the Financial Accounting Standard Board (FASB) issued Accounting Standards Update (ASU) No. 2017-09, Scope of Modification Accounting. In August 2016, FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments In February 2016, FASB issued ASU No. 2016-02, Leases. In May 2014, FASB issued ASU, 2014-09, Revenue from Contracts with Customers The Company has engaged third party service providers to assist in its evaluation and system implementation. Furthermore, the Company has made and will continue to make investments in systems to enable timely and accurate reporting under the new standard. While the Company continues to assess the potential impact of the new standard, including the areas described above, it has not yet quantified the impact the new standard may have on its consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (3) Fair Value Measurements The Company categorizes assets and liabilities recorded at fair value on its condensed consolidated balance sheets based on the accounting guidance framework for measuring fair value on either a recurring or nonrecurring basis, whereby inputs used in valuation techniques are assigned a hierarchical level. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. U.S. GAAP describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, to measure the fair value: • Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2—Inputs are quoted prices for similar assets and liabilities in active markets; or quoted prices for identical assets or liabilities in less active markets; or benchmark yields, reported trades, broker/dealer quotes or inputs other than quoted prices that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments. The valuation techniques leverage an independent professional pricing service that uses calculated prices whereby securities with short maturities and infrequent secondary market trades are typically priced via mathematical calculations, cross-market approach, and model valuation methods, which are corroborated by market data. • Level 3—Inputs are unobservable inputs based on the Company’s own assumptions used to measure assets and liabilities at fair value. The inputs require significant management judgment or estimation. Fair value estimates are made at a specific point in time based on relevant market information and information about the financial or nonfinancial asset or liability. These estimates are subjective in nature and involve uncertainties or significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. The following table presents the fair value of the Company’s financial assets and liabilities using the above input categories as of January 31, 2017 and October 31, 2017 (in thousands): As of January 31, 2017 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 31,468 $ — $ — $ 31,468 Total cash equivalents 31,468 — — 31,468 Total assets measured at fair value $ 31,468 $ — $ — $ 31,468 Convertible preferred warrants: Series E Convertible Preferred Stock warrants (1) $ — $ — $ 568 $ 568 Total convertible preferred stock warrants — — 568 568 Total liabilities measured at fair value $ — $ — $ 568 $ 568 As of October 31, 2017 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 31,685 $ — $ — $ 31,685 Total cash equivalents 31,685 — — 31,685 Short-term investments: Corporate debt securities — 5,994 — 5,994 Total short-term investments — 5,994 — 5,994 Total assets measured at fair value $ 31,685 $ 5,994 $ — $ 37,679 (1) Series E Convertible Preferred Stock Convertible Preferred Stock warrant liability is included in Other long-term liabilities in the accompanying condensed consolidated balance sheet. Immediately prior to the closing of the IPO, all convertible preferred stock warrants automatically converted into common stock warrants. A summary of the changes in the fair value of the Company’s convertible preferred stock warrant liability is as follows (in thousands): January 31, October 31, 2017 2017 Convertible preferred stock warrant liability—beginning balance $ 532 $ 568 Change in fair value (1) 36 (470 ) Issuance of convertible preferred stock warrants — 277 Reclassification of convertible preferred stock warrant liability to additional paid in capital — (375 ) Convertible preferred stock warrant liability—ending balance $ 568 $ — (1) Recorded in the condensed consolidated statements of operations within Other income, net. The Company did not have any material financial assets or liabilities for which fair value is determined using Level 3 inputs other than convertible preferred stock warrants and common stock warrants, which are discussed further in Note 7 Convertible Preferred Stock Common Stock, |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Oct. 31, 2017 | |
Balance Sheet Components Disclosure [Abstract] | |
Balance Sheet Components | (4) Balance Sheet Components Short-Term Investments The Company did not have any investments as of January 31, 2017. Unrealized gains or losses from the Company’s short-term investments were immaterial as of October 31, 2017. There was no other-than-temporary impairment for these investments as of October 31, 2017. The following table summarizes the fair value of the Company’s available for sale investments as of October 31, 2017 (in thousands): As of October 31, 2017 Carrying Amount Fair Value Due within one year $ 5,994 $ 5,994 Total $ 5,994 $ 5,994 Property and Equipment, Net Property and equipment, net consist of the following (in thousands): As of January 31, As of October 31, 2017 2017 Computer equipment $ 17,431 $ 19,902 Leasehold improvements 5,941 5,944 Sales demonstration equipment 5,903 7,350 Beta equipment 1,060 1,639 Furniture and fixtures 1,550 1,777 Software 649 660 Construction in progress 39 135 Total property and equipment 32,573 37,407 Less accumulated depreciation and amortization (22,163 ) (27,184 ) Total property and equipment, net $ 10,410 $ 10,223 Depreciation and amortization expense related to property and equipment for the nine months ended October 31, 2016 and 2017 was $7.1 million and $5.3 million, respectively. Depreciation and amortization expense related to property and equipment for the three months ended October 31, 2016 and 2017 was $2.3 million and $1.7 million, respectively. Accrued and Other Current Liabilities Accrued and other current liabilities consist of the following (in thousands): As of January 31, As of October 31, 2017 2017 Accrued sales and use taxes payable $ 1,697 $ 2,081 Accrued sales commissions 4,706 2,565 Accrued bonus 2,427 1,177 Accrued vacation 3,561 3,787 Other accruals 8,277 8,807 Total accrued and other current liabilities $ 20,668 $ 18,417 |
Debt Obligations
Debt Obligations | 9 Months Ended |
Oct. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt Obligations | (5) Debt Obligations Debt obligations, net of debt discount and deferred financing costs, consist of the following (in thousands): As of January 31, As of October 31, 2017 2017 Revolving line of credit $ 13,962 $ 18,962 Term loan 34,952 49,607 Total debt 48,914 68,569 Less current portion of debt — (18,962 ) Total long-term portion of debt $ 48,914 $ 49,607 As of October 31, 2017, the Company has a credit facility with TriplePoint that provides up to $ 50.0 f the Company on or before February 2019 prepays a minimum of $20.0 million of the total $50.0 million of principal outstanding under this facility and pays an amortization fee to TriplePoint and complies with certain other conditions, the maturity of the remaining $30.0 million outstanding principal balance will be extended to August 2020, subject to the Company making equal monthly amortizing payments of principal and interest through the extended maturity date, calculated at an interest rate equal to 1.50% higher than the rate that previously applied The Company also has a revolving line of credit with SVB, from which an amount based on a percentage of qualifying accounts receivable is available for the Company to borrow, up to a total of $20.0 million. This facility is secured by a security interest, senior to the TriplePoint facility described above, on substantially all of the Company’s assets, including its intellectual property, and is subject to certain financial covenants. This facility is scheduled to expire in May 2018. As of October 31, 2017, $19.0 million was outstanding under this facility, which bears weighted average interest of 4.84% per year. As of January 31, 2017 and October 31, 2017, the Company was in compliance with all of the covenants contained in its credit facility with SVB. Amortization of credit facility fees and debt issuance costs and discounts to interest expense under the line of credit and the credit facility was $0.2 million and $ 0.2 0 0.1 2.6 In May 2017, the Company entered into a Note Purchase Agreement with certain of its stockholders pursuant to which such stockholders have agreed to purchase from the Company, and the Company has agreed to sell to such stockholders, one or more subordinated convertible promissory notes (Convertible Promissory Notes) having a maximum aggregate principal amount of $25.0 million. Subject to the terms and conditions set forth in the Note Purchase Agreement, the Convertible Promissory Notes may be issued and sold in one or more tranches (each a Tranche) in aggregate amounts to be determined by the Company pursuant to approval of a majority of the members of the Company’s board of directors. Within 30 days of the Company providing a written notice to the relevant stockholders that the Company intends to draw funds under a Tranche, the stockholders shall purchase the required Convertible Promissory Notes. In June 2017, the Company entered into an amendment to the Note Purchase Agreement with certain of its stockholders. Pursuant to the amendment, the obligations of the Company to issue and the stockholders to purchase Convertible Promissory Notes will expire upon the earlier to occur of December 31, 2019 or a change of control of the Company. If and when issued, the Convertible Promissory Notes will have an interest rate of 8% per annum and will mature 18 months from the date of issuance. In addition, at any time on or after December 1, 2019, at the Company’s election, pursuant to the approval of a majority of the members of the Company’s board of directors, the Convertible Promissory Notes will convert into shares of the Company’s common stock at the IPO price of $7.00 per share, provided that any Convertible Promissory Notes issued to entities affiliated with one of the Company’s existing stockholders that is a party to the Note Purchase Agreement will be converted at the average price of the Company’s common stock on the NASDAQ Stock Market over the 30-day period preceding the conversion. As of October 31, 2017, no Convertible Promissory Notes have been issued and sold under the Note Purchase Agreement. As of January 31, 2017 and October 31, 2017, scheduled principal payments on the outstanding borrowings are as follows (in thousands): As of January 31, 2017: Fiscal 2019 $ 48,962 Total 48,962 Less debt discount (48 ) Less current portion — Non-current portion $ 48,914 As of October 31, 2017: Fiscal 2019 $ 18,962 Fiscal 2020 50,000 Total 68,962 Less debt discount (393 ) Less current portion (18,962 ) Non-current portion $ 49,607 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (6) Commitments and Contingencies Leases The Company has entered into various non-cancelable operating lease agreements and capital lease agreements for its offices and equipment with lease periods expiring between fiscal 2018 and 2023. Certain of these arrangements have escalating rent payment provisions and optional renewal clauses. The Company is also committed to pay a portion of the actual operating expenses under certain of these operating lease agreements. As of January 31, 2017 and October 31, 2017, future minimum lease payments under non-cancelable operating leases were as follows (in thousands): As of January 31, 2017: 2018 $ 7,121 2019 7,019 2020 7,127 2021 7,021 2022 7,068 Thereafter 3,984 Committed gross lease payments 39,340 Less proceeds from sublease rental (4,244 ) Net operating lease obligation $ 35,096 As of October 31, 2017: Remaining Fiscal 2018 $ 1,859 2019 7,086 2020 7,154 2021 7,192 2022 7,221 Thereafter 3,984 Committed gross lease payments 34,496 Less proceeds from sublease rental (3,333 ) Net operating lease obligation $ 31,163 The Company recognizes rent expense under its operating leases on a straight-line basis. Rent expense totaled $3.8 million and $4.7 million for the nine months ended October 31, 2016 and 2017, respectively and was $1.5 million and $1.6 million for the three months ended October 31, 2016 and 2017, respectively. As of January 31, 2017 and October 31, 2017, future minimum lease payments under non-cancelable capital leases were as follows (in thousands): As of January 31, 2017: 2018 $ 216 2019 96 2020 77 Total 389 Interest (20 ) Total $ 369 As of October 31, 2017: Remaining Fiscal 2018 $ 26 2019 92 2020 73 Total 191 Interest (9 ) Total $ 182 Contingencies Following the Company’s initial public offering in July 2017, four class action lawsuits were filed against it. In September 2017, a class action lawsuit was filed against the Company, its Chief Executive Officer, and its Chief Financial Officer in U.S. federal court alleging violations of Sections 11 and 15 of the Securities Act of 1933, and is now pending in the Northern District of California under the caption Tuller v. Tintri, Inc. et al. Clayton v. Tintri, Inc. Nurlybayev v. Tintri, Inc. et al. Golosiy v. Tintri, Inc. et al. The Company is generally required, to the extent permitted by law, to indemnify its current and former directors and officers who are named as defendants in these types of lawsuits. The Company also has certain contractual obligations to the underwriters regarding such lawsuits. While a certain amount of insurance coverage may be available for expenses or losses associated with these lawsuits, this coverage may not be sufficient. Based on information currently available, the Company is unable to reasonably estimate a possible loss or range of possible loss, if any, with regards to these lawsuits; therefore, no litigation reserve has been recorded in the accompanying financial statements. Indemnification Some of the Company’s contracts require the Company to indemnify its customers, distributors, or other business partners against certain risks, including in some cases against any third-party claims asserting infringement of certain intellectual property rights. The Company’s exposure under these indemnification provisions is generally limited to the total amount paid by the customer or business partner under the agreement. However, certain agreements include indemnification provisions that could potentially expose the Company to losses in excess of the amount received under the agreement. In addition, the Company has agreed to indemnify its directors, officers, and certain key employees against any liabilities that they may incur while serving in good faith in their respective capacities. To date, there have been no claims under any indemnification provisions. Purchase Commitments During the normal course of business, in order to manage manufacturing lead times and help ensure adequate component supply, the Company provides rolling forecasts to its contract manufacturer of the monthly purchase requirements, a certain amount of which are purchase commitments that the contract manufacturer relies upon to procure components used to build finished products. The Company records a charge to cost of product revenue for firm, non-cancelable and unconditional purchase commitments with its contract manufacturer for non-standard components when and if quantities exceed the Company’s future demand forecasts. As of January 31, 2017, the Company had approximately $13.5 million of purchase commitments with its contract manufacturer. As of October 31, 2017 the Company had approximately $18.7 million of purchase commitments with its contract manufacturer. |
Convertible Preferred Stock
Convertible Preferred Stock | 9 Months Ended |
Oct. 31, 2017 | |
Equity [Abstract] | |
