Exa (EXA) 10-Q 24 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Apr. 30, 2017	May 19, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Apr. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
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		14,913,187

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Apr. 30, 2017	Jan. 31, 2017
Current assets:
Cash and cash equivalents	$ 26,630	$ 24,552
Accounts receivable	13,036	24,259
Prepaid expenses and other current assets	3,121	2,898
Total current assets	42,787	51,709
Property and equipment, net	13,654	14,028
Intangible assets, net	1,606	1,694
Deferred tax assets	566	566
Restricted cash	352	352
Other assets	743	725
Total assets	59,708	69,074
Current liabilities:
Accounts payable	3,439	4,616
Accrued expenses	6,439	10,569
Current portion of deferred revenue	27,649	29,006
Current portion of capital lease obligations	1,538	1,737
Total current liabilities	39,065	45,928
Deferred revenue	35	238
Capital lease obligations	539	914
Deferred rent	2,260	2,391
Other long-term liabilities	432	429
Total liabilities	42,331	49,900
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; 14,941,743 and 14,926,429 shares issued, respectively; 14,909,241 and 14,893,927 shares outstanding, respectively	15	15
Additional paid-in capital	95,260	94,516
Accumulated deficit	(77,401)	(74,817)
Treasury stock (32,502 common shares, at cost)	0	0
Accumulated other comprehensive loss	(497)	(540)
Total stockholders’ equity	17,377	19,174
Total liabilities and stockholders’ equity	$ 59,708	$ 69,074

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares	Apr. 30, 2017	Jan. 31, 2017
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	14,941,743	14,926,429
Common stock, shares outstanding	14,909,241	14,893,927
Treasury stock, shares	32,502	32,502

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2017	Apr. 30, 2016
Revenue:
License revenue	$ 14,430	$ 14,059
Project revenue	2,126	2,726
Total revenue	16,556	16,785
Operating expenses:
Cost of revenues	5,186	4,804
Sales and marketing	3,420	3,331
Research and development	6,404	6,211
General and administrative	4,013	3,449
Total operating expenses	19,023	17,795
Loss from operations	(2,467)	(1,010)
Other (expense) income, net:
Foreign exchange (loss) gain	(214)	215
Interest expense	(16)	(47)
Interest income	14	10
Other income, net:		9
Total other (expense) income, net	(216)	187
Loss before income taxes	(2,683)	(823)
Benefit (provision) for income taxes	133	(120)
Net loss	$ (2,550)	$ (943)
Net loss per share:
Basic	$ (0.17)	$ (0.06)
Diluted	$ (0.17)	$ (0.06)
Weighted average shares outstanding used in computing net loss per share:
Basic	14,900,193	14,636,433
Diluted	14,900,193	14,636,433
Comprehensive loss:
Net loss	$ (2,550)	$ (943)
Foreign currency translation adjustment	43	117
Comprehensive loss	$ (2,507)	$ (826)

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2017	Apr. 30, 2016
Cash flows provided by operating activities:
Net loss	$ (2,550)	$ (943)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	1,217	1,011
Stock-based compensation expense	625	489
Deferred rent expense	(139)	(6)
Deferred income taxes		(12)
Net change in operating assets and liabilities:
Accounts receivable	11,162	17,863
Prepaid expenses and other current assets	(224)	1,242
Other assets	(18)	(45)
Accounts payable	131	(970)
Accrued expenses	(3,890)	(5,750)
Other liabilities	3	36
Deferred revenue	(1,569)	(1,042)
Net cash provided by operating activities	4,748	11,873
Cash flows used in investing activities:
Purchases of property and equipment	(2,320)	(521)
Net cash used in investing activities	(2,320)	(521)
Cash flows used in financing activities:
Proceeds from stock option exercises	99	57
Acquisition of common stock for tax withholding obligations	(15)
Payments of capital lease obligations	(574)	(751)
Net cash used in financing activities	(490)	(694)
Effect of exchange rate changes on cash	140	875
Net increase in cash and cash equivalents	2,078	11,533
Cash and cash equivalents, beginning of period	24,552	27,649
Cash and cash equivalents, end of period	26,630	39,182
Supplemental cash flow disclosures:
Cash paid for interest	16	47
Cash paid for income taxes	1,055	1,137
Supplemental disclosure of non-cash investing activities:
Decrease in unpaid purchases of property and equipment	$ (1,571)	$ (426)

