Cover
Cover - shares | 6 Months Ended | |
Jul. 31, 2019 | Aug. 23, 2019 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 31, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | Zoom Video Communications, Inc. | |
Entity Central Index Key | 0001585521 | |
Current Fiscal Year End Date | --01-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Class A Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 56,887,819 | |
Class B Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 216,664,088 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 213,886 | $ 63,624 |
Marketable securities | 541,380 | 112,777 |
Accounts receivable, net of allowances of $4,401 and $2,071 as of July 31, 2019 and January 31, 2019, respectively | 95,682 | 63,613 |
Accounts receivable, allowances | 4,401 | 2,071 |
Deferred contract acquisition costs, current | 35,502 | 26,453 |
Prepaid expenses and other current assets | 29,609 | 10,252 |
Total current assets | 916,059 | 276,719 |
Deferred contract acquisition costs, non-current | 37,688 | 29,063 |
Property and equipment, net | 51,987 | 37,275 |
Operating lease right-of-use assets | 51,126 | |
Other assets, non-current | 13,063 | 11,508 |
Total assets | 1,069,923 | 354,565 |
Current liabilities: | ||
Accounts payable | 819 | 4,963 |
Accrued expenses and other current liabilities | 64,586 | 32,256 |
Deferred revenue, current | 163,591 | 115,122 |
Total current liabilities | 228,996 | 152,341 |
Deferred revenue, non-current | 17,816 | 10,651 |
Operating lease liabilities, non-current | 48,104 | |
Other liabilities, non-current | 31,211 | 39,460 |
Total liabilities | 326,127 | 202,452 |
Commitments and contingencies (Note 8) | ||
Stockholders’ equity (deficit): | ||
Preferred stock | $ 0 | $ 0 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 200,000,000 | 0 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, $0.001 par value per share, 2,000,000,000 and 320,000,000 Class A shares authorized as of July 31, 2019 and January 31, 2019, respectively; 49,867,103 and zero shares issued and outstanding as of July 31, 2019 and January 31, 2019, respectively; 300,000,000 Class B shares authorized as of July 31, 2019 and January 31, 2019; 223,619,064 and 90,327,435 shares issued and outstanding as of July 31, 2019 and January 31, 2019, respectively | $ 272 | $ 89 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Additional paid-in capital | $ 760,990 | $ 17,760 |
Accumulated other comprehensive loss | (68) | (135) |
Accumulated deficit | (17,398) | (25,153) |
Total stockholders’ equity (deficit) | 743,796 | (7,439) |
Total liabilities, convertible preferred stock, and stockholders’ equity (deficit) | 1,069,923 | 354,565 |
Convertible Preferred Stock | ||
Stockholders’ equity (deficit): | ||
Preferred stock | $ 0 | $ 159,552 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 0 | 158,104,540 |
Preferred stock, shares issued (in shares) | 0 | 152,665,804 |
Preferred stock, shares outstanding (in shares) | 0 | 152,665,804 |
Class A Common Stock | ||
Stockholders’ equity (deficit): | ||
Common stock, shares authorized (in shares) | 2,000,000,000 | 320,000,000 |
Common stock, shares issued (in shares) | 49,867,103 | 0 |
Common stock, shares outstanding (in shares) | 49,867,103 | 0 |
Class B Common Stock | ||
Stockholders’ equity (deficit): | ||
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 223,619,064 | |
Common stock, shares outstanding (in shares) | 223,619,064 | 90,327,435 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Income Statement [Abstract] | ||||
Revenue | $ 145,826 | $ 74,526 | $ 267,814 | $ 134,596 |
Cost of revenue | 27,900 | 12,973 | 52,004 | 24,633 |
Gross profit | 117,926 | 61,553 | 215,810 | 109,963 |
Operating expenses: | ||||
Research and development | 15,054 | 7,049 | 28,837 | 13,313 |
Sales and marketing | 79,652 | 41,054 | 143,693 | 77,315 |
General and administrative | 20,955 | 10,028 | 39,458 | 17,597 |
Total operating expenses | 115,661 | 58,131 | 211,988 | 108,225 |
Income from operations | 2,265 | 3,422 | 3,822 | 1,738 |
Interest income, net | 2,864 | 463 | 3,522 | 899 |
Other income, net | 1,628 | 81 | 1,943 | 86 |
Net income before provision for income taxes | 6,757 | 3,966 | 9,287 | 2,723 |
Provision for income taxes | (1,216) | (141) | (1,532) | (238) |
Net income | 5,541 | 3,825 | 7,755 | 2,485 |
Undistributed earnings attributable to participating securities | (20) | (3,329) | (2,794) | (2,485) |
Net income attributable to common stockholders | $ 5,521 | $ 496 | $ 4,961 | $ 0 |
Earnings Per Share [Abstract] | ||||
Basic (in dollars per share) | $ 0.02 | $ 0.01 | $ 0.03 | $ 0 |
Diluted (in dollars per share) | $ 0.02 | $ 0 | $ 0.02 | $ 0 |
Weighted-average shares used in computing net income per share attributable to common stockholders: | ||||
Basic (in shares) | 271,813,141 | 83,330,741 | 192,130,510 | 81,999,734 |
Diluted (in shares) | 292,185,665 | 108,454,323 | 215,774,619 | 107,584,379 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 5,541 | $ 3,825 | $ 7,755 | $ 2,485 |
Other comprehensive (loss) gain: | ||||
Unrealized (loss) gain on available for sale marketable securities, net of tax | (76) | 139 | 67 | 57 |
Comprehensive income | $ 5,465 | $ 3,964 | $ 7,822 | $ 2,542 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands | Total | Convertible Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning balance (in shares) at Jan. 31, 2018 | 152,665,804 | 82,609,638 | ||||
Beginning balance at Jan. 31, 2018 | $ (26,671) | $ 159,552 | $ 80 | $ 6,517 | $ (531) | $ (32,737) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon exercise of stock options (in shares) | 3,786,375 | |||||
Issuance of common stock upon exercise of stock options | 676 | $ 4 | 672 | |||
Stock-based compensation expense | 1,975 | 1,975 | ||||
Other comprehensive income (loss) | 57 | 57 | ||||
Net income | 2,485 | 2,485 | ||||
Ending balance (in shares) at Jul. 31, 2018 | 152,665,804 | 86,396,013 | ||||
Ending balance at Jul. 31, 2018 | (21,478) | $ 159,552 | $ 84 | 9,164 | (474) | (30,252) |
Beginning balance (in shares) at Apr. 30, 2018 | 152,665,804 | 83,122,778 | ||||
Beginning balance at Apr. 30, 2018 | (27,006) | $ 159,552 | $ 81 | 7,603 | (613) | (34,077) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon exercise of stock options (in shares) | 3,273,235 | |||||
Issuance of common stock upon exercise of stock options | 438 | $ 3 | 435 | |||
Stock-based compensation expense | 1,126 | 1,126 | ||||
Other comprehensive income (loss) | 139 | 139 | ||||
Net income | 3,825 | 3,825 | ||||
Ending balance (in shares) at Jul. 31, 2018 | 152,665,804 | 86,396,013 | ||||
Ending balance at Jul. 31, 2018 | (21,478) | $ 159,552 | $ 84 | 9,164 | (474) | (30,252) |
Beginning balance (in shares) at Jan. 31, 2019 | 152,665,804 | 90,327,435 | ||||
Beginning balance at Jan. 31, 2019 | (7,439) | $ 159,552 | $ 89 | 17,760 | (135) | (25,153) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Conversion of convertible preferred stock to common stock upon initial public offering (in shares) | (152,665,804) | 152,665,804 | ||||
Conversion of convertible preferred stock to common stock upon initial public offering | 159,552 | $ (159,552) | $ 153 | 159,399 | ||
Conversion of convertible promissory notes and accrued interest to common stock upon initial public offering (in shares) | 426,223 | |||||
Conversion of convertible promissory notes and accrued interest to common stock upon initial public offering | 15,344 | 15,344 | ||||
Issuance of common stock upon initial public offering and private placement net of underwriting discounts and commissions and other offering costs (in shares) | 15,819,646 | |||||
Issuance of common stock upon initial public offering and private placement, net of underwriting discounts and commissions and other offering costs | $ 541,499 | $ 16 | 541,483 | |||
Issuance of common stock upon exercise of stock options (in shares) | 14,272,059 | |||||
Issuance of common stock upon exercise of stock options, net of repurchases (in shares) | 13,747,059 | |||||
Issuance of common stock upon exercise of stock options | $ 2,174 | $ 14 | 2,160 | |||
Issuance of common stock reserved for charitable donation (in shares) | 500,000 | |||||
Issuance of common stock reserved for charitable donation | 0 | |||||
Stock-based compensation expense | 24,844 | 24,844 | ||||
Other comprehensive income (loss) | 67 | 67 | ||||
Net income | 7,755 | 7,755 | ||||
Ending balance (in shares) at Jul. 31, 2019 | 0 | 273,486,167 | ||||
Ending balance at Jul. 31, 2019 | 743,796 | $ 0 | $ 272 | 760,990 | (68) | (17,398) |
Beginning balance (in shares) at Apr. 30, 2019 | 0 | 272,336,862 | ||||
Beginning balance at Apr. 30, 2019 | 719,728 | $ 0 | $ 271 | 742,388 | 8 | (22,939) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon exercise of stock options (in shares) | 649,305 | |||||
Issuance of common stock upon exercise of stock options | 421 | $ 1 | 420 | |||
Issuance of common stock reserved for charitable donation (in shares) | 500,000 | |||||
Issuance of common stock reserved for charitable donation | 0 | |||||
Stock-based compensation expense | 18,182 | 18,182 | ||||
Other comprehensive income (loss) | (76) | (76) | ||||
Net income | 5,541 | 5,541 | ||||
Ending balance (in shares) at Jul. 31, 2019 | 0 | 273,486,167 | ||||
Ending balance at Jul. 31, 2019 | $ 743,796 | $ 0 | $ 272 | $ 760,990 | $ (68) | $ (17,398) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 7,755 | $ 2,485 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation expense | 24,737 | 1,975 |
Amortization of deferred contract acquisition costs | 16,026 | 8,647 |
Depreciation and amortization | 7,174 | 2,618 |
Amortization of operating lease right-of-use assets | 3,116 | 0 |
Provision for accounts receivable allowances | 2,693 | 1,056 |
Other | (514) | 38 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (35,361) | (22,600) |
Prepaid expenses and other assets | (23,597) | (4,132) |
Deferred contract acquisition costs | (33,700) | (22,768) |
Accounts payable | (2,783) | (206) |
Accrued expenses and other liabilities | 34,923 | 14,561 |
Deferred revenue | 56,234 | 35,436 |
Operating lease liabilities, net | (3,295) | 0 |
Net cash provided by operating activities | 53,408 | 17,110 |
Cash flows from investing activities: | ||
Purchases of marketable securities | (478,487) | (30,276) |
Maturities of marketable securities | 50,940 | 23,755 |
Purchases of property and equipment | (20,937) | (10,027) |
Net cash used in investing activities | (448,484) | (16,548) |
Cash flows from financing activities: | ||
Proceeds from initial public offering and private placement, net of underwriting discounts and commissions and other offering costs | 542,947 | 0 |
Proceeds from exercise of stock options, net of repurchases | 2,191 | 576 |
Principal payments on capital lease obligations | 0 | (92) |
Net cash provided by financing activities | 545,138 | 484 |
Net increase in cash, cash equivalents, and restricted cash | 150,062 | 1,046 |
Cash, cash equivalents, and restricted cash – beginning of period | 65,968 | 36,821 |
Cash, cash equivalents, and restricted cash – end of period | 216,030 | 37,867 |
Reconciliation of cash, cash equivalents, and restricted cash within the condensed consolidated balance sheets to the amounts shown in the condensed consolidated statements of cash flows above: | ||
Cash and cash equivalents | 213,886 | 36,492 |
Total cash, cash equivalents, and restricted cash | $ 65,968 | $ 36,821 |
Summary of Business and Signifi
Summary of Business and Significant Accounting Policies | 6 Months Ended |
