Document and Entity Information
Document and Entity Information - shares shares in Millions | 9 Months Ended | |
Oct. 31, 2023 | Nov. 22, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 31, 2023 | |
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 $0.001 | |
Trading Symbol | WDAY | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001327811 | |
Current Fiscal Year End Date | --01-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Class A | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 209 | |
Class B | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 54 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 31, 2023 | Jan. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 1,563,939 | $ 1,886,311 |
Marketable securities | 5,316,045 | 4,235,083 |
Trade and other receivables, net | 1,224,818 | 1,570,086 |
Deferred costs | 207,566 | 191,054 |
Prepaid expenses and other current assets | 261,795 | 225,690 |
Total current assets | 8,574,163 | 8,108,224 |
Property and equipment, net | 1,206,564 | 1,201,254 |
Operating lease right-of-use assets | 265,963 | 249,278 |
Deferred costs, noncurrent | 432,275 | 420,988 |
Acquisition-related intangible assets, net | 249,242 | 305,465 |
Goodwill | 2,846,464 | 2,840,044 |
Other assets | 351,262 | 360,985 |
Total assets | 13,925,933 | 13,486,238 |
Current liabilities: | ||
Accounts payable | 79,333 | 153,751 |
Accrued expenses and other current liabilities | 234,906 | 260,131 |
Accrued compensation | 420,178 | 563,548 |
Unearned revenue | 3,196,648 | 3,559,393 |
Operating lease liabilities | 98,325 | 91,343 |
Total current liabilities | 4,029,390 | 4,628,166 |
Debt, noncurrent | 2,978,800 | 2,975,934 |
Unearned revenue, noncurrent | 62,148 | 74,540 |
Operating lease liabilities, noncurrent | 198,843 | 181,799 |
Other liabilities | 31,835 | 40,231 |
Total liabilities | 7,301,016 | 7,900,670 |
Stockholders’ equity: | ||
Common stock | 264 | 259 |
Additional paid-in capital | 9,981,756 | 8,828,639 |
Treasury stock | (471,481) | (185,047) |
Accumulated other comprehensive income (loss) | 33,207 | 53,051 |
Accumulated deficit | (2,918,829) | (3,111,334) |
Total stockholders’ equity | 6,624,917 | 5,585,568 |
Total liabilities and stockholders’ equity | $ 13,925,933 | $ 13,486,238 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | ||
Revenues: | |||||
Total revenues | $ 1,865,675 | $ 1,599,103 | $ 5,336,753 | $ 4,569,558 | |
Costs and expenses: | |||||
Product development | [1] | 618,736 | 565,727 | 1,828,870 | 1,655,071 |
Sales and marketing | [1] | 537,816 | 470,196 | 1,580,639 | 1,358,198 |
General and administrative | [1] | 176,028 | 153,708 | 512,148 | 427,832 |
Total costs and expenses | 1,777,820 | 1,625,424 | 5,232,441 | 4,702,800 | |
Operating income (loss) | 87,855 | (26,321) | 104,312 | (133,242) | |
Other income (expense), net | 41,388 | 4,163 | 113,652 | (48,789) | |
Income (loss) before provision for (benefit from) income taxes | 129,243 | (22,158) | 217,964 | (182,031) | |
Provision for (benefit from) income taxes | 15,534 | 52,563 | 25,459 | 59,021 | |
Net income (loss) | $ 113,709 | $ (74,721) | $ 192,505 | $ (241,052) | |
Net income (loss) per share, basic (in dollars per share) | $ 0.43 | $ (0.29) | $ 0.74 | $ (0.95) | |
Net income (loss) per share, diluted (in dollars per share) | $ 0.43 | $ (0.29) | $ 0.73 | $ (0.95) | |
Weighted-average shares used to compute net income (loss) per share, basic (in shares) | 262,153 | 255,753 | 260,747 | 253,975 | |
Weighted-average shares used to compute net income (loss) per share, diluted (in shares) | 266,377 | 255,753 | 264,087 | 253,975 | |
Subscription services | |||||
Revenues: | |||||
Total revenues | $ 1,691,116 | $ 1,432,393 | $ 4,842,964 | $ 4,071,804 | |
Costs and expenses: | |||||
Total costs and expenses | [1] | 263,840 | 259,397 | 758,551 | 737,301 |
Professional services | |||||
Revenues: | |||||
Total revenues | 174,559 | 166,710 | 493,789 | 497,754 | |
Costs and expenses: | |||||
Total costs and expenses | [1] | $ 181,400 | $ 176,396 | $ 552,233 | $ 524,398 |
[1] (1) Costs and expenses include share-based compensation expenses as follows: Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Costs of subscription services $ 30,543 $ 25,598 $ 89,793 $ 76,918 Costs of professional services 28,738 26,577 87,532 79,999 Product development 162,025 149,279 493,934 449,764 Sales and marketing 64,805 61,186 211,560 180,233 General and administrative 63,146 51,556 187,810 146,795 Total share-based compensation expenses $ 349,257 $ 314,196 $ 1,070,629 $ 933,709 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Total share-based compensation expenses | $ 349,257 | $ 314,196 | $ 1,070,629 | $ 933,709 |
Costs of subscription services | ||||
Total share-based compensation expenses | 30,543 | 25,598 | 89,793 | 76,918 |
Costs of professional services | ||||
Total share-based compensation expenses | 28,738 | 26,577 | 87,532 | 79,999 |
Product development | ||||
Total share-based compensation expenses | 162,025 | 149,279 | 493,934 | 449,764 |
Sales and marketing | ||||
Total share-based compensation expenses | 64,805 | 61,186 | 211,560 | 180,233 |
General and administrative | ||||
Total share-based compensation expenses | $ 63,146 | $ 51,556 | $ 187,810 | $ 146,795 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 113,709 | $ (74,721) | $ 192,505 | $ (241,052) |
Other comprehensive income (loss): | ||||
Net change in foreign currency translation adjustment | (3,851) | (3,098) | (3,317) | (6,005) |
Net change in unrealized gains (losses) on available-for-sale debt securities | (4,634) | (13,232) | (16,204) | (23,513) |
Net change in unrealized gains (losses) on cash flow hedges, net of tax provision of $2,388, $0, $3,942, and $0, respectively | 48,472 | 57,483 | (323) | 125,923 |
Other comprehensive income (loss) | 39,987 | 41,153 | (19,844) | 96,405 |
Comprehensive income (loss) | $ 153,696 | $ (33,568) | $ 172,661 | $ (144,647) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Change in unrealized gain (losses) on cash flow hedges, tax provision | $ 2,388 | $ 0 | $ 3,942 | $ 0 |
Condensed Consolidated Statem_5
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: |
Balance, beginning (in shares) at Jan. 31, 2022 | 251,209 | |||||
Balance, beginning at Jan. 31, 2022 | $ 251 | $ 7,284,174 | $ (12,467) | $ 7,709 | $ (2,744,585) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock under employee equity plans, net of shares withheld for employee taxes (in shares) | 5,474 | |||||
Issuance of common stock under employee equity plans, net of shares withheld for employee taxes | $ 5 | 84,997 | ||||
Settlement of convertible senior notes (in shares) | 635 | |||||
Settlement of convertible senior notes | $ 1 | (40) | ||||
Share-based compensation | 933,709 | |||||
Exercise of convertible senior notes hedges | 97,916 | (97,915) | ||||
Common stock repurchased (in shares) | 0 | |||||
Common stock repurchases under share repurchase program | 0 | |||||
Other comprehensive income (loss) | $ 96,405 | 96,405 | ||||
Net income (loss) | (241,052) | (241,052) | ||||
Purchase of treasury stock from the exercise of convertible senior notes hedges (in shares) | (635) | |||||
Balance, ending (in shares) at Oct. 31, 2022 | 256,683 | |||||
Balance, ending at Oct. 31, 2022 | 5,409,108 | $ 257 | 8,400,756 | (110,382) | 104,114 | (2,985,637) |
Balance, beginning (in shares) at Jan. 31, 2022 | 251,209 | |||||
Balance, beginning at Jan. 31, 2022 | $ 251 | 7,284,174 | (12,467) | 7,709 | (2,744,585) | |
Balance, ending (in shares) at Jan. 31, 2023 | 257,991 | |||||
Balance, ending at Jan. 31, 2023 | 5,585,568 | $ 259 | 8,828,639 | (185,047) | 53,051 | (3,111,334) |
Balance, beginning (in shares) at Jul. 31, 2022 | 255,485 | |||||
Balance, beginning at Jul. 31, 2022 | $ 255 | 7,988,096 | (12,588) | 62,961 | (2,910,916) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock under employee equity plans, net of shares withheld for employee taxes (in shares) | 1,198 | |||||
Issuance of common stock under employee equity plans, net of shares withheld for employee taxes | $ 1 | 709 | ||||
Settlement of convertible senior notes (in shares) | 634 | |||||
Settlement of convertible senior notes | $ 1 | (39) | ||||
Share-based compensation | 314,196 | |||||
Exercise of convertible senior notes hedges | 97,794 | (97,794) | ||||
Common stock repurchased (in shares) | 0 | |||||
Common stock repurchases under share repurchase program | 0 | |||||
Other comprehensive income (loss) | 41,153 | 41,153 | ||||
Net income (loss) | (74,721) | (74,721) | ||||
Purchase of treasury stock from the exercise of convertible senior notes hedges (in shares) | (634) | |||||
Balance, ending (in shares) at Oct. 31, 2022 | 256,683 | |||||
Balance, ending at Oct. 31, 2022 | 5,409,108 | $ 257 | 8,400,756 | (110,382) | 104,114 | (2,985,637) |
Balance, beginning (in shares) at Jan. 31, 2023 | 257,991 | |||||
Balance, beginning at Jan. 31, 2023 | 5,585,568 | $ 259 | 8,828,639 | (185,047) | 53,051 | (3,111,334) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock under employee equity plans, net of shares withheld for employee taxes (in shares) | 5,865 | |||||
Issuance of common stock under employee equity plans, net of shares withheld for employee taxes | $ 5 | 82,488 | ||||
Settlement of convertible senior notes (in shares) | 0 | |||||
Settlement of convertible senior notes | $ 0 | 0 | ||||
Share-based compensation | 1,070,629 | |||||
Exercise of convertible senior notes hedges | 0 | 0 | ||||
Common stock repurchased (in shares) | (1,312) | |||||
Common stock repurchases under share repurchase program | $ (286,000) | (286,434) | ||||
Other comprehensive income (loss) | (19,844) | (19,844) | ||||
Net income (loss) | 192,505 | 192,505 | ||||
Purchase of treasury stock from the exercise of convertible senior notes hedges (in shares) | 0 | |||||
Balance, ending (in shares) at Oct. 31, 2023 | 262,544 | |||||
Balance, ending at Oct. 31, 2023 | 6,624,917 | $ 264 | 9,981,756 | (471,481) | 33,207 | (2,918,829) |
Balance, beginning (in shares) at Jul. 31, 2023 | 261,858 | |||||
Balance, beginning at Jul. 31, 2023 | $ 263 | 9,637,303 | (323,695) | (6,780) | (3,032,538) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock under employee equity plans, net of shares withheld for employee taxes (in shares) | 1,363 | |||||