Description of Business

Description of Business	3 Months Ended
	Apr. 30, 2017
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 has recently expanded its technology into the fields of aerospace and oil and gas production. The Company continues to explore the application of its capabilities in other markets, such as 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	3 Months Ended
	Apr. 30, 2017
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 April 30, 2017 and for the three months ended April 30, 2017 and 2016 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, 2017 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, 2017 filed with the Securities and Exchange Commission on March 22, 2017. 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 Though the Company continues to evaluate the impact of its pending adoption of this standard, the Company plans to adopt the standard using the modified retrospective approach with the cumulative effect of initially adopting recognized at the date of adoption. The standard is expected to have a significant impact on the way the Company accounts and contracts for its on-premise software license contracts. Accounting for revenue related to services and ExaCLOUD offerings is expected to remain substantially unchanged due to the over-time nature of such performance obligations. Due to the complexity of certain of the Company’s license contracts, the actual revenue recognition treatment required under the standard may be dependent on contract-specific terms at the time of sale and adoption of the new standard. The Company is also assessing the impact of capitalizing costs associated with ongoing customer contracts, specifically commission payments. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230)-Restricted Cash In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting

Computation of Net Loss Per Sha

Computation of Net Loss Per Share	3 Months Ended
	Apr. 30, 2017
Earnings Per Share [Abstract]
Computation of Net Loss Per Share	3. Computation of Net 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 loss per share: Three Months Ended April 30, 2017 2016 Numerator: Net loss $ (2,550 ) $ (943 ) Denominator: Weighted average common shares outstanding, basic and diluted 14,900,193 14,636,433 Basic and diluted net loss per share $ (0.17 ) $ (0.06 ) The table below represents outstanding options, restricted stock unit awards and warrants that were excluded from the computation of diluted share for the periods indicated because including them would have had an anti-dilutive effect. All of the Company’s outstanding stock options and unvested restricted stock units were anti-dilutive for the three months ended April 30, 2017 and 2016, respectively, due to the net loss incurred by the Company. Three Months Ended April 30, 2017 2016 Options and restricted stock unit awards 2,246,726 1,943,562

Property and Equipment, net

Property and Equipment, net	3 Months Ended
	Apr. 30, 2017
Property Plant And Equipment [Abstract]
Property and Equipment, net	4. Property and Equipment, net Property and equipment, net consists of the following: April 30, 2017 January 31, 2017 Computer software and equipment $ 23,467 $ 23,321 Office equipment and furniture 1,551 1,549 Leasehold improvements 1,634 1,629 Construction-in-process 721 95 Total property and equipment 27,373 26,594 Less accumulated depreciation (13,719 ) (12,566 ) Property and equipment, net $ 13,654 $ 14,028 For the three months ended April 30, 2017 and 2016, depreciation expense was $1,129 and $923, respectively. Included in computer software and equipment and office equipment and furniture is equipment held pursuant to capital leases with costs of $14,834 and $14,820 and accumulated depreciation of $9,875 and $9,266 as of April 30, 2017 and January 31, 2017, respectively.

Accrued Expenses

Accrued Expenses	3 Months Ended
	Apr. 30, 2017
Payables And Accruals [Abstract]
Accrued Expenses	5. Accrued Expenses Accrued expenses consist of the following: April 30, 2017 January 31, 2017 Accrued payroll $ 1,869 $ 2,207 Sales and value added taxes 1,061 2,615 Accrued commissions and bonuses 1,018 2,871 Accrued income taxes payable 590 763 Deferred rent, current portion 533 540 Legal and professional 731 673 Other 637 900 Total accrued expenses $ 6,439 $ 10,569

Deferred Rent

Deferred Rent	3 Months Ended
	Apr. 30, 2017
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: April 30, 2017 January 31, 2017 Leasehold improvement incentive $ 1,518 $ 1,582 Non-cash rent expense 1,275 1,349 Total deferred rent 2,793 2,931 Less current portion included in accrued expenses (533 ) (540 ) Deferred rent, net of current portion $ 2,260 $ 2,391

