Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 31, 2019 | Aug. 31, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 31, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | OOMA | |
Entity Registrant Name | Ooma Inc | |
Entity Central Index Key | 0001327688 | |
Current Fiscal Year End Date | --01-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Common Stock, Shares Outstanding | 21,100,000 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-37493 | |
Entity Tax Identification Number | 061713274 | |
Entity Address, Address Line One | 525 Almanor Avenue | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | Sunnyvale | |
Entity Address, State or Province | California | |
Entity Address, Postal Zip Code | 94085 | |
City Area Code | 650 | |
Local Phone Number | 566-6600 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 14,018 | $ 15,370 |
Short-term investments | 14,637 | 27,253 |
Accounts receivable, net | 4,683 | 3,723 |
Inventories | 11,266 | 10,117 |
Other current assets | 7,656 | 5,450 |
Total current assets | 52,260 | 61,913 |
Property and equipment, net | 5,017 | 4,563 |
Operating lease right-of-use assets | 3,286 | |
Intangible assets, net | 8,226 | 2,635 |
Goodwill | 4,264 | 3,898 |
Other assets | 6,245 | 5,379 |
Total assets | 79,298 | 78,388 |
Current liabilities: | ||
Accounts payable | 10,697 | 10,231 |
Accrued expenses and other current liabilities | 19,570 | 19,048 |
Deferred revenue | 16,044 | 15,443 |
Total current liabilities | 46,311 | 44,722 |
Long-term operating lease liabilities | 1,823 | |
Other liabilities | 353 | 619 |
Total liabilities | 48,487 | 45,341 |
Commitments and contingencies (Note 11) | ||
Stockholders’ equity: | ||
Preferred stock $0.0001 par value: 10 million shares authorized; none issued and outstanding | ||
Common stock $0.0001 par value: 100 million shares authorized; 21.1 million and 20.3 million shares issued and outstanding, respectively | 4 | 4 |
Additional paid-in capital | 146,319 | 138,848 |
Accumulated other comprehensive income (loss) | 6 | (10) |
Accumulated deficit | (115,518) | (105,795) |
Total stockholders’ equity | 30,811 | 33,047 |
Total liabilities and stockholders’ equity | $ 79,298 | $ 78,388 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) - $ / shares | Jul. 31, 2019 | Jan. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 21,100,000 | 20,300,000 |
Common stock, shares outstanding | 21,100,000 | 20,300,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Revenue: | ||||
Total revenue | $ 37,343 | $ 31,681 | $ 71,350 | $ 61,903 |
Cost of revenue: | ||||
Total cost of revenue | 15,023 | 12,908 | 28,597 | 25,192 |
Gross profit | 22,320 | 18,773 | 42,753 | 36,711 |
Operating expenses: | ||||
Sales and marketing | 12,834 | 10,499 | 24,293 | 19,394 |
Research and development | 9,597 | 8,443 | 18,479 | 16,965 |
General and administrative | 5,168 | 3,995 | 10,280 | 8,447 |
Total operating expenses | 27,599 | 22,937 | 53,052 | 44,806 |
Loss from operations | (5,279) | (4,164) | (10,299) | (8,095) |
Interest and other income, net | 280 | 198 | 538 | 375 |
Loss before income taxes | (4,999) | (3,966) | (9,761) | (7,720) |
Income tax benefit | 16 | 62 | 38 | 131 |
Net loss | $ (4,983) | $ (3,904) | $ (9,723) | $ (7,589) |
Net loss per share of common stock: | ||||
Basic and diluted | $ (0.24) | $ (0.20) | $ (0.47) | $ (0.39) |
Weighted-average shares of common stock outstanding: | ||||
Basic and diluted | 20,849,935 | 19,673,658 | 20,667,905 | 19,499,677 |
Subscription and services | ||||
Revenue: | ||||
Total revenue | $ 34,469 | $ 28,426 | $ 65,581 | $ 55,738 |
Cost of revenue: | ||||
Total cost of revenue | 11,213 | 8,818 | 21,024 | 17,592 |
Product and other | ||||
Revenue: | ||||
Total revenue | 2,874 | 3,255 | 5,769 | 6,165 |
Cost of revenue: | ||||
Total cost of revenue | $ 3,810 | $ 4,090 | $ 7,573 | $ 7,600 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (9,723) | $ (7,589) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation expense | 6,393 | 5,076 |
Depreciation and amortization of capital expenditures | 1,347 | 1,062 |
Amortization of acquired intangible assets | 516 | 343 |
Non-cash operating lease expense | 899 | |
Other | (224) | (246) |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 43 | (430) |
Inventories and deferred inventory costs | (1,389) | (1,476) |
Prepaid expenses and other assets | (2,303) | (1,633) |
Accounts payable and other liabilities | (2,139) | 3,884 |
Deferred revenue | 425 | 509 |
Net cash used in operating activities | (6,155) | (500) |
Cash flows from investing activities: | ||
Purchases of short-term investments | (19,196) | (13,988) |
Proceeds from maturities and sales of short-term investments | 32,046 | 29,762 |
Capital expenditures | (1,632) | (855) |
Business acquisition, net of cash assumed | (7,073) | (2,402) |
Net cash provided by investing activities | 4,145 | 12,517 |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 1,808 | 1,644 |
Payment of acquisition-related holdback | (420) | |
Net cash provided by financing activities | 658 | 444 |
Net (decrease) increase in cash and cash equivalents | (1,352) | 12,461 |
Cash and cash equivalents at beginning of period | 15,370 | 4,483 |
Cash and cash equivalents at end of period | 14,018 | 16,944 |
Restricted Stock Units (RSUs) | ||
Cash flows from financing activities: | ||
Shares repurchased for tax withholdings on vesting of restricted stock units ("RSU") | $ (730) | $ (1,200) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common stock and APIC | [1] | AOCI | [2] | Accumulated Deficit |
BALANCE at Jan. 31, 2018 | $ 37,068 | $ 128,083 | $ (84) | $ (90,931) | ||
Issuance of common stock under equity-based plans | 1,205 | 1,205 | ||||
Shares repurchased for tax withholdings on RSU vesting | (759) | (759) | ||||
Issuance of common stock for business acquisition | 390 | 390 | ||||
Stock-based compensation | 2,314 | 2,314 | ||||
Changes in comprehensive income (loss) | (1) | (1) | ||||
Cumulative adjustment upon adoption of Topic 606 | (292) | (292) | ||||
Net loss | (3,685) | (3,685) | ||||
BALANCE at Apr. 30, 2018 | 36,240 | 131,233 | (85) | (94,908) | ||
BALANCE at Jan. 31, 2018 | 37,068 | 128,083 | (84) | (90,931) | ||
Net loss | (7,589) | |||||
BALANCE at Jul. 31, 2018 | 35,181 | 134,042 | (49) | (98,812) | ||
BALANCE at Apr. 30, 2018 | 36,240 | 131,233 | (85) | (94,908) | ||
Issuance of common stock under equity-based plans | 488 | 488 | ||||
Shares repurchased for tax withholdings on RSU vesting | (441) | (441) | ||||
Stock-based compensation | 2,762 | 2,762 | ||||
Changes in comprehensive income (loss) | 36 | 36 | ||||
Net loss | (3,904) | (3,904) | ||||
BALANCE at Jul. 31, 2018 | 35,181 | 134,042 | (49) | (98,812) | ||
BALANCE at Jan. 31, 2019 | 33,047 | 138,852 | (10) | (105,795) | ||
Issuance of common stock under equity-based plans | 1,454 | 1,454 | ||||
Shares repurchased for tax withholdings on RSU vesting | (730) | (730) | ||||
Stock-based compensation | 2,982 | 2,982 | ||||
Changes in comprehensive income (loss) | 11 | 11 | ||||
Net loss | (4,740) | (4,740) | ||||
BALANCE at Apr. 30, 2019 | 32,024 | 142,558 | 1 | (110,535) | ||
BALANCE at Jan. 31, 2019 | 33,047 | 138,852 | (10) | (105,795) | ||
Net loss | (9,723) | |||||
BALANCE at Jul. 31, 2019 | 30,811 | 146,323 | 6 | (115,518) | ||
BALANCE at Apr. 30, 2019 | 32,024 | 142,558 | 1 | (110,535) | ||
Issuance of common stock under equity-based plans | 354 | 354 | ||||
Stock-based compensation | 3,411 | 3,411 | ||||
Changes in comprehensive income (loss) | 5 | 5 | ||||
Net loss | (4,983) | (4,983) | ||||
BALANCE at Jul. 31, 2019 | $ 30,811 | $ 146,323 | $ 6 | $ (115,518) | ||
[1] | Additional paid-in capital | |||||
[2] | Accumulated other comprehensive income (loss) |
Overview and Basis of Presentat
Overview and Basis of Presentation | 6 Months Ended |
Jul. 31, 2019 | |
Accounting Policies [Abstract] | |
Overview and Basis of Presentation | Ooma, Inc. and its wholly-owned subsidiaries (collectively, “Ooma” or the “Company”) create new communications experiences for businesses and consumers, delivered from its smart cloud-based SaaS platform. The Company was founded in 2003 and is headquartered in Sunnyvale, California. The Company’s fiscal year ends on January 31. References to fiscal 2020 and fiscal 2019 refer to the fiscal year ending January 31, 2020 and the fiscal year ended January 31, 2019, respectively. In May 2019, the Company acquired Broadsmart Global, Inc. (“Broadsmart”), a provider of cloud-based unified-communications-as-a-service (“UCaaS”) solutions based in Florida. Note 12: Business Acquisition . Principles of Presentation and Consolidation These unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended January 31, 2019 (“Annual Report”). These financial statements have been prepared on the same basis as the Company’s annual financial statements and, in the opinion of management, reflect The condensed consolidated financial statements include accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation. Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the Company’s condensed consolidated financial statements and notes thereto. Significant estimates include, but are not limited to, those related to revenue recognition, inventory valuation, valuation of goodwill and intangible assets, deferred sales commissions, operating lease assets and liabilities, regulatory fees and indirect tax accruals, loss contingencies, stock-based compensation, income taxes (including valuation allowances) and fair value measurements. Estimates are based on historical experience, where applicable, and other assumptions believed to be reasonable by management. These estimates are based on information available as of the date of the condensed consolidated financial statements, and assumptions are inherently subjective in nature. Therefore, actual results could differ from management’s estimates. Comprehensive Loss. For all periods presented, comprehensive loss approximated net loss in the condensed consolidated statements of operations and differences were not material. Therefore, the condensed consolidated statements of comprehensive loss have been omitted. Recently Adopted Accounting Standards Leases . On February 1, 2019, the Company adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) which superseded the guidance in Topic 840 and required the Company to recognize operating leased assets and corresponding liabilities on the balance sheet and to provide enhanced disclosures. The Company adopted Topic 842 using the modified retrospective transition method by applying the new standard to all leases existing at the date of initial adoption and not restating comparative periods. The Company elected the package of practical expedients, which among other things, allowed it to carry forward its historical lease classification and its assessment of whether any existing leases as of the date of adoption are or contain leases. Adoption on February 1, 2019 resulted in the recognition of $4.1 million of operating right-of-use “ROU” assets and $4.3 million of operating lease liabilities on the condensed consolidated balance sheet, with no adjustment to accumulated deficit. The difference of $0.2 million represented deferred rent for leases that existed as of the date of adoption, which was an offset to the opening balance of ROU assets. Adoption of the new standard did not materially impact the Company’s consolidated statements of operations, consolidated statements of stockholders’ equity and consolidated statements of cash flows. The Company has implemented policies, processes and controls to support the standard's measurement and disclosure requirements. See Significant Accounting Policies – Leases Operating Leases Stock-based compensation. The Company adopted ASU 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting in the first quarter of fiscal 2020, which expanded the scope of Topic 718 to include and simplify financial reporting for non-employee stock-based payments. Under the amended standard, most of the guidance on stock compensation for non-employees became aligned with the requirements for employees. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. Significant Accounting Policies – Leases On February 1, 2019, the Company adopted Topic 842 using the modified retrospective transition method by applying the new standard to all leases existing at the date of initial adoption. Comparative prior period amounts have not been adjusted and continue to be reported in accordance with historical accounting under Topic 840. Under Topic 842, the Company determines if an arrangement is a lease at inception. The Company’s leases primarily consist of real property and are classified as operating leases. The Company does not have any finance leases nor material arrangements as a lessor. ROU assets and lease liabilities are recognized at the lease commencement date based upon the present value of the remaining lease payments over the lease term. The Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Lease expense for lease payments is recognized on a straight-line basis over the term of the lease. Lease terms may include options to renew or extend when it is reasonably certain that the option will be exercised. Lease agreements that contain both lease and non-lease components are accounted for as a single component. Short-term leases with an initial term of twelve months or less are not recorded on the balance sheet. |
Revenue and Deferred Revenue
Revenue and Deferred Revenue | 6 Months Ended |
Jul. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue and Deferred Revenue | Note 2: Revenue and Deferred Revenue The Company’s revenue for the three and six months ended July 31, 2019 and 2018 are presented in accordance with the provisions under Topic 606. The Company derives its revenue from two sources: Subscription and Services Revenue is derived primarily from recurring subscription fees related to service plans such as Ooma Business, Ooma Residential and other communications services. Subscription revenue is recognized ratably over the contractual service term. Product and Other Revenue is generated from the sale of on-premise appliances and end-point devices, including shipping and handling fees for direct customers, and to a lesser extent from porting fees that enable customers to transfer their existing phone numbers. Revenue is recognized at the point in time that control transfers which is typically when the product is delivered or when all customer contractual provisions have been met, if any. R efer to the Company’s Annual Report for additional information regarding its revenue recognition policy. Revenue disaggregated by revenue source consisted of the following (in thousands): Three Months Ended Six Months Ended July 31, 2019 July 31, 2018 July 31, 2019 July 31, 2018 Subscription and services revenue $ 34,469 $ 28,426 $ 65,581 $ 55,738 Product and other revenue 2,874 3,255 5,769 6,165 Total revenue $ 37,343 $ 31,681 $ 71,350 $ 61,903 T he Company derived approximately 59% and 69% of its total revenue from Ooma Residential and approximately 38% and 27% from Ooma Business for the three months ended July 31, 2019 and 2018, respectively. No individual country outside of the United States represented 10% or more of total revenue for the periods presented. No single customer accounted for 10% or more of total revenue for the periods presented. Customers who represented 10% or more of the Company's net accounts receivable balance were as follows: As of July 31, 2019 January 31, 2019 Customer A 16 % — Customer B 11 % 15 % Deferred Revenue . Deferred revenue primarily consists of billings or payments received in advance of meeting revenue recognition criteria. Deferred services revenue is recognized on a ratable basis over the term of the contract as the services are provided. For all arrangements, any revenue that has been deferred and is expected to be recognized beyond one year is classified in long term liabilities on the condensed consolidated balance sheets. Deferred revenue consisted of the following (in thousands): As of July 31, 2019 January 31, 2019 Subscription and services $ 16,205 $ 15,682 Product and other 87 68 Total deferred revenue 16,292 15,750 Less: current deferred revenue 16,044 15,443 Non-current deferred revenue included in other long-term liabilities $ 248 $ 307 During the three and six months ended July 31, 2019, the Company recognized revenue of approximately $3.4 million and $11.8 million, respectively, that was included in the corresponding deferred revenue balance as of January 31, 2019. Remaining Performance Obligations. As of July 31, 2019, contract revenue that has not yet been recognized for open contracts with an original expected length of greater than one year was $0. 2 million. This amount includes both long-term deferred revenue and any non-cancelable contract amounts that will be invoiced and recognized as revenue in future periods . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jul. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 3: Fair Value Measurements The Company records its financial assets and liabilities at fair value. The Company estimates and categorizes fair value by applying the following hierarchy: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2: Observable prices based on inputs not quoted in active markets, but are corroborated by market data. Level 3: Unobservable inputs that are supported by little or no market activity. The Company’s financial assets that are measured at fair value on a recurring basis by level within the fair value hierarchy were as follows (in thousands): Balance as of July 31, 2019 Balance as of January 31, 2019 Level 1 Level 2 Total Level 1 Level 2 Total Assets: Cash and cash equivalents: Money market funds $ 6,853 $ — $ 6,853 $ 5,951 $ — $ 5,951 U.S. government securities 1,996 — 1,996 — — — Commercial paper — 1,498 1,498 — 5,429 5,429 Total cash equivalents $ 8,849 $ 1,498 $ 10,347 $ 5,951 $ 5,429 $ 11,380 Cash 3,671 3,990 Total cash and cash equivalents $ 14,018 $ 15,370 Short-term investments: U.S. government securities $ 5,180 $ — $ 5,180 $ 11,088 $ — $ 11,088 Corporate debt securities — 2,384 2,384 — 4,735 4,735 Commercial paper — 5,926 5,926 — 8,253 8,253 U.S. agency securities — — — — 990 990 Asset-backed securities — 1,147 1,147 — 2,187 2,187 Total short-term investments $ 5,180 $ 9,457 $ 14,637 $ 11,088 $ 16,165 $ 27,253 The Company classifies its cash equivalents and short-term investments within Level 1 or Level 2 because it uses quoted market prices or alternative pricing sources and models utilizing market observable inputs to determine their fair value. The amortized cost of cash equivalents and short-term investments approximated their fair value and there were no material realized or unrealized gains or losses, either individually or in the aggregate, and no other-than-temporary impairments. As of July 31, 2019 and January 31, 2019, the Company had no material Level 3 assets or liabilities and there have been no transfers between levels. |
Balance Sheet Components
Balance Sheet Components | 6 Months Ended |
Jul. 31, 2019 | |
Balance Sheet Components [Abstract] | |
Balance Sheet Components | Note 4: Balance Sheet Components The following sections and tables provide details of selected balance sheet items (in thousands): Inventories As of July 31, 2019 January 31, 2019 Finished goods $ 8,174 $ 7,567 Raw materials 3,092 2,550 Total inventory $ 11,266 $ 10,117 Other assets As of July 31, 2019 January 31, 2019 Prepaid expenses $ 2,566 $ 2,681 Deferred sales commissions, current 1,735 1,081 Convertible note receivable (1) 1,382 — Deferred inventory costs 632 334 Other current assets 1,341 1,354 Total other current assets $ 7,656 $ 5,450 Deferred sales commissions, non-current $ 5,247 $ 3,387 Convertible note receivable (1) — 1,315 Other non-current assets 998 677 Total other non-current assets $ 6,245 $ 5,379 (1) Convertible note receivable from Global Telecomm Corporation was reclassified from non-current assets to current assets as of July 31, 2019. Customer . The Company capitalizes a significant portion of its sales commission costs as an incremental cost of obtaining customer contracts and amortizes to sales and marketing expense over an expected benefit period of five years. Amortization expense for deferred sales commissions was $0.4 million and $0.1 million for the three months ended July 31, 2019 and 2018, respectively, and $0.8 million and $0.2 million for the six months ended July 31, 2019 and 2018, respectively. To date, there have been no impairment losses related to the costs capitalized . Global In December 2018, the Company invested $1.3 million in cash to Global Telecomm Corporation, a small privately-held technology company, in exchange for an 18-month convertible promissory note, bearing interest at 10% annually. The principal and unpaid accrued interest on the promissory note will convert to shares of GTC