Cover Page
Cover Page | 6 Months Ended |
Jul. 31, 2019shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jul. 31, 2019 |
Document Transition Report | false |
Entity File Number | 001-38044 |
Entity Registrant Name | Okta, Inc. |
Entity Incorporation, State or Country Code | DE |
Entity Address, Address Line One | 100 First Street, Suite 600 |
Entity Tax Identification Number | 26-4175727 |
Entity Address, City or Town | San Francisco |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 94105 |
City Area Code | 888 |
Local Phone Number | 722-7871 |
Title of 12(b) Security | Class A common stock, par value $0.0001 per share |
Trading Symbol | OKTA |
Security Exchange Name | NASDAQ |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Smaller Reporting Company | false |
Emerging Growth Company | false |
Entity Shell Company | false |
Amendment Flag | false |
Entity Central Index Key | 0001660134 |
Current Fiscal Year End Date | --01-31 |
Document Fiscal Year Focus | 2020 |
Document Period Focus | Q2 |
Class A Common Stock | |
Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 106,594,796 |
Class B Common Stock | |
Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 10,153,338 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 | [1] |
Current assets: | |||
Cash and cash equivalents | $ 206,753 | $ 298,394 | |
Short-term investments | 350,712 | 265,374 | |
Accounts receivable, net of allowances of $1,331 and $2,098 | 87,851 | 91,926 | |
Deferred commissions | 27,062 | 24,185 | |
Prepaid expenses and other current assets | 24,642 | 28,237 | |
Total current assets | 697,020 | 708,116 | |
Property and equipment, net | 51,858 | 52,921 | |
Operating lease right-of-use assets | 116,706 | 121,389 | |
Deferred commissions, noncurrent | 59,560 | 54,812 | |
Intangible assets, net | 34,712 | 13,897 | |
Goodwill | 47,964 | 18,089 | |
Other assets | 18,990 | 15,089 | |
Total assets | 1,026,810 | 984,313 | |
Current liabilities: | |||
Accounts payable | 3,492 | 2,431 | |
Accrued expenses and other current liabilities | 31,843 | 33,653 | |
Accrued compensation | 21,869 | 19,770 | |
Convertible senior notes, net | 279,741 | 271,628 | |
Deferred revenue | 283,724 | 245,622 | |
Total current liabilities | 620,669 | 573,104 | |
Operating lease liabilities, noncurrent | 143,706 | 147,046 | |
Deferred revenue, noncurrent | 7,469 | 8,768 | |
Other liabilities, noncurrent | 4,241 | 3,018 | |
Total liabilities | 776,085 | 731,936 | |
Commitments and contingencies (Note 11) | |||
Stockholders’ equity: | |||
Preferred stock, par value $0.0001 per share; 100,000 shares authorized, no shares issued and outstanding as of July 31, 2019 and January 31, 2019. | 0 | 0 | |
Additional paid-in capital | 839,523 | 744,896 | |
Accumulated other comprehensive loss | (1,653) | (319) | |
Accumulated deficit | (587,157) | (492,211) | |
Total stockholders’ equity | 250,725 | 252,377 | |
Total liabilities and stockholders’ equity | 1,026,810 | 984,313 | |
Class A Common Stock | |||
Stockholders’ equity: | |||
Common stock | 11 | 10 | |
Class B Common Stock | |||
Stockholders’ equity: | |||
Common stock | $ 1 | $ 1 | |
[1] | Adjusted for adoption of ASC 842, Leases. See Note 2. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for accounts receivable | $ 1,331 | $ 2,098 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Class A Common Stock | ||
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 106,595,000 | 101,093,000 |
Common stock, shares outstanding (in shares) | 106,595,000 | 101,093,000 |
Class B Common Stock | ||
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 120,000,000 | 120,000,000 |
Common stock, shares issued (in shares) | 10,153,000 | 11,059,000 |
Common stock, shares outstanding (in shares) | 10,153,000 | 11,059,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | ||
Revenue: | |||||
Total revenue | $ 140,480 | $ 94,586 | $ 265,703 | $ 178,207 | |
Cost of revenue: | |||||
Total cost of revenue | 38,780 | 28,228 | 73,875 | 52,335 | |
Gross profit | 101,700 | 66,358 | 191,828 | 125,872 | |
Operating expenses: | |||||
Research and development | 40,045 | 24,829 | 74,077 | 44,758 | |
Sales and marketing | 78,385 | 59,004 | 160,497 | 108,497 | |
General and administrative | 26,887 | 20,955 | 52,653 | 36,025 | |
Total operating expenses | 145,317 | 104,788 | 287,227 | 189,280 | |
Operating loss | (43,617) | (38,430) | (95,399) | (63,408) | |
Interest expense | (4,304) | (4,058) | (8,545) | (6,775) | |
Other income, net | 3,464 | 2,296 | 6,364 | 3,798 | |
Loss before benefit from income taxes | (44,457) | (40,192) | (97,580) | (66,385) | |
Benefit from income taxes | (1,477) | (985) | (2,634) | (1,216) | |
Net loss | $ (42,980) | $ (39,207) | $ (94,946) | $ (65,169) | [1] |
Net loss per share, basic and diluted (in dollars per share) | $ (0.37) | $ (0.37) | $ (0.83) | $ (0.62) | |
Weighted-average shares used to compute net loss per share, basic and diluted (in shares) | 115,033 | 106,702 | 114,042 | 105,475 | |
Subscription | |||||
Revenue: | |||||
Total revenue | $ 132,494 | $ 87,854 | $ 249,657 | $ 164,695 | |
Cost of revenue: | |||||
Total cost of revenue | 27,917 | 19,211 | 52,457 | 35,543 | |
Professional services and other | |||||
Revenue: | |||||
Total revenue | 7,986 | 6,732 | 16,046 | 13,512 | |
Cost of revenue: | |||||
Total cost of revenue | $ 10,863 | $ 9,017 | $ 21,418 | $ 16,792 | |
[1] | Adjusted for adoption of ASC 842, Leases. See Note 2. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - 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 loss | $ (42,980) | $ (39,207) | $ (94,946) | $ (65,169) | [1] |
Other comprehensive income (loss): | |||||
Net change in unrealized losses on available-for-sale securities | 194 | 77 | 389 | (48) | |
Foreign currency translation adjustments | (1,390) | (379) | (1,723) | (823) | |
Other comprehensive loss | (1,196) | (302) | (1,334) | (871) | |
Comprehensive loss | $ (44,176) | $ (39,509) | $ (96,280) | $ (66,040) | |
[1] | Adjusted for adoption of ASC 842, Leases. See Note 2. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common stock and additional paid-in capital | Accumulated deficit | Accumulated other comprehensive loss | |
Beginning balance at Jan. 31, 2018 | $ 565,663 | $ (366,714) | $ 391 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options and other activity, net | 29,154 | ||||
Issuance of common stock for settlement of RSUs | 0 | ||||
Stock-based compensation | 32,660 | ||||
Equity component of convertible senior notes, net of issuance costs | 77,631 | ||||
Issuance of warrants related to convertible notes | 52,440 | ||||
Purchase of convertible senior notes hedges | (80,040) | ||||
Net loss | $ (65,169) | [1] | (65,169) | ||
Other comprehensive loss | (871) | ||||
Ending balance at Jul. 31, 2018 | 245,145 | 677,508 | (431,883) | (480) | |
Beginning balance at Apr. 30, 2018 | 642,471 | (392,676) | (178) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options and other activity, net | 16,740 | ||||
Issuance of common stock for settlement of RSUs | 0 | ||||
Stock-based compensation | 18,308 | ||||
Equity component of convertible senior notes, net of issuance costs | (11) | ||||
Issuance of warrants related to convertible notes | 0 | ||||
Purchase of convertible senior notes hedges | 0 | ||||
Net loss | (39,207) | (39,207) | |||
Other comprehensive loss | (302) | ||||
Ending balance at Jul. 31, 2018 | 245,145 | 677,508 | (431,883) | (480) | |
Beginning balance at Jan. 31, 2019 | 252,377 | [2] | 744,907 | (492,211) | (319) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options and other activity, net | 37,481 | ||||
Issuance of common stock for settlement of RSUs | 2,809 | ||||
Stock-based compensation | 54,338 | ||||
Equity component of convertible senior notes, net of issuance costs | 0 | ||||
Issuance of warrants related to convertible notes | 0 | ||||
Purchase of convertible senior notes hedges | 0 | ||||
Net loss | (94,946) | (94,946) | |||
Other comprehensive loss | (1,334) | ||||
Ending balance at Jul. 31, 2019 | 250,725 | 839,535 | (587,157) | (1,653) | |
Beginning balance at Apr. 30, 2019 | 784,078 | (544,177) | (457) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options and other activity, net | 23,965 | ||||
Issuance of common stock for settlement of RSUs | 0 | ||||
Stock-based compensation | 31,492 | ||||
Equity component of convertible senior notes, net of issuance costs | 0 | ||||
Issuance of warrants related to convertible notes | 0 | ||||
Purchase of convertible senior notes hedges | 0 | ||||
Net loss | (42,980) | (42,980) | |||
Other comprehensive loss | (1,196) | ||||
Ending balance at Jul. 31, 2019 | $ 250,725 | $ 839,535 | $ (587,157) | $ (1,653) | |
[1] | Adjusted for adoption of ASC 842, Leases. See Note 2. | ||||
[2] | Adjusted for adoption of ASC 842, Leases. See Note 2. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | [1] | |
Cash flows from operating activities: | |||
Net loss | $ (94,946) | $ (65,169) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Stock-based compensation | 53,959 | 32,357 | |
Depreciation, amortization and accretion | 7,916 | 3,699 | |
Amortization of debt discount and issuance costs | 8,113 | 6,413 | |
Amortization of deferred commissions | 13,192 | 9,613 | |
Deferred income taxes | (3,057) | (1,575) | |
Non-cash charitable contributions | 652 | 1,008 | |
Other | 84 | 18 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 4,459 | (7,240) | |
Deferred commissions | (21,372) | (14,240) | |
Prepaid expenses and other assets | 1,534 | 622 | |
Operating lease right-of-use assets | 6,189 | 7,540 | |
Accounts payable | 1,368 | 767 | |
Accrued compensation | 4,717 | 498 | |
Accrued expenses and other liabilities | 1,304 | 2,061 | |
Operating lease liabilities | (159) | (4,554) | |
Deferred revenue | 36,175 | 26,811 | |
Net cash provided by (used in) operating activities | 20,128 | (1,371) | |
Cash flows from investing activities: | |||
Capitalization of internal-use software costs | (1,330) | (1,725) | |
Purchases of property and equipment | (9,917) | (9,790) | |
Purchases of securities available for sale and other | (237,693) | (320,018) | |
Proceeds from maturities of securities available for sale | 136,344 | 79,500 | |
Proceeds from sales of securities available for sale and other | 17,329 | 0 | |
Purchases of intangible assets | (8,500) | 0 | |
Payments for business acquisition, net of cash acquired | (44,223) | (15,638) | |
Net cash used in investing activities | (147,990) | (267,671) | |
Cash flows from financing activities: | |||
Proceeds from issuance of convertible senior notes, net of issuance costs | 0 | 334,980 | |
Purchase of convertible senior notes hedge | 0 | (80,040) | |
Proceeds from issuance of warrants related to convertible notes | 0 | 52,440 | |
Proceeds from stock option exercises, net of repurchases | 27,453 | 21,055 | |
Proceeds from shares issued in connection with employee stock purchase plan | 9,005 | 6,654 | |
Other, net | (126) | (206) | |
Net cash provided by financing activities | 36,332 | 334,883 | |
Effects of changes in foreign currency exchange rates on cash, cash equivalents and restricted cash | (1,187) | (632) | |
Net increase (decrease) in cash, cash equivalents and restricted cash | (92,717) | 65,209 | |
Cash, cash equivalents and restricted cash at beginning of period | 311,215 | 136,233 | |
Cash, cash equivalents and restricted cash at end of period | 218,498 | 201,442 | |
Supplementary cash flow disclosure: | |||
Interest | 431 | 0 | |
Income taxes | 654 | 0 | |
Vesting of early exercised common stock options | 370 | 459 | |
Common stock issued as charitable contribution | 652 | 1,008 | |
Operating lease right-of-use assets exchanged for lease obligations | 1,665 | 125,526 | |
Property and equipment acquired through tenant improvement allowance | 0 | 22,237 | |
Property and equipment and other accrued but not yet paid | 602 | 605 | |
Bonus settled through the issuance of common stock | 2,809 | 0 | |
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: | |||
Total cash, cash equivalents and restricted cash | $ 311,215 | $ 136,233 | |
[1] | Adjusted for adoption of ASC 842, Leases. See Note 2. |
Overview and Basis of Presentat
Overview and Basis of Presentation | 6 Months Ended |
