Document and Entity Information
Document and Entity Information - shares shares in Millions | 6 Months Ended | |
Jul. 31, 2019 | Aug. 28, 2019 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 31, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-35680 | |
Entity Registrant Name | Workday, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-2480422 | |
Entity Address, Address Line One | 6110 Stoneridge Mall Road | |
Entity Address, City or Town | Pleasanton | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94588 | |
City Area Code | 925 | |
Local Phone Number | 951-9000 | |
Title of 12(b) Security | Class A Common Stock, par value $0.001 | |
Trading Symbol | WDAY | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001327811 | |
Current Fiscal Year End Date | --01-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Class A | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 164 | |
Class B | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 64 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 619,514 | $ 638,554 |
Marketable securities | 1,307,006 | 1,139,864 |
Trade and other receivables, net | 613,425 | 704,680 |
Deferred costs | 85,557 | 80,809 |
Prepaid expenses and other current assets | 163,530 | 136,689 |
Total current assets | 2,789,032 | 2,700,596 |
Property and equipment, net | 919,523 | 796,907 |
Operating lease right-of-use assets | 294,824 | |
Deferred costs, noncurrent | 182,580 | 183,518 |
Acquisition-related intangible assets, net | 277,953 | 313,240 |
Goodwill | 1,389,349 | 1,379,125 |
Other assets | 138,895 | 147,360 |
Total assets | 5,992,156 | 5,520,746 |
Current liabilities: | ||
Accounts payable | 32,540 | 29,093 |
Accrued expenses and other current liabilities | 114,494 | 123,542 |
Accrued compensation | 192,064 | 207,924 |
Unearned revenue | 1,796,423 | 1,837,618 |
Operating lease liabilities | 65,554 | |
Current portion of convertible senior notes, net | 1,233,189 | 232,514 |
Total current liabilities | 3,434,264 | 2,430,691 |
Convertible senior notes, net | 0 | 972,264 |
Unearned revenue, noncurrent | 89,219 | 111,652 |
Operating lease liabilities, noncurrent | 243,863 | |
Other liabilities | 14,525 | 47,697 |
Total liabilities | 3,781,871 | 3,562,304 |
Stockholders’ equity: | ||
Common stock | 227 | 221 |
Additional paid-in capital | 4,561,272 | 4,105,334 |
Accumulated other comprehensive income (loss) | 32,458 | (809) |
Accumulated deficit | (2,383,672) | (2,146,304) |
Total stockholders’ equity | 2,210,285 | 1,958,442 |
Total liabilities and stockholders’ equity | $ 5,992,156 | $ 5,520,746 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | ||
Revenues: | |||||
Total revenues | $ 887,752 | $ 671,720 | $ 1,712,807 | $ 1,290,363 | |
Costs and expenses: | |||||
Product development | [1] | 378,122 | 292,840 | 725,953 | 556,424 |
Sales and marketing | [1] | 280,200 | 202,464 | 553,136 | 395,235 |
General and administrative | [1] | 85,593 | 65,168 | 170,048 | 120,749 |
Total costs and expenses | 1,010,249 | 760,702 | 1,958,690 | 1,450,609 | |
Operating loss | (122,497) | (88,982) | (245,883) | (160,246) | |
Other income (expense), net | (106) | 1,613 | 7,035 | (2,235) | |
Loss before provision for (benefit from) income taxes | (122,603) | (87,369) | (238,848) | (162,481) | |
Provision for (benefit from) income taxes | (1,891) | (1,213) | (1,861) | (1,915) | |
Net loss | $ (120,712) | $ (86,156) | $ (236,987) | $ (160,566) | |
Net loss per share, basic and diluted (in dollars per share) | $ (0.53) | $ (0.40) | $ (1.05) | $ (0.75) | |
Weighted-average shares used to compute net loss per share, basic and diluted (in shares) | 226,392 | 215,932 | 224,857 | 214,517 | |
Subscription services | |||||
Revenues: | |||||
Total revenues | $ 757,155 | $ 565,659 | $ 1,458,179 | $ 1,087,808 | |
Costs and expenses: | |||||
Total costs and expenses | [1] | 121,161 | 87,523 | 233,630 | 167,768 |
Professional services | |||||
Revenues: | |||||
Total revenues | 130,597 | 106,061 | 254,628 | 202,555 | |
Costs and expenses: | |||||
Total costs and expenses | [1] | $ 145,173 | $ 112,707 | $ 275,923 | $ 210,433 |
[1] | (1) Costs and expenses include share-based compensation expenses as follows: Costs of subscription services $ 12,001 $ 8,521 $ 22,416 $ 16,398 Costs of professional services 18,991 12,518 35,141 23,310 Product development 105,758 75,354 196,995 143,865 Sales and marketing 42,690 29,367 81,544 54,979 General and administrative 29,781 21,303 58,360 41,170 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Costs of subscription services | ||||
Share-based compensation expense | $ 12,001 | $ 8,521 | $ 22,416 | $ 16,398 |
Costs of professional services | ||||
Share-based compensation expense | 18,991 | 12,518 | 35,141 | 23,310 |
Product development | ||||
Share-based compensation expense | 105,758 | 75,354 | 196,995 | 143,865 |
Sales and marketing | ||||
Share-based compensation expense | 42,690 | 29,367 | 81,544 | 54,979 |
General and administrative | ||||
Share-based compensation expense | $ 29,781 | $ 21,303 | $ 58,360 | $ 41,170 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (120,712) | $ (86,156) | $ (236,987) | $ (160,566) |
Other comprehensive income (loss), net of tax: | ||||
Net change in foreign currency translation adjustment | 53 | (474) | (593) | (1,261) |
Net change in unrealized gains (losses) on available-for-sale debt securities, net of tax provision of $212, $284, $431, and $284, respectively | 889 | 1,439 | 1,592 | 906 |
Net change in market value of effective foreign currency forward exchange contracts, net of tax provision of $2,629, $2,481, $4,610, and $4,905, respectively | 18,403 | 32,268 | ||
Net change in market value of effective foreign currency forward exchange contracts, net of tax provision of $2,629, $2,481, $4,610, and $4,905, respectively | 17,370 | 34,337 | ||
Other comprehensive income (loss), net of tax | 19,345 | 18,335 | 33,267 | 33,982 |
Comprehensive loss | $ (101,367) | $ (67,821) | $ (203,720) | $ (126,584) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized gains (losses) on available for sale debt securities, tax | $ 212 | $ 284 | $ 431 | $ 284 |
Foreign currency forward exchange contracts, tax | $ 2,629 | $ 4,610 | ||
Foreign currency forward exchange contracts, tax | $ 2,481 | $ 4,905 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Cash flows from operating activities | ||||
Net loss | $ (120,712) | $ (86,156) | $ (236,987) | $ (160,566) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 67,754 | 42,226 | 128,919 | 80,890 |
Share-based compensation expenses | 208,912 | 147,063 | 394,147 | 279,722 |
Amortization of deferred costs | 22,002 | 17,061 | 42,882 | 33,421 |
Amortization of debt discount and issuance costs | 14,301 | 17,490 | 25,888 | 35,629 |
Other | 11,401 | (4,894) | 20,377 | (14,183) |
Changes in operating assets and liabilities, net of business combinations: | ||||
Trade and other receivables, net | (73,437) | (104,758) | 83,942 | 63,944 |
Deferred costs | (28,207) | (23,943) | (46,692) | (36,549) |
Prepaid expenses and other assets | (1,679) | (5,446) | (6,786) | 3,042 |
Accounts payable | 1,047 | 5,987 | 2,550 | 13,941 |
Accrued expenses and other liabilities | (56,524) | (15,182) | (35,121) | (3,555) |
Unearned revenue | 55,461 | 68,168 | (63,637) | (53,887) |
Net cash provided by (used in) operating activities | 100,319 | 57,616 | 309,482 | 241,849 |
Cash flows from investing activities | ||||
Purchases of marketable securities | (582,848) | (526,216) | (1,053,902) | (1,434,342) |
Maturities of marketable securities | 385,710 | 655,205 | 845,807 | 1,341,881 |
Sales of marketable securities | 4,551 | 914,938 | 55,499 | 942,297 |
Owned real estate projects | (34,149) | (49,537) | (73,783) | (88,770) |
Capital expenditures, excluding owned real estate projects | (75,576) | (53,346) | (141,111) | (102,208) |
Business combinations, net of cash acquired | (12,885) | (26,737) | (12,885) | (26,737) |
Purchase of other intangible assets | 0 | (1,000) | 0 | (1,000) |
Purchases of non-marketable equity and other investments | (5,516) | (1,000) | (7,716) | (3,400) |
Other | (32) | 0 | (9) | 0 |
Net cash provided by (used in) investing activities | (320,745) | 912,307 | (388,100) | 627,721 |
Cash flows from financing activities | ||||
Payments on convertible senior notes | (27) | (350,005) | (27) | (350,005) |
Proceeds from issuance of common stock from employee equity plans | 58,085 | 38,686 | 61,540 | 41,297 |
Other | (107) | (59) | (200) | (116) |
Net cash provided by (used in) financing activities | 57,951 | (311,378) | 61,313 | (308,824) |
Effect of exchange rate changes | 75 | (162) | (252) | (582) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (162,400) | 658,383 | (17,557) | 560,164 |
Cash, cash equivalents, and restricted cash at the beginning of period | 787,046 | 1,037,435 | 642,203 | 1,135,654 |
Cash, cash equivalents, and restricted cash at the end of period | 624,646 | 1,695,818 | 624,646 | 1,695,818 |
Supplemental cash flow data | ||||
Cash paid for interest, net of amounts capitalized | 469 | 14 | 472 | 33 |
Cash paid for income taxes | 2,469 | 1,492 | 6,003 | 3,206 |
Non-cash investing and financing activities: | ||||
Purchases of property and equipment, accrued but not paid | 46,910 | 63,052 | 46,910 | 63,052 |
Total cash, cash equivalents, and restricted cash | $ 787,046 | $ 1,037,435 | $ 642,203 | $ 1,135,654 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative-effect adjustment to Accumulated deficit related to the adoption of ASU | Accounting Standards Update 2016-16 | $ 427 | |||||
Cumulative-effect adjustment to Accumulated deficit related to the adoption of ASU | Accounting Standards Update 2018-07 | $ 0 | 0 | ||||
Balance, shares at Jan. 31, 2018 | 211 | |||||
Balance at Jan. 31, 2018 | 3,354,423 | $ 0 | $ (46,413) | (1,727,856) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock under employee equity plans (in shares) | 2 | |||||
Issuance of common stock under employee equity plans | 41,297 | |||||
Vested restricted stock units (in shares) | 4 | |||||
Vested restricted stock units | (4) | |||||
Share-based compensation | 279,722 | |||||
Exercise of convertible senior notes hedges | 193,679 | (193,679) | ||||
Settlement of convertible senior notes (in shares) | 1 | |||||
Settlement of convertible senior notes | (6) | |||||
Other comprehensive income (loss) | $ 33,982 | 33,982 | ||||
Net loss | (160,566) | (160,566) | ||||
Balance, shares at Jul. 31, 2018 | 218 | |||||
Balance at Jul. 31, 2018 | 1,775,224 | 3,869,111 | (193,679) | (12,431) | (1,887,995) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative-effect adjustment to Accumulated deficit related to the adoption of ASU | Accounting Standards Update 2016-16 | 0 | |||||
Cumulative-effect adjustment to Accumulated deficit related to the adoption of ASU | Accounting Standards Update 2018-07 | 0 | 0 | ||||
Balance, shares at Apr. 30, 2018 | 215 | |||||
Balance at Apr. 30, 2018 | 3,489,690 | 0 | (30,766) | (1,801,839) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock under employee equity plans (in shares) | 1 | |||||
Issuance of common stock under employee equity plans | 38,686 | |||||
Vested restricted stock units (in shares) | 1 | |||||
Vested restricted stock units | (1) | |||||
Share-based compensation | 147,063 | |||||
Exercise of convertible senior notes hedges | 193,679 | (193,679) | ||||
Settlement of convertible senior notes (in shares) | 1 | |||||
Settlement of convertible senior notes | (6) | |||||
Other comprehensive income (loss) | 18,335 | 18,335 | ||||
Net loss | (86,156) | (86,156) | ||||
Balance, shares at Jul. 31, 2018 | 218 | |||||
Balance at Jul. 31, 2018 | 1,775,224 | 3,869,111 | (193,679) | (12,431) | (1,887,995) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative-effect adjustment to Accumulated deficit related to the adoption of ASU | Accounting Standards Update 2016-16 | 0 | |||||
Cumulative-effect adjustment to Accumulated deficit related to the adoption of ASU | Accounting Standards Update 2018-07 | 381 | (381) | ||||
Balance, shares at Jan. 31, 2019 | 221 | |||||
Balance at Jan. 31, 2019 | 1,958,442 | 4,105,334 | 0 | (809) | (2,146,304) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock under employee equity plans (in shares) | 2 | |||||
Issuance of common stock under employee equity plans | 61,538 | |||||
Vested restricted stock units (in shares) | 4 | |||||
Vested restricted stock units | (4) | |||||
Share-based compensation | 394,023 | |||||
Exercise of convertible senior notes hedges | 0 | 0 | ||||
Settlement of convertible senior notes (in shares) | 0 | |||||
Settlement of convertible senior notes | 0 | |||||
Other comprehensive income (loss) | 33,267 | 33,267 | ||||
Net loss | (236,987) | (236,987) | ||||
Balance, shares at Jul. 31, 2019 | 227 | |||||
Balance at Jul. 31, 2019 | 2,210,285 | 4,561,272 | 0 | 32,458 | (2,383,672) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative-effect adjustment to Accumulated deficit related to the adoption of ASU | Accounting Standards Update 2016-16 | 0 | |||||
Cumulative-effect adjustment to Accumulated deficit related to the adoption of ASU | Accounting Standards Update 2018-07 | 0 | 0 | ||||
Balance, shares at Apr. 30, 2019 | 225 | |||||
Balance at Apr. 30, 2019 | 4,294,370 | 0 | 13,113 | (2,262,960) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock under employee equity plans (in shares) | 1 | |||||
Issuance of common stock under employee equity plans | 58,084 | |||||
Vested restricted stock units (in shares) | 1 | |||||
Vested restricted stock units | (1) | |||||
Share-based compensation | 208,819 | |||||
Exercise of convertible senior notes hedges | 0 | 0 | ||||
Settlement of convertible senior notes (in shares) | 0 | |||||
Settlement of convertible senior notes | 0 | |||||
Other comprehensive income (loss) | 19,345 | 19,345 | ||||
Net loss | (120,712) | (120,712) | ||||
Balance, shares at Jul. 31, 2019 | 227 | |||||
Balance at Jul. 31, 2019 | $ 2,210,285 | $ 4,561,272 | $ 0 | $ 32,458 | $ (2,383,672) |
Overview and Basis of Presentat
Overview and Basis of Presentation | 6 Months Ended |
Jul. 31, 2019 | |
Accounting Policies [Abstract] | |
Overview and Basis of Presentation | Overview and Basis of Presentation Company and Background Workday provides financial management, human capital management, planning, and analytics applications designed for the world’s largest companies, educational institutions, and government agencies. We offer innovative and adaptable technology focused on the consumer internet experience and cloud delivery model. Our applications are designed for global enterprises to manage complex and dynamic operating environments. We provide our customers highly adaptable, accessible, and reliable applications to manage critical business functions that enable them to optimize their financial and human capital resources. We were originally incorporated in March 2005 in Nevada, and in June 2012 we reincorporated in Delaware. As used in this report, the terms “Workday,” “registrant,” “we,” “us,” and “our” mean Workday, Inc. and its subsidiaries unless the context indicates otherwise. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The condensed consolidated financial statements include the results of Workday, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. 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. In the opinion of our management, the information contained herein reflects all adjustments necessary for a fair presentation of Workday’s results of operations, financial position, cash flows, and stockholders' equity. All such adjustments are of a normal, recurring nature. The results of operations for the quarter ended July 31, 2019 , shown in this report are not necessarily indicative of the results to be expected for the full year ending January 31, 2020 . The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended January 31, 2019 , filed with the SEC on March 18, 2019. There have been no material changes in our significant accounting policies as described in our Annual Report on Form 10-K for the year ended January 31, 2019 , other than the adoption of accounting pronouncements as described in Note 2, Accounting Standards. Certain prior period amounts reported in our condensed consolidated financial statements have been reclassified to conform to current period presentation. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires us to make certain estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. These estimates include, but are not limited to, the fair value of assets acquired and liabilities assumed through business combinations, the determination of the period of benefit for deferred commissions, certain assumptions used in the valuation of equity awards, and assumptions used in the valuation of non-marketable equity investments. Actual results could differ from those estimates and such differences could be material to our condensed consolidated financial position and results of operations. Segment Information We operate in one operating segment, cloud applications. Operating segments are defined as components of an enterprise where separate financial information is evaluated regularly by the chief operating decision maker, who is our chief executive officer, in deciding how to allocate resources and assessing performance. Our chief operating decision maker allocates resources and assesses performance based upon discrete financial information at the consolidated level. |