common or preferred stock upon the occurrence of certain future events. As of July 31, 2019 and January 31, 2019, the Company did not hold any shares of GTC common or preferred stock. The Company has partnered with GTC on certain research and development and inventory procurement activities. The Company is required to consolidate the assets and liabilities of variable interest entities (“VIEs”) in which it is deemed to be the primary beneficiary. GTC is considered a VIE because, among other factors, it lacks sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties. The Company’s convertible promissory note issued by GTC represents a variable interest. However, the Company does not participate in the day-to-day operating decisions or other decisions that would allow it to control GTC, and therefore, the Company is not considered the primary beneficiary and is not required to consolidate GTC’s financial statements in Ooma’s financial statements. As of July 31, 2019 and January 31, 2019, the Company’s maximum exposure to loss was equal to the carrying value of its convertible note receivable, including accrued interest. For all periods presented, the Company held no other variable interests in VIEs. As a result of the Company’s investment, GTC is also a related party of Ooma. During the three and six months ended July 31, 2019, the Company procured certain raw material inventories from GTC that amounted to approximately $0.2 million and $0.4 million, respectively. As of July 31, 2019 and January 31, 2019, the Company recorded prepaid inventory deposits to GTC of $0.4 million and zero, respectively, included in other current assets on the condensed consolidated balance sheet. As of July 31, 2019 and January 31, 2019, the Company’s non-cancelable purchase commitments with GTC were $2.8 million and zero, respectively. Accrued expenses As of July 31, 2019 January 31, 2019 Payroll and related expenses $ 7,005 $ 7,926 Regulatory fees and taxes 5,921 5,645 Short-term operating lease liabilities (1) 1,677 — Acquisition-related consideration 228 925 Other 4,739 4,552 Total accrued expenses $ 19,570 $ 19,048 (1) The Company adopted Topic 842, the new accounting standard for leasing arrangements on February 1, 2019. See Note 6: Operating Leases below. |
Acquired Intangible Assets and
Acquired Intangible Assets and Goodwill | 6 Months Ended |
Jul. 31, 2019 | |
Intangible Assets Net Excluding Goodwill [Abstract] | |
Acquired Intangible Assets and Goodwill | Note 5: Acquired Intangible Assets and Goodwill The carrying amount of goodwill was $4.3 million and $3.9 million as of July 31, 2019 and January 31, 2019, respectively. The Company recognized intangibles of $6.1 million and goodwill of $0.4 million in connection with the acquisition of Broadsmart in May 2019. See Note 12: Business Acquisitions The gross value, accumulated amortization and carrying values of intangible assets were as follows (in thousands): As of July 31, 2019 As of January 31, 2019 Gross Value Accumulated Amortization Carrying Value Gross Value Accumulated Amortization Carrying Value Customer relationships $ 6,735 $ (387 ) $ 6,348 $ 902 $ (157 ) $ 745 Developed technology 2,716 (1,354 ) 1,362 2,716 (1,121 ) 1,595 Trade names 725 (215 ) 510 451 (166 ) 285 Patents and licenses 714 (708 ) 6 714 (704 ) 10 Total intangible assets $ 10,890 $ (2,664 ) $ 8,226 $ 4,783 $ (2,148 ) $ 2,635 Amortization expense was $0.5 million and $0.3 million for the six months ended July 31, 2019 and 2018, respectively At July 31, 2019, the estimated future amortization expense for intangible assets was as follows (in thousands): Fiscal Years Ending January 31, Total 2020 - remainder of fiscal year $ 766 2021 1,530 2022 1,527 2023 1,500 2024 940 2025 and thereafter 1,963 Total $ 8,226 |
Operating Leases
Operating Leases | 6 Months Ended |
Jul. 31, 2019 | |
Leases [Abstract] | |
Operating Leases | Note 6: Operating Leases The Company leases its headquarters located in Sunnyvale, California, as well as office and data center space in various locations under non-cancelable operating lease agreements, with expiration dates between calendar years 2019 and 2023. The lease agreements often include escalating rent payments, renewal provisions and other provisions which require the Company to pay maintenance costs, property taxes and insurance. The lease agreements do not contain any material residual value guarantees or material restrictive covenants. As of July 31, 2019, the Company has no leases that have not yet commenced. Supplemental balance sheet information related to leases was as follows (in thousands): As of July 31, 2019 Assets Operating lease ROU assets $ 3,286 Total leased assets $ 3,286 Liabilities Short-term operating lease liabilities $ 1,677 Long-term operating lease liabilities 1,823 Total lease liabilities $ 3,500 Weighted-average remaining lease term 2.4 years Weighted-average discount rate 5.75 % Operating lease ROU assets and long-term operating lease liabilities are included on the face of the condensed consolidated balance sheet. Short-term operating lease liabilities are presented within accrued expenses and other current liabilities. The components of lease expense were as follows (in thousands): Three Months Ended Six Months Ended July 31, 2019 July 31, 2019 Operating lease costs (1) $ 618 $ 1,214 Variable lease costs (2) 244 478 Total lease cost $ 862 $ 1,692 (1) Operating lease costs are recognized on a straight-line basis over the lease term. Includes costs for short-term leases with an initial term of twelve months or less, which were not material. (2) Variable lease costs primarily included common area maintenance, utilities and property taxes and insurance, which were expensed as incurred. In October 2017, the Company entered into an office sublease agreement with Fiserv Solutions, LLC (“Fiserv”) to lease approximately 33,400 rentable square feet of an office building located in Sunnyvale, California, the Company’s current corporate headquarters. One of the members of the Company’s board of directors is also a current member of Fiserv’s board of directors. Therefore, Fiserv is a related party of the Company. During the three months ended July 31, 2019 and 2018, the Company incurred total lease costs of approximately $0.3 million under this sublease agreement. During the six months ended July 31, 2019 and 2018, the Company incurred total lease costs of approximately $0.6 million under this sublease agreement. Lease costs for the three and six months ended July 31, 2019 are included in the table above Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended Six Months Ended July 31, 2019 July 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 527 $ 1,053 ROU assets recognized in exchange for new operating lease obligations — 120 As of July 31, 2019, maturities of lease liabilities under non-cancelable operating leases were as follows (in thousands): Fiscal Years Ending January 31, July 31, 2019 2020 - remainder of fiscal year $ 956 2021 1,437 2022 1,035 2023 274 2024 48 Total lease payments 3,750 Less: imputed interest (250 ) Present value of lease liabilities $ 3,500 As of January 31, 2019, future minimum rental payments under non-cancelable operating leases were as follows (in thousands): Fiscal Years Ending January 31, January 31, 2019 2020 $ 1,983 2021 1,408 2022 917 2023 266 2024 49 Total (1) $ 4,623 (1) Amounts are based on Topic 840, Leases that was superseded upon the Company’s adoption of Topic 842 on February 1, 2019. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jul. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Note 7: Stockholders’ Equity The Company has a stock-based compensation plan pursuant to which it has granted stock options and RSUs. The Company also maintains its 2015 Employee Stock Purchase Plan (the “ESPP”) for all eligible employees. Stock Options. Stock option activity for the six months ended July 31, 2019 was as follows: Weighted Average Aggregate Shares Exercise Price Intrinsic Value (in thousands) Per Share (in thousands) Balance as of January 31, 2019 1,691 $ 6.39 $ 14,755 Granted 89 $ 15.49 Exercised (198 ) $ 1.98 Canceled (42 ) $ 12.74 Balance as of July 31, 2019 1,540 $ 7.31 $ 9,202 Vested and exercisable as of July 31, 2019 1,336 $ 6.44 $ 8,973 The aggregate intrinsic value of vested options exercised during the six months ended July 31, 2019 and 2018 was $ 1.8 million and $0.7 million, respectively. The weighted average grant date fair value of options granted during the six months ended July 31, 2019 and 2018 was $ 7.13 and $5.28 per share, respectively. Restricted Stock Units. RSU activity for the six months ended July 31, 2019 was as follows: Shares (in thousands) Weighted Average Grant-Date Fair Value Per Share Balance as of January 31, 2019 1,925 $ 10.49 Granted 960 $ 15.09 Vested (494 ) $ 9.91 Canceled (58 ) $ 11.93 Balance as of July 31, 2019 2,333 $ 12.47 Employee Stock Purchase Plan. The ESPP allows eligible employees to purchase shares of common stock at a discount through payroll deductions of up to 15 % of their eligible compensation (subject to plan limitations). The ESPP provides for a 24-month offering period comprised of four purchase periods of approximately six months. Employees are able to purchase shares at 85% of the lower of the fair market value of the Company’s common stock as of the first date or the ending date of each six-month offering period. The offering periods are scheduled to start on the first trading day on or after March 15 and September 15 of each year. During the six months ended July 31, 2019 and 2018, employees purchased approximately 0.1 million and 0.2 million shares, respectively, at a weighted purchase price o f $9.86 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jul. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 8: Stock-Based Compensation Total stock-based compensation expense recognized in the condensed consolidated statements of operations was as follows (in thousands): Three Months Ended Six Months Ended July 31, 2019 July 31, 2018 July 31, 2019 July 31, 2018 Cost of revenue $ 344 $ 242 $ 629 $ 434 Sales and marketing 523 389 969 715 Research and development 1,238 970 2,334 1,833 General and administrative 1,306 1,161 2,461 2,094 Total stock-based compensation expense $ 3,411 $ 2,762 $ 6,393 $ 5,076 As of July 31, 2019, there was $28.8 . The fair value of employee stock options and ESPP purchases was estimated using the Black–Scholes model with the following assumptions: Three and Six Months Ended July 31, 2019 July 31, 2018 Stock Options: Expected volatility 44% 43% Expected term (in years) 6.1 6.1 Risk-free interest rate 2.5% 2.7% Dividend yield NA NA Three and Six Months Ended July 31, 2019 July 31, 2018 ESPP: Expected volatility 40%-49% 47-56% Expected term (in years) 0.5-2.0 0.5-2.0 Risk-free interest rate 2.4%-2.5% 2.0-2.3% Dividend yield NA NA |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9: Income Taxes The Company recorded an income tax benefit of $16,000 and $62,000 during the three months ended July 31, 2019 and 2018, respectively, and $38,000 and $131,000 during the six months ended July 31, 2019 and 2018, respectively. These income tax benefits were primarily associated with the Company’s acquisition of Voxter in March 2018. The Company continues to maintain a full valuation allowance against its deferred tax assets. As of July 31, 2019, the Company had unrecognized tax benefits of $5.2 million, none of which would currently affect the Company's effective tax rate if recognized due to the Company's deferred tax assets being fully offset by a valuation allowance. The Company does not anticipate that the amount of unrecognized tax benefits relating to tax positions existing at July 31, 2019 will significantly increase or decrease within the next twelve months. There was no interest expense or penalties related to unrecognized tax benefits recorded through July 31, 2019. A number of years may elapse before an uncertain tax position is audited and finally resolved. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, the Company believes that its reserves for income taxes reflect the most likely outcome. The Company adjusts these reserves, as well as the related interest, in light of changing facts and circumstances. Settlement of any particular position could require the use of cash. |
Basic and Diluted Net Loss Per
Basic and Diluted Net Loss Per Share | 6 Months Ended |
Jul. 31, 2019 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Loss Per Share | Note 10: Basic and Diluted Net Loss Per Share Basic and diluted net loss per share is calculated by dividing the net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per share of common stock is the same as basic net loss per share of common stock because the effects of potentially dilutive securities are anti-dilutive as the Company reported net losses for all periods presented. The following table sets forth the computation of basic and diluted net loss per share of common stock (in thousands, except share and per share data): Three Months Ended Six Months Ended July 31, 2019 July 31, 2018 July 31, 2019 July 31, 2018 Numerator Net loss $ (4,983 ) $ (3,904 ) $ (9,723 ) $ (7,589 ) Denominator Weighted-average common shares 20,849,935 19,673,658 20,667,905 19,499,677 Basic and diluted net loss per share $ (0.24 ) $ (0.20 ) $ (0.47 ) $ (0.39 ) Potentially dilutive securities of approximately 4.0 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11: Commitments and Contingencies Purchase Commitments As of July 31, 2019 and January 31, 2019, total non-cancelable purchase commitments with the Company’s contract manufacturers and other parties were $6.0 million and $4.2 million, respectively. Legal Proceedings In addition to the litigation matters described below, from time to time, the Company may be involved in a variety of other claims, lawsuits, investigations, and proceedings relating to contractual disputes, intellectual property rights, employment matters, regulatory compliance matters, and other litigation matters relating to various claims that arise in the normal course of business. Defending such proceedings is costly and can impose a significant burden on management and employees, the Company may receive unfavorable preliminary or interim rulings in the course of litigation, and there can be no assurances that favorable final outcomes will be obtained. The Company determines whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated. The Company assesses its potential liability by analyzing specific litigation and regulatory matters using reasonably available information. The Company develops its views on estimated losses in consultation with inside and outside counsel, which involves a subjective analysis of potential results and outcomes, assuming various combinations of appropriate litigation and settlement strategies. Legal fees are expensed in the period in which they are incurred. As of July 31, 2019, the Company did not have any material loss contingencies recorded in its consolidated financial statements . Berks County Litigation On January 21, 2016, the County of Berks, Pennsylvania filed a lawsuit in the Berks County Court of Common Pleas naming the Company and 113 other telephone service providers as defendants (the “Berks County Litigation”), alleging breach of fiduciary duty, fraud, and negligent misrepresentation in connection with alleged violations of the Pennsylvania 911 Emergency Communication Services Act (“PA 911 Act”) for failure to collect from subscribers and remit certain fees pursuant to the PA 911 Act. The plaintiff seeks a declaratory judgment that the Company must comply with the PA 911 Act, compensatory and punitive damages and such other relief as the court may deem proper. The Company believes that the plaintiff’s claims are without merit since the Company has no employees, property or other indicia of a “substantial nexus” with the State of Pennsylvania. The Company intends to continue vigorously defending against this lawsuit. However, litigation is unpredictable and there can be no assurances that the Company will obtain a favorable final outcome or that it will be able to avoid unfavorable preliminary or interim rulings in the course of litigation that may significantly add to the expense of its defense and could result in substantial costs and diversion of resources. Based on the Company’s current knowledge, the Company has determined that the amount of any material loss or range of any losses that is reasonably possible to result from the Berks County Litigation is not estimable. Deep Green Wireless Litigation On June 8, 2016, plaintiff Deep Green Wireless LLC filed a complaint in the U.S. District Court for the Eastern District of Texas against Ooma, Inc., alleging infringement of U.S. Patent No. RE42,714 (the “Deep Green Wireless Patent”, and such litigation, the “Deep Green Wireless Litigation ”). The complaint seeks unspecified monetary damages, costs, attorneys’ fees and other appropriate relief. In February 2017, the Court granted the Company’s motion to transfer the case to the Northern District of California, which proceeding has been stayed pending the outcome of an inter partes review of the Deep Green Wireless Patent by the United States Patent Trial and Appeal Board (“PTAB”). On December 17, 2018, the PTAB issued its final decision regarding the claims at issue in the Deep Green Wireless Litigation, in which it determined that all challenged claims of the ‘714 patent are obvious and unpatentable. On February 19, 2019, the plaintiff filed a Notice of Appeal to the Court of Appeals for the Federal Circuit. Deep Green Wireless’ opening brief has been filed, as well as the Company’s response brief. No date has been set for oral argument. If the Federal Circuit rules in favor of the Company on appeal, we expect the Deep Green Wireless Litigation should be dismissed. Based on the Company’s current knowledge, and as confirmed by the PTAB’s final decision, Dolemba Litigation On September 4, 2018, plaintiff Scott Dolemba filed a putative class action complaint against the Company in the U.S. District Court for the Northern District of Illinois, Eastern Division, alleging violations of the Telephone Consumer Protection Act and the Illinois Consumer Fraud Act. On May 21, 2019, the Company and plaintiff settled the complaint for an immaterial amount and the complaint was voluntarily dismissed with prejudice. Oregon Tax Litigation On August 30, 2016, the Oregon Department of Revenue (the “DOR”) issued tax assessments against the Company for the Oregon Emergency Communications Tax (the “Tax”), which the DOR alleges Ooma should have collected from its subscribers in Oregon and remitted to the DOR during the period starting on January 1, 2013 and ending on March 31, 2016 (collectively, the “Assessments”). The Company believes that the Commerce Clause of the United States Constitution bars the application of the Tax and the Assessments to the Company, since the Company has no employees, property or other indicia of a “substantial nexus” with the State of Oregon. On January 17, 2019, the Regular Division of the Oregon Tax Court heard oral arguments on the parties’ cross motions for summary judgment, and no decision has been issued. The Company will continue to vigorously litigate the Complaint in pursuit of the full abatement of the Assessments. However, litigation is unpredictable and there can be no assurances that the Company will obtain a favorable fi resources. During fiscal 2019, the Company paid $0.6 million to the State of Oregon in connection with the Oregon Tax Litigation, of which $0.3 million Reid Litigation On May 23, 2019, plaintiff Valentin Reid filed a putative class action complaint (the “Reid Litigation”) against the Company in the U.S. District Court for the Southern District of New York, alleging violations of the ADA, New York State Human Rights Law, New York State Civil Rights Law, and New York City Human Rights Law. On August 28, 2019, the Company and plaintiff settled the complaint for an immaterial amount and the plaintiff is obligated to dismiss the complaint with prejudice in accordance with the terms of the settlement agreement. Securities Litigation On January 14, 2016, Michael Barnett filed a purported stockholder class action in the San Mateo County Superior Court of the State of California (Case No. CIV536959) against the Company, certain of its officers and directors, and certain of the underwriters of the Company’s IPO on July 17, 2015. Since that time two additional purported class actions making substantially the same allegations against the same defendants were filed, and on May 18, 2016, all three complaints were combined into a “consolidated complaint” filed in the same court (the “Securities Litigation”). The consolidated complaint purports to be brought on behalf of all persons who purchased shares of common stock in the Company’s IPO in reliance upon the