Jul. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Overview and Basis of Presentation | Overview and Basis of Presentation Description of Business Okta, Inc. (the Company) is the leading independent identity management platform for the enterprise. The Okta Identity Cloud enables the Company’s customers to securely connect people to technology, anywhere, anytime and from any device. The Company was incorporated in January 2009 as Saasure Inc., a California corporation, and was later reincorporated in April 2010 under the name Okta, Inc. as a Delaware corporation. The Company is headquartered in San Francisco, California. Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements, which include the accounts of the Company and its wholly owned subsidiaries, have been prepared in conformity with U.S. generally accepted accounting principles (GAAP). All intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated balance sheet as of January 31, 2019 , included herein, was derived from the audited financial statements as of that date. The unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the results of operations for the interim periods presented, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year ending January 31, 2020 or any future period. The Company’s fiscal year ends on January 31. References to fiscal 2020 , for example, refer to the fiscal year ending January 31, 2020 . The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Form 10-K filed with the Securities and Exchange Commission (SEC) on March 14, 2019. Effective February 1, 2018, the Company adopted the requirements of Accounting Standards Update (ASU) No. 2016-02, Leases (ASC 842) as discussed in Note 2. All amounts and disclosures set forth in this Form 10-Q have been updated to comply with this standard, as indicated by references to "as adjusted" in these condensed consolidated financial statements and related notes. Certain reclassifications of prior period amounts have been made in our condensed consolidated financial statements to conform to the current period presentation. We reclassified $14.8 million of certain accrued accounts payable to accrued expenses as of January 31, 2019. These reclassifications had no impact on net loss, stockholders’ equity or cash flows as previously reported. Convertible Senior Notes In February 2018, the Company issued $345.0 million aggregate principal amount of 0.25% convertible senior notes due February 15, 2023 (2023 Notes) in a private offering, including the initial purchasers’ exercise in full of their option to purchase additional notes. The Company received aggregate proceeds of $345.0 million , before deducting costs of issuance of $10.0 million . See Note 9 for additional details. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, 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. The Company bases its estimates on historical experience and on other assumptions that its management believes are reasonable under the circumstances. Actual results could vary from those estimates. The Company’s most significant estimates include the stand alone selling price (SSP) for each distinct performance obligation included in customer contracts with multiple performance obligations, the determination of the period of benefit for deferred commissions, the determination of the effective interest rate of the liability components of the 2023 Notes, the determination of the incremental borrowing rate used for operating lease liabilities, the valuation of deferred income tax assets, contingencies and the valuation of acquired intangible assets. |
Accounting Standards and Signif
Accounting Standards and Significant Accounting Policies | 6 Months Ended |
Jul. 31, 2019 | |
Accounting Policies [Abstract] | |
Accounting Standards and Significant Accounting Policies | Accounting Standards and Significant Accounting Policies Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-02, Leases (ASC 842) , which requires lessees to record a right-of-use asset and a corresponding lease liability on their balance sheet for most leases. The Company adopted the requirements of ASC 842 as of February 1, 2019, using the modified retrospective method for leases that existed as of February 1, 2017, or were entered into thereafter. The modified retrospective method provides a method for recording existing leases at adoption and in comparative periods that approximates the results of a full retrospective approach. In order to simplify an entity’s transition, ASC 842 provides a package of three practical expedients, which must be elected together and applied consistently to all of an entity’s leases. The Company elected to utilize the package of practical expedients and, therefore, did not reassess: • whether contractual arrangements that expired prior to or existed as of February 1, 2017, are or contain leases, • the classification of leases that expired prior to or existed as of February 1, 2017, and • initial direct costs for leases that existed as of February 1, 2017. As of the later of February 1, 2017 or each lease’s respective commencement date, the Company recorded lease liabilities equal to the present value of the remaining minimum lease payments and right-of-use assets equal to the corresponding lease liability adjusted for (i) any prepaid or accrued lease payments, (ii) the remaining balance of any lease incentives received, (iii) unamortized initial direct costs and (iv) any impairments. The Company adjusted its condensed consolidated balance sheet from amounts previously reported due to the adoption of ASC 842. Select condensed consolidated balance sheet line items, which reflect the adoption of ASC 842, are as follows (in thousands): As of January 31, 2019 As Reported Adoption of ASC 842 As Adjusted (unaudited) Assets Current assets: Prepaid expenses and other current assets $ 29,451 $ (1,214 ) $ 28,237 Total current assets 709,330 (1,214 ) 708,116 Operating lease right-of-use assets — 121,389 121,389 Other noncurrent assets 15,286 (197 ) 15,089 Total assets $ 864,335 $ 119,978 $ 984,313 Liabilities and stockholders’ equity Current liabilities: Accrued expenses and other liabilities $ 24,740 $ 8,913 $ 33,653 Total current liabilities 564,191 8,913 573,104 Other noncurrent liabilities 38,999 (35,981 ) 3,018 Operating lease liabilities, noncurrent — 147,046 147,046 Total liabilities 611,958 119,978 731,936 Total liabilities and stockholders’ equity $ 864,335 $ 119,978 $ 984,313 The Company’s condensed consolidated statement of cash flows reflects the adoption of ASC 842. The adoption of ASC 842 did not have an impact on cash provided by or used in operating, investing, or financing activities or on the Company’s condensed consolidated statements of operations. Significant Accounting Policies The Company’s significant accounting policies are discussed in “Note 2. Summary of Significant Accounting Policies” in Item 8. Financial Statements and Supplementary Data of its Form 10-K for the fiscal year ended January 31, 2019. Except for the accounting policies for operating leases that were updated below as a result of adopting ASC 842, there have been no significant changes to these policies for the six months ended July 31, 2019 . Operating Leases and Incremental Borrowing Rate The Company leases office space under operating leases with expiration dates through 2028. The Company determines whether an arrangement constitutes a lease and records lease liabilities and right-of-use assets on its consolidated balance sheets at lease commencement. Lease liabilities are measured based on the present value of the total lease payments not yet paid discounted based on the more readily determinable of the rate implicit in the lease or the Company’s incremental borrowing rate, which is the estimated rate the Company would be required to pay for a collateralized borrowing equal to the total lease payments over the term of the lease. The estimation of the incremental borrowing rate is based on an analysis of publicly traded debt securities of companies with similar credit and financial profiles. Right-of-use assets are measured based on the corresponding lease liability adjusted for (i) payments made to the lessor at or before the commencement date, (ii) initial direct costs incurred and (iii) tenant incentives under the lease. Recognition of rent expense begins when the lessor makes the underlying asset available to the Company. The Company does not assume renewals or early terminations of its leases unless it is reasonably certain to exercise these options at commencement and does not allocate consideration between lease and non-lease components. For short-term leases, the Company records rent expense in its condensed consolidated statements of operations on a straight-line basis over the lease term and records variable lease payments as incurred. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments, which changes the impairment model for most financial assets. The new model uses a forward-looking expected loss method, which will generally result in earlier recognition of allowances for losses. This guidance is effective for the Company on February 1, 2020 with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (ASU 2018-15), which requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in Accounting Standards Codification 350-40 to determine which implementation costs to defer and recognize as an asset. This guidance is effective for the Company on February 1, 2020 with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its condensed consolidated financial statements. |
Business Combinations
Business Combinations | 6 Months Ended |
Jul. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations On July 13, 2018, the Company acquired all issued and outstanding capital stock of ScaleFT, Inc. (ScaleFT), a “zero trust” security company which provides access solutions for the modern workforce. The acquisition date cash consideration transferred for ScaleFT was $15.6 million , net of $0.6 million in cash acquired. The Company recorded $4.6 million for developed technology intangible assets with an estimated useful life of three years and $11.8 million of goodwill which is primarily attributed to the assembled workforce as well as the integration of ScaleFT’s technology and the Company’s technology. The Company incurred $1.1 million of acquisition-related costs, which were recorded as general and administrative expense in the quarter ended July 31, 2018. On March 18, 2019, the Company acquired all issued and outstanding capital stock of Azuqua, Inc. (Azuqua), a company which provides a no-code, cloud-based integration platform that automates workflows between applications and services. The acquisition date cash consideration transferred for Azuqua was $44.2 million , net of $1.1 million in cash acquired. The Company recorded $15.7 million for developed technology intangible assets with an estimated useful life of five years and preliminarily recorded $29.9 million of goodwill which is primarily attributed to the assembled workforce as well as the integration of Azuqua’s technology and the Company’s technology. The Company incurred $3.0 million of acquisition-related costs, which were recorded as general and administrative expense in the quarter ended April 30, 2019. The Company also incurred total deferred compensation arrangements in connection with these acquisitions of $10.8 million , of which $2.1 million was recognized as compensation during the six months ended July 31, 2019 . The remaining deferred compensation balance of $7.1 million will be recognized over a future weighted-average period of 1.9 years subject to continued service with the Company. These acquisitions did not have a material impact on the Company’s condensed consolidated financial statements; therefore, historical and proforma disclosures have not been presented. |
Cash Equivalents and Short-Term
Cash Equivalents and Short-Term Investments | 6 Months Ended |