Issuance of common stock under employee equity plans, net of shares withheld for employee taxes | $ 1 | (4,804) | ||||
Settlement of convertible senior notes (in shares) | 0 | |||||
Settlement of convertible senior notes | $ 0 | 0 | ||||
Share-based compensation | 349,257 | |||||
Exercise of convertible senior notes hedges | 0 | 0 | ||||
Common stock repurchased (in shares) | (677) | |||||
Common stock repurchases under share repurchase program | $ (148,000) | (147,786) | ||||
Other comprehensive income (loss) | 39,987 | 39,987 | ||||
Net income (loss) | 113,709 | 113,709 | ||||
Purchase of treasury stock from the exercise of convertible senior notes hedges (in shares) | 0 | |||||
Balance, ending (in shares) at Oct. 31, 2023 | 262,544 | |||||
Balance, ending at Oct. 31, 2023 | $ 6,624,917 | $ 264 | $ 9,981,756 | $ (471,481) | $ 33,207 | $ (2,918,829) |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Cash flows from operating activities: | ||||
Net income (loss) | $ 113,709 | $ (74,721) | $ 192,505 | $ (241,052) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 68,614 | 91,854 | 210,470 | 274,395 |
Share-based compensation expenses | 349,257 | 314,196 | 1,070,629 | 933,709 |
Amortization of deferred costs | 54,450 | 44,830 | 155,432 | 126,515 |
Non-cash lease expense | 24,454 | 23,359 | 72,611 | 68,318 |
(Gains) losses on investments | 9,488 | (3,833) | 16,764 | 20,746 |
Accretion of discounts on marketable debt securities, net | (39,379) | (13,121) | (111,180) | (15,797) |
Other | (10,037) | 16,372 | (19,696) | 31,170 |
Changes in operating assets and liabilities, net of business combinations: | ||||
Trade and other receivables, net | 37,719 | 61,885 | 327,647 | 200,008 |
Deferred costs | (79,927) | (56,552) | (183,231) | (163,023) |
Prepaid expenses and other assets | 71,644 | 2,435 | 78,279 | (31,447) |
Accounts payable | (6,525) | 18,116 | (62,352) | 20,884 |
Accrued expenses and other liabilities | (32,159) | 47,061 | (219,470) | 41,253 |
Unearned revenue | (110,533) | (63,213) | (375,053) | (302,936) |
Net cash provided by (used in) operating activities | 450,775 | 408,668 | 1,153,355 | 962,743 |
Cash flows from investing activities: | ||||
Purchases of marketable securities | (1,272,864) | (2,310,915) | (4,746,086) | (5,651,005) |
Maturities of marketable securities | 1,124,276 | 2,181,147 | 3,595,718 | 3,767,509 |
Sales of marketable securities | 45,690 | 19,988 | 93,368 | 53,355 |
Owned real estate projects | (1,424) | (181) | (3,112) | (446) |
Capital expenditures, excluding owned real estate projects | (58,524) | (58,665) | (181,053) | (286,013) |
Business combinations, net of cash acquired | (8,517) | 0 | (8,517) | 0 |
Purchase of other intangible assets | (700) | (700) | (10,200) | (700) |
Purchases of non-marketable equity and other investments | 0 | (3,250) | (10,500) | (20,173) |
Sales and maturities of non-marketable equity and other investments | 54 | 4,513 | 54 | 11,674 |
Net cash provided by (used in) investing activities | (172,009) | (168,063) | (1,270,328) | (2,125,799) |
Cash flows from financing activities: | ||||
Proceeds from issuance of debt, net of debt discount | 0 | 0 | 0 | 2,978,077 |
Repayments and extinguishment of debt | 0 | (1,149,622) | 0 | (1,843,605) |
Payments for debt issuance costs | 0 | 0 | 0 | (7,220) |
Repurchases of common stock | (144,686) | 0 | (283,333) | 0 |
Proceeds from issuance of common stock from employee equity plans, net of taxes paid for shares withheld | (4,803) | 710 | 82,493 | 85,002 |
Other | (69) | (161) | (474) | (538) |
Net cash provided by (used in) financing activities | (149,558) | (1,149,073) | (201,314) | 1,211,716 |
Effect of exchange rate changes | (787) | (920) | (698) | (1,750) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 128,421 | (909,388) | (318,985) | 46,910 |
Cash, cash equivalents, and restricted cash at the beginning of period | 1,447,834 | 2,497,043 | 1,895,240 | 1,540,745 |
Cash, cash equivalents, and restricted cash at the end of period | 1,576,255 | 1,587,655 | 1,576,255 | 1,587,655 |
Supplemental cash flow data: | ||||
Cash paid for interest | 55,125 | 56,567 | 110,254 | 59,508 |
Cash paid for income taxes, net of refunds | 3,214 | 2,093 | 35,007 | 9,863 |
Non-cash investing and financing activities: | ||||
Purchases of property and equipment, accrued but not paid | 18,094 | 68,028 | 18,094 | 68,028 |
Reconciliation of cash, cash equivalents, and restricted cash as shown in the Condensed Consolidated Statements of Cash Flows: | ||||
Cash and cash equivalents | 1,563,939 | 1,575,955 | 1,563,939 | 1,575,955 |
Restricted cash included in Prepaid expenses and other current assets | 12,316 | 11,700 | 12,316 | 11,700 |
Total cash, cash equivalents, and restricted cash | $ 1,576,255 | $ 1,587,655 | $ 1,576,255 | $ 1,587,655 |
Overview and Basis of Presentat
Overview and Basis of Presentation | 9 Months Ended |
Oct. 31, 2023 | |
Accounting Policies [Abstract] | |
Overview and Basis of Presentation | Overview and Basis of Presentation Company and Background Workday delivers applications for financial management, spend management, human capital management, planning, and analytics. With Workday, our customers have a unified system that can help them plan, execute, analyze, and extend to other applications and environments, thereby helping them continuously adapt how they manage their business and operations. We were originally incorporated in March 2005 in Nevada, and in June 2012, we reincorporated in Delaware. 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 financial position, results of operations, stockholders’ equity, and cash flows. All such adjustments are of a normal, recurring nature. The results of operations for the three and nine months ended October 31, 2023, shown in this report are not necessarily indicative of the results to be expected for the full fiscal year ending January 31, 2024. 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, 2023, filed with the SEC on February 27, 2023. Certain prior period amounts reported in our unaudited condensed consolidated financial statements and notes thereto 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, judgements, 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. Significant estimates, judgements, and assumptions include, but are not limited to, the identification of distinct performance obligations for revenue recognition, the determination of the period of benefit for deferred commissions, the fair value and useful lives of assets acquired and liabilities assumed through business combinations, and the valuation of non-marketable equity investments. Actual results could differ from those estimates, judgements, and assumptions, and such differences could be material to our condensed consolidated financial statements. In February 2023, we completed an assessment of the useful lives of our data center equipment, including servers, network equipment, and integrated complete server and network racks. Due to advances in technology, as well as investments in software that increased efficiencies in how we operate our data center equipment, we determined we should increase the estimated useful lives of data center equipment from 3 years to 5 years. This change in accounting estimate was effective beginning fiscal 2024. Based on the carrying amount of data center equipment that was in-service as of January 31, 2023, this change decreased depreciation expense by $22 million and $77 million for the three and nine months ended October 31, 2023, respectively. 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 a chief operating decision maker (“CODM”) in deciding how to allocate resources and assessing performance. For the nine months ended October 31, 2023, our co-chief executive officers together served as CODM for purposes of segment reporting. Our CODM allocates resources and assesses performance based upon discrete financial information at the consolidated level. |
Significant Accounting Policies and Accounting Standards | Significant Accounting Policies and Accounting Standards Significant Accounting PoliciesThere have been no material changes in our significant accounting policies as described in our Annual Report on Form 10-K for the fiscal year ended January 31, 2023 Concentrations of Risk and Significant Customers Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, debt securities, and trade and other receivables. Our deposits exceed federally insured limits. No customer individually accounted for more than 10% of trade and other receivables, net as of October 31, 2023, or January 31, 2023. No customer individually accounted for more than 10% of total revenues during the three and nine months ended October 31, 2023, or 2022. Other than the United States, no country individually accounted for more than 10% of total revenues during the three and nine months ended October 31, 2023, or 2022. In order to reduce the risk of disruption of our cloud applications, we have established data centers in various geographic regions. We serve our customers and users from data center facilities operated by third parties, located in the United States, Canada, and Europe. We have internal procedures to restore services in the event of disaster at one of our data center facilities. Even with these procedures for disaster recovery in place, our cloud applications could be significantly interrupted during the implementation of the procedures to restore services. In addition, we rely upon third-party hosted infrastructure partners globally, including Amazon Web Services (“AWS”), Google LLC, and Microsoft Corporation, to serve customers and operate certain aspects of our services. Given this, any disruption of or interference at our hosted infrastructure partners may impact our operations and our business could be adversely impacted. Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which requires disclosure of incremental segment information on an annual and interim basis. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and requires retrospective application to all prior periods presented in the financial statements. We are currently evaluating the impacts of the new standard. |
Significant Accounting Policies