Jul. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Business and Significant Accounting Policies | Summary of Business and Significant Accounting Policies Description of Business Zoom Video Communications, Inc. and its subsidiaries (together, Zoom, the Company, we, us, or our) provide a video-first, unified communications platform. Our platform combines video, audio, phone, screen sharing, and chat functionalities. We were incorporated in the state of Delaware in April 2011 and are headquartered in San Jose, California. Fiscal Year Our fiscal year ends on January 31. References to fiscal 2020, for example, refer to the fiscal year ending January 31, 2020. Initial Public Offering and Private Placement On April 23, 2019, we completed our initial public offering (IPO), in which we issued and sold 9,911,434 shares of our Class A common stock at $36.00 per share, resulting in net proceeds of $340.8 million after deducting underwriting discounts and commissions. On April 18, 2019, the underwriters exercised their option to purchase an additional 3,130,435 shares of our Class A common stock at $36.00 per share. This transaction closed on April 23, 2019, resulting in additional proceeds of $107.1 million, net of underwriters' discounts and commissions. In connection with the IPO: • all of the shares of convertible preferred stock outstanding automatically converted into an aggregate of 152,665,804 shares of Class B common stock; • outstanding convertible promissory notes and accrued interest automatically converted into 426,223 shares of Class A common stock based on the IPO price of $36.00 per share; and • Salesforce Ventures LLC purchased 2,777,777 shares of Class A common stock from us at $36.00 per share in a concurrent private placement. We received aggregate proceeds of $100.0 million and did not pay any underwriting discounts or commissions with respect to the shares of Class A common stock that were sold in this private placement. Deferred offering costs consist primarily of accounting, legal, and other fees related to our IPO. Prior to the IPO, all deferred offering costs were capitalized in other assets, non-current in the condensed consolidated balance sheets. After the IPO, $6.4 million of deferred offering costs were reclassified into stockholders’ equity as a reduction of the IPO proceeds in the condensed consolidated balance sheets. We capitalized $2.4 million of deferred offering costs within other assets, non-current in the condensed consolidated balance sheet as of January 31, 2019. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) and applicable regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting, and include the accounts of Zoom Video Communications, Inc. and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The unaudited condensed consolidated balance sheet as of January 31, 2019 included herein was derived from the audited financial statements as of that date, but does not include all disclosures including certain notes required by GAAP on an annual reporting basis. The unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the balance sheets, statements of operations, statements of comprehensive income, statements of convertible preferred stock and stockholders’ equity (deficit), and statements of cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year or any future period. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our final prospectus dated April 17, 2019 (Prospectus) filed with the SEC pursuant to Rule 424(b) under the Securities Act of 1933, as amended. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include, but are not limited to, the estimated expected benefit period for deferred contract acquisition costs, the accounts receivable allowances, the useful lives of long-lived assets, the incremental borrowing rate for operating leases, the valuation of derivative liabilities, the value of common stock and other assumptions used to measure stock-based compensation expense, sales and other tax liabilities, the valuation of deferred income tax assets and uncertain tax positions. Actual results could differ from those estimates. Summary of Significant Accounting Policies Our significant accounting policies are discussed in Note 1. “Summary of Business and Significant Accounting Policies” in the Notes to Consolidated Financial Statements in our Prospectus. There have been no significant changes to these policies during the six months ended July 31, 2019, except as noted below. Leases All significant lease arrangements are generally recognized at lease commencement. Operating lease right-of-use (ROU) assets and operating lease liabilities are recognized at commencement. For short term leases (an initial term of 12 months or less), a ROU asset and corresponding lease liability are not recorded and we record rent expense in our condensed consolidated statements of operations on a straight-line basis over the lease term and record variable lease payments as incurred. ROU assets represent our right to use an underlying asset during the reasonably certain lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of fixed payments not yet paid over the lease term. We use our incremental borrowing rate based on the information available at the commencement date in determining the lease liabilities as our leases generally do not provide an implicit rate. ROU assets also include any initial direct costs incurred and any lease payments made at or before the lease commencement date, less lease incentives received. We currently do not have any finance leases. Recent Accounting Pronouncements Not Yet Adopted In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13 (Topic 326), Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments , which replaces the existing incurred loss impairment model with an expected credit loss model and requires a financial asset measured at amortized cost to be presented at the net amount expected to be collected. The guidance will be effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating whether the adoption of this standard will have a material impact on our condensed consolidated financial statements. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-2 (Topic 842), Leases (ASU 2016-2), which supersedes FASB ASC Topic 840, Leases (ASC 840), and makes other conforming amendments to GAAP. ASU 2016-2 requires, among other changes to the lease accounting guidance, lessees to recognize most leases on-balance sheet via a right-of-use asset and lease liability, and additional qualitative and quantitative disclosures. ASU 2016-2 is effective for the annual periods in fiscal years beginning after December 15, 2018, and interim periods therein. We adopted the standard as of February 1, 2019 using the modified retrospective method of applying the new standard at the adoption date. Under this approach, we will continue to report comparative periods presented in the period of adoption under ASC 840. We have elected the package of practical expedients permitted under the transition guidance within the new standard, which allows us to (1) carry forward the historical lease classification, (2) not reassess whether any expired or existing contracts contain leases, and (3) not reassess indirect costs for any existing leases. This election allows us to account for lease components (e.g., fixed payments or variable payments that depend on a rate that can be determined at commencement, including rent for the right to use the asset) together with nonlease components (e.g., other fixed payments that deliver a good or service including common-area maintenance costs) in the calculation of the right-of-use asset and corresponding liability. Adoption of this standard resulted in the recording of ROU assets and total liabilities of $40.5 million and $43.0 million, respectively, with no material impact on retained earnings as of February 1, 2019. See Note 7 for further details. In June 2018, the FASB issued ASU No. 2018-7, Improvements to Nonemployee Share-Based Payment Accounting (ASU 2018-7). The standard simplifies the accounting for share-based payments granted to nonemployees for goods and services and aligns most of the guidance on such payments to nonemployees with the requirements for share-based payments granted to employees. ASU 2018-7 is effective for the annual periods in fiscal years beginning after December 15, 2018, and interim periods therein, using a modified retrospective approach. We adopted ASU 2018-7 as of February 1, 2019, and our adoption did not have a material impact on the condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13 (Topic 820), Fair Value Measurement: Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13). The standard no longer requires disclosure of the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, however public companies will be required to disclose the range and weighted-average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU 2018-13 is effective for the annual periods in fiscal years beginning after December 15, 2019, and interim periods therein, with early adoption permitted. We adopted ASU 2018-13 as of February 1, 2019, and our adoption did not have a material impact on the condensed consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jul. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Disaggregation of Revenue The following table summarizes revenue by region based on the billing address of customers: Three Months Ended July 31, Six Months Ended July 31, 2019 2018 2019 2018 Amount Percentage of Amount Percentage of Amount Percentage of Amount Percentage of (in thousands, except percentages) Americas $ 117,098 80 % $ 61,155 82 % $ 215,258 80 % $ 110,715 82 % Asia Pacific (APAC) 12,088 8 6,078 8 22,529 9 10,820 8 Europe, Middle East, and Africa (EMEA) 16,640 12 7,293 10 30,027 11 13,061 10 Total $ 145,826 100 % $ 74,526 100 % $ 267,814 100 % $ 134,596 100 % Contract Balances We receive payments from customers based on a billing schedule as established in our customer contracts. Accounts receivable are recorded when we contractually have the right to consideration. In some arrangements, a right to consideration for our performance under the customer contract may occur before invoicing to the customer, resulting in an unbilled accounts receivable. The amount of unbilled accounts receivable included within accounts receivable, net on the condensed consolidated balance sheets was $8.5 million and $7.2 million as of July 31, 2019 and January 31, 2019, respectively. Contract liabilities consist of deferred revenue. Revenue is deferred when we have the right to invoice in advance of performance under a customer contract. The current portion of deferred revenue balances are recognized over the next 12 months. The amount of revenue recognized during the three months ended July 31, 2019 and 2018 that was included in deferred revenue at the beginning of each period was $64.6 million and $30.6 million, respectively, and $90.7 million and $38.9 million during the six months ended July 31, 2019 and 2018, respectively. Remaining Performance Obligation The terms of our subscription agreements are monthly, annual, and multi-year, and we may bill for the full term in advance or on an annual or monthly basis, depending on the customer preference. As of July 31, 2019, the aggregate amount of the transaction price allocated to remaining performance obligations was $457.6 million, which consists of both billed consideration in the amount of $181.4 million and unbilled consideration in the amount of $276.2 million that we expect to recognize as revenue. We expect to recognize 62% of our remaining performance obligations as revenue over the next 12 months, and the remainder thereafter. |
Cash Equivalents and Marketable
Cash Equivalents and Marketable Securities | 6 Months Ended |
Jul. 31, 2019 | |
Cash Equivalents And Marketable Securities [Abstract] | |
Cash Equivalents and Marketable Securities | Cash Equivalents and Marketable Securities As of July 31, 2019 and January 31, 2019, our cash equivalents and marketable securities consisted of the following: July 31, 2019 Amortized Gross Gross Estimated (in thousands) Money market funds $ 95,577 $ — $ — $ 95,577 Commercial paper 14,239 — — 14,239 Corporate debt securities 4,900 — — 4,900 Treasury bills 19,485 2 — 19,487 Cash equivalents 134,201 2 — 134,203 Commercial paper 54,007 — — 54,007 Agency bonds 18,399 9 (9) 18,399 Corporate and other debt securities 269,376 125 (292) 269,209 U.S. government agency securities 97,709 68 (15) 97,762 Treasury bills 101,959 44 — 102,003 Marketable securities $ 541,450 $ 246 $ (316) $ 541,380 January 31, 2019 Amortized Gross Gross Estimated (in thousands) Money market funds $ 78 $ — $ — $ 78 Cash equivalents 78 — — 78 Commercial paper 1,243 — — 1,243 Corporate bonds 53,267 — (53) 53,214 Agency bonds 32,675 — (71) 32,604 U.S. government agency securities 24,028 — (11) 24,017 Treasury bills 1,699 — — 1,699 Marketable securities $ 112,912 $ — $ (135) $ 112,777 We review the individual securities that have unrealized losses on a regular basis to evaluate whether or not any security has experienced an other-than-temporary decline in fair value. We evaluate, among other factors, whether we have the intention to sell any of these marketable securities and whether it is more likely than not that we will be required to sell any of them before recovery of the amortized cost basis. Based on the available evidence, we concluded that the gross unrealized losses on the marketable securities as of July 31, 2019 and January 31, 2019, are temporary in nature. There were no material realized gains or losses from available-for-sale securities that were reclassified out of accumulated other comprehensive loss for the three and six months ended July 31, 2019 and 2018. The following table presents the contractual maturities of our marketable securities as of July 31, 2019 and January 31, 2019: As of July 31, January 31, (in thousands) Less than one year $ 421,166 $ 85,077 Due in one to five years 120,214 27,700 Total $ 541,380 $ 112,777 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jul. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table presents information about our financial instruments that are measured at fair value on a recurring basis using the input categories further discussed in Note 1. “Summary of Business and Significant Accounting Policies” in the Notes to Consolidated Financial Statements in our Prospectus: July 31, 2019 Fair Value Level 1 Level 2 Level 3 (in thousands) Financial Assets: Money market funds $ 95,577 $ 95,577 $ — $ — Commercial paper 14,239 — 14,239 — Corporate debt securities 4,900 — 4,900 — Treasury bills 19,487 — 19,487 — Cash equivalents 134,203 95,577 38,626 — Commercial paper 54,007 — 54,007 — Agency bonds 18,399 — 18,399 — Corporate and other debt securities 269,209 — 269,209 — U.S. government agency securities 97,762 — 97,762 — Treasury bills 102,003 — 102,003 — Marketable securities 541,380 — 541,380 — Certificate of deposit 100 — 100 — Prepaid expenses and other current assets 100 — 100 — Certificates of deposit 2,044 — 2,044 — Other assets, non-current 2,044 — 2,044 — Total financial assets $ 677,727 $ 95,577 $ 582,150 $ — January 31, 2019 Fair Value Level 1 Level 2 Level 3 (in thousands) Financial Assets: Money market funds $ 78 $ 78 $ — $ — Cash equivalents 78 78 — — Commercial paper 1,243 — 1,243 — Corporate bonds 53,214 — 53,214 — Agency bonds 32,604 — 32,604 — U.S. government agency securities 24,017 — 24,017 — Treasury bills 1,699 — 1,699 — Marketable securities 112,777 — 112,777 — Certificate of deposit 200 — 200 — Prepaid expenses and other current assets 200 — 200 — Certificates of deposit 2,144 — 2,144 — Other assets, non-current 2,144 — 2,144 — Total financial assets $ 115,199 $ 78 $ 115,121 $ — Financial Liabilities: Convertible promissory notes – derivative liabilities $ 163 $ — $ — $ 163 Other liabilities, non-current 163 — — 163 Total financial liabilities $ 163 $ — $ — $ 163 We classify our highly liquid money market funds within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. We classify our commercial paper, agency bonds, corporate bonds, corporate debt securities, U.S. government agency securities, treasury bills, and certificates of deposit within Level 2 because they are valued using inputs other than quoted prices which are directly or indirectly observable in the market, including readily-available pricing sources for the identical underlying security which may not be actively traded. We classify the derivative liabilities as Level 3 due to the lack of relevant observable market data over fair value inputs such as the probability-weighting of the various scenarios that can impact settlement of the arrangement. As discussed in Note 6 below, in connection with the IPO, the fair value of our derivative liabilities associated with our convertible promissory notes were extinguished. The following table sets forth a summary of the changes in the fair value of our Level 3 financial instruments as follows: Derivative (in thousands) Balance - January 31, 2019 $ 163 Extinguishment of derivative liabilities from the convertible promissory notes in connection with the IPO (163) Balance - July 31, 2019 $ — |
Balance Sheet Components
Balance Sheet Components | 6 Months Ended |
Jul. 31, 2019 | |
Balance Sheet Components [Abstract] | |
Balance Sheet Components | Balance Sheet Components Property and Equipment, Net Property and equipment consisted of the following: As of July 31, January 31, (in thousands) Computer and office equipment $ 43,877 $ 32,515 Leasehold improvements 15,290 7,660 Software 7,941 6,575 Furniture and fixtures 3,458 1,993 Property and equipment, gross 70,566 48,743 Less: accumulated depreciation and amortization (18,579) (11,468) Property and equipment, net $ 51,987 $ 37,275 Depreciation and amortization expense was $3.8 million and $1.5 million for the three months ended July 31, 2019 and 2018, respectively, and $7.2 million and $2.6 million for the six months ended July 31, 2019 and 2018, respectively. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: As of July 31, January 31, (in thousands) Accrued compensation and benefits $ 30,339 $ 12,004 Accrued expenses 20,092 13,596 Operating lease liabilities, current 5,277 — Sales and other tax liabilities 2,440 1,183 Liability for early exercise of common stock options 1,797 1,781 Other 4,641 3,692 Accrued expenses and other current liabilities $ 64,586 $ 32,256 Other Liabilities, Non-Current Other liabilities, non-current consisted of the following: As of July 31, January 31, (in thousands) Sales and other tax liabilities $ 29,182 $ 20,817 Convertible promissory notes, net of debt discount — 14,858 Deferred rent liabilities — 2,314 Derivative liabilities — 163 Other 2,029 1,308 Other liabilities, non-current $ 31,211 $ 39,460 |
Commitment and Contingencies
Commitment and Contingencies | 6 Months Ended |
Jul. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure | Commitments and ContingenciesOur platform and associated products are subject to various restrictions under U.S. export control and sanctions laws and regulations, including the U.S. Department of Commerce’s Export Administration Regulations (EAR) and various economic and trade sanctions regulations administered by the U.S. Treasury Department’s Office of Foreign Assets Controls (OFAC). The U.S. export control laws and U.S. economic sanctions laws include restrictions or prohibitions on the sale or supply of certain products and services to U.S. embargoed or sanctioned countries, governments, persons and entities, and also require authorization for the export of certain encryption items. In addition, various countries regulate the import of certain encryption technology, including through import permitting and licensing requirements and have enacted or could enact laws that could limit our ability to distribute our platform or could limit our hosts’ ability to implement our platform in those countries.Although we take precautions to prevent our platform and associated products from being accessed or used in violation of such laws, we have inadvertently allowed our platform and associated products to be accessed or used by some customers in apparent violation of U.S. economic sanction laws. In addition, we may have inadvertently made our software products available to some customers, including users in embargoed or sanctioned countries, in apparent violation of the EAR. As a result, we have submitted initial and final voluntary self-disclosures concerning potential violations of U.S. sanctions and export control laws and regulations to the OFAC and the U.S. Department of Commerce’s Bureau of Industry and Security (BIS). As of July 31, 2019, OFAC and BIS issued us warning letters as their final enforcement responses to these potential violations but no fines or penalties were assessed. If we are found to be in violation of U.S. economic sanctions or export control laws in the future, it could result in fines and penalties. |
Convertible Promissory Notes
Convertible Promissory Notes | 6 Months Ended |
Jul. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt Disclosure | Convertible Promissory Notes In October 2018, we entered into a strategic partnership with Dropbox, Inc. (Dropbox), a global collaboration platform company, which involves the development of technology enabling integrated workflows for users between our platform and the Dropbox platform, as well as a strategic partnership with Atlassian, Inc. (Atlassian), a collaboration software company, which involves the development of technology enabling integrated workflows for users between our platform and Atlassian’s Jira Ops and Jira Service Desk products. As part of the strategic partnerships, we issued unsecured three In connection with the IPO, the convertible notes and accrued interest automatically converted into 426,223 shares of Class A common stock based on the IPO price of $36.00 per share. As a result of the conversion, the related $0.2 million derivative liabilities and the $0.1 million unamortized debt discount of the convertible notes were recognized in other income, net and interest income, net, respectively, on the condensed consolidated statements of operations during the six months ended July 31, 2019. |
Operating Leases
Operating Leases | 6 Months Ended |
Jul. 31, 2019 | |
Leases [Abstract] | |
Operating Leases | Operating Leases We have entered into various operating lease agreements for office space, with remaining contractual periods of up to 10 years. Many of our leases contain one or more options to extend. As leases approach maturity, we consider various factors such as market conditions and the terms of any renewal options that may exist to determine whether we will renew the lease. Operating lease expense for the three and six months ended July 31, 2019 was $2.5 million and $4.9 million, respectively, including short-term lease expense of $0.3 million and $0.5 million, respectively. Supplemental balance sheet information as of July 31, 2019, related to operating leases was as follows: As of July 31, 2019 (in thousands) Reported as: Assets: Operating lease right-of-use assets $ 51,126 Liabilities: Accrued expenses and other current liabilities $ 5,277 Operating lease liabilities, non-current 48,104 Total operating lease liabilities $ 53,381 As of July 31, 2019, the weighted-average remaining lease term is 7.2 years and the weighted-average discount rate is 5.1%. Supplemental cash flow and other information for the six months ended July 31, 2019, related to operating leases was as follows: Six Months Ended (in thousands) Cash paid within operating cash flows $ 4,446 Operating lease right-of-use assets recognized in exchange for new operating lease obligations $ 13,770 As of July 31, 2019, the future minimum lease payments included in the measurement of our operating lease liabilities are as follows: As of July 31, (in thousands) Year Ending January 31, 2020 $ 3,725 2021 8,249 2022 7,916 2023 7,954 2024 7,543 Thereafter 30,551 Total operating lease payments $ 65,938 Less: imputed interest (12,557) Total operating lease liabilities $ 53,381 As of July 31, 2019, we have additional operating leases for office space that have not yet commenced with undiscounted cash flows of $25.5 million. These operating leases will commence between 2019 and 2020. As previously disclosed in "Note 6. Commitments and Contingencies" to Notes to Consolidated Financial Statements in our Prospectus and under the previous lease accounting standard, future minimum payments related to operating leases as of January 31, 2019 are as follows: As of January 31, (in thousands) Year Ending January 31, 2020 $ 7,609 2021 7,837 2022 7,888 2023 7,514 2024 7,174 Thereafter 18,635 Total future minimum payments $ 56,657 Rent expense during the three and six months ended July 31, 2018 was $1.6 million and $3.0 million, respectively. |
Schedule of Supplemental Balance Sheet Information | Supplemental balance sheet information as of July 31, 2019, related to operating leases was as follows: As of July 31, 2019 (in thousands) Reported as: Assets: Operating lease right-of-use assets $ 51,126 Liabilities: Accrued expenses and other current liabilities $ 5,277 Operating lease liabilities, non-current 48,104 Total operating lease liabilities $ 53,381 |
Convertible Preferred Stock, St
Convertible Preferred Stock, Stockholders’ Equity (Deficit) and Equity Incentive Plan | 6 Months Ended |