Jul. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash Equivalents and Short-Term Investments | Cash Equivalents and Short-Term Investments The amortized cost, unrealized gain (loss) and estimated fair value of the Company’s cash equivalents and short-term investments as of July 31, 2019 and January 31, 2019 were as follows (in thousands): As of July 31, 2019 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value (unaudited) Cash equivalents: Money market funds $ 116,155 $ — $ — $ 116,155 Corporate debt securities 4,999 — (1 ) 4,998 Total cash equivalents 121,154 — (1 ) 121,153 Short-term investments: U.S. treasury securities 204,210 189 (22 ) 204,377 Corporate debt securities 146,135 203 (3 ) 146,335 Total short-term investments 350,345 392 (25 ) 350,712 Total $ 471,499 $ 392 $ (26 ) $ 471,865 As of January 31, 2019 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Cash equivalents: Money market funds $ 247,426 $ — $ — $ 247,426 Corporate debt securities 3,409 — (1 ) 3,408 Total cash equivalents 250,835 — (1 ) 250,834 Short-term investments: U.S. treasury securities 195,913 37 (53 ) 195,897 Corporate debt securities 69,483 13 (19 ) 69,477 Total short-term investments 265,396 50 (72 ) 265,374 Total $ 516,231 $ 50 $ (73 ) $ 516,208 All short-term investments were designated as available-for-sale securities as of July 31, 2019 and January 31, 2019 . The Company’s short-term investments as of July 31, 2019 and January 31, 2019 all mature within one year, as follows (in thousands): As of July 31, 2019 As of January 31, 2019 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value (unaudited) Due within one year $ 350,345 $ 350,712 $ 265,396 $ 265,374 The Company had 7 and 34 short-term investments in unrealized loss positions as of July 31, 2019 and January 31, 2019 , respectively. There were no material gross unrealized gains or losses from available-for-sale securities and no material realized gains or losses from available-for-sale securities that were reclassified out of accumulated other comprehensive income for the three and six months ended July 31, 2019 or 2018 . For available-for-sale debt securities that have unrealized losses, the Company evaluates whether (i) the Company has the intention to sell any of these investments and (ii) it is not more likely than not that the Company will be required to sell any of these available-for-sale debt securities before recovery of the entire amortized cost basis. Based on this evaluation, the Company determined that there were no other-than-temporary impairments associated with short-term investments as of July 31, 2019 and January 31, 2019 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jul. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company measures its financial assets at fair value each reporting period using a fair value hierarchy that prioritizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure as follows: Level 1-Valuations based on observable inputs that reflect quoted prices for identical assets or liabilities in active markets. Level 2-Valuations based on inputs that are directly or indirectly observable in the marketplace. Level 3-Valuations based on unobservable inputs that are supported by little or no market activity. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis using the above input categories (in thousands): As of July 31, 2019 Level 1 Level 2 Level 3 Total (unaudited) Assets: Cash equivalents: Money market funds $ 116,155 $ — $ — $ 116,155 Corporate debt securities — 4,998 — 4,998 Total cash equivalents 116,155 4,998 — 121,153 Short-term investments: U.S. treasury securities — 204,377 — 204,377 Corporate debt securities — 146,335 — 146,335 Total short-term investments — 350,712 — 350,712 Total cash equivalents and short-term investments $ 116,155 $ 355,710 $ — $ 471,865 As of January 31, 2019 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 247,426 $ — $ — $ 247,426 Corporate debt securities — 3,408 — 3,408 Total cash equivalents 247,426 3,408 — 250,834 Short-term investments: U.S. treasury securities — 195,897 — 195,897 Corporate debt securities — 69,477 — 69,477 Total short-term investments — 265,374 — 265,374 Total cash equivalents and short-term investments $ 247,426 $ 268,782 $ — $ 516,208 The carrying amounts of certain financial instruments, including cash held in banks, accounts receivable and accounts payable approximate fair value due to their short-term maturities and are excluded from the fair value table above. Fair Value Measurements of Other Financial Instruments The following table presents the carrying amounts and estimated fair values of our financial instruments that are not recorded at fair value on the condensed consolidated balance sheets (in thousands): As of July 31, 2019 Net Carrying Amount Before Unamortized Debt Issuance Costs Estimated Fair Value (unaudited) Convertible senior notes $ 285,696 $ 958,925 The difference between the principal amount of the 2023 Notes, $345.0 million , and the net carrying amount before unamortized debt issuance costs represents the unamortized debt discount (See Note 9 for additional details). The estimated fair value of the 2023 Notes, which are Level 2 financial instruments, was determined based on the quoted bid price of the convertible senior notes in an over-the-counter market on the last trading day of the reporting period. As of July 31, 2019 , the difference between the net carrying amount of the 2023 Notes and estimated fair value represents the equity conversion value premium the market assigned to the 2023 Notes. Based on the closing price of our common stock of $130.83 on July 31, 2019 , the if-converted value of the 2023 Notes exceeded the principal amount of $345.0 million . |
Deferred Commissions
Deferred Commissions | 6 Months Ended |
Jul. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Commissions | Deferred Commissions Sales commissions capitalized as contract costs totaled $11.6 million and $8.5 million in the three months ended July 31, 2019 and 2018 , respectively, and $21.4 million and $14.2 million in the six months ended July 31, 2019 and 2018 , respectively. Amortization of contract costs was $6.9 million and $5.0 million for the three months ended July 31, 2019 and 2018 , respectively, and $13.2 million and $9.6 million for the six months ended July 31, 2019 and 2018 , respectively. There was no impairment loss in relation to the costs capitalized. Deferred Revenue Deferred revenue, which is a contract liability, consists primarily of payments received in advance of revenue recognition under the Company’s contracts with customers and is recognized as the revenue recognition criteria are met. Subscription revenue recognized during the three months ended July 31, 2019 and 2018 that was included in the deferred revenue balances at the beginning of the respective periods was $113.1 million and $73.1 million , respectively , and $174.9 million and $114.3 million for the six months ended July 31, 2019 and 2018 , respectively. Professional services and other revenue recognized in the three and six months ended July 31, 2019 and 2018 from deferred revenue balances at the beginning of the respective periods was not material. Transaction Price Allocated to the Remaining Performance Obligations Transaction price allocated to the remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue for subscription contracts that have been invoiced and will be recognized as revenue in future periods. As of July 31, 2019 , total remaining noncancelable performance obligations under the Company’s subscription contracts with customers was approximately $913.6 million . Of this amount, the Company expects to recognize revenue of approximately $461.1 million , or 51% , over the next 12 months, with the balance to be recognized as revenue thereafter. Revenue from remaining performance obligations for professional services and other contracts as of July 31, 2019 was not material. Unbilled Receivables The Company receives payments from customers based on billing schedules as established in its contracts. Unbilled receivables and contract assets represent amounts for which the Company has recognized revenue in excess of billings pursuant to its revenue recognition policy. As of July 31, 2019 and January 31, 2019 , contract assets and unbilled receivables were $1.0 million and $1.5 million |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, net | 6 Months Ended |
Jul. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, net | Goodwill and Intangible Assets, net Goodwill As of July 31, 2019 and January 31, 2019 , goodwill was $48.0 million and $18.1 million , respectively. During the six months ended July 31, 2019 , the Company recorded $29.9 million of goodwill in connection with the Azuqua acquisition that was completed in March 2019. See Note 3 for further details. No goodwill impairments were recorded during the three and six months ended July 31, 2019 and 2018 . Intangible Assets, net Intangible assets consisted of the following (in thousands): As of July 31, 2019 Gross Accumulated Amortization Net (unaudited) Capitalized internal-use software costs $ 21,494 $ (12,342 ) $ 9,152 Purchased developed technology 28,800 (3,381 ) 25,419 Software licenses 1,023 (882 ) 141 $ 51,317 $ (16,605 ) $ 34,712 As of January 31, 2019 Gross Accumulated Amortization Net Capitalized internal-use software costs $ 19,838 $ (9,969 ) $ 9,869 Purchased developed technology 4,600 (833 ) 3,767 Software licenses 1,023 (763 ) 260 $ 25,461 $ (11,565 ) $ 13,896 The Company capitalized $1.2 million and $0.8 million of internal-use software costs in the three months ended July 31, 2019 and 2018 , respectively, and $1.7 million and $2.0 million of internal-use software costs in the six months ended July 31, 2019 and 2018 , respectively. Stock-based compensation expense included in the total amounts capitalized were immaterial. During the three months ended July 31, 2019 , in connection with an asset acquisition, the Company recorded $8.5 million of purchased developed technology with an estimated useful life of five years. During the six months ended July 31, 2019 , the Company recorded $24.2 million of purchased developed technology, of which $15.7 million related to the Azuqua acquisition (see Note 3 for further details). Intangible amortization expense was $3.0 million and $1.2 million for the three months ended July 31, 2019 and 2018 , respectively, and $5.1 million and $2.4 million for the six months ended July 31, 2019 and 2018 , respectively. |
Deferred Revenue and Performanc
Deferred Revenue and Performance Obligations | 6 Months Ended |
Jul. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Revenue and Performance Obligations | Deferred Commissions Sales commissions capitalized as contract costs totaled $11.6 million and $8.5 million in the three months ended July 31, 2019 and 2018 , respectively, and $21.4 million and $14.2 million in the six months ended July 31, 2019 and 2018 , respectively. Amortization of contract costs was $6.9 million and $5.0 million for the three months ended July 31, 2019 and 2018 , respectively, and $13.2 million and $9.6 million for the six months ended July 31, 2019 and 2018 , respectively. There was no impairment loss in relation to the costs capitalized. Deferred Revenue Deferred revenue, which is a contract liability, consists primarily of payments received in advance of revenue recognition under the Company’s contracts with customers and is recognized as the revenue recognition criteria are met. Subscription revenue recognized during the three months ended July 31, 2019 and 2018 that was included in the deferred revenue balances at the beginning of the respective periods was $113.1 million and $73.1 million , respectively , and $174.9 million and $114.3 million for the six months ended July 31, 2019 and 2018 , respectively. Professional services and other revenue recognized in the three and six months ended July 31, 2019 and 2018 from deferred revenue balances at the beginning of the respective periods was not material. Transaction Price Allocated to the Remaining Performance Obligations Transaction price allocated to the remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue for subscription contracts that have been invoiced and will be recognized as revenue in future periods. As of July 31, 2019 , total remaining noncancelable performance obligations under the Company’s subscription contracts with customers was approximately $913.6 million . Of this amount, the Company expects to recognize revenue of approximately $461.1 million , or 51% , over the next 12 months, with the balance to be recognized as revenue thereafter. Revenue from remaining performance obligations for professional services and other contracts as of July 31, 2019 was not material. Unbilled Receivables The Company receives payments from customers based on billing schedules as established in its contracts. Unbilled receivables and contract assets represent amounts for which the Company has recognized revenue in excess of billings pursuant to its revenue recognition policy. As of July 31, 2019 and January 31, 2019 , contract assets and unbilled receivables were $1.0 million and $1.5 million |
Convertible Senior Notes, Net
Convertible Senior Notes, Net | 6 Months Ended |