Significant Accounting Policies and Accounting Standards | 9 Months Ended |
Oct. 31, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Accounting Standards | Significant Accounting Policies and Accounting Standards Significant Accounting PoliciesThere have been no material changes in our significant accounting policies as described in our Annual Report on Form 10-K for the fiscal year ended January 31, 2023 Concentrations of Risk and Significant Customers Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, debt securities, and trade and other receivables. Our deposits exceed federally insured limits. No customer individually accounted for more than 10% of trade and other receivables, net as of October 31, 2023, or January 31, 2023. No customer individually accounted for more than 10% of total revenues during the three and nine months ended October 31, 2023, or 2022. Other than the United States, no country individually accounted for more than 10% of total revenues during the three and nine months ended October 31, 2023, or 2022. In order to reduce the risk of disruption of our cloud applications, we have established data centers in various geographic regions. We serve our customers and users from data center facilities operated by third parties, located in the United States, Canada, and Europe. We have internal procedures to restore services in the event of disaster at one of our data center facilities. Even with these procedures for disaster recovery in place, our cloud applications could be significantly interrupted during the implementation of the procedures to restore services. In addition, we rely upon third-party hosted infrastructure partners globally, including Amazon Web Services (“AWS”), Google LLC, and Microsoft Corporation, to serve customers and operate certain aspects of our services. Given this, any disruption of or interference at our hosted infrastructure partners may impact our operations and our business could be adversely impacted. Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which requires disclosure of incremental segment information on an annual and interim basis. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and requires retrospective application to all prior periods presented in the financial statements. We are currently evaluating the impacts of the new standard. |
Investments
Investments | 9 Months Ended |
Oct. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Debt Securities As of October 31, 2023, debt securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value U.S. treasury securities $ 2,307,535 $ 51 $ (9,121) $ 2,298,465 U.S. agency obligations 787,767 254 (2,376) 785,645 Corporate bonds 1,771,472 355 (21,031) 1,750,796 Commercial paper 1,111,886 — (1) 1,111,885 Total debt securities $ 5,978,660 $ 660 $ (32,529) $ 5,946,791 Included in Cash and cash equivalents $ 659,919 $ — $ — $ 659,919 Included in Marketable securities $ 5,318,741 $ 660 $ (32,529) $ 5,286,872 As of January 31, 2023, debt securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value U.S. treasury securities $ 2,455,739 $ 77 $ (6,765) $ 2,449,051 U.S. agency obligations 325,664 — (3,874) 321,790 Corporate bonds 966,801 1,617 (6,715) 961,703 Commercial paper 1,016,641 — (5) 1,016,636 Total debt securities $ 4,764,845 $ 1,694 $ (17,359) $ 4,749,180 Included in Cash and cash equivalents $ 594,864 $ — $ (1) $ 594,863 Included in Marketable securities $ 4,169,980 $ 1,694 $ (17,357) $ 4,154,317 The contractual maturities of debt securities were as follows (in thousands): October 31, 2023 Due within 1 year $ 3,885,682 Due in 1 year through 5 years 2,061,109 Total debt securities $ 5,946,791 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 funds available for use in current operations, including those with maturity dates beyond one year, and therefore classify these securities as current assets on the 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 remaining securities are included in Cash and cash equivalents. As of October 31, 2023, and January 31, 2023, the fair values of debt securities in an unrealized loss position were $4.3 billion and $3.1 billion, respectively, the majority of which had been in a continuous unrealized loss position for less than 12 months. We did not recognize any credit or non-credit related losses related to our debt securities during the periods presented. We sold $24 million and $20 million of debt securities during the three months ended October 31, 2023, and 2022, respectively. We sold $42 million and $48 million of debt securities during the nine months ended October 31, 2023, and 2022, 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 October 31, 2023 January 31, 2023 Money market funds Cash and cash equivalents $ 675,910 $ 902,226 Non-marketable equity investments measured using the measurement alternative Other assets 250,311 261,922 Marketable equity investments Marketable securities 29,173 80,766 Total equity investments $ 955,394 $ 1,244,914 Total realized and unrealized gains and losses associated with our equity investments consisted of the following (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Net realized gains (losses) recognized on equity investments sold (1) $ (807) $ 4,514 $ 1,984 $ (365) Net unrealized gains (losses) recognized on equity investments held as of the end of the period (13,562) (155) (23,529) (19,121) Total net gains (losses) recognized in Other income (expense), net $ (14,369) $ 4,359 $ (21,545) $ (19,486) (1) Reflects the difference between the sale proceeds and the carrying value of the equity investments at the beginning of the period. Non-Marketable Equity Investments Measured Using the Measurement Alternative Non-marketable equity investments measured using the measurement alternative include investments in privately held companies without readily determinable fair values in which we do not own a controlling interest or exercise significant influence. These investments are recorded at cost and are adjusted for observable transactions for same or similar securities of the same issuer or impairment events. The carrying values for our non-marketable equity investments are summarized below (in thousands): October 31, 2023 January 31, 2023 Total initial cost $ 207,485 $ 206,833 Cumulative net unrealized gains (losses) 42,826 55,089 Carrying value $ 250,311 $ 261,922 During the three months ended October 31, 2023, we recorded impairment losses of $9 million to the carrying value of non-marketable equity investments. During the three months ended October 31, 2022, we recorded upward adjustments to the carrying value of non-marketable equity investments of $2 million, impairment losses of $2 million, and a gain of $4 million upon exiting a non-marketable equity investment. During the nine months ended October 31, 2023, we recorded impairment losses of $22 million to the carrying value of non-marketable equity investments. During the nine months ended October 31, 2022, we recorded upward adjustments to the carrying value of non-marketable equity investments of $8 million, impairment losses of $10 million, and a net loss of $2 million upon exiting a non-marketable equity investment. Marketable Equity Investments We hold marketable equity investments with readily determinable fair values over which we do not own a controlling interest or exercise significant influence. The carrying values for our marketable equity investments are summarized below (in thousands): October 31, 2023 January 31, 2023 Total initial cost $ 14,817 $ 38,449 Cumulative net unrealized gains (losses) 14,356 42,317 Carrying value $ 29,173 $ 80,766 During the three months ended October 31, 2023, we sold marketable equity investments for proceeds of $22 million. We did not sell any marketable equity investments during the three months ended October 31, 2022. During the nine months ended October 31, 2023, and 2022, we sold marketable equity investments for proceeds of $52 million and $5 million, respectively. The realized gains and losses from the sales were immaterial. For the marketable equity investments held as of the end of each period, we recorded unrealized net losses of $4 million during the three months ended October 31, 2023, no material unrealized net gains or losses during the three months ended October 31, 2022, and unrealized net losses of $2 million and $17 million during the nine months ended October 31, 2023, and 2022, respectively. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We use 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 October 31, 2023 (in thousands): Level 1 Level 2 Level 3 Total U.S. treasury securities $ 2,298,465 $ — $ — $ 2,298,465 U.S. agency obligations — 785,645 — 785,645 Corporate bonds — 1,750,796 — 1,750,796 Commercial paper — 1,111,885 — 1,111,885 Money market funds 675,910 — — 675,910 Marketable equity investments 29,173 — — 29,173 Foreign currency derivative assets — 90,536 — 90,536 Total assets $ 3,003,548 $ 3,738,862 $ — $ 6,742,410 Foreign currency derivative liabilities $ — $ 20,268 $ — $ 20,268 Total liabilities $ — $ 20,268 $ — $ 20,268 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, 2023 (in thousands): Level 1 Level 2 Level 3 Total U.S. treasury securities $ 2,449,051 $ — $ — $ 2,449,051 U.S. agency obligations — 321,790 — 321,790 Corporate bonds — 961,703 — 961,703 Commercial paper — 1,016,636 — 1,016,636 Money market funds 902,226 — — 902,226 Marketable equity investments 80,766 — — 80,766 Foreign currency derivative assets — 64,824 — 64,824 Total assets $ 3,432,043 $ 2,364,953 $ — $ 5,796,996 Foreign currency derivative liabilities $ — $ 33,972 $ — $ 33,972 Total liabilities $ — $ 33,972 $ — $ 33,972 Non-Marketable Equity Investments Measured at Fair Value on a Non-Recurring Basis Non-marketable equity investments that have been remeasured due to an observable event or impairment are classified within Level 3 in the fair value hierarchy because we estimate the value based on valuation methods which may include a combination of the observable transaction price at the transaction date and other unobservable inputs including volatility, rights, and obligations of the investments we hold. For further information, see Note 3, Investments . Fair Value Measurements of Other Financial Instruments We carry our debt at face value less unamortized debt discount and issuance costs on our Condensed Consolidated Balance Sheets and present the fair value for disclosure purposes only. All of our debt obligations are categorized as Level 2 financial instruments. For further information on the fair values of our debt and the inputs used in the calculations, see Note 10, Debt . |
