Exa (EXA) 10-Q 30 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Oct. 31, 2016	Nov. 28, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Oct. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Trading Symbol	EXA
Entity Registrant Name	EXA CORP
Entity Central Index Key	890,264
Current Fiscal Year End Date	--01-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		14,851,501

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Oct. 31, 2016	Jan. 31, 2016
Current assets:
Cash and cash equivalents	$ 25,033	$ 27,649
Accounts receivable	16,663	32,072
Prepaid expenses and other current assets	2,862	3,707
Total current assets	44,558	63,428
Property and equipment, net	10,897	12,032
Intangible assets, net	1,782	2,044
Deferred tax assets	432	428
Restricted cash	352	352
Other assets	744	737
Total assets	58,765	79,021
Current liabilities:
Accounts payable	1,218	3,462
Accrued expenses	8,739	12,199
Current portion of deferred revenue	23,421	32,849
Current portion of capital lease obligations	1,997	2,823
Total current liabilities	35,375	51,333
Deferred revenue	699	4,484
Capital lease obligations	1,286	2,549
Deferred rent	2,537	2,490
Other long-term liabilities	719	678
Total liabilities	40,616	61,534
Commitments and contingencies (Note 9)
Stockholders’ equity :
Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued and outstanding
Common stock, $0.001 par value; 30,000,000 shares authorized; 14,882,446 and 14,663,621 shares issued, respectively; 14,849,944 and 14,631,119 shares outstanding, respectively	15	15
Additional paid-in capital	93,767	91,626
Accumulated deficit	(75,151)	(73,685)
Treasury stock (32,502 common shares, at cost)	0	0
Accumulated other comprehensive loss	(482)	(469)
Total stockholders’ equity	18,149	17,487
Total liabilities and stockholders’ equity	$ 58,765	$ 79,021

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares	Oct. 31, 2016	Jan. 31, 2016
Statement Of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	30,000,000	30,000,000
Common stock, shares issued	14,882,446	14,663,621
Common stock, shares outstanding	14,849,944	14,631,119
Treasury stock, shares	32,502	32,502

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
Revenue:
License revenue	$ 15,967	$ 13,966	$ 44,836	$ 39,185
Project revenue	3,191	2,998	8,219	8,002
Total revenue	19,158	16,964	53,055	47,187
Operating expenses:
Cost of revenues	4,904	5,118	14,340	14,516
Sales and marketing	3,357	2,336	10,080	7,264
Research and development	6,234	6,143	18,468	18,265
General and administrative	3,952	3,456	10,858	9,849
Total operating expenses	18,447	17,053	53,746	49,894
Income (loss) from operations	711	(89)	(691)	(2,707)
Other (expense) income, net
Foreign exchange (loss) gain	(99)	51	94	(172)
Interest expense	(30)	(60)	(116)	(179)
Interest income	12	3	33	8
Other (expense) income, net	(3)	6	9	6
Total other (expense) income, net	(120)	0	20	(337)
Income (loss) before income taxes	591	(89)	(671)	(3,044)
Provision for income taxes	(436)	(344)	(795)	(472)
Net income (loss)	$ 155	$ (433)	$ (1,466)	$ (3,516)
Net income (loss) per share:
Basic	$ 0.01	$ (0.03)	$ (0.10)	$ (0.24)
Diluted	$ 0.01	$ (0.03)	$ (0.10)	$ (0.24)
Weighted average shares outstanding used in computing net income (loss) per share:
Basic	14,826,758	14,610,479	14,750,153	14,484,563
Diluted	15,261,996	14,610,479	14,750,153	14,484,563
Comprehensive income (loss):
Net income (loss)	$ 155	$ (433)	$ (1,466)	$ (3,516)
Foreign currency translation adjustment	(55)	6	(13)	34
Comprehensive income (loss)	$ 100	$ (427)	$ (1,479)	$ (3,482)

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Cash flows provided by operating activities:
Net loss	$ (1,466)	$ (3,516)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	2,987	2,487
Stock-based compensation expense	1,458	1,766
Deferred rent expense	286	472
Deferred income taxes	(4)	4
Net change in operating assets and liabilities:
Accounts receivable	15,201	15,948
Prepaid expenses and other current assets	1,044	54
Other assets	(7)	11
Accounts payable	(1,865)	694
Accrued expenses	(3,755)	(2,946)
Other liabilities	40	(69)
Deferred revenue	(13,392)	(11,007)
Net cash provided by operating activities	527	3,898
Cash flows used in investing activities:
Purchases of property and equipment	(1,881)	(1,571)
Change in restricted cash		173
Net cash used in investing activities	(1,881)	(1,398)
Cash flows used in financing activities:
Proceeds from stock option and warrant exercises	453	1,168
Payments of capital lease obligations	(2,151)	(2,131)
Net cash used in financing activities	(1,698)	(963)
Effect of exchange rate changes on cash	436	(136)
Net (decrease) increase in cash and cash equivalents	(2,616)	1,401
Cash and cash equivalents, beginning of period	27,649	21,785
Cash and cash equivalents, end of period	25,033	23,186
Supplemental cash flow disclosures:
Cash paid for interest	116	179
Cash paid for income taxes	1,367	1,214
Supplemental disclosure of non-cash investing activities:
Acquisition of equipment through capital leases	62	4,351
Construction costs funded by landlord tenant improvement allowance		$ 554
Decrease in unpaid purchases of property and equipment	$ (381)