Jul. 31, 2019 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes, Net | Convertible Senior Notes, Net Convertible Senior Notes The 2023 Notes are senior, unsecured obligations of the Company, and bear interest at a fixed rate of 0.25% per year. Interest is payable in cash semi-annually in arrears on February 15 and August 15 of each year, beginning on August 15, 2018. The 2023 Notes mature on February 15, 2023 unless earlier repurchased or converted. The Company may not redeem the 2023 Notes prior to maturity. The total net proceeds from the 2023 Notes, after deducting initial purchasers’ discounts and debt issuance costs, was approximately $335.0 million . The terms of the 2023 Notes are governed by an Indenture by and between the Company and Wilmington Trust, National Association, as Trustee (the Indenture). Upon conversion, the 2023 Notes may be settled in cash, shares of Class A common stock or a combination of cash and shares of Class A common stock, at the Company’s election. It is the Company’s current intent to settle the principal amount of the 2023 Notes with cash. The 2023 Notes are convertible at an initial conversion rate of 20.6795 shares of Class A common stock per $1,000 principal amount of 2023 Notes, which is equal to an initial conversion price of approximately $48.36 per share of Class A common stock, subject to adjustment under certain circumstances in accordance with the terms of the Indenture. Prior to the close of business on the business day immediately preceding October 15, 2022, holders of the 2023 Notes may convert all or a portion of their 2023 Notes only in multiples of $1,000 principal amount, under the following circumstances: • during any fiscal quarter commencing after the fiscal quarter ending on April 30, 2018 (and only during such fiscal quarter), if the last reported sale price of Class A common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price of the 2023 Notes on each applicable trading day; • during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the 2023 Notes for each trading day of that five consecutive trading day period was less than 98% of the product of the last reported sale price of Class A common stock and the conversion rate on such trading day; or • upon the occurrence of specified corporate events, as described in the Indenture. On or after October 15, 2022 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their 2023 Notes regardless of the foregoing circumstances. For at least twenty trading days during the period of thirty consecutive trading days ended July 31, 2019 , the last reported sale price of the Company’s common stock was equal to or exceeded 130% of the conversion price of the 2023 Notes on each applicable trading day. As a result, the 2023 Notes are convertible at the option of the holders during the fiscal quarter ending October 31, 2019 and were classified as current liabilities on the condensed consolidated balance sheet as of July 31, 2019 . During the three months ended July 31, 2019 , the Company received a request to convert an immaterial amount of 2023 Notes. Holders of the 2023 Notes who convert their 2023 Notes in connection with certain corporate events that constitute a make-whole fundamental change (as defined in the Indenture) are, under certain circumstances, entitled to an increase in the conversion rate. Additionally, in the event of a corporate event that constitutes a fundamental change (as defined in the Indenture), holders of the 2023 Notes may require the Company to repurchase all or a portion of their 2023 Notes at a price equal to 100% of the principal amount of the 2023 Notes being repurchased, plus any accrued and unpaid interest. In accounting for the issuance of the 2023 Notes, the Company separated the 2023 Notes into liability and equity components. The carrying amounts of the liability components were calculated by measuring the fair value of similar liabilities that do not have associated convertible features. The carrying amount of the equity components representing the conversion option were determined by deducting the fair value of the liability component from the par value of the 2023 Notes. The Company bifurcated the conversion option of the 2023 Notes from the debt instrument, classified the conversion option in equity and will accrete the resulting debt discount as interest expense over the contractual term of the 2023 Notes using the effective interest rate method. The equity component is not remeasured as long as the Notes continue to meet the conditions for equity classification. The effective interest rate of the liability component of the 2023 Notes is 5.68% . This interest rate was based on the interest rates of similar liabilities held by other companies with similar credit risk ratings at the time of issuance that did not have associated convertible features. The following table sets forth total interest expense recognized related to the 2023 Notes (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2019 2018 2019 2018 (unaudited) Contractual interest expense $ 215 $ 216 $ 431 $ 362 Amortization of debt issuance costs 329 288 648 478 Amortization of debt discount 3,759 3,554 7,465 5,935 Total $ 4,303 $ 4,058 $ 8,544 $ 6,775 Total issuance costs of $10.0 million related to the 2023 Notes were allocated between liability and equity in the same proportion as the allocation of the total proceeds to the liability and equity components. Issuance costs attributable to the liability component are being amortized to interest expense over the respective term of the 2023 Notes using the effective interest rate method. The issuance costs attributable to the equity component were netted against the respective equity component in Additional paid-in capital. The Company recorded liability issuance costs of $7.7 million and equity issuance costs of $2.3 million . The 2023 Notes, net consisted of the following (in thousands): As of July 31, 2019 (unaudited) Liability component: Principal $ 345,000 Less: unamortized debt issuance costs and debt discount (65,259 ) Net carrying amount $ 279,741 At Issuance Equity component: 2023 Notes $ 79,962 Less: issuance costs (2,320 ) Carrying amount of the equity component (1) $ 77,642 (1) Included in the condensed consolidated balance sheets within Additional paid-in capital. Note Hedges In connection with the pricing of the 2023 Notes, the Company entered into convertible note hedge transactions with respect to its Class A common stock (the Note Hedges). The Note Hedges are purchased call options that give the Company the option to purchase, subject to anti-dilution adjustments substantially identical to those in the 2023 Notes, approximately 7.1 million shares of its Class A common stock for $48.36 per share (subject to adjustment), corresponding to the approximate initial conversion price of the 2023 Notes, exercisable upon conversion of the 2023 Notes. The Note Hedges will expire in 2023, if not exercised earlier. The Note Hedges are intended to offset potential dilution to the Company’s Class A common stock and/or offset the potential cash payments that the Company could be required to make in excess of the principal amount upon any conversion of the 2023 Notes under certain circumstances. The Note Hedges are separate transactions and are not part of the terms of the 2023 Notes. The Company paid an aggregate amount of $80.0 million for the Note Hedges. The amount paid for the Note Hedges was recorded as a reduction to Additional paid-in capital in the condensed consolidated balance sheets. Warrants In connection with the issuance of the 2023 Notes, the Company also entered into separate warrant transactions pursuant to which it sold net-share-settled (or, at the Company’s election subject to certain conditions, cash-settled) warrants (the Warrants) to acquire, subject to anti-dilution adjustments, up to approximately 7.1 million shares over 80 scheduled trading days beginning in May 2023 of the Company’s Class A common stock at an initial exercise price of $68.06 per share (subject to adjustment). If the Warrants are not exercised on their exercise dates, they will expire. If the market value per share of the Company’s Class A common stock exceeds the applicable exercise price of the Warrants, the Warrants could have a dilutive effect on the Company’s Class A common stock unless, subject to the terms of the Warrants, the Company elects to cash settle the Warrants. The Warrants are separate transactions and are not part of the terms of the 2023 Notes or the Note Hedges. The Company received aggregate proceeds of $52.4 million from the sale of the Warrants in connection with the 2023 Notes. The proceeds from the sale of the Warrants was recorded as an increase to Additional paid-in capital in the condensed consolidated balance sheets. |
Leases
Leases | 6 Months Ended |
Jul. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company has entered into various non-cancelable office space operating leases with original lease periods expiring between 2020 and 2028. These do not contain material variable rent payments, residual value guarantees, covenants or other restrictions. The Company has various sublease agreements with third parties. The subleases have remaining lease terms of between one and five years. Sublease income, which is recorded as a reduction of rental expense, was $0.7 million and $1.4 million for the three and six months ended July 31, 2019 . Operating lease costs for the three and six months ended July 31, 2019 and 2018 , are as follows (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2019 2018 2019 2018 (unaudited) Operating lease cost (1) $ 5,620 $ 5,807 $ 11,083 $ 9,241 (1) Amounts are presented gross of sublease income and include short-term leases, which are immaterial. The weighted-average remaining term of the Company’s operating leases was 8.4 and 8.9 years and the weighted-average discount rate used to measure the present value of the operating lease liabilities was 5.9% for each period as of July 31, 2019 and January 31, 2019 , respectively. Maturities of the Company’s operating lease liabilities, which do not include short-term leases, as of July 31, 2019 are as follows (in thousands): Operating Leases (unaudited) 2020 $ 12,157 2021 24,504 2022 24,189 2023 23,765 2024 24,252 Thereafter 95,733 Total lease payments 204,600 Less imputed interest (45,310 ) Total operating lease liabilities $ 159,290 Cash payments included in the measurement of the Company’s operating lease liabilities were $ 2.4 million and $ 3.1 million for the three months ended July 31, 2019 and 2018 , respectively, and $4.8 million and $6.1 million for the six months ended July 31, 2019 and 2018 , respectively. As of July 31, 2019 , the Company has $ 35.6 million of undiscounted future payments under an operating lease that has not yet commenced, which is excluded from the table above. This operating lease will commence in fiscal 2021 and has a lease term of 8.7 years. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Letters of Credit In conjunction with the execution of leases, letters of credit in the aggregate amount of $11.7 million and $12.7 million were issued and outstanding as of July 31, 2019 and January 31, 2019 , respectively. No draws have been made under such letters of credit. Legal Matters From time to time in the normal course of business, the Company may be subject to various legal matters such as threatened or pending claims or proceedings. There were no such material matters as of July 31, 2019 . |
Employee Incentive Plans
Employee Incentive Plans | 6 Months Ended |
Jul. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Employee Incentive Plans | Employee Incentive Plans The Company’s equity incentive plans provide for granting stock options, restricted stock units (RSUs) and restricted stock awards to employees, consultants, officers and directors. In addition, the Company offers an Employee Stock Purchase Plan (ESPP) to eligible employees. Stock-based compensation expense was recorded in the following cost and expense categories in the Company’s condensed consolidated statements of operations (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2019 2018 2019 2018 (unaudited) Cost of revenue Subscription $ 3,111 $ 1,901 $ 5,533 $ 3,430 Professional services and other 1,873 1,083 3,392 1,972 Research and development 9,082 5,272 15,428 9,485 Sales and marketing 9,236 5,471 16,022 9,624 General and administrative 7,972 4,495 13,584 7,846 Total $ 31,274 $ 18,222 $ 53,959 $ 32,357 Stock-based compensation expense recorded to research and development in the condensed consolidated statements of operations excludes amounts that were capitalized related to internal-use software for the three and six months ended July 31, 2019 and 2018 . See Note 7 for further details. Equity Incentive Plans The Company has two equity incentive plans: the 2009 Stock Plan (2009 Plan) and the 2017 Equity Incentive Plan (2017 Plan). All shares that remain available for future grants are under the 2017 Plan. As of July 31, 2019 , options to purchase 13,442,997 shares of Class B common stock and 1,144,327 shares of Class A common stock remain outstanding. Shares of common stock reserved for future issuance are as follows: As of July 31, 2019 (unaudited) Stock options and unvested RSUs outstanding 19,988,414 Available for future stock option and RSU grants 16,501,443 Available for ESPP 3,778,949 40,268,806 Stock Options A summary of the Company’s stock option activity and related information is as follows: Number of Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Outstanding as of January 31, 2019 17,803,794 $ 9.16 7.1 $ 1,304,446 Granted 412,360 82.16 Exercised (3,376,704 ) 8.13 Canceled (252,126 ) 11.67 Outstanding as of July 31, 2019 (unaudited) 14,587,324 $ 11.42 6.6 $ 1,741,854 As of July 31, 2019 Vested and exercisable (unaudited) 9,195,820 $ 7.87 6.1 $ 1,130,712 As of July 31, 2019 , there was a total of $39.4 million of unrecognized stock-based compensation expense, which is expected to be recognized over a weighted-average period of 1.8 years. Restricted Stock Units A summary of the Company’s RSU activity and related information is as follows: Number of Weighted- Outstanding as of January 31, 2019 4,835,536 $ 44.49 Granted 1,895,182 115.86 Vested (1,016,224 ) 43.60 Forfeited (313,404 ) 45.44 Outstanding as of July 31, 2019 (unaudited) 5,401,090 $ 69.65 As of July 31, 2019 , there was $353.1 million of unrecognized stock-based compensation expense related to unvested RSUs, which is expected to be recognized over a weighted-average period of 3.0 years based on vesting under the award service conditions. Employee Stock Purchase Plan Except for the initial offering period which began April 7, 2017 and ended on June 20, 2018, the ESPP provides for 12-month offering periods beginning June 21 and December 21 of each year, and each offering period consists of up to two six-month purchase periods. The Company estimated the fair value of ESPP purchase rights using a Black-Scholes option pricing model with the following assumptions: Three Months Ended July 31, Six Months Ended July 31, 2019 2018 2019 2018 (unaudited) Expected volatility 43% - 59% 39% - 40% 43% - 59% 39% - 40% Expected term (in years) 0.5 - 1.0 0.5 - 1.0 0.5 - 1.0 0.5 - 1.0 Risk-free interest rate 2.05% - 1.95% 2.12% - 2.34% 2.05% - 1.95% 2.12% - 2.34% Expected dividend yield — — — — During the three and six months ended July 31, 2019 , the Company’s employees purchased 197,703 shares of its Class A common stock under the ESPP. The shares were purchased at a weighted-average purchase price of $45.55 per share, with total proceeds of $9.0 million. As of July 31, 2019 , there was $8.3 million of unrecognized stock-based compensation expense related to the ESPP that is expected to be recognized over an average vesting period of 0.9 years. |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three and six months ended July 31, 2019 , the Company recorded a tax benefit of $1.5 million and $2.6 million , respectively, on pretax losses of $44.5 million and $97.6 million , respectively. The effective tax rate for the three and six months ended July 31, 2019 was 3.3% and 2.7% , respectively. The effective tax rate differs from the statutory rate primarily as a result of not recognizing deferred tax assets for U.S. losses due to a full valuation allowance against U.S. deferred tax assets, release of the valuation allowance in the United States in connection with the Azuqua acquisition and excess tax benefits from stock-based compensation in the United Kingdom. These tax benefits were partially offset by income tax expense in profitable foreign jurisdictions and U.S. state taxes. For the three and six months ended July 31, 2018 , the Company recorded a tax benefit of $1.0 million and $1.2 million , respectively, on pretax losses of $40.2 million and $66.4 million , respectively. The effective tax rate for the three and six months ended July 31, 2018 was 2.5% and 1.8% , respectively. The effective tax rate differs from the statutory rate primarily as a result of not recognizing a deferred tax asset for U.S. losses due to having a full valuation allowance against U.S. deferred tax assets, release of the valuation allowance in the United States in connection with the ScaleFT acquisition and excess tax benefits from stock-based compensation in the United Kingdom. These tax benefits were partially offset by income tax expense in profitable foreign jurisdictions and U.S. state taxes. |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Jul. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share data): 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 (unaudited) Numerator: Net loss $ (39,250 ) $ (3,730 ) $ (33,862 ) $ (5,345 ) $ (86,516 ) $ (8,430 ) $ (53,242 ) $ (11,927 ) Denominator: Weighted-average shares outstanding - basic and diluted 105,049 9,984 92,156 14,546 103,917 10,125 86,172 19,303 Net loss per share, basic and diluted $ (0.37 ) $ (0.37 ) $ (0.37 ) $ (0.37 ) $ (0.83 ) $ (0.83 ) $ (0.62 ) $ (0.62 ) As the Company was in a loss position for all periods presented, basic net loss per share is the same as diluted net loss per share as the inclusion of all potential common shares outstanding would have been anti-dilutive. Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows (in thousands): As of July 31, 2019 2018 (unaudited) Unvested restricted common stock issued and outstanding — 400 Stock options issued and outstanding 14,587 20,898 Unvested RSUs issued and outstanding 5,401 4,891 Unvested restricted stock awards issued and outstanding 177 388 Shares related to convertible senior notes 7,134 7,134 Shares subject to warrants related to the issuance of convertible senior notes 7,134 — Shares committed under the ESPP 215 360 Unvested shares subject to repurchase 14 96 34,662 34,167 The Company expects to settle the principal amount of the 2023 Notes in cash, and therefore, the Company uses the treasury stock method for calculating any potential dilutive effect of the conversion option on diluted net income per share, if applicable. The conversion option of the 2023 Notes and exercise rights of the Warrants will have a dilutive impact on net income per share of common stock when the average market price per share of the Company’s Class A common stock for a given period exceeds the conversion price of the 2023 Notes of $48.36 per share and exercise price of the Warrants of $68.06 per share, respectively. During the three months ended July 31, 2019 , the weighted average price per share of the Company’s Class A common stock exceeded the conversion price of the 2023 Notes and exercise price of the Warrants; however, since the Company is in a net loss position there was no dilutive effect during any period presented. |
Accounting Standards and Sign_2
Accounting Standards and Significant Accounting Policies (Policies) | 6 Months Ended |
Jul. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited condensed consolidated financial statements, which include the accounts of the Company and its wholly owned subsidiaries, have been prepared in conformity with U.S. generally accepted accounting principles (GAAP). |
Principles of Consolidation | All intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated balance sheet as of January 31, 2019 , included herein, was derived from the audited financial statements as of that date. The unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the results of operations for the interim periods presented, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year ending January 31, 2020 |
Fiscal Period | The Company’s fiscal year ends on January 31. References to fiscal 2020 , for example, refer to the fiscal year ending January 31, 2020 |
Reclassifications | Certain reclassifications of prior period amounts have been made in our condensed consolidated financial statements to conform to the current period presentation. |
Use of Estimates | The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, 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. The Company bases its estimates on historical experience and on other assumptions that its management believes are reasonable under the circumstances. Actual results could vary from those estimates. The Company’s most significant estimates include the stand alone selling price (SSP) for each distinct performance obligation included in customer contracts with multiple performance obligations, the determination of the period of benefit for deferred commissions, the determination of the effective interest rate of the liability components of the 2023 Notes, the determination of the incremental borrowing rate used for operating lease liabilities, the valuation of deferred income tax assets, contingencies and the valuation of acquired intangible assets. |
Operating Leases and Incremental Borrowing Rate | The Company leases office space under operating leases with expiration dates through 2028. The Company determines whether an arrangement constitutes a lease and records lease liabilities and right-of-use assets on its consolidated balance sheets at lease commencement. Lease liabilities are measured based on the present value of the total lease payments not yet paid discounted based on the more readily determinable of the rate implicit in the lease or the Company’s incremental borrowing rate, which is the estimated rate the Company would be required to pay for a collateralized borrowing equal to the total lease payments over the term of the lease. The estimation of the incremental borrowing rate is based on an analysis of publicly traded debt securities of companies with similar credit and financial profiles. Right-of-use assets are measured based on the corresponding lease liability adjusted for (i) payments made to the lessor at or before the commencement date, (ii) initial direct costs incurred and (iii) tenant incentives under the lease. Recognition of rent expense begins when the lessor makes the underlying asset available to the Company. The Company does not assume renewals or early terminations of its leases unless it is reasonably certain to exercise these options at commencement and does not allocate consideration between lease and non-lease components. For short-term leases, the Company records rent expense in its condensed consolidated statements of operations on a straight-line basis over the lease term and records variable lease payments as incurred. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements Not Yet Adopted | In February 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-02, Leases (ASC 842) , which requires lessees to record a right-of-use asset and a corresponding lease liability on their balance sheet for most leases. The Company adopted the requirements of ASC 842 as of February 1, 2019, using the modified retrospective method for leases that existed as of February 1, 2017, or were entered into thereafter. The modified retrospective method provides a method for recording existing leases at adoption and in comparative periods that approximates the results of a full retrospective approach. In order to simplify an entity’s transition, ASC 842 provides a package of three practical expedients, which must be elected together and applied consistently to all of an entity’s leases. The Company elected to utilize the package of practical expedients and, therefore, did not reassess: • whether contractual arrangements that expired prior to or existed as of February 1, 2017, are or contain leases, • the classification of leases that expired prior to or existed as of February 1, 2017, and • initial direct costs for leases that existed as of February 1, 2017. As of the later of February 1, 2017 or each lease’s respective commencement date, the Company recorded lease liabilities equal to the present value of the remaining minimum lease payments and right-of-use assets equal to the corresponding lease liability adjusted for (i) any prepaid or accrued lease payments, (ii) the remaining balance of any lease incentives received, (iii) unamortized initial direct costs and (iv) any impairments. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments, which changes the impairment model for most financial assets. The new model uses a forward-looking expected loss method, which will generally result in earlier recognition of allowances for losses. This guidance is effective for the Company on February 1, 2020 with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (ASU 2018-15), which requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in Accounting Standards Codification 350-40 to determine which implementation costs to defer and recognize as an asset. This guidance is effective for the Company on February 1, 2020 with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its condensed consolidated financial statements. |
Accounting Standards and Sign_3