Convertible Preferred Stock | (7) Convertible Preferred Stock Prior to the closing of Company’s IPO, the Company’s convertible preferred stock was issuable in series. The number of authorized, issued, and outstanding shares of convertible preferred stock, the issuance date, net proceeds and the aggregate liquidation preferences for the convertible preferred stock as of January 31, 2017 and immediately prior to the automatic conversion of the convertible preferred stock into common stock were as follows (in thousands, except share data): Date issued Number of shares authorized Shares issued and outstanding Liquidation preference A August 2008 1,533,329 1,533,329 $ 4,600 B July 2009 2,119,997 2,119,997 12,000 C May 2011 1,312,311 1,312,311 18,100 D July 2012 1,092,149 1,092,149 25,000 E January 2014 1,681,912 1,641,662 71,377 E-1 January 2014 83,333 83,333 3,623 F July 2015 2,828,185 2,828,185 124,554 Total outstanding as of January 31, 2017 10,651,216 10,610,966 259,254 F February 2017 28,383 — — Total outstanding immediately prior to the closing of the Company’s IPO 10,679,599 10,610,966 $ 259,254 In April 2017, the Company amended its Certificate of Incorporation to modify the automatic conversion terms that would apply to shares of Series E and E-1 Convertible Preferred Stock in the event that the Company completes a Qualified IPO in which the per share public offering price is less than the Series E and E-1 Convertible Preferred Stock purchase price of $43.47828 per share. In lieu of holders of the Series E and E-1 Convertible Preferred Stock having an election to receive cash in such circumstances, under the amended Certificate of Incorporation, the holders of Series E and E-1 Convertible Preferred Stock will have similar rights as the holders of Series F Convertible Preferred Stock if the per share public offering price in a Qualified IPO is less than 1.1x the Series E and E-1 Convertible Preferred purchase price, or $47.826108. As a result of this modification to Series E and E-1 Convertible Preferred Stock, the Company recorded a deemed dividend to Series E and E-1 Convertible Preferred Stock of $6.6 million resulting in a charge to accumulated deficit. In June 2017, the Company amended its Certificate of Incorporation to eliminate certain variable rate adjustments to the conversion ratios of the Series E, E-1 and F Convertible Preferred Stock and replaced them with certain fixed conversion ratios for purposes of the IPO. Pursuant to these fixed conversion ratios, an additional 7,382,007 shares of common stock were issued to holders of Series E, E-1 and F Convertible Preferred Stock, as well as holders of shares of E-2 and F-2 Convertible Preferred Stock that were created in June 2017, who are referred to as the Series E-2 and F-2 Holders, upon the conversion of their shares immediately prior to the closing of the IPO. As an integral part of the foregoing transactions, the Company issued warrants to purchase up to 1,666,665 shares of common stock to the Series E-2 and F-2 Holders. The warrants are exercisable for ten years from the date of grant and have an exercise price of $16.44 per share, which represents 1.2x the fair value of the Company’s common stock as of the date of grant. The issuance of additional shares of common stock upon conversion of the Series E, E-1, E-2, F, and F-2 Convertible Preferred Stock and the issuance of the common stock warrants are considered parts of a single, integrated transaction and was accounted for as an extinguishment of the originally issued Series E, E-1, and F Convertible Preferred Stock. The resulting gain on extinguishment was $26.3 million, which includes an amount of $14.6 million attributable to the warrants, and was recorded as a contribution of capital. Immediately prior to the closing of the Company’s IPO, all shares of the Company’s then-outstanding convertible preferred stock, as shown in the table above, automatically converted into 17,992,973 shares of common stock in accordance with the terms of each series of preferred stock. In addition, immediately prior to the closing of the Company’s IPO, all convertible preferred stock warrants automatically converted into common stock warrants. Accordingly, the Company revalued the convertible preferred stock warrants and reclassified the outstanding preferred stock warrant liability balance to additional paid-in capital with no further remeasurements as the common stock warrants are now deemed permanent equity. As a result of the automatic conversion, 68,633 shares of convertible preferred stock warrants converted into an aggregate 205,897 shares of common stock warrants. Of the 205,897 shares of common stock warrants, 34,058 shares will not be exercisable until such time that additional loan amount of $10.0 million under the New Facility Agreement is drawn. |
Common Stock
Common Stock | 9 Months Ended |
Oct. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Common Stock | (8) Common Stock Shares Reserved for Future Issuance As of January 31, 2017 and October 31, 2017 the Company had reserved the following shares of authorized but unissued common stock: As of January 31, As of October 31, 2017 2017 (in shares) Convertible preferred stock 10,610,966 — Options and RSUs outstanding and shares available for grant 5,814,388 12,173,599 Convertible preferred stock warrants 40,250 — Common stock warrants 25,000 1,897,562 Total 16,490,604 14,071,161 Stock Plan 2008 Stock Plan . In 2008, the Company adopted the 2008 Stock Plan (the 2008 Plan). Under the 2008 Plan, as amended, 7,688,078 shares of common stock were reserved for the issuance of incentive stock options (ISOs), nonstatutory stock options (NSOs), and stock purchase rights to employees, directors, and consultants of the Company as of January 31, 2017. Options may be granted with exercise prices at no less than 100% of the fair value of the common stock on the date of grant. ISOs granted under the 2008 Plan generally vest 25% after the completion of one year of service and then vest in equal monthly installments over the next 36 months of service and expire ten years from the date of grant. NSOs vest according to the specific agreement and expire ten years from the date of grant. Early Exercise of Stock Options . The Company’s 2008 Plan allows select employees to exercise options prior to vesting. The Company has a right to repurchase unvested shares acquired upon early exercise of options at the original exercise price upon termination of employment. The repurchase rights will lapse in accordance with the original vesting schedule of the option. Early exercises of options are not deemed to be substantive exercises for accounting purposes and, accordingly, amounts received for early exercises are recorded as a liability included in other long-term liabilities. These amounts are reclassified to common stock as the underlying options vest. As of January 31, 2017 and October 31, 2017, shares held by employees that were subject to repurchase were 49,234 and 5,785, respectively, with an aggregate purchase price of $0.5 million and $0.1 million, respectively. Repurchase of Common Stock . In 2013, one executive and one non-executive employee exercised stock options early in exchange for full-recourse notes in an amount of $2.2 million bearing annual interest of 1.62% to 1.64% payable to the Company. In addition, one executive employee exercised stock options early in exchange for a partial recourse promissory note in an amount of $6.6 million bearing interest of 1.92% payable to the Company. In May 2017, the executive employee with the full-recourse promissory note was issued 88,520 shares (Additional Options) of fully vested and exercisable options. In June 2017, the outstanding principal and interest balance of $1.0 million was repaid in full by the executive employee through the Company’s repurchase of 88,520 shares of the executive employee’s common stock. The shares were valued at $13.68 per share, which is the fair market value of the Company’s common stock as determined by the Company’s compensation committee on the date of the repurchase. The Company deems the issuance of 88,520 Additional Options, and its purchase of the shares of common stock issued pursuant to the note, in lieu of forgiving the executive employee’s loan altogether, as a stock repurchase. The Company recorded additional stock-based compensation expense of $0.5 million during the nine months ended October 31, 2017, representing the extent that the fair value of the 88,520 Additional Options and the value of the loan forgiven exceeds the fair value of the 88,520 shares of common stock repurchased. In May 2017, the executive employee with the partial recourse promissory note was issued 501,104 Additional Options that are fully vested and exercisable on the date of the grant. In June 2017, the outstanding principal and interest balance of $6.9 million was repaid in full by the executive employee through the Company’s repurchase of 501,104 shares of the executive employee’s common stock. The shares were valued at $13.68 per share, which is the fair market value of the Company’s common stock as determined by the Company’s compensation committee on the date of the repurchase. The repayment of the promissory note through the Company’s repurchase of all 501,104 shares purchased under the note, and the issuance of the 501,104 Additional Options, is treated as a modification of the promissory note. The Company did not record any additional compensation for the modification as the fair value of these Additional Options did not exceed the fair value of the promissory note. 2017 Equity Incentive Plan. In May 2017, the Company adopted the 2017 Equity Incentive Plan (the 2017 Plan) and approved the termination of the 2008 Plan, effective concurrently upon the closing of the Company’s IPO. Under the 2017 Plan, 4,537,000 shares of common stock were reserved for the issuance of ISOs, NSOs, restricted stock, stock appreciation rights and performance awards to employees and directors of the Company. Options may be granted with exercise prices at no less than 100% of the fair value of the common stock on the date of grant. In addition, shares subject to outstanding awards granted under the 2008 Plan that expire or otherwise terminate without having been exercised in full or are forfeited to the Company due to failure to vest, will be allocated to the 2017 Plan reserve. ISOs and NSOs granted under the 2017 Plan generally will vest 25% after the completion of one year of service and then vest in equal monthly installments over the next 36 months of service and expire ten years from the date of grant. NSOs vest according to the specific agreement and expire ten years from the date of grant. Stock-Based Compensation The following is a summary of shares available for grant under the Company’s stock plans for the year ended January 31, 2017 and the nine months ended October 31, 2017: Outstanding—January 31, 2016 156,417 Authorized 1,405,316 Options and RSUs granted (1,240,032 ) Options and RSUs canceled 738,891 Outstanding—January 31, 2017 1,060,592 Authorized 7,024,194 Options and RSUs granted (10,983,179 ) Options and RSUs canceled 4,150,318 Outstanding—October 31, 2017 1,251,925 The following is a summary of stock option activity under the Company’s stock plans for the year ended January 31, 2017 and for the nine months ended October 31, 2017: Options Outstanding Number of shares underlying outstanding options Weighted- average exercise price Weighted- average remaining contractual term Aggregate Intrinsic Value (in years) (in thousands) Outstanding—January 31, 2016 4,421,035 $ 16.34 8.2 $ 59,882 Options granted 920,147 $ 30.25 Options exercised (168,380 ) $ 13.63 Options canceled (704,841 ) $ 19.35 Outstanding—January 31, 2017 4,467,961 $ 18.83 7.5 $ 60,756 Options granted 1,554,912 $ 16.91 Options exercised (720,985 ) $ 9.53 Options canceled (540,377 ) $ 16.04 Outstanding—October 31, 2017 4,761,511 $ 12.58 7.3 $ 375 Vested and exercisable January 31, 2017 2,380,167 $ 13.55 6.8 $ 44,719 October 31, 2017 2,940,235 $ 12.14 6.5 $ 375 Vested and Expected to Vest January 31, 2017 (1) 4,174,361 $ 18.54 7.5 $ 57,552 October 31, 2017 4,761,511 $ 12.58 7.3 $ 375 (1) The expected to vest options are a result of applying the forfeiture rate assumptions to unvested options outstanding. The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying options and the fair value of the common stock for options that had exercise prices that were lower than the fair value per share of the common stock. The aggregate intrinsic value of stock options exercised for the nine months ended October 31, 2016 and 2017 was $1.9 million and $0.6 million, respectively. The aggregate intrinsic value of stock options exercised for the three months ended October 31, 2016 and 2017 was $1.0 million and $0, respectively. The weighted-average grant date fair value of options granted during the nine months ended October 31, 2016 and 2017 was $17.36 and $7.97 per share, respectively. The weighted-average grant date fair value of options granted during the three months ended October 31, 2016 and 2017 was $16.21 and $2.42 per share, respectively. The valuation model for stock-based compensation expense requires the Company to make assumptions and judgments about the variables used in the calculation, including the expected term (weighted-average period of time that the options granted are expected to be outstanding), the expected volatility of the Company’s common stock, a risk-free interest rate and expected dividend yield. The weighted-average assumptions used to estimate the fair value of stock options granted in the following periods was: Three Months Ended October 31, Nine Months Ended October 31, 2016 2017 2016 2017 Risk-free interest rate 1.33 % 1.88 % 1.49 % 1.86 % Expected term (in years) 5.90 5.73 6.04 5.47 Expected volatility 54.90 % 52.73 % 62.12 % 48.21 % Dividend yield — — — — The fair value of each grant of stock options was determined using the Black-Scholes option-pricing model. The inputs used in the Black-Scholes option-pricing model are subjective and generally require significant judgment to determine. All time-based stock-based payment awards are amortized on a straight-line basis over the requisite service periods of the awards, which are generally the vesting periods. Compensation expense related to options granted to non-employees is recognized as the equity instruments vest, and such options are revalued at each reporting date. As a result, compensation expense related to unvested options granted to non-employees fluctuates as the fair value of the Company’s common stock fluctuates. Restricted Stock Units The Company grants RSUs to its executives, employees, and members of the Board. The Board determines the vesting conditions for RSUs and the period over which the RSUs will vest and be settled. RSUs convert into common stock upon vesting and settlement. Performance RSUs . The Company grants RSUs that contain vesting requirements that must be satisfied on or before the expiration date of the RSUs in order for an RSU to vest (in whole or in part): (i) a time and service-based requirement and (ii) performance conditions (altogether, PSUs). The time and service-based requirement is met by the recipient’s continuing employment and service with the Company from grant date through the applicable date. In general, the time and service-based requirement is two years. The performance conditions consist of the occurrence of a liquidity event and, in some instances, individual performance conditions by the recipient. The liquidity event performance condition is not satisfied unless and until the earlier to occur of (i) a change of control or (ii) the first date following the expiration of all lockup and blackout periods following an IPO; in either case, prior to the expiration date of the PSU and subject to the recipient’s continuing employment and service with the Company through the applicable date. Stock-based compensation expense is measured and recognized in the financial statements based on the fair value of the Company’s common stock on the date of the grant. Stock-based compensation expense is recognized, net of actual forfeitures, over the requisite service period of the award, and upon satisfaction of the relevant performance conditions becoming probable. The following is a summary of RSU activity under the Company’s stock plans for the nine months ended October 31, 2017 is presented below: Shares Weighted average grant date fair value per share Outstanding—January 31, 2017 285,835 $ 30.60 Awarded 6,136,856 $ 9.88 Released — $ — Forfeited (262,528 ) $ 20.51 Outstanding—October 31, 2017 6,160,163 $ 10.39 Employee Stock Purchase Plan In May 2017, the Board of the Company authorized and approved a 2017 Employee Stock Purchase Plan (the “ESPP”). A total of 907,000 shares of common stock were initially reserved for issuance under the ESPP. The number of shares of common stock available for sale under the ESPP will also include an annual increase on the first day of each fiscal year beginning in fiscal 2019, equal to the lesser of: 907,000 shares, 1% of the outstanding shares of classes of common stock as of the last day of the Company’s immediately preceding fiscal year, or such other amount as may be determined by the Board. The ESPP allows eligible employees to purchase shares of the Company’s common stock at a discount through payroll deductions of up to 15% of eligible compensation, subject to caps of $25,000 of value in any calendar year and 2,000 shares on any purchase date. The ESPP provides for 24-month offering periods generally beginning March and September of each year, with the exception of the initial offering period which commenced on June 29, 2017. Each offering period consists of four six-month purchase periods with the initial offering period having its first purchase on March 20, 2018. On each purchase date, participating employees will purchase common stock at a price per share equal to 