Description of Business

Description of Business	9 Months Ended
	Oct. 31, 2016
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Description of Business	1. Description of Business Exa Corporation (the “Company” or “Exa”), a Delaware corporation, develops, sells and supports simulation software and services used primarily by vehicle manufacturers to enhance the performance of their products, reduce product development costs and improve the efficiency of their design and engineering processes. The Company’s solutions enable engineers and designers to augment or replace conventional methods of evaluating designs that rely on expensive and inefficient physical prototypes and test facilities with accurate digital simulations that are more useful, cost effective and timely. The Company’s simulation solutions enable customers to gain crucial insights about design performance early in the design cycle, reducing the likelihood of expensive redesigns and late-stage engineering changes, which results in cost savings and fundamental improvements in the development process. The Company is primarily focused on the ground transportation market, but is also exploring the application of its capabilities in the aerospace, oil and gas production, chemical processing, architecture, engineering and construction, power generation, biomedical and electronics industries. Exa has offices and sells directly in the United States and through subsidiaries in France, Germany, Italy, Japan, Korea, China, and the United Kingdom. The Company also conducts business in Sweden, India, Brazil, Russia, Canada, Finland, Spain and Australia.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Oct. 31, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Applicable Accounting Guidance Any reference in these notes to applicable accounting guidance is meant to refer to the authoritative United States generally accepted accounting principles (“GAAP”) as found in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”). Basis of Presentation The interim financial data as of October 31, 2016 and for the three and nine months ended October 31, 2016 and 2015 are unaudited; however, in the opinion of the Company’s management, the interim data includes all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results for the interim periods presented. The condensed consolidated balance sheet presented as of January 31, 2016 has been derived from the audited consolidated financial statements as of that date. The unaudited condensed consolidated financial statements presented herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Accordingly, they do not include all of the information and note disclosures required by GAAP for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Exa annual report on Form 10-K for the year ended January 31, 2016 filed with the Securities and Exchange Commission on March 21, 2016. Reclassification Certain prior year amounts have been reclassified to be consistent with current year classifications. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Actual results could differ from management’s estimates if future events differ substantially from past experience, or other assumptions, which reasonable when made, do not turn out to be substantially accurate. Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In April 2015, the FASB issued ASU No. 2015-05, Intangibles – Goodwill and Other – Internal-Use Software: Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718)—Improvements to Employee Share-Based Payment Accounting

Computation of Net Income (Loss

Computation of Net Income (Loss) Per Share	9 Months Ended
	Oct. 31, 2016
Earnings Per Share [Abstract]
Computation of Net Income (Loss) Per Share	3. Computation of Net Income (Loss) Per Share Basic earnings per share (“EPS”) is computed by dividing income available to common stockholders by the weighted-average number of shares of common stock outstanding during the period. The computation of diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional shares of common stock that would have been outstanding (using the treasury stock method) if securities convertible into or exercisable for potentially dilutive shares of common stock (stock options, restricted stock units and warrants) had been converted into or exercisable for such shares of common stock, and if such assumed conversion or exercise would have been dilutive. Exercises or conversions that would have been anti-dilutive are excluded from the calculation of diluted EPS. The following summarizes the calculation of basic and diluted net income (loss) per share: Three Months Ended October 31, Nine Months Ended October 31, 2016 2015 2016 2015 Numerator: Net income (loss) $ 155 $ (433 ) $ (1,466 ) $ (3,516 ) Denominator: Weighted average common shares outstanding, basic 14,826,758 14,610,479 14,750,153 14,484,563 Dilutive effect of: Options to purchase common stock 413,275 — — — Options to purchase preferred stock 21,963 — — — Weighted average common shares outstanding, fully diluted 15,261,996 14,610,479 14,750,153 14,484,563 Basic net income (loss) per share $ 0.01 $ (0.03 ) $ (0.10 ) $ (0.24 ) Diluted net income (loss) per share $ 0.01 $ (0.03 ) $ (0.10 ) $ (0.24 ) The table below represents outstanding options, restricted stock unit awards and warrants that were excluded from the computation of diluted net income (loss) per share for the periods indicated because including them would have had an anti-dilutive effect. All of the Company’s outstanding stock options, unvested restricted stock units and warrants were anti-dilutive for the three months ended October 31, 2015 and for the nine months ended October 31, 2016 and 2015, respectively, due to the net loss incurred by the Company. Three Months Ended October 31, Nine Months Ended October 31, 2016 2015 2016 2015 Options, restricted stock unit awards and warrants to purchase common and preferred stock 543,276 2,514,955 1,951,713 2,514,955