Deferred Costs
Deferred Costs | 9 Months Ended |
Oct. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Costs | Deferred CostsDeferred costs, which consist of deferred sales commissions, were $640 million and $612 million as of October 31, 2023, and January 31, 2023, respectively. Amortization expense for the deferred costs was $54 million and $45 million for the three months ended October 31, 2023, and 2022, respectively, and $155 million and $127 million for the nine months ended October 31, 2023, and 2022, respectively. There was no impairment loss in relation to the costs capitalized for the periods presented.Unearned Revenue and Performance Obligations Unearned Revenue Unearned revenue primarily consists of amounts we have the right to invoice in advance of performance under a customer contract. Total unearned revenue was $3.3 billion and $3.6 billion as of October 31, 2023, and January 31, 2023, respectively. Included in this balance are amounts related to professional services that are subject to cancellation and pro-rated refund rights of $70 million and $68 million as of October 31, 2023, and January 31, 2023, respectively. Subscription services revenues of $1.4 billion and $1.2 billion were recognized during the three months ended October 31, 2023, and 2022, respectively, that were included in the unearned revenue balances as of July 31, 2023, and 2022, respectively. Subscription services revenues of $3.0 billion and $2.7 billion were recognized during the nine months ended October 31, 2023, and 2022, respectively, that were included in the unearned revenue balances as of January 31, 2023, and 2022, respectively. Professional services revenues recognized in the same periods from unearned revenue balances at the beginning of the respective periods were not material. Transaction Price Allocated to the Remaining Performance Obligations As of October 31, 2023, approximately $18.4 billion of revenues are expected to be recognized from remaining performance obligations for subscription contracts. We expect to recognize revenues on approximately $6.0 billion and $10.6 billion of these remaining performance obligations over the next 12 and 24 months, respectively, with the balance recognized thereafter. Revenues from remaining performance obligations for professional services contracts as of October 31, 2023, were not material. |
Property and Equipment, Net
Property and Equipment, Net | 9 Months Ended |
Oct. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): October 31, 2023 January 31, 2023 Computers, equipment, and software $ 1,348,381 $ 1,286,540 Buildings 723,164 719,966 Leasehold improvements 216,138 202,101 Furniture, fixtures, and transportation equipment 92,938 90,816 Land and land improvements 81,067 81,083 Property and equipment, gross 2,461,688 2,380,506 Less accumulated depreciation and amortization (1,255,124) (1,179,252) Property and equipment, net $ 1,206,564 $ 1,201,254 Depre ciati on expense totaled $52 million and $69 million for the three months ended October 31, 2023, and 2022, respectively, and $149 million and $207 million for the nine months ended October 31, 2023, and 2022, respectively. |
Acquisition-Related Intangible
Acquisition-Related Intangible Assets, Net | 9 Months Ended |
Oct. 31, 2023 | |
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): October 31, 2023 January 31, 2023 Developed technology $ 326,800 $ 342,700 Customer relationships 311,100 311,100 Backlog 15,000 15,000 Trade name 12,500 12,500 Acquisition-related intangible assets, gross 665,400 681,300 Less accumulated amortization (416,158) (375,835) Acquisition-related intangible assets, net $ 249,242 $ 305,465 Amortization expense related to acquisition-related intangible assets was $16 million and $21 million for the three months ended October 31, 2023, and 2022, respectively, and $58 million and $64 million for the nine months ended October 31, 2023, and 2022, respectively. As of October 31, 2023, our future estimated amortization expense related to acquisition-related intangible assets was as follows (in thousands): Fiscal Period: Remainder of 2024 $ 16,088 2025 62,198 2026 56,283 2027 31,712 2028 27,346 Thereafter 55,615 Total $ 249,242 |
Other Noncurrent Assets
Other Noncurrent Assets | 9 Months Ended |
Oct. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Noncurrent Assets | Other Noncurrent Assets Other noncurrent assets consisted of the following (in thousands): October 31, 2023 January 31, 2023 Non-marketable equity and other investments $ 250,311 $ 263,485 Derivative assets 37,725 21,757 Technology patents and other intangible assets, net 27,175 20,534 Prepayments for goods and services 16,463 23,466 Net deferred tax assets 7,105 12,650 Deposits 6,038 5,819 Other 6,445 13,274 Total other assets $ 351,262 $ 360,985 Technology patents and other intangible assets with estimable useful lives are amortized on a straight-line basis. As of October 31, 2023, the future estimated amortization expense was as follows (in thousands): Fiscal Period: Remainder of 2024 $ 1,059 2025 3,715 2026 3,366 2027 3,018 2028 2,774 Thereafter 13,243 Total $ 27,175 |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Oct. 31, 2023 | |
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 exchange risk. To mitigate this risk, we utilize derivative 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. Cash Flow Hedges We enter into foreign currency forward contracts to hedge a portion of our forecasted revenue and expense transactions (“cash flow hedges”). We designate these forward contracts as cash flow hedging instruments since the accounting criteria for such designation has been met. Cash flow hedges are recorded on the Condensed Consolidated Balance Sheets at fair value. Cash flows from the settlement of these forward contracts are classified as operating activities on the Condensed Consolidated Statements of Cash Flows. 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 are subsequently reclassified to the same line item as the hedged transaction on the Condensed Consolidated Statements of Operations in the same period that the hedged transaction affects earnings. As of October 31, 2023, we estimate that $33 million of net gains recorded in AOCI related to our cash flow hedges will be reclassified into income within the next 12 months. As of October 31, 2023, and January 31, 2023, the notional values of the cash flow hedges that we held to buy U.S. dollars in exchange for other currencies were $2.2 billion and $1.7 billion, respectively. The notional values of the cash flow hedges that we held to sell U.S. dollars in exchange for other currencies were $369 million and $324 million as of October 31, 2023, and January 31, 2023, respectively. All contracts had maturities of less than 48 months. Non-Designated Hedges We also enter into foreign currency forward contracts to hedge a portion of our net outstanding monetary assets and liabilities (“non-designated hedges”). These forward contracts are intended to offset foreign currency gains or losses associated with the underlying monetary assets and liabilities and are recorded on the Condensed Consolidated Balance Sheets at fair value. These forward contracts are not designated as hedging instruments under applicable accounting guidance, and therefore all changes in the fair value of these forward contracts are recorded in Other income (expense), net on the Condensed Consolidated Statements of Operations. Cash flows from the settlement of these forward contracts are classified as operating activities on the Condensed Consolidated Statements of Cash Flows. As of October 31, 2023, and January 31, 2023, the notional values of the non-designated hedges that we held to buy U.S. dollars in exchange for other currencies were $125 million and $235 million, respectively, and the notional values of the non-designated hedges that we held to sell U.S. dollars in exchange for other currencies were $1 million and $2 million, respectively. The fair values of outstanding derivative instruments were as follows (in thousands): Condensed Consolidated Balance Sheets Location October 31, 2023 January 31, 2023 Derivative assets: Cash flow hedges Prepaid expenses and other current assets $ 52,123 $ 42,968 Cash flow hedges Other assets 37,725 21,757 Non-designated hedges Prepaid expenses and other current assets 688 99 Total derivative assets $ 90,536 $ 64,824 Derivative liabilities: Cash flow hedges Accrued expenses and other current liabilities $ 16,644 $ 13,231 Cash flow hedges Other liabilities 3,425 15,496 Non-designated hedges Accrued expenses and other current liabilities 199 5,244 Non-designated hedges Other liabilities — 1 Total derivative liabilities $ 20,268 $ 33,972 The effect of cash flow hedges on the Condensed Consolidated Statements of Operations was as follows (in thousands): Three Months Ended October 31, Condensed Consolidated Statements of Operations Location 2023 2022 Total Gains (losses) related to cash flow hedges Total Gains (losses) related to cash flow hedges Revenues $ 1,865,675 $ 15,625 $ 1,599,103 $ 5,647 Costs and expenses 1,777,820 839 1,625,424 (11,852) Provision for (benefit from) income taxes 15,534 — 52,563 (3,220) Nine Months Ended October 31, Condensed Consolidated Statements of Operations Location 2023 2022 Total Gains (losses) related to cash flow hedges Total Gains (losses) related to cash flow hedges Revenues $ 5,336,753 $ 49,217 $ 4,569,558 $ 5,985 Costs and expenses 5,232,441 1,781 4,702,800 (18,636) Provision for (benefit from) income taxes 25,459 — 59,021 (3,220) Pre-tax gains (losses) associated with cash flow hedges were as follows (in thousands): Condensed Consolidated Statements of Operations and Statements of Comprehensive Income (Loss) Locations Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Gains (losses) recognized in OCI Net change in unrealized gains (losses) on cash flow hedges $ 67,324 $ 48,058 $ 54,617 $ 110,052 Gains (losses) reclassified from AOCI into income (effective portion) Revenues 15,625 5,647 49,217 5,985 Gains (losses) reclassified from AOCI into income (effective portion) Costs and expenses 839 (11,852) 1,781 (18,636) Gains (losses) reclassified from AOCI into income (effective portion) Provision for (benefit from) income taxes — (3,220) — (3,220) Gains (losses) associated with non-designated hedges were as follows (in thousands): Condensed Consolidated Statements of Operations Location Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Gains (losses) related to non-designated hedges Other income (expense), net $ 6,425 $ 7,187 $ 7,857 $ 13,288 We are subject to netting agreements with all of the 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 October 31, 2023, 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 $ 25,461 $ — $ 25,461 $ (1,856) $ — $ 23,605 Counterparty B 20,486 — 20,486 (9,009) — 11,477 Counterparty C 2,015 — 2,015 (228) — 1,787 Counterparty D 37,367 — 37,367 (8,323) — 29,044 Counterparty E 5,207 — 5,207 (852) — 4,355 Total $ 90,536 $ — $ 90,536 $ (20,268) $ — $ 70,268 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 $ 1,856 $ — $ 1,856 $ (1,856) $ — $ — Counterparty B 9,009 — 9,009 (9,009) — — Counterparty C 228 — 228 (228) — — Counterparty D 8,323 — 8,323 (8,323) — — Counterparty E 852 — 852 (852) — — Total $ 20,268 $ — $ 20,268 $ (20,268) $ — $ — |