Jul. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Convertible Preferred Stock, Stockholders’ Equity (Deficit) and Equity Incentive Plan | Convertible Preferred Stock, Stockholders’ Equity (Deficit) and Equity Incentive Plan Convertible Preferred Stock Upon completion of the IPO, all shares of convertible preferred stock outstanding, totaling 152,665,804 shares, were automatically converted into an equivalent number of shares of Class B common stock on a one-to-one basis and their carrying value of $159.6 million was reclassified into stockholders’ equity. As of July 31, 2019, there were no shares of convertible preferred stock issued and outstanding. In connection with the IPO, our Amended and Restated Certificate of Incorporation (COI) became effective, which authorized the issuance of 200,000,000 shares of undesignated preferred stock with a par value of $0.001 with rights and preferences, including voting rights, designated from time to time by our board of directors. Common Stock Our Amended and Restated COI also authorized the issuance of 2,000,000,000 shares of Class A common stock, $0.001 par value per share and 300,000,000 shares of Class B common stock, $0.001 par value per share. Class A and Class B common stock are referred to as common stock throughout the notes to the condensed consolidated financial statements, unless otherwise noted. Equity Incentive Plans In 2011, we adopted the 2011 Global Share Plan (2011 Plan), under which officers, employees, and consultants may be granted various forms of equity incentive compensation at the discretion of the board of directors, including stock options and restricted stock awards. The awards have varying terms, but generally vest over four In April 2019, we adopted the 2019 Plan, which is a successor to and continuation of our 2011 Plan. Our 2019 Plan provides for the grant of stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance awards, and other forms of awards. The maximum number of shares of our Class A common stock that may be issued under our 2019 Plan will not exceed 58,300,889 shares of our Class A common stock, which is the sum of (1) 34,000,000 new shares, plus (2) an additional number of shares not to exceed 24,300,889, consisting of (A) shares that remain available for the issuance of awards under our 2011 Plan as of immediately prior to the time our 2019 Plan becomes effective and (B) shares of Class B common stock subject to outstanding stock options or other stock awards granted under our 2011 Plan that, on or after the 2019 Plan becomes effective, terminate or expire prior to exercise or settlement; are not issued because the award is settled in cash; are forfeited because of the failure to vest; or are reacquired or withheld (or not issued) to satisfy a tax withholding obligation or the purchase or exercise price, if any, as such shares become available from time to time. In addition, the number of shares of our Class A common stock reserved for issuance under our 2019 Plan will automatically increase on February 1 of each calendar year, starting on February 1, 2020 through February 1, 2029, in an amount equal to (i) 5% of the total number of shares of our common stock (both Class A and Class B) outstanding on January 31 of the fiscal year before the date of each automatic increase, or (ii) a lesser number of shares determined by our board of directors prior to the applicable February 1. Stock Options A summary of stock option activity under our equity incentive plan and related information is as follows: Options Outstanding Outstanding Weighted- Weighted- Aggregate (in thousands, except share, life, and per share data) Outstanding as of January 31, 2019 35,064,465 $ 1.48 6.8 $ 534,572 Granted 1,537,900 36.77 Exercised (14,272,059) 0.16 Canceled/forfeited/expired (284,118) 6.11 Outstanding as of July 31, 2019 22,046,188 $ 4.73 8.0 $ 2,001,410 Vested as of July 31, 2019 8,692,345 $ 1.02 7.1 $ 821,380 As of July 31, 2019, unrecognized stock-based compensation expense related to outstanding unvested stock options was $94.3 million, which is expected to be recognized over a weighted-average period of 3.3 years. Restricted Stock Units A summary of restricted stock units (RSUs) activity under our equity incentive plan and related information is as follows: RSUs Outstanding Outstanding Weighted- Outstanding as of January 31, 2019 — $ — Granted 376,786 93.89 Canceled/forfeited (5,926) 94.52 Outstanding as of July 31, 2019 370,860 $ 93.88 As of July 31, 2019, unrecognized stock-based compensation expense related to outstanding unvested RSUs was $33.9 million, which is expected to be recognized over a weighted-average period of 3.9 years. 2019 Employee Stock Purchase Plan In April 2019, we adopted the 2019 Employee Stock Purchase Plan (ESPP), which became effective in connection with the IPO. A total of 9,000,000 shares of our Class A common stock were initially reserved for issuance under the ESPP. The number of shares of our Class A common stock reserved for issuance will automatically increase on February 1 of each calendar year, beginning on February 1, 2020 through February 1, 2029, by the lesser of (1) 1% of the total number of shares of our common stock (both Class A and Class B) outstanding on the last day of the fiscal year before the date of the automatic increase, and (2) 7,500,000 shares; provided that before the date of any such increase, our board of directors may determine that such increase will be less than the amount set forth in clauses (1) and (2). Generally, all regular employees, including executive officers, employed by us or by any of our designated affiliates, except for those holding 5% or more of the total combined voting power or value of all classes of our stock, may participate in the ESPP and may contribute, normally through payroll deductions, up to 20% of their earnings (as defined in the ESPP) for the purchase of our Class A common stock under the ESPP. Unless otherwise determined by our board of directors, Class A common stock will be purchased for the accounts of employees participating in the ESPP at a price per share that is at least the lesser of (1) 85% of the fair market value of a share of our Class A common stock on the first date of an offering, or (2) 85% of the fair market value of a share of our Class A common stock on the date of purchase. No employee may purchase shares under the ESPP at a rate in excess of $25,000 worth of our Class A common stock based on the fair market value per share of our Class A common stock at the beginning of an offering for each calendar year such purchase right is outstanding or 3,000 shares. The 2019 ESPP provides for, at maximum, 27 months offering periods with four offering dates, generally in June and December of each year. The first offering period began on April 18, 2019. As of July 31, 2019, no shares of our Class A common stock have been purchased under the ESPP. As of July 31, 2019, unrecognized stock-based compensation expense related to the ESPP was $78.5 million, which is expected to be recognized over a weighted-average period of 1.9 years. No stock-based compensation expense related to the ESPP was recognized during the three months ended April 30, 2019 as the grant dates of the ESPP offerings were in May and June 2019. We estimated the fair value of ESPP purchase rights using a Black-Scholes option-pricing model with the following assumptions: Three Months Ended Expected purchase price $30.60 - $83.39 Expected volatility 46.1% - 56.2% Expected term (years) 0.5 - 2.1 Risk-free interest rate 1.9% - 2.5% Expected dividend yield — Early Exercise of Common Stock Options Our board of directors authorized certain stock option holders to exercise unvested options to purchase shares of common stock. Shares received from such early exercises are subject to repurchase in the event of the optionee’s termination of service, at the original issuance price, until the options are fully vested. As of July 31, 2019 and January 31, 2019, 663,826 and 1,261,230 shares of Class B common stock, respectively, were subject to repurchase at a weighted-average price of $2.71 and $1.41 per share, respectively. The cash proceeds received for unvested shares of common stock recorded within accrued expenses and other current liabilities in the condensed consolidated balance sheets was $1.8 million as of July 31, 2019 and January 31, 2019. Restricted Stock Award In October 2015, we issued 1,202,720 shares of common stock to a member of our board of directors under a restricted stock agreement at a grant date fair value of $0.14 per share, totaling $0.2 million. Of the total shares issued, 481,088 shares vested on the grant date and the remaining shares vest over four Shares Reserved for Charitable Donations During the three months ended July 31, 2019, our board of directors approved the issuance of 500,000 shares of Class A common stock for the sole purpose of being transferred to a nonprofit organization to be formed or identified by us at a future time. As of July 31, 2019, no shares have been transferred to a nonprofit organization. As a result, no expense has been recognized to date. Stock-Based Compensation The stock-based compensation expense by line item in the accompanying condensed consolidated statements of operations is summarized as follows: Three Months Ended July 31, Six Months Ended July 31, 2019 2018 2019 2018 (in thousands) Cost of revenue $ 1,902 $ 130 $ 2,732 $ 225 Research and development 2,510 193 3,674 322 Sales and marketing 10,439 492 13,066 888 General and administrative 3,224 311 5,265 540 Total stock-based compensation expense $ 18,075 $ 1,126 $ 24,737 $ 1,975 |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesIncome tax expense was $1.2 million and $0.1 million for the three months ended July 31, 2019 and 2018, respectively, and $1.5 million and $0.2 million for the six months ended July 31, 2019 and 2018, respectively. Income tax expense for the three and six months ended July 31, 2019 are related to foreign income taxes and state taxes. Based on the available objective evidence during the three and six months ended July 31, 2019, we believe it is more likely than not that the tax benefits of the U.S. losses incurred may not be realized. Accordingly, we recorded a full valuation allowance against the tax benefits of the U.S. losses incurred. |
Net Income Per Share Attributab
Net Income Per Share Attributable to Common Stockholders | 6 Months Ended |
Jul. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income Per Share Attributable to Common Stockholders | Net Income Per Share Attributable to Common Stockholders The following table sets forth the computation of basic and diluted net income per share attributable to common stockholders for the periods presented: Three Months Ended July 31, Six Months Ended July 31, 2019 2018 2019 2018 Class A Class B Class A Class B Class A Class B Class A Class B Numerator: (in thousands, except share and per share data) Net income $ — $ 5,541 $ — $ 3,825 $ — $ 7,755 $ — $ 2,485 Less: undistributed earnings attributable to participating securities — (20) — (3,329) — (2,794) — (2,485) Reallocation of net income attributable to common stockholders 751 (751) — — 592 (592) — — Net income attributable to common stockholders, basic $ 751 $ 4,770 $ — $ 496 $ 592 $ 4,369 $ — $ — Reallocation of net income attributable to common stockholders (50) 50 — — (64) 64 — — Net income attributable to common stockholders, diluted $ 701 $ 4,820 $ — $ 496 $ 528 $ 4,433 $ — $ — Denominator: Weighted-average shares used in computing net income per share attributable to common stockholders, basic 36,950,454 234,862,687 — 83,330,741 22,908,474 169,222,036 — 81,999,734 Weighted-average shares used in computing net income per share attributable to common stockholders, diluted 37,120,969 255,064,696 — 108,454,323 22,977,562 192,797,057 — 107,584,379 Net income per share attributable to common stockholders, basic $ 0.02 $ 0.02 $ 0.00 $ 0.01 $ 0.03 $ 0.03 $ 0.00 $ 0.00 Net income per share attributable to common stockholders, diluted $ 0.02 $ 0.02 $ 0.00 $ 0.00 $ 0.02 $ 0.02 $ 0.00 $ 0.00 The potential shares of common stock that were excluded from the computation of diluted net income per share attributable to common stockholders for the periods presented because including them would have been antidilutive are as follows: Three Months Ended July 31, Six Months Ended July 31, 2019 2018 2019 2018 Class A Class B Class A Class B Class A Class B Class A Class B Convertible preferred stock — — — 152,665,804 — — — 152,665,804 Outstanding stock options 116,649 — — 3,026,985 59,291 — — 2,250,724 Unvested RSUs 153,751 — — — 78,150 — — — Purchase rights committed under the ESPP 23,509 — — — 11,949 — — — Total 293,909 — — 155,692,789 149,390 — — 154,916,528 The table above does not include 500,000 shares of Class A common stock reserved for the sole purpose of being transferred to a nonprofit organization to be formed or identified by us at a future time. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jul. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party TransactionsIn September 2016, we entered into a service agreement with Veeva Systems Inc. (Veeva), a cloud-based business solutions company. The chief executive officer of Veeva serves as a director on our board of directors. Revenue recognized from services provided to Veeva was $0.3 million and $0.3 million for the three months ended July 31, 2019 and 2018, respectively, and $0.7 million and $0.6 million for the six months ended July 31, 2019 and 2018, respectively. |
Summary of Business and Signi_2
Summary of Business and Significant Accounting Policies (Policies) | 6 Months Ended |
Jul. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) and applicable regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting, and include the accounts of Zoom Video Communications, Inc. and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include, but are not limited to, the estimated expected benefit period for deferred contract acquisition costs, the accounts receivable allowances, the useful lives of long-lived assets, the incremental borrowing rate for operating leases, the valuation of derivative liabilities, the value of common stock and other assumptions used to measure stock-based compensation expense, sales and other tax liabilities, the valuation of deferred income tax assets and uncertain tax positions. Actual results could differ from those estimates. |