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Apr. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	7. Fair Value Measurements The provisions of fair value accounting establish a hierarchy of inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability, and are developed based on the best information available in the circumstances. The fair value hierarchy is broken down into three levels based on the source of inputs as follows: 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 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. The following table summarizes the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of April 30, 2017: Total Level 1 Level 2 Level 3 Assets: Money market funds $ 10,071 $ 10,071 $ — $ — The following table summarizes the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of January 31, 2017: Total Level 1 Level 2 Level 3 Assets: Money market funds $ 10,058 $ 10,058 $ — $ —

Acquired Intangible Assets

Acquired Intangible Assets	3 Months Ended
	Apr. 30, 2017
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 April 30, 2017: Cost Accumulated Amortization Net Book Value Intellectual property $ 3,505 $ (1,899 ) $ 1,606 Access to facilities contract 38 (38 ) — Total $ 3,543 $ (1,937 ) $ 1,606 The following table reflects the carrying value of intangible assets as of January 31, 2017: Cost Accumulated Amortization Net Book Value Intellectual property $ 3,505 $ (1,811 ) $ 1,694 Access to facilities contract 38 (38 ) — Total $ 3,543 $ (1,849 ) $ 1,694 Amortization expense of intangible assets was $88 for each of the three months ended April 30, 2017 and 2016.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Apr. 30, 2017
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 April 30, 2017 and January 31, 2017, the Company has not recorded any liabilities for these indemnities.

Stockholders_ Equity and Stock-

Stockholders’ Equity and Stock-Based Compensation	3 Months Ended
	Apr. 30, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stockholders’ Equity and Stock-Based Compensation	10. Stockholders’ Equity and Stock-Based Compensation Adoption of Accounting Pronouncement During the first quarter of fiscal year 2018, the Company adopted ASU 2016-09, Compensation – Stock Compensation (Topic 718) – Improvements to Employee Share-Based Payment Accounting As part of the adoption of this standard, the Company has elected to prospectively account for forfeitures when they occur. As a result, the Company adjusted its opening retained earnings balance as of February 1, 2017 to reflect the additional expense that would have been recognized if the Company had not been applying an estimated forfeiture rate in prior periods. The resulting adjustment was an increase to accumulated deficit of $34, with the offset recorded to additional paid-in capital. Stock-Based Compensation Expense 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: Three Months Ended April 30, 2017 2016 Expected life (years) 6.25 6.25 Risk-free interest rate 2.05% 1.54% Expected volatility 34.1% 35.3% 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 months ended April 30, 2017 and 2016 was $4.84 and $4.18, respectively. In April 2017, the Company granted time-based restricted stock units to certain executives for a total of 337,000 shares of common stock, which will vest over a two-year period. The weighted-average grant date fair value per share for time-based restricted stock units granted in the three months ended April 30, 2017 was $13.01. 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 will ultimately vest. Total stock-based compensation expense related to stock options and restricted stock units issued by the Company is as follows: Three Months Ended April 30, 2017 2016 Cost of revenues $ 37 $ 44 Sales and marketing 71 90 Research and development 271 183 General and administrative 246 172 Total $ 625 $ 489 The total unrecognized compensation cost related to all outstanding stock options and restricted stock units is $6,752 at April 30, 2017. This amount is expected to be recognized over a weighted-average period of 1.96 years.

Income Taxes

Income Taxes	3 Months Ended
	Apr. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	11. Income Taxes For the three months ended April 30, 2017, the Company’s income tax benefit was $133. For the three months ended April 30, 2016, the income tax provision was $120. Each of the benefit and provision 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, 2012. However, carryforward attributes that were generated in tax years ending prior to January 31, 2013 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 April 30, 2017, 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. During the quarter ended April 30, 2017, the Company adopted ASU 2016-09, which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes. Even though the Company had $1,199 of previously unrecognized excess tax benefits attributable to stock option exercises as of January 31, 2017, the adoption did not result in any adjustment to accumulated deficit in the current period because of the Company’s valuation allowance against the full of amount of the Company’s United States deferred tax assets.