Accounting Standards
Accounting Standards | 6 Months Ended |
Jul. 31, 2019 | |
Accounting Policies [Abstract] | |
Accounting Standards | Accounting Standards Recently Adopted Accounting Pronouncements ASU No. 2016-02 In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) , which requires the recognition of right-of-use assets and lease liabilities on the balance sheet for those leases currently classified as operating leases under Accounting Standards Codification Topic 840 Leases . Accounting for finance leases remains substantially unchanged. We adopted this standard effective February 1, 2019, using a modified retrospective method, under which financial results reported in periods prior to February 1, 2019, were not adjusted. We elected the package of transition practical expedients, which among other things, does not require reassessment of lease classifications. Additionally, we elected to combine lease and non-lease components for each of our existing underlying asset classes and to not include leases with a term of 12 months or less on our condensed consolidated balance sheets. The most significant impact of adopting this standard was the recognition of $279 million of operating lease right-of-use assets and $307 million of operating lease liabilities on our condensed consolidated balance sheet as of February 1, 2019. Additionally, we reclassified $28 million in previously recognized deferred rent obligations and lease incentives to operating lease right-of-use assets. This adoption did not result in any cumulative-effect adjustments to Accumulated deficit, and there was no material impact on our condensed consolidated statement of operations. For further information, see Note 11, Leases. ASU No. 2017-12 In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815) , to better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. We adopted this new standard effective February 1, 2019. As a result of adopting the standard, the entire change in the fair value of our foreign currency forward contracts designated as cash flow hedges will be presented in the same income statement line item as the respective hedged items. This adoption did not result in any cumulative-effect adjustments to Accumulated deficit, and the amended presentation guidance was applied prospectively. For further information, see Note 9, Derivative Instruments. ASU No. 2018-02 In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which provides entities the option to reclassify tax effects stranded in accumulated other comprehensive income as a result of the 2017 Tax Cuts and Jobs Act to retained earnings. We adopted this new standard effective February 1, 2019. The adoption of this new standard did not have a material impact on our condensed consolidated financial statements. ASU No. 2018-07 In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting , which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from non-employees, with certain exceptions. We adopted this standard effective February 1, 2019, and remeasured all outstanding equity-classified non-employee share-based payment awards at fair value as of the adoption date, which resulted in a $0.4 million cumulative-effect adjustment to Accumulated deficit. Recently Issued Accounting Pronouncements ASU No. 2016-13 In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost, including trade receivables. ASU No. 2016-13 replaces the existing incurred loss impairment model with an expected loss model that requires the use of forward-looking information to calculate credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes may result in more timely recognition of credit losses. We plan to adopt this new standard in the first quarter of our fiscal 2021. We are evaluating the accounting, transition, and disclosure requirements of this standard. The effect on our condensed consolidated financial statements will largely depend on the composition and credit quality of our investment portfolio and trade receivables as well as the economic conditions at the time of adoption. |
Investments
Investments | 6 Months Ended |
Jul. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Debt Securities As of July 31, 2019 , debt securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value U.S. treasury securities $ 524,462 $ 554 $ (31 ) $ 524,985 U.S. agency obligations 240,029 229 (40 ) 240,218 Corporate bonds 438,825 1,232 (134 ) 439,923 Commercial paper 182,886 — — 182,886 $ 1,386,202 $ 2,015 $ (205 ) $ 1,388,012 Included in cash and cash equivalents $ 81,003 $ 3 $ — $ 81,006 Included in marketable securities $ 1,305,199 $ 2,012 $ (205 ) $ 1,307,006 As of January 31, 2019 , debt securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value U.S. treasury securities $ 396,347 $ 61 $ (178 ) $ 396,230 U.S. agency obligations 241,914 73 (151 ) 241,836 Corporate bonds 419,784 336 (352 ) 419,768 Commercial paper 254,175 — (2 ) 254,173 $ 1,312,220 $ 470 $ (683 ) $ 1,312,007 Included in cash and cash equivalents $ 216,270 $ — $ — $ 216,270 Included in marketable securities $ 1,095,950 $ 470 $ (683 ) $ 1,095,737 We do not believe the unrealized losses represent other-than-temporary impairments based on our evaluation of available evidence as of July 31, 2019 , which includes an assessment of whether it is more likely than not that we will be required to sell the investment before recovery of the investment's amortized cost basis. The unrealized losses on debt securities that have been in a net loss position for 12 months or more were not material as of July 31, 2019 . We classify our debt securities as available-for-sale at the time of purchase and reevaluate such classification as of each balance sheet date. We consider all debt securities as available for use in current operations, including those with maturity dates beyond one year, and therefore classify these securities as current assets in the accompanying condensed consolidated balance sheets. Debt securities included in Marketable securities on the condensed consolidated balance sheets consist of securities with original maturities at the time of purchase greater than three months, and the remainder of the securities is included in Cash and cash equivalents. We sold $5 million and $915 million of our debt securities during the three months ended July 31, 2019 , and 2018, respectively, and $5 million and $942 million of our debt securities during the six months ended July 31, 2019 , and 2018, respectively. The realized gains and losses from the sales were immaterial. Equity Investments Equity investments consisted of the following (in thousands): Condensed Consolidated Balance Sheets Location July 31, 2019 January 31, 2019 Money market funds (1) Cash and cash equivalents $ 348,109 $ 237,071 Marketable equity investments (1) Marketable securities — 44,127 Non-marketable equity investments (2) Other assets 47,060 36,925 $ 395,169 $ 318,123 (1) Investments with readily determinable fair values. (2) Investments in privately held companies without readily determinable fair values. There were no sales of marketable equity investments during the three months ended July 31, 2019 . We sold $51 million of marketable equity investments during the six months ended July 31, 2019 , with a corresponding gain recognized of $7 million . There were no sales of marketable equity investments during the three and six months ended July 31, 2018 . No material adjustments were made to the carrying value of the non-marketable equity investments as measured under the measurement alternative during the three and six months ended July 31, 2019, and 2018. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jul. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We measure our cash equivalents, marketable securities, and foreign currency derivative contracts at fair value at each reporting period using a fair value hierarchy that requires that we maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 — Other inputs that are directly or indirectly observable in the marketplace. Level 3 — Unobservable inputs that are supported by little or no market activity. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents information about our assets and liabilities that are measured at fair value on a recurring basis and their assigned levels within the valuation hierarchy as of July 31, 2019 (in thousands): Level 1 Level 2 Level 3 Total U.S. treasury securities $ 524,985 $ — $ — $ 524,985 U.S. agency obligations — 240,218 — 240,218 Corporate bonds — 439,923 — 439,923 Commercial paper — 182,886 — 182,886 Money market funds 348,109 — — 348,109 Foreign currency derivative assets — 53,135 — 53,135 Total assets $ 873,094 $ 916,162 $ — $ 1,789,256 Foreign currency derivative liabilities $ — $ 518 $ — $ 518 Total liabilities $ — $ 518 $ — $ 518 The following table presents information about our assets and liabilities that are measured at fair value on a recurring basis and their assigned levels within the valuation hierarchy as of January 31, 2019 (in thousands): Level 1 Level 2 Level 3 Total U.S. treasury securities $ 396,230 $ — $ — $ 396,230 U.S. agency obligations — 241,836 — 241,836 Corporate bonds — 419,768 — 419,768 Commercial paper — 254,173 — 254,173 Money market funds 237,071 — — 237,071 Marketable equity investments 44,127 — — 44,127 Foreign currency derivative assets — 22,570 — 22,570 Total assets $ 677,428 $ 938,347 $ — $ 1,615,775 Foreign currency derivative liabilities $ — $ 3,135 $ — $ 3,135 Total liabilities $ — $ 3,135 $ — $ 3,135 Fair Value Measurements of Other Financial Instruments The following table presents the carrying amounts and estimated fair values of our financial instruments that are not recorded at fair value on the condensed consolidated balance sheets (in thousands): July 31, 2019 January 31, 2019 Net Carrying Amount Estimated Fair Value Net Carrying Amount Estimated Fair Value 1.50% Convertible senior notes $ 238,317 $ 662,362 $ 232,514 $ 557,074 0.25% Convertible senior notes 994,872 1,718,100 972,264 1,560,228 In June 2013, we completed an offering of $250 million of 1.50% convertible senior notes due July 15, 2020 (“2020 Notes”). In September 2017, we completed an offering of $1.15 billion of 0.25% convertible senior notes due October 1, 2022 (“2022 Notes” and together with the 2020 Notes, the “Notes”). The estimated fair values of the Notes, which we have classified as Level 2 financial instruments, were determined based on the quoted bid prices of the Notes in an over-the-counter market on the last trading day of each reporting period. The if-converted value of the 2020 Notes exceeded the principal amount by $362 million . The if-converted value of the 2022 Notes exceeded the principal amount by $413 million . The if-converted values were determined based on the closing price of our common stock of $199.98 on July 31, 2019 . For further information, see Note 10, Convertible Senior Notes, Net. |
Deferred Costs
Deferred Costs | 6 Months Ended |
Jul. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Deferred Costs | Deferred Costs Deferred costs, which consist of deferred sales commissions, were $268 million and $264 million as of July 31, 2019 , and January 31, 2019 , respectively. Amortization expense for the deferred costs was $22 million and $17 million for the three months ended July 31, 2019 , and 2018 , respectively, and $43 million and $33 million for the six months ended July 31, 2019 , and 2018 , respectively. There was no impairment loss in relation to the costs capitalized for the periods presented. |
Property and Equipment, Net
Property and Equipment, Net | 6 Months Ended |
Jul. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): July 31, 2019 January 31, 2019 Land and land improvements $ 37,060 $ 22,694 Buildings 480,089 433,863 Computers, equipment, and software 645,905 539,090 Furniture and fixtures 52,235 38,840 Leasehold improvements 185,303 162,657 Property and equipment, gross (1) 1,400,592 1,197,144 Less accumulated depreciation and amortization (481,069 ) (400,237 ) Property and equipment, net $ 919,523 $ 796,907 (1) Property and equipment, gross included construction-in-progress for owned real estate projects of $2 million and $355 million that had not yet been placed in service as of July 31, 2019 , and January 31, 2019 , respectively. The decrease in construction-in-progress was due to the completion of our development center in the second quarter of fiscal 2020. Depreciation expense totaled $47 million and $36 million for the three months ended July 31, 2019 , and 2018 , respectively, and $88 million and $69 million for the six months ended July 31, 2019 , and 2018 , respectively. Interest costs capitalized to property and equipment totaled $2 million and $2 million for the three months ended July 31, 2019 , and 2018 , respectively, and $6 million and $4 million for the six months ended July 31, 2019 , and 2018 , respectively. |
Acquisition-related Intangible
Acquisition-related Intangible Assets, Net | 6 Months Ended |
Jul. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Acquisition-related Intangible Assets, Net | Acquisition-related Intangible Assets, Net Acquisition-related intangible assets, net consisted of the following (in thousands): July 31, 2019 January 31, 2019 Developed technology $ 190,400 $ 186,800 Customer relationships 189,000 189,000 Trade name 12,000 12,000 Backlog 11,000 11,000 Acquisition-related intangible assets, gross 402,400 398,800 Less accumulated amortization (124,447 ) (85,560 ) Acquisition-related intangible assets, net $ 277,953 $ 313,240 In the second quarter of fiscal 2020, acquisition activity resulted in an increase of $4 million and $9 million in acquired developed technology and goodwill, respectively. Amortization expense related to acquisition-related intangible assets was $20 million and $5 million for the three months ended July 31, 2019 , and 2018 , respectively, and $39 million and $10 million for the six months ended July 31, 2019 , and 2018 , respectively. As of July 31, 2019 , our future estimated amortization expense related to acquisition-related intangible assets is as follows (in thousands): Fiscal period: Remainder of 2020 $ 31,369 2021 50,342 2022 43,733 2023 41,009 2024 29,833 Thereafter 81,667 Total $ 277,953 |
Other Assets
Other Assets | 6 Months Ended |
Jul. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets Other assets consisted of the following (in thousands): July 31, 2019 January 31, 2019 Non-marketable equity and other investments $ 61,258 $ 50,546 Prepayments for computing infrastructure platforms 11,612 16,976 Technology patents and other intangible assets, net 18,702 20,335 Deposits 4,010 4,383 Net deferred tax assets 4,495 4,544 Other 38,818 50,576 Total $ 138,895 $ 147,360 Technology patents and other intangible assets with estimable useful lives are amortized on a straight-line basis. As of July 31, 2019 , the future estimated amortization expense is as follows (in thousands): Fiscal period: Remainder of 2020 $ 1,621 2021 2,926 2022 2,512 2023 2,246 2024 1,943 Thereafter 7,454 Total $ 18,702 |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jul. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments We conduct business on a global basis in multiple foreign currencies, subjecting Workday to foreign currency risk. To mitigate this risk, we utilize hedging contracts as described below. We do not enter into any derivatives for trading or speculative purposes. Our foreign currency contracts are classified within Level 2 of the fair value hierarchy because the valuation inputs are based on quoted prices and market observable data of similar instruments in active markets, such as currency spot and forward rates. Foreign Currency Forward Contracts Designated as Cash Flow Hedges We are exposed to foreign currency fluctuations resulting from customer contracts denominated in foreign currencies. We have a hedging program in which we enter into foreign currency forward contracts related to certain customer contracts. We designate these forward contracts as cash flow hedging instruments since the accounting criteria for such designation have been met. Foreign currency forward contracts designated as cash flow hedges are recorded on the condensed consolidated balance sheets at fair value. Gains or losses resulting from changes in the fair value of these hedges are recorded in Accumulated other comprehensive income (loss) (“AOCI”) on the condensed consolidated balance sheets and will be subsequently reclassified to the related revenue line item on the condensed consolidated statements of operations in the same period that the underlying revenues are earned. Prior to the adoption of ASU No. 2017-12, the changes in value of these contracts resulting from changes in forward points were excluded from the assessment of hedge effectiveness and were recorded as incurred in Other income (expense), net on the condensed consolidated statements of operations. Upon adoption of ASU No. 2017-12, we elected to prospectively include changes in the value of these contracts resulting from changes in forward points in the assessment of hedge effectiveness. These changes are recorded in AOCI on the condensed consolidated balance sheets and will be subsequently reclassified to the related revenue line item on the condensed consolidated statements of operations in the same period that the underlying revenues are earned. Cash flows from such forward contracts are classified as operating activities. As of July 31, 2019 , and January 31, 2019 , we had outstanding foreign currency forward contracts designated as cash flow hedges with total notional values of $822 million and $717 million , respectively. All contracts have maturities not greater than 49 months. The notional value represents the amount that will be bought or sold upon maturity of the forward contract. Foreign Currency Forward Contracts Not Designated as Hedges We also enter into foreign currency forward contracts to hedge a portion of our net outstanding monetary assets and liabilities. These forward contracts are intended to offset the foreign currency gains or losses associated with the underlying monetary assets and liabilities and are recorded on the condensed consolidated balance sheet at fair value. The forward contracts are not designated as hedging instruments under applicable accounting guidance, and therefore all changes in the fair value of the forward contracts are recorded in Other income (expense), net on the condensed consolidated statements of operations. Cash flows from such forward contracts are classified as operating activities. As of July 31, 2019 , and January 31, 2019 , we had outstanding forward contracts not designated as hedges with total notional values of $127 million and $198 million , respectively. The fair values of outstanding derivative instruments were as follows (in thousands): Condensed Consolidated Balance Sheets Location July 31, 2019 January 31, 2019 Derivative assets: Foreign currency forward contracts designated as cash flow hedges Prepaid expenses and other current assets $ 28,469 $ 12,076 Foreign currency forward contracts designated as cash flow hedges Other assets 21,656 10,015 Foreign currency forward contracts not designated as hedges Prepaid expenses and other current assets 2,823 459 Foreign currency forward contracts not designated as hedges Other assets 187 20 Total derivative assets $ 53,135 $ 22,570 Derivative liabilities: Foreign currency forward contracts designated as cash flow hedges Accrued expenses and other current liabilities $ 85 $ 983 Foreign currency forward contracts designated as cash flow hedges Other liabilities 80 706 Foreign currency forward contracts not designated as hedges Accrued expenses and other current liabilities 276 1,446 Foreign currency forward contracts not designated as hedges Other liabilities 77 — Total derivative liabilities $ 518 $ 3,135 The effect of foreign currency forward contracts designated as cash flow hedges on the condensed consolidated statements of operations was as follows (in thousands): Condensed Consolidated Statements of Operations Location Three Months Ended July 31, 2019 Six Months Ended July 31, 2019 Total revenues Revenues $ 887,752 $ 1,712,807 Amount of gains (losses) related to foreign currency forward contracts designated as cash flow hedges Revenues 896 912 Pre-tax gains (losses) associated with foreign currency forward contracts designated as cash flow hedges were as follows (in thousands): Condensed Consolidated Statements of Operations and Statements of Comprehensive Loss Locations Three Months Ended July 31, Six Months Ended July 31, 2019 2018 2019 2018 Gains (losses) recognized in OCI (1) Net change in market value of effective foreign currency forward exchange contracts $ 21,928 $ 17,891 $ 37,790 $ 36,165 Gains (losses) reclassified from AOCI into income Revenues 896 (1,960 ) 912 (3,077 ) Gains (losses) recognized in income (amount excluded from effectiveness testing and ineffective portion) Other income (expense), net — 4,027 — 6,258 (1) Of the total value accumulated in OCI from foreign currency forward contracts designated as cash flow hedges as of July 31, 2019 , net gains of $14 million are expected to be reclassified out of AOCI within the next 12 months. Gains (losses) associated with foreign currency forward contracts not designated as cash flow hedges were as follows (in thousands): Condensed Consolidated Statements of Operations Location Three Months Ended July 31, Six Months Ended July 31, Derivative Type 2019 2018 2019 2018 Foreign currency forward contracts not designated as hedges Other income (expense), net $ 2,229 $ 1,884 $ 4,627 $ 3,678 We are subject to master netting agreements with certain counterparties of the foreign exchange contracts, under which we are permitted to net settle transactions of the same currency with a single net amount payable by one party to the other. It is our policy to present the derivatives gross on the condensed consolidated balance sheets. Our foreign currency forward contracts are not subject to any credit contingent features or collateral requirements. We manage our exposure to counterparty risk by entering into contracts with a diversified group of major financial institutions and by actively monitoring outstanding positions. As of July 31, 2019 , information related to these offsetting arrangements was as follows (in thousands): Gross Amounts of Recognized Assets Gross Amounts Offset on the Condensed Consolidated Balance Sheets Net Amounts of Assets Presented on the Condensed Consolidated Balance Sheets Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets Net Assets Exposed Financial Instruments Cash Collateral Received Derivative assets: Counterparty A $ 4,101 $ — $ 4,101 $ — $ — $ 4,101 Counterparty B 44,336 — 44,336 (102 ) — 44,234 Counterparty C 4,698 — 4,698 (416 ) — 4,282 Total $ 53,135 $ — $ 53,135 $ (518 ) $ — $ 52,617 Gross Amounts of Recognized Liabilities Gross Amounts Offset on the Condensed Consolidated Balance Sheets Net Amounts of Liabilities Presented on the Condensed Consolidated Balance Sheets Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets Net Liabilities Exposed Financial Instruments Cash Collateral Pledged Derivative liabilities: Counterparty A $ — $ — $ — $ — $ — $ — Counterparty B 102 — 102 (102 ) — — Counterparty C 416 — 416 (416 ) — — Total $ 518 $ — $ 518 $ (518 ) $ — $ — |
Convertible Senior Notes, Net
Convertible Senior Notes, Net | 6 Months Ended |
Jul. 31, 2019 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes, Net | Convertible Senior Notes, Net Convertible Senior Notes In June 2013, we issued 0.75% convertible senior notes due July 15, 2018, with a principal amount of $350 million (“2018 Notes”). The 2018 Notes were unsecured, unsubordinated obligations, and interest was payable in cash in arrears at a fixed rate of 0.75% on January 15 and July 15 of each year. During the second quarter of fiscal 2019, the 2018 Notes were converted by note holders and we repaid the $350 million principal balance in cash. We also distributed approximately 1.5 million shares of our Class A common stock to note holders during the second quarter of fiscal 2019, which represents the conversion value in excess of the principal amount. In June 2013, we issued 1.50% convertible senior notes due July 15, 2020, with a principal amount of $250 million . The 2020 Notes are unsecured, unsubordinated obligations, and interest is payable in cash in arrears at a fixed rate of 1.50% on January 15 and July 15 of each year. The 2020 Notes mature on July 15, 2020, unless repurchased or converted in accordance with their terms prior to such date. We cannot redeem the 2020 Notes prior to maturity. In September 2017, we issued 0.25% convertible senior notes due October 1, 2022, with a principal amount of $1.15 billion . The 2022 Notes are unsecured, unsubordinated obligations, and interest is payable in cash in arrears at a fixed rate of 0.25% on April 1 and October 1 of each year. The 2022 Notes mature on October 1, 2022, unless repurchased or converted in accordance with their terms prior to such date. We cannot redeem the 2022 Notes prior to maturity. The terms of the Notes are governed by Indentures by and between us and Wells Fargo Bank, National Association, as Trustee (the “Indentures”). Upon conversion, holders of the Notes will receive cash, shares of Class A common stock, or a combination of cash and shares of Class A common stock, at our election. For the 2020 Notes, the initial conversion rate is 12.2340 shares of Class A common stock per $1,000 principal amount, which is equal to an initial conversion price of approximately $81.74 per share of Class A common stock, subject to adjustment. Prior to the close of business on March 13, 2020, conversion of the 2020 Notes is subject to the satisfaction of certain conditions, as described below. For the 2022 Notes, the initial conversion rate is 6.7982 shares of Class A common stock per $1,000 principal amount, which is equal to an initial conversion price of approximately $147.10 per share of Class A common stock, subject to adjustment. Prior to the close of business on May 31, 2022, conversion of the 2022 Notes is subject to the satisfaction of certain conditions, as described below. Holders of the Notes who convert their Notes in connection with certain corporate events that constitute a make-whole fundamental change (as defined in the Indentures) are, under certain circumstances, entitled to an increase in the conversion rate. Additionally, in the event of a corporate event that constitutes a fundamental change (as defined in the Indentures), holders of the Notes may require us to repurchase all or a portion of their Notes at a price equal to 100% of the principal amount of the Notes, plus any accrued and unpaid interest. Holders of the 2020 Notes and 2022 Notes may convert all or a portion of their Notes prior to the close of business on March 13, 2020 and May 31, 2022, respectively, in multiples of $1,000 principal amount, only under the following circumstances: • if the last reported sale price of Class A common stock for at least 20 trading days during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price of the respective Notes on each applicable trading day; • during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the respective Notes for each day of that five day consecutive trading day period was less than 98% of the product of the last reported sale price of Class A common stock and the conversion rate of the respective Notes on such trading day; or • upon the occurrence of specified corporate events, as noted in the Indentures. On or after March 15, 2020, for the 2020 Notes and June 1, 2022, for the 2022 Notes, holders of the respective Notes may convert their Notes at any time until the close of business on the second scheduled trading day immediately preceding the respective maturity date of their Notes. In accounting for the issuance of the Notes, we separated each of the Notes into liability and equity components. The carrying amounts of the liability components were calculated by measuring the fair value of similar liabilities that do not have associated convertible features. The carrying amount of the equity components representing the conversion option were determined by deducting the fair value of the liability components from the par value of the respective Notes. These differences represent debt discounts that are amortized to interest expense over the respective terms of the Notes using the effective interest rate method. The equity components are not remeasured as long as they continue to meet the conditions for equity classification. In accounting for the issuance costs related to the Notes, we allocated the total amount of issuance costs incurred to liability and equity components based on their relative values. Issuance costs attributable to the liability components are being amortized on a straight-line basis, which approximates the effective interest rate method, to interest expense over the respective terms of the Notes. The issuance costs attributable to the equity components were netted against the respective equity components in Additional paid-in capital. For the 2018 Notes, we recorded liability issuance costs of $7 million and equity issuance costs of $2 million . Amortization expense for the liability issuance costs was $0.3 million and $0.6 million for the three- and six-month periods ended July 31, 2018. There was no related amortization expense for the three and six months ended July 31, 2019, as the 2018 Notes were converted and repaid during the second quarter of fiscal 2019. For the 2020 Notes, we recorded liability issuance costs of $5 million and equity issuance costs of $2 million . Amortization expense for the liability issuance costs was $0.2 million and $0.3 million for each of the three- and six-month periods ended July 31, 2019 , and 2018 , respectively. For the 2022 Notes, we recorded liability issuance costs of $14 million and equity issuance costs of $4 million . Amortization expense for the liability issuance costs was $0.7 million and $1.4 million for each of the three- and six-month periods ended July 31, 2019 , and 2018 , respectively. The Notes, net consisted of the following (in thousands): July 31, 2019 January 31, 2019 2020 Notes 2022 Notes 2020 Notes 2022 Notes Principal amounts: Principal $ 249,948 $ 1,150,000 $ 249,975 $ 1,150,000 Unamortized debt discount (10,987 ) (146,070 ) (16,480 ) (167,249 ) Unamortized debt issuance costs (644 ) (9,058 ) (981 ) (10,487 ) Net carrying amount $ 238,317 $ 994,872 $ 232,514 $ 972,264 Carrying amount of the equity component (1) $ 66,007 $ 219,702 $ 66,007 $ 219,702 (1) Included on the condensed consolidated balance sheets within Additional paid-in capital, net of $2 million and $4 million for the 2020 Notes and 2022 Notes, respectively, in equity issuance costs. As of July 31, 2019 , the 2020 Notes and 2022 Notes have remaining lives of approximately 11 months and 38 months , respectively. For more than 20 trading days during the 30 consecutive trading days ended April 30, 2018, July 31, 2018, October 31, 2018, January 31, 2019, April 30, 2019, and July 31, 2019 , the last reported sale price of our Class A common stock exceeded 130% of the conversion price of the 2020 Notes. As a result, the 2020 Notes were convertible at the option of the holders during the second, third, and fourth quarter of fiscal 2019, the first and second quarter of fiscal 2020, and will continue to be convertible during the third quarter of fiscal 2020. Accordingly, the 2020 Notes are classified as current on the condensed consolidated balance sheet as of July 31, 2019 . From August 1, 2019, through the date of this filing, the amount of the principal balance of the 2020 Notes that has been converted or for which conversion has been requested was not material. For more than 20 trading days during the 30 consecutive trading days ended July 31, 2019, the last reported sale price of our Class A common stock exceeded 130% of the conversion price of the 2022 Notes. As a result, the 2022 Notes are convertible at the option of the holders during the third quarter of fiscal 2020. Accordingly, the 2022 Notes are classified as current on the condensed consolidated balance sheet as of July 31, 2019. From August 1, 2019, through the date of the filing, the note holders of 2022 Notes have not submitted requests for conversion. The effective interest rates of the liability components of the 2018 Notes, 2020 Notes, and 2022 Notes are 5.75% , 6.25% , and 4.60% , respectively. These interest rates were based on the interest rates of similar liabilities at the time of issuance that did not have associated convertible features. The following table sets forth total interest expense recognized related to the Notes (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2019 2018 2019 2018 2020 Notes 2022 Notes 2018 Notes 2020 Notes 2022 Notes 2020 Notes 2022 Notes 2018 Notes 2020 Notes 2022 Notes Contractual interest expense $ 938 $ 719 $ 540 $ 938 $ 719 $ 1,875 $ 1,438 $ 1,196 $ 1,875 $ 1,438 Interest cost related to amortization of debt issuance costs 168 715 289 169 715 337 1,429 641 337 1,429 Interest cost related to amortization of the debt discount 2,768 10,650 3,567 2,601 10,175 5,493 21,179 7,850 5,162 20,236 We capitalized interest costs related to the Notes of $2 million for each of the three-month periods ended July 31, 2019, and 2018 , and $6 million and $4 million for the six months ended July 31, 2019, and 2018, respectively. Notes Hedges In connection with the issuance of the Notes, we entered into convertible note hedge transactions with respect to our Class A common stock (“Purchased Options”). The Purchased Options relating to the 2018 Notes gave us the option to purchase, subject to anti-dilution adjustments substantially identical to those in the 2018 Notes, approximately 4.2 million shares of our Class A common stock for $83.28 per share, exercisable upon conversion of the 2018 Notes. During the second quarter of fiscal 2019, we received approximately 1.5 million shares of our Class A common stock from the exercise of the Purchased Options relating to the 2018 Notes. These shares were recorded as treasury stock. The Purchased Options relating to the 2020 Notes give us the option to purchase, subject to anti-dilution adjustments substantially identical to those in the 2020 Notes, approximately 3.1 million shares of our Class A common stock for $81.74 per share, exercisable upon conversion of the 2020 Notes. The Purchased Options relating to the 2022 Notes give us the option to purchase, subject to anti-dilution adjustments substantially identical to those in the 2022 Notes, approximately 7.8 million shares of our Class A common stock for $147.10 per share, exercisable upon conversion of the 2022 Notes. The Purchased Options will expire in 2020 for the 2020 Notes and in 2022 for the 2022 Notes, if not exercised earlier. The Purchased Options are intended to offset potential economic dilution to our Class A common stock upon any conversion of the Notes. The Purchased Options are separate transactions and are not part of the terms of the Notes. We paid an aggregate amount of $144 million for the Purchased Options relating to the 2018 Notes and 2020 Notes, and $176 million for the Purchased Options relating to the 2022 Notes. The amount paid for the Purchased Options is included in Additional paid-in capital on the condensed consolidated balance sheets. Warrants In connection with the issuance of the Notes, we also entered into warrant transactions to sell warrants (“Warrants”) to acquire, subject to anti-dilution adjustments, up to approximately 4.2 million shares over 60 scheduled trading days beginning in October 2018, 3.1 million shares over 60 scheduled trading days beginning in October 2020, and 7.8 million shares over 60 scheduled trading days beginning in January 2023 of our Class A common stock at an exercise price of $107.96 , $107.96 , and $213.96 per share, respectively. If the Warrants are not exercised on their exercise dates, they will expire. If the market value per share of our Class A common stock exceeds the applicable exercise price of the Warrants, the Warrants will have a dilutive effect on our earnings per share assuming that we are profitable. The Warrants are separate transactions and are not part of the terms of the Notes or the Purchased Options. We received aggregate proceeds of $93 million from the sale of the Warrants related to the 2018 Notes and the 2020 Notes, and $81 million from the sale of the Warrants related to the 2022 Notes. The proceeds from the sale of the Warrants are recorded in Additional paid-in capital on the condensed consolidated balance sheets. During the third and fourth quarters of fiscal 2019, Warrants related to the 2018 Notes were exercised, and we distributed approximately 1.1 million shares of our Class A common stock to warrant holders primarily utilizing treasury stock. The number of net shares distributed was determined based on the number of Warrants exercised multiplied by the difference between the exercise price of the Warrants and their daily volume weighted-average stock price. As of July 31, 2019 , there were no Warrants outstanding related to the 2018 Notes. |