Leases | Leases All significant lease arrangements are generally recognized at lease commencement. Operating lease right-of-use (ROU) assets and operating lease liabilities are recognized at commencement. For short term leases (an initial term of 12 months or less), a ROU asset and corresponding lease liability are not recorded and we record rent expense in our condensed consolidated statements of operations on a straight-line basis over the lease term and record variable lease payments as incurred. ROU assets represent our right to use an underlying asset during the reasonably certain lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of fixed payments not yet paid over the lease term. We use our incremental borrowing rate based on the information available at the commencement date in determining the lease liabilities as our leases generally do not provide an implicit rate. ROU assets also include any initial direct costs incurred and any lease payments made at or before the lease commencement date, less lease incentives received. We currently do not have any finance leases. |
Recent Accounting Pronouncements Not Yet Adopted and Recently Adopted Accounting Pronouncements | Recent Accounting Pronouncements Not Yet Adopted In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13 (Topic 326), Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments , which replaces the existing incurred loss impairment model with an expected credit loss model and requires a financial asset measured at amortized cost to be presented at the net amount expected to be collected. The guidance will be effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating whether the adoption of this standard will have a material impact on our condensed consolidated financial statements. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-2 (Topic 842), Leases (ASU 2016-2), which supersedes FASB ASC Topic 840, Leases (ASC 840), and makes other conforming amendments to GAAP. ASU 2016-2 requires, among other changes to the lease accounting guidance, lessees to recognize most leases on-balance sheet via a right-of-use asset and lease liability, and additional qualitative and quantitative disclosures. ASU 2016-2 is effective for the annual periods in fiscal years beginning after December 15, 2018, and interim periods therein. We adopted the standard as of February 1, 2019 using the modified retrospective method of applying the new standard at the adoption date. Under this approach, we will continue to report comparative periods presented in the period of adoption under ASC 840. We have elected the package of practical expedients permitted under the transition guidance within the new standard, which allows us to (1) carry forward the historical lease classification, (2) not reassess whether any expired or existing contracts contain leases, and (3) not reassess indirect costs for any existing leases. This election allows us to account for lease components (e.g., fixed payments or variable payments that depend on a rate that can be determined at commencement, including rent for the right to use the asset) together with nonlease components (e.g., other fixed payments that deliver a good or service including common-area maintenance costs) in the calculation of the right-of-use asset and corresponding liability. Adoption of this standard resulted in the recording of ROU assets and total liabilities of $40.5 million and $43.0 million, respectively, with no material impact on retained earnings as of February 1, 2019. See Note 7 for further details. In June 2018, the FASB issued ASU No. 2018-7, Improvements to Nonemployee Share-Based Payment Accounting (ASU 2018-7). The standard simplifies the accounting for share-based payments granted to nonemployees for goods and services and aligns most of the guidance on such payments to nonemployees with the requirements for share-based payments granted to employees. ASU 2018-7 is effective for the annual periods in fiscal years beginning after December 15, 2018, and interim periods therein, using a modified retrospective approach. We adopted ASU 2018-7 as of February 1, 2019, and our adoption did not have a material impact on the condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13 (Topic 820), Fair Value Measurement: Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13). The standard no longer requires disclosure of the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, however public companies will be required to disclose the range and weighted-average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU 2018-13 is effective for the annual periods in fiscal years beginning after December 15, 2019, and interim periods therein, with early adoption permitted. We adopted ASU 2018-13 as of February 1, 2019, and our adoption did not have a material impact on the condensed consolidated financial statements. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Summary Disaggregation of Revenue by Region | The following table summarizes revenue by region based on the billing address of customers: Three Months Ended July 31, Six Months Ended July 31, 2019 2018 2019 2018 Amount Percentage of Amount Percentage of Amount Percentage of Amount Percentage of (in thousands, except percentages) Americas $ 117,098 80 % $ 61,155 82 % $ 215,258 80 % $ 110,715 82 % Asia Pacific (APAC) 12,088 8 6,078 8 22,529 9 10,820 8 Europe, Middle East, and Africa (EMEA) 16,640 12 7,293 10 30,027 11 13,061 10 Total $ 145,826 100 % $ 74,526 100 % $ 267,814 100 % $ 134,596 100 % |
Cash Equivalents and Marketab_2
Cash Equivalents and Marketable Securities (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Cash Equivalents And Marketable Securities [Abstract] | |
Summary of Marketable Securities | As of July 31, 2019 and January 31, 2019, our cash equivalents and marketable securities consisted of the following: July 31, 2019 Amortized Gross Gross Estimated (in thousands) Money market funds $ 95,577 $ — $ — $ 95,577 Commercial paper 14,239 — — 14,239 Corporate debt securities 4,900 — — 4,900 Treasury bills 19,485 2 — 19,487 Cash equivalents 134,201 2 — 134,203 Commercial paper 54,007 — — 54,007 Agency bonds 18,399 9 (9) 18,399 Corporate and other debt securities 269,376 125 (292) 269,209 U.S. government agency securities 97,709 68 (15) 97,762 Treasury bills 101,959 44 — 102,003 Marketable securities $ 541,450 $ 246 $ (316) $ 541,380 January 31, 2019 Amortized Gross Gross Estimated (in thousands) Money market funds $ 78 $ — $ — $ 78 Cash equivalents 78 — — 78 Commercial paper 1,243 — — 1,243 Corporate bonds 53,267 — (53) 53,214 Agency bonds 32,675 — (71) 32,604 U.S. government agency securities 24,028 — (11) 24,017 Treasury bills 1,699 — — 1,699 Marketable securities $ 112,912 $ — $ (135) $ 112,777 |
Summary of Contractual Maturities of Marketable Securities | The following table presents the contractual maturities of our marketable securities as of July 31, 2019 and January 31, 2019: As of July 31, January 31, (in thousands) Less than one year $ 421,166 $ 85,077 Due in one to five years 120,214 27,700 Total $ 541,380 $ 112,777 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments Measured at Fair Value on Recurring Basis | The following table presents information about our financial instruments that are measured at fair value on a recurring basis using the input categories further discussed in Note 1. “Summary of Business and Significant Accounting Policies” in the Notes to Consolidated Financial Statements in our Prospectus: July 31, 2019 Fair Value Level 1 Level 2 Level 3 (in thousands) Financial Assets: Money market funds $ 95,577 $ 95,577 $ — $ — Commercial paper 14,239 — 14,239 — Corporate debt securities 4,900 — 4,900 — Treasury bills 19,487 — 19,487 — Cash equivalents 134,203 95,577 38,626 — Commercial paper 54,007 — 54,007 — Agency bonds 18,399 — 18,399 — Corporate and other debt securities 269,209 — 269,209 — U.S. government agency securities 97,762 — 97,762 — Treasury bills 102,003 — 102,003 — Marketable securities 541,380 — 541,380 — Certificate of deposit 100 — 100 — Prepaid expenses and other current assets 100 — 100 — Certificates of deposit 2,044 — 2,044 — Other assets, non-current 2,044 — 2,044 — Total financial assets $ 677,727 $ 95,577 $ 582,150 $ — January 31, 2019 Fair Value Level 1 Level 2 Level 3 (in thousands) Financial Assets: Money market funds $ 78 $ 78 $ — $ — Cash equivalents 78 78 — — Commercial paper 1,243 — 1,243 — Corporate bonds 53,214 — 53,214 — Agency bonds 32,604 — 32,604 — U.S. government agency securities 24,017 — 24,017 — Treasury bills 1,699 — 1,699 — Marketable securities 112,777 — 112,777 — Certificate of deposit 200 — 200 — Prepaid expenses and other current assets 200 — 200 — Certificates of deposit 2,144 — 2,144 — Other assets, non-current 2,144 — 2,144 — Total financial assets $ 115,199 $ 78 $ 115,121 $ — Financial Liabilities: Convertible promissory notes – derivative liabilities $ 163 $ — $ — $ 163 Other liabilities, non-current 163 — — 163 Total financial liabilities $ 163 $ — $ — $ 163 |
Summary of Changes in Fair Value of Financial Instruments | The following table sets forth a summary of the changes in the fair value of our Level 3 financial instruments as follows: Derivative (in thousands) Balance - January 31, 2019 $ 163 Extinguishment of derivative liabilities from the convertible promissory notes in connection with the IPO (163) Balance - July 31, 2019 $ — |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Balance Sheet Components [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following: As of July 31, January 31, (in thousands) Computer and office equipment $ 43,877 $ 32,515 Leasehold improvements 15,290 7,660 Software 7,941 6,575 Furniture and fixtures 3,458 1,993 Property and equipment, gross 70,566 48,743 Less: accumulated depreciation and amortization (18,579) (11,468) Property and equipment, net $ 51,987 $ 37,275 |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: As of July 31, January 31, (in thousands) Accrued compensation and benefits $ 30,339 $ 12,004 Accrued expenses 20,092 13,596 Operating lease liabilities, current 5,277 — Sales and other tax liabilities 2,440 1,183 Liability for early exercise of common stock options 1,797 1,781 Other 4,641 3,692 Accrued expenses and other current liabilities $ 64,586 $ 32,256 |
Schedule of Other Liabilities Non Current | Other liabilities, non-current consisted of the following: As of July 31, January 31, (in thousands) Sales and other tax liabilities $ 29,182 $ 20,817 Convertible promissory notes, net of debt discount — 14,858 Deferred rent liabilities — 2,314 Derivative liabilities — 163 Other 2,029 1,308 Other liabilities, non-current $ 31,211 $ 39,460 |
Operating Leases (Tables)
Operating Leases (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information | Supplemental balance sheet information as of July 31, 2019, related to operating leases was as follows: As of July 31, 2019 (in thousands) Reported as: Assets: Operating lease right-of-use assets $ 51,126 Liabilities: Accrued expenses and other current liabilities $ 5,277 Operating lease liabilities, non-current 48,104 Total operating lease liabilities $ 53,381 |
Supplemental Cash Flow and Other Information | Supplemental cash flow and other information for the six months ended July 31, 2019, related to operating leases was as follows: Six Months Ended (in thousands) Cash paid within operating cash flows $ 4,446 Operating lease right-of-use assets recognized in exchange for new operating lease obligations $ 13,770 |
Schedule of Future Minimum Lease Payments included in Measurement of Operating Lease Liabilities | As of July 31, 2019, the future minimum lease payments included in the measurement of our operating lease liabilities are as follows: As of July 31, (in thousands) Year Ending January 31, 2020 $ 3,725 2021 8,249 2022 7,916 2023 7,954 2024 7,543 Thereafter 30,551 Total operating lease payments $ 65,938 Less: imputed interest (12,557) Total operating lease liabilities $ 53,381 |
Schedule of Future Minimum Payments Related to Operating Leases | As previously disclosed in "Note 6. Commitments and Contingencies" to Notes to Consolidated Financial Statements in our Prospectus and under the previous lease accounting standard, future minimum payments related to operating leases as of January 31, 2019 are as follows: As of January 31, (in thousands) Year Ending January 31, 2020 $ 7,609 2021 7,837 2022 7,888 2023 7,514 2024 7,174 Thereafter 18,635 Total future minimum payments $ 56,657 |
Convertible Preferred Stock, _2
Convertible Preferred Stock, Stockholders’ Equity (Deficit) and Equity Incentive Plan (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Summary of Stock Option Activity Under Equity Incentive Plan | A summary of stock option activity under our equity incentive plan and related information is as follows: Options Outstanding Outstanding Weighted- Weighted- Aggregate (in thousands, except share, life, and per share data) Outstanding as of January 31, 2019 35,064,465 $ 1.48 6.8 $ 534,572 Granted 1,537,900 36.77 Exercised (14,272,059) 0.16 Canceled/forfeited/expired (284,118) 6.11 Outstanding as of July 31, 2019 22,046,188 $ 4.73 8.0 $ 2,001,410 Vested as of July 31, 2019 8,692,345 $ 1.02 7.1 $ 821,380 |