Accounting Standards and Significant Accounting Policies (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Impact of New Accounting Pronouncements | Select condensed consolidated balance sheet line items, which reflect the adoption of ASC 842, are as follows (in thousands): As of January 31, 2019 As Reported Adoption of ASC 842 As Adjusted (unaudited) Assets Current assets: Prepaid expenses and other current assets $ 29,451 $ (1,214 ) $ 28,237 Total current assets 709,330 (1,214 ) 708,116 Operating lease right-of-use assets — 121,389 121,389 Other noncurrent assets 15,286 (197 ) 15,089 Total assets $ 864,335 $ 119,978 $ 984,313 Liabilities and stockholders’ equity Current liabilities: Accrued expenses and other liabilities $ 24,740 $ 8,913 $ 33,653 Total current liabilities 564,191 8,913 573,104 Other noncurrent liabilities 38,999 (35,981 ) 3,018 Operating lease liabilities, noncurrent — 147,046 147,046 Total liabilities 611,958 119,978 731,936 Total liabilities and stockholders’ equity $ 864,335 $ 119,978 $ 984,313 |
Cash Equivalents and Short-Te_2
Cash Equivalents and Short-Term Investments (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Costs, Unrealized Gains and Losses and Estimated Fair Value of Cash Equivalents and Short-term Investments | The amortized cost, unrealized gain (loss) and estimated fair value of the Company’s cash equivalents and short-term investments as of July 31, 2019 and January 31, 2019 were as follows (in thousands): As of July 31, 2019 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value (unaudited) Cash equivalents: Money market funds $ 116,155 $ — $ — $ 116,155 Corporate debt securities 4,999 — (1 ) 4,998 Total cash equivalents 121,154 — (1 ) 121,153 Short-term investments: U.S. treasury securities 204,210 189 (22 ) 204,377 Corporate debt securities 146,135 203 (3 ) 146,335 Total short-term investments 350,345 392 (25 ) 350,712 Total $ 471,499 $ 392 $ (26 ) $ 471,865 As of January 31, 2019 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Cash equivalents: Money market funds $ 247,426 $ — $ — $ 247,426 Corporate debt securities 3,409 — (1 ) 3,408 Total cash equivalents 250,835 — (1 ) 250,834 Short-term investments: U.S. treasury securities 195,913 37 (53 ) 195,897 Corporate debt securities 69,483 13 (19 ) 69,477 Total short-term investments 265,396 50 (72 ) 265,374 Total $ 516,231 $ 50 $ (73 ) $ 516,208 |
Schedule of Contractual Maturities of Short-term Investments | The Company’s short-term investments as of July 31, 2019 and January 31, 2019 all mature within one year, as follows (in thousands): As of July 31, 2019 As of January 31, 2019 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value (unaudited) Due within one year $ 350,345 $ 350,712 $ 265,396 $ 265,374 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis using the above input categories (in thousands): As of July 31, 2019 Level 1 Level 2 Level 3 Total (unaudited) Assets: Cash equivalents: Money market funds $ 116,155 $ — $ — $ 116,155 Corporate debt securities — 4,998 — 4,998 Total cash equivalents 116,155 4,998 — 121,153 Short-term investments: U.S. treasury securities — 204,377 — 204,377 Corporate debt securities — 146,335 — 146,335 Total short-term investments — 350,712 — 350,712 Total cash equivalents and short-term investments $ 116,155 $ 355,710 $ — $ 471,865 As of January 31, 2019 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 247,426 $ — $ — $ 247,426 Corporate debt securities — 3,408 — 3,408 Total cash equivalents 247,426 3,408 — 250,834 Short-term investments: U.S. treasury securities — 195,897 — 195,897 Corporate debt securities — 69,477 — 69,477 Total short-term investments — 265,374 — 265,374 Total cash equivalents and short-term investments $ 247,426 $ 268,782 $ — $ 516,208 |
Schedule of Carrying Amounts and Estimated Fair Values of Convertible Note | The following table presents the carrying amounts and estimated fair values of our financial instruments that are not recorded at fair value on the condensed consolidated balance sheets (in thousands): As of July 31, 2019 Net Carrying Amount Before Unamortized Debt Issuance Costs Estimated Fair Value (unaudited) Convertible senior notes $ 285,696 $ 958,925 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, net (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, net | Intangible assets consisted of the following (in thousands): As of July 31, 2019 Gross Accumulated Amortization Net (unaudited) Capitalized internal-use software costs $ 21,494 $ (12,342 ) $ 9,152 Purchased developed technology 28,800 (3,381 ) 25,419 Software licenses 1,023 (882 ) 141 $ 51,317 $ (16,605 ) $ 34,712 As of January 31, 2019 Gross Accumulated Amortization Net Capitalized internal-use software costs $ 19,838 $ (9,969 ) $ 9,869 Purchased developed technology 4,600 (833 ) 3,767 Software licenses 1,023 (763 ) 260 $ 25,461 $ (11,565 ) $ 13,896 |
Convertible Senior Notes, Net (
Convertible Senior Notes, Net (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Interest Expense | The following table sets forth total interest expense recognized related to the 2023 Notes (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2019 2018 2019 2018 (unaudited) Contractual interest expense $ 215 $ 216 $ 431 $ 362 Amortization of debt issuance costs 329 288 648 478 Amortization of debt discount 3,759 3,554 7,465 5,935 Total $ 4,303 $ 4,058 $ 8,544 $ 6,775 |
Schedule of Liability and Equity Component of 2023 Notes | The 2023 Notes, net consisted of the following (in thousands): As of July 31, 2019 (unaudited) Liability component: Principal $ 345,000 Less: unamortized debt issuance costs and debt discount (65,259 ) Net carrying amount $ 279,741 At Issuance Equity component: 2023 Notes $ 79,962 Less: issuance costs (2,320 ) Carrying amount of the equity component (1) $ 77,642 (1) Included in the condensed consolidated balance sheets within Additional paid-in capital. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Leases [Abstract] | |
Schedule of Operating Lease Costs | Operating lease costs for the three and six months ended July 31, 2019 and 2018 , are as follows (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2019 2018 2019 2018 (unaudited) Operating lease cost (1) $ 5,620 $ 5,807 $ 11,083 $ 9,241 (1) Amounts are presented gross of sublease income and include short-term leases, which are immaterial. |
Schedule of Maturities of Operating Leases | Maturities of the Company’s operating lease liabilities, which do not include short-term leases, as of July 31, 2019 are as follows (in thousands): Operating Leases (unaudited) 2020 $ 12,157 2021 24,504 2022 24,189 2023 23,765 2024 24,252 Thereafter 95,733 Total lease payments 204,600 Less imputed interest (45,310 ) Total operating lease liabilities $ 159,290 |
Employee Incentive Plans (Table
Employee Incentive Plans (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock-based Compensation Expense by Statement of Operations Location | Stock-based compensation expense was recorded in the following cost and expense categories in the Company’s condensed consolidated statements of operations (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2019 2018 2019 2018 (unaudited) Cost of revenue Subscription $ 3,111 $ 1,901 $ 5,533 $ 3,430 Professional services and other 1,873 1,083 3,392 1,972 Research and development 9,082 5,272 15,428 9,485 Sales and marketing 9,236 5,471 16,022 9,624 General and administrative 7,972 4,495 13,584 7,846 Total $ 31,274 $ 18,222 $ 53,959 $ 32,357 |
Schedule of Shares of Common Stock Reserved for Future Issuance | Shares of common stock reserved for future issuance are as follows: As of July 31, 2019 (unaudited) Stock options and unvested RSUs outstanding 19,988,414 Available for future stock option and RSU grants 16,501,443 Available for ESPP 3,778,949 40,268,806 |
Schedule of Stock Option Activity | A summary of the Company’s stock option activity and related information is as follows: Number of Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Outstanding as of January 31, 2019 17,803,794 $ 9.16 7.1 $ 1,304,446 Granted 412,360 82.16 Exercised (3,376,704 ) 8.13 Canceled (252,126 ) 11.67 Outstanding as of July 31, 2019 (unaudited) 14,587,324 $ 11.42 6.6 $ 1,741,854 As of July 31, 2019 Vested and exercisable (unaudited) 9,195,820 $ 7.87 6.1 $ 1,130,712 |
Schedule of Nonvested Restricted Stock Units Activity | A summary of the Company’s RSU activity and related information is as follows: Number of Weighted- Outstanding as of January 31, 2019 4,835,536 $ 44.49 Granted 1,895,182 115.86 Vested (1,016,224 ) 43.60 Forfeited (313,404 ) 45.44 Outstanding as of July 31, 2019 (unaudited) 5,401,090 $ 69.65 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Loss Per Share | The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share data): 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 (unaudited) Numerator: Net loss $ (39,250 ) $ (3,730 ) $ (33,862 ) $ (5,345 ) $ (86,516 ) $ (8,430 ) $ (53,242 ) $ (11,927 ) Denominator: Weighted-average shares outstanding - basic and diluted 105,049 9,984 92,156 14,546 103,917 10,125 86,172 19,303 Net loss per share, basic and diluted $ (0.37 ) $ (0.37 ) $ (0.37 ) $ (0.37 ) $ (0.83 ) $ (0.83 ) $ (0.62 ) $ (0.62 ) |
Schedule of Potentially Dilutive Securities Excluded from Diluted Per Share Calculation | Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows (in thousands): As of July 31, 2019 2018 (unaudited) Unvested restricted common stock issued and outstanding — 400 Stock options issued and outstanding 14,587 20,898 Unvested RSUs issued and outstanding 5,401 4,891 Unvested restricted stock awards issued and outstanding 177 388 Shares related to convertible senior notes 7,134 7,134 Shares subject to warrants related to the issuance of convertible senior notes 7,134 — Shares committed under the ESPP 215 360 Unvested shares subject to repurchase 14 96 34,662 34,167 |
Overview and Basis of Present_2
Overview and Basis of Presentation - Narrative (Details) - USD ($) | 1 Months Ended | |||
Feb. 28, 2018 | Jul. 31, 2019 | Jan. 31, 2019 | ||
Class of Stock [Line Items] | ||||
Increase in accrued expenses | $ 31,843,000 | $ 33,653,000 | [1] | |
Accounts payable | $ 3,492,000 | 2,431,000 | [1] | |
Convertible Senior Notes Due 2023 | Senior Notes | ||||
Class of Stock [Line Items] | ||||
Aggregate principal amount | $ 345,000,000 | |||
Fixed interest rate | 0.25% | |||
Gross proceeds from issuance of debt | $ 345,000,000 | |||
Issuance costs | $ 10,000,000 | |||
Accounting Standards Update 2016-02 | ||||
Class of Stock [Line Items] | ||||
Increase in accrued expenses | $ 14,800,000 | |||
[1] | Adjusted for adoption of ASC 842, Leases. See Note 2. |
Accounting Standards and Sign_4
Accounting Standards and Significant Accounting Policies - Schedule of Impact of New Accounting Pronouncements (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 | |
Current assets: | |||
Prepaid expenses and other current assets | $ 24,642 | $ 28,237 | [1] |
Total current assets | 697,020 | 708,116 | [1] |
Operating lease right-of-use assets | 116,706 | 121,389 | [1] |
Other noncurrent assets | 18,990 | 15,089 | [1] |
Total assets | 1,026,810 | 984,313 | [1] |
Current liabilities: | |||
Accrued expenses and other current liabilities | 31,843 | 33,653 | [1] |
Total current liabilities | 620,669 | 573,104 | [1] |
Other noncurrent liabilities | 4,241 | 3,018 | [1] |
Operating lease liabilities, noncurrent | 143,706 | 147,046 | [1] |
Total liabilities | 776,085 | 731,936 | [1] |
Total liabilities and stockholders’ equity | $ 1,026,810 | 984,313 | [1] |
Accounting Standards Update 2016-02 | |||
Current liabilities: | |||
Accrued expenses and other current liabilities | 14,800 | ||
As Reported | |||
Current assets: | |||
Prepaid expenses and other current assets | 29,451 | ||
Total current assets | 709,330 | ||
Operating lease right-of-use assets | 0 | ||
Other noncurrent assets | 15,286 | ||
Total assets | 864,335 | ||
Current liabilities: | |||
Accrued expenses and other current liabilities | 24,740 | ||
Total current liabilities | 564,191 | ||
Other noncurrent liabilities | 38,999 | ||
Operating lease liabilities, noncurrent | 0 | ||
Total liabilities | 611,958 | ||
Total liabilities and stockholders’ equity | 864,335 | ||
Adoption of ASC 842 | Accounting Standards Update 2016-02 | |||
Current assets: | |||
Prepaid expenses and other current assets | (1,214) | ||
Total current assets | (1,214) | ||
Operating lease right-of-use assets | 121,389 | ||
Other noncurrent assets | (197) | ||
Total assets | 119,978 | ||
Current liabilities: | |||
Accrued expenses and other current liabilities | 8,913 | ||
Total current liabilities | 8,913 | ||
Other noncurrent liabilities | (35,981) | ||
Operating lease liabilities, noncurrent | 147,046 | ||
Total liabilities | 119,978 | ||
Total liabilities and stockholders’ equity | $ 119,978 | ||
[1] | Adjusted for adoption of ASC 842, Leases. See Note 2. |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) $ in Thousands | Mar. 18, 2019 | Jul. 13, 2018 | Apr. 30, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | [1] | Jan. 31, 2019 | [2] |
Business Acquisition [Line Items] | |||||||||
Payments for business acquisition, net of cash acquired | $ 44,223 | $ 15,638 | |||||||
Purchased developed technology | 24,200 | ||||||||
Goodwill | 47,964 | $ 18,089 | |||||||