Leases
Leases | 6 Months Ended |
Jul. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases We have entered into operating lease agreements for our office space, data centers, and other property and equipment. Operating lease right-of-use assets and operating lease liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. Right-of-use assets also include adjustments related to prepaid or deferred lease payments and lease incentives. As most of our leases do not provide an implicit interest rate, we use our incremental borrowing rate based on information available at the lease commencement date to determine the present value of lease payments. As of July 31, 2019 , total operating lease right-of-use assets and operating lease liabilities were approximately $295 million and $309 million , respectively. Options to extend or terminate a lease are included in the lease term when it is reasonably certain that we will exercise such options. The remaining lease term of our leases generally ranges from less than one year to ten years . The components of operating lease expense were as follows (in thousands): Three Months Ended July 31, 2019 Six Months Ended July 31, 2019 Operating lease cost $ 18,961 $ 37,475 Short-term lease cost 4,205 7,845 Variable lease cost 5,138 8,564 Total operating lease cost $ 28,304 $ 53,884 Information related to our operating lease right-of-use assets and operating lease liabilities was as follows (in thousands, except periods and percentages): Three Months Ended July 31, 2019 Six Months Ended July 31, 2019 Cash paid for operating lease liabilities $ 19,324 $ 35,508 Operating lease right-of-use assets obtained in exchange for new operating lease liabilities (1) 31,071 327,021 As of July 31, 2019 Weighted average remaining lease term (in years) 6 Weighted average discount rate 3.53 % (1) Includes $279 million for operating leases existing on February 1, 2019, and $48 million for operating leases that commenced in the first half of fiscal 2020. As of July 31, 2019, maturities of operating lease liabilities were as follows (in thousands): Fiscal period: Remainder of 2020 $ 34,512 2021 77,259 2022 66,814 2023 53,607 2024 44,483 Thereafter 76,409 Total lease payments 353,084 Less imputed interest (43,667 ) Total $ 309,417 As of July 31, 2019, we have additional operating leases, primarily for office space, that have not yet commenced with total undiscounted lease payments of $33 million . These operating leases will commence between fiscal 2020 and fiscal 2021, with lease terms ranging from three to six years . Related Party Lease Transactions We lease certain office space from an affiliate of our Chairman, Mr. Duffield, adjacent to our corporate headquarters in Pleasanton, California, under various lease agreements. As of July 31, 2019, the operating lease right-of-use assets and operating lease liabilities related to these agreements were $53 million and $64 million , respectively. The weighted average remaining lease term of these agreements is five years . The total rent expense under these agreements was $3 million and $2 million for the three months ended July 31, 2019, and 2018, respectively, and $6 million and $5 million for the six months ended July 31, 2019, and 2018, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Computing Infrastructure-related Commitments We have entered into non-cancelable agreements with computing infrastructure vendors with various expiration dates. In June 2019, we entered into a $500 million agreement for the use of cloud services that superseded a previous agreement and expires in June 2025. As of July 31, 2019, future non-cancelable minimum payments under these agreements were approximately $500 million . Legal Matters We are a party to various legal proceedings and claims that arise in the ordinary course of business. We make a provision for a liability relating to legal matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular matter. In our opinion, as of July 31, 2019 , there was not at least a reasonable possibility that we had incurred a material loss, or a material loss in excess of a recorded accrual, with respect to such loss contingencies. |
Common Stock and Stockholders'
Common Stock and Stockholders' Equity | 6 Months Ended |
Jul. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Common Stock and Stockholders' Equity | Common Stock and Stockholders’ Equity Common Stock As of July 31, 2019 , there were 164 million shares of Class A common stock, and 64 million shares of Class B common stock outstanding. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting and conversion. Each share of Class A common stock is entitled to one vote per share and each share of Class B common stock is entitled to 10 votes per share. Each share of Class B common stock can be converted into a share of Class A common stock at any time at the option of the holder. Employee Equity Plans Our 2012 Equity Incentive Plan (“EIP”) serves as the successor to our 2005 Stock Plan (together with the EIP, the “Stock Plans”). Pursuant to the terms of the EIP, the share reserve increased by 11 million shares in March 2019. As of July 31, 2019 , we had approximately 71 million shares of Class A common stock available for future grants. In connection with the acquisition of Adaptive Insights in fiscal 2019, we assumed unvested awards that had been granted under the Adaptive Insights 2013 Equity Incentive Plan. We also have a 2012 Employee Stock Purchase Plan (“ESPP”). Under the ESPP, eligible employees are granted options to purchase shares at the lower of 85% of the fair market value of the stock at the time of grant or 85% of the fair market value at the time of exercise. Options to purchase shares are granted twice yearly on or about June 1 and December 1 and exercisable on or about the succeeding November 30 and May 31, respectively, of each year. As of July 31, 2019 , approximately 6 million shares of Class A common stock were available for issuance under the ESPP. Restricted Stock Units The Stock Plans provide for the issuance of restricted stock units (“RSUs”) to employees and non-employees. RSUs generally vest over four years . A summary of information related to RSU activity during the six months ended July 31, 2019 , is as follows: Number of Shares Weighted-Average Grant Date Fair Value Balance as of January 31, 2019 13,013,289 $ 108.12 RSUs granted 4,623,949 191.13 RSUs vested (3,426,770 ) 103.56 RSUs forfeited (511,962 ) 119.05 Balance as of July 31, 2019 13,698,506 136.87 As of July 31, 2019 , there was a total of $1.7 billion in unrecognized compensation cost related to unvested RSUs, which is expected to be recognized over a weighted-average period of approximately three years . Performance-Based Restricted Stock Units During fiscal 2019, 0.5 million shares of performance-based restricted stock units (“PRSUs”) were granted to all employees other than executive management that included both service conditions and performance conditions related to company-wide goals. These performance conditions were met and the PRSUs vested on March 15, 2019. During the six months ended July 31, 2019 , we recognized $15 million in compensation cost related to these PRSUs. Additionally, during the second quarter of fiscal 2020, 0.5 million shares of PRSUs were granted to all employees other than executive management that included both service conditions and performance conditions related to company-wide goals. We expect to grant additional shares related to this program for employees hired in fiscal 2020. These PRSU awards will vest if the performance conditions are achieved for the fiscal year ended January 31, 2020 and if the individual employee continues to provide service through the vesting date of March 15, 2020. During each of the three and six months ended July 31, 2019 , we recognized $19 million in compensation cost related to these PRSUs, and there is a total of $94 million in unrecognized compensation cost which is expected to be recognized over a weighted-average period of approximately seven months . Stock Options The Stock Plans provide for the issuance of incentive and nonstatutory stock options to employees and non-employees. Stock options issued under the Stock Plans generally are exercisable for periods not to exceed ten years and generally vest over five years . A summary of information related to stock option activity during the six months ended July 31, 2019 , is as follows (in millions, except share and per share data): Outstanding Stock Options Weighted-Average Exercise Price Aggregate Intrinsic Value Balance as of January 31, 2019 5,780,742 $ 7.96 $ 1,003 Stock options granted — — Stock options exercised (1,250,557 ) 5.62 Stock options canceled (18,568 ) 22.23 Balance as of July 31, 2019 4,511,617 8.55 864 Vested and expected to vest as of July 31, 2019 4,467,012 8.31 856 Exercisable as of July 31, 2019 3,947,066 5.67 767 As of July 31, 2019 , there was a total of $52 million in unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a weighted-average period of approximately two years . |
Unearned Revenue and Performanc
Unearned Revenue and Performance Obligations | 6 Months Ended |
Jul. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Unearned Revenue and Performance Obligations | Unearned Revenue and Performance Obligations $677 million and $507 million of subscription services revenue was recognized during the three months ended July 31, 2019 , and 2018, respectively, that was included in the unearned revenue balances as of April 30, 2019, and 2018, respectively. $1.2 billion and $899 million of subscription services revenue was recognized during the six months ended July 31, 2019 , and 2018, respectively, that was included in the unearned revenue balances as of January 31, 2019, and 2018, respectively. Professional services revenue recognized in the same periods from unearned revenue balances at the beginning of the respective periods was not material. Transaction Price Allocated to the Remaining Performance Obligations As of July 31, 2019 , approximately $7.03 billion of revenue is expected to be recognized from remaining performance obligations for subscription contracts. We expect to recognize revenue on approximately $4.77 billion of these remaining performance obligations over the next 24 months , with the balance recognized thereafter. Revenue from remaining performance obligations for professional services contracts as of July 31, 2019 , was not material. |
Other Income (Expense), Net
Other Income (Expense), Net | 6 Months Ended |
Jul. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Other Income (Expense), Net Other income (expense), net consisted of the following (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2019 2018 2019 2018 Interest income $ 11,239 $ 14,692 $ 21,589 $ 26,928 Interest expense (1) (14,473 ) (17,515 ) (26,074 ) (35,817 ) Other (2) 3,128 4,436 11,520 6,654 Other income (expense), net $ (106 ) $ 1,613 $ 7,035 $ (2,235 ) (1) Interest expense includes the contractual interest expense related to the 2018 Notes, 2020 Notes, and 2022 Notes and non-cash interest expense related to amortization of the debt discount and debt issuance costs, net of capitalized interest costs. For further information, see Note 10, Convertible Senior Notes, Net. (2) Other includes the net gains (losses) from our equity investments. For further information, see Note 3, Investments. |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We compute the year-to-date income tax provision by applying the estimated annual effective tax rate to the year-to-date pre-tax income or loss and adjust for discrete tax items in the period. We reported a tax benefit of $ 2 million for each of the six-month periods ended July 31, 2019 and 2018. The income tax benefits for the six months ended July 31, 2019, and 2018, were primarily attributable to the application of intra-period tax allocation rules for the gains from comprehensive income and the excess tax benefits in certain foreign jurisdictions from share-based compensation. The income tax benefits were partially offset by state taxes and income tax expenses in profitable foreign jurisdictions. We are subject to income tax audits in the U.S. and foreign jurisdictions. We record liabilities related to uncertain tax positions and believe that we have provided adequate reserves for income tax uncertainties in all open tax years. Due to our history of tax losses, all years remain open to tax audit. We periodically evaluate the realizability of our net deferred tax assets based on all available evidence, both positive and negative. The realization of net deferred tax assets is dependent on our ability to generate sufficient future taxable income during periods prior to the expiration of tax attributes to fully utilize these assets. As of July 31, 2019, we continue to maintain a full valuation allowance on our deferred tax assets except in certain jurisdictions. |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Jul. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share Basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including our outstanding stock options, outstanding warrants, common stock related to unvested RSUs and PRSUs, common stock related to convertible senior notes, and common stock issuable pursuant to the ESPP. Basic and diluted net loss per share was the same for each period presented, as the inclusion of all potential common shares outstanding would have been anti-dilutive. The net loss per share attributable to common stockholders is allocated based on the contractual participation rights of the Class A common shares and Class B common shares as if the loss for the period had been distributed. As the liquidation and dividend rights are identical, the net loss attributable to common stockholders is allocated on a proportionate basis. The following table presents the calculation of basic and diluted net loss attributable to common stockholders per share (in thousands, except per share data): Three Months Ended July 31, Six Months Ended July 31, 2019 2018 2019 2018 Class A Class B Class A Class B Class A Class B Class A Class B Net loss per share, basic and diluted: Numerator: Allocation of distributed net loss $ (86,481 ) $ (34,231 ) $ (58,776 ) $ (27,380 ) $ (169,067 ) $ (67,920 ) $ (108,888 ) $ (51,678 ) Denominator: Weighted-average common shares outstanding 162,193 64,199 147,310 68,622 160,414 64,443 145,475 69,042 Basic and diluted net loss per share $ (0.53 ) $ (0.53 ) $ (0.40 ) $ (0.40 ) $ (1.05 ) $ (1.05 ) $ (0.75 ) $ (0.75 ) The anti-dilutive securities excluded from the weighted-average shares used to calculate the diluted net loss per common share were as follows (in thousands): As of July 31, 2019 2018 Outstanding common stock options 4,512 5,832 Unvested RSUs and PRSUs 14,288 14,629 Shares related to the convertible senior notes 10,876 15,079 Shares subject to warrants related to the issuance of convertible senior notes 10,876 15,079 Shares issuable pursuant to the ESPP 394 418 40,946 51,037 |