Summary of Restricted Stock Units (RSUs) Activity Under Equity Incentive Plan | A summary of restricted stock units (RSUs) activity under our equity incentive plan and related information is as follows: RSUs Outstanding Outstanding Weighted- Outstanding as of January 31, 2019 — $ — Granted 376,786 93.89 Canceled/forfeited (5,926) 94.52 Outstanding as of July 31, 2019 370,860 $ 93.88 |
Summary of Assumptions for Estimating Fair Value of ESPP Purchase Rights | We estimated the fair value of ESPP purchase rights using a Black-Scholes option-pricing model with the following assumptions: Three Months Ended Expected purchase price $30.60 - $83.39 Expected volatility 46.1% - 56.2% Expected term (years) 0.5 - 2.1 Risk-free interest rate 1.9% - 2.5% Expected dividend yield — |
Summary of Stock-based Compensation Expense by Line Item | The stock-based compensation expense by line item in the accompanying condensed consolidated statements of operations is summarized as follows: Three Months Ended July 31, Six Months Ended July 31, 2019 2018 2019 2018 (in thousands) Cost of revenue $ 1,902 $ 130 $ 2,732 $ 225 Research and development 2,510 193 3,674 322 Sales and marketing 10,439 492 13,066 888 General and administrative 3,224 311 5,265 540 Total stock-based compensation expense $ 18,075 $ 1,126 $ 24,737 $ 1,975 |
Net Income Per Share Attribut_2
Net Income Per Share Attributable to Common Stockholders (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Income Per Share | The following table sets forth the computation of basic and diluted net income per share attributable to common stockholders for the periods presented: Three Months Ended July 31, Six Months Ended July 31, 2019 2018 2019 2018 Class A Class B Class A Class B Class A Class B Class A Class B Numerator: (in thousands, except share and per share data) Net income $ — $ 5,541 $ — $ 3,825 $ — $ 7,755 $ — $ 2,485 Less: undistributed earnings attributable to participating securities — (20) — (3,329) — (2,794) — (2,485) Reallocation of net income attributable to common stockholders 751 (751) — — 592 (592) — — Net income attributable to common stockholders, basic $ 751 $ 4,770 $ — $ 496 $ 592 $ 4,369 $ — $ — Reallocation of net income attributable to common stockholders (50) 50 — — (64) 64 — — Net income attributable to common stockholders, diluted $ 701 $ 4,820 $ — $ 496 $ 528 $ 4,433 $ — $ — Denominator: Weighted-average shares used in computing net income per share attributable to common stockholders, basic 36,950,454 234,862,687 — 83,330,741 22,908,474 169,222,036 — 81,999,734 Weighted-average shares used in computing net income per share attributable to common stockholders, diluted 37,120,969 255,064,696 — 108,454,323 22,977,562 192,797,057 — 107,584,379 Net income per share attributable to common stockholders, basic $ 0.02 $ 0.02 $ 0.00 $ 0.01 $ 0.03 $ 0.03 $ 0.00 $ 0.00 Net income per share attributable to common stockholders, diluted $ 0.02 $ 0.02 $ 0.00 $ 0.00 $ 0.02 $ 0.02 $ 0.00 $ 0.00 |
Summary of Potential Shares of Common Stock Excluded from Computation of Diluted Net Income Per Share Attributable to Common Stockholders | The potential shares of common stock that were excluded from the computation of diluted net income per share attributable to common stockholders for the periods presented because including them would have been antidilutive are as follows: Three Months Ended July 31, Six Months Ended July 31, 2019 2018 2019 2018 Class A Class B Class A Class B Class A Class B Class A Class B Convertible preferred stock — — — 152,665,804 — — — 152,665,804 Outstanding stock options 116,649 — — 3,026,985 59,291 — — 2,250,724 Unvested RSUs 153,751 — — — 78,150 — — — Purchase rights committed under the ESPP 23,509 — — — 11,949 — — — Total 293,909 — — 155,692,789 149,390 — — 154,916,528 |
Summary of Business and Signi_3
Summary of Business and Significant Accounting Policies - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 23, 2019 | Apr. 18, 2019 | Jul. 31, 2019 | Feb. 01, 2019 | Jan. 31, 2019 |
Summary Of Business And Significant Accounting Policies [Line Items] | |||||
Operating lease, total ROU assets | $ 51,126 | ||||
Operating lease, total liabilities | 53,381 | ||||
Accounting Standards Update 2016-02 | |||||
Summary Of Business And Significant Accounting Policies [Line Items] | |||||
Operating lease, total ROU assets | $ 40,500 | ||||
Operating lease, total liabilities | $ 43,000 | ||||
Other Assets, Non-current | |||||
Summary Of Business And Significant Accounting Policies [Line Items] | |||||
Capitalized deferred offering costs within other assets, non-current | $ 2,400 | ||||
Initial public offering | |||||
Summary Of Business And Significant Accounting Policies [Line Items] | |||||
Deferred offering costs, reclassified to stockholders' equity | $ (6,400) | ||||
Initial public offering | Class A Common Stock | |||||
Summary Of Business And Significant Accounting Policies [Line Items] | |||||
Shares issued (in shares) | 9,911,434 | ||||
Shares issued, price per share (in dollars per share) | $ 36 | ||||
Net proceeds from shares issued | $ 340,800 | ||||
Initial public offering | Class A Common Stock | Convertible Promissory Notes | |||||
Summary Of Business And Significant Accounting Policies [Line Items] | |||||
Convertible securities converted to common stock (in shares) | 426,223 | ||||
Initial public offering | Class A Common Stock | Underwriters | |||||
Summary Of Business And Significant Accounting Policies [Line Items] | |||||
Shares issued (in shares) | 3,130,435 | ||||
Shares issued, price per share (in dollars per share) | $ 36 | ||||
Net proceeds from shares issued | $ 107,100 | ||||
Initial public offering | Class B Common Stock | |||||
Summary Of Business And Significant Accounting Policies [Line Items] | |||||
Convertible securities converted to common stock (in shares) | 152,665,804 | ||||
Private Placement | Class A Common Stock | |||||
Summary Of Business And Significant Accounting Policies [Line Items] | |||||
Shares issued (in shares) | 2,777,777 | ||||
Aggregate proceeds from shares issued | $ 100,000 | ||||
Private Placement | Class A Common Stock | Convertible Promissory Notes | |||||
Summary Of Business And Significant Accounting Policies [Line Items] | |||||
Shares issued, price per share (in dollars per share) | $ 36 |
Revenue Recognition - Summary D
Revenue Recognition - Summary Disaggregation of Revenue by Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 145,826 | $ 74,526 | $ 267,814 | $ 134,596 |
Percentage of revenue | 100.00% | 100.00% | 100.00% | 100.00% |
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 117,098 | $ 61,155 | $ 215,258 | $ 110,715 |
Percentage of revenue | 80.00% | 82.00% | 80.00% | 82.00% |
Asia Pacific (APAC) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 12,088 | $ 6,078 | $ 22,529 | $ 10,820 |
Percentage of revenue | 8.00% | 8.00% | 9.00% | 8.00% |
Europe, Middle East, and Africa (EMEA) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 16,640 | $ 7,293 | $ 30,027 | $ 13,061 |
Percentage of revenue | 12.00% | 10.00% | 11.00% | 10.00% |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | Jan. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |||||
Unbilled contracts receivable | $ 8.5 | $ 8.5 | $ 7.2 | ||
Revenue recognized included in deferred revenue | $ 64.6 | $ 30.6 | $ 90.7 | $ 38.9 |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligation (Details) $ in Millions | Jul. 31, 2019USD ($) |
Disaggregation of Revenue [Line Items] | |
Remaining performance obligation | $ 457.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-08-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation percentage | 62.00% |
Revenue remaining performance obligation, expected timing of satisfaction period | 12 months |
Billed consideration | |
Disaggregation of Revenue [Line Items] | |
Remaining performance obligation | $ 181.4 |
Unbilled consideration | |
Disaggregation of Revenue [Line Items] | |
Remaining performance obligation | $ 276.2 |
Cash Equivalents and Marketab_3
Cash Equivalents and Marketable Securities - Summary of Marketable Securities (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Marketable Securities [Line Items] | ||
Cash equivalents, Amortized Cost | $ 134,201 | $ 78 |
Cash equivalents, Gross Unrealized Gains | 2 | |
Cash equivalents, Estimated Fair Value | 134,203 | 78 |
Amortized Cost | 541,450 | 112,912 |
Gross Unrealized Gains | 246 | 0 |
Gross Unrealized Losses | (316) | (135) |
Estimated Fair Value | 541,380 | 112,777 |
Money market funds | ||
Marketable Securities [Line Items] | ||
Cash equivalents, Amortized Cost | 95,577 | 78 |
Cash equivalents, Estimated Fair Value | 95,577 | 78 |
Commercial paper | ||
Marketable Securities [Line Items] | ||
Cash equivalents, Amortized Cost | 14,239 | |
Cash equivalents, Estimated Fair Value | 14,239 | |
Amortized Cost | 54,007 | 1,243 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 54,007 | 1,243 |
Corporate debt securities | ||
Marketable Securities [Line Items] | ||
Cash equivalents, Amortized Cost | 4,900 | |
Cash equivalents, Estimated Fair Value | 4,900 | |
Agency bonds | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 18,399 | 32,675 |
Gross Unrealized Gains | 9 | 0 |
Gross Unrealized Losses | (9) | (71) |
Estimated Fair Value | 18,399 | 32,604 |
Corporate and other debt securities | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 269,376 | |
Gross Unrealized Gains | 125 | |
Gross Unrealized Losses | (292) | |
Estimated Fair Value | 269,209 | |
U.S. government agency securities | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 97,709 | 24,028 |
Gross Unrealized Gains | 68 | 0 |
Gross Unrealized Losses | (15) | (11) |
Estimated Fair Value | 97,762 | 24,017 |
Corporate bonds | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 53,267 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (53) | |
Estimated Fair Value | 53,214 | |
Treasury bills | ||
Marketable Securities [Line Items] | ||
Cash equivalents, Amortized Cost | 19,485 | |
Cash equivalents, Gross Unrealized Gains | 2 | |
Cash equivalents, Estimated Fair Value | 19,487 | |
Amortized Cost | 101,959 | 1,699 |
Gross Unrealized Gains | 44 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | $ 102,003 | $ 1,699 |
Cash Equivalents and Marketab_4
Cash Equivalents and Marketable Securities - Summary of Contractual Maturities of Marketable Securities (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Cash Equivalents And Marketable Securities [Abstract] | ||
Less than one year | $ 421,166 | $ 85,077 |
Due in one to five years | 120,214 | 27,700 |
Total | $ 541,380 | $ 112,777 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Instruments Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Financial Assets: | ||
Cash equivalents | $ 134,203 | $ 78 |
Marketable securities | 541,380 | 112,777 |
Commercial paper | ||
Financial Assets: | ||
Cash equivalents | 14,239 | |
Marketable securities | 54,007 | 1,243 |
Corporate bonds | ||
Financial Assets: | ||
Marketable securities | 53,214 | |
Agency bonds | ||
Financial Assets: | ||
Marketable securities | 18,399 | 32,604 |
Corporate and other debt securities | ||
Financial Assets: | ||
Marketable securities | 269,209 | |
U.S. government agency securities | ||
Financial Assets: | ||
Marketable securities | 97,762 | 24,017 |
Fair Value ,Recurring Basis | ||
Financial Assets: | ||
Cash equivalents | 134,203 | 78 |
Marketable securities | 541,380 | 112,777 |
Prepaid expenses and other current assets | 100 | 200 |
Other assets, non-current | 2,044 | 2,144 |
Total financial assets | 677,727 | 115,199 |
Financial Liabilities: | ||
Convertible promissory notes – derivative liabilities | 163 | |
Other liabilities, non-current | 163 | |
Total financial liabilities | 163 | |
Fair Value ,Recurring Basis | Money market funds | ||
Financial Assets: | ||
Cash equivalents | 95,577 | 78 |
Fair Value ,Recurring Basis | Commercial paper | ||
Financial Assets: | ||
Cash equivalents | 14,239 | |
Fair Value ,Recurring Basis | Corporate debt securities | ||
Financial Assets: | ||
Cash equivalents | 4,900 | |
Fair Value ,Recurring Basis | Treasury bills | ||
Financial Assets: | ||
Cash equivalents | 19,487 | |
Fair Value ,Recurring Basis | Commercial paper | ||
Financial Assets: | ||
Marketable securities | 54,007 | 1,243 |
Fair Value ,Recurring Basis | Corporate bonds | ||
Financial Assets: | ||
Marketable securities | 53,214 | |
Fair Value ,Recurring Basis | Agency bonds | ||
Financial Assets: | ||
Marketable securities | 18,399 | 32,604 |
Fair Value ,Recurring Basis | Corporate and other debt securities | ||
Financial Assets: | ||
Marketable securities | 269,209 | |
Fair Value ,Recurring Basis | U.S. government agency securities | ||
Financial Assets: | ||
Marketable securities | 97,762 | 24,017 |
Fair Value ,Recurring Basis | Treasury bills | ||
Financial Assets: | ||