85% of the lesser of the fair market value of the Company’s common stock on (i) the first trading day of the applicable offering period and (2) the last trading day of each purchase period in the applicable offering period. If the stock price of the Company's common stock on any purchase date in an offering period is less than the stock price on the first trading day of that offering period, participants will be withdrawn from the current offering period following their purchase of shares on the purchase date and will be automatically re-enrolled in a new offering period. For the first offering period, which began on June 29, 2017, the fair market value of the common stock used for the first offering period was $7.00, the IPO price of the Company’s common stock. The Company uses the Black-Scholes option-pricing model to determine the fair value of shares purchased under the ESPP with the following weighted average assumptions on the date of the grant: Three Months Ended October 31, Nine Months Ended October 31, 2016 2017 2016 2017 Risk-free interest rate n/a 1.35 % n/a 1.32 % Expected term (in years) n/a 1.25 n/a 1.38 Expected volatility n/a 50.35 % n/a 44.91 % Dividend yield n/a — n/a — Stock-Based Compensation Expense Total stock-based compensation expense recognized for stock award in the condensed consolidated statements of operations is as follows (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2016 2017 2016 2017 Stock-based compensation: Cost of product revenue $ 68 $ 334 $ 197 $ 1,095 Cost of support and maintenance revenue 71 358 243 1,011 Research and development 1,230 5,116 4,090 14,772 Sales and marketing 959 2,468 3,209 8,150 General and administrative 973 3,576 3,003 12,742 Total stock-based compensation expense (1) $ 3,301 $ 11,852 $ 10,742 $ 37,770 (1) In September 2017, the Company’s board of directors approved a restructuring plan, which resulted in a $0.7 million non-cash adjustment to restructuring charges for previously recognized stock-based compensation expense related to awards that will not vest as a result of the restructuring plan. Total stock-based compensation expense recognized for stock awards in the condensed consolidated statements of operations by type of awards is as follows (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2016 2017 2016 2017 Stock-based compensation: Stock options (1) (2) $ 3,301 $ 3,787 $ 10,742 $ 17,117 RSUs (2) — 7,547 — 19,945 ESPP — 518 — 708 Total stock-based compensation expense $ 3,301 $ 11,852 $ 10,742 $ 37,770 (1) In May 2017, the Company repriced each outstanding and unexercised stock option held by current service providers with an exercise price in excess of $13.68 per share (each, an "Eligible Option"), to a new exercise price of $13.68 per share, which is no less than the fair market value of the Company's common stock as determined by the Company's compensation committee on the date of repricing. Eligible Options covering 3,291,783 shares of the Company's common stock with a weighted average exercise price of $24.31 were repriced. Additional stock-based compensation expense related to this repricing is $7.3 million, of which $2.6 million was recognized immediately on the date of repricing for Eligible Options that were vested. (2) In September 2017, the Company’s board of directors approved a restructuring plan, which resulted in a $0.7 million non-cash adjustment to restructuring charges for previously recognized stock-based compensation expense related to awards that will not vest as a result of the restructuring plan. As of October 31, 2017, the total unrecognized stock-based compensation expense related to the outstanding stock awards was $66.5 million, which is expected to be recognized over a weighted-average period of 2.2 years. Common Stock Warrants In connection with the Loan and Security Agreement with SVB, the Company issued immediately exercisable and fully vested warrants to purchase 4,167 shares of common stock. The fair value of the warrant was $27,000 and was recorded in other income (expense), net in the consolidated statements of operations. In July 2013, upon drawing down on the term loan, the Company issued the lender a warrant to purchase an additional 20,833 shares of common stock. The warrants have an exercise price of $7.80. The warrants expire in May 2023. The Company determined the fair value of the additional common stock warrants on the date of issuance to be $0.1 million, which was recorded as a debt discount. The debt discount was amortized to interest expense over the loan term using the effective-interest rate method. In connection with the total term loan balance being repaid during the year ended January 31, 2015, the unamortized debt discount of $0.1 million was written off. In June 2017, the Company amended its certificate of incorporation to eliminate certain variable rate adjustments to the conversion ratios of the Series E, E-1 and F Convertible Preferred Stock and replaced them with certain fixed conversion ratios. As an integral part of the transaction, the Company issued warrants to purchase up to 1,666,665 shares of common stock to the Series E-2 and F-2 Holders. The warrants will become exercisable for ten years from the date of grant and have an exercise price of $16.44 per share. The warrants may be exercised on a cashless basis. The warrants from this arrangement remain outstanding as of October 31, 2017. In addition, immediately prior to the closing of the Company’s IPO, all convertible preferred stock warrants automatically converted into common stock warrants. Accordingly, the Company revalued the convertible preferred stock warrants and reclassified the outstanding preferred stock warrant liability balance to additional paid-in capital with no further remeasurements as the common stock warrants are now deemed permanent equity. As a result of the automatic conversion, 68,633 shares of convertible preferred stock warrants converted into an aggregate 205,897 shares of common stock warrants. Of the 205,897 shares of common stock warrants, 34,058 shares will not be exercisable until such time that additional loan amount of $10.0 million under the New Facility Agreement is drawn. |
401(k) Plan
401(k) Plan | 9 Months Ended |
Oct. 31, 2017 | |
Defined Benefit Pension Plans And Defined Benefit Postretirement Plans Disclosure [Abstract] | |
401(k) Plan | (9) 401(k) Plan The Company maintains a tax-qualified retirement plan, or the 401(k) plan. Participants are able to defer eligible compensation up to applicable annual Internal Revenue Code limits. All participants’ interests in their deferrals are 100% vested when contributed. The 401(k) plan allows the Company to make matching contributions and profit sharing contributions to eligible participants. No contributions were made for the nine months ended October 31, 2016 and 2017. |
Net Loss per Share Attributable
Net Loss per Share Attributable to Common Stockholders | 9 Months Ended |
Oct. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Attributable to Common Stockholders | (10) Net Loss Per Share Attributable to Common Stockholders Basic and diluted net loss per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities. The Company’s convertible preferred stock that was outstanding prior to the closing of the IPO is considered a participating security with respect to the periods during which it was outstanding. Participating securities do not have a contractual obligation to share in the Company’s losses. As such, for the periods the Company incurs net losses, there is no impact on the calculated net loss per share attributable to common stockholders in applying the two-class method. Basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. The diluted net loss per share attributable to common stockholders is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, participating securities, stock options to purchase common stock, RSUs, warrants to purchase common stock and convertible preferred stock are considered to be common stock equivalents and have been excluded from the calculation of diluted net loss per share attributable to common stockholders, as their effect is antidilutive. The computation of basic and diluted net loss per share attributable to common stockholders is as follows (in thousands, except share and per share data): Three Months Ended October 31, Nine Months Ended October 31, 2016 2017 2016 2017 Numerator: Net loss $ (23,770 ) $ (37,925 ) $ (80,253 ) $ (120,272 ) Deemed dividend to Series E and E-1 Convertible Preferred Stock — — — (6,588 ) Impact of adjustment to Series E, E-1 and F Convertible Preferred Stock — — — 26,336 Net loss attributable to common stockholders $ (23,770 ) $ (37,925 ) $ (80,253 ) $ (100,524 ) Denominator: Weighted-average common shares outstanding 3,532,500 31,324,097 3,502,327 15,923,536 Weighted-average unvested common shares subject to repurchase (72,640 ) (32,584 ) (89,880 ) (50,465 ) Weighted-average shares—basic and diluted 3,459,860 31,291,513 3,412,447 15,873,071 Net loss per share attributable to common stockholders—basic and diluted $ (6.87 ) $ (1.21 ) $ (23.52 ) $ (6.33 ) The potential absolute shares of common stock that were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive are as follows: As of October 31, 2016 2017 (in shares) Convertible preferred stock (on an if-converted basis) 10,610,966 — Stock options and RSUs 4,799,629 10,921,674 Early exercised stock options 66,621 5,785 Convertible preferred stock warrants 40,250 — Common stock warrants 25,000 1,897,562 Total 15,542,466 12,825,021 |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (11) Income Taxes During the three and nine months ended October 31, 2017, the Company’s provision for income taxes of $0.1 million and $0.4 million, respectively, was primarily attributable to foreign income tax provision in profitable foreign jurisdictions in which it conducts business. The Company’s provision for income taxes for the three and nine months ended October 31, 2016 was $0.1 million and $0.4 million, respectively, and was primarily attributable to foreign income tax expense in profitable foreign jurisdictions in which it conducts business. |
Restructuring Charges
Restructuring Charges | 9 Months Ended |
Oct. 31, 2017 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Charges | (12) Restructuring Charges In September 2017, the Company’s board of directors approved a restructuring and reduction in force plan of a little more than 10% of the Company’s global workforce. The restructuring is part of an overall plan to drive efficiencies in the Company’s sales organization and other business units. Restructuring charges for the three months ended October 31, 2017 were $0.9 million and consist primarily of severance costs. As of October 31, 2017, the September 2017 restructuring plan has been substantially completed. A summary of activities related to the restructuring plan during the nine months ended October 31, 2017 is presented below (in thousands): Balance as of January 31, 2017 $ — Gross charges 1,830 Cash payments (563 ) Non-cash adjustments (1) (940 ) Balance as of October 31, 2017 $ 327 (1) The non-cash adjustments to restructuring charges primarily consist of the reversal of previously recognized stock-based compensation expense related to awards that will not vest and the reversal of incentive compensation that will not be paid as a result of the restructuring plan. Liabilities for activities related to the restructuring plan are included in Accrued and other current liabilities in the condensed consolidated balance sheets. |
Segment Information
Segment Information | 9 Months Ended |
Oct. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | (13) Segment Information The Company’s chief operating decision maker is a group which is comprised of its Chief Executive Officer and Chief Financial Officer. This group reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. Accordingly, the Company has a single reportable segment. The following table sets forth revenue by geographic area by customer location (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2016 2017 2016 2017 United States $ 24,084 $ 23,054 $ 57,537 $ 71,650 EMEA 4,659 4,882 12,756 14,020 Rest of the World 5,174 3,836 14,056 11,323 Total revenue $ 33,917 $ 31,772 $ 84,349 $ 96,993 As of January 31, 2017 and October 31, 2017, $10.2 million and $10.1 million, respectively, of the Company’s long-lived assets were located in the United States. |
Related Party and Other Transac
Related Party and Other Transactions | 9 Months Ended |
Oct. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party and Other Transactions | (14) Related-Party and Other Transactions In 2013, one executive and one non-executive employee exercised stock options early in exchange for full-recourse promissory notes in an amount of $2.2 million bearing annual interest of 1.62% to 1.64% payable to the Company. These notes are secured by the underlying shares purchased and such unvested shares can be repurchased by the Company upon employee termination at the original issuance price. In September 2017, the Company entered into an amendment to the full-recourse promissory note with the non-executive. Pursuant to the amendment, a portion of the promissory note and accrued interest will become due and payable in April 2018 and the remaining portion will become due and payable in March 2019, but will become due earlier if the non-executive terminates services. The Company is recording the notes receivable balance within equity with a corresponding entry to additional paid-in capital upon the vesting of these shares. In June 2017, the outstanding principal and interest balance of $1.0 million was repaid in full by the executive employee through the Company’s repurchase of 88,520 shares of the executive employee’s common stock. Employee notes receivable as of January 31, 2017 and October 31, 2017 was $1.5 million and $0.7 million, respectively. In 2013, one executive employee exercised stock options early in exchange for a promissory note in an amount of $6.6 million bearing interest of 1.92% payable to the Company. This note is secured by the underlying shares purchased and such unvested shares can be repurchased by the Company upon employee termination at the original issuance price. Because the Company only has partial recourse under the promissory note, the Company deemed the exercise of the stock options to be nonsubstantive. As such, the note receivable is not reflected in these condensed consolidated financial statements and the related stock transaction will be recorded at the time the note receivable is settled in cash. In June 2017, the outstanding principal and interest balance of $6.9 million was repaid in full by the executive employee through the Company’s repurchase of 501,104 shares of the executive employee’s common stock. In July 2015, certain executives of the Company participated in the Series F financing round, and acquired 11,353 shares of Series F Convertible Preferred Stock with an aggregate value of $0.5 million. In June 2017, the Company amended its certificate of incorporation to eliminate certain variable rate adjustments to the conversion ratios of the Series E, E-1 and F Convertible Preferred Stock and replaced them with certain fixed conversion rations. Pursuant to these fixed conversion rations, the executives who participated in the series F financing round were issued additional shares of common stock immediately prior the closing of the Company’s IPO. |
Basis of Presentation and Sum20
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the accompanying condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Such estimates include, but are not limited to, the determination of the fair value of deliverables included in multiple element revenue arrangements, valuation of inventories, warranty liability, the useful lives of property and equipment, fair value of the Company’s common stock, value of convertible preferred stock warrant liability, the value of stock options granted, accounting for income taxes, including the valuation reserve on deferred tax assets and accounting for uncertain tax positions, and contingencies. Actual results could differ materially from these estimates. Management evaluates these estimates and assumptions on an ongoing basis using historical experience and other factors and makes adjustments when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could materially differ from those estimates and assumptions. |