Property and Equipment, net

Property and Equipment, net	9 Months Ended
	Oct. 31, 2016
Property Plant And Equipment [Abstract]
Property and Equipment, net	4. Property and Equipment, net Property and equipment, net consists of the following: October 31, 2016 January 31, 2016 Computer software and equipment $ 19,407 $ 17,964 Office equipment and furniture 1,554 1,349 Leasehold improvements 1,630 1,562 Construction-in-process 110 169 Total property and equipment 22,701 21,044 Less accumulated depreciation (11,804 ) (9,012 ) Property and equipment, net $ 10,897 $ 12,032 For the three and nine months ended October 31, 2016, depreciation expense was $908 and $2,724, respectively. For the three and nine months ended October 31, 2015, depreciation expense was $871 and $2,224, respectively. Included in computer software and equipment and office equipment and furniture is equipment held pursuant to capital leases with costs of $14,883 and $14,809 and accumulated depreciation of $8,712 and $6,808 as of October 31, 2016 and January 31, 2016, respectively.

Accrued Expenses

Accrued Expenses	9 Months Ended
	Oct. 31, 2016
Payables And Accruals [Abstract]
Accrued Expenses	5. Accrued Expenses Accrued expenses consist of the following: October 31, 2016 January 31, 2016 Accrued payroll $ 1,958 $ 1,828 Sales and value added taxes 1,763 4,075 Accrued commissions and bonuses 1,996 3,900 Accrued income taxes payable 833 541 Deferred rent, current portion 429 186 Legal and professional 651 805 Other 1,109 864 Total accrued expenses $ 8,739 $ 12,199

Deferred Rent

Deferred Rent	9 Months Ended
	Oct. 31, 2016
Text Block [Abstract]
Deferred Rent	6. Deferred Rent Payment escalations, rent holidays and lease incentives specified in the Company’s non-cancelable operating lease and hosting agreements are recognized on a straight-line basis over the terms of the agreements. For purposes of recognizing incentives and minimum rental expenses on a straight-line basis, the Company uses the date it obtains the legal right to use and control the leased space to begin amortization. The differences arising from straight-line expense recognition and cash payments are recorded as deferred rent in the accompanying consolidated balance sheets. Tenant leasehold improvement allowances received from landlords are recorded as deferred rent and are amortized to operating expenses over the applicable lease terms. Deferred rent consists of the following: October 31, 2016 January 31, 2016 Leasehold improvement incentive $ 1,646 $ 1,839 Non-cash rent expense 1,320 837 Total deferred rent 2,966 2,676 Less current portion included in accrued expenses (429 ) (186 ) Deferred rent, net of current portion $ 2,537 $ 2,490

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Oct. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	7. Fair Value Measurements Financial instruments consist primarily of cash and cash equivalents, accounts receivable and capital lease obligations. As of October 31, 2016 and January 31, 2016, the carrying amounts of these instruments approximate their fair values. The estimated fair values have been determined from information obtained from market sources and management estimates. In determining the fair value of its financial assets and liabilities, the Company uses various valuation approaches. ASC 820, Fair Value Measurements and Disclosures Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 – Valuations based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and models for which all significant inputs are observable, either directly or indirectly. Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement and that are based on management’s best estimate of inputs market participants would use for pricing the asset or liability at the measurement date, including assumptions about risk. The following table summarizes the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value as of October 31, 2016: Total Level 1 Level 2 Level 3 Assets: Money market funds $ 10,048 $ 10,048 $ — $ — The following table summarizes the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value as of January 31, 2016: Total Level 1 Level 2 Level 3 Assets: Money market funds $ 11,019 $ 11,019 $ — $ — The availability of observable inputs can vary among the various types of financial assets and liabilities. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for financial statement disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is categorized is based on the lowest level input that is significant to the overall fair value measurement.