Debt
Debt | 9 Months Ended |
Oct. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Outstanding debt consisted of the following (in thousands): October 31, 2023 January 31, 2023 2027 Notes $ 1,000,000 $ 1,000,000 2029 Notes 750,000 750,000 2032 Notes 1,250,000 1,250,000 Total principal amount 3,000,000 3,000,000 Less: unamortized debt discount and issuance costs (21,200) (24,066) Net carrying amount 2,978,800 2,975,934 Debt, noncurrent $ 2,978,800 $ 2,975,934 As of October 31, 2023, the future principal payments for the outstanding debt were as follows (in thousands): Fiscal Period: Remainder of 2024 $ — 2025 — 2026 — 2027 — 2028 1,000,000 Thereafter 2,000,000 Total principal amount $ 3,000,000 Senior Notes In April 2022, we issued $3.0 billion aggregate principal amount of senior notes, consisting of $1.0 billion aggregate principal amount of 3.500% notes due April 1, 2027 (“2027 Notes”), $750 million aggregate principal amount of 3.700% notes due April 1, 2029 (“2029 Notes”), and $1.25 billion aggregate principal amount of 3.800% notes due April 1, 2032 (“2032 Notes,” and together with the 2027 Notes and the 2029 Notes, “Senior Notes”). Interest is payable semi-annually in arrears on April 1 and October 1 of each year, which commenced in October 2022. The Senior Notes are unsecured obligations and rank equally with all existing and future unsecured and unsubordinated indebtedness of Workday. We may redeem the Senior Notes in whole or in part at any time or from time to time, at specified redemption dates and prices. In addition, upon the occurrence of certain change of control triggering events, we may be required to repurchase the Senior Notes under specified terms. The indenture governing the Senior Notes also includes covenants (including certain limited covenants restricting our ability to incur certain liens and enter into certain sale and leaseback transactions), events of default, and other customary provisions. As of October 31, 2023, we were in compliance with all covenants associated with the Senior Notes. We incurred debt discount and issuance costs of approximately $27 million in connection with the Senior Notes offering, which were allocated on a pro rata basis to the 2027 Notes, 2029 Notes, and 2032 Notes. The debt discount and issuance costs are amortized on a straight-line basis, which approximates the effective interest rate method, to interest expense over the contractual term of each arrangement. The effective interest rates on the 2027 Notes, 2029 Notes, and 2032 Notes, which are calculated as the contractual interest rates adjusted for the debt discount and issuance costs, are 3.67%, 3.82%, and 3.90%, respectively. As of October 31, 2023, the total estimated fair value of the Senior Notes was $2.6 billion. The estimated fair values of the Senior Notes, which we have classified as Level 2 financial instruments, were determined based on quoted bid prices in an over-the-counter market on the last trading day of the reporting period. Credit Agreement In April 2022, we entered into a credit agreement (“2022 Credit Agreement”) which provides for a revolving credit facility in an aggregate principal amount of $1.0 billion. The 2022 Credit Agreement replaced our prior credit agreement entered into in April 2020 (“2020 Credit Agreement”), which provided for a term loan facility in an aggregate original principal amount of $750 million and a revolving credit facility in an aggregate principal amount of $750 million. Concurrently with entering into the 2022 Credit Agreement, we paid off the remaining principal balance of $694 million on the term loan under the 2020 Credit Agreement and terminated the revolving credit facility under the 2020 Credit Agreement, which had no outstanding balance. The modification to our revolving credit facility and extinguishment of the term loan under the 2020 Credit Agreement did not have a material impact to our Condensed Consolidated Statements of Operations for fiscal 2023. As of October 31, 2023, we had no outstanding revolving loans under the 2022 Credit Agreement. The revolving loans under the 2022 Credit Agreement may be borrowed, repaid, and reborrowed until April 6, 2027, at which time all amounts borrowed must be repaid. The revolving loans under the 2022 Credit Agreement will bear interest, at our option, at a base rate plus a margin of 0.000% to 0.500% or a secured overnight financing rate (“SOFR”) plus 10 basis points, plus a margin of 0.750% to 1.500%, with such margin being determined based on our consolidated leverage ratio or debt rating. We are also obligated to pay an ongoing commitment fee on undrawn amounts. The 2022 Credit Agreement contains customary representations, warranties, and affirmative and negative covenants, including a financial covenant, events of default, and indemnification provisions in favor of the lenders. The negative covenants include restrictions on the incurrence of liens and indebtedness, certain merger transactions, and other matters, all subject to certain exceptions. The financial covenant, based on a quarterly financial test, requires that we do not exceed a maximum leverage ratio of 3.50:1.00, subject to a step-up to 4.50:1.00 at our election for a certain period following an acquisition. As of October 31, 2023, we were in compliance with all covenants included in the 2022 Credit Agreement. Convertible Senior Notes In September 2017, we issued 0.25% convertible senior notes due October 1, 2022, with a principal amount of $1.15 billion (“2022 Notes”). The 2022 Notes were unsecured, unsubordinated obligations, and interest was payable in cash in arrears at a fixed rate of 0.25% on April 1 and October 1 of each year. During the third quarter of fiscal 2023, the 2022 Notes were converted by note holders, and we repaid the $1.15 billion principal balance in cash. We also distributed approximately 0.6 million shares of our Class A common stock to note holders during fiscal 2023, which represented the conversion value in excess of the principal amount. Notes Hedges In connection with the issuance of the 2022 Notes, we entered into convertible note hedge transactions (“Purchased Options”) which gave 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. During the third quarter of fiscal 2023, we received approximately 0.6 million shares of our Class A common stock from the exercise of the Purchased Options, which offset the economic dilution to our Class A common stock upon conversion of the 2022 Notes. These shares were recorded as Treasury stock on the Condensed Consolidated Balance Sheets. The Purchased Options were separate transactions and were not part of the terms of the 2022 Notes, and expired on October 1, 2022. Warrants In connection with the issuance of the 2022 Notes, we also entered into warrant transactions to sell warrants (“Warrants”) to acquire, subject to anti-dilution adjustments, up to approximately 7.8 million shares of our Class A common stock over 60 scheduled trading days beginning in January 2023 at an exercise price of $213.96 per share. During the first quarter of fiscal 2024, the Warrants fully expired without exercise. Interest Expense on Debt The following table sets forth total interest expense recognized related to our debt (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Contractual interest expense $ 27,562 $ 28,036 $ 82,688 $ 67,702 Interest cost related to amortization and write-off of debt discount and issuance costs 955 1,557 2,866 6,000 Total interest expense $ 28,517 $ 29,593 $ 85,554 $ 73,702 |
Leases
Leases | 9 Months Ended |
Oct. 31, 2023 | |