Geographic Information
Geographic Information | 6 Months Ended |
Jul. 31, 2019 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information Disaggregation of Revenue We sell our subscription contracts and related services in two primary geographical markets: to customers located in the United States and to customers located outside of the United States. Revenue by geography is generally based on the address of the customer as specified in our master subscription agreement. The following table sets forth revenue by geographic area (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2019 2018 2019 2018 United States $ 676,568 $ 515,257 $ 1,305,097 $ 995,339 Other countries 211,184 156,463 407,710 295,024 Total $ 887,752 $ 671,720 $ 1,712,807 $ 1,290,363 No single country other than the United States had revenues greater than 10% of total revenues for the three and six months ended July 31, 2019 , and 2018 . No customer individually accounted for more than 10% of our trade and other receivables, net as of July 31, 2019 , or January 31, 2019 . Long-Lived Assets We attribute our long-lived assets, which primarily consist of property and equipment, to a country based on the physical location of the assets. The following table sets forth Property and equipment, net by geographic area (in thousands): July 31, 2019 January 31, 2019 United States $ 835,303 $ 726,801 Ireland 68,252 55,306 Other countries 15,968 14,800 Total $ 919,523 $ 796,907 |
Overview and Basis of Present_2
Overview and Basis of Presentation (Policies) | 6 Months Ended |
Jul. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The condensed consolidated financial statements include the results of Workday, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. 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. In the opinion of our management, the information contained herein reflects all adjustments necessary for a fair presentation of Workday’s results of operations, financial position, cash flows, and stockholders' equity. All such adjustments are of a normal, recurring nature. The results of operations for the quarter ended July 31, 2019 , shown in this report are not necessarily indicative of the results to be expected for the full year ending January 31, 2020 . The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended January 31, 2019 , filed with the SEC on March 18, 2019. There have been no material changes in our significant accounting policies as described in our Annual Report on Form 10-K for the year ended January 31, 2019 , other than the adoption of accounting pronouncements as described in Note 2, Accounting Standards. Certain prior period amounts reported in our condensed consolidated financial statements have been reclassified to conform to current period presentation. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires us to make certain estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. These estimates include, but are not limited to, the fair value of assets acquired and liabilities assumed through business combinations, the determination of the period of benefit for deferred commissions, certain assumptions used in the valuation of equity awards, and assumptions used in the valuation of non-marketable equity investments. Actual results could differ from those estimates and such differences could be material to our condensed consolidated financial position and results of operations. |
Segment Information | Segment Information We operate in one operating segment, cloud applications. Operating segments are defined as components of an enterprise where separate financial information is evaluated regularly by the chief operating decision maker, who is our chief executive officer, in deciding how to allocate resources and assessing performance. Our chief operating decision maker allocates resources and assesses performance based upon discrete financial information at the consolidated level. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements ASU No. 2016-02 In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) , which requires the recognition of right-of-use assets and lease liabilities on the balance sheet for those leases currently classified as operating leases under Accounting Standards Codification Topic 840 Leases . Accounting for finance leases remains substantially unchanged. We adopted this standard effective February 1, 2019, using a modified retrospective method, under which financial results reported in periods prior to February 1, 2019, were not adjusted. We elected the package of transition practical expedients, which among other things, does not require reassessment of lease classifications. Additionally, we elected to combine lease and non-lease components for each of our existing underlying asset classes and to not include leases with a term of 12 months or less on our condensed consolidated balance sheets. The most significant impact of adopting this standard was the recognition of $279 million of operating lease right-of-use assets and $307 million of operating lease liabilities on our condensed consolidated balance sheet as of February 1, 2019. Additionally, we reclassified $28 million in previously recognized deferred rent obligations and lease incentives to operating lease right-of-use assets. This adoption did not result in any cumulative-effect adjustments to Accumulated deficit, and there was no material impact on our condensed consolidated statement of operations. For further information, see Note 11, Leases. ASU No. 2017-12 In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815) , to better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. We adopted this new standard effective February 1, 2019. As a result of adopting the standard, the entire change in the fair value of our foreign currency forward contracts designated as cash flow hedges will be presented in the same income statement line item as the respective hedged items. This adoption did not result in any cumulative-effect adjustments to Accumulated deficit, and the amended presentation guidance was applied prospectively. For further information, see Note 9, Derivative Instruments. ASU No. 2018-02 In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which provides entities the option to reclassify tax effects stranded in accumulated other comprehensive income as a result of the 2017 Tax Cuts and Jobs Act to retained earnings. We adopted this new standard effective February 1, 2019. The adoption of this new standard did not have a material impact on our condensed consolidated financial statements. ASU No. 2018-07 In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting , which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from non-employees, with certain exceptions. We adopted this standard effective February 1, 2019, and remeasured all outstanding equity-classified non-employee share-based payment awards at fair value as of the adoption date, which resulted in a $0.4 million cumulative-effect adjustment to Accumulated deficit. Recently Issued Accounting Pronouncements ASU No. 2016-13 In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost, including trade receivables. ASU No. 2016-13 replaces the existing incurred loss impairment model with an expected loss model that requires the use of forward-looking information to calculate credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes may result in more timely recognition of credit losses. We plan to adopt this new standard in the first quarter of our fiscal 2021. We are evaluating the accounting, transition, and disclosure requirements of this standard. The effect on our condensed consolidated financial statements will largely depend on the composition and credit quality of our investment portfolio and trade receivables as well as the economic conditions at the time of adoption. |
Investments | We classify our debt securities as available-for-sale at the time of purchase and reevaluate such classification as of each balance sheet date. We consider all debt securities as available for use in current operations, including those with maturity dates beyond one year, and therefore classify these securities as current assets in the accompanying condensed consolidated balance sheets. Debt securities included in Marketable securities on the condensed consolidated balance sheets consist of securities with original maturities at the time of purchase greater than three months, and the remainder of the securities is included in Cash and cash equivalents. |
Fair Value Measurements | We measure our cash equivalents, marketable securities, and foreign currency derivative contracts at fair value at each reporting period using a fair value hierarchy that requires that we maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 — Other inputs that are directly or indirectly observable in the marketplace. Level 3 — Unobservable inputs that are supported by little or no market activity. |
Derivatives | We conduct business on a global basis in multiple foreign currencies, subjecting Workday to foreign currency risk. To mitigate this risk, we utilize hedging contracts as described below. We do not enter into any derivatives for trading or speculative purposes. Our foreign currency contracts are classified within Level 2 of the fair value hierarchy because the valuation inputs are based on quoted prices and market observable data of similar instruments in active markets, such as currency spot and forward rates. Foreign Currency Forward Contracts Designated as Cash Flow Hedges We are exposed to foreign currency fluctuations resulting from customer contracts denominated in foreign currencies. We have a hedging program in which we enter into foreign currency forward contracts related to certain customer contracts. We designate these forward contracts as cash flow hedging instruments since the accounting criteria for such designation have been met. Foreign currency forward contracts designated as cash flow hedges are recorded on the condensed consolidated balance sheets at fair value. Gains or losses resulting from changes in the fair value of these hedges are recorded in Accumulated other comprehensive income (loss) (“AOCI”) on the condensed consolidated balance sheets and will be subsequently reclassified to the related revenue line item on the condensed consolidated statements of operations in the same period that the underlying revenues are earned. Prior to the adoption of ASU No. 2017-12, the changes in value of these contracts resulting from changes in forward points were excluded from the assessment of hedge effectiveness and were recorded as incurred in Other income (expense), net on the condensed consolidated statements of operations. Upon adoption of ASU No. 2017-12, we elected to prospectively include changes in the value of these contracts resulting from changes in forward points in the assessment of hedge effectiveness. These changes are recorded in AOCI on the condensed consolidated balance sheets and will be subsequently reclassified to the related revenue line item on the condensed consolidated statements of operations in the same period that the underlying revenues are earned. Cash flows from such forward contracts are classified as operating activities. Foreign Currency Forward Contracts Not Designated as Hedges We also enter into foreign currency forward contracts to hedge a portion of our net outstanding monetary assets and liabilities. These forward contracts are intended to offset the foreign currency gains or losses associated with the underlying monetary assets and liabilities and are recorded on the condensed consolidated balance sheet at fair value. The forward contracts are not designated as hedging instruments under applicable accounting guidance, and therefore all changes in the fair value of the forward contracts are recorded in Other income (expense), net on the condensed consolidated statements of operations. Cash flows from such forward contracts are classified as operating activities. |
Convertible Debt | In accounting for the issuance of the Notes, we separated each of the Notes into liability and equity components. The carrying amounts of the liability components were calculated by measuring the fair value of similar liabilities that do not have associated convertible features. The carrying amount of the equity components representing the conversion option were determined by deducting the fair value of the liability components from the par value of the respective Notes. These differences represent debt discounts that are amortized to interest expense over the respective terms of the Notes using the effective interest rate method. The equity components are not remeasured as long as they continue to meet the conditions for equity classification. |
Net Loss Per Share | Basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including our outstanding stock options, outstanding warrants, common stock related to unvested RSUs and PRSUs, common stock related to convertible senior notes, and common stock issuable pursuant to the ESPP. Basic and diluted net loss per share was the same for each period presented, as the inclusion of all potential common shares outstanding would have been anti-dilutive. The net loss per share attributable to common stockholders is allocated based on the contractual participation rights of the Class A common shares and Class B common shares as if the loss for the period had been distributed. As the liquidation and dividend rights are identical, the net loss attributable to common stockholders is allocated on a proportionate basis. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Debt Securities | As of July 31, 2019 , debt securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value U.S. treasury securities $ 524,462 $ 554 $ (31 ) $ 524,985 U.S. agency obligations 240,029 229 (40 ) 240,218 Corporate bonds 438,825 1,232 (134 ) 439,923 Commercial paper 182,886 — — 182,886 $ 1,386,202 $ 2,015 $ (205 ) $ 1,388,012 Included in cash and cash equivalents $ 81,003 $ 3 $ — $ 81,006 Included in marketable securities $ 1,305,199 $ 2,012 $ (205 ) $ 1,307,006 As of January 31, 2019 , debt securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value U.S. treasury securities $ 396,347 $ 61 $ (178 ) $ 396,230 U.S. agency obligations 241,914 73 (151 ) 241,836 Corporate bonds 419,784 336 (352 ) 419,768 Commercial paper 254,175 — (2 ) 254,173 $ 1,312,220 $ 470 $ (683 ) $ 1,312,007 Included in cash and cash equivalents $ 216,270 $ — $ — $ 216,270 Included in marketable securities $ 1,095,950 $ 470 $ (683 ) $ 1,095,737 |
Equity Investments | Equity investments consisted of the following (in thousands): Condensed Consolidated Balance Sheets Location July 31, 2019 January 31, 2019 Money market funds (1) Cash and cash equivalents $ 348,109 $ 237,071 Marketable equity investments (1) Marketable securities — 44,127 Non-marketable equity investments (2) Other assets 47,060 36,925 $ 395,169 $ 318,123 (1) Investments with readily determinable fair values. (2) Investments in privately held companies without readily determinable fair values. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Information about Assets that are Measured at Fair Value on a Recurring Basis | The following table presents information about our assets and liabilities that are measured at fair value on a recurring basis and their assigned levels within the valuation hierarchy as of July 31, 2019 (in thousands): Level 1 Level 2 Level 3 Total U.S. treasury securities $ 524,985 $ — $ — $ 524,985 U.S. agency obligations — 240,218 — 240,218 Corporate bonds — 439,923 — 439,923 Commercial paper — 182,886 — 182,886 Money market funds 348,109 — — 348,109 Foreign currency derivative assets — 53,135 — 53,135 Total assets $ 873,094 $ 916,162 $ — $ 1,789,256 Foreign currency derivative liabilities $ — $ 518 $ — $ 518 Total liabilities $ — $ 518 $ — $ 518 The following table presents information about our assets and liabilities that are measured at fair value on a recurring basis and their assigned levels within the valuation hierarchy as of January 31, 2019 (in thousands): Level 1 Level 2 Level 3 Total U.S. treasury securities $ 396,230 $ — $ — $ 396,230 U.S. agency obligations — 241,836 — 241,836 Corporate bonds — 419,768 — 419,768 Commercial paper — 254,173 — 254,173 Money market funds 237,071 — — 237,071 Marketable equity investments 44,127 — — 44,127 Foreign currency derivative assets — 22,570 — 22,570 Total assets $ 677,428 $ 938,347 $ — $ 1,615,775 Foreign currency derivative liabilities $ — $ 3,135 $ — $ 3,135 Total liabilities $ — $ 3,135 $ — $ 3,135 |