Registration Statement and Prospectus the Company filed with the SEC. The consolidated complaint alleges that the Company and the other defendants violated the Securities Act of 1933, as amended (the “Securities Act”) by issuing the Registration Statement and Prospectus, which the plaintiffs allege contained material misstatements and omissions in violation of Sections 11, 12(a)(2) and 15 of the Securities Act. The plaintiffs seek class certification, compensatory damages, attorneys’ fees and costs, rescission or a rescissory measure of damages, equitable and/or injunctive relief, and such other relief as the court may deem proper. On November 29, 2017, the Superior Court dismissed the claims that were based on Sections 12(a)(2) and 15 of the Securities Act with prejudice. On May 30, 2019, the parties filed with the Court a Stipulation of Settlement. Under the terms of the proposed settlement, the Company’s directors’ and officers’ liability insurers will deposit $8.65 million into a settlement fund for payment to class members, plaintiff’s attorneys’ fees and costs of administering the settlement. The proposed settlement must be approved by the Court before becoming effective. The Stipulation of Settlement contains no admissions of wrongdoing, and the Company and the other defendants have maintained and continue to deny liability and wrongdoing of any kind with respect to the class action claims. If the Court grants final approval of the Stipulation of Settlement, the Court will dismiss the class action lawsuit with prejudice and the plaintiff will be deemed to have released all claims against the Company and all other defendants relating to the allegations in the class action. The Company can provide no assurance that the Court will approve the Stipulation of Settlement. Based on the Company’s current knowledge, it believes that if the settlement is approved, the amount of any further probable loss to be paid by the Company will be immaterial. Indemnification The Company enters into standard indemnification arrangements in the ordinary course of business. Pursuant to these arrangements, the Company indemnifies, holds harmless and agrees to reimburse the indemnified parties for certain losses suffered or incurred by the indemnified party. In some cases, the term of these indemnification agreements is perpetual. The maximum potential amount of future payments the Company could be required to make under these agreements is not determinable because it involves claims that may be made against the Company in the future but have not yet been made. The Company has entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of the individual. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company has director and officer insurance coverage that reduces the Company’s exposure and enables the Company to recover a portion of any future amounts paid. To date the Company has not incurred costs to defend lawsuits or settle claims related to these indemnification agreements. No liability associated with such indemnifications has been recorded to date. |
Business Acquisition
Business Acquisition | 6 Months Ended |
Jul. 31, 2019 | |
Business Combinations [Abstract] | |
Business Acquisition | Note 12: Business Acquisition On May 24, 2019, the Company completed its acquisition of Broadsmart, a cloud-based UCaaS solutions provider based in Florida. T he aggregate fair value consideration transferred for Broadsmart was in cash, of which approximately $0.9 million will be held in escrow for a period of up to two years. The fair values of assets acquired and liabilities assumed as of the date of acquisition was as follows (in thousands): Fair Value Cash $ 649 Accounts receivable 1,003 Other current and non-current assets 639 Intangible assets 6,107 Goodwill 366 Accounts payable and other liabilities (1,043 ) Net assets acquired $ 7,721 Intangible assets acquired consisted of customer relationships of $5.8 million and trade names of $0.3 million. Customer relationships represented the estimated fair values of the underlying relationships with Broadsmart’s customer base and have an estimated useful life of seven years as of the date of acquisition. The goodwill recognized was attributable to the assembled workforce and expanded market opportunities when integrating Broadsmart’s offerings with Ooma Business. The Company made an election under Section 338(h)(10) of the Internal Revenue Code, which resulted in the acquisition being treated as an asset purchase for income tax purposes. Th The operating results of the acquired company have been included in the Company's consolidated financial statements from the date of acquisition. Actual and pro forma results of operations for the Broadsmart acquisition have not been presented because it did not have a material impact on the Company's consolidated results of operations. Acquisition-related transaction costs charged to expense during the three and six months ended July 31, 2019 were approximately $0.2 million. |
Overview and Basis of Present_2
Overview and Basis of Presentation (Policies) | 6 Months Ended |
Jul. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Presentation and Consolidation | Principles of Presentation and Consolidation These unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended January 31, 2019 (“Annual Report”). These financial statements have been prepared on the same basis as the Company’s annual financial statements and, in the opinion of management, reflect The condensed consolidated financial statements include accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation. |
Use of Estimates | Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the Company’s condensed consolidated financial statements and notes thereto. Significant estimates include, but are not limited to, those related to revenue recognition, inventory valuation, valuation of goodwill and intangible assets, deferred sales commissions, operating lease assets and liabilities, regulatory fees and indirect tax accruals, loss contingencies, stock-based compensation, income taxes (including valuation allowances) and fair value measurements. Estimates are based on historical experience, where applicable, and other assumptions believed to be reasonable by management. These estimates are based on information available as of the date of the condensed consolidated financial statements, and assumptions are inherently subjective in nature. Therefore, actual results could differ from management’s estimates. |
Comprehensive Loss | Comprehensive Loss. For all periods presented, comprehensive loss approximated net loss in the condensed consolidated statements of operations and differences were not material. Therefore, the condensed consolidated statements of comprehensive loss have been omitted. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards Leases . On February 1, 2019, the Company adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) which superseded the guidance in Topic 840 and required the Company to recognize operating leased assets and corresponding liabilities on the balance sheet and to provide enhanced disclosures. The Company adopted Topic 842 using the modified retrospective transition method by applying the new standard to all leases existing at the date of initial adoption and not restating comparative periods. The Company elected the package of practical expedients, which among other things, allowed it to carry forward its historical lease classification and its assessment of whether any existing leases as of the date of adoption are or contain leases. Adoption on February 1, 2019 resulted in the recognition of $4.1 million of operating right-of-use “ROU” assets and $4.3 million of operating lease liabilities on the condensed consolidated balance sheet, with no adjustment to accumulated deficit. The difference of $0.2 million represented deferred rent for leases that existed as of the date of adoption, which was an offset to the opening balance of ROU assets. Adoption of the new standard did not materially impact the Company’s consolidated statements of operations, consolidated statements of stockholders’ equity and consolidated statements of cash flows. The Company has implemented policies, processes and controls to support the standard's measurement and disclosure requirements. See Significant Accounting Policies – Leases Operating Leases Stock-based compensation. The Company adopted ASU 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting in the first quarter of fiscal 2020, which expanded the scope of Topic 718 to include and simplify financial reporting for non-employee stock-based payments. Under the amended standard, most of the guidance on stock compensation for non-employees became aligned with the requirements for employees. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. |
Significant Accounting Policies - Leases | Significant Accounting Policies – Leases On February 1, 2019, the Company adopted Topic 842 using the modified retrospective transition method by applying the new standard to all leases existing at the date of initial adoption. Comparative prior period amounts have not been adjusted and continue to be reported in accordance with historical accounting under Topic 840. Under Topic 842, the Company determines if an arrangement is a lease at inception. The Company’s leases primarily consist of real property and are classified as operating leases. The Company does not have any finance leases nor material arrangements as a lessor. ROU assets and lease liabilities are recognized at the lease commencement date based upon the present value of the remaining lease payments over the lease term. The Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Lease expense for lease payments is recognized on a straight-line basis over the term of the lease. Lease terms may include options to renew or extend when it is reasonably certain that the option will be exercised. Lease agreements that contain both lease and non-lease components are accounted for as a single component. Short-term leases with an initial term of twelve months or less are not recorded on the balance sheet. |
Revenue and Deferred Revenue (T
Revenue and Deferred Revenue (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Revenue Disaggregated by Revenue Source | Revenue disaggregated by revenue source consisted of the following (in thousands): Three Months Ended Six Months Ended July 31, 2019 July 31, 2018 July 31, 2019 July 31, 2018 Subscription and services revenue $ 34,469 $ 28,426 $ 65,581 $ 55,738 Product and other revenue 2,874 3,255 5,769 6,165 Total revenue $ 37,343 $ 31,681 $ 71,350 $ 61,903 |