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 were $266 million and $249 million as of October 31, 2023, and January 31, 2023, respectively, and operating lease liabilities were $297 million and $273 million as of October 31, 2023, and January 31, 2023, respectively. We have also entered into finance lease agreements for other property and equipment. As of October 31, 2023, and January 31, 2023, finance leases were not material. The components of operating lease expense were as follows (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Operating lease cost $ 26,925 $ 25,404 $ 82,005 $ 73,821 Short-term lease cost 737 854 2,379 3,001 Variable lease cost 11,871 12,787 33,869 32,970 Total operating lease cost $ 39,533 $ 39,045 $ 118,253 $ 109,792 Supplemental cash flow information related to our operating leases was as follows (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Cash paid for operating lease liabilities $ 25,197 $ 23,190 $ 79,006 $ 68,386 Operating lease right-of-use assets obtained in exchange for new operating lease liabilities 30,073 6,611 93,828 93,091 Other information related to our operating leases was as follows: October 31, 2023 January 31, 2023 Weighted average remaining lease term (in years) 5 5 Weighted average discount rate 3.55 % 2.79 % As of October 31, 2023, maturities of operating lease liabilities were as follows (in thousands): Fiscal Period: Remainder of 2024 $ 28,398 2025 100,927 2026 69,886 2027 50,292 2028 36,115 Thereafter 46,296 Total lease payments 331,914 Less imputed interest (34,746) Total operating lease liabilities $ 297,168 As of October 31, 2023 , we have additional operating leases for data centers and office space that had not yet commenced with total undiscounted lease payments of $71 million. These operating leases will commence between fiscal 2024 and fiscal 2026, with lease terms ranging from approximately three |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Obligations Our purchase obligations are primarily related to agreements for third-party hosted infrastructure platforms, data center equipment and software, business technology software and support, and sales and marketing activities. During the nine months ended October 31, 2023, there were no material changes outside the ordinary course of business to our non-cancelable purchase obligations disclosed in our Annual Report on Form 10-K for the fiscal year ended January 31, 2023. 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 October 31, 2023, 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. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Oct. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common Stock As of October 31, 2023, there were 209 million shares of Class A common stock, net of treasury stock, and 54 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. Share Repurchase Program In November 2022, our Board of Directors authorized the repurchase of up to $500 million of our outstanding shares of Class A common stock (the “Share Repurchase Program”). We may repurchase shares of Class A common stock from time to time through open market purchases, in privately negotiated transactions, or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Exchange Act, in accordance with applicable securities laws and other restrictions. The timing and total amount of stock repurchases will depend upon business, economic, and market conditions, corporate and regulatory requirements, prevailing stock prices, and other considerations. The Share Repurchase Program has a term of 18 months, may be suspended or discontinued at any time, and does not obligate us to acquire any amount of Class A common stock. During the three and nine months ended October 31, 2023, we repurchased approximately 0.7 million and 1 million shares of Class A common stock for approximately $148 million and $286 million, at an average price per share of $218.35 and $218.34, respectively. All repurchases were made in open market transactions. As of October 31, 2023, we were authorized to purchase a remaining $139 million of our outstanding shares of Class A common stock under the Share Repurchase Program. Employee Equity Plans In June 2022, our stockholders approved the 2022 Equity Incentive Plan (“2022 Plan”), with a reserve of 30 million shares for issuance. The 2022 Plan serves as the successor to our 2012 Equity Incentive Plan (“2012 Plan” and, together with the 2022 Plan, “Stock Plans”). Awards that are granted on or after the effective date of the 2022 Plan will be granted pursuant to and subject to the terms and provisions of the 2022 Plan. Prior awards granted under the 2012 Plan continue to be subject to the terms and provisions of the 2012 Plan. As of October 31, 2023, we had 21 million shares of Class A common stock available for future grants. In June 2022, our stockholders approved the Amended and Restated 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 are exercisable on or about the succeeding November 30 and May 31, respectively. As of October 31, 2023, 4 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. RSU activity during the nine months ended October 31, 2023, was as follows (in thousands, except per share data): Number of Shares Weighted-Average Grant Date Fair Value Balance as of January 31, 2023 14,099 $ 206.38 RSUs granted 8,472 193.86 RSUs vested (5,179) 202.76 RSUs forfeited (1,269) 203.10 Balance as of October 31, 2023 16,123 201.22 As of October 31, 2023, there was a total of $2.5 billion in unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested RSUs, which is expected to be recognized over a weighted-average period of approximately three years. Market-Based Restricted Stock Units In December 2022, 0.3 million shares of market-based RSUs were granted to our newly appointed Co-CEO that vest based on appreciation of the price of our Class A common stock over a multi-year period and upon continued service (“PVU Award”). We estimated the fair value of the PVU Award on the grant date using the Monte Carlo simulation model with the following assumptions: (i) expected volatility of 40%, (ii) risk-free interest rate of 4%, and (iii) total performance period of six years. The weighted-average grant date fair value of the PVU Award was $124.80 per share. We recognize expense for the PVU Award over the requisite service period of five years using the accelerated attribution method. Provided that the requisite service is rendered, the total fair value of the PVU Award at the date of grant is recognized as compensation expense even if the market condition is not achieved. However, the number of shares that ultimately vest can vary significantly with the achievement of the specified market criteria. As of October 31, 2023, there was a total of $23 million in unrecognized compensation cost related to the PVU Award, which is expected to be recognized over approximately four years. 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. Stock option activity during the nine months ended October 31, 2023, was as follows (in thousands, except aggregate intrinsic value, which is reflected in millions, and per share data): Outstanding Stock Options Weighted-Average Exercise Price Aggregate Intrinsic Value Balance as of January 31, 2023 115 $ 30.36 $ 17 Stock options exercised (17) 35.03 Stock options canceled — — Balance as of October 31, 2023 98 29.58 18 Vested and expected to vest as of October 31, 2023 98 29.58 18 Exercisable as of October 31, 2023 98 29.58 18 As of October 31, 2023, all stock options were fully vested with no remaining unrecognized compensation cost. |
Unearned Revenue and Performanc
Unearned Revenue and Performance Obligations | 9 Months Ended |
Oct. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Unearned Revenue and Performance Obligations | Deferred CostsDeferred costs, which consist of deferred sales commissions, were $640 million and $612 million as of October 31, 2023, and January 31, 2023, respectively. Amortization expense for the deferred costs was $54 million and $45 million for the three months ended October 31, 2023, and 2022, respectively, and $155 million and $127 million for the nine months ended October 31, 2023, and 2022, respectively. There was no impairment loss in relation to the costs capitalized for the periods presented.Unearned Revenue and Performance Obligations Unearned Revenue Unearned revenue primarily consists of amounts we have the right to invoice in advance of performance under a customer contract. Total unearned revenue was $3.3 billion and $3.6 billion as of October 31, 2023, and January 31, 2023, respectively. Included in this balance are amounts related to professional services that are subject to cancellation and pro-rated refund rights of $70 million and $68 million as of October 31, 2023, and January 31, 2023, respectively. Subscription services revenues of $1.4 billion and $1.2 billion were recognized during the three months ended October 31, 2023, and 2022, respectively, that were included in the unearned revenue balances as of July 31, 2023, and 2022, respectively. Subscription services revenues of $3.0 billion and $2.7 billion were recognized during the nine months ended October 31, 2023, and 2022, respectively, that were included in the unearned revenue balances as of January 31, 2023, and 2022, respectively. Professional services revenues recognized in the same periods from unearned revenue balances at the beginning of the respective periods were not material. Transaction Price Allocated to the Remaining Performance Obligations As of October 31, 2023, approximately $18.4 billion of revenues are expected to be recognized from remaining performance obligations for subscription contracts. We expect to recognize revenues on approximately $6.0 billion and $10.6 billion of these remaining performance obligations over the next 12 and 24 months, respectively, with the balance recognized thereafter. Revenues from remaining performance obligations for professional services contracts as of October 31, 2023, were not material. |
Other Income (Expense), Net
Other Income (Expense), Net | 9 Months Ended |
Oct. 31, 2023 | |
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 October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Interest income $ 80,004 $ 31,252 $ 214,268 $ 50,473 Interest expense (1) (28,535) (29,626) (85,617) (73,804) Other (2) (10,081) 2,537 (14,999) (25,458) Total other income (expense), net $ 41,388 $ 4,163 $ 113,652 $ (48,789) (1) Interest expense primarily includes the contractual interest expense of our debt obligations, and the related non-cash interest expense attributable to amortization of the debt discount and issuance costs. For further information, see Note 10, Debt . (2) Other primarily includes the net gains (losses) from our equity investments. For further information, see Note 3, Investments . |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We reported an income tax provision of $25 million and $59 million for the nine months ended October 31, 2023, and 2022, respectively. The income tax provision for the nine months ended October 31, 2023, was primarily attributable to income tax expenses in profitable foreign jurisdictions and an increase in U.S. taxes due to capitalized research and development expenditures. The income tax provision for the nine months ended October 31, 2022, was primarily attributable to a taxable gain recognized from integrating intellectual property, income tax expenses in profitable foreign jurisdictions, and an increase in state taxes due to capitalized research and development expenditures. 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 deferred tax assets based on all available evidence, both positive and negative. The realization of the net deferred tax assets is dependent on our ability to generate sufficient future taxable income during the periods prior to the expiration of tax attributes to fully utilize these assets. Given our current and anticipated future earnings, we may release a significant portion of our valuation allowance if there is sufficient positive evidence that outweighs the negative evidence. The release of the valuation allowance would result in the recognition of certain deferred tax assets and a corresponding decrease to income tax expense for the period the release is recorded. However, the exact timing and amount of the valuation allowance to be released is uncertain. As of October 31, 2023, we continue to maintain a full valuation allowance on our deferred tax assets in certain jurisdictions. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 9 Months Ended |