Summary of Carrying Amounts and Estimated Fair Values of Financial Instruments | The following table presents the carrying amounts and estimated fair values of our financial instruments that are not recorded at fair value on the condensed consolidated balance sheets (in thousands): July 31, 2019 January 31, 2019 Net Carrying Amount Estimated Fair Value Net Carrying Amount Estimated Fair Value 1.50% Convertible senior notes $ 238,317 $ 662,362 $ 232,514 $ 557,074 0.25% Convertible senior notes 994,872 1,718,100 972,264 1,560,228 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): July 31, 2019 January 31, 2019 Land and land improvements $ 37,060 $ 22,694 Buildings 480,089 433,863 Computers, equipment, and software 645,905 539,090 Furniture and fixtures 52,235 38,840 Leasehold improvements 185,303 162,657 Property and equipment, gross (1) 1,400,592 1,197,144 Less accumulated depreciation and amortization (481,069 ) (400,237 ) Property and equipment, net $ 919,523 $ 796,907 (1) Property and equipment, gross included construction-in-progress for owned real estate projects of $2 million and $355 million that had not yet been placed in service as of July 31, 2019 , and January 31, 2019 , respectively. The decrease in construction-in-progress was due to the completion of our development center in the second quarter of fiscal 2020. |
Acquisition-related Intangibl_2
Acquisition-related Intangible Assets, Net (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Acquired Assets | Acquisition-related intangible assets, net consisted of the following (in thousands): July 31, 2019 January 31, 2019 Developed technology $ 190,400 $ 186,800 Customer relationships 189,000 189,000 Trade name 12,000 12,000 Backlog 11,000 11,000 Acquisition-related intangible assets, gross 402,400 398,800 Less accumulated amortization (124,447 ) (85,560 ) Acquisition-related intangible assets, net $ 277,953 $ 313,240 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of July 31, 2019 , our future estimated amortization expense related to acquisition-related intangible assets is as follows (in thousands): Fiscal period: Remainder of 2020 $ 31,369 2021 50,342 2022 43,733 2023 41,009 2024 29,833 Thereafter 81,667 Total $ 277,953 July 31, 2019 , the future estimated amortization expense is as follows (in thousands): Fiscal period: Remainder of 2020 $ 1,621 2021 2,926 2022 2,512 2023 2,246 2024 1,943 Thereafter 7,454 Total $ 18,702 |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consisted of the following (in thousands): July 31, 2019 January 31, 2019 Non-marketable equity and other investments $ 61,258 $ 50,546 Prepayments for computing infrastructure platforms 11,612 16,976 Technology patents and other intangible assets, net 18,702 20,335 Deposits 4,010 4,383 Net deferred tax assets 4,495 4,544 Other 38,818 50,576 Total $ 138,895 $ 147,360 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of July 31, 2019 , our future estimated amortization expense related to acquisition-related intangible assets is as follows (in thousands): Fiscal period: Remainder of 2020 $ 31,369 2021 50,342 2022 43,733 2023 41,009 2024 29,833 Thereafter 81,667 Total $ 277,953 July 31, 2019 , the future estimated amortization expense is as follows (in thousands): Fiscal period: Remainder of 2020 $ 1,621 2021 2,926 2022 2,512 2023 2,246 2024 1,943 Thereafter 7,454 Total $ 18,702 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair values of outstanding derivative instruments were as follows (in thousands): Condensed Consolidated Balance Sheets Location July 31, 2019 January 31, 2019 Derivative assets: Foreign currency forward contracts designated as cash flow hedges Prepaid expenses and other current assets $ 28,469 $ 12,076 Foreign currency forward contracts designated as cash flow hedges Other assets 21,656 10,015 Foreign currency forward contracts not designated as hedges Prepaid expenses and other current assets 2,823 459 Foreign currency forward contracts not designated as hedges Other assets 187 20 Total derivative assets $ 53,135 $ 22,570 Derivative liabilities: Foreign currency forward contracts designated as cash flow hedges Accrued expenses and other current liabilities $ 85 $ 983 Foreign currency forward contracts designated as cash flow hedges Other liabilities 80 706 Foreign currency forward contracts not designated as hedges Accrued expenses and other current liabilities 276 1,446 Foreign currency forward contracts not designated as hedges Other liabilities 77 — Total derivative liabilities $ 518 $ 3,135 |
Schedule of Cash Flow Hedges On The Condensed Consolidated Statements of Operations | The effect of foreign currency forward contracts designated as cash flow hedges on the condensed consolidated statements of operations was as follows (in thousands): Condensed Consolidated Statements of Operations Location Three Months Ended July 31, 2019 Six Months Ended July 31, 2019 Total revenues Revenues $ 887,752 $ 1,712,807 Amount of gains (losses) related to foreign currency forward contracts designated as cash flow hedges Revenues 896 912 |
Derivative Instruments, Gain (Loss) | Pre-tax gains (losses) associated with foreign currency forward contracts designated as cash flow hedges were as follows (in thousands): Condensed Consolidated Statements of Operations and Statements of Comprehensive Loss Locations Three Months Ended July 31, Six Months Ended July 31, 2019 2018 2019 2018 Gains (losses) recognized in OCI (1) Net change in market value of effective foreign currency forward exchange contracts $ 21,928 $ 17,891 $ 37,790 $ 36,165 Gains (losses) reclassified from AOCI into income Revenues 896 (1,960 ) 912 (3,077 ) Gains (losses) recognized in income (amount excluded from effectiveness testing and ineffective portion) Other income (expense), net — 4,027 — 6,258 (1) Of the total value accumulated in OCI from foreign currency forward contracts designated as cash flow hedges as of July 31, 2019 , net gains of $14 million are expected to be reclassified out of AOCI within the next 12 months. |
Derivatives Not Designated as Hedging Instruments | Gains (losses) associated with foreign currency forward contracts not designated as cash flow hedges were as follows (in thousands): Condensed Consolidated Statements of Operations Location Three Months Ended July 31, Six Months Ended July 31, Derivative Type 2019 2018 2019 2018 Foreign currency forward contracts not designated as hedges Other income (expense), net $ 2,229 $ 1,884 $ 4,627 $ 3,678 |
Offsetting Assets | As of July 31, 2019 , information related to these offsetting arrangements was as follows (in thousands): Gross Amounts of Recognized Assets Gross Amounts Offset on the Condensed Consolidated Balance Sheets Net Amounts of Assets Presented on the Condensed Consolidated Balance Sheets Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets Net Assets Exposed Financial Instruments Cash Collateral Received Derivative assets: Counterparty A $ 4,101 $ — $ 4,101 $ — $ — $ 4,101 Counterparty B 44,336 — 44,336 (102 ) — 44,234 Counterparty C 4,698 — 4,698 (416 ) — 4,282 Total $ 53,135 $ — $ 53,135 $ (518 ) $ — $ 52,617 |
Offsetting Liabilities | Gross Amounts of Recognized Liabilities Gross Amounts Offset on the Condensed Consolidated Balance Sheets Net Amounts of Liabilities Presented on the Condensed Consolidated Balance Sheets Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets Net Liabilities Exposed Financial Instruments Cash Collateral Pledged Derivative liabilities: Counterparty A $ — $ — $ — $ — $ — $ — Counterparty B 102 — 102 (102 ) — — Counterparty C 416 — 416 (416 ) — — Total $ 518 $ — $ 518 $ (518 ) $ — $ — |
Convertible Senior Notes, Net (
Convertible Senior Notes, Net (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Senior Notes | The Notes, net consisted of the following (in thousands): July 31, 2019 January 31, 2019 2020 Notes 2022 Notes 2020 Notes 2022 Notes Principal amounts: Principal $ 249,948 $ 1,150,000 $ 249,975 $ 1,150,000 Unamortized debt discount (10,987 ) (146,070 ) (16,480 ) (167,249 ) Unamortized debt issuance costs (644 ) (9,058 ) (981 ) (10,487 ) Net carrying amount $ 238,317 $ 994,872 $ 232,514 $ 972,264 Carrying amount of the equity component (1) $ 66,007 $ 219,702 $ 66,007 $ 219,702 (1) Included on the condensed consolidated balance sheets within Additional paid-in capital, net of $2 million and $4 million for the 2020 Notes and 2022 Notes, respectively, in equity issuance costs. |
Schedule of Interest Expense Recognized Related to Convertible Senior Notes | The following table sets forth total interest expense recognized related to the Notes (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2019 2018 2019 2018 2020 Notes 2022 Notes 2018 Notes 2020 Notes 2022 Notes 2020 Notes 2022 Notes 2018 Notes 2020 Notes 2022 Notes Contractual interest expense $ 938 $ 719 $ 540 $ 938 $ 719 $ 1,875 $ 1,438 $ 1,196 $ 1,875 $ 1,438 Interest cost related to amortization of debt issuance costs 168 715 289 169 715 337 1,429 641 337 1,429 Interest cost related to amortization of the debt discount 2,768 10,650 3,567 2,601 10,175 5,493 21,179 7,850 5,162 20,236 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | The components of operating lease expense were as follows (in thousands): Three Months Ended July 31, 2019 Six Months Ended July 31, 2019 Operating lease cost $ 18,961 $ 37,475 Short-term lease cost 4,205 7,845 Variable lease cost 5,138 8,564 Total operating lease cost $ 28,304 $ 53,884 |
Information Related to Right-of-Use Assets and Lease Liabilities | Information related to our operating lease right-of-use assets and operating lease liabilities was as follows (in thousands, except periods and percentages): Three Months Ended July 31, 2019 Six Months Ended July 31, 2019 Cash paid for operating lease liabilities $ 19,324 $ 35,508 Operating lease right-of-use assets obtained in exchange for new operating lease liabilities (1) 31,071 327,021 As of July 31, 2019 Weighted average remaining lease term (in years) 6 Weighted average discount rate 3.53 % (1) Includes $279 million for operating leases existing on February 1, 2019, and $48 million for operating leases that commenced in the first half of fiscal 2020. |
Maturities of Operating Lease Liabilities | As of July 31, 2019, maturities of operating lease liabilities were as follows (in thousands): Fiscal period: Remainder of 2020 $ 34,512 2021 77,259 2022 66,814 2023 53,607 2024 44,483 Thereafter 76,409 Total lease payments 353,084 Less imputed interest (43,667 ) Total $ 309,417 |
Common Stock and Stockholders_2
Common Stock and Stockholders' Equity (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Information Related to Restricted Stock Units Activity | A summary of information related to RSU activity during the six months ended July 31, 2019 , is as follows: Number of Shares Weighted-Average Grant Date Fair Value Balance as of January 31, 2019 13,013,289 $ 108.12 RSUs granted 4,623,949 191.13 RSUs vested (3,426,770 ) 103.56 RSUs forfeited (511,962 ) 119.05 Balance as of July 31, 2019 13,698,506 136.87 |
Summary of Information Related to Stock Option Activity | A summary of information related to stock option activity during the six months ended July 31, 2019 , is as follows (in millions, except share and per share data): Outstanding Stock Options Weighted-Average Exercise Price Aggregate Intrinsic Value Balance as of January 31, 2019 5,780,742 $ 7.96 $ 1,003 Stock options granted — — Stock options exercised (1,250,557 ) 5.62 Stock options canceled (18,568 ) 22.23 Balance as of July 31, 2019 4,511,617 8.55 864 Vested and expected to vest as of July 31, 2019 4,467,012 8.31 856 Exercisable as of July 31, 2019 3,947,066 5.67 767 |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Other income (expense), net consisted of the following (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2019 2018 2019 2018 Interest income $ 11,239 $ 14,692 $ 21,589 $ 26,928 Interest expense (1) (14,473 ) (17,515 ) (26,074 ) (35,817 ) Other (2) 3,128 4,436 11,520 6,654 Other income (expense), net $ (106 ) $ 1,613 $ 7,035 $ (2,235 ) (1) Interest expense includes the contractual interest expense related to the 2018 Notes, 2020 Notes, and 2022 Notes and non-cash interest expense related to amortization of the debt discount and debt issuance costs, net of capitalized interest costs. For further information, see Note 10, Convertible Senior Notes, Net. (2) Other includes the net gains (losses) from our equity investments. For further information, see Note 3, Investments. |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Earnings Per Share [Abstract] | |
Summary of Calculation of Basic and Diluted Net Loss Per Share | The following table presents the calculation of basic and diluted net loss attributable to common stockholders per share (in thousands, except per share data): Three Months Ended July 31, Six Months Ended July 31, 2019 2018 2019 2018 Class A Class B Class A Class B Class A Class B Class A Class B Net loss per share, basic and diluted: Numerator: Allocation of distributed net loss $ (86,481 ) $ (34,231 ) $ (58,776 ) $ (27,380 ) $ (169,067 ) $ (67,920 ) $ (108,888 ) $ (51,678 ) Denominator: Weighted-average common shares outstanding 162,193 64,199 147,310 68,622 160,414 64,443 145,475 69,042 Basic and diluted net loss per share $ (0.53 ) $ (0.53 ) $ (0.40 ) $ (0.40 ) $ (1.05 ) $ (1.05 ) $ (0.75 ) $ (0.75 ) |
Shares Excluded from Diluted Loss Per Share | The anti-dilutive securities excluded from the weighted-average shares used to calculate the diluted net loss per common share were as follows (in thousands): As of July 31, 2019 2018 Outstanding common stock options 4,512 5,832 Unvested RSUs and PRSUs 14,288 14,629 Shares related to the convertible senior notes 10,876 15,079 Shares subject to warrants related to the issuance of convertible senior notes 10,876 15,079 Shares issuable pursuant to the ESPP 394 418 40,946 51,037 |
Geographic Information (Tables)
Geographic Information (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of Revenues by Geographic Area | The following table sets forth revenue by geographic area (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2019 2018 2019 2018 United States $ 676,568 $ 515,257 $ 1,305,097 $ 995,339 Other countries 211,184 156,463 407,710 295,024 Total $ 887,752 $ 671,720 $ 1,712,807 $ 1,290,363 |
Long-lived Assets by Geographic Areas | The following table sets forth Property and equipment, net by geographic area (in thousands): July 31, 2019 January 31, 2019 United States $ 835,303 $ 726,801 Ireland 68,252 55,306 Other countries 15,968 14,800 Total $ 919,523 $ 796,907 |
Overview and Basis of Present_3
Overview and Basis of Presentation (Detail) | 6 Months Ended |
Jul. 31, 2019segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 1 |
Accounting Standards - Recently
Accounting Standards - Recently Adopted Accounting Pronouncements (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Apr. 30, 2019 | Feb. 01, 2019 | Jan. 31, 2019 | Apr. 30, 2018 | Jan. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Operating lease right-of-use assets | $ 294,824 | |||||
Operating lease liabilities | $ 309,417 | |||||
Accounting Standards Update 2016-02 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Operating lease right-of-use assets | $ 279,000 | |||||
Operating lease liabilities | 307,000 | |||||
Deferred rent obligation and lease incentives | 28,000 | |||||
Accumulated Deficit | Accounting Standards Update 2018-07 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect of new accounting principle in period of adoption | $ 0 | $ 400 | $ (381) | $ 0 | $ 0 |
Investments - Summary of Market
Investments - Summary of Marketable Securities (Detail) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 1,386,202 | $ 1,312,220 |
Unrealized Gains | 2,015 | 470 |
Unrealized Losses | (205) | (683) |
Aggregate Fair Value | 1,388,012 | 1,312,007 |
U.S. treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 524,462 | 396,347 |
Unrealized Gains | 554 | 61 |
Unrealized Losses | (31) | (178) |
Aggregate Fair Value | 524,985 | 396,230 |
U.S. agency obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 240,029 | 241,914 |
Unrealized Gains | 229 | 73 |
Unrealized Losses | (40) | (151) |
Aggregate Fair Value | 240,218 | 241,836 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 438,825 | 419,784 |
Unrealized Gains | 1,232 | 336 |
Unrealized Losses | (134) | (352) |
Aggregate Fair Value | 439,923 | 419,768 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 182,886 | 254,175 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | (2) |
Aggregate Fair Value | 182,886 | 254,173 |
Included in cash and cash equivalents | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 81,003 | 216,270 |
Unrealized Gains | 3 | 0 |
Unrealized Losses | 0 | 0 |
Aggregate Fair Value | 81,006 | 216,270 |
Included in marketable securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,305,199 | 1,095,950 |
Unrealized Gains | 2,012 | 470 |
Unrealized Losses | (205) | (683) |
Aggregate Fair Value | $ 1,307,006 | $ 1,095,737 |
Investments - Narrative (Detail
Investments - Narrative (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds of sale of marketable securities, debt | $ 5,000,000 | $ 915,000,000 | $ 5,000,000 | $ 942,000,000 |
Proceeds from sale of equity securities, available for sale | $ 0 | $ 0 | 51,000,000 | $ 0 |
Net realized gains (losses) recognized on equity investments sold | $ 7,000,000 |
Investments - Equity Investment
Investments - Equity Investments (Detail) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Money market funds | $ 348,109 | $ 237,071 |
Marketable equity investments | 0 | 44,127 |
Non-marketable equity investments | 47,060 | 36,925 |
Equity investments | $ 395,169 | $ 318,123 |
Fair Value Measurements - Infor
Fair Value Measurements - Information about Assets that are Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | $ 1,388,012 | $ 1,312,007 |
Marketable equity investments | 0 | 44,127 |