Acquired Intangible Assets

Acquired Intangible Assets	9 Months Ended
	Oct. 31, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
Acquired Intangible Assets	8. Acquired Intangible Assets Intangible assets acquired in a business combination are recorded under the purchase method of accounting at their estimated fair values at the date of acquisition. The Company amortizes acquired intangible assets over their estimated useful lives. The following table reflects the carrying value of intangible assets as of October 31, 2016: Cost Accumulated Amortization Net Book Value Intellectual property $ 3,505 $ (1,723 ) $ 1,782 Access to facilities contract 38 (38 ) — Total $ 3,543 $ (1,761 ) $ 1,782 The following table reflects the carrying value of intangible assets as of January 31, 2016: Cost Accumulated Amortization Net Book Value Intellectual property $ 3,505 $ (1,461 ) $ 2,044 Access to facilities contract 38 (38 ) — Total $ 3,543 $ (1,499 ) $ 2,044 For each of the three months ended October 31, 2016 and 2015, amortization expense of intangible assets was $88. For each of the nine months ended October 31, 2016 and 2015, amortization expense of intangible assets was $263.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Oct. 31, 2016
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	9. Commitments and Contingencies Legal Contingencies From time to time the Company is involved in legal proceedings arising in the ordinary course of business. There is no litigation pending that could, individually or in the aggregate, reasonably be expected to have a material adverse effect on the Company’s financial position, results of operations, or cash flows. Indemnification Obligations The Company enters into standard indemnification agreements in the ordinary course of business. Pursuant to these agreements, the Company indemnifies, holds harmless, and agrees to reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally the Company’s business partners or customers, in connection with any United States patent, or any copyright or other intellectual property infringement claim by any third party with respect to the Company’s products. The term of these indemnification provisions is generally perpetual after execution of the agreement. The maximum potential amount of future payments the Company could be required to make under these agreements is unlimited. Based on historical experience and information known as of October 31, 2016 and January 31, 2016, the Company has not recorded any liabilities for these indemnities. Operating Leases During the second quarter of fiscal year 2017, the Company entered into an agreement to lease space and high performance computing capacity at a data center located in Virginia. The three-year agreement will provide access to up to 300 KW hours of computing capacity, which the Company believes will be suitable and adequate to meet the growing demands of its customers. As of October 31, 2016, after taking into consideration the above agreement, total future minimum lease payments under non-cancelable lease arrangements are as follows: Year ended January 31, 2017 (Remainder as of October 31, 2016) $ 1,588 2018 6,061 2019 5,503 2020 3,916 2021 2,062 Thereafter 4,898 $ 24,028

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Oct. 31, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation	10. Stock-Based Compensation The fair value of common stock service-based options for employees is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions used: Nine Months Ended October 31, 2016 2015 Expected life (years) 6.25 6.23 Risk-free interest rate 1.4% 2.0% Expected volatility 35.0% 36.8% Expected dividend yield 0.0% 0.0% The weighted-average grant date fair value per share for service-based stock options granted in the three and nine months ended October 31, 2016 was $5.24 and $5.12, respectively. The weighted-average grant date fair value per share for service-based stock options granted in the three and nine months ended October 31, 2015 was $4.14 and $4.21, respectively. For standard service-based stock options and restricted stock units, the Company records stock-based compensation expense over the estimated service/vesting period. The amount of stock-based compensation expense recognized during a period is based on the value of the portion of the awards that is ultimately expected to vest. Performance-based stock options are recognized as expense over the requisite service period when it becomes probable that performance measures triggering vesting will be met. Certain grants vested during the first quarter of fiscal year 2017 based on achieved performance metrics. As of October 31, 2016, the Company has concluded that it is not probable that the required metrics for vesting of the remaining unvested options will be achieved. As such, the Company has not recognized any additional share-based compensation expense associated with the unvested portion of these performance-based options. During the first quarter of fiscal year 2017, the Company granted performance-based restricted stock units (“PSUs”). PSUs are recognized as expense when it becomes probable that performance measures triggering vesting will be achieved. As of October 31, 2016, the Company has concluded that it is not probable that any of the required metrics for vesting of the PSUs will be achieved. As a result, the Company has not recognized any share-based compensation expense associated with these awards. Total stock-based compensation expense related to stock options and restricted stock units issued by the Company is as follows: Three Months Ended October 31, Nine Months Ended October 31, 2016 2015 2016 2015 Cost of revenues $ 41 $ 64 $ 124 $ 186 Sales and marketing 54 117 202 317 Research and development 222 265 567 691 General and administrative 215 215 565 572 Total $ 532 $ 661 $ 1,458 $ 1,766 The total unrecognized compensation cost related to all outstanding stock options and restricted stock units is $10,637 at October 31, 2016. This amount is expected to be recognized over a weighted-average period of 1.65 years.