Concentrations | Concentrations The Company’s financial instruments that are exposed to concentrations of credit risk are primarily cash and cash equivalents, investments, and accounts receivable. Cash and cash equivalents, and investments are maintained primarily at one financial institution, and deposits will generally exceed the amount of insurance provided on such deposits. Risks associated with cash and cash equivalents, and investments are mitigated by banking with a creditworthy institution. The Company has not experienced any losses on its deposits of cash and cash equivalents or its investments. The Company sells its products primarily through channel partners and distributors (collectively, Partners), and occasionally directly to customers. The Company’s accounts receivable are unsecured and represent amounts due to the Company based on contractual obligations of the Company’s Partners and direct customers. The Company mitigates credit risk with respect to accounts receivable by performing ongoing credit evaluations of its Partners and direct customers to assess the probability of collection based on a number of factors, including, but not limited to, past transaction experience with its Partners and direct customers, evaluation of their credit history, limiting the credit extended, and review of the invoicing terms of the contract. The Company generally does not require its Partners and direct customers to provide collateral to support accounts receivable. The Company records an allowance for doubtful accounts for those receivables that are determined not to be collectible. Partners or direct customers representing greater than 10% of the Company’s revenue and accounts receivable are as follows: Revenue for the Three Months Ended October 31, Revenue for the Nine Months Ended October 31, Accounts Receivable as of January 31, Accounts Receivable as of October 31, 2016 2017 2016 2017 2017 2017 Partner A * 36% * 27% 16% 37% * Represents less than 10%. The Company outsources substantially all of its manufacturing to one independent contract manufacturer. The inability of the manufacturer or supplier to fulfill the Company’s supply or quality requirements or performance failures of the Company’s products could result in lost sales and damage to the Company’s end-customer relationships, which would adversely impact the Company’s business, financial condition and operating results. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions The financial position and operating results of the Company’s international subsidiaries in the United Kingdom (U.K.), Japan, Ireland, Singapore, Australia, and Canada have been measured using their respective local currency as the functional currency. Assets and liabilities are translated into U.S. dollars at the exchange rate in effect on the respective condensed consolidated balance sheet date. Revenue and expenses are translated into U.S. dollars using average exchange rates for the corresponding period. Translation adjustments are recorded within other comprehensive loss as a separate component of stockholders’ deficit. There is no income tax effect of currency translation adjustments related to foreign subsidiaries as the Company has no present intention of remitting the undistributed earnings of its foreign subsidiaries. Gains and losses from the remeasurement of foreign currency-denominated balances into the functional currency are included in Other income, net in the Company’s condensed consolidated statements of operations. Remeasurement gains and losses were immaterial for the three and nine months ended October 31, 2016 and 2017. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying value of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, investments, accounts payable and accrued and other current liabilities, approximates fair value due to the short period of time to maturity, receipt or payment. The carrying amount of the Company’s revolving line of credit and term loan approximates its fair value as the stated interest rates approximate market rates currently available to the Company. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments, such as money market funds, with original maturities of 90 days or less at date of purchase, to be cash equivalents. Cash and cash equivalents consist principally of checking account deposits and money market funds. |
Accounts Receivable | Accounts Receivable Accounts receivable are recorded at the invoiced amounts and do not bear interest. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio and an allowance for returns. An allowance for doubtful accounts is determined based on the aging of the Company’s trade receivables, historical experience, and management judgment. The Company writes off trade receivables against the allowance when management determines a balance is uncollectible and no longer actively pursues collection of the receivable. An allowance for returns is determined based on historical returns and management judgment. As of January 31, 2017 and October 31, 2017, allowance for doubtful accounts was $0.1 million and $0, respectively. Allowance for returns was $0.3 million and $0.4 million as of January 31, 2017 and October 31, 2017, respectively. |
Inventories | Inventories Inventories consist primarily of raw materials related to component parts and finished goods. Finished goods include inventory held for sale, service inventory held at third-party service inventory depots in support of customer service agreements, and customer evaluation inventory. The following is a summary of the Company’s inventories by major category (in thousands): As of January 31, As of October 31, 2017 2017 Raw materials $ 264 $ 390 Finished goods 6,245 6,568 $ 6,509 $ 6,958 Inventory values are stated at the lower of cost (on a first-in, first-out method), or market value. A provision is recorded to adjust inventory to its estimated realizable value when inventory is determined to be in excess of anticipated demand or obsolete. Specifically, customer support inventory is written down to its net realizable value based upon the estimated loss of utility starting from the date the customer support inventory is placed in the third-party service inventory depots through the estimated period of service obligation fulfillment; and customer evaluation inventory is periodically reviewed and reserved for excess and obsolescence. The Company recorded inventory write-downs of $0.9 million and $1.4 million for the nine months ended October 31, 2016 and 2017, respectively, of which $0 and $0.3 million, respectively, were recorded in cost of product revenue and $0.9 million and $1.1 million, respectively, were recorded in cost of support and maintenance revenue in the condensed consolidated statements of operations. Inventory write-downs for the three months ended October 31, 2016 and 2017 were $0.3 million and $0.5 million, respectively, of which $0 and $0.1 million, respectively, were recorded in cost of product revenue and $0.3 million and $0.4 million, respectively, were recorded in cost of support and maintenance revenue in the condensed consolidated statements of operations. |
Investments | Investments The Company’s primary objectives of its investment activities are to preserve principal, provide liquidity, and maximize income without significantly increasing risk. Some of the securities the Company invests in are subject to interest risk. To minimize this risk, the Company maintains its portfolio of cash, cash equivalents, short-term and long-term investments in a variety of securities, which may include commercial paper, money market funds, U.S. government and agency securities, and corporate debt securities. The Company classifies its investments as available-for-sale at the time of purchase since it is intended that these investments are available for current operations, and include these investments on the accompanying condensed consolidated balance sheets as either short-term or long-term investments depending on their maturity. Investments not considered cash equivalents and with maturities of one year or less from the condensed consolidated balance sheet date are classified as short-term investments. Investments with maturities greater than one year from the condensed consolidated balance sheet date are classified as long-term investments. Investments are reported at fair value and are subject to periodic impairment review. Unrealized gains and losses related to changes in the fair value of these securities are recognized in accumulated other comprehensive loss net of tax, unless they are determined to be other-than-temporary impairments. The ultimate value realized on these securities is subject to market price volatility until they are sold. Investments are considered impaired when a decline in fair value is judged to be other-than-temporary. The Company consults with investment managers and considers available quantitative and qualitative evidence in evaluating potential impairment of investments on a quarterly basis. If the cost of an individual investment exceeds its fair value, the Company evaluates, among other factors, general market conditions, the duration and extent to which the fair value is less than cost, and the Company’s intent and ability to hold the investment to maturity. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis in the investment is established. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, including leasehold improvements, are stated at cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Depreciation on property and equipment, excluding leasehold improvements and sales demonstration equipment, ranges from 24 to 60 months. Sales demonstration equipment is depreciated over the estimated useful lives of the respective assets, which range up to 24 months. Leasehold improvements are amortized over the shorter of the estimated useful lives of the respective assets or the remaining property lease terms, which range up to eight years. Upon the retirement or disposition of property and equipment, the related costs and accumulated depreciation are removed and any related gain or loss is recorded in the condensed consolidated statements of operations as an operating expense. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company evaluates events and changes in circumstances that could indicate carrying amounts of long-lived assets, consisting of property and equipment, may not be recoverable. When such events or changes in circumstances occur, the Company assesses the recoverability of long-lived assets by determining whether or not the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future undiscounted cash flows is less than the carrying amount of an asset, the Company records an impairment charge for the amount by which the carrying amount of the asset exceeds the fair value of the asset. When the Company determines that the useful lives of assets are shorter than was originally estimated, the Company accelerates the rate of depreciation over the assets’ new, shorter useful lives. Through October 31, 2017, the Company did not write down any of its long-lived assets as a result of impairment. |
Warranties | Warranties The Company provides a one-year warranty for hardware components covering material defects in materials and workmanship. In addition, the Company provides a 90-day warranty on the software in its products for nonconformance with documented specifications. With respect to the hardware warranty obligation, the Company’s contract manufacturer is generally required to repair or replace defective hardware resulting from defective workmanship within one year of shipment. Furthermore, the Company’s support contracts provide for the same parts replacement that end-users are entitled to under the warranty program, except that replacement parts are delivered according to targeted response times to minimize disruption to the end-users’ critical business applications. Substantially all end-users purchase support contracts. Given that substantially all products are sold together with support contracts, the Company has limited exposure related to warranty costs and therefore no warranty reserve has been recorded. |
Revenue Recognition | Revenue Recognition The Company generates revenue from sales of enterprise cloud platform solutions and related support and maintenance. The Company derives revenue primarily from two sources: (i) Product revenue, which includes hardware and perpetual software license revenue and (ii) Support and maintenance revenue, which includes support, installation services and training. Revenue is recognized when all of the following criteria are met: persuasive evidence of an arrangement exists; the product or service has been delivered; the sales price is fixed or determinable; and collection is reasonably assured. The Company defines each of the four criteria above as follows: • Persuasive Evidence of an Arrangement Exists. The Company uses stand-alone purchase orders, signed sales quotations or purchase orders pursuant to the terms and conditions of a master sales agreement to support the evidence of an arrangement with Partners and direct customers. • Delivery has Occurred. The Company uses shipping documentation to verify delivery of products. Provided that all other revenue recognition criteria have been met, the Company typically recognizes product revenue upon shipment, as title and risk of loss are transferred at that time. Products are typically shipped directly by the Company to Partners and direct customers. Support and maintenance revenue is recognized over time as the services are delivered. The Company generally does not have significant obligations for future performance, such as rights of return or pricing credits, associated with the sales of its products. It is the Company’s practice to identify an end user prior to shipment to a Partner. • The Sales Price is Fixed or Determinable. The Company assesses whether the fee is fixed or determinable based on the payment terms associated with the transaction. If the terms are extended beyond the Company’s normal payment terms, the Company will recognize revenue as the payments become due. Payments from Partners are not contingent on the Partners’ receiving payment from the end-users. • Collection is Reasonably Assured. The Company assesses probability of collection on an individual basis. The Company’s Partners or customers are subjected to a credit review process that evaluates their financial condition and ability to pay. Support and maintenance revenue includes arrangements for software and technical support for the Company’s products. While purchasing support and maintenance is not mandatory, substantially all products shipped have been purchased together with a support contract. Support is offered under renewable, fee-based contracts and includes technical support, hardware repair and replacement parts, and software patches, bug fixes, updates, and upgrades. Support and maintenance revenue is initially deferred and recognized ratably over the life of the contract, with the related expenses, including the write down of customer support inventory to its net realizable value, recognized as incurred. Support and maintenance contracts range from one to five years. Unearned support revenue is included in deferred revenue. Professional service revenue primarily consists of fees the Company earns related to installation. While installation services are not contractually mandatory, customers occasionally purchase such services. The Company generally recognizes revenue from installation services upon delivery or completion of performance. Installation services are typically short term in nature. To date, revenue arising from installation service has been insignificant. The Company reports revenue net of sales taxes. Shipping charges billed to customers are included in product revenue and the related shipping and handling costs are included in cost of product revenue. |