Concentration of Net Accounts Receivable Balance | Customers who represented 10% or more of the Company's net accounts receivable balance were as follows: As of July 31, 2019 January 31, 2019 Customer A 16 % — Customer B 11 % 15 % |
Components of Deferred Revenue | Deferred revenue consisted of the following (in thousands): As of July 31, 2019 January 31, 2019 Subscription and services $ 16,205 $ 15,682 Product and other 87 68 Total deferred revenue 16,292 15,750 Less: current deferred revenue 16,044 15,443 Non-current deferred revenue included in other long-term liabilities $ 248 $ 307 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities at Fair Value | The Company’s financial assets that are measured at fair value on a recurring basis by level within the fair value hierarchy were as follows (in thousands): Balance as of July 31, 2019 Balance as of January 31, 2019 Level 1 Level 2 Total Level 1 Level 2 Total Assets: Cash and cash equivalents: Money market funds $ 6,853 $ — $ 6,853 $ 5,951 $ — $ 5,951 U.S. government securities 1,996 — 1,996 — — — Commercial paper — 1,498 1,498 — 5,429 5,429 Total cash equivalents $ 8,849 $ 1,498 $ 10,347 $ 5,951 $ 5,429 $ 11,380 Cash 3,671 3,990 Total cash and cash equivalents $ 14,018 $ 15,370 Short-term investments: U.S. government securities $ 5,180 $ — $ 5,180 $ 11,088 $ — $ 11,088 Corporate debt securities — 2,384 2,384 — 4,735 4,735 Commercial paper — 5,926 5,926 — 8,253 8,253 U.S. agency securities — — — — 990 990 Asset-backed securities — 1,147 1,147 — 2,187 2,187 Total short-term investments $ 5,180 $ 9,457 $ 14,637 $ 11,088 $ 16,165 $ 27,253 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Balance Sheet Components [Abstract] | |
Components of Inventories | The following sections and tables provide details of selected balance sheet items (in thousands): Inventories As of July 31, 2019 January 31, 2019 Finished goods $ 8,174 $ 7,567 Raw materials 3,092 2,550 Total inventory $ 11,266 $ 10,117 |
Components of Other Assets | Other assets As of July 31, 2019 January 31, 2019 Prepaid expenses $ 2,566 $ 2,681 Deferred sales commissions, current 1,735 1,081 Convertible note receivable (1) 1,382 — Deferred inventory costs 632 334 Other current assets 1,341 1,354 Total other current assets $ 7,656 $ 5,450 Deferred sales commissions, non-current $ 5,247 $ 3,387 Convertible note receivable (1) — 1,315 Other non-current assets 998 677 Total other non-current assets $ 6,245 $ 5,379 (1) Convertible note receivable from Global Telecomm Corporation was reclassified from non-current assets to current assets as of July 31, 2019. |
Components of Accrued Expenses | Accrued expenses As of July 31, 2019 January 31, 2019 Payroll and related expenses $ 7,005 $ 7,926 Regulatory fees and taxes 5,921 5,645 Short-term operating lease liabilities (1) 1,677 — Acquisition-related consideration 228 925 Other 4,739 4,552 Total accrued expenses $ 19,570 $ 19,048 (1) The Company adopted Topic 842, the new accounting standard for leasing arrangements on February 1, 2019. See Note 6: Operating Leases below. |
Acquired Intangible Assets an_2
Acquired Intangible Assets and Goodwill (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Intangible Assets Net Excluding Goodwill [Abstract] | |
Schedule of Carrying Value of Intangible Assets Other than Goodwill | The gross value, accumulated amortization and carrying values of intangible assets were as follows (in thousands): As of July 31, 2019 As of January 31, 2019 Gross Value Accumulated Amortization Carrying Value Gross Value Accumulated Amortization Carrying Value Customer relationships $ 6,735 $ (387 ) $ 6,348 $ 902 $ (157 ) $ 745 Developed technology 2,716 (1,354 ) 1,362 2,716 (1,121 ) 1,595 Trade names 725 (215 ) 510 451 (166 ) 285 Patents and licenses 714 (708 ) 6 714 (704 ) 10 Total intangible assets $ 10,890 $ (2,664 ) $ 8,226 $ 4,783 $ (2,148 ) $ 2,635 |
Schedule of Estimated Future Amortization Expense | At July 31, 2019, the estimated future amortization expense for intangible assets was as follows (in thousands): Fiscal Years Ending January 31, Total 2020 - remainder of fiscal year $ 766 2021 1,530 2022 1,527 2023 1,500 2024 940 2025 and thereafter 1,963 Total $ 8,226 |
Operating Leases (Tables)
Operating Leases (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Leases [Abstract] | |
Summary of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows (in thousands): As of July 31, 2019 Assets Operating lease ROU assets $ 3,286 Total leased assets $ 3,286 Liabilities Short-term operating lease liabilities $ 1,677 Long-term operating lease liabilities 1,823 Total lease liabilities $ 3,500 Weighted-average remaining lease term 2.4 years Weighted-average discount rate 5.75 % |
Components of Lease Expense | The components of lease expense were as follows (in thousands): Three Months Ended Six Months Ended July 31, 2019 July 31, 2019 Operating lease costs (1) $ 618 $ 1,214 Variable lease costs (2) 244 478 Total lease cost $ 862 $ 1,692 (1) Operating lease costs are recognized on a straight-line basis over the lease term. Includes costs for short-term leases with an initial term of twelve months or less, which were not material. (2) Variable lease costs primarily included common area maintenance, utilities and property taxes and insurance, which were expensed as incurred. |
Summary of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended Six Months Ended July 31, 2019 July 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 527 $ 1,053 ROU assets recognized in exchange for new operating lease obligations — 120 |
Summary of Maturities of Lease Liabilities Under Non-cancelable Operating Leases | As of July 31, 2019, maturities of lease liabilities under non-cancelable operating leases were as follows (in thousands): Fiscal Years Ending January 31, July 31, 2019 2020 - remainder of fiscal year $ 956 2021 1,437 2022 1,035 2023 274 2024 48 Total lease payments 3,750 Less: imputed interest (250 ) Present value of lease liabilities $ 3,500 |
Minimum Rental Payments Under Non-Cancelable Operating Leases | As of January 31, 2019, future minimum rental payments under non-cancelable operating leases were as follows (in thousands): Fiscal Years Ending January 31, January 31, 2019 2020 $ 1,983 2021 1,408 2022 917 2023 266 2024 49 Total (1) $ 4,623 (1) Amounts are based on Topic 840, Leases that was superseded upon the Company’s adoption of Topic 842 on February 1, 2019. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Equity [Abstract] | |
Summarizes of Stock Option Activities | Stock option activity for the six months ended July 31, 2019 was as follows: Weighted Average Aggregate Shares Exercise Price Intrinsic Value (in thousands) Per Share (in thousands) Balance as of January 31, 2019 1,691 $ 6.39 $ 14,755 Granted 89 $ 15.49 Exercised (198 ) $ 1.98 Canceled (42 ) $ 12.74 Balance as of July 31, 2019 1,540 $ 7.31 $ 9,202 Vested and exercisable as of July 31, 2019 1,336 $ 6.44 $ 8,973 |
Summarizes of Restricted Stock Units Activities | RSU activity for the six months ended July 31, 2019 was as follows: Shares (in thousands) Weighted Average Grant-Date Fair Value Per Share Balance as of January 31, 2019 1,925 $ 10.49 Granted 960 $ 15.09 Vested (494 ) $ 9.91 Canceled (58 ) $ 11.93 Balance as of July 31, 2019 2,333 $ 12.47 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Total Stock-Based Compensation Expense Recognized in Condensed Consolidated Statements of Operations | Total stock-based compensation expense recognized in the condensed consolidated statements of operations was as follows (in thousands): Three Months Ended Six Months Ended July 31, 2019 July 31, 2018 July 31, 2019 July 31, 2018 Cost of revenue $ 344 $ 242 $ 629 $ 434 Sales and marketing 523 389 969 715 Research and development 1,238 970 2,334 1,833 General and administrative 1,306 1,161 2,461 2,094 Total stock-based compensation expense $ 3,411 $ 2,762 $ 6,393 $ 5,076 |
Summary of Assumptions Used to Estimate Fair Value of Employee Stock Options Grants and Employee Stock Purchase Plan Using Black-Scholes Option Pricing Model | The fair value of employee stock options and ESPP purchases was estimated using the Black–Scholes model with the following assumptions: Three and Six Months Ended July 31, 2019 July 31, 2018 Stock Options: Expected volatility 44% 43% Expected term (in years) 6.1 6.1 Risk-free interest rate 2.5% 2.7% Dividend yield NA NA Three and Six Months Ended July 31, 2019 July 31, 2018 ESPP: Expected volatility 40%-49% 47-56% Expected term (in years) 0.5-2.0 0.5-2.0 Risk-free interest rate 2.4%-2.5% 2.0-2.3% Dividend yield NA NA |
Basic and Diluted Net Loss Pe_2
Basic and Diluted Net Loss Per Share (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Loss Per Share of Common Stock | The following table sets forth the computation of basic and diluted net loss per share of common stock (in thousands, except share and per share data): Three Months Ended Six Months Ended July 31, 2019 July 31, 2018 July 31, 2019 July 31, 2018 Numerator Net loss $ (4,983 ) $ (3,904 ) $ (9,723 ) $ (7,589 ) Denominator Weighted-average common shares 20,849,935 19,673,658 20,667,905 19,499,677 Basic and diluted net loss per share $ (0.24 ) $ (0.20 ) $ (0.47 ) $ (0.39 ) |
Business Acquisition (Tables)
Business Acquisition (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Broadsmart Global, Inc. | |
Business Acquisition [Line Items] | |
Summary of Fair Values of Assets Acquired and Liabilities Assumed | The fair values of assets acquired and liabilities assumed as of the date of acquisition was as follows (in thousands): Fair Value Cash $ 649 Accounts receivable 1,003 Other current and non-current assets 639 Intangible assets 6,107 Goodwill 366 Accounts payable and other liabilities (1,043 ) Net assets acquired $ 7,721 |
Overview and Basis of Present_3
Overview and Basis of Presentation - Additional Information (Details) - USD ($) | Feb. 01, 2019 | Jul. 31, 2019 |
Stockholders Equity Note Disclosure [Line Items] | ||
Operating lease right-of-use assets | $ 3,286,000 | |
Operating lease liabilities | $ 3,500,000 | |
Accounting Standards Update 2016-02 | ||
Stockholders Equity Note Disclosure [Line Items] | ||
Operating lease right-of-use assets | $ 4,100,000 | |
Operating lease liabilities | 4,300,000 | |
Adjustment to accumulated deficit | 0 | |