Income Taxes

Income Taxes	9 Months Ended
	Oct. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	11. Income Taxes For the three and nine months ended October 31, 2016, the Company’s income tax provision was $436 and $795, respectively. For the three and nine months ended October 31, 2015, the income tax provision was $344 and $472, respectively. The provision for all periods primarily consists of the tax effects of foreign operating results and foreign withholding taxes. In determining the realizability of the net United States federal and state deferred tax assets, the Company considers numerous factors including historical profitability, estimated future taxable income, prudent and feasible tax planning strategies and the industry in which it operates. Management reassesses the realization of the deferred tax assets each reporting period, which resulted in a valuation allowance against the full amount of the Company’s United States deferred tax assets in the first quarter of fiscal year 2015. To the extent that the financial results of the United States operations improve in the future and the deferred tax assets become realizable, the Company will reduce the valuation allowance through earnings. The Company and one or more of its subsidiaries file United States federal income tax returns and tax returns in various state and foreign jurisdictions. With limited exceptions, the Company is no longer subject to federal, state, local or foreign examinations for years ending prior to January 31, 2011. However, carryforward attributes that were generated in tax years ending prior to January 31, 2012 may still be adjusted upon examination by state or local tax authorities if they either have been or will be used in a future period. Under Section 382 of the Internal Revenue Code of 1986, as amended, substantial changes in the Company’s ownership may limit the amount of net operating loss carryforwards that could be utilized annually in the future to offset its taxable income. Specifically, this limitation may arise in the event of a cumulative change in ownership of the Company of more than 50% within a three-year period. During the first quarter of fiscal year 2015, management determined that the Company had experienced an ownership change for purposes of Section 382. This ownership change resulted in annual limitations to the amount of net operating loss carryforwards that can be utilized to offset future taxable income, if any, at the federal level. The Company’s management has determined that, as of October 31, 2016, it had not experienced another ownership change for purposes of Section 382. However, future transactions in the Company’s common stock could trigger an ownership change for purposes of Section 382, which could further limit the amount of net operating loss carryforwards that could be utilized annually in the future to offset the Company’s taxable income, if any. Any such limitation, whether as the result of sales of common stock by the Company’s existing stockholders or sales of common stock by the Company, could have a material adverse effect on the Company’s results of operations in future years.

Geographic Information

Geographic Information	9 Months Ended
	Oct. 31, 2016
Segment Reporting [Abstract]
Geographic Information	12. Geographic Information Revenue by geographic area, attributed to individual countries based upon location of the external customer, is as follows: Three Months Ended October 31, Nine Months Ended October 31, 2016 2015 2016 2015 United States $ 4,805 $ 5,320 $ 13,526 $ 13,462 Germany 2,797 2,431 8,089 7,081 Japan 4,045 2,917 10,367 7,396 France 2,199 1,768 6,111 5,387 Korea 1,465 1,464 4,257 4,170 United Kingdom 1,839 1,700 5,220 5,403 China 960 520 2,530 1,544 Sweden 428 420 1,275 1,377 Italy 427 294 1,159 996 Other 193 130 521 371 $ 19,158 $ 16,964 $ 53,055 $ 47,187 Net long-lived assets, consisting of net property and equipment, are subject to geographic risks because they are generally difficult to move and to effectively utilize in another geographic area in a reasonable time period and because they are relatively illiquid. Net long-lived assets by principal geographic areas were as follows: October 31, January 31, 2016 2016 United States $ 10,284 $ 11,346 France 242 388 Germany 101 110 Japan 144 116 Other 126 72 $ 10,897 $ 12,032

Summary of Significant Accoun18

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Oct. 31, 2016
Accounting Policies [Abstract]
Applicable Accounting Guidance	Applicable Accounting Guidance Any reference in these notes to applicable accounting guidance is meant to refer to the authoritative United States generally accepted accounting principles (“GAAP”) as found in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”).
Basis of Presentation	Basis of Presentation The interim financial data as of October 31, 2016 and for the three and nine months ended October 31, 2016 and 2015 are unaudited; however, in the opinion of the Company’s management, the interim data includes all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results for the interim periods presented. The condensed consolidated balance sheet presented as of January 31, 2016 has been derived from the audited consolidated financial statements as of that date. The unaudited condensed consolidated financial statements presented herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Accordingly, they do not include all of the information and note disclosures required by GAAP for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Exa annual report on Form 10-K for the year ended January 31, 2016 filed with the Securities and Exchange Commission on March 21, 2016.
Reclassification	Reclassification Certain prior year amounts have been reclassified to be consistent with current year classifications.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Actual results could differ from management’s estimates if future events differ substantially from past experience, or other assumptions, which reasonable when made, do not turn out to be substantially accurate.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In April 2015, the FASB issued ASU No. 2015-05, Intangibles – Goodwill and Other – Internal-Use Software: Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718)—Improvements to Employee Share-Based Payment Accounting