Multiple Element Arrangements | Multiple Element Arrangements The Company’s offering consists of hardware products containing software components that function together to provide the essential functionality of the product. Therefore, the Company’s hardware products (inclusive of the core software) are considered non-software deliverables and are not subject to industry-specific software revenue recognition guidance. The Company’s product revenue also includes revenue from the sale of stand-alone software products. Stand-alone software may operate on the Company’s hardware product, but is not considered essential to the functionality of the hardware and is subject to the industry-specific software revenue recognition guidance. The Company’s typical multiple element arrangement includes hardware product (including the essential software) and support. The Company may also sell stand-alone software as part of its multiple element arrangements. The Company considers each of these deliverables to be separate units of accounting based on whether the delivered items have stand-alone value. The Company has determined that each unit of accounting has stand-alone value because they are sold separately by the Company or, for hardware products, because the customers can resell them to others on a stand-alone basis. For certain arrangements with multiple deliverables, the Company allocates the arrangement fee to the non-software element based upon the relative selling price of such element and, if software and software-related elements such as support for the software element are also included in the arrangement, the Company allocates the arrangement fee to those software and software-related elements as a group. After such allocations are made, the amount of the arrangement fee allocated to the software and software-related elements is accounted for using the residual method. When applying the relative selling price method, the Company determines the selling price for each element using vendor-specific objective evidence (VSOE) of selling price, if it exists, or if not, third-party evidence (TPE) of selling price, if it exists. If neither VSOE nor TPE of selling price exist for an element, the Company uses its best estimated selling price (BESP) for that element. The revenue allocated to each element is then recognized when the basic revenue recognition criteria are met for that element. When an arrangement includes stand-alone software products and related support, consideration is allocated to the software deliverable as described above. The Company uses the residual method to recognize revenue related to this consideration when a product agreement includes one or more elements to be delivered at a future date and VSOE of the fair value of all undelivered elements exists. In the majority of the Company’s contracts, the only element that remains undelivered at the time of delivery of the product is support services. Under the residual method, the VSOE of fair value of the undelivered elements is deferred and the remaining portion of the contract fee is recognized upfront as product revenue. If evidence of the VSOE of fair value of the undelivered elements does not exist, all revenue is deferred and recognized at the earlier of (i) when delivery of those elements occurs or (ii) when fair value can be established unless support services is the only undelivered element, in which case, the entire arrangement fee is recognized ratably over the contractual period of the support services. VSOE of fair value for elements of an arrangement is based upon the normal pricing and discounting practices for those deliverables when sold separately. In determining VSOE, the Company requires that a substantial majority of the selling prices for a deliverable fall within a reasonably narrow pricing range, evidenced by a substantial majority of such historical stand-alone transactions falling within a reasonably narrow range. The Company is not able to determine TPE for its products or services. TPE is determined based on competitor prices for similar deliverables when sold separately. Generally, the Company’s go-to-market strategy differs from that of its peers and its offerings contain a significant level of differentiation such that the comparable pricing of products with similar functionality cannot be obtained. Furthermore, the Company is unable to reliably determine what similar competitor products’ selling prices are on a stand-alone basis. When the Company is unable to establish the selling price of its deliverables using VSOE or TPE, the Company uses BESP in its allocation of arrangement consideration. The objective of BESP is to determine the price at which we would transact a sale if the product or service were sold on a stand-alone basis. The Company determines BESP for the purposes of allocating the arrangement by reviewing market factors including, but not limited to, pricing practices including discounting, the geographies in which the Company offers its products and services, and the type of customer (i.e., Partners or direct customers). Additionally, the Company considers historical transactions, including transactions whereby the deliverable was sold on a stand-alone basis. Deferred revenue consists of billings or payments received in advance of revenue recognition and primarily relates to support and maintenance. Deferred revenue that will be recognized during the twelve-month period following the balance sheet date is recorded as Deferred revenue, current and the remaining portion is recorded as Deferred revenue, non-current. |
Research and Development | Research and Development Research and development expense consists of personnel costs, including stock-based compensation expense, for the Company’s research and development personnel and product development costs, including engineering services, development software and hardware tools, depreciation of capital equipment, facility costs, and information technology spend. Research and development costs are expensed as incurred. All costs incurred in the research and development of the Company’s software products are expensed as incurred until technological feasibility has been established. As of January 31, 2017 and October 31, 2017, there were no capitalized computer software development costs as the time between technological feasibility and general release is short. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and are included in sales and marketing expense. Advertising costs for the nine months ended October 31, 2016 and 2017 were $0.6 million and $2.2 million, respectively. Advertising costs for the three months ended October 31, 2016 and 2017 were $0.2 million and $0.3 million, respectively. |
Commission Costs | Commission Costs Commission costs are expensed as incurred and are included in sales and marketing expense. |
Stock-Based Compensation | Stock-Based Compensation Stock Options The Company measures and recognizes compensation expense for all stock-based awards made to employees based on estimated fair values on the date of grant. The Company uses the Black-Scholes option pricing model to estimate the value of stock-based compensation expense for all stock options. The related stock-based compensation expense is recognized on a straight-line basis, over the period in which an employee is required to provide service in exchange for the stock-based award, which is generally four years. Restricted Stock Units Stock-based compensation expense is measured and recognized in the financial statements based on the fair value of the Company’s common stock on the date of grant. Stock-based compensation expense is recognized over the requisite service period, and upon performance conditions being met. |
Income Taxes | Income Taxes The Company recognizes income taxes under the asset-and-liability method. The Company recognizes deferred income tax assets and liabilities for the expected future consequences of temporary differences between the financial reporting and tax bases of assets and liabilities. These differences are measured using the enacted statutory tax rates that are expected to apply to taxable income for the years in which differences are expected to reverse. The Company recognizes the effect on deferred income taxes of a change in tax rates in income in the period that includes the enactment date. The Company records a valuation allowance to reduce its deferred tax assets to the net amount that the Company believes is more likely than not to be realized. The Company considers all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income, and ongoing tax planning strategies in assessing the need for a valuation allowance. Realization of deferred tax assets is dependent upon the generation of future taxable income, if any, the timing and amount of which are uncertain. Due to the history of losses the Company has generated in the past, the Company believes that it is not more likely than not that the deferred tax assets will be realized as of October 31, 2017. Accordingly, the Company has recorded a full valuation allowance on its net deferred tax assets. The Company recognizes tax benefits from uncertain tax positions only if they believe that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The Company makes adjustments to these reserves when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. The provision for income taxes includes the effects of any reserves that are considered appropriate, as well as the related net interest and penalties. The Company expects to permanently reinvest undistributed earnings in foreign subsidiaries outside of the United States to fund future foreign operations. The Company projects that it will have sufficient cash flow in the United States and will not need to repatriate the foreign earnings to finance its domestic operations. If the Company were to distribute these earnings to the United States, it would be subject to U.S. income taxes, less any allowable foreign tax credits, and foreign withholding taxes. The Company has not recorded a deferred tax liability on any portion of its undistributed earnings in foreign subsidiaries. If the Company were to repatriate these earnings to the United States, any associated income tax liability would be insignificant. |
Recently Issued and Not Yet Adopted Accounting Pronouncements | Recently Issued and Not Yet Adopted Accounting Pronouncements In May 2017, the Financial Accounting Standard Board (FASB) issued Accounting Standards Update (ASU) No. 2017-09, Scope of Modification Accounting. In August 2016, FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments In February 2016, FASB issued ASU No. 2016-02, Leases. In May 2014, FASB issued ASU, 2014-09, Revenue from Contracts with Customers The Company has engaged third party service providers to assist in its evaluation and system implementation. Furthermore, the Company has made and will continue to make investments in systems to enable timely and accurate reporting under the new standard. While the Company continues to assess the potential impact of the new standard, including the areas described above, it has not yet quantified the impact the new standard may have on its consolidated financial statements. |
Basis of Presentation and Sum21
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedules of Concentration of Revenue and Accounts Receivable | Partners or direct customers representing greater than 10% of the Company’s revenue and accounts receivable are as follows: Revenue for the Three Months Ended October 31, Revenue for the Nine Months Ended October 31, Accounts Receivable as of January 31, Accounts Receivable as of October 31, 2016 2017 2016 2017 2017 2017 Partner A * 36% * 27% 16% 37% * Represents less than 10%. |
Summary of Inventories by Major Category | The following is a summary of the Company’s inventories by major category (in thousands): As of January 31, As of October 31, 2017 2017 Raw materials $ 264 $ 390 Finished goods 6,245 6,568 $ 6,509 $ 6,958 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | The following table presents the fair value of the Company’s financial assets and liabilities using the above input categories as of January 31, 2017 and October 31, 2017 (in thousands): As of January 31, 2017 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 31,468 $ — $ — $ 31,468 Total cash equivalents 31,468 — — 31,468 Total assets measured at fair value $ 31,468 $ — $ — $ 31,468 Convertible preferred warrants: Series E Convertible Preferred Stock warrants (1) $ — $ — $ 568 $ 568 Total convertible preferred stock warrants — — 568 568 Total liabilities measured at fair value $ — $ — $ 568 $ 568 As of October 31, 2017 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 31,685 $ — $ — $ 31,685 Total cash equivalents 31,685 — — 31,685 Short-term investments: Corporate debt securities — 5,994 — 5,994 Total short-term investments — 5,994 — 5,994 Total assets measured at fair value $ 31,685 $ 5,994 $ — $ 37,679 (1) Series E Convertible Preferred Stock Convertible Preferred Stock warrant liability is included in Other long-term liabilities in the accompanying condensed consolidated balance sheet. Immediately prior to the closing of the IPO, all convertible preferred stock warrants automatically converted into common stock warrants. |
Summary of Changes in Fair Value of Convertible Preferred Stock Warrant Liability | A summary of the changes in the fair value of the Company’s convertible preferred stock warrant liability is as follows (in thousands): January 31, October 31, 2017 2017 Convertible preferred stock warrant liability—beginning balance $ 532 $ 568 Change in fair value (1) 36 (470 ) Issuance of convertible preferred stock warrants — 277 Reclassification of convertible preferred stock warrant liability to additional paid in capital — (375 ) Convertible preferred stock warrant liability—ending balance $ 568 $ — (1) Recorded in the condensed consolidated statements of operations within Other income, net. |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
Balance Sheet Components Disclosure [Abstract] | |
Summary of Fair Value of Available for Sale Investments | The following table summarizes the fair value of the Company’s available for sale investments as of October 31, 2017 (in thousands): As of October 31, 2017 Carrying Amount Fair Value Due within one year $ 5,994 $ 5,994 Total $ 5,994 $ 5,994 |
Schedule of Property and Equipment, Net | Property and equipment, net consist of the following (in thousands): As of January 31, As of October 31, 2017 2017 Computer equipment $ 17,431 $ 19,902 Leasehold improvements 5,941 5,944 Sales demonstration equipment 5,903 7,350 Beta equipment 1,060 1,639 Furniture and fixtures 1,550 1,777 Software 649 660 Construction in progress 39 135 Total property and equipment 32,573 37,407 Less accumulated depreciation and amortization (22,163 ) (27,184 ) Total property and equipment, net $ 10,410 $ 10,223 |
Schedule of Accrued and Other Current Liabilities | Accrued and other current liabilities consist of the following (in thousands): As of January 31, As of October 31, 2017 2017 Accrued sales and use taxes payable $ 1,697 $ 2,081 Accrued sales commissions 4,706 2,565 Accrued bonus 2,427 1,177 Accrued vacation 3,561 3,787 Other accruals 8,277 8,807 Total accrued and other current liabilities $ 20,668 $ 18,417 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Debt Obligations, Net of Debt Discount and Deferred Financing Costs | Debt obligations, net of debt discount and deferred financing costs, consist of the following (in thousands): As of January 31, As of October 31, 2017 2017 Revolving line of credit $ 13,962 $ 18,962 Term loan 34,952 49,607 Total debt 48,914 68,569 Less current portion of debt — (18,962 ) Total long-term portion of debt $ 48,914 $ 49,607 |
Scheduled Principal Payments on Outstanding Borrowings | As of January 31, 2017 and October 31, 2017, scheduled principal payments on the outstanding borrowings are as follows (in thousands): As of January 31, 2017: Fiscal 2019 $ 48,962 Total 48,962 Less debt discount (48 ) Less current portion — Non-current portion $ 48,914 As of October 31, 2017: Fiscal 2019 $ 18,962 Fiscal 2020 50,000 Total 68,962 Less debt discount (393 ) Less current portion (18,962 ) Non-current portion $ 49,607 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments under Noncancelable Operating Leases | As of January 31, 2017 and October 31, 2017, future minimum lease payments under non-cancelable operating leases were as follows (in thousands): As of January 31, 2017: 2018 $ 7,121 2019 7,019 2020 7,127 2021 7,021 2022 7,068 Thereafter 3,984 Committed gross lease payments 39,340 Less proceeds from sublease rental (4,244 ) Net operating lease obligation $ 35,096 As of October 31, 2017: Remaining Fiscal 2018 $ 1,859 2019 7,086 2020 7,154 2021 7,192 2022 7,221 Thereafter 3,984 Committed gross lease payments 34,496 Less proceeds from sublease rental (3,333 ) Net operating lease obligation $ 31,163 |
Schedule of Future Minimum Lease Payments under Noncancelable Capital Leases | As of January 31, 2017 and October 31, 2017, future minimum lease payments under non-cancelable capital leases were as follows (in thousands): As of January 31, 2017: 2018 $ 216 2019 96 2020 77 Total 389 Interest (20 ) Total $ 369 As of October 31, 2017: Remaining Fiscal 2018 $ 26 2019 92 2020 73 Total 191 Interest (9 ) Total $ 182 |
Convertible Preferred Stock (Ta
Convertible Preferred Stock (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
Equity [Abstract] | |
Schedule of Conversion of Convertible Preferred Stock into Common Stock | Prior to the closing of Company’s IPO, the Company’s convertible preferred stock was issuable in series. The number of authorized, issued, and outstanding shares of convertible preferred stock, the issuance date, net proceeds and the aggregate liquidation preferences for the convertible preferred stock as of January 31, 2017 and immediately prior to the automatic conversion of the convertible preferred stock into common stock were as follows (in thousands, except share data): Date issued Number of shares authorized Shares issued and outstanding Liquidation preference A August 2008 1,533,329 1,533,329 $ 4,600 B July 2009 2,119,997 2,119,997 12,000 C May 2011 1,312,311 1,312,311 18,100 D July 2012 1,092,149 1,092,149 25,000 E January 2014 1,681,912 1,641,662 71,377 E-1 January 2014 83,333 83,333 3,623 F July 2015 2,828,185 2,828,185 124,554 Total outstanding as of January 31, 2017 10,651,216 10,610,966 259,254 F February 2017 28,383 — — Total outstanding immediately prior to the closing of the Company’s IPO 10,679,599 10,610,966 $ 259,254 |
Common Stock (Tables)