Marketable securities | 102,003 | 1,699 |
Fair Value ,Recurring Basis | Certificate of deposit | ||
Financial Assets: | ||
Prepaid expenses and other current assets | 100 | 200 |
Other assets, non-current | 2,044 | 2,144 |
Fair Value ,Recurring Basis | Fair Value, Inputs, Level 1 | ||
Financial Assets: | ||
Cash equivalents | 95,577 | 78 |
Marketable securities | 0 | 0 |
Prepaid expenses and other current assets | 0 | 0 |
Other assets, non-current | 0 | 0 |
Total financial assets | 95,577 | 78 |
Financial Liabilities: | ||
Convertible promissory notes – derivative liabilities | 0 | |
Other liabilities, non-current | 0 | |
Total financial liabilities | 0 | |
Fair Value ,Recurring Basis | Fair Value, Inputs, Level 1 | Money market funds | ||
Financial Assets: | ||
Cash equivalents | 95,577 | 78 |
Fair Value ,Recurring Basis | Fair Value, Inputs, Level 1 | Commercial paper | ||
Financial Assets: | ||
Cash equivalents | 0 | |
Fair Value ,Recurring Basis | Fair Value, Inputs, Level 1 | Corporate debt securities | ||
Financial Assets: | ||
Cash equivalents | 0 | |
Fair Value ,Recurring Basis | Fair Value, Inputs, Level 1 | Treasury bills | ||
Financial Assets: | ||
Cash equivalents | 0 | |
Fair Value ,Recurring Basis | Fair Value, Inputs, Level 1 | Commercial paper | ||
Financial Assets: | ||
Marketable securities | 0 | 0 |
Fair Value ,Recurring Basis | Fair Value, Inputs, Level 1 | Corporate bonds | ||
Financial Assets: | ||
Marketable securities | 0 | |
Fair Value ,Recurring Basis | Fair Value, Inputs, Level 1 | Agency bonds | ||
Financial Assets: | ||
Marketable securities | 0 | 0 |
Fair Value ,Recurring Basis | Fair Value, Inputs, Level 1 | Corporate and other debt securities | ||
Financial Assets: | ||
Marketable securities | 0 | |
Fair Value ,Recurring Basis | Fair Value, Inputs, Level 1 | U.S. government agency securities | ||
Financial Assets: | ||
Marketable securities | 0 | 0 |
Fair Value ,Recurring Basis | Fair Value, Inputs, Level 1 | Treasury bills | ||
Financial Assets: | ||
Marketable securities | 0 | 0 |
Fair Value ,Recurring Basis | Fair Value, Inputs, Level 1 | Certificate of deposit | ||
Financial Assets: | ||
Prepaid expenses and other current assets | 0 | 0 |
Other assets, non-current | 0 | 0 |
Fair Value ,Recurring Basis | Fair Value, Inputs, Level 2 | ||
Financial Assets: | ||
Cash equivalents | 38,626 | 0 |
Marketable securities | 541,380 | 112,777 |
Prepaid expenses and other current assets | 100 | 200 |
Other assets, non-current | 2,044 | 2,144 |
Total financial assets | 582,150 | 115,121 |
Financial Liabilities: | ||
Convertible promissory notes – derivative liabilities | 0 | |
Other liabilities, non-current | 0 | |
Total financial liabilities | 0 | |
Fair Value ,Recurring Basis | Fair Value, Inputs, Level 2 | Money market funds | ||
Financial Assets: | ||
Cash equivalents | 0 | 0 |
Fair Value ,Recurring Basis | Fair Value, Inputs, Level 2 | Commercial paper | ||
Financial Assets: | ||
Cash equivalents | 14,239 | |
Fair Value ,Recurring Basis | Fair Value, Inputs, Level 2 | Corporate debt securities | ||
Financial Assets: | ||
Cash equivalents | 4,900 | |
Fair Value ,Recurring Basis | Fair Value, Inputs, Level 2 | Treasury bills | ||
Financial Assets: | ||
Cash equivalents | 19,487 | |
Fair Value ,Recurring Basis | Fair Value, Inputs, Level 2 | Commercial paper | ||
Financial Assets: | ||
Marketable securities | 54,007 | 1,243 |
Fair Value ,Recurring Basis | Fair Value, Inputs, Level 2 | Corporate bonds | ||
Financial Assets: | ||
Marketable securities | 53,214 | |
Fair Value ,Recurring Basis | Fair Value, Inputs, Level 2 | Agency bonds | ||
Financial Assets: | ||
Marketable securities | 18,399 | 32,604 |
Fair Value ,Recurring Basis | Fair Value, Inputs, Level 2 | Corporate and other debt securities | ||
Financial Assets: | ||
Marketable securities | 269,209 | |
Fair Value ,Recurring Basis | Fair Value, Inputs, Level 2 | U.S. government agency securities | ||
Financial Assets: | ||
Marketable securities | 97,762 | 24,017 |
Fair Value ,Recurring Basis | Fair Value, Inputs, Level 2 | Treasury bills | ||
Financial Assets: | ||
Marketable securities | 102,003 | 1,699 |
Fair Value ,Recurring Basis | Fair Value, Inputs, Level 2 | Certificate of deposit | ||
Financial Assets: | ||
Prepaid expenses and other current assets | 100 | 200 |
Other assets, non-current | 2,044 | 2,144 |
Fair Value ,Recurring Basis | Fair Value, Inputs, Level 3 | ||
Financial Assets: | ||
Cash equivalents | 0 | 0 |
Marketable securities | 0 | 0 |
Prepaid expenses and other current assets | 0 | 0 |
Other assets, non-current | 0 | 0 |
Total financial assets | 0 | 0 |
Financial Liabilities: | ||
Convertible promissory notes – derivative liabilities | 163 | |
Other liabilities, non-current | 163 | |
Fair Value ,Recurring Basis | Fair Value, Inputs, Level 3 | Money market funds | ||
Financial Assets: | ||
Cash equivalents | 0 | 0 |
Fair Value ,Recurring Basis | Fair Value, Inputs, Level 3 | Commercial paper | ||
Financial Assets: | ||
Cash equivalents | 0 | |
Fair Value ,Recurring Basis | Fair Value, Inputs, Level 3 | Corporate debt securities | ||
Financial Assets: | ||
Cash equivalents | 0 | |
Fair Value ,Recurring Basis | Fair Value, Inputs, Level 3 | Treasury bills | ||
Financial Assets: | ||
Cash equivalents | 0 | |
Fair Value ,Recurring Basis | Fair Value, Inputs, Level 3 | Commercial paper | ||
Financial Assets: | ||
Marketable securities | 0 | 0 |
Fair Value ,Recurring Basis | Fair Value, Inputs, Level 3 | Corporate bonds | ||
Financial Assets: | ||
Marketable securities | 0 | |
Fair Value ,Recurring Basis | Fair Value, Inputs, Level 3 | Agency bonds | ||
Financial Assets: | ||
Marketable securities | 0 | 0 |
Fair Value ,Recurring Basis | Fair Value, Inputs, Level 3 | Corporate and other debt securities | ||
Financial Assets: | ||
Marketable securities | 0 | |
Fair Value ,Recurring Basis | Fair Value, Inputs, Level 3 | U.S. government agency securities | ||
Financial Assets: | ||
Marketable securities | 0 | 0 |
Fair Value ,Recurring Basis | Fair Value, Inputs, Level 3 | Treasury bills | ||
Financial Assets: | ||
Marketable securities | 0 | 0 |
Fair Value ,Recurring Basis | Fair Value, Inputs, Level 3 | Certificate of deposit | ||
Financial Assets: | ||
Prepaid expenses and other current assets | 0 | 0 |
Other assets, non-current | $ 0 | $ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Changes in Fair Value of Financial Instruments (Details) - Fair Value, Inputs, Level 3 $ in Thousands | 6 Months Ended |
Jul. 31, 2019USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning Balance | $ 163 |
Ending Balance | 0 |
Convertible Promissory Notes | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Extinguishment of derivative liabilities from the convertible promissory notes in connection with the IPO | $ (163) |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Property and Equipment Net (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 70,566 | $ 48,743 |
Less: accumulated depreciation and amortization | (18,579) | (11,468) |
Property and equipment, net | 51,987 | 37,275 |
Computer and Office Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 43,877 | 32,515 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 15,290 | 7,660 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 7,941 | 6,575 |
Furniture and Fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 3,458 | $ 1,993 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Balance Sheet Components [Abstract] | ||||
Depreciation and amortization expense | $ 3.8 | $ 1.5 | $ 7.2 | $ 2.6 |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Balance Sheet Components [Abstract] | ||
Accrued compensation and benefits | $ 30,339 | $ 12,004 |
Accrued expenses | 20,092 | 13,596 |
Operating lease liabilities, current | 5,277 | |
Sales and other tax liabilities | 2,440 | 1,183 |
Liability for early exercise of common stock options | 1,797 | 1,781 |
Other | 4,641 | 3,692 |
Accrued expenses and other current liabilities | $ 64,586 | $ 32,256 |
Balance Sheet Components - Sc_3
Balance Sheet Components - Schedule of Other Liabilities Non Current (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Balance Sheet Components [Abstract] | ||
Sales and other tax liabilities | $ 29,182 | $ 20,817 |
Convertible promissory notes, net of debt discount | 0 | 14,858 |
Deferred rent liabilities | 2,314 | |
Derivative liabilities | 0 | 163 |
Other | 2,029 | 1,308 |
Other liabilities, non-current | $ 31,211 | $ 39,460 |
Convertible Promissory Notes -
Convertible Promissory Notes - Additional Information (Details) - USD ($) | 1 Months Ended | ||
Oct. 31, 2018 | Jul. 31, 2019 | Apr. 23, 2019 | |
Class A Common Stock | Initial public offering | |||
Debt Instrument [Line Items] | |||
Shares issued, price per share (in dollars per share) | $ 36 | ||
Convertible Promissory Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument term | 3 years | ||
Convertible promissory notes – derivative liabilities | $ 200,000 | ||
Unamortized debt discount of notes | $ 100,000 | ||
Dropbox | Convertible Promissory Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 5,000,000 | ||
Interest rate percentage | 2.75% | ||
Atlassian | Convertible Promissory Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 10,000,000 | ||
Interest rate percentage | 5.00% |
Operating Leases - Additional I
Operating Leases - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Lessee, Lease, Description [Line Items] | ||||
Operating lease, expense | $ 2.5 | $ 4.9 | ||
Short-term lease expense | $ 0.3 | $ 0.5 | ||
Weighted-average remaining lease term | 7 years 2 months 12 days | 7 years 2 months 12 days | ||
Weighted-average discount rate | 5.10% | 5.10% | ||
Operating lease that has not yet commenced with undiscounted cash flows | $ 25.5 | $ 25.5 | ||
Rent expense | $ 1.6 | $ 3 | ||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease contractual period | 10 years | 10 years |
Operating Leases - Schedule of
Operating Leases - Schedule of Supplemental Balance Sheet Information (Details) $ in Thousands | Jul. 31, 2019USD ($) |
Assets | |
Operating lease right-of-use assets | $ 51,126 |
Liabilities: | |
Accrued expenses and other current liabilities | 5,277 |
Operating lease liabilities, non-current | 48,104 |
Total operating lease liabilities | $ 53,381 |
Operating Leases - Schedule o_2
Operating Leases - Schedule of Supplemental Cash flow Information (Details) $ in Thousands | 6 Months Ended |
Jul. 31, 2019USD ($) | |
Leases [Abstract] | |
Cash paid within operating cash flows | $ 4,446 |
Operating lease right-of-use assets recognized in exchange for new operating lease obligations | $ 13,770 |
Operating Leases - Schedule o_3
Operating Leases - Schedule of Future Minimum Lease Payments included in Measurement of Operating Lease Liabilities (Details) $ in Thousands | Jul. 31, 2019USD ($) |
Operating Leases Future Minimum Lease Payments [Abstract] | |
2020 | $ 3,725 |
2021 | 8,249 |
2022 | 7,916 |
2023 | 7,954 |
2024 | 7,543 |
Thereafter | 30,551 |
Total operating lease payments | 65,938 |
Less: imputed interest | (12,557) |
Total operating lease liabilities | $ 53,381 |
Operating Leases - Schedule o_4
Operating Leases - Schedule of Future Minimum Payments Related to Operating Leases (Details) $ in Thousands | Jan. 31, 2019USD ($) |
Operating Leases, Future Minimum Payments Due [Abstract] | |
2020 | $ 7,609 |
2021 | 7,837 |
2022 | 7,888 |
2023 | 7,514 |
2024 | 7,174 |
Thereafter | 18,635 |
Total future minimum payments | $ 56,657 |
Convertible Preferred Stock, _3
Convertible Preferred Stock, Stockholders’ Equity (Deficit) and Equity Incentive Plan - Additional Information (Details) - USD ($) | Apr. 23, 2019 | Apr. 30, 2019 | Oct. 31, 2015 | Jul. 31, 2019 | Jan. 31, 2019 | Dec. 31, 2011 |
Class of Stock [Line Items] | ||||||
Convertible preferred stock, shares outstanding (in shares) | 0 | |||||
Conversion of convertible preferred stock to common stock upon initial public offering | $ 159,552,000 | |||||
Undesignated preferred stock shares authorized (in shares) | 200,000,000 | 0 | ||||
Undesignated referred stock par value (in dollars per share) | $ 0.001 | $ 0.001 | ||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | ||||
Stock options outstanding (in shares) | 35,064,465 | 22,046,188 | ||||
Unrecognized stock-based compensation expenses related to outstanding unvested stock options | $ 94,300,000 | |||||
Proceeds from unvested shares of common stock | 1,800,000 | $ 1,800,000 | ||||
Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Conversion of convertible preferred stock to common stock upon initial public offering | $ 153,000 | |||||
RSUs | ||||||
Class of Stock [Line Items] | ||||||
Unrecognized stock-based compensation excepted to be recognized over a weighted-average period | 3 years 10 months 24 days | |||||
Unrecognized stock-based compensation expenses | $ 33,900,000 | |||||
Number of shares of common stock unvested and subject to repurchase (in shares) | 370,860 | 0 | ||||