Geographic Information

Geographic Information	3 Months Ended
	Apr. 30, 2017
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 April 30, 2017 2016 (1) United States $ 5,390 $ 4,307 Germany 2,863 2,549 Japan 3,296 3,426 France 610 1,887 United Kingdom 1,556 1,644 Other 2,841 2,972 $ 16,556 $ 16,785 (1) For comparative purposes, certain prior year amounts have been reclassified to conform to current period presentation. These changes had no impact on previously reported results of operations or stockholders’ equity. 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: April 30, January 31, 2017 2017 United States $ 13,094 $ 13,412 France 186 222 Germany 140 145 Japan 120 128 Other 114 121 $ 13,654 $ 14,028

Summary of Significant Accoun18

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Apr. 30, 2017
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 April 30, 2017 and for the three months ended April 30, 2017 and 2016 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, 2017 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, 2017 filed with the Securities and Exchange Commission on March 22, 2017.
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 Though the Company continues to evaluate the impact of its pending adoption of this standard, the Company plans to adopt the standard using the modified retrospective approach with the cumulative effect of initially adopting recognized at the date of adoption. The standard is expected to have a significant impact on the way the Company accounts and contracts for its on-premise software license contracts. Accounting for revenue related to services and ExaCLOUD offerings is expected to remain substantially unchanged due to the over-time nature of such performance obligations. Due to the complexity of certain of the Company’s license contracts, the actual revenue recognition treatment required under the standard may be dependent on contract-specific terms at the time of sale and adoption of the new standard. The Company is also assessing the impact of capitalizing costs associated with ongoing customer contracts, specifically commission payments. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230)-Restricted Cash In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting Adoption of Accounting Pronouncement During the first quarter of fiscal year 2018, the Company adopted ASU 2016-09, Compensation – Stock Compensation (Topic 718) – Improvements to Employee Share-Based Payment Accounting As part of the adoption of this standard, the Company has elected to prospectively account for forfeitures when they occur. As a result, the Company adjusted its opening retained earnings balance as of February 1, 2017 to reflect the additional expense that would have been recognized if the Company had not been applying an estimated forfeiture rate in prior periods. The resulting adjustment was an increase to accumulated deficit of $34, with the offset recorded to additional paid-in capital.

Computation of Net Loss Per S19

Computation of Net Loss Per Share (Tables)	3 Months Ended
	Apr. 30, 2017
Earnings Per Share [Abstract]
Calculation of Basic and Diluted Net Loss Per Share	The following summarizes the calculation of basic and diluted net loss per share: Three Months Ended April 30, 2017 2016 Numerator: Net loss $ (2,550 ) $ (943 ) Denominator: Weighted average common shares outstanding, basic and diluted 14,900,193 14,636,433 Basic and diluted net loss per share $ (0.17 ) $ (0.06 )
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 share for the periods indicated because including them would have had an anti-dilutive effect. All of the Company’s outstanding stock options and unvested restricted stock units were anti-dilutive for the three months ended April 30, 2017 and 2016, respectively, due to the net loss incurred by the Company. Three Months Ended April 30, 2017 2016 Options and restricted stock unit awards 2,246,726 1,943,562

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	3 Months Ended
	Apr. 30, 2017
Property Plant And Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment, net consists of the following: April 30, 2017 January 31, 2017 Computer software and equipment $ 23,467 $ 23,321 Office equipment and furniture 1,551 1,549 Leasehold improvements 1,634 1,629 Construction-in-process 721 95 Total property and equipment 27,373 26,594 Less accumulated depreciation (13,719 ) (12,566 ) Property and equipment, net $ 13,654 $ 14,028

Accrued Expenses (Tables)

Accrued Expenses (Tables)	3 Months Ended
	Apr. 30, 2017
Payables And Accruals [Abstract]
Accrued Expenses	Accrued expenses consist of the following: April 30, 2017 January 31, 2017 Accrued payroll $ 1,869 $ 2,207 Sales and value added taxes 1,061 2,615 Accrued commissions and bonuses 1,018 2,871 Accrued income taxes payable 590 763 Deferred rent, current portion 533 540 Legal and professional 731 673 Other 637 900 Total accrued expenses $ 6,439 $ 10,569

Deferred Rent (Tables)

Deferred Rent (Tables)	3 Months Ended
	Apr. 30, 2017
Text Block [Abstract]
Deferred Rent	Deferred rent consists of the following: April 30, 2017 January 31, 2017 Leasehold improvement incentive $ 1,518 $ 1,582 Non-cash rent expense 1,275 1,349 Total deferred rent 2,793 2,931 Less current portion included in accrued expenses (533 ) (540 ) Deferred rent, net of current portion $ 2,260 $ 2,391