Deferred rent for leases | $ 200,000 |
Revenue and Deferred Revenue -
Revenue and Deferred Revenue - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019USD ($)CountryCustomer | Jul. 31, 2018CountryCustomer | Jul. 31, 2019USD ($)SourceCountryCustomer | Jul. 31, 2018CountryCustomer | |
Disaggregation Of Revenue [Line Items] | ||||
Number of sources of revenue | Source | 2 | |||
Number of countries outside United States represented 10% or more of total revenue | Country | 0 | 0 | 0 | 0 |
Number of customers that individually exceeded 10% of revenue | Customer | 0 | 0 | 0 | 0 |
Deferred revenue recognized | $ | $ 3.4 | $ 11.8 | ||
Ooma Residential | Revenue | ||||
Disaggregation Of Revenue [Line Items] | ||||
Concentration risk, percentage | 59.00% | 69.00% | 62.00% | 70.00% |
Ooma Business | Revenue | ||||
Disaggregation Of Revenue [Line Items] | ||||
Concentration risk, percentage | 38.00% | 27.00% | 36.00% | 26.00% |
Revenue and Deferred Revenue _2
Revenue and Deferred Revenue - Summary of Revenue Disaggregated by Revenue Source (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 37,343 | $ 31,681 | $ 71,350 | $ 61,903 |
Subscription and services revenue | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 34,469 | 28,426 | 65,581 | 55,738 |
Product and other revenue | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 2,874 | $ 3,255 | $ 5,769 | $ 6,165 |
Revenue and Deferred Revenue _3
Revenue and Deferred Revenue - Concentration of Net Accounts Receivable Balance (Details) - Accounts Receivable - Customer Concentration Risk | 6 Months Ended | 12 Months Ended |
Jul. 31, 2019 | Jan. 31, 2019 | |
Customer A | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 16.00% | |
Customer B | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 11.00% | 15.00% |
Revenue and Deferred Revenue _4
Revenue and Deferred Revenue - Components of Deferred Revenue (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $ 16,292 | $ 15,750 |
Less: current deferred revenue | 16,044 | 15,443 |
Non-current deferred revenue included in other long-term liabilities | 248 | 307 |
Subscription and Services | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 16,205 | 15,682 |
Product and Other | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $ 87 | $ 68 |
Revenue and Deferred Revenue _5
Revenue and Deferred Revenue - Additional Information (Details 1) $ in Millions | Jul. 31, 2019USD ($) |
Revenue From Contract With Customer [Abstract] | |
Revenue expected to be recognized from remaining performance obligations | $ 0.2 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets at Fair Value (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Assets: | ||
Total cash and cash equivalents | $ 14,018 | $ 15,370 |
Total short-term investments | 14,637 | 27,253 |
Commercial Paper | ||
Assets: | ||
Total short-term investments | 5,926 | 8,253 |
U.S. Government Securities | ||
Assets: | ||
Total short-term investments | 5,180 | 11,088 |
Corporate Debt Securities | ||
Assets: | ||
Total short-term investments | 2,384 | 4,735 |
U.S. Agency Securities | ||
Assets: | ||
Total short-term investments | 990 | |
Asset-backed Securities | ||
Assets: | ||
Total short-term investments | 1,147 | 2,187 |
Level 1 | ||
Assets: | ||
Total short-term investments | 5,180 | 11,088 |
Level 1 | U.S. Government Securities | ||
Assets: | ||
Total short-term investments | 5,180 | 11,088 |
Level 2 | ||
Assets: | ||
Total short-term investments | 9,457 | 16,165 |
Level 2 | Commercial Paper | ||
Assets: | ||
Total short-term investments | 5,926 | 8,253 |
Level 2 | Corporate Debt Securities | ||
Assets: | ||
Total short-term investments | 2,384 | 4,735 |
Level 2 | U.S. Agency Securities | ||
Assets: | ||
Total short-term investments | 990 | |
Level 2 | Asset-backed Securities | ||
Assets: | ||
Total short-term investments | 1,147 | 2,187 |
Cash Equivalents | ||
Assets: | ||
Total cash and cash equivalents | 10,347 | 11,380 |
Cash Equivalents | Commercial Paper | ||
Assets: | ||
Total cash and cash equivalents | 1,498 | 5,429 |
Cash Equivalents | U.S. Government Securities | ||
Assets: | ||
Total cash and cash equivalents | 1,996 | |
Cash Equivalents | Money Market Funds | ||
Assets: | ||
Total cash and cash equivalents | 6,853 | 5,951 |
Cash Equivalents | Level 1 | ||
Assets: | ||
Total cash and cash equivalents | 8,849 | 5,951 |
Cash Equivalents | Level 1 | U.S. Government Securities | ||
Assets: | ||
Total cash and cash equivalents | 1,996 | |
Cash Equivalents | Level 1 | Money Market Funds | ||
Assets: | ||
Total cash and cash equivalents | 6,853 | 5,951 |
Cash Equivalents | Level 2 | ||
Assets: | ||
Total cash and cash equivalents | 1,498 | 5,429 |
Cash Equivalents | Level 2 | Commercial Paper | ||
Assets: | ||
Total cash and cash equivalents | 1,498 | 5,429 |
Cash | ||
Assets: | ||
Total cash and cash equivalents | $ 3,671 | $ 3,990 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 31, 2019 | Jan. 31, 2019 | |
Fair Value Disclosures [Abstract] | ||
Investments other-than-temporarily impaired | $ 0 | |
Fair value material level asset and liability | 0 | $ 0 |
Financial assets, level 2 to level 1 transfers, amount | 0 | 0 |
Financial assets, level 1 to level 2 transfers, amount | $ 0 | $ 0 |
Balance Sheet Components - Comp
Balance Sheet Components - Components of Inventories (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 8,174 | $ 7,567 |
Raw materials | 3,092 | 2,550 |
Total inventory | $ 11,266 | $ 10,117 |
Balance Sheet Components - Co_2
Balance Sheet Components - Components of Other Assets (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Other Assets [Abstract] | ||
Prepaid expenses | $ 2,566 | $ 2,681 |
Deferred sales commissions, current | 1,735 | 1,081 |
Convertible note receivable | 1,382 | |
Deferred inventory costs | 632 | 334 |
Other current assets | 1,341 | 1,354 |
Total other current assets | 7,656 | 5,450 |
Deferred sales commissions, non-current | 5,247 | 3,387 |
Convertible note receivable | 1,315 | |
Other non-current assets | 998 | 677 |
Total other non-current assets | $ 6,245 | $ 5,379 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | Jan. 31, 2019 | |
Balance Sheet Components [Line Items] | ||||||
Amortization expense for deferred sales commissions | $ 400,000 | $ 100,000 | $ 800,000 | $ 200,000 | ||
Impairment loss in relation to deferred commission costs capitalized | 0 | |||||
Non-cancelable purchase commitments | 6,000,000 | 6,000,000 | $ 4,200,000 | |||
Global Telecomm Corporation | ||||||
Balance Sheet Components [Line Items] | ||||||
Procured raw material from related party | 200,000 | 400,000 | ||||
Prepaid inventory deposits | 400,000 | 400,000 | 0 | |||
Non-cancelable purchase commitments | $ 2,800,000 | $ 2,800,000 | $ 0 | |||
Global Telecomm Corporation | Convertible Promissory Note | ||||||
Balance Sheet Components [Line Items] | ||||||
Investment in privately-held company | $ 1,300,000 | |||||
Convertible promissory note, maturity period | 18 months | |||||
Convertible promissory note, interest rate | 10.00% | |||||
Customer relationships | ||||||
Balance Sheet Components [Line Items] | ||||||
Estimated life (in years) | 5 years |
Balance Sheet Components - Co_3
Balance Sheet Components - Components of Accrued Expenses (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Payables And Accruals [Abstract] | ||
Payroll and related expenses | $ 7,005 | $ 7,926 |
Regulatory fees and taxes | 5,921 | 5,645 |
Short-term operating lease liabilities | 1,677 | |
Acquisition-related consideration | 228 | 925 |
Other | 4,739 | 4,552 |
Total accrued expenses | $ 19,570 | $ 19,048 |
Acquired Intangible Assets an_3
Acquired Intangible Assets and Goodwill - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | ||
May 31, 2019 | Jul. 31, 2019 | Jul. 31, 2018 | Jan. 31, 2019 | |
Finite Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 4,264 | $ 3,898 | ||
Amortization expense | $ 516 | $ 343 | ||
Broadsmart Global, Inc. | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Intangible assets recognized from acquisition | $ 6,100 | |||
Goodwill recognized from acquisition | $ 400 |
Acquired Intangible Assets an_4
Acquired Intangible Assets and Goodwill - Summary of Carrying Values of Intangible Assets Other than Goodwill (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Value, Intangible Assets | $ 10,890 | $ 4,783 |
Accumulated Amortization, Intangible Assets | (2,664) | (2,148) |
Carrying Value, Intangible Assets | 8,226 | 2,635 |
Customer relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Value, Intangible Assets | 6,735 | 902 |
Accumulated Amortization, Intangible Assets | (387) | (157) |
Carrying Value, Intangible Assets | 6,348 | 745 |
Developed technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Value, Intangible Assets | 2,716 | 2,716 |
Accumulated Amortization, Intangible Assets | (1,354) | (1,121) |
Carrying Value, Intangible Assets | 1,362 | 1,595 |
Trade names | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Value, Intangible Assets | 725 | 451 |
Accumulated Amortization, Intangible Assets | (215) | (166) |
Carrying Value, Intangible Assets | 510 | 285 |
Patents and licenses | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Value, Intangible Assets | 714 | 714 |
Accumulated Amortization, Intangible Assets | (708) | (704) |
Carrying Value, Intangible Assets | $ 6 | $ 10 |
Acquired Intangible Assets an_5
Acquired Intangible Assets and Goodwill - Schedule of Estimated Future Amortization Expense for Intangible Assets (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2020 - remainder of fiscal year | $ 766 | |
2021 | 1,530 | |
2022 | 1,527 | |
2023 | 1,500 | |
2024 | 940 | |
2025 and thereafter | 1,963 | |
Carrying Value, Intangible Assets | $ 8,226 | $ 2,635 |
Operating Leases - Additional I
Operating Leases - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2019USD ($) | Jul. 31, 2018USD ($) | Jul. 31, 2019USD ($) | Jul. 31, 2018USD ($) | Oct. 31, 2017ft² | |
Leases [Abstract] | |||||
Operating lease, description | The Company leases its headquarters located in Sunnyvale, California, as well as office and data center space in various locations under non-cancelable operating lease agreements, with expiration dates between calendar years 2019 and 2023. | ||||
Operating lease, expiration date beginning period | 2019 | ||||
Operating lease, expiration date ending period | 2023 | ||||
Leases not yet commenced, description | As of July 31, 2019, the Company has no leases that have not yet commenced. | ||||