ScaleFT, Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Payments for business acquisition, net of cash acquired | $ 15,600 | ||||||||
Cash acquired from acquisition | 600 | ||||||||
Goodwill | 11,800 | ||||||||
Acquisition related costs | $ 1,100 | ||||||||
ScaleFT, Inc. | Purchased developed technology | |||||||||
Business Acquisition [Line Items] | |||||||||
Purchased developed technology | $ 4,600 | ||||||||
Useful life of acquired intangible assets | 3 years | ||||||||
Azuqua, Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Payments for business acquisition, net of cash acquired | $ 44,200 | ||||||||
Cash acquired from acquisition | 1,100 | ||||||||
Purchased developed technology | 15,700 | ||||||||
Goodwill | 29,900 | ||||||||
Acquisition related costs | $ 3,000 | ||||||||
Azuqua, Inc. | Purchased developed technology | |||||||||
Business Acquisition [Line Items] | |||||||||
Purchased developed technology | $ 15,700 | ||||||||
Useful life of acquired intangible assets | 5 years | ||||||||
ScaleFT, Inc And Azuqua, Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Deferred compensation liability | 10,800 | ||||||||
Compensation Expense | 2,100 | ||||||||
Remaining balance of noncurrent deferred compensation liability | $ 7,100 | ||||||||
Period of recognition of deferred compensation | 1 year 10 months 24 days | ||||||||
[1] | Adjusted for adoption of ASC 842, Leases. See Note 2. | ||||||||
[2] | Adjusted for adoption of ASC 842, Leases. See Note 2. |
Cash Equivalents and Short-Te_3
Cash Equivalents and Short-Term Investments - Schedule of Amortized Costs, Unrealized Gains and Losses and Estimated Fair Value of Cash Equivalents and Short-term Investments (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Cash Equivalents and Short-term Investments [Abstract] | ||
Amortized Cost | $ 471,499 | $ 516,231 |
Unrealized Gain | 392 | 50 |
Unrealized Loss | (26) | (73) |
Estimated Fair Value | 471,865 | 516,208 |
U.S. treasury securities | ||
Cash Equivalents and Short-term Investments [Abstract] | ||
Amortized Cost | 204,210 | 195,913 |
Unrealized Gain | 189 | 37 |
Unrealized Loss | (22) | (53) |
Estimated Fair Value | 204,377 | 195,897 |
Corporate debt securities | ||
Cash Equivalents and Short-term Investments [Abstract] | ||
Amortized Cost | 146,135 | 69,483 |
Unrealized Gain | 203 | 13 |
Unrealized Loss | (3) | (19) |
Estimated Fair Value | 146,335 | 69,477 |
Cash Equivalents | ||
Cash Equivalents and Short-term Investments [Abstract] | ||
Amortized Cost | 121,154 | 250,835 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | (1) | (1) |
Estimated Fair Value | 121,153 | 250,834 |
Cash Equivalents | Money market funds | ||
Cash Equivalents and Short-term Investments [Abstract] | ||
Amortized Cost | 116,155 | 247,426 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Estimated Fair Value | 116,155 | 247,426 |
Cash Equivalents | Corporate debt securities | ||
Cash Equivalents and Short-term Investments [Abstract] | ||
Amortized Cost | 4,999 | 3,409 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | (1) | (1) |
Estimated Fair Value | 4,998 | 3,408 |
Short-term Investments [Member] | ||
Cash Equivalents and Short-term Investments [Abstract] | ||
Amortized Cost | 350,345 | 265,396 |
Unrealized Gain | 392 | 50 |
Unrealized Loss | (25) | (72) |
Estimated Fair Value | $ 350,712 | $ 265,374 |
Cash Equivalents and Short-Te_4
Cash Equivalents and Short-Term Investments - Schedule of Contractual Maturities of Short-term Investments (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Amortized Cost | ||
Amortized cost, due within one year | $ 350,345 | $ 265,396 |
Estimated Fair Value | ||
Estimated fair value, due within one year | $ 350,712 | $ 265,374 |
Cash Equivalents and Short-Te_5
Cash Equivalents and Short-Term Investments - Narrative (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jul. 31, 2018USD ($) | Jul. 31, 2019USD ($)investment | Jan. 31, 2019USD ($)investment | |
Investments, Debt and Equity Securities [Abstract] | |||
Number of short-term investments in unrealized loss positions | investment | 7 | 34 | |
Gross unrealized gains or losses from available-for-sale securities | $ 0 | $ 0 | |
Realized gains or losses reclassified out of accumulated other comprehensive income | $ 0 | 0 | |
Other-than-temporary impairment short term investment | $ 0 | $ 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Assets: | ||
Cash equivalents, fair value | $ 121,153 | $ 250,834 |
Short term investments, fair value | 350,712 | 265,374 |
Total cash equivalents and short-term investments | 471,865 | 516,208 |
U.S. treasury securities | ||
Assets: | ||
Short term investments, fair value | 204,377 | 195,897 |
Corporate debt securities | ||
Assets: | ||
Short term investments, fair value | 146,335 | 69,477 |
Money market funds | ||
Assets: | ||
Cash equivalents, fair value | 116,155 | 247,426 |
Corporate debt securities | ||
Assets: | ||
Cash equivalents, fair value | 4,998 | 3,408 |
Level 1 | ||
Assets: | ||
Cash equivalents, fair value | 116,155 | 247,426 |
Short term investments, fair value | 0 | 0 |
Total cash equivalents and short-term investments | 116,155 | 247,426 |
Level 1 | U.S. treasury securities | ||
Assets: | ||
Short term investments, fair value | 0 | 0 |
Level 1 | Corporate debt securities | ||
Assets: | ||
Short term investments, fair value | 0 | 0 |
Level 1 | Money market funds | ||
Assets: | ||
Cash equivalents, fair value | 116,155 | 247,426 |
Level 1 | Corporate debt securities | ||
Assets: | ||
Cash equivalents, fair value | 0 | 0 |
Level 2 | ||
Assets: | ||
Cash equivalents, fair value | 4,998 | 3,408 |
Short term investments, fair value | 350,712 | 265,374 |
Total cash equivalents and short-term investments | 355,710 | 268,782 |
Level 2 | U.S. treasury securities | ||
Assets: | ||
Short term investments, fair value | 204,377 | 195,897 |
Level 2 | Corporate debt securities | ||
Assets: | ||
Short term investments, fair value | 146,335 | 69,477 |
Level 2 | Money market funds | ||
Assets: | ||
Cash equivalents, fair value | 0 | 0 |
Level 2 | Corporate debt securities | ||
Assets: | ||
Cash equivalents, fair value | 4,998 | 3,408 |
Level 3 | ||
Assets: | ||
Cash equivalents, fair value | 0 | 0 |
Short term investments, fair value | 0 | 0 |
Total cash equivalents and short-term investments | 0 | 0 |
Level 3 | U.S. treasury securities | ||
Assets: | ||
Short term investments, fair value | 0 | 0 |
Level 3 | Corporate debt securities | ||
Assets: | ||
Short term investments, fair value | 0 | 0 |
Level 3 | Money market funds | ||
Assets: | ||
Cash equivalents, fair value | 0 | 0 |
Level 3 | Corporate debt securities | ||
Assets: | ||
Cash equivalents, fair value | $ 0 | $ 0 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Carrying Amounts and Estimated Fair Values of Convertible Note (Details) - Senior Notes - Convertible Senior Notes Due 2023 $ in Thousands | Jul. 31, 2019USD ($) |
Net Carrying Amount Before Unamortized Debt Issuance Costs | |
Debt Instrument [Line Items] | |
Convertible senior notes | $ 285,696 |
Estimated Fair Value | |
Debt Instrument [Line Items] | |
Convertible senior notes | $ 958,925 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) $ / shares in Units, $ in Thousands | Jul. 31, 2019USD ($)$ / shares |
Debt Instrument [Line Items] | |
Closing price of common stock (in dollars per share) | $ / shares | $ 130.83 |
Convertible Senior Notes Due 2023 | Senior Notes | |
Debt Instrument [Line Items] | |
Aggregate principal amount | $ | $ 345,000 |
Deferred Commissions (Details)
Deferred Commissions (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||||
Sales commissions capitalized as contract costs | $ 11,600,000 | $ 8,500,000 | $ 21,400,000 | $ 14,200,000 |
Amortization of contract costs | 6,900,000 | 5,000,000 | $ 13,200,000 | $ 9,600,000 |
Impairment loss related to costs capitalized | $ 0 | $ 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, net - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | Mar. 18, 2019 | Jan. 31, 2019 | [1] | |
Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill | $ 47,964,000 | $ 47,964,000 | $ 18,089,000 | ||||
Goodwill impairments | 0 | $ 0 | 0 | $ 0 | |||
Capitalized internal-use software | 1,200,000 | 800,000 | 1,700,000 | 2,000,000 | |||
Share-based Payment Arrangement | 8,500,000 | ||||||
Purchased developed technology | 24,200,000 | 24,200,000 | |||||
Intangible amortization expense | 3,000,000 | $ 1,200,000 | 5,100,000 | $ 2,400,000 | |||
Azuqua, Inc. | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill | $ 29,900,000 | ||||||
Goodwill acquired in connection with acquisition | 29,900,000 | ||||||
Purchased developed technology | $ 15,700,000 | $ 15,700,000 | |||||
Azuqua, Inc. | Purchased developed technology | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Purchased developed technology | $ 15,700,000 | ||||||
[1] | Adjusted for adoption of ASC 842, Leases. See Note 2. |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, net - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 51,317 | $ 25,461 |
Accumulated Amortization | (16,605) | (11,565) |
Net | 34,712 | 13,896 |
Capitalized internal-use software costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 21,494 | 19,838 |
Accumulated Amortization | (12,342) | (9,969) |
Net | 9,152 | 9,869 |
Purchased developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 28,800 | 4,600 |
Accumulated Amortization | (3,381) | (833) |
Net | 25,419 | 3,767 |
Software licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 1,023 | 1,023 |
Accumulated Amortization | (882) | (763) |
Net | $ 141 | $ 260 |
Deferred Revenue and Performa_2
Deferred Revenue and Performance Obligations - Narrative (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] | |||||
Revenue recognized that was included in the contract liability balance | $ 113.1 | $ 73.1 | $ 174.9 | $ 114.3 | |
Unbilled receivables | $ 1 | $ 1 | $ 1.5 |
Deferred Revenue and Performa_3
Deferred Revenue and Performance Obligations - Performance Obligations (Details) $ in Millions | Jul. 31, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue from remaining performance obligations | $ 913.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-05-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied, expected timing | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-08-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from remaining performance obligations | $ 461.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 51.00% |
Convertible Senior Notes, Net -
Convertible Senior Notes, Net - Convertible Senior Notes (Details) - Senior Notes - Convertible Senior Notes Due 2023 $ / shares in Units, $ in Thousands | 1 Months Ended | 6 Months Ended | |
Apr. 30, 2019day | Feb. 28, 2018USD ($)day$ / shares | Jul. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |||
Fixed interest rate | 0.25% | ||
Net proceeds from notes | $ 335,000 | ||
Initial conversion rate of common stock | 0.0206795 | ||
Conversion price (in dollars per share) | $ / shares | $ 48.36 | ||
Limitation on sale of common stock (in days) | day | 20 | ||
Limitation on sale of common stock due to sale price threshold (in days) | day | 20 | 30 | |
Threshold percentage of stock price trigger | 130.00% | 130.00% | |
Percentage of closing sale price in excess of convertible notes | 98.00% | ||
Redemption price percentage | 100.00% | ||
Effective interest rate | 5.68% | ||
Issuance costs | $ 10,000 | ||
Issuance costs attributable to liability component | $ 7,700 | ||
Period After Consecutive Trading Days | 5 days | ||
Additional Paid-in Capital | |||
Debt Instrument [Line Items] | |||
Issuance costs attributable to equity component | $ 2,320 |
Convertible Senior Notes, Net_2
Convertible Senior Notes, Net - Schedule of Interest Expense (Details) - Senior Notes - Convertible Senior Notes Due 2023 - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Debt Instrument [Line Items] | ||||
Contractual interest expense | $ 215 | $ 216 | $ 431 | $ 362 |
Amortization of debt issuance costs | 329 | 288 | 648 | 478 |
Amortization of debt discount | 3,759 | 3,554 | 7,465 | 5,935 |
Total | $ 4,303 | $ 4,058 | $ 8,544 | $ 6,775 |
Convertible Senior Notes, Net_3
Convertible Senior Notes, Net - Schedule of Liability and Equity Component of 2023 Notes (Details) - Senior Notes - Convertible Senior Notes Due 2023 $ in Thousands | Jul. 31, 2019USD ($) |
Liability component: | |
Principal | $ 345,000 |
Less: unamortized debt issuance costs and debt discount | (65,259) |
Net carrying amount | 279,741 |
Additional Paid-in Capital | |
Equity component: | |
2023 Notes | 79,962 |
Less: issuance costs | (2,320) |
Carrying amount of the equity component | $ 77,642 |
Convertible Senior Notes, Net_4