Oct. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period, net of treasury stock. Diluted net income (loss) per share is computed by giving effect to all potentially dilutive shares of common stock, including our convertible senior notes, outstanding warrants related to the issuance of the convertible senior notes, and outstanding share-based awards consisting primarily of unvested RSUs and ESPP obligations. We determine the dilutive effect of outstanding share-based awards and warrants using the treasury stock method, and the dilutive effect of shares underlying our convertible senior notes using the if-converted method. The net income (loss) per share is allocated based on the contractual participation rights of the Class A common shares and Class B common shares as if the income (loss) for the period had been distributed. As the liquidation and dividend rights are identical, the net income (loss) is allocated on a proportionate basis. Basic and diluted net loss per share was the same for the three and nine months ended October 31, 2022, as the inclusion of potentially outstanding weighted-average shares of common stock would have been anti-dilutive due to the incurrence of net loss during these periods. The following table presents the calculation of basic and diluted net income (loss) per share (in thousands, except per share data): Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Class A Class B Class A Class B Class A Class B Class A Class B Net income (loss) per share, basic: Numerator: Net income (loss) $ 90,101 $ 23,608 $ (58,648) $ (16,073) $ 152,222 $ 40,283 $ (188,757) $ (52,295) Denominator: Weighted-average shares outstanding, basic 207,726 54,427 200,740 55,013 206,184 54,563 198,876 55,099 Net income (loss) per share, basic $ 0.43 $ 0.43 $ (0.29) $ (0.29) $ 0.74 $ 0.74 $ (0.95) $ (0.95) Net income (loss) per share, diluted: Numerator: Net income (loss) $ 90,101 $ 23,608 $ (58,648) $ (16,073) $ 152,222 $ 40,283 $ (188,757) $ (52,295) Reallocation of net income as a result of conversion of Class B to Class A common stock 23,608 — — — 40,283 — — — Reallocation of net income to Class B common stock — (374) — — — (509) — — Net income (loss) for diluted calculation 113,709 23,234 (58,648) (16,073) 192,505 39,774 (188,757) (52,295) Denominator: Weighted-average shares outstanding, basic 207,726 54,427 200,740 55,013 206,184 54,563 198,876 55,099 Conversion of Class B to Class A common stock 54,427 — — — 54,563 — — — Dilutive effect of share-based awards 4,224 — — — 3,340 — — — Weighted-average shares outstanding, diluted 266,377 54,427 200,740 55,013 264,087 54,563 198,876 55,099 Net income (loss) per share, diluted $ 0.43 $ 0.43 $ (0.29) $ (0.29) $ 0.73 $ 0.73 $ (0.95) $ (0.95) The computation of diluted net income (loss) per share does not include the effect of the following potentially outstanding weighted-average shares of common stock. The effects of these potentially outstanding shares were not included in the calculation of diluted net income (loss) per share because the effect would have been anti-dilutive (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Shares related to outstanding share-based awards 1,882 16,105 2,774 15,453 Shares related to the convertible senior notes — 5,182 — 6,928 Shares subject to warrants related to the issuance of convertible senior notes — 7,818 — 7,818 Total 1,882 29,105 2,774 30,199 |
Geographic Information
Geographic Information | 9 Months Ended |
Oct. 31, 2023 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information Revenues 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. Revenues by geography are generally based on the address of the customer as specified in our customer subscription agreement. The following table sets forth revenues by geographic area (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 United States $ 1,404,124 $ 1,204,842 $ 4,012,660 $ 3,432,249 Other countries 461,551 394,261 1,324,093 1,137,309 Total revenues $ 1,865,675 $ 1,599,103 $ 5,336,753 $ 4,569,558 Long-Lived Assets Our long-lived assets, which primarily consist of property and equipment and operating lease right-of-use assets, are attributed to a country based on the physical location of the assets. Aggregate Property and equipment, net and Operating lease right-of-use assets by geographic area was as follows (in thousands): October 31, 2023 January 31, 2023 United States $ 1,175,275 $ 1,206,486 Ireland 205,470 159,337 Other countries 91,782 84,709 Total long-lived assets $ 1,472,527 $ 1,450,532 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Pay vs Performance Disclosure | ||||
Net income (loss) | $ 113,709 | $ (74,721) | $ 192,505 | $ (241,052) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 9 Months Ended |
Oct. 31, 2023 shares | Oct. 31, 2023 shares | |
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | During the three months ended October 31, 2023, the following directors and/or officers of Workday adopted or terminated a “Rule 10b5-1 trading arrangement,” as defined in item 408(a) of Regulation S-K intending to satisfy the affirmative defense of Rule 10b5-1(c): Name and Title Action Total Shares of Class A Common Stock to be Sold Adoption Date Expiration Date Doug Robinson, Co-President Adopt 12,484 October 2, 2023 November 29, 2024 Sayan Chakraborty, Co-President Adopt 53,580 (1) October 4, 2023 December 31, 2024 George Still, Jr., Director Adopt 37,500 October 5, 2023 June 30, 2025 (1) Includes shares to be withheld or sold by Workday in mandatory transactions to cover withholding taxes in connection with the settlement of equity awards. | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Doug Robinson [Member] | ||
Trading Arrangements, by Individual | ||
Name | Doug Robinson | |
Title | Co-President | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | October 2, 2023 | |
Arrangement Duration | 424 days | |
Aggregate Available | 12,484 | 12,484 |
Sayan Chakraborty [Member] | ||
Trading Arrangements, by Individual | ||
Name | Sayan Chakraborty | |
Title | Co-President | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | October 4, 2023 | |
Arrangement Duration | 454 days | |
Aggregate Available | 53,580 | 53,580 |
George Still, Jr. [Member] | ||
Trading Arrangements, by Individual | ||
Name | George Still, Jr. | |
Title | Director | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | October 5, 2023 | |
Arrangement Duration | 634 days | |
Aggregate Available | 37,500 | 37,500 |
Overview and Basis of Present_2
Overview and Basis of Presentation (Policies) | 9 Months Ended |
Oct. 31, 2023 | |
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 financial position, results of operations, stockholders’ equity, and cash flows. All such adjustments are of a normal, recurring nature. The results of operations for the three and nine months ended October 31, 2023, shown in this report are not necessarily indicative of the results to be expected for the full fiscal year ending January 31, 2024. 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, 2023, filed with the SEC on February 27, 2023. Certain prior period amounts reported in our unaudited condensed consolidated financial statements and notes thereto 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, judgements, 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. Significant estimates, judgements, and assumptions include, but are not limited to, the identification of distinct performance obligations for revenue recognition, the determination of the period of benefit for deferred commissions, the fair value and useful lives of assets acquired and liabilities assumed through business combinations, and the valuation of non-marketable equity investments. Actual results could differ from those estimates, judgements, and assumptions, and such differences could be material to our condensed consolidated financial statements. In February 2023, we completed an assessment of the useful lives of our data center equipment, including servers, network equipment, and integrated complete server and network racks. Due to advances in technology, as well as investments in software that increased efficiencies in how we operate our data center equipment, we determined we should increase the estimated useful lives of data center equipment from 3 years to 5 years. This change in accounting estimate was effective beginning fiscal 2024. Based on the carrying amount of data center equipment that was in-service as of January 31, 2023, this change decreased depreciation expense by $22 million and $77 million for the three and nine months ended October 31, 2023, respectively. |
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 a chief operating decision maker (“CODM”) in deciding how to allocate resources and assessing performance. For the nine months ended October 31, 2023, our co-chief executive officers together served as CODM for purposes of segment reporting. Our CODM allocates resources and assesses performance based upon discrete financial information at the consolidated level. |