Computation of Net Income (Lo19

Computation of Net Income (Loss) Per Share (Tables)	9 Months Ended
	Oct. 31, 2016
Earnings Per Share [Abstract]
Calculation of Basic and Diluted Net Income (Loss) Per Share	The following summarizes the calculation of basic and diluted net income (loss) per share: Three Months Ended October 31, Nine Months Ended October 31, 2016 2015 2016 2015 Numerator: Net income (loss) $ 155 $ (433 ) $ (1,466 ) $ (3,516 ) Denominator: Weighted average common shares outstanding, basic 14,826,758 14,610,479 14,750,153 14,484,563 Dilutive effect of: Options to purchase common stock 413,275 — — — Options to purchase preferred stock 21,963 — — — Weighted average common shares outstanding, fully diluted 15,261,996 14,610,479 14,750,153 14,484,563 Basic net income (loss) per share $ 0.01 $ (0.03 ) $ (0.10 ) $ (0.24 ) Diluted net income (loss) per share $ 0.01 $ (0.03 ) $ (0.10 ) $ (0.24 )
Outstanding Options, Restricted Stock Unit Awards and Warrants Excluded from Computation of Diluted Net Loss Per Share	The table below represents outstanding options, restricted stock unit awards and warrants that were excluded from the computation of diluted net income (loss) per share for the periods indicated because including them would have had an anti-dilutive effect. All of the Company’s outstanding stock options, unvested restricted stock units and warrants were anti-dilutive for the three months ended October 31, 2015 and for the nine months ended October 31, 2016 and 2015, respectively, due to the net loss incurred by the Company. Three Months Ended October 31, Nine Months Ended October 31, 2016 2015 2016 2015 Options, restricted stock unit awards and warrants to purchase common and preferred stock 543,276 2,514,955 1,951,713 2,514,955

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	9 Months Ended
	Oct. 31, 2016
Property Plant And Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment, net consists of the following: October 31, 2016 January 31, 2016 Computer software and equipment $ 19,407 $ 17,964 Office equipment and furniture 1,554 1,349 Leasehold improvements 1,630 1,562 Construction-in-process 110 169 Total property and equipment 22,701 21,044 Less accumulated depreciation (11,804 ) (9,012 ) Property and equipment, net $ 10,897 $ 12,032

Accrued Expenses (Tables)

Accrued Expenses (Tables)	9 Months Ended
	Oct. 31, 2016
Payables And Accruals [Abstract]
Accrued Expenses	Accrued expenses consist of the following: October 31, 2016 January 31, 2016 Accrued payroll $ 1,958 $ 1,828 Sales and value added taxes 1,763 4,075 Accrued commissions and bonuses 1,996 3,900 Accrued income taxes payable 833 541 Deferred rent, current portion 429 186 Legal and professional 651 805 Other 1,109 864 Total accrued expenses $ 8,739 $ 12,199

Deferred Rent (Tables)

Deferred Rent (Tables)	9 Months Ended
	Oct. 31, 2016
Text Block [Abstract]
Deferred Rent	Deferred rent consists of the following: October 31, 2016 January 31, 2016 Leasehold improvement incentive $ 1,646 $ 1,839 Non-cash rent expense 1,320 837 Total deferred rent 2,966 2,676 Less current portion included in accrued expenses (429 ) (186 ) Deferred rent, net of current portion $ 2,537 $ 2,490

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Oct. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value Hierarchy for Financial Assets and Liabilities Measured at Fair Value	The following table summarizes the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value as of October 31, 2016: Total Level 1 Level 2 Level 3 Assets: Money market funds $ 10,048 $ 10,048 $ — $ — The following table summarizes the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value as of January 31, 2016: Total Level 1 Level 2 Level 3 Assets: Money market funds $ 11,019 $ 11,019 $ — $ —

Acquired Intangible Assets (Tab

Acquired Intangible Assets (Tables)	9 Months Ended
	Oct. 31, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
Carrying Value of Intangible Assets	The following table reflects the carrying value of intangible assets as of October 31, 2016: Cost Accumulated Amortization Net Book Value Intellectual property $ 3,505 $ (1,723 ) $ 1,782 Access to facilities contract 38 (38 ) — Total $ 3,543 $ (1,761 ) $ 1,782 The following table reflects the carrying value of intangible assets as of January 31, 2016: Cost Accumulated Amortization Net Book Value Intellectual property $ 3,505 $ (1,461 ) $ 2,044 Access to facilities contract 38 (38 ) — Total $ 3,543 $ (1,499 ) $ 2,044

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Oct. 31, 2016
Commitments And Contingencies Disclosure [Abstract]
Future Minimum Lease Payments Under Non-Cancelable Lease Arrangements	As of October 31, 2016, after taking into consideration the above agreement, total future minimum lease payments under non-cancelable lease arrangements are as follows: Year ended January 31, 2017 (Remainder as of October 31, 2016) $ 1,588 2018 6,061 2019 5,503 2020 3,916 2021 2,062 Thereafter 4,898 $ 24,028