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Apr. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value Hierarchy for Financial Assets and Liabilities Measured at Fair Value on Recurring Basis	The following table summarizes the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of April 30, 2017: Total Level 1 Level 2 Level 3 Assets: Money market funds $ 10,071 $ 10,071 $ — $ — The following table summarizes the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of January 31, 2017: Total Level 1 Level 2 Level 3 Assets: Money market funds $ 10,058 $ 10,058 $ — $ —

Acquired Intangible Assets (Tab

Acquired Intangible Assets (Tables)	3 Months Ended
	Apr. 30, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Carrying Value of Intangible Assets	The following table reflects the carrying value of intangible assets as of April 30, 2017: Cost Accumulated Amortization Net Book Value Intellectual property $ 3,505 $ (1,899 ) $ 1,606 Access to facilities contract 38 (38 ) — Total $ 3,543 $ (1,937 ) $ 1,606 The following table reflects the carrying value of intangible assets as of January 31, 2017: Cost Accumulated Amortization Net Book Value Intellectual property $ 3,505 $ (1,811 ) $ 1,694 Access to facilities contract 38 (38 ) — Total $ 3,543 $ (1,849 ) $ 1,694

Stockholders_ Equity and Stoc25

Stockholders’ Equity and Stock-Based Compensation (Tables)	3 Months Ended
	Apr. 30, 2017
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 April 30, 2017 2016 Cost of revenues $ 37 $ 44 Sales and marketing 71 90 Research and development 271 183 General and administrative 246 172 Total $ 625 $ 489
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: Three Months Ended April 30, 2017 2016 Expected life (years) 6.25 6.25 Risk-free interest rate 2.05% 1.54% Expected volatility 34.1% 35.3% Expected dividend yield 0.0% 0.0%

Geographic Information (Tables)

Geographic Information (Tables)	3 Months Ended
	Apr. 30, 2017
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 April 30, 2017 2016 (1) United States $ 5,390 $ 4,307 Germany 2,863 2,549 Japan 3,296 3,426 France 610 1,887 United Kingdom 1,556 1,644 Other 2,841 2,972 $ 16,556 $ 16,785 (1) For comparative purposes, certain prior year amounts have been reclassified to conform to current period presentation. These changes had no impact on previously reported results of operations or stockholders’ equity.
Net Long-Lived Assets by Principal Geographic Area	Net long-lived assets by principal geographic areas were as follows: April 30, January 31, 2017 2017 United States $ 13,094 $ 13,412 France 186 222 Germany 140 145 Japan 120 128 Other 114 121 $ 13,654 $ 14,028

Computation of Net Loss Per S27

Computation of Net Loss Per Share - Calculation of Basic and Diluted Net Loss Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Apr. 30, 2017	Apr. 30, 2016
Numerator:
Net loss	$ (2,550)	$ (943)
Denominator:
Weighted average common shares outstanding, basic and diluted	14,900,193	14,636,433
Basic and diluted net loss per share	$ (0.17)	$ (0.06)

Computation of Net Loss Per S28

Computation of Net 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
	Apr. 30, 2017	Apr. 30, 2016
Earnings Per Share [Abstract]
Options and restricted stock unit awards	2,246,726	1,943,562

Property and Equipment, Net - S

Property and Equipment, Net - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands	Apr. 30, 2017	Jan. 31, 2017
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 27,373	$ 26,594
Less accumulated depreciation	(13,719)	(12,566)
Property and equipment, net	13,654	14,028
Computer Software and Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	23,467	23,321
Office Equipment and Furniture [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	1,551	1,549
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	1,634	1,629
Construction in Process [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 721	$ 95

Property and Equipment, Net - A

Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2017	Apr. 30, 2016	Jan. 31, 2017
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense	$ 1,129	$ 923
Cost of equipment held pursuant to capital leases	14,834		$ 14,820
Accumulated amortization	13,719		12,566
Assets Held under Capital Leases [Member]
Property, Plant and Equipment [Line Items]
Accumulated amortization	$ 9,875		$ 9,266

Accrued Expenses - Accrued Expe

Accrued Expenses - Accrued Expenses (Detail) - USD ($) $ in Thousands	Apr. 30, 2017	Jan. 31, 2017
Payables And Accruals [Abstract]
Accrued payroll	$ 1,869	$ 2,207
Sales and value added taxes	1,061	2,615
Accrued commissions and bonuses	1,018	2,871
Accrued income taxes payable	590	763
Deferred rent, current portion	533	540
Legal and professional	731	673
Other	637	900
Total accrued expenses	$ 6,439	$ 10,569