Common Stock (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Reserved Shares of Authorized but Unissued Common Stock | As of January 31, 2017 and October 31, 2017 the Company had reserved the following shares of authorized but unissued common stock: As of January 31, As of October 31, 2017 2017 (in shares) Convertible preferred stock 10,610,966 — Options and RSUs outstanding and shares available for grant 5,814,388 12,173,599 Convertible preferred stock warrants 40,250 — Common stock warrants 25,000 1,897,562 Total 16,490,604 14,071,161 |
Schedule of Weighted-Average Assumptions Used to Estimate Fair Value of Stock Options Granted | The weighted-average assumptions used to estimate the fair value of stock options granted in the following periods was: Three Months Ended October 31, Nine Months Ended October 31, 2016 2017 2016 2017 Risk-free interest rate 1.33 % 1.88 % 1.49 % 1.86 % Expected term (in years) 5.90 5.73 6.04 5.47 Expected volatility 54.90 % 52.73 % 62.12 % 48.21 % Dividend yield — — — — |
Summary of Restricted Stock Unit Activity | The following is a summary of RSU activity under the Company’s stock plans for the nine months ended October 31, 2017 is presented below: Shares Weighted average grant date fair value per share Outstanding—January 31, 2017 285,835 $ 30.60 Awarded 6,136,856 $ 9.88 Released — $ — Forfeited (262,528 ) $ 20.51 Outstanding—October 31, 2017 6,160,163 $ 10.39 |
Schedule of Total Stock-Based Compensation Expense Recognized | Total stock-based compensation expense recognized for stock award in the condensed consolidated statements of operations is as follows (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2016 2017 2016 2017 Stock-based compensation: Cost of product revenue $ 68 $ 334 $ 197 $ 1,095 Cost of support and maintenance revenue 71 358 243 1,011 Research and development 1,230 5,116 4,090 14,772 Sales and marketing 959 2,468 3,209 8,150 General and administrative 973 3,576 3,003 12,742 Total stock-based compensation expense (1) $ 3,301 $ 11,852 $ 10,742 $ 37,770 (1) In September 2017, the Company’s board of directors approved a restructuring plan, which resulted in a $0.7 million non-cash adjustment to restructuring charges for previously recognized stock-based compensation expense related to awards that will not vest as a result of the restructuring plan. Total stock-based compensation expense recognized for stock awards in the condensed consolidated statements of operations by type of awards is as follows (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2016 2017 2016 2017 Stock-based compensation: Stock options (1) (2) $ 3,301 $ 3,787 $ 10,742 $ 17,117 RSUs (2) — 7,547 — 19,945 ESPP — 518 — 708 Total stock-based compensation expense $ 3,301 $ 11,852 $ 10,742 $ 37,770 (1) In May 2017, the Company repriced each outstanding and unexercised stock option held by current service providers with an exercise price in excess of $13.68 per share (each, an "Eligible Option"), to a new exercise price of $13.68 per share, which is no less than the fair market value of the Company's common stock as determined by the Company's compensation committee on the date of repricing. Eligible Options covering 3,291,783 shares of the Company's common stock with a weighted average exercise price of $24.31 were repriced. Additional stock-based compensation expense related to this repricing is $7.3 million, of which $2.6 million was recognized immediately on the date of repricing for Eligible Options that were vested. (2) In September 2017, the Company’s board of directors approved a restructuring plan, which resulted in a $0.7 million non-cash adjustment to restructuring charges for previously recognized stock-based compensation expense related to awards that will not vest as a result of the restructuring plan. |
2017 Employee Stock Purchase Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Schedule of Black-Scholes Option-pricing Model to Determine Fair Value of Shares Purchased under ESPP with Weighted Average Assumptions on Date of Grant | The Company uses the Black-Scholes option-pricing model to determine the fair value of shares purchased under the ESPP with the following weighted average assumptions on the date of the grant: Three Months Ended October 31, Nine Months Ended October 31, 2016 2017 2016 2017 Risk-free interest rate n/a 1.35 % n/a 1.32 % Expected term (in years) n/a 1.25 n/a 1.38 Expected volatility n/a 50.35 % n/a 44.91 % Dividend yield n/a — n/a — |
2008 Stock Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Shares Available for Grant under Stock Plans | The following is a summary of shares available for grant under the Company’s stock plans for the year ended January 31, 2017 and the nine months ended October 31, 2017: Outstanding—January 31, 2016 156,417 Authorized 1,405,316 Options and RSUs granted (1,240,032 ) Options and RSUs canceled 738,891 Outstanding—January 31, 2017 1,060,592 Authorized 7,024,194 Options and RSUs granted (10,983,179 ) Options and RSUs canceled 4,150,318 Outstanding—October 31, 2017 1,251,925 |
Summary of Stock Option Activity | The following is a summary of stock option activity under the Company’s stock plans for the year ended January 31, 2017 and for the nine months ended October 31, 2017: Options Outstanding Number of shares underlying outstanding options Weighted- average exercise price Weighted- average remaining contractual term Aggregate Intrinsic Value (in years) (in thousands) Outstanding—January 31, 2016 4,421,035 $ 16.34 8.2 $ 59,882 Options granted 920,147 $ 30.25 Options exercised (168,380 ) $ 13.63 Options canceled (704,841 ) $ 19.35 Outstanding—January 31, 2017 4,467,961 $ 18.83 7.5 $ 60,756 Options granted 1,554,912 $ 16.91 Options exercised (720,985 ) $ 9.53 Options canceled (540,377 ) $ 16.04 Outstanding—October 31, 2017 4,761,511 $ 12.58 7.3 $ 375 Vested and exercisable January 31, 2017 2,380,167 $ 13.55 6.8 $ 44,719 October 31, 2017 2,940,235 $ 12.14 6.5 $ 375 Vested and Expected to Vest January 31, 2017 (1) 4,174,361 $ 18.54 7.5 $ 57,552 October 31, 2017 4,761,511 $ 12.58 7.3 $ 375 (1) The expected to vest options are a result of applying the forfeiture rate assumptions to unvested options outstanding. |
Net Loss per Share Attributab28
Net Loss per Share Attributable to Common Stockholders (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders | The computation of basic and diluted net loss per share attributable to common stockholders is as follows (in thousands, except share and per share data): Three Months Ended October 31, Nine Months Ended October 31, 2016 2017 2016 2017 Numerator: Net loss $ (23,770 ) $ (37,925 ) $ (80,253 ) $ (120,272 ) Deemed dividend to Series E and E-1 Convertible Preferred Stock — — — (6,588 ) Impact of adjustment to Series E, E-1 and F Convertible Preferred Stock — — — 26,336 Net loss attributable to common stockholders $ (23,770 ) $ (37,925 ) $ (80,253 ) $ (100,524 ) Denominator: Weighted-average common shares outstanding 3,532,500 31,324,097 3,502,327 15,923,536 Weighted-average unvested common shares subject to repurchase (72,640 ) (32,584 ) (89,880 ) (50,465 ) Weighted-average shares—basic and diluted 3,459,860 31,291,513 3,412,447 15,873,071 Net loss per share attributable to common stockholders—basic and diluted $ (6.87 ) $ (1.21 ) $ (23.52 ) $ (6.33 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The potential absolute shares of common stock that were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive are as follows: As of October 31, 2016 2017 (in shares) Convertible preferred stock (on an if-converted basis) 10,610,966 — Stock options and RSUs 4,799,629 10,921,674 Early exercised stock options 66,621 5,785 Convertible preferred stock warrants 40,250 — Common stock warrants 25,000 1,897,562 Total 15,542,466 12,825,021 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
Restructuring And Related Activities [Abstract] | |
Summary of Activities Related to the Restructuring Plan | A summary of activities related to the restructuring plan during the nine months ended October 31, 2017 is presented below (in thousands): Balance as of January 31, 2017 $ — Gross charges 1,830 Cash payments (563 ) Non-cash adjustments (1) (940 ) Balance as of October 31, 2017 $ 327 (1) The non-cash adjustments to restructuring charges primarily consist of the reversal of previously recognized stock-based compensation expense related to awards that will not vest and the reversal of incentive compensation that will not be paid as a result of the restructuring plan. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Geographic Area | The following table sets forth revenue by geographic area by customer location (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2016 2017 2016 2017 United States $ 24,084 $ 23,054 $ 57,537 $ 71,650 EMEA 4,659 4,882 12,756 14,020 Rest of the World 5,174 3,836 14,056 11,323 Total revenue $ 33,917 $ 31,772 $ 84,349 $ 96,993 |
Business Overview - Additional
Business Overview - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Aug. 31, 2017 | Jul. 31, 2017 | Jun. 30, 2017 | Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||
Proceeds from initial public offering, net of underwriting discounts and commissions | $ 62,314,000 | $ 0 | ||||||||
Conversion of convertible preferred stock | 7,382,007 | |||||||||
Net loss | $ 37,925,000 | $ 23,770,000 | 120,272,000 | $ 80,253,000 | $ 105,800,000 | $ 101,000,000 | $ 69,700,000 | |||
Gross proceeds related to sale of convertible preferred stock | $ 124,600,000 | |||||||||
Line of credit facility, outstanding borrowings | 50,000,000 | 50,000,000 | ||||||||
Revolving Credit Facility and Term Loan | ||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||
Line of credit facility, outstanding borrowings | $ 69,000,000 | $ 69,000,000 | ||||||||
Common Stock | IPO | ||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||
Number of shares issued | 8,572,000 | |||||||||
Shares price | $ 7 | |||||||||
Proceeds from initial public offering, net of underwriting discounts and commissions | $ 55,800,000 | |||||||||
Underwriting discounts and commissions | $ 4,200,000 | |||||||||
Conversion of convertible preferred stock | 17,992,973 | 17,992,973 | ||||||||
Common Stock | Over-allotment Option | ||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||
Number of shares issued | 1,000,000 | |||||||||
Shares price | $ 7 | |||||||||
Proceeds from initial public offering, net of underwriting discounts and commissions | $ 6,500,000 | |||||||||
Underwriting discounts and commissions | $ 500,000 |
Basis of Presentation and Sum32
Basis of Presentation and Summary of Significant Accounting Policies - Schedules of Concentration of Revenue and Accounts Receivable (Details) - Partner A - Customer Concentration Risk | Oct. 31, 2017 | Jan. 31, 2017 | Oct. 31, 2017 | Oct. 31, 2017 |
Revenue | ||||
Accounting Policies [Line Items] | ||||
Concentration risk percentage | 36.00% | 27.00% | ||
Accounts Receivable | ||||
Accounting Policies [Line Items] | ||||
Concentration risk percentage | 37.00% | 16.00% |
Basis of Presentation and Sum33
Basis of Presentation and Summary of Significant Accounting Policies - Schedules of Concentration of Revenue and Accounts Receivable (Parenthetical) (Details) - Partner A - Customer Concentration Risk | Oct. 31, 2017 | Jan. 31, 2017 | Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 |
Revenue | ||||||
Accounting Policies [Line Items] | ||||||
Concentration risk percentage | 36.00% | 27.00% | ||||
Revenue | Maximum | ||||||
Accounting Policies [Line Items] | ||||||
Concentration risk percentage | 10.00% | 10.00% | ||||
Accounts Receivable | ||||||
Accounting Policies [Line Items] | ||||||
Concentration risk percentage | 37.00% | 16.00% | ||||
Accounts Receivable | Maximum | ||||||
Accounting Policies [Line Items] | ||||||
Concentration risk percentage | 10.00% |
Basis of Presentation and Sum34
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) | Oct. 31, 2017USD ($) | Jan. 31, 2017USD ($) | Oct. 31, 2017USD ($) | Oct. 31, 2016USD ($) | Oct. 31, 2017USD ($)Contract | Oct. 31, 2016USD ($) |
Accounting Policies [Line Items] | ||||||
Number of independent contract manufacturer | Contract | 1 | |||||
Income tax effect of currency translation adjustments related to foreign subsidiaries | $ 0 | |||||
Allowance for doubtful accounts | $ 0 | $ 100,000 | $ 0 | 0 | ||
Allowance for returns | 400,000 | 300,000 | ||||
Inventory write-downs | 500,000 | $ 300,000 | $ 1,400,000 | $ 900,000 | ||
Warranty for hardware components | 1 year | |||||
Warranty on software products | 90 days | |||||
Warranty reserve | 0 | 0 | $ 0 | |||
Capitalized computer software, development costs | $ 0 | $ 0 | 0 | 0 | ||
Advertising costs | 300,000 | 200,000 | $ 2,200,000 | 600,000 | ||
Employee is required to provide service period | 4 years | |||||
Minimum | ||||||
Accounting Policies [Line Items] | ||||||
Estimated useful lives | 24 months | |||||
Support and maintenance contracts, period | 1 year | |||||
Maximum | ||||||
Accounting Policies [Line Items] | ||||||
Estimated useful lives | 60 months | |||||
Support and maintenance contracts, period | 5 years | |||||
Maximum | Sales Demonstration Equipment | ||||||
Accounting Policies [Line Items] | ||||||
Estimated useful lives | 24 months | |||||
Maximum | Leasehold Improvements | ||||||
Accounting Policies [Line Items] | ||||||
Estimated useful lives | 8 years | |||||
Cost of Product Revenue | ||||||
Accounting Policies [Line Items] | ||||||
Inventory write-downs | 100,000 | 0 | $ 300,000 | 0 | ||
Cost of Support and Maintenance Revenue | ||||||
Accounting Policies [Line Items] | ||||||
Inventory write-downs | $ 400,000 | $ 300,000 | $ 1,100,000 | $ 900,000 |
Basis of Presentation and Sum35
Basis of Presentation and Summary of Significant Accounting Policies - Summary of Inventories by Major Category (Details) - USD ($) $ in Thousands | Oct. 31, 2017 | Jan. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 390 | $ 264 |
Finished goods | 6,568 | 6,245 |
Inventories, net | $ 6,958 | $ 6,509 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Oct. 31, 2017 | Jan. 31, 2017 |
Short-term investments: | ||
Total short-term investments | $ 5,994 | $ 0 |
Recurring | ||
Cash equivalents: | ||
Total cash equivalents | 31,685 | 31,468 |
Total assets measured at fair value | 37,679 | 31,468 |
Convertible preferred warrants: | ||
Total convertible preferred stock warrants | 568 | |
Total liabilities measured at fair value | 568 | |
Short-term investments: | ||
Total short-term investments | 5,994 | |
Recurring | Corporate Debt Securities | ||
Short-term investments: | ||
Total short-term investments | 5,994 | |
Recurring | Series E Convertible Preferred Stock Warrants | ||
Convertible preferred warrants: | ||
Total convertible preferred stock warrants | 568 | |
Recurring | Money Market Funds | ||
Cash equivalents: | ||
Total cash equivalents | 31,685 | 31,468 |
Recurring | Level 1 | ||
Cash equivalents: | ||
Total cash equivalents | 31,685 | 31,468 |
Total assets measured at fair value | 31,685 | 31,468 |
Recurring | Level 1 | Money Market Funds | ||
Cash equivalents: | ||
Total cash equivalents | 31,685 | 31,468 |
Recurring | Level 2 | ||
Cash equivalents: | ||
Total assets measured at fair value | 5,994 | |
Short-term investments: | ||
Total short-term investments | 5,994 | |
Recurring | Level 2 | Corporate Debt Securities | ||
Short-term investments: | ||
Total short-term investments | $ 5,994 | |
Recurring | Level 3 | ||
Convertible preferred warrants: | ||
Total convertible preferred stock warrants | 568 | |
Total liabilities measured at fair value | 568 | |
Recurring | Level 3 | Series E Convertible Preferred Stock Warrants | ||
Convertible preferred warrants: | ||
Total convertible preferred stock warrants | $ 568 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Changes in Fair Value of Convertible Preferred Stock Warrant Liability (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Oct. 31, 2017 | Jan. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Convertible preferred stock warrant liability—beginning balance | $ 568 | $ 532 |
Change in fair value | (470) | 36 |
Issuance of convertible preferred stock warrants | 277 | |
Reclassification of convertible preferred stock warrant liability to additional paid in capital | $ (375) | |
Convertible preferred stock warrant liability—ending balance | $ 568 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | Jan. 31, 2017 | |
Balance Sheet Components Disclosure [Abstract] | |||||
Short-term investments | $ 5,994 | $ 5,994 | $ 0 | ||
Other than temporary impairment on investments | 0 | ||||
Depreciation and amortization | $ 1,700 | $ 2,300 | $ 5,330 | $ 7,137 |
Balance Sheet Components - Summ
Balance Sheet Components - Summary of Fair Value of Available for Sale Investments (Details) $ in Thousands | Oct. 31, 2017USD ($) |
Balance Sheet Components Disclosure [Abstract] | |
Due within one year, carrying amount | $ 5,994 |
Due within one year, fair value | 5,994 |
Total, carrying amount | 5,994 |
Total, fair value | $ 5,994 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Oct. 31, 2017 | Jan. 31, 2017 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 37,407 | $ 32,573 |