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Oct. 31, 2016
Stock-Based Compensation Expense Related to Stock Options Issued and Restricted Stock Units by the Company	Total stock-based compensation expense related to stock options and restricted stock units issued by the Company is as follows: Three Months Ended October 31, Nine Months Ended October 31, 2016 2015 2016 2015 Cost of revenues $ 41 $ 64 $ 124 $ 186 Sales and marketing 54 117 202 317 Research and development 222 265 567 691 General and administrative 215 215 565 572 Total $ 532 $ 661 $ 1,458 $ 1,766
Service-Based Stock Options [Member]
Assumptions Used to Calculate Fair Value of Common Stock Options for Employees and Executive Team Members	The fair value of common stock service-based options for employees is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions used: Nine Months Ended October 31, 2016 2015 Expected life (years) 6.25 6.23 Risk-free interest rate 1.4% 2.0% Expected volatility 35.0% 36.8% Expected dividend yield 0.0% 0.0%

Geographic Information (Tables)

Geographic Information (Tables)	9 Months Ended
	Oct. 31, 2016
Segment Reporting [Abstract]
Revenues by Geographic Area	Revenue by geographic area, attributed to individual countries based upon location of the external customer, is as follows: Three Months Ended October 31, Nine Months Ended October 31, 2016 2015 2016 2015 United States $ 4,805 $ 5,320 $ 13,526 $ 13,462 Germany 2,797 2,431 8,089 7,081 Japan 4,045 2,917 10,367 7,396 France 2,199 1,768 6,111 5,387 Korea 1,465 1,464 4,257 4,170 United Kingdom 1,839 1,700 5,220 5,403 China 960 520 2,530 1,544 Sweden 428 420 1,275 1,377 Italy 427 294 1,159 996 Other 193 130 521 371 $ 19,158 $ 16,964 $ 53,055 $ 47,187
Net Long-Lived Assets by Principal Geographic Area	Net long-lived assets by principal geographic areas were as follows: October 31, January 31, 2016 2016 United States $ 10,284 $ 11,346 France 242 388 Germany 101 110 Japan 144 116 Other 126 72 $ 10,897 $ 12,032

Computation of Net Income (Lo28

Computation of Net Income (Loss) Per Share - Calculation of Basic and Diluted Net Income (Loss) Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
Numerator:
Net income (loss)	$ 155	$ (433)	$ (1,466)	$ (3,516)
Denominator:
Weighted average common shares outstanding, basic	14,826,758	14,610,479	14,750,153	14,484,563
Dilutive effect of:
Options to purchase common stock	413,275
Options to purchase preferred stock	21,963
Weighted average common shares outstanding, fully diluted	15,261,996	14,610,479	14,750,153	14,484,563
Basic net income (loss) per share	$ 0.01	$ (0.03)	$ (0.10)	$ (0.24)
Diluted net income (loss) per share	$ 0.01	$ (0.03)	$ (0.10)	$ (0.24)

Computation of Net Income (Lo29

Computation of Net Income (Loss) Per Share - Outstanding Options, Restricted Stock Unit Awards and Warrants Excluded from Computation of Diluted Net Loss Per Share (Detail) - shares	3 Months Ended		9 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
Earnings Per Share [Abstract]
Options, restricted stock unit awards and warrants to purchase common and preferred stock	543,276	2,514,955	1,951,713	2,514,955

Property and Equipment, Net - S

Property and Equipment, Net - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands	Oct. 31, 2016	Jan. 31, 2016
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 22,701	$ 21,044
Less accumulated depreciation	(11,804)	(9,012)
Property and equipment, net	10,897	12,032
Computer Software and Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	19,407	17,964
Office Equipment and Furniture [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	1,554	1,349
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	1,630	1,562
Construction in Process [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 110	$ 169

Property and Equipment, Net - A

Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015	Jan. 31, 2016
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense	$ 908	$ 871	$ 2,724	$ 2,224
Cost of equipment held pursuant to capital leases	14,883		14,883		$ 14,809
Accumulated amortization	11,804		11,804		9,012
Assets Held under Capital Leases [Member]
Property, Plant and Equipment [Line Items]
Accumulated amortization	$ 8,712		$ 8,712		$ 6,808

Accrued Expenses - Accrued Expe

Accrued Expenses - Accrued Expenses (Detail) - USD ($) $ in Thousands	Oct. 31, 2016	Jan. 31, 2016
Payables And Accruals [Abstract]
Accrued payroll	$ 1,958	$ 1,828
Sales and value added taxes	1,763	4,075
Accrued commissions and bonuses	1,996	3,900
Accrued income taxes payable	833	541
Deferred rent, current portion	429	186
Legal and professional	651	805
Other	1,109	864
Total accrued expenses	$ 8,739	$ 12,199

Deferred Rent - Deferred Rent (

Deferred Rent - Deferred Rent (Detail) - USD ($) $ in Thousands	Oct. 31, 2016	Jan. 31, 2016
Deferred Revenue Disclosure [Abstract]
Leasehold improvement incentive	$ 1,646	$ 1,839
Non-cash rent expense	1,320	837
Total deferred rent	2,966	2,676
Less current portion included in accrued expenses	(429)	(186)
Deferred rent, net of current portion	$ 2,537	$ 2,490