Lease rentable space of office building | ft² | 33,400 | ||||
Sublease cost | $ | $ 0.3 | $ 0.3 | $ 0.6 | $ 0.6 |
Operating Leases - Summary of S
Operating Leases - Summary of Supplemental Balance Sheet Information Related to Leases (Details) $ in Thousands | Jul. 31, 2019USD ($) |
Assets | |
Operating lease ROU assets | $ 3,286 |
Total leased assets | 3,286 |
Liabilities | |
Short-term operating lease liabilities | 1,677 |
Long-term operating lease liabilities | 1,823 |
Total lease liabilities | $ 3,500 |
Weighted-average remaining lease term | 2 years 4 months 24 days |
Weighted-average discount rate | 5.75% |
Operating Leases - Components o
Operating Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jul. 31, 2019 | Jul. 31, 2019 | |
Lease Cost [Abstract] | ||
Operating lease costs | $ 618 | $ 1,214 |
Variable lease costs | 244 | 478 |
Total lease cost | $ 862 | $ 1,692 |
Operating Leases - Summary of_2
Operating Leases - Summary of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jul. 31, 2019 | Jul. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 527 | $ 1,053 |
ROU assets recognized in exchange for new operating lease obligations | $ 120 |
Operating Leases - Summary of M
Operating Leases - Summary of Maturities of Lease Liabilities Under Non-cancelable Operating Leases (Details) $ in Thousands | Jul. 31, 2019USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
2020 - remainder of fiscal year | $ 956 |
2021 | 1,437 |
2022 | 1,035 |
2023 | 274 |
2024 | 48 |
Total lease payments | 3,750 |
Less: imputed interest | (250) |
Present value of lease liabilities | $ 3,500 |
Operating Leases - Minimum Rent
Operating Leases - Minimum Rental Payments under Non-Cancelable Operating Leases (Details) $ in Thousands | Jan. 31, 2019USD ($) |
Lease Cost [Abstract] | |
2020 | $ 1,983 |
2021 | 1,408 |
2022 | 917 |
2023 | 266 |
2024 | 49 |
Total | $ 4,623 |
Stockholders' Equity - Summariz
Stockholders' Equity - Summarizes of Stock Option Activities (Details) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jul. 31, 2019USD ($)$ / sharesshares | |
Number of Shares | |
Shares, Beginning balance | shares | 1,691 |
Shares, Granted | shares | 89 |
Shares, Exercised | shares | (198) |
Shares, Canceled | shares | (42) |
Shares, Ending balance | shares | 1,540 |
Shares, Vested and exercisable | shares | 1,336 |
Weighted Average Exercise Price Per Share | |
Weighted Average Exercise Price Per Share, Beginning balance | $ / shares | $ 6.39 |
Weighted Average Exercise Price Per Share, Granted | $ / shares | 15.49 |
Weighted Average Exercise Price Per Share, Exercised | $ / shares | 1.98 |
Weighted Average Exercise Price Per Share, Canceled | $ / shares | 12.74 |
Weighted Average Exercise Price Per Share, Ending balance | $ / shares | 7.31 |
Weighted Average Exercise Price Per Share, Vested and exercisable | $ / shares | $ 6.44 |
Aggregate Intrinsic Value | |
Aggregate Intrinsic Value, Beginning balance | $ | $ 14,755 |
Aggregate Intrinsic Value, Ending balance | $ | 9,202 |
Aggregate Intrinsic Value, Vested and exercisable | $ | $ 8,973 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) $ / shares in Units, shares in Millions, $ in Millions | 6 Months Ended | |
Jul. 31, 2019USD ($)Peroid$ / sharesshares | Jul. 31, 2018USD ($)$ / sharesshares | |
ESPP | ||
Stockholders Equity Note Disclosure [Line Items] | ||
Percentage of eligible compensation subject to plan limitation | 15.00% | |
Employee stock purchase plan offering period | 24 months | |
Number of purchase periods | Peroid | 4 | |
Purchase periods | 6 months | |
Purchase price of common stock as percentage of fair market value | 85.00% | |
Number of shares of common stock issued under ESPP | shares | 0.1 | 0.2 |
Weighted purchase price of shares of common stock under ESPP | $ 9.86 | $ 5.65 |
Stock Options | ||
Stockholders Equity Note Disclosure [Line Items] | ||
Aggregate intrinsic value of vested options exercised | $ | $ 1.8 | $ 0.7 |
Weighted-average grant date fair value of options granted | $ 7.13 | $ 5.28 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summarizes of Restricted Stock Units Activities (Details) - Restricted Stock Units (RSUs) | 6 Months Ended |
Jul. 31, 2019$ / sharesshares | |
Number of Shares | |
Shares, RSUs Beginning Balance | shares | 1,925 |
Shares, Granted | shares | 960 |
Shares, Vested | shares | (494) |
Shares, Canceled | shares | (58) |
Shares, RSUs Ending Balance | shares | 2,333 |
Weighted Average Grant-Date Fair Value Per Share | |
Weighted Average Grant-Date Fair Value Per Share, Beginning Balance | $ / shares | $ 10.49 |
Weighted Average Grant-Date Fair Value Per Share, Granted | $ / shares | 15.09 |
Weighted Average Grant-Date Fair Value Per Share, Vested | $ / shares | 9.91 |
Weighted Average Grant-Date Fair Value Per Share, Canceled | $ / shares | 11.93 |
Weighted Average Grant-Date Fair Value Per Share, Ending Balance | $ / shares | $ 12.47 |
Stock-Based Compensation - Tota
Stock-Based Compensation - Total Stock-Based Compensation Expense Recognized in Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 3,411 | $ 2,762 | $ 6,393 | $ 5,076 |
Cost of revenue | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 344 | 242 | 629 | 434 |
Sales and marketing | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 523 | 389 | 969 | 715 |
Research and development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 1,238 | 970 | 2,334 | 1,833 |
General and administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 1,306 | $ 1,161 | $ 2,461 | $ 2,094 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) $ in Millions | 6 Months Ended |
Jul. 31, 2019USD ($) | |
Stock Options | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized share-based compensation expense related to unvested stock option grants | $ 28.8 |
Stock-based compensation expenses recognized on straight line basis offering period | 3 years |
Restricted Stock Units (RSUs) | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized share-based compensation expense related to unvested stock option grants | $ 28.8 |
Stock-based compensation expenses recognized on straight line basis offering period | 3 years |
ESPP | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized share-based compensation expense related to unvested stock option grants | $ 28.8 |
Stock-based compensation expenses recognized on straight line basis offering period | 3 years |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions Used to Estimate Fair Value of Employee Stock Options Grants and Employee Stock Purchase Plan Using Black-Scholes Option Pricing Model (Details) | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
ESPP | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected volatility, minimum | 40.00% | 47.00% | 40.00% | 47.00% |
Expected volatility, maximum | 49.00% | 56.00% | 49.00% | 56.00% |
Risk-free interest rate, minimum | 2.40% | 2.00% | 2.40% | 2.00% |
Risk-free interest rate, maximum | 2.50% | 2.30% | 2.50% | 2.30% |
ESPP | Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (in years) | 6 months | 6 months | 6 months | 6 months |
ESPP | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (in years) | 2 years | 2 years | 2 years | 2 years |
Stock Options | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected volatility | 44.00% | 43.00% | 44.00% | 43.00% |
Expected term (in years) | 6 years 1 month 6 days | 6 years 1 month 6 days | 6 years 1 month 6 days | 6 years 1 month 6 days |
Risk-free interest rate | 2.50% | 2.70% | 2.50% | 2.70% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Income Tax [Line Items] | ||||
Income tax benefit | $ 16,000 | $ 62,000 | $ 38,000 | $ 131,000 |
Unrecognized tax benefits | 5,200,000 | 5,200,000 | ||
Interest expense or penalties related to unrecognized tax benefits | 0 | |||
Voxter Communications Inc. | ||||
Income Tax [Line Items] | ||||
Income tax benefit | $ 16,000 | $ 62,000 | $ 38,000 | $ 131,000 |
Basic and Diluted Net Loss Pe_3
Basic and Diluted Net Loss Per Share - Computation of Basic and Diluted Net Loss Per Share of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jul. 31, 2019 | Apr. 30, 2019 | Jul. 31, 2018 | Apr. 30, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Numerator | ||||||
Net loss | $ (4,983) | $ (4,740) | $ (3,904) | $ (3,685) | $ (9,723) | $ (7,589) |
Denominator | ||||||
Weighted-average common shares | 20,849,935 | 19,673,658 | 20,667,905 | 19,499,677 | ||
Basic and diluted net loss per share | $ (0.24) | $ (0.20) | $ (0.47) | $ (0.39) |
Basic and Diluted Net Loss Pe_4
Basic and Diluted Net Loss Per Share - Additional Information (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Earnings Per Share [Abstract] | ||||
Potentially dilutive securities excluded from the computation of diluted net loss per share | 4 | 4 | 4.5 | 4.5 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2019 | Jul. 31, 2019 | May 30, 2019 | |
Commitments And Contingencies Disclosure [Line Items] | |||
Non-cancelable purchase commitments | $ 4,200,000 | $ 6,000,000 | |
Loss contingencies | $ 0 | ||
Tax litigation amount | 600,000 | ||
Cumulative charges of litigation loss | 300,000 | ||
Settlement fund for payment to class members | $ 8,650,000 | ||
Other current assets | |||
Commitments And Contingencies Disclosure [Line Items] | |||
Amount of receivables in other current assets | $ 300,000 |
Business Acquisition - Addition
Business Acquisition - Additional Information (Details) - Broadsmart Global, Inc. - USD ($) $ in Thousands | May 24, 2019 | Jul. 31, 2019 | Jul. 31, 2019 |
Business Acquisition [Line Items] | |||
Aggregate fair value consideration transferred | $ 7,700 | ||
Cash held in escrow | 900 | ||
Intangible assets | 6,107 | ||
Acquisition-related transaction costs | $ 200 | $ 200 | |
Customer relationships | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 5,800 | ||
Estimated useful life of intangible assets | 7 years | ||
Trade names | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 300 | ||
Maximum | |||
Business Acquisition [Line Items] | |||
Escrow deposit period | 2 years |
Business Acquisition - Summary
Business Acquisition - Summary of Fair Values of Assets Acquired and Liabilities Assumed (Details) - Broadsmart Global, Inc. $ in Thousands | May 24, 2019USD ($) |
Business Acquisition [Line Items] | |
Cash | $ 649 |
Accounts receivable | 1,003 |
Other current and non-current assets | 639 |
Intangible assets | 6,107 |
Goodwill | 366 |
Accounts payable and other liabilities | (1,043) |
Net assets acquired | $ 7,721 |