Convertible Senior Notes, Net - Note Hedges and Warrants (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 1 Months Ended | 6 Months Ended | ||
Feb. 28, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | [1] | |
Debt Instrument [Line Items] | ||||
Aggregate amount paid for cost of Note Hedge | $ 80,000 | |||
Number of warrants issued, subject to anti-dilution adjustments (in shares) | 7.1 | |||
Per share value, shares issuable under warrants granted (in dollars per share) | $ 68.06 | |||
Proceeds from issuance of warrants related to convertible notes | $ 52,400 | $ 0 | $ 52,440 | |
Senior Notes | Convertible Senior Notes Due 2023 | ||||
Debt Instrument [Line Items] | ||||
Shares issuable under warrants granted (in shares) | 7.1 | |||
Conversion price (in dollars per share) | $ 48.36 | |||
[1] | Adjusted for adoption of ASC 842, Leases. See Note 2. |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | Jan. 31, 2019 | |
Other Commitments [Line Items] | |||||
Finance Lease, Liability, Undiscounted Excess Amount | $ 45,310 | $ 45,310 | |||
Sublease minimum remaining lease term | 1 year | ||||
Sublease maximum remaining lease term | 5 years | ||||
Sublease income | $ 700 | $ 1,400 | |||
Weighted average remaining lease term | 8 years 4 months 24 days | 8 years 4 months 24 days | 8 years 10 months 24 days | ||
Weighted average discount rate | 5.90% | 5.90% | |||
Cash payments included in the measurement of operating lease liabilities | $ 2,400 | $ 3,100 | $ 4,800 | $ 6,100 | |
Undiscounted future payments under operating leases that have not yet commenced | $ 35,600 | $ 35,600 | |||
Operating lease terms for leases that have not yet commenced | 8 years 8 months 12 days | 8 years 8 months 12 days |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Lease cost: | ||||
Operating lease cost | $ 5,620 | $ 5,807 | $ 11,083 | $ 9,241 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating Leases (Details) $ in Thousands | Jul. 31, 2019USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2020 | $ 12,157 |
2021 | 24,504 |
2022 | 24,189 |
2023 | 23,765 |
2024 | 24,252 |
Thereafter | 95,733 |
Total lease payments | 204,600 |
Less imputed interest | (45,310) |
Total operating lease liabilities | $ 159,290 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - Letter of Credit - USD ($) | Jul. 31, 2019 | Jan. 31, 2019 |
Other Commitments [Line Items] | ||
Letters of credit issued and outstanding | $ 12,700,000 | |
Draws on line of credit | $ 0 |
Employee Incentive Plans - Sche
Employee Incentive Plans - Schedule of Stock-based Compensation Expense by Statement of Operations Location (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 [Line Items] | ||||
Stock-based compensation expense | $ 31,274 | $ 18,222 | $ 53,959 | $ 32,357 |
Subscription | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 3,111 | 1,901 | 5,533 | 3,430 |
Professional services and other | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 1,873 | 1,083 | 3,392 | 1,972 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 9,082 | 5,272 | 15,428 | 9,485 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 9,236 | 5,471 | 16,022 | 9,624 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 7,972 | $ 4,495 | $ 13,584 | $ 7,846 |
Employee Incentive Plans - Narr
Employee Incentive Plans - Narrative (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |
Jul. 31, 2019USD ($)$ / sharesshares | Jul. 31, 2019USD ($)incentive_plan$ / sharesshares | Jan. 31, 2019shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of equity incentive plans | incentive_plan | 2 | ||
Options to purchase common stock outstanding (in shares) | 14,587,324 | 14,587,324 | 17,803,794 |
Unrecognized stock-based compensation expense related to stock options | $ | $ 39.4 | $ 39.4 | |
Stock Issued During Period, Value, Employee Stock Purchase Plan | $ | 9 | ||
Unrecognized stock-based compensation expenses related to unvested RSUs | $ | $ 353.1 | $ 353.1 | |
Number of options, granted (in shares) | 412,360 | ||
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted during period (in shares) | 1,895,182 | ||
Vested during period (in shares) | 1,016,224 | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average stock-based compensation recognition period | 1 year 9 months 18 days | ||
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average stock-based compensation recognition period | 10 months 24 days | ||
Employee purchase of Class A common stock under the ESPP | 434,640 | 197,703 | |
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $ / shares | $ 45.55 | $ 45.55 | |
Unrecognized compensation costs related to unvested restricted stock units | $ | $ 8.3 | $ 8.3 | |
Restricted stock units | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average stock-based compensation recognition period | 3 years | ||
2017 Equity Incentive Plan | Class B Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options to purchase common stock outstanding (in shares) | 13,442,997 | 13,442,997 | |
2017 Equity Incentive Plan | Class A Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options to purchase common stock outstanding (in shares) | 1,144,327 | 1,144,327 |
Employee Incentive Plans - Sc_2
Employee Incentive Plans - Schedule of Common Stock Reserved for Future Issuance (Details) | Jul. 31, 2019shares |
Class of Stock [Line Items] | |
Common stock reserved for future issuance and options and unvested RSUs outstanding (in shares) | 40,268,806 |
Stock Options And Restricted Stock Units | |
Class of Stock [Line Items] | |
Stock options and unvested RSUs outstanding (in shares) | 19,988,414 |
Common stock, reserved for future issuance (in shares) | 16,501,443 |
ESPP | |
Class of Stock [Line Items] | |
Common stock, reserved for future issuance (in shares) | 3,778,949 |
Employee Incentive Plans - Sc_3
Employee Incentive Plans - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jul. 31, 2019 | Jan. 31, 2019 | |
Number of Options | ||
Number of options, outstanding beginning of period (in shares) | 17,803,794 | |
Number of options, granted (in shares) | 412,360 | |
Number of options, exercised (in shares) | (3,376,704) | |
Number of options, canceled (in shares) | (252,126) | |
Number of options, outstanding end of period (in shares) | 14,587,324 | 17,803,794 |
Vested and exercisable, number of options (in shares) | 9,195,820 | |
Weighted- Average Exercise Price | ||
Options outstanding, weighted average exercise price beginning of period (in dollars per share) | $ 9.16 | |
Options granted, weighted average exercise price (in dollars per share) | 82.16 | |
Options exercised, weighted average exercise price (in dollars per share) | 8.13 | |
Options canceled, weighted average exercise price (in dollars per share) | 11.67 | |
Options outstanding, weighted average exercise price end of period (in dollars per share) | 11.42 | $ 9.16 |
Vested and exercisable, weighted average exercise price (in dollars per share) | $ 7.87 | |
Additional Disclosures | ||
Options outstanding, weighted average remaining contractual term | 6 years 7 months 6 days | 7 years 1 month 6 days |
Options outstanding, aggregate intrinsic value | $ 1,741,854 | $ 1,304,446 |
Vested and exercisable, weighted average remaining contractual term | 6 years 1 month 6 days | |
Vested and exercisable, aggregate intrinsic value | $ 1,130,712 |
Employee Incentive Plans - Sc_4
Employee Incentive Plans - Schedule of Restricted Stock Unit Activity (Details) - Restricted stock units | 6 Months Ended |
Jul. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning balance (in shares) | shares | 4,835,536 |
Granted during period (in shares) | shares | 1,895,182 |
Vested during period (in shares) | shares | (1,016,224) |
Forfeited during period (in shares) | shares | (313,404) |
Ending balance (in shares) | shares | 5,401,090 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Beginning balance (in dollars per share) | $ / shares | $ 44.49 |
Granted during period (in dollars per share) | $ / shares | 115.86 |
Vested during period (in dollars per share) | $ / shares | 43.60 |
Forfeited during period (in dollars per share) | $ / shares | 45.44 |
Ending balance (in dollars per share) | $ / shares | $ 69.65 |
Employee Incentive Plans - Sc_5
Employee Incentive Plans - Schedule of Black-Scholes Option Pricing Model Estimated Fair Value Assumptions (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected volatility | 43.00% | 39.00% | 43.00% | 39.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Maximum | 59.00% | 40.00% | 59.00% | 40.00% |
Expected term (in years) | 0 years | 0 years | ||
Risk-free interest rate | 2.05% | 2.12% | 2.05% | 2.12% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum | 1.95% | 2.34% | 1.95% | 2.34% |
Employee purchase of Class A common stock under the ESPP | 434,640 | 197,703 | ||
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (in years) | 0 years | |||
Minimum | ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (in years) | 6 months | 6 months | 6 months | 6 months |
Maximum | ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (in years) | 1 year | 1 year | 1 year | 1 year |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (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] | ||||
Tax benefit | $ 1,477 | $ 985 | $ 2,634 | $ 1,216 |
Pretax losses | $ 44,457 | $ 40,192 | $ 97,580 | $ 66,385 |
Effective income tax rate | 3.30% | 2.50% | 2.70% | 1.80% |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | ||
Numerator: | |||||
Net loss | $ (42,980) | $ (39,207) | $ (94,946) | $ (65,169) | [1] |
Denominator: | |||||
Weighted-average shares outstanding - basic and diluted (in shares) | 115,033 | 106,702 | 114,042 | 105,475 | |
Net loss per share, basic and diluted (in dollars per share) | $ (0.37) | $ (0.37) | $ (0.83) | $ (0.62) | |
Class A Common Stock | |||||
Numerator: | |||||
Net loss | $ (39,250) | $ (33,862) | |||
Denominator: | |||||
Weighted-average shares outstanding - basic and diluted (in shares) | 105,049 | 92,156 | 103,917 | 86,172 | |
Net loss per share, basic and diluted (in dollars per share) | $ (0.37) | $ (0.37) | $ (0.83) | $ (0.62) | |
Class B Common Stock | |||||
Numerator: | |||||
Net loss | $ (3,730) | $ (5,345) | |||
Denominator: | |||||
Weighted-average shares outstanding - basic and diluted (in shares) | 9,984 | 14,546 | 10,125 | 19,303 | |
Net loss per share, basic and diluted (in dollars per share) | $ (0.37) | $ (0.37) | $ (0.83) | $ (0.62) | |
Common Stock | Class A Common Stock | |||||
Numerator: | |||||
Net loss | $ (86,516) | $ (53,242) | |||
Common Stock | Class B Common Stock | |||||
Numerator: | |||||
Net loss | $ (8,430) | $ (11,927) | |||
[1] | Adjusted for adoption of ASC 842, Leases. See Note 2. |
Net Loss Per Share - Schedule_2
Net Loss Per Share - Schedule of Potentially Dilutive Securities Excluded from Computation of Diluted Per Share (Details) - shares shares in Thousands | 6 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 34,662 | 34,167 |
Unvested restricted common stock issued and outstanding | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 400 |
Stock options issued and outstanding | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 14,587 | 20,898 |
Unvested RSUs issued and outstanding | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 5,401 | 4,891 |
Unvested restricted stock awards issued and outstanding | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 177 | 388 |
Shares related to convertible senior notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 7,134 | 7,134 |
Shares subject to warrants related to the issuance of convertible senior notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 7,134 | 0 |
Shares committed under the ESPP | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 215 | 360 |
Unvested shares subject to repurchase | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 14 | 96 |
Net Loss Per Share - Narrative
Net Loss Per Share - Narrative (Details) | Feb. 28, 2018$ / shares |
Debt Instrument [Line Items] | |
Per share value, shares issuable under warrants granted (in dollars per share) | $ 68.06 |
Convertible Senior Notes Due 2023 | Senior Notes | |
Debt Instrument [Line Items] | |
Conversion price (in dollars per share) | $ 48.36 |
Uncategorized Items - okta-7312
Label | Element | Value | |
Restricted Cash and Cash Equivalents, Current | us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue | $ 307,000 | |
Restricted Cash and Cash Equivalents, Current | us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue | 0 | [1] |
Restricted Cash and Cash Equivalents, Noncurrent | us-gaap_RestrictedCashAndCashEquivalentsNoncurrent | 11,438,000 | |
Restricted Cash and Cash Equivalents, Noncurrent | us-gaap_RestrictedCashAndCashEquivalentsNoncurrent | $ 8,560,000 | [1] |
[1] | Adjusted for adoption of ASC 842, Leases. See Note 2. |