Foreign currency derivative assets | 53,135 | |
Foreign currency derivative liabilities | 518 | |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity investments | 44,127 | |
Foreign currency derivative assets | 53,135 | 22,570 |
Total assets | 1,789,256 | 1,615,775 |
Foreign currency derivative liabilities | 518 | 3,135 |
Total liabilities | 518 | 3,135 |
Fair Value, Measurements, Recurring | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 524,985 | 396,230 |
Fair Value, Measurements, Recurring | U.S. agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 240,218 | 241,836 |
Fair Value, Measurements, Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 439,923 | 419,768 |
Fair Value, Measurements, Recurring | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 182,886 | 254,173 |
Fair Value, Measurements, Recurring | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 348,109 | 237,071 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity investments | 44,127 | |
Foreign currency derivative assets | 0 | 0 |
Total assets | 873,094 | 677,428 |
Foreign currency derivative liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 524,985 | 396,230 |
Fair Value, Measurements, Recurring | Level 1 | U.S. agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 348,109 | 237,071 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity investments | 0 | |
Foreign currency derivative assets | 53,135 | 22,570 |
Total assets | 916,162 | 938,347 |
Foreign currency derivative liabilities | 518 | 3,135 |
Total liabilities | 518 | 3,135 |
Fair Value, Measurements, Recurring | Level 2 | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | U.S. agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 240,218 | 241,836 |
Fair Value, Measurements, Recurring | Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 439,923 | 419,768 |
Fair Value, Measurements, Recurring | Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 182,886 | 254,173 |
Fair Value, Measurements, Recurring | Level 2 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity investments | 0 | |
Foreign currency derivative assets | 0 | 0 |
Total assets | 0 | 0 |
Foreign currency derivative liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | U.S. agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | $ 0 | $ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Carrying Amounts and Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 | Sep. 30, 2017 | Jun. 30, 2013 |
1.50% Convertible senior notes | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Net Carrying Amount | $ 238,317 | $ 232,514 | ||
Estimated Fair Value | $ 662,362 | 557,074 | ||
Contractual interest rate | 1.50% | 1.50% | ||
0.25% Convertible senior notes | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Net Carrying Amount | $ 994,872 | 972,264 | ||
Estimated Fair Value | $ 1,718,100 | $ 1,560,228 | ||
Contractual interest rate | 0.25% | 0.25% |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Detail) - USD ($) | 6 Months Ended | |||
Jul. 31, 2019 | Jan. 31, 2019 | Sep. 30, 2017 | Jun. 30, 2013 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Share price (in dollars per share) | $ 199.98 | |||
1.50% Convertible senior notes | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Convertible senior notes, principal amount | $ 249,948,000 | $ 249,975,000 | $ 250,000,000 | |
Contractual interest rate | 1.50% | 1.50% | ||
If-converted value in excess of principal | $ 362,000,000 | |||
0.25% Convertible senior notes | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Convertible senior notes, principal amount | $ 1,150,000,000 | $ 1,150,000,000 | $ 1,150,000,000 | |
Contractual interest rate | 0.25% | 0.25% | ||
If-converted value in excess of principal | $ 413,000,000 |
Deferred Costs (Detail)
Deferred Costs (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | Jan. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||
Deferred sales commission | $ 268 | $ 268 | $ 264 | ||
Amortization of deferred costs | $ 22 | $ 17 | $ 43 | $ 33 |
Property and Equipment, Net - S
Property and Equipment, Net - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,400,592 | $ 1,197,144 |
Less accumulated depreciation and amortization | (481,069) | (400,237) |
Property and equipment, net | 919,523 | 796,907 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 37,060 | 22,694 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 480,089 | 433,863 |
Computers, equipment, and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 645,905 | 539,090 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 52,235 | 38,840 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 185,303 | 162,657 |
Construction in progress for owned real estate projects | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,000 | $ 355,000 |
Property and Equipment, Net (De
Property and Equipment, Net (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 47 | $ 36 | $ 88 | $ 69 |
Interest costs capitalized | $ 2 | $ 2 | $ 6 | $ 4 |
Acquisition-related Intangibl_3
Acquisition-related Intangible Assets, Net - Schedule of Acquired Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | Jan. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, gross | $ 402,400 | $ 402,400 | $ 398,800 | ||
Less accumulated amortization | (124,447) | (124,447) | (85,560) | ||
Total | 277,953 | 277,953 | 313,240 | ||
Goodwill, acquired during period | 9,000 | ||||
Amortization of intangible assets | 20,000 | $ 5,000 | 39,000 | $ 10,000 | |
Developed technology | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, gross | 190,400 | 190,400 | 186,800 | ||
Finite-lived intangible assets acquired | 4,000 | ||||
Customer relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, gross | 189,000 | 189,000 | 189,000 | ||
Trade name | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, gross | 12,000 | 12,000 | 12,000 | ||
Backlog | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, gross | $ 11,000 | $ 11,000 | $ 11,000 |
Acquisition-related Intangibl_4
Acquisition-related Intangible Assets, Net - Schedule of Future Amortization Expense (Detail) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Total | $ 277,953 | $ 313,240 |
Acquired Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remainder of 2020 | 31,369 | |
2021 | 50,342 | |
2022 | 43,733 | |
2023 | 41,009 | |
2024 | 29,833 | |
Thereafter | 81,667 | |
Total | $ 277,953 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Detail) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Other Assets [Line Items] | ||
Non-marketable equity and other investments | $ 61,258 | $ 50,546 |
Prepayments for computing infrastructure platforms | 11,612 | 16,976 |
Technology patents and other intangible assets, net | 277,953 | 313,240 |
Deposits | 4,010 | 4,383 |
Net deferred tax assets | 4,495 | 4,544 |
Other | 38,818 | 50,576 |
Total | 138,895 | 147,360 |
Technology patents and other intangible assets, net | ||
Other Assets [Line Items] | ||
Technology patents and other intangible assets, net | $ 18,702 | $ 20,335 |
Other Assets (Summary of Future
Other Assets (Summary of Future Estimated Amortization Expense Related to Acquired Land Leasehold Interest and Technology Patents) (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Total | $ 277,953 | $ 313,240 |
Technology patents and other intangible assets, net | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remainder of 2020 | 1,621 | |
2021 | 2,926 | |
2022 | 2,512 | |
2023 | 2,246 | |
2024 | 1,943 | |
Thereafter | 7,454 | |
Total | $ 18,702 | $ 20,335 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Detail) - Forward Contracts - USD ($) $ in Millions | 6 Months Ended | |
Jul. 31, 2019 | Jan. 31, 2019 | |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 127 | $ 198 |
Cash Flow Hedging | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 822 | $ 717 |
Cash Flow Hedging | Designated as Hedging Instrument | Maximum | ||
Derivative [Line Items] | ||
Derivative, remaining maturity | 49 months |
Derivative Instruments - Fair V
Derivative Instruments - Fair Values of Outstanding Derivative Instruments (Detail) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 53,135 | $ 22,570 |
Derivative Liabilities | 518 | 3,135 |
Forward Contracts | Not Designated as Hedging Instrument | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 2,823 | 459 |
Forward Contracts | Not Designated as Hedging Instrument | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 187 | 20 |
Forward Contracts | Not Designated as Hedging Instrument | Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 276 | 1,446 |
Forward Contracts | Not Designated as Hedging Instrument | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 77 | 0 |
Cash Flow Hedging | Forward Contracts | Designated as Hedging Instrument | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 28,469 | 12,076 |
Cash Flow Hedging | Forward Contracts | Designated as Hedging Instrument | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 21,656 | 10,015 |
Cash Flow Hedging | Forward Contracts | Designated as Hedging Instrument | Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 85 | 983 |
Cash Flow Hedging | Forward Contracts | Designated as Hedging Instrument | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 80 | $ 706 |
Derivative Instruments - Effect
Derivative Instruments - Effect of Cash Flow Hedges on Income Statement (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total revenues | $ 887,752 | $ 671,720 | $ 1,712,807 | $ 1,290,363 |
Designated as Hedging Instrument | Revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gains (losses) related to foreign currency forward contracts designated as cash flow hedges | $ 896 | $ 912 |
Derivative Instruments - Gains
Derivative Instruments - Gains (Losses) Associated with Foreign Currency Forward Contracts (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments, gain (loss) expected to be reclassified from accumulated OCI within the next 12 months | $ 14,000 | |||
Other income (expense), net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Foreign currency forward contracts not designated as hedges | $ 2,229 | $ 1,884 | 4,627 | $ 3,678 |
Designated as Hedging Instrument | Revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) reclassified from AOCI into income | 896 | 912 | ||
Gains (losses) reclassified from AOCI into income | (1,960) | (3,077) | ||
Designated as Hedging Instrument | Other income (expense), net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in income (amount excluded from effectiveness testing and ineffective portion) | 0 | 0 | ||
Gains (losses) recognized in income (amount excluded from effectiveness testing and ineffective portion) | 4,027 | 6,258 | ||
Designated as Hedging Instrument | Net change in market value of effective foreign currency forward exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in OCI | $ 21,928 | $ 37,790 | ||
Gains (losses) recognized in OCI | $ 17,891 | $ 36,165 |
Derivative Instruments - Offset
Derivative Instruments - Offsetting Assets (Detail) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | $ 53,135 | $ 22,570 |
Gross Amounts Offset on the Condensed Consolidated Balance Sheets | 0 | |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 53,135 | |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Financial Instruments | (518) | |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Cash Collateral Received | 0 | |
Net Assets Exposed | 52,617 | |
Counterparty A | ||
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | 4,101 | |
Gross Amounts Offset on the Condensed Consolidated Balance Sheets | 0 | |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 4,101 | |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Cash Collateral Received | 0 | |
Net Assets Exposed | 4,101 | |
Counterparty B | ||
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | 44,336 | |
Gross Amounts Offset on the Condensed Consolidated Balance Sheets | 0 | |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 44,336 | |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Financial Instruments | (102) | |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Cash Collateral Received | 0 | |
Net Assets Exposed | 44,234 | |
Counterparty C | ||
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | 4,698 | |
Gross Amounts Offset on the Condensed Consolidated Balance Sheets | 0 | |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 4,698 | |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Financial Instruments | (416) | |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Cash Collateral Received | 0 | |
Net Assets Exposed | $ 4,282 |
Derivative Instruments - Offs_2
Derivative Instruments - Offsetting Liabilities (Detail) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | $ 518 | $ 3,135 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | |
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets | 518 | |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Financial Instruments | (518) | |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Cash Collateral Pledged | 0 | |
Net Liabilities Exposed | 0 | |
Counterparty A | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 0 | |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | |
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets | 0 | |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Cash Collateral Pledged | 0 | |
Net Liabilities Exposed | 0 | |
Counterparty B | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 102 | |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | |
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets | 102 | |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Financial Instruments | (102) | |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Cash Collateral Pledged | 0 | |
Net Liabilities Exposed | 0 | |
Counterparty C | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 416 | |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | |
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets | 416 | |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Financial Instruments | (416) | |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Cash Collateral Pledged | 0 | |
Net Liabilities Exposed | $ 0 |
Convertible Senior Notes, Net_2
Convertible Senior Notes, Net (Detail) | Jul. 31, 2019USD ($)$ / sharesshares | Jul. 31, 2019USD ($)$ / sharesshares | Apr. 30, 2019trading_day | Jul. 31, 2018USD ($) | Jul. 31, 2019USD ($)trading_day$ / sharesshares | Jul. 31, 2018USD ($) | Jan. 31, 2019USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2013USD ($) |
Debt Instrument [Line Items] | |||||||||
Threshold consecutive trading days | trading_day | 30 | 30 | |||||||
Number of days out of 30 that common stock price exceeded conversion price (in days) | trading_day | 20 | 20 | |||||||
Capitalized interest costs | $ 2,000,000 | $ 2,000,000 | $ 6,000,000 | $ 4,000,000 | |||||
2018 Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Contractual interest rate | 0.75% | ||||||||
Convertible senior notes, principal amount | $ 350,000,000 | ||||||||
Repayments of debt | 350,000,000 | ||||||||
Liability issuance costs | 7,000,000 | 7,000,000 | |||||||
Equity issuance costs | 2,000,000 | ||||||||
Amortization expense for liability issuance costs | $ 0 | 289,000 | $ 0 | 641,000 | |||||
Effective interest rates of the liability components | 5.75% | 5.75% | 5.75% | ||||||
2020 Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Contractual interest rate | 1.50% | 1.50% | 1.50% | 1.50% | |||||
Convertible senior notes, principal amount | $ 249,948,000 | $ 249,948,000 | $ 249,948,000 | $ 249,975,000 | $ 250,000,000 | ||||
Threshold percentage of conversion price | 130.00% | 130.00% | |||||||
Liability issuance costs | $ 5,000,000 | 5,000,000 | $ 5,000,000 | ||||||
Equity issuance costs | 2,000,000 | ||||||||
Amortization expense for liability issuance costs | $ 168,000 | 169,000 | $ 337,000 | 337,000 | |||||
Remaining life of the Notes | 11 months | ||||||||
Effective interest rates of the liability components | 6.25% | 6.25% | 6.25% | ||||||
2022 Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Contractual interest rate | 0.25% | 0.25% | 0.25% | 0.25% | |||||
Convertible senior notes, principal amount | $ 1,150,000,000 | $ 1,150,000,000 | $ 1,150,000,000 | $ 1,150,000,000 | $ 1,150,000,000 | ||||
Liability issuance costs | $ 14,000,000 | 14,000,000 | 14,000,000 | ||||||
Equity issuance costs | 4,000,000 | ||||||||
Amortization expense for liability issuance costs | $ 715,000 | $ 715,000 | $ 1,429,000 | $ 1,429,000 | |||||
Remaining life of the Notes | 38 months | ||||||||
Effective interest rates of the liability components | 4.60% | 4.60% | 4.60% | ||||||
Purchase of convertible senior notes hedges | $ 176,000,000 | ||||||||
Proceeds from sale of warrants | 81,000,000 | ||||||||
Face value per note | |||||||||
Debt Instrument [Line Items] | |||||||||
Convertible senior notes, principal amount | $ 1,000 | $ 1,000 | $ 1,000 | ||||||
Shares related to the convertible senior notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Repurchase of notes percentage | 100.00% | ||||||||
2018 and 2020 Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Purchase of convertible senior notes hedges | $ 144,000,000 | ||||||||
Proceeds from sale of warrants | $ 93,000,000 | ||||||||
Warrants expires in October 2018 | |||||||||
Debt Instrument [Line Items] | |||||||||