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value Hierarchy for Financial Assets and Liabilities Measured at Fair Value (Detail) - Money Market Funds [Member] - USD ($) $ in Thousands	Oct. 31, 2016	Jan. 31, 2016
Assets:
Money market funds	$ 10,048	$ 11,019
Level 1 [Member]
Assets:
Money market funds	$ 10,048	$ 11,019

Acquired Intangible Assets - Ca

Acquired Intangible Assets - Carrying Value of Intangible Assets (Detail) - USD ($) $ in Thousands	Oct. 31, 2016	Jan. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Cost	$ 3,543	$ 3,543
Accumulated Amortization	(1,761)	(1,499)
Net Book Value	1,782	2,044
Intellectual Property [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	3,505	3,505
Accumulated Amortization	(1,723)	(1,461)
Net Book Value	1,782	2,044
Access to Facilities Contract [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	38	38
Accumulated Amortization	$ (38)	$ (38)

Acquired Intangible Assets - Ad

Acquired Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
Goodwill And Intangible Assets Disclosure [Abstract]
Intangible assets amortization expense	$ 88	$ 88	$ 263	$ 263

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	3 Months Ended
	Jul. 31, 2016kWh	Oct. 31, 2016USD ($)	Jan. 31, 2016USD ($)
Commitments And Contingencies Disclosure [Abstract]
Recorded liabilities for guarantees and indemnities | $		$ 0	$ 0
Operating leases arrangement term	3 years
Computing capacity | kWh	300

Commitments and Contingencies38

Commitments and Contingencies - Future Minimum Lease Payments Under Operating Lease Commitments (Detail) $ in Thousands	Oct. 31, 2016USD ($)
Commitments And Contingencies Disclosure [Abstract]
2017 (Remainder as of October 31, 2016)	$ 1,588
2,018	6,061
2,019	5,503
2,020	3,916
2,021	2,062
Thereafter	4,898
Total	$ 24,028

Stock-Based Compensation - Assu

Stock-Based Compensation - Assumptions Used to Calculate Fair Value of Common Stock Options for Employees and Executive Team Members (Detail) - Service-Based Stock Options [Member]	9 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life (years)	6 years 3 months	6 years 2 months 23 days
Risk-free interest rate	1.40%	2.00%
Expected volatility	35.00%	36.80%
Expected dividend yield	0.00%	0.00%

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost	$ 10,637		$ 10,637
Weighted average period over which unrecognized compensation cost is expected to be recognized			1 year 7 months 24 days
Service-Based Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date per share for stock options	$ 5.24	$ 4.14	$ 5.12	$ 4.21

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
Stock Based Compensation [Line Items]
Stock-based compensation expense	$ 532	$ 661	$ 1,458	$ 1,766
Cost of Revenues [Member]
Stock Based Compensation [Line Items]
Stock-based compensation expense	41	64	124	186
Sales and Marketing [Member]
Stock Based Compensation [Line Items]
Stock-based compensation expense	54	117	202	317
Research and Development [Member]
Stock Based Compensation [Line Items]
Stock-based compensation expense	222	265	567	691
General and Administrative [Member]
Stock Based Compensation [Line Items]
Stock-based compensation expense	$ 215	$ 215	$ 565	$ 572

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
Income Tax Disclosure [Abstract]
Provision (benefit) for income taxes	$ 436	$ 344	$ 795	$ 472
Income tax examination, description			With limited exceptions, the Company is no longer subject to federal, state, local or foreign examinations for years ending prior to January 31, 2011. However, carryforward attributes that were generated in tax years ending prior to January 31, 2012 may still be adjusted upon examination by state or local tax authorities if they either have been or will be used in a future period
Threshold percentage for change in ownership			50.00%
Period of change in ownership			3 years

Geographic Information - Revenu

Geographic Information - Revenues by Geographic Area (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 19,158	$ 16,964	$ 53,055	$ 47,187
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	4,805	5,320	13,526	13,462
Germany [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	2,797	2,431	8,089	7,081
Japan [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	4,045	2,917	10,367	7,396
France [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	2,199	1,768	6,111	5,387
Korea [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	1,465	1,464	4,257	4,170
United Kingdom [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	1,839	1,700	5,220	5,403
China [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	960	520	2,530	1,544
Sweden [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	428	420	1,275	1,377
Italy [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	427	294	1,159	996
Other [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 193	$ 130	$ 521	$ 371

Geographic Information - Net Lo

Geographic Information - Net Long-Lived Assets by Principal Geographic Area (Detail) - USD ($) $ in Thousands	Oct. 31, 2016	Jan. 31, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	$ 10,897	$ 12,032
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	10,284	11,346
France [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	242	388
Germany [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	101	110
Japan [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	144	116
Other [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	$ 126	$ 72