Deferred Rent - Deferred Rent (

Deferred Rent - Deferred Rent (Detail) - USD ($) $ in Thousands	Apr. 30, 2017	Jan. 31, 2017
Deferred Revenue Disclosure [Abstract]
Leasehold improvement incentive	$ 1,518	$ 1,582
Non-cash rent expense	1,275	1,349
Total deferred rent	2,793	2,931
Less current portion included in accrued expenses	(533)	(540)
Deferred rent, net of current portion	$ 2,260	$ 2,391

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value Hierarchy for Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Recurring Basis [Member] - Money Market Funds [Member] - USD ($) $ in Thousands	Apr. 30, 2017	Jan. 31, 2017
Assets:
Money market funds	$ 10,071	$ 10,058
Level 1 [Member]
Assets:
Money market funds	$ 10,071	$ 10,058

Acquired Intangible Assets - Ca

Acquired Intangible Assets - Carrying Value of Intangible Assets (Detail) - USD ($) $ in Thousands	Apr. 30, 2017	Jan. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Cost	$ 3,543	$ 3,543
Accumulated Amortization	(1,937)	(1,849)
Net Book Value	1,606	1,694
Intellectual Property [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	3,505	3,505
Accumulated Amortization	(1,899)	(1,811)
Net Book Value	1,606	1,694
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
	Apr. 30, 2017	Apr. 30, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
Intangible assets amortization expense	$ 88	$ 88

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($)	Apr. 30, 2017	Jan. 31, 2017
Commitments And Contingencies Disclosure [Abstract]
Recorded liabilities for guarantees and indemnities	$ 0	$ 0

Stockholders' Equity and Stock-

Stockholders' Equity and Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended
	Apr. 30, 2017	Apr. 30, 2017	Apr. 30, 2016	Feb. 01, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost	$ 6,752	$ 6,752
Weighted average period over which unrecognized compensation cost is expected to be recognized		1 year 11 months 16 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		$ 4.84	$ 4.18
Time-Based Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date per share for stock options		$ 13.01
Time-Based Restricted Stock Units [Member] | Certain Executives [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted	337,000
Vesting period	2 years
ASU 2016-09 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase to accumulated deficit with offset to additional paid-in-capital				$ 34

Stockholders' Equity and Stoc38

Stockholders' Equity and 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]	3 Months Ended
	Apr. 30, 2017	Apr. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life (years)	6 years 3 months	6 years 3 months
Risk-free interest rate	2.05%	1.54%
Expected volatility	34.10%	35.30%
Expected dividend yield	0.00%	0.00%

Stockholders' Equity and Stoc39

Stockholders' Equity and Stock-Based Compensation - Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2017	Apr. 30, 2016
Stock Based Compensation [Line Items]
Stock-based compensation expense	$ 625	$ 489
Cost of Revenues [Member]
Stock Based Compensation [Line Items]
Stock-based compensation expense	37	44
Sales and Marketing [Member]
Stock Based Compensation [Line Items]
Stock-based compensation expense	71	90
Research and Development [Member]
Stock Based Compensation [Line Items]
Stock-based compensation expense	271	183
General and Administrative [Member]
Stock Based Compensation [Line Items]
Stock-based compensation expense	$ 246	$ 172

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Apr. 30, 2017	Apr. 30, 2016	Jan. 31, 2017
Income Tax Disclosure [Abstract]
(Benefit) provision for income taxes	$ (133)	$ 120
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, 2012. However, carryforward attributes that were generated in tax years ending prior to January 31, 2013 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
Unrecognized excess tax benefits attributable to stock option exercises			$ 1,199

Geographic Information - Revenu

Geographic Information - Revenues by Geographic Area (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2017	Apr. 30, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 16,556	$ 16,785
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	5,390	4,307
Germany [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	2,863	2,549
Japan [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	3,296	3,426
France [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	610	1,887
United Kingdom [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	1,556	1,644
Other [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 2,841	$ 2,972

Geographic Information - Net Lo

Geographic Information - Net Long-Lived Assets by Principal Geographic Area (Detail) - USD ($) $ in Thousands	Apr. 30, 2017	Jan. 31, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	$ 13,654	$ 14,028
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	13,094	13,412
France [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	186	222
Germany [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	140	145
Japan [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	120	128
Other [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	$ 114	$ 121