Shares covered by each purchased options or warrants (in shares) | shares | 4,200,000 | 4,200,000 | 4,200,000 | ||||||
Number of trading days related to warrants (in days) | 60 days | ||||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 107.96 | $ 107.96 | $ 107.96 | ||||||
Warrants outstanding | $ 0 | $ 0 | $ 0 | ||||||
Warrants expires in October 2020 | |||||||||
Debt Instrument [Line Items] | |||||||||
Shares covered by each purchased options or warrants (in shares) | shares | 3,100,000 | 3,100,000 | 3,100,000 | ||||||
Number of trading days related to warrants (in days) | 60 days | ||||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 107.96 | $ 107.96 | $ 107.96 | ||||||
Warrants Expires In January 2023 | |||||||||
Debt Instrument [Line Items] | |||||||||
Shares covered by each purchased options or warrants (in shares) | shares | 7,800,000 | 7,800,000 | 7,800,000 | ||||||
Number of trading days related to warrants (in days) | 60 days | ||||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 213.96 | $ 213.96 | $ 213.96 | ||||||
Class A | 2018 Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Shares issued (in shares) | shares | 1,500,000 | ||||||||
Initial conversion price (in dollars per share) | $ / shares | $ 83.28 | $ 83.28 | $ 83.28 | ||||||
Indexed shares (in shares) | shares | 4,200,000 | 4,200,000 | 4,200,000 | ||||||
Class A | 2020 Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, convertible, number of shares | shares | 12.2340 | ||||||||
Initial conversion price (in dollars per share) | $ / shares | $ 81.74 | $ 81.74 | $ 81.74 | ||||||
Indexed shares (in shares) | shares | 3,100,000 | 3,100,000 | 3,100,000 | ||||||
Class A | 2022 Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, convertible, number of shares | shares | 6.7982 | ||||||||
Initial conversion price (in dollars per share) | $ / shares | $ 147.10 | $ 147.10 | $ 147.10 | ||||||
Indexed shares (in shares) | shares | 7,800,000 | 7,800,000 | 7,800,000 | ||||||
Class A | Warrants expires in October 2018 | |||||||||
Debt Instrument [Line Items] | |||||||||
Shares issued (in shares) | shares | 1,100,000 | ||||||||
Debt Conversion, Option One | Shares related to the convertible senior notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Threshold trading days (in trading days) | trading_day | 20 | ||||||||
Threshold consecutive trading days | trading_day | 30 | ||||||||
Threshold percentage of conversion price | 130.00% | ||||||||
Debt Conversion, Option Two | Shares related to the convertible senior notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Threshold trading days (in trading days) | trading_day | 5 | ||||||||
Debt Conversion, Option Two | Shares related to the convertible senior notes | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Threshold percentage of conversion price | 98.00% |
Convertible Senior Notes, Net -
Convertible Senior Notes, Net - Schedule of Senior Notes (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2018 | Jul. 31, 2019 | Jan. 31, 2019 | Sep. 30, 2017 | Jun. 30, 2013 | |
Convertible Debt [Abstract] | |||||
Convertible Debt, Current | $ 1,233,189,000 | $ 232,514,000 | |||
Convertible Debt, Noncurrent | 0 | 972,264,000 | |||
2018 Notes | |||||
Convertible Debt [Abstract] | |||||
Principal | $ 350,000,000 | ||||
Equity issuance costs | $ 2,000,000 | ||||
2020 Notes | |||||
Convertible Debt [Abstract] | |||||
Principal | 249,948,000 | 249,975,000 | $ 250,000,000 | ||
Unamortized debt discount | (10,987,000) | (16,480,000) | |||
Unamortized debt issuance costs | (644,000) | (981,000) | |||
Convertible Debt, Current | 238,317,000 | 232,514,000 | |||
Carrying amount of the equity component | 66,007,000 | 66,007,000 | |||
Equity issuance costs | 2,000,000 | ||||
2022 Notes | |||||
Convertible Debt [Abstract] | |||||
Principal | 1,150,000,000 | 1,150,000,000 | $ 1,150,000,000 | ||
Unamortized debt discount | (146,070,000) | (167,249,000) | |||
Unamortized debt issuance costs | (9,058,000) | (10,487,000) | |||
Convertible Debt, Noncurrent | 994,872,000 | 972,264,000 | |||
Carrying amount of the equity component | 219,702,000 | $ 219,702,000 | |||
Equity issuance costs | $ 4,000,000 |
Convertible Senior Notes, Net_3
Convertible Senior Notes, Net - Schedule of Interest Expense Recognized Related to Convertible Senior Notes (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
2018 Notes | ||||
Debt Instrument [Line Items] | ||||
Contractual interest expense | $ 540,000 | $ 1,196,000 | ||
Interest cost related to amortization of debt issuance costs | $ 0 | 289,000 | $ 0 | 641,000 |
Interest cost related to amortization of the debt discount | 3,567,000 | 7,850,000 | ||
2020 Notes | ||||
Debt Instrument [Line Items] | ||||
Contractual interest expense | 938,000 | 938,000 | 1,875,000 | 1,875,000 |
Interest cost related to amortization of debt issuance costs | 168,000 | 169,000 | 337,000 | 337,000 |
Interest cost related to amortization of the debt discount | 2,768,000 | 2,601,000 | 5,493,000 | 5,162,000 |
2022 Notes | ||||
Debt Instrument [Line Items] | ||||
Contractual interest expense | 719,000 | 719,000 | 1,438,000 | 1,438,000 |
Interest cost related to amortization of debt issuance costs | 715,000 | 715,000 | 1,429,000 | 1,429,000 |
Interest cost related to amortization of the debt discount | $ 10,650,000 | $ 10,175,000 | $ 21,179,000 | $ 20,236,000 |
Leases - Narrative (Detail)
Leases - Narrative (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Lessee, Lease, Description [Line Items] | ||||
Operating lease right-of-use assets | $ 294,824 | $ 294,824 | ||
Operating lease liabilities | 309,417 | 309,417 | ||
Operating lease, lease not yet commenced, payment | $ 33,000 | $ 33,000 | ||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Leases, remaining lease term, period (less than) (years) | 1 year | |||
Operating lease, lease not yet commenced, term (years) | 3 years | 3 years | ||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Leases, remaining lease term, period (less than) (years) | 10 years | |||
Operating lease, lease not yet commenced, term (years) | 6 years | 6 years | ||
Pleasanton, California | Chairman, Mr. Duffield | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease right-of-use assets | $ 53,000 | $ 53,000 | ||
Operating lease liabilities | $ 64,000 | $ 64,000 | ||
Term of agreements (in years) | 5 years | 5 years | ||
Rent expense | $ 3,000 | $ 2,000 | $ 6,000 | $ 5,000 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jul. 31, 2019 | Jul. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 18,961 | $ 37,475 |
Short-term lease cost | 4,205 | 7,845 |
Variable lease cost | 5,138 | 8,564 |
Total operating lease cost | $ 28,304 | $ 53,884 |
Leases - Information Related to
Leases - Information Related to Our Right-of-Use Assets and Lease Liabilities (Detail) - USD ($) $ in Thousands | Feb. 01, 2019 | Jul. 31, 2019 | Jul. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cash paid for operating lease liabilities | $ 19,324 | $ 35,508 | |
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities | $ 31,071 | $ 327,021 | |
Operating leases, Weighted average remaining lease term (in years) | 6 years | 6 years | |
Operating leases, Weighted average discount rate, Percent | 3.53% | 3.53% | |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities | $ 279,000 | ||
Accounting Standards Update 2016-02, Commenced Subsequent To Adoption | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities | $ 48,000 |
Leases - Maturities of Operatin
Leases - Maturities of Operating and Finance Lease Liabilities (Detail) $ in Thousands | Jul. 31, 2019USD ($) |
Operating Leases | |
Remainder of 2020 | $ 34,512 |
2021 | 77,259 |
2022 | 66,814 |
2023 | 53,607 |
2024 | 44,483 |
Thereafter | 76,409 |
Total lease payments | 353,084 |
Less imputed interest | (43,667) |
Total | $ 309,417 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Detail) - USD ($) $ in Thousands | Jul. 31, 2019 | Jun. 30, 2019 |
Loss Contingencies [Line Items] | ||
Future non-cancelable minimum payments | $ 353,084 | |
Computing Infrastructure Platforms | ||
Loss Contingencies [Line Items] | ||
Future non-cancelable minimum payments | $ 500,000 | $ 500,000 |
Common Stock and Stockholders_3
Common Stock and Stockholders' Equity - Additional Information (Detail) $ in Millions | Jul. 31, 2019USD ($)shares | Mar. 31, 2019shares | Jul. 31, 2019USD ($)vote / sharesshares |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period of vesting | 3 years | 4 years | |
Unrecognized compensation cost - other than options | $ | $ 1,700 | $ 1,700 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period of vesting | 5 years | ||
Unrecognized compensation cost recognized over weighted-average period | 2 years | ||
Period of which options become exercisable | 10 years | ||
Unrecognized compensation cost | $ | $ 52 | $ 52 | |
Class A | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock, outstanding (in shares) | 164,000,000 | 164,000,000 | |
Common stock, votes per share | vote / shares | 1 | ||
Class B | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock, outstanding (in shares) | 64,000,000 | 64,000,000 | |
Common stock, votes per share | vote / shares | 10 | ||
2012 Equity Incentive Plan | Class A | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share reserve increased (in shares) | 11,000,000 | ||
Common stock available for future grants (in shares) | 71,000,000 | 71,000,000 | |
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of fair market value of stock at which employees are granted shares | 85.00% | ||
Employee Stock Purchase Plan | Class A | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock available for future grants (in shares) | 6,000,000 | 6,000,000 |
Common Stock and Stockholders_4
Common Stock and Stockholders' Equity - Restricted Stock Units Activity (Detail) - Restricted Stock Units | 6 Months Ended |
Jul. 31, 2019$ / sharesshares | |
Restricted Stock Units | |
Beginning Balance, Number of Shares | shares | 13,013,289 |
RSUs granted, Number of Shares | shares | 4,623,949 |
RSUs vested, Number of Shares | shares | (3,426,770) |
RSUs forfeited, Number of Shares | shares | (511,962) |
Ending Balance, Number of Shares | shares | 13,698,506 |
Weighted-Average Grant Date Fair Value | |
Beginning Balance (in dollars per share) | $ / shares | $ 108.12 |
RSUs granted (in dollars per share) | $ / shares | 191.13 |
RSUs vested (in dollars per share) | $ / shares | 103.56 |
RSUs forfeited (in dollars per share) | $ / shares | 119.05 |
Ending Balance (in dollars per share) | $ / shares | $ 136.87 |
Common Stock and Stockholders_5
Common Stock and Stockholders' Equity - PRSU's (Detail) - All Other Employees - Performance Based Restricted Stock Unit PRSU - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jul. 31, 2019 | Jul. 31, 2019 | Jan. 31, 2019 | |
Vesting March 15 2019 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSUs granted (in shares) | 0.5 | ||
Compensation related cost | $ 15 | ||
Vesting March 15 2020 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSUs granted (in shares) | 0.5 | ||
Compensation related cost | $ 19 | 19 | |
Unrecognized compensation cost - other than options | $ 94 | $ 94 | |
Unrecognized compensation cost recognized over weighted-average period | 7 months |
Common Stock and Stockholders_6
Common Stock and Stockholders' Equity - Stock Options (Detail) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | |
Jul. 31, 2019 | Jan. 31, 2019 | |
Outstanding Stock Options | ||
Beginning Balance (in shares) | 5,780,742 | |
Stock options granted (in shares) | 0 | |
Stock options exercised (in shares) | (1,250,557) | |
Stock options canceled (in shares) | (18,568) | |
Ending Balance (in shares) | 4,511,617 | |
Vested (in shares) | 4,467,012 | |
Exercisable (in shares) | 3,947,066 | |
Weighted-Average Exercise Price | ||
Beginning Balance (in dollars per share) | $ 7.96 | |
Stock option granted (in dollars per share) | 0 | |
Stock options exercised (in dollars per share) | 5.62 | |
Stock options canceled (in dollars per share) | 22.23 | |
Ending Balance (in dollars per share) | 8.55 | |
Vested and expected to vest, Weighted-Average Exercise Price (in dollars per share) | 8.31 | |
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 5.67 | |
Aggregate Intrinsic Value | $ 864 | $ 1,003 |
Vested and expected to vest as of July 31, 2019 | 856 | |
Exercisable as of July 31, 2019 | $ 767 |
Unearned Revenue and Performa_2
Unearned Revenue and Performance Obligations - Additional Information (Detail) - Subscription services - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Subscription revenue recognized that was included in total unearned revenue balance at beginning of period | $ 677 | $ 507 | $ 1,200 | $ 899 |
Revenue is expected to be recognized from remaining performance obligations for subscription contracts | $ 7,030 | $ 7,030 |
Unearned Revenue and Performa_3
Unearned Revenue and Performance Obligations - Transaction Price Allocated to the Remaining Performance Obligations (Detail) - Subscription services $ in Millions | Jul. 31, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue is expected to be recognized from remaining performance obligations for subscription contracts | $ 7,030 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-08-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue is expected to be recognized from remaining performance obligations for subscription contracts | $ 4,770 |
Recognition period | 24 months |
Other Income (Expense), Net (De
Other Income (Expense), Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Other Income and Expenses [Abstract] | ||||
Interest income | $ 11,239 | $ 14,692 | $ 21,589 | $ 26,928 |
Interest expense | (14,473) | (17,515) | (26,074) | (35,817) |
Other | 3,128 | 4,436 | 11,520 | 6,654 |
Other income (expense), net | $ (106) | $ 1,613 | $ 7,035 | $ (2,235) |
Income Taxes (Detail)
Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Provision for (benefit from) income taxes | $ (1,891) | $ (1,213) | $ (1,861) | $ (1,915) |
Net Loss Per Share - Summary of
Net Loss Per Share - Summary of Calculation of Basic and Diluted Net Loss Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Denominator: | ||||
Weighted-average common shares outstanding (in shares) | 226,392 | 215,932 | 224,857 | 214,517 |
Basic and diluted net loss per share (in dollars per share) | $ (0.53) | $ (0.40) | $ (1.05) | $ (0.75) |
Class A | ||||
Numerator: | ||||
Allocation of distributed net loss | $ (86,481) | $ (58,776) | $ (169,067) | $ (108,888) |
Denominator: | ||||
Weighted-average common shares outstanding (in shares) | 162,193 | 147,310 | 160,414 | 145,475 |
Basic and diluted net loss per share (in dollars per share) | $ (0.53) | $ (0.40) | $ (1.05) | $ (0.75) |
Class B | ||||
Numerator: | ||||
Allocation of distributed net loss | $ (34,231) | $ (27,380) | $ (67,920) | $ (51,678) |
Denominator: | ||||
Weighted-average common shares outstanding (in shares) | 64,199 | 68,622 | 64,443 | 69,042 |
Basic and diluted net loss per share (in dollars per share) | $ (0.53) | $ (0.40) | $ (1.05) | $ (0.75) |
Net Loss Per Share - Summary _2
Net Loss Per Share - Summary of Diluted Net Loss Per Common Share (Detail) - shares shares in Thousands | 6 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive securities (in shares) | 40,946 | 51,037 |
Outstanding common stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive securities (in shares) | 4,512 | 5,832 |
Unvested RSUs and PRSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive securities (in shares) | 14,288 | 14,629 |
Shares related to the convertible senior notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive securities (in shares) | 10,876 | 15,079 |
Shares subject to warrants related to the issuance of convertible senior notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive securities (in shares) | 10,876 | 15,079 |
Shares issuable pursuant to the ESPP | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive securities (in shares) | 394 | 418 |
Geographic Information Summary
Geographic Information Summary of Revenues by Geographic Area (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019USD ($)market | Jul. 31, 2018USD ($) | Jul. 31, 2019USD ($)market | Jul. 31, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | ||||
Number of primary geographical markets | market | 2 | 2 | ||
Revenue | $ 887,752 | $ 671,720 | $ 1,712,807 | $ 1,290,363 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 676,568 | 515,257 | 1,305,097 | 995,339 |
Other countries | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 211,184 | $ 156,463 | $ 407,710 | $ 295,024 |
Geographic Information - Long-L
Geographic Information - Long-Lived Assets (Detail) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 919,523 | $ 796,907 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 835,303 | 726,801 |
Ireland | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 68,252 | 55,306 |
Other countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 15,968 | $ 14,800 |
Uncategorized Items - wday-7312
Label | Element | Value |
Prepaid Expenses and Other Current Assets [Member] | ||
Restricted Cash | us-gaap_RestrictedCash | $ 5,002,000 |
Restricted Cash | us-gaap_RestrictedCash | 0 |
Other Assets [Member] | ||
Restricted Cash | us-gaap_RestrictedCash | 2,075,000 |
Restricted Cash | us-gaap_RestrictedCash | $ 130,000 |