Stock options | ||||||
Class of Stock [Line Items] | ||||||
Unrecognized stock-based compensation excepted to be recognized over a weighted-average period | 3 years 3 months 18 days | |||||
Employee Stock Purchase Plan | ||||||
Class of Stock [Line Items] | ||||||
Unrecognized stock-based compensation excepted to be recognized over a weighted-average period | 1 year 10 months 24 days | |||||
Unrecognized stock-based compensation expenses | $ 78,500,000 | |||||
Payroll deductions to participate in plan | 20.00% | |||||
Maximum number of shares per employee (in shares) | 3,000 | |||||
Consecutive offering period | 27 months | |||||
Restricted Stock Awards | Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Number of shares of common stock unvested and subject to repurchase (in shares) | 180,408 | |||||
Restricted Stock Awards | Board of directors, member | ||||||
Class of Stock [Line Items] | ||||||
Vesting period of awards | 4 years | |||||
Shares issued of common stock (in shares) | 1,202,720 | |||||
Grant date fair value (in dollars per share) | $ 0.14 | |||||
Shares issued of common stock, value | $ 200,000 | |||||
Shares vested on the grant date | 481,088 | |||||
2011 Plan | ||||||
Class of Stock [Line Items] | ||||||
Vesting period of awards | 4 years | |||||
Shares of common stock reserved for grants of awards (in shares) | 71,240,000 | |||||
Number of shares available for future issuance (in shares) | 24,300,889 | |||||
2019 Plan | ||||||
Class of Stock [Line Items] | ||||||
Percentage of shares reserved increase | 5.00% | |||||
2019 Employee Stock Purchase Plan | Employee Stock Purchase Plan | ||||||
Class of Stock [Line Items] | ||||||
Annual increase in shares for available for future issuance by percentage of the outstanding ordinary shares on the first day of such fiscal year. | 1.00% | |||||
Annual increase in Number of shares of common stock available for future issuance | 7,500,000 | |||||
Initial public offering | ||||||
Class of Stock [Line Items] | ||||||
Undesignated preferred stock shares authorized (in shares) | 200,000,000 | |||||
Undesignated referred stock par value (in dollars per share) | $ 0.001 | |||||
Convertible Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Convertible preferred stock, shares outstanding (in shares) | 152,665,804 | |||||
Convertible preferred stock, shares issued (in shares) | 0 | |||||
Undesignated preferred stock shares authorized (in shares) | 0 | 158,104,540 | ||||
Undesignated referred stock par value (in dollars per share) | $ 0.001 | $ 0.001 | ||||
Convertible Preferred Stock | Initial public offering | ||||||
Class of Stock [Line Items] | ||||||
Conversion of convertible preferred stock to common stock upon initial public offering | $ 159,600,000 | |||||
Class A Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Common stock, shares authorized (in shares) | 2,000,000,000 | 320,000,000 | ||||
Class A Common Stock | Employee Stock Purchase Plan | ||||||
Class of Stock [Line Items] | ||||||
Percentage of purchase price of common stock to fair market value of common stock on offering or purchase date | 85.00% | |||||
ESPP excess rate purchase right, value | $ 25,000 | |||||
Shares issued of common stock (in shares) | 0 | |||||
Class A Common Stock | 2019 Plan | ||||||
Class of Stock [Line Items] | ||||||
Number of shares available for future issuance (in shares) | 58,300,889 | |||||
Numbers of additional shares authorized under the plan (in shares) | 34,000,000 | |||||
Class A Common Stock | 2019 Employee Stock Purchase Plan | Employee Stock Purchase Plan | ||||||
Class of Stock [Line Items] | ||||||
Number of shares available for future issuance (in shares) | 9,000,000 | |||||
Class A Common Stock | Initial public offering | ||||||
Class of Stock [Line Items] | ||||||
Common stock, shares authorized (in shares) | 2,000,000,000 | |||||
Common stock, par value (in dollars per share) | $ 0.001 | |||||
Class B Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 | ||||
Number of common stock subject to repurchase (in shares) | 663,826 | 1,261,230 | ||||
Weighted average price per share (in dollars per share) | $ 1.41 | $ 2.71 | ||||
Class B Common Stock | 2011 Plan | ||||||
Class of Stock [Line Items] | ||||||
Stock options outstanding (in shares) | 35,064,465 | |||||
Number of shares available for future issuance (in shares) | 1,848,100 | |||||
Class B Common Stock | Initial public offering | ||||||
Class of Stock [Line Items] | ||||||
Common stock, shares authorized (in shares) | 300,000,000 | |||||
Common stock, par value (in dollars per share) | $ 0.001 |
Convertible Preferred Stock, _4
Convertible Preferred Stock, Stockholders’ Equity (Deficit) and Equity Incentive Plan - Summary of Stock Option Activity Under Equity Incentive Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jul. 31, 2019 | Apr. 30, 2019 | Jul. 31, 2019 | |
Outstanding Stock Options | |||
Beginning balance (in shares) | 35,064,465 | ||
Granted (in shares) | 1,537,900 | ||
Exercised (in shares) | (14,272,059) | ||
Cancelled/forfeited/expired (in shares) | (284,118) | ||
Ending balance (in shares) | 22,046,188 | 35,064,465 | 22,046,188 |
Weighted- Average Exercise Price | |||
Beginning balance (in dollars per share) | $ 1.48 | ||
Granted (in dollars per share) | $ 36.77 | ||
Exercised (in dollars per share) | 0.16 | ||
Cancelled/forfeited/expired (in dollars per share) | 6.11 | ||
Ending balance (in dollars per share) | $ 4.73 | $ 1.48 | $ 4.73 |
Weighted- Average Remaining Contractual Life (Years) | 6 years 9 months 18 days | 8 years | |
Options Outstanding, Aggregate Intrinsic Value | $ 2,001,410 | $ 534,572 | $ 2,001,410 |
Outstanding Stock Options, Vested (in shares) | 8,692,345 | 8,692,345 | |
Weighted Average Exercise price, Vested (in shares) | $ 1.02 | $ 1.02 | |
Weighted-Average Remaining Contractual Life (Years), Vested | 7 years 1 month 6 days | ||
Options Outstanding, Aggregate Intrinsic Value, Vested | $ 821,380 | $ 821,380 |
Convertible Preferred Stock, _5
Convertible Preferred Stock, Stockholders’ Equity (Deficit) and Equity Incentive Plan - Summary of Restricted Stock Units Activity Under Equity Incentive Plan (Details) - RSUs | 6 Months Ended |
Jul. 31, 2019$ / sharesshares | |
Outstanding RSUs | |
Beginning balance (in units) | shares | 0 |
Granted (in units) | shares | 376,786 |
Cancelled/forfeited (in units) | shares | (5,926) |
Ending balance (in units) | shares | 370,860 |
Weighted- Average Grant Date Fair Value Per Share | |
Beginning balance (in dollars per unit) | $ / shares | $ 0 |
Granted (in dollars per unit) | $ / shares | 93.89 |
Cancelled/forfeited (in dollars per unit) | $ / shares | 94.52 |
Ending balance (in dollars per unit) | $ / shares | $ 93.88 |
Convertible Preferred Stock, _6
Convertible Preferred Stock, Stockholders’ Equity (Deficit) and Equity Incentive Plan - Fair Value of ESPP Purchase Rights Assumptions (Details) - Employee Stock Purchase Plan | 3 Months Ended |
Jul. 31, 2019$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility, minimum | 46.10% |
Expected volatility, maximum | 56.20% |
Risk-free interest rate, minimum | 1.90% |
Risk-free interest rate, maximum | 2.50% |
Expected dividend yield | 0.00% |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected purchase price (in dollars per share) | $ 30.60 |
Expected term | 6 years |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected purchase price (in dollars per share) | $ 83.39 |
Expected term | 2 years 1 month 6 days |
Convertible Preferred Stock, _7
Convertible Preferred Stock, Stockholders’ Equity (Deficit) and Equity Incentive Plan - Summary of Stock-based Compensation Expense by Line Item (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 18,075 | $ 1,126 | $ 24,737 | $ 1,975 |
Cost of revenue | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 1,902 | 130 | 2,732 | 225 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 2,510 | 193 | 3,674 | 322 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 10,439 | 492 | 13,066 | 888 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 3,224 | $ 311 | $ 5,265 | $ 540 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 1,216 | $ 141 | $ 1,532 | $ 238 |
Net Income Per Share Attribut_3
Net Income Per Share Attributable to Common Stockholders - Schedule of Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Numerator: | ||||
Net income | $ 5,541 | $ 3,825 | $ 7,755 | $ 2,485 |
Net income attributable to common stockholders | $ 5,521 | $ 496 | $ 4,961 | $ 0 |
Denominator: | ||||
Weighted-average shares used in computing net income per share attributable to common stockholders, basic (in shares) | 271,813,141 | 83,330,741 | 192,130,510 | 81,999,734 |
Weighted-average shares used in computing net income per share attributable to common stockholders, diluted (in shares) | 292,185,665 | 108,454,323 | 215,774,619 | 107,584,379 |
Net income per share attributable to common stockholders, basic (in dollars per share) | $ 0.02 | $ 0.01 | $ 0.03 | $ 0 |
Net income per share attributable to common stockholders, diluted (in dollars per share) | $ 0.02 | $ 0 | $ 0.02 | $ 0 |
Class A Common Stock | ||||
Numerator: | ||||
Net income | $ 0 | $ 0 | ||
Less: undistributed earnings attributable to participating securities | 0 | 0 | ||
Reallocation of net income attributable to common stockholders | 751 | 592 | ||
Net income attributable to common stockholders | 751 | 592 | ||
Reallocation of net income attributable to common stockholders | (50) | (64) | ||
Net income (loss) attributable to common stockholders, diluted | $ 701 | $ 528 | ||
Denominator: | ||||
Weighted-average shares used in computing net income per share attributable to common stockholders, basic (in shares) | 36,950,454 | 22,908,474 | ||
Weighted-average shares used in computing net income per share attributable to common stockholders, diluted (in shares) | 37,120,969 | 22,977,562 | ||
Net income per share attributable to common stockholders, basic (in dollars per share) | $ 0.02 | $ 0.03 | ||
Net income per share attributable to common stockholders, diluted (in dollars per share) | $ 0.02 | $ 0.02 | ||
Class B Common Stock | ||||
Numerator: | ||||
Net income | $ 5,541 | $ 3,825 | $ 7,755 | $ 2,485 |
Less: undistributed earnings attributable to participating securities | (20) | (3,329) | (2,794) | (2,485) |
Reallocation of net income attributable to common stockholders | (751) | 0 | (592) | 0 |
Net income attributable to common stockholders | 4,770 | 496 | 4,369 | 0 |
Reallocation of net income attributable to common stockholders | 50 | 0 | 64 | 0 |
Net income (loss) attributable to common stockholders, diluted | $ 4,820 | $ 496 | $ 4,433 | $ 0 |
Denominator: | ||||
Weighted-average shares used in computing net income per share attributable to common stockholders, basic (in shares) | 234,862,687 | 83,330,741 | 169,222,036 | 81,999,734 |
Weighted-average shares used in computing net income per share attributable to common stockholders, diluted (in shares) | 255,064,696 | 108,454,323 | 192,797,057 | 107,584,379 |
Net income per share attributable to common stockholders, basic (in dollars per share) | $ 0.02 | $ 0.01 | $ 0.03 | $ 0 |
Net income per share attributable to common stockholders, diluted (in dollars per share) | $ 0.02 | $ 0 | $ 0.02 | $ 0 |
Net Income Per Share Attribut_4
Net Income Per Share Attributable to Common Stockholders - Summary of Potential Shares of Common Stock Excluded from Computation of Diluted Net Income Per Share Attributable to Common Stockholders (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Class A Common Stock | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 293,909 | 149,390 | ||
Issuance of common stock reserved for charitable donation (in shares) | 500,000 | |||
Class A Common Stock | Outstanding stock options | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 116,649 | 59,291 | ||
Class A Common Stock | Unvested RSUs | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 153,751 | 78,150 | ||
Class A Common Stock | Purchase rights committed under the ESPP | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 23,509 | 11,949 | ||
Class B Common Stock | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 155,692,789 | 154,916,528 | ||
Class B Common Stock | Convertible preferred stock | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 152,665,804 | 152,665,804 | ||
Class B Common Stock | Outstanding stock options | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 3,026,985 | 2,250,724 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Veeva Systems Inc. | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related party | $ 0.3 | $ 0.3 | $ 0.7 | $ 0.6 |
Uncategorized Items - zm-201907
Label | Element | Value |
Restricted Cash and Cash Equivalents, Current | us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue | $ 200,000 |
Restricted Cash and Cash Equivalents, Noncurrent | us-gaap_RestrictedCashAndCashEquivalentsNoncurrent | $ 1,175,000 |