Less accumulated depreciation and amortization | (27,184) | (22,163) |
Total property and equipment, net | 10,223 | 10,410 |
Computer Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 19,902 | 17,431 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 5,944 | 5,941 |
Sales Demonstration Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 7,350 | 5,903 |
Beta Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 1,639 | 1,060 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 1,777 | 1,550 |
Software | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 660 | 649 |
Construction in Progress | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 135 | $ 39 |
Balance Sheet Components - Sc41
Balance Sheet Components - Schedule of Accrued and Other Liabilities (Details) - USD ($) $ in Thousands | Oct. 31, 2017 | Jan. 31, 2017 |
Balance Sheet Components Disclosure [Abstract] | ||
Accrued sales and use taxes payable | $ 2,081 | $ 1,697 |
Accrued sales commissions | 2,565 | 4,706 |
Accrued bonus | 1,177 | 2,427 |
Accrued vacation | 3,787 | 3,561 |
Other accruals | 8,807 | 8,277 |
Total accrued and other current liabilities | $ 18,417 | $ 20,668 |
Debt Obligations - Summary of D
Debt Obligations - Summary of Debt Obligations, Net of Debt Discount and Deferred Financing Costs (Details) - USD ($) $ in Thousands | Oct. 31, 2017 | Jan. 31, 2017 |
Debt Instrument [Line Items] | ||
Total debt | $ 68,569 | $ 48,914 |
Less current portion of debt | (18,962) | 0 |
Long-term debt | 49,607 | 48,914 |
Revolving Line of Credit | ||
Debt Instrument [Line Items] | ||
Total debt | 18,962 | 13,962 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Total debt | $ 49,607 | $ 34,952 |
Debt Obligations - Additional I
Debt Obligations - Additional Information (Details) - USD ($) | Oct. 31, 2017 | Jun. 30, 2017 | May 31, 2017 | Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2017 | Jan. 31, 2017 |
Debt Instrument [Line Items] | |||||||||
Line of credit facility maximum borrowing capacity | $ 50,000,000 | $ 50,000,000 | $ 50,000,000 | ||||||
Line of credit facility, outstanding borrowings | 50,000,000 | 50,000,000 | 50,000,000 | ||||||
Line of credit facility with extended maturity date | $ 30,000,000 | $ 30,000,000 | $ 30,000,000 | ||||||
Line of credit facility, extended maturity month and year | 2020-08 | ||||||||
Interest rate, percentage | 1.50% | 1.50% | 1.50% | ||||||
Credit facility covenants compliance | As of January 31, 2017 and October 31, 2017, the Company was in compliance with all of the covenants contained in its credit facility with SVB. | ||||||||
Amortization of credit facility fees and debt issuance costs and discounts to interest expense | $ 100,000 | $ 0 | $ 200,000 | $ 200,000 | |||||
Credit facility fee balance | $ 0 | 0 | 0 | $ 0 | |||||
Debt issuance cost and discounts balance | 400,000 | 400,000 | 400,000 | 0 | |||||
Accreted balloon payment balance | 2,600,000 | 2,600,000 | $ 2,600,000 | $ 1,400,000 | |||||
Common Stock | IPO | |||||||||
Debt Instrument [Line Items] | |||||||||
Shares price | $ 7 | ||||||||
Note Purchase Agreement | Convertible Promissory Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility maximum borrowing capacity | $ 25,000,000 | ||||||||
Interest rate, percentage | 8.00% | ||||||||
Required days of written notice | 30 days | ||||||||
Notes expiry date | Dec. 31, 2019 | ||||||||
Maturity period | 18 months | ||||||||
Conversion of amount outstanding start date | Dec. 1, 2019 | ||||||||
Period preceding conversion | 30 days | ||||||||
Notes issued and sold | 0 | ||||||||
Note Purchase Agreement | Convertible Promissory Notes | Common Stock | IPO | |||||||||
Debt Instrument [Line Items] | |||||||||
Shares price | $ 7 | ||||||||
Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Amount to be paid on or before the maturity date | $ 20,000,000 | ||||||||
9% Line of credit facility due in February 2019 | |||||||||
Debt Instrument [Line Items] | |||||||||
Amount outstanding | $ 15,000,000 | $ 15,000,000 | $ 15,000,000 | ||||||
Credit facility, bears interest rate | 9.00% | 9.00% | 9.00% | ||||||
Line of credit facility, maturity month and year | 2019-02 | ||||||||
11.25% Line of credit facility due in February 2019 | |||||||||
Debt Instrument [Line Items] | |||||||||
Amount outstanding | $ 35,000,000 | $ 35,000,000 | $ 35,000,000 | ||||||
Credit facility, bears interest rate | 11.25% | 11.25% | 11.25% | ||||||
Line of credit facility, maturity month and year | 2019-02 | ||||||||
Revolving Line of Credit | SVB Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility maximum borrowing capacity | $ 20,000,000 | $ 20,000,000 | $ 20,000,000 | ||||||
Line of credit facility, outstanding borrowings | $ 19,000,000 | $ 19,000,000 | $ 19,000,000 | ||||||
Line of credit facility expiration period | 2018-05 | ||||||||
Line of credit facility, weighted average interest rate | 4.84% | 4.84% | 4.84% |
Debt Obligations - Scheduled Pr
Debt Obligations - Scheduled Principal Payments on Outstanding Borrowings (Details) - USD ($) $ in Thousands | Oct. 31, 2017 | Jan. 31, 2017 |
Debt Instruments [Abstract] | ||
Fiscal 2,019 | $ 18,962 | $ 48,962 |
Fiscal 2,020 | 50,000 | |
Total | 68,962 | 48,962 |
Less debt discount | (393) | (48) |
Less current portion | (18,962) | 0 |
Non-current portion | $ 49,607 | $ 48,914 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017class | Jul. 31, 2017class | Oct. 31, 2017USD ($) | Oct. 31, 2016USD ($) | Oct. 31, 2017USD ($) | Oct. 31, 2016USD ($) | Jan. 31, 2017USD ($) | |
Loss Contingencies [Line Items] | |||||||
Noncancelable operating lease expiration, start year | 2,018 | ||||||
Noncancelable operating lease expiration, end year | 2,023 | ||||||
Noncancelable capital lease expiration, start year | 2,018 | ||||||
Noncancelable capital lease expiration, end year | 2,023 | ||||||
Operating leases, rent expense | $ 1,600,000 | $ 1,500,000 | $ 4,700,000 | $ 3,800,000 | |||
Number of class action lawsuits filed | class | 4 | ||||||
Litigation reserve | 0 | 0 | |||||
Purchase commitment with contract manufacturer | $ 18,700,000 | $ 18,700,000 | $ 13,500,000 | ||||
California | |||||||
Loss Contingencies [Line Items] | |||||||
Number of class action lawsuits filed | class | 3 |
Commitments and Contingencies46
Commitments and Contingencies - Schedule of Future Minimum Lease Payments under Noncancelable Operating Leases (Details) - USD ($) $ in Thousands | Oct. 31, 2017 | Jan. 31, 2017 |
Commitments And Contingencies Disclosure [Abstract] | ||
2,018 | $ 7,121 | |
Remaining Fiscal 2018 | $ 1,859 | |
2,019 | 7,086 | 7,019 |
2,020 | 7,154 | 7,127 |
2,021 | 7,192 | 7,021 |
2,022 | 7,221 | 7,068 |
Thereafter | 3,984 | 3,984 |
Committed gross lease payments | 34,496 | 39,340 |
Less proceeds from sublease rental | (3,333) | (4,244) |
Net operating lease obligation | $ 31,163 | $ 35,096 |
Commitments and Contingencies47
Commitments and Contingencies - Schedule of Future Minimum Lease Payments under Noncancelable Capital Leases (Details) - USD ($) $ in Thousands | Oct. 31, 2017 | Jan. 31, 2017 |
Commitments And Contingencies Disclosure [Abstract] | ||
Remaining fiscal 2018 | $ 26 | |
2,018 | $ 216 | |
2,019 | 92 | 96 |
2,020 | 73 | 77 |
Total | 191 | 389 |
Interest | (9) | (20) |
Total | $ 182 | $ 369 |
Convertible Preferred Stock - S
Convertible Preferred Stock - Schedule of Conversion of Convertible Preferred Stock into Common Stock (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Oct. 31, 2017 | Jan. 31, 2017 | |
Temporary Equity [Line Items] | ||
Number of shares authorized | 10,679,599 | 10,651,216 |
Shares issued | 10,610,966 | 10,610,966 |
Shares outstanding | 10,610,966 | 10,610,966 |
Liquidation preference | $ 259,254 | $ 259,254 |
Series A Convertible Preferred Stock | ||
Temporary Equity [Line Items] | ||
Date issued | 2008-08 | |
Number of shares authorized | 1,533,329 | |
Shares issued | 1,533,329 | |
Shares outstanding | 1,533,329 | |
Liquidation preference | $ 4,600 | |
Series B Convertible Preferred Stock | ||
Temporary Equity [Line Items] | ||
Date issued | 2009-07 | |
Number of shares authorized | 2,119,997 | |
Shares issued | 2,119,997 | |
Shares outstanding | 2,119,997 | |
Liquidation preference | $ 12,000 | |
Series C Convertible Preferred Stock | ||
Temporary Equity [Line Items] | ||
Date issued | 2011-05 | |
Number of shares authorized | 1,312,311 | |
Shares issued | 1,312,311 | |
Shares outstanding | 1,312,311 | |
Liquidation preference | $ 18,100 | |
Series D Convertible Preferred Stock | ||
Temporary Equity [Line Items] | ||
Date issued | 2012-07 | |
Number of shares authorized | 1,092,149 | |
Shares issued | 1,092,149 | |
Shares outstanding | 1,092,149 | |
Liquidation preference | $ 25,000 | |
Series E Convertible Preferred Stock | ||
Temporary Equity [Line Items] | ||
Date issued | 2014-01 | |
Number of shares authorized | 1,681,912 | |
Shares issued | 1,641,662 | |
Shares outstanding | 1,641,662 | |
Liquidation preference | $ 71,377 | |
Series E-1 Convertible Preferred Stock | ||
Temporary Equity [Line Items] | ||
Date issued | 2014-01 | |
Number of shares authorized | 83,333 | |
Shares issued | 83,333 | |
Shares outstanding | 83,333 | |
Liquidation preference | $ 3,623 | |
Series F Convertible Preferred Stock | ||
Temporary Equity [Line Items] | ||
Date issued | 2017-02 | 2015-07 |
Number of shares authorized | 28,383 | 2,828,185 |
Shares issued | 2,828,185 | |
Shares outstanding | 2,828,185 | |
Liquidation preference | $ 124,554 |
Convertible Preferred Stock - A
Convertible Preferred Stock - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Jul. 31, 2017 | Jun. 30, 2017 | Apr. 30, 2017 | Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Temporary Equity [Line Items] | |||||||
Series E and E-1 Convertible Preferred Stock purchase price | $ 43.47828 | ||||||
Series E and E-1 Convertible Preferred Stock threshold of stock price trigger | $ 47.826108 | ||||||
Deemed dividend to Series E and E-1 Convertible Preferred Stock | $ 6,600 | $ 0 | $ 0 | $ (6,588) | $ 0 | ||
Conversion of convertible preferred stock | 7,382,007 | ||||||
Number of common stock purchase | 1,666,665 | ||||||
Warrant exercisable period | 10 years | ||||||
Warrant exercised price | $ 16.44 | ||||||
Impact of adjustment to Series E, E-1 and F Convertible Preferred Stock | 0 | $ 0 | 26,336 | 0 | |||
Common stock warrants issued to Series E-2 and F-2 Holders | 14,641 | $ 0 | |||||
Additional loan drawn | 50,000 | 50,000 | |||||
New Facility Agreement | |||||||
Temporary Equity [Line Items] | |||||||
Additional loan drawn | $ 10,000 | $ 10,000 | |||||
Common Stock | IPO | |||||||
Temporary Equity [Line Items] | |||||||
Conversion of convertible preferred stock | 17,992,973 | 17,992,973 | |||||
Convertible Preferred Stock Warrants | |||||||
Temporary Equity [Line Items] | |||||||
Conversion of convertible preferred stock | 68,633 | ||||||
Common Stock Warrants | |||||||
Temporary Equity [Line Items] | |||||||
Conversion of stock | 205,897 | 205,897 | |||||
Warrants exercisable upon additional loan drawn | 34,058 | 34,058 |
Common Stock - Summary of Reser
Common Stock - Summary of Reserved Shares of Authorized but Unissued Common Stock (Details) - shares | Oct. 31, 2017 | Jan. 31, 2017 |
Class Of Stock [Line Items] | ||
Shares reserved for future issuance | 14,071,161 | 16,490,604 |
Convertible Preferred Stock | ||
Class Of Stock [Line Items] | ||
Shares reserved for future issuance | 10,610,966 | |
Convertible Preferred Stock Warrants | ||
Class Of Stock [Line Items] | ||
Shares reserved for future issuance | 40,250 | |
Options and RSUs Outstanding and Shares Available For Grant | ||
Class Of Stock [Line Items] | ||
Shares reserved for future issuance | 12,173,599 | 5,814,388 |
Common Stock Warrants | ||
Class Of Stock [Line Items] | ||
Shares reserved for future issuance | 1,897,562 | 25,000 |
Common Stock - Additional Infor
Common Stock - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2017USD ($)$ / sharesshares | May 31, 2017USD ($)$ / sharesshares | Jul. 31, 2013USD ($)$ / sharesshares | Oct. 31, 2017USD ($)$ / sharesshares | Oct. 31, 2016USD ($)$ / shares | Oct. 31, 2017USD ($)$ / sharesshares | Oct. 31, 2016USD ($)$ / shares | Jan. 31, 2014USD ($)Employee | Jan. 31, 2008 | Jan. 31, 2017USD ($)shares | |
Class Of Stock [Line Items] | ||||||||||
Shares reserved for future issuance | 14,071,161 | 14,071,161 | 16,490,604 | |||||||
Common stock subject to repurchase | 5,785 | 5,785 | 49,234 | |||||||
Common stock subject to repurchase, aggregate purchase price | $ | $ 100,000 | $ 100,000 | $ 500,000 | |||||||
Number of executive employees exercised stock options early | Employee | 1 | |||||||||
Number of non-executive employees exercised stock options early | Employee | 1 | |||||||||
Additional options of fully vested and exercisable options issued | 2,940,235 | 2,940,235 | 2,380,167 | |||||||
Proceeds from exercise of stock options | $ | $ 470,000 | $ 1,459,000 | ||||||||
Additional stock-based compensation | $ | 37,770,000 | 10,742,000 | ||||||||
Aggregate intrinsic value of stock options exercised | $ | $ 0 | $ 1,000,000 | $ 600,000 | $ 1,900,000 | ||||||
Weighted-average grant date fair value, Options granted | $ / shares | $ 2.42 | $ 16.21 | $ 7.97 | $ 17.36 | ||||||
Unrecognized stock-based compensation expense | $ | $ 66,500,000 | $ 66,500,000 | ||||||||
Weighted average period over which unrecognized compensation is expected to be recognized | 2 years 2 months 13 days | |||||||||
Number of common stock purchase | 1,666,665 | |||||||||
Warrant exercisable period | 10 years | |||||||||
Warrant exercised price | $ / shares | $ 16.44 | |||||||||
Conversion of convertible preferred stock | 7,382,007 | |||||||||
Additional loan drawn | $ | $ 50,000,000 | $ 50,000,000 | ||||||||
Convertible Preferred Stock Warrants | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Conversion of convertible preferred stock | 68,633 | |||||||||
Common Stock Warrants | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Shares reserved for future issuance | 1,897,562 | 1,897,562 | 25,000 | |||||||
Conversion of stock | 205,897 | 205,897 | ||||||||
Warrants exercisable upon additional loan drawn | 34,058 | 34,058 | ||||||||
Loan and Security Agreement | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Number of common stock purchase | 4,167 | |||||||||
Fair value of warrant | $ | $ 27,000 | |||||||||
Warrant to purchase additional common stock | 20,833 | |||||||||
Exercise price of warrant | $ / shares | $ 7.80 | |||||||||
Warrant expiration date | May 31, 2023 | |||||||||
Issuance of additional common stock warrant | $ | $ 100,000 | |||||||||
Unamortized debt discount written off | $ | $ 100,000 | |||||||||
Full-recourse Promissory Note | Executive and Non-executive Employee | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Debt instrument principal amount | $ | $ 2,200,000 | |||||||||
Full-recourse Promissory Note | Executive Employee | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Additional options of fully vested and exercisable options issued | 88,520 | |||||||||
Proceeds from exercise of stock options | $ | $ 1,000,000 | |||||||||
Common stock repurchased | 88,520 | |||||||||
Common stock repurchased price per share | $ / shares | $ 13.68 | |||||||||
Additional stock-based compensation | $ | $ 500,000 | |||||||||
Partial-recourse Promissory Note | Executive Employee | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Debt instrument principal amount | $ | $ 6,600,000 | |||||||||
Debt instrument interest rate percentage | 1.92% | |||||||||
Additional options of fully vested and exercisable options issued | 501,104 | |||||||||
Proceeds from exercise of stock options | $ | $ 6,900,000 | |||||||||
Common stock repurchased | 501,104 | |||||||||
Common stock repurchased price per share | $ / shares | $ 13.68 | |||||||||
Additional stock-based compensation | $ | $ 0 | |||||||||
New Facility Agreement | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Additional loan drawn | $ | $ 10,000,000 | $ 10,000,000 | ||||||||
Minimum | Full-recourse Promissory Note | Executive and Non-executive Employee | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Debt instrument interest rate percentage | 1.62% | |||||||||
Maximum | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Number of common stock purchase | 1,666,665 | |||||||||
Maximum | Full-recourse Promissory Note | Executive and Non-executive Employee | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Debt instrument interest rate percentage | 1.64% | |||||||||
Performance RSUs | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Share-based compensation arrangement by share-based payment award, vesting period | 2 years | |||||||||
2017 Employee Stock Purchase Plan | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Shares reserved for future issuance | 907,000 | |||||||||
Exercise price as percentage of fair market value of common stock | 85.00% | |||||||||
Percentage of outstanding common stock | 1.00% | |||||||||
Maximum percentage of common stock eligible to purchase through payroll deductions for employees | 15.00% | |||||||||
Maximum number of shares available for participant to purchase during period | $ | $ 25,000,000 | |||||||||
Maximum number of shares available for participant to purchase during period | 2,000 | |||||||||
Offering period | 24 months | |||||||||
First offering period start date | Jun. 29, 2017 | |||||||||
2017 Employee Stock Purchase Plan | IPO | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Share price | $ / shares | $ 7 | |||||||||
2017 Employee Stock Purchase Plan | Maximum | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Number of shares increased annually to common stock shares reserve for issuance | 907,000 | |||||||||
2008 Stock Plan | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Shares reserved for future issuance | 7,688,078 | |||||||||
2008 Stock Plan | Minimum | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Exercise price as percentage of fair market value of common stock | 100.00% | |||||||||
2008 Stock Plan | ISOs | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Service period | 1 year | |||||||||
Share-based compensation arrangement by share-based payment award, vesting period | 36 months | |||||||||
Expiration period from date of grant | 10 years | |||||||||
2008 Stock Plan | ISOs | Completion of One Year of Service | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Vesting rate | 25.00% | |||||||||
2008 Stock Plan | NSOs | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Expiration period from date of grant | 10 years | |||||||||
2017 Equity Incentive Plan | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Shares reserved for future issuance | 4,537,000 | |||||||||
2017 Equity Incentive Plan | Minimum | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Exercise price as percentage of fair market value of common stock | 100.00% | |||||||||
2017 Equity Incentive Plan | ISOs | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Service period | 1 year | |||||||||
Share-based compensation arrangement by share-based payment award, vesting period | 36 months | |||||||||
Expiration period from date of grant | 10 years | |||||||||
2017 Equity Incentive Plan | ISOs | Completion of One Year of Service | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Vesting rate | 25.00% | |||||||||
2017 Equity Incentive Plan | NSOs | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Expiration period from date of grant | 10 years |
Common Stock - Summary of Share
Common Stock - Summary of Shares Available for Grant under Stock Plans (Details) - shares | 9 Months Ended | 12 Months Ended |
Oct. 31, 2017 | Jan. 31, 2017 | |
Equity [Abstract] | ||
Outstanding, beginning balance | 1,060,592 | 156,417 |
Authorized | 7,024,194 | 1,405,316 |
Options and RSUs granted | (10,983,179) | (1,240,032) |
Options and RSUs canceled | 4,150,318 | 738,891 |
Outstanding, ending balance | 1,251,925 | 1,060,592 |
Common Stock - Summary of Stock
Common Stock - Summary of Stock Option Activity under Stock Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Oct. 31, 2017 | Jan. 31, 2017 | Jan. 31, 2016 | ||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Number of shares underlying outstanding options, beginning balance | 4,467,961 | 4,421,035 | ||
Number of shares underlying outstanding, Options granted | 1,554,912 | 920,147 | ||
Number of shares underlying outstanding, Options exercised | (720,985) | (168,380) | ||
Number of shares underlying outstanding, Options canceled | (540,377) | (704,841) | ||
Number of shares underlying outstanding options, ending balance | 4,761,511 | 4,467,961 | 4,421,035 | |
Number of shares underlying, Options vested and exercisable | 2,940,235 | 2,380,167 | ||
Number of shares underlying, Options vested and expected to vest | 4,761,511 | 4,174,361 | [1] | |
Weighted average exercise price, Outstanding beginning balance | $ 18.83 | $ 16.34 | ||
Weighted average exercise price, Options granted | 16.91 | 30.25 | ||
Weighted average exercise price, Options exercised | 9.53 | 13.63 | ||
Weighted average exercise price, Options canceled | 16.04 | 19.35 | ||
Weighted average exercise price, Outstanding ending balance | 12.58 | 18.83 | $ 16.34 | |
Weighted average exercise price, Options vested and exercisable | 12.14 | 13.55 | ||
Weighted average exercise price, Vested and Expected to Vest | $ 12.58 | $ 18.54 | [1] | |
Weighted-average remaining contractual term, Options Outstanding | 7 years 3 months 18 days | 7 years 6 months | 8 years 2 months 12 days | |
Weighted-average remaining contractual term, Vested and exercisable | 6 years 6 months | 6 years 9 months 18 days | ||
Weighted-average remaining contractual term, Vested and Expected to Vest | 7 years 3 months 18 days | 7 years 6 months | [1] | |
Aggregate Intrinsic Value, Options Outstanding | $ 375 | $ 60,756 | $ 59,882 | |
Aggregate Intrinsic Value, Vested and exercisable | 375 | 44,719 | ||
Aggregate Intrinsic Value, Vested and Expected to Vest | $ 375 | $ 57,552 | [1] | |
[1] | The expected to vest options are a result of applying the forfeiture rate assumptions to unvested options outstanding. |
Common Stock - Schedule of Weig
Common Stock - Schedule of Weighted-Average Assumptions Used to Estimate Fair Value of Stock Options Granted (Details) | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Risk-free interest rate | 1.88% | 1.33% | 1.86% | 1.49% |
Expected term (in years) | 5 years 8 months 23 days | 5 years 10 months 25 days | 5 years 5 months 20 days | 6 years 15 days |
Expected volatility | 52.73% | 54.90% | 48.21% | 62.12% |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Common Stock - Summary of Restr
Common Stock - Summary of Restricted Stock Unit Activity under Stock Plans (Details) - RSUs | 9 Months Ended |
Oct. 31, 2017$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares outstanding, beginning balance | shares | 285,835 |
Shares, Awarded | shares | 6,136,856 |
Shares, Released | shares | 0 |
Shares, Forfeited | shares | (262,528) |
Shares outstanding, ending balance | shares | 6,160,163 |
Weighted average grant date fair value per share, Outstanding beginning balance | $ / shares | $ 30.60 |
Weighted average grant date fair value per share, Awarded | $ / shares | 9.88 |
Weighted average grant date fair value per share, Released | $ / shares | 0 |
Weighted average grant date fair value per share, Forfeited | $ / shares | 20.51 |
Weighted average grant date fair value per share, Outstanding ending balance | $ / shares | $ 10.39 |
Common Stock - Schedule of Blac
Common Stock - Schedule of Black-Scholes Option-pricing Model to Determine Fair Value of Shares Purchased under ESPP with Weighted Average Assumptions on Date of Grant (Details) | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Risk-free interest rate | 1.88% | 1.33% | 1.86% | 1.49% |
Expected term (in years) | 5 years 8 months 23 days | 5 years 10 months 25 days | 5 years 5 months 20 days | 6 years 15 days |
Expected volatility | 52.73% | 54.90% | 48.21% | 62.12% |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
2017 Employee Stock Purchase Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Risk-free interest rate | 1.35% | 0.00% | 1.32% | 0.00% |
Expected term (in years) | 1 year 3 months | 1 year 4 months 17 days | ||
Expected volatility | 50.35% | 0.00% | 44.91% | 0.00% |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Common Stock - Schedule of Tota
Common Stock - Schedule of Total Stock-Based Compensation Expense Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Stock-based compensation: | ||||
Total stock-based compensation expense | $ 11,852 | $ 3,301 | $ 37,770 | $ 10,742 |
Cost of Product Revenue | ||||
Stock-based compensation: | ||||
Total stock-based compensation expense | 334 | 68 | 1,095 | 197 |
Cost of Support and Maintenance Revenue | ||||
Stock-based compensation: | ||||
Total stock-based compensation expense | 358 | 71 | 1,011 | 243 |
Research and development | ||||
Stock-based compensation: | ||||
Total stock-based compensation expense | 5,116 | 1,230 | 14,772 | 4,090 |
Sales and marketing | ||||
Stock-based compensation: | ||||
Total stock-based compensation expense | 2,468 | 959 | 8,150 | 3,209 |
General and administrative | ||||
Stock-based compensation: | ||||
Total stock-based compensation expense | $ 3,576 | $ 973 | $ 12,742 | $ 3,003 |
Common Stock - Schedule of To58
Common Stock - Schedule of Total Stock-Based Compensation Expense Recognized (Parenthetical) (Details) $ in Millions | 1 Months Ended |
Sep. 30, 2017USD ($) | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Non-cash adjustments | $ 0.7 |
Common Stock - Schedule of To59
Common Stock - Schedule of Total Stock-Based Compensation Expense Recognized by Type of Award (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Stock-based compensation: | ||||
Total stock-based compensation expense | $ 11,852 | $ 3,301 | $ 37,770 | $ 10,742 |
Stock Options | ||||
Stock-based compensation: | ||||
Total stock-based compensation expense | 3,787 | $ 3,301 | 17,117 | $ 10,742 |
RSUs | ||||
Stock-based compensation: | ||||
Total stock-based compensation expense | 7,547 | 19,945 | ||
ESPP | ||||
Stock-based compensation: | ||||
Total stock-based compensation expense | $ 518 | $ 708 |
Common Stock - Schedule of To60
Common Stock - Schedule of Total Stock-Based Compensation Expense Recognized by Type of Award (Parenthetical) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | May 31, 2017 | Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | Apr. 30, 2017 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||||||
Additional stock-based compensation expense | $ 11,852,000 | $ 3,301,000 | $ 37,770,000 | $ 10,742,000 | |||
Non-cash adjustments | $ 700,000 | ||||||
Eligible Option | |||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||||||
Outstanding and unexercised stock option exercise price | $ 13.68 | ||||||
Eligible options shares of common stock repriced | 3,291,783 | ||||||
Eligible options repriced common stock weighted average exercise price | $ 24.31 | ||||||
Additional stock-based compensation expense | $ 2,600 | $ 7,300 | |||||
Minimum | |||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||||||
Outstanding and unexercised stock option exercise price | $ 13.68 |
401(k) Plan - Additional Inform
401(k) Plan - Additional Information (Details) - USD ($) | 9 Months Ended | |
Oct. 31, 2017 | Oct. 31, 2016 | |
Defined Benefit Pension Plans And Defined Benefit Postretirement Plans Disclosure [Abstract] | ||
Percentage of contributions under the saving plan, vested | 100.00% | |
Defined benefit plan, contributions by plan eligible participants | $ 0 | $ 0 |
Net Loss Per Share Attributab62
Net Loss Per Share Attributable to Common Stockholders - Summary of Computation of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Apr. 30, 2017 | Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Earnings Per Share [Abstract] | ||||||||
Net loss | $ (37,925) | $ (23,770) | $ (120,272) | $ (80,253) | $ (105,800) | $ (101,000) | $ (69,700) | |
Deemed dividend to Series E and E-1 Convertible Preferred Stock | $ 6,600 | 0 | 0 | (6,588) | 0 | |||
Impact of adjustment to Series E, E-1 and F Convertible Preferred Stock | 0 | 0 | 26,336 | 0 | ||||
Net loss attributable to common stockholders | $ (37,925) | $ (23,770) | $ (100,524) | $ (80,253) | ||||
Weighted-average common shares outstanding | 31,324,097 | 3,532,500 | 15,923,536 | 3,502,327 | ||||
Weighted-average unvested common shares subject to repurchase | (32,584) | (72,640) | (50,465) | (89,880) | ||||
Weighted-average shares used in computing net loss per share attributable to common stockholders—basic and diluted | 31,291,513 | 3,459,860 | 15,873,071 | 3,412,447 | ||||
Net loss per share attributable to common stockholders— basic and diluted | $ (1.21) | $ (6.87) | $ (6.33) | $ (23.52) |
Net Loss Per Share Attributab63
Net Loss Per Share Attributable to Common Stockholders - Summary of Potential Absolute Shares Excluded from Computation of Diluted Net Loss Per Share Attributable to Common Stockholders (Details) - shares | 9 Months Ended | |
Oct. 31, 2017 | Oct. 31, 2016 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings per share | 12,825,021 | 15,542,466 |
Convertible preferred stock (on an if-converted basis) | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings per share | 0 | 10,610,966 |
Stock Options and RSUs | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings per share | 10,921,674 | 4,799,629 |
Early Exercised Stock Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings per share | 5,785 | 66,621 |
Convertible Preferred Stock Warrants | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings per share | 0 | 40,250 |
Common Stock Warrants | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings per share | 1,897,562 | 25,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 132 | $ 89 | $ 428 | $ 440 |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring charges | $ 890 | $ 0 | $ 890 | $ 0 | |
Minimum | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Board of directors approved percentage of restructuring and reduction in force plan | 10.00% |
Restructuring Charges - Summary
Restructuring Charges - Summary of Activities Related to the Restructuring Plan (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | ||
Restructuring And Related Activities [Abstract] | |||
Balance as of January 31, 2017 | $ 0 | ||
Gross charges | 1,830 | ||
Cash payments | (563) | ||
Restructuring charges | (940) | [1] | $ 0 |
Balance as of October 31, 2017 | $ 327 | ||
[1] | The non-cash adjustments to restructuring charges primarily consist of the reversal of previously recognized stock-based compensation expense related to awards that will not vest and the reversal of incentive compensation that will not be paid as a result of the restructuring plan. |
Segment Information - Revenue b
Segment Information - Revenue by Geographic Area by Customer Location (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenue | $ 31,772 | $ 33,917 | $ 96,993 | $ 84,349 |
United States | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenue | 23,054 | 24,084 | 71,650 | 57,537 |
EMEA | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenue | 4,882 | 4,659 | 14,020 | 12,756 |
Rest of the World | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenue | $ 3,836 | $ 5,174 | $ 11,323 | $ 14,056 |
Segment Information - Additiona
Segment Information - Additional Information (Details) - USD ($) $ in Millions | Oct. 31, 2017 | Jan. 31, 2017 |
United States | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-lived assets | $ 10.1 | $ 10.2 |
Related Party and Other Trans69
Related Party and Other Transactions - Additional Information (Details) $ in Thousands | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2017USD ($)shares | Jul. 31, 2015USD ($)shares | Oct. 31, 2017USD ($) | Oct. 31, 2016USD ($) | Jan. 31, 2014USD ($)Employee | Jan. 31, 2017USD ($) | |
Related Party Transaction [Line Items] | ||||||
Number of executive employees exercised stock options early | Employee | 1 | |||||
Number of non-executive employees exercised stock options early | Employee | 1 | |||||
Repayment of outstanding principal and interest balance | $ 470 | $ 1,459 | ||||
Series F Convertible Preferred Stock | ||||||
Related Party Transaction [Line Items] | ||||||
Preferred stock shares, issued | shares | 11,353 | |||||
Preferred stock shares, aggregate value | $ 500 | |||||
Full-recourse Promissory Note [Member] | Executive and Non-executive Employee [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Debt instrument principal amount | $ 2,200 | |||||
Employee notes receivable | $ 700 | $ 1,500 | ||||
Full-recourse Promissory Note [Member] | Executive Employee [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Repayment of outstanding principal and interest balance | $ 1,000 | |||||
Common stock repurchased | shares | 88,520 | |||||
Full-recourse Promissory Note [Member] | Non-executive Employee [Member] | Portion of Debt Redemption One [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Promissory note and accrued interest payable date | 2018-04 | |||||
Full-recourse Promissory Note [Member] | Non-executive Employee [Member] | Portion of Debt Redemption Two [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Promissory note and accrued interest payable date | 2019-03 | |||||
Full-recourse Promissory Note [Member] | Minimum | Executive and Non-executive Employee [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Debt instrument interest rate percentage | 1.62% | |||||
Full-recourse Promissory Note [Member] | Maximum | Executive and Non-executive Employee [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Debt instrument interest rate percentage | 1.64% | |||||
Promissory Note [Member] | Executive Employee [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Debt instrument principal amount | $ 6,600 | |||||
Debt instrument interest rate percentage | 1.92% | |||||
Repayment of outstanding principal and interest balance | $ 6,900 | |||||
Common stock repurchased | shares | 501,104 |