Concentrations of Risk and Significant Customers | Concentrations of Risk and Significant Customers Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, debt securities, and trade and other receivables. Our deposits exceed federally insured limits. In order to reduce the risk of disruption of our cloud applications, we have established data centers in various geographic regions. We serve our customers and users from data center facilities operated by third parties, located in the United States, Canada, and Europe. We have internal procedures to restore services in the event of disaster at one of our data center facilities. Even with these procedures for disaster recovery in place, our cloud applications could be significantly interrupted during the implementation of the procedures to restore services. In addition, we rely upon third-party hosted infrastructure partners globally, including Amazon Web Services (“AWS”), Google LLC, and Microsoft Corporation, to serve customers and operate certain aspects of our services. Given this, any disruption of or interference at our hosted infrastructure partners may impact our operations and our business could be adversely impacted. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which requires disclosure of incremental segment information on an annual and interim basis. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and requires retrospective application to all prior periods presented in the financial statements. We are currently evaluating the impacts of the new standard. |
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 funds available for use in current operations, including those with maturity dates beyond one year, and therefore classify these securities as current assets on the 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 remaining securities are included in Cash and cash equivalents. |
Fair Value Measurements | We use 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. |
Derivative Instruments | We conduct business on a global basis in multiple foreign currencies, subjecting Workday to foreign currency exchange risk. To mitigate this risk, we utilize derivative 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. Cash Flow Hedges We enter into foreign currency forward contracts to hedge a portion of our forecasted revenue and expense transactions (“cash flow hedges”). We designate these forward contracts as cash flow hedging instruments since the accounting criteria for such designation has been met. |
Net Income (Loss) Per Share | Basic net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period, net of treasury stock. Diluted net income (loss) per share is computed by giving effect to all potentially dilutive shares of common stock, including our convertible senior notes, outstanding warrants related to the issuance of the convertible senior notes, and outstanding share-based awards consisting primarily of unvested RSUs and ESPP obligations. We determine the dilutive effect of outstanding share-based awards and warrants using the treasury stock method, and the dilutive effect of shares underlying our convertible senior notes using the if-converted method. The net income (loss) per share is allocated based on the contractual participation rights of the Class A common shares and Class B common shares as if the income (loss) for the period had been distributed. As the liquidation and dividend rights are identical, the net income (loss) is allocated on a proportionate basis. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Oct. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Debt Securities | As of October 31, 2023, debt securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value U.S. treasury securities $ 2,307,535 $ 51 $ (9,121) $ 2,298,465 U.S. agency obligations 787,767 254 (2,376) 785,645 Corporate bonds 1,771,472 355 (21,031) 1,750,796 Commercial paper 1,111,886 — (1) 1,111,885 Total debt securities $ 5,978,660 $ 660 $ (32,529) $ 5,946,791 Included in Cash and cash equivalents $ 659,919 $ — $ — $ 659,919 Included in Marketable securities $ 5,318,741 $ 660 $ (32,529) $ 5,286,872 As of January 31, 2023, debt securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value U.S. treasury securities $ 2,455,739 $ 77 $ (6,765) $ 2,449,051 U.S. agency obligations 325,664 — (3,874) 321,790 Corporate bonds 966,801 1,617 (6,715) 961,703 Commercial paper 1,016,641 — (5) 1,016,636 Total debt securities $ 4,764,845 $ 1,694 $ (17,359) $ 4,749,180 Included in Cash and cash equivalents $ 594,864 $ — $ (1) $ 594,863 Included in Marketable securities $ 4,169,980 $ 1,694 $ (17,357) $ 4,154,317 |
Contractual Maturity of Debt Securities | The contractual maturities of debt securities were as follows (in thousands): October 31, 2023 Due within 1 year $ 3,885,682 Due in 1 year through 5 years 2,061,109 Total debt securities $ 5,946,791 |
Equity Investments | Equity investments consisted of the following (in thousands): Condensed Consolidated Balance Sheets Location October 31, 2023 January 31, 2023 Money market funds Cash and cash equivalents $ 675,910 $ 902,226 Non-marketable equity investments measured using the measurement alternative Other assets 250,311 261,922 Marketable equity investments Marketable securities 29,173 80,766 Total equity investments $ 955,394 $ 1,244,914 |
Realized and Unrealized Gains and Losses With Equity Investments | Total realized and unrealized gains and losses associated with our equity investments consisted of the following (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Net realized gains (losses) recognized on equity investments sold (1) $ (807) $ 4,514 $ 1,984 $ (365) Net unrealized gains (losses) recognized on equity investments held as of the end of the period (13,562) (155) (23,529) (19,121) Total net gains (losses) recognized in Other income (expense), net $ (14,369) $ 4,359 $ (21,545) $ (19,486) (1) Reflects the difference between the sale proceeds and the carrying value of the equity investments at the beginning of the period. |
Carrying Values Of Non-marketable Equity Investments | The carrying values for our non-marketable equity investments are summarized below (in thousands): October 31, 2023 January 31, 2023 Total initial cost $ 207,485 $ 206,833 Cumulative net unrealized gains (losses) 42,826 55,089 Carrying value $ 250,311 $ 261,922 |
Carrying Values Of Marketable Equity Investments | The carrying values for our marketable equity investments are summarized below (in thousands): October 31, 2023 January 31, 2023 Total initial cost $ 14,817 $ 38,449 Cumulative net unrealized gains (losses) 14,356 42,317 Carrying value $ 29,173 $ 80,766 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Information about Assets 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 October 31, 2023 (in thousands): Level 1 Level 2 Level 3 Total U.S. treasury securities $ 2,298,465 $ — $ — $ 2,298,465 U.S. agency obligations — 785,645 — 785,645 Corporate bonds — 1,750,796 — 1,750,796 Commercial paper — 1,111,885 — 1,111,885 Money market funds 675,910 — — 675,910 Marketable equity investments 29,173 — — 29,173 Foreign currency derivative assets — 90,536 — 90,536 Total assets $ 3,003,548 $ 3,738,862 $ — $ 6,742,410 Foreign currency derivative liabilities $ — $ 20,268 $ — $ 20,268 Total liabilities $ — $ 20,268 $ — $ 20,268 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, 2023 (in thousands): Level 1 Level 2 Level 3 Total U.S. treasury securities $ 2,449,051 $ — $ — $ 2,449,051 U.S. agency obligations — 321,790 — 321,790 Corporate bonds — 961,703 — 961,703 Commercial paper — 1,016,636 — 1,016,636 Money market funds 902,226 — — 902,226 Marketable equity investments 80,766 — — 80,766 Foreign currency derivative assets — 64,824 — 64,824 Total assets $ 3,432,043 $ 2,364,953 $ — $ 5,796,996 Foreign currency derivative liabilities $ — $ 33,972 $ — $ 33,972 Total liabilities $ — $ 33,972 $ — $ 33,972 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 9 Months Ended |
Oct. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): October 31, 2023 January 31, 2023 Computers, equipment, and software $ 1,348,381 $ 1,286,540 Buildings 723,164 719,966 Leasehold improvements 216,138 202,101 Furniture, fixtures, and transportation equipment 92,938 90,816 Land and land improvements 81,067 81,083 Property and equipment, gross 2,461,688 2,380,506 Less accumulated depreciation and amortization (1,255,124) (1,179,252) Property and equipment, net $ 1,206,564 $ 1,201,254 |
Acquisition-Related Intangibl_2
Acquisition-Related Intangible Assets, Net (Tables) | 9 Months Ended |
Oct. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Acquired Assets | Acquisition-related intangible assets, net consisted of the following (in thousands): October 31, 2023 January 31, 2023 Developed technology $ 326,800 $ 342,700 Customer relationships 311,100 311,100 Backlog 15,000 15,000 Trade name 12,500 12,500 Acquisition-related intangible assets, gross 665,400 681,300 Less accumulated amortization (416,158) (375,835) Acquisition-related intangible assets, net $ 249,242 $ 305,465 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of October 31, 2023, our future estimated amortization expense related to acquisition-related intangible assets was as follows (in thousands): Fiscal Period: Remainder of 2024 $ 16,088 2025 62,198 2026 56,283 2027 31,712 2028 27,346 Thereafter 55,615 Total $ 249,242 Fiscal Period: Remainder of 2024 $ 1,059 2025 3,715 2026 3,366 2027 3,018 2028 2,774 Thereafter 13,243 Total $ 27,175 |
Other Noncurrent Assets (Tables
Other Noncurrent Assets (Tables) | 9 Months Ended |
Oct. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Noncurrent Assets | Other noncurrent assets consisted of the following (in thousands): October 31, 2023 January 31, 2023 Non-marketable equity and other investments $ 250,311 $ 263,485 Derivative assets 37,725 21,757 Technology patents and other intangible assets, net 27,175 20,534 Prepayments for goods and services 16,463 23,466 Net deferred tax assets 7,105 12,650 Deposits 6,038 5,819 Other 6,445 13,274 Total other assets $ 351,262 $ 360,985 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of October 31, 2023, our future estimated amortization expense related to acquisition-related intangible assets was as follows (in thousands): Fiscal Period: Remainder of 2024 $ 16,088 2025 62,198 2026 56,283 2027 31,712 2028 27,346 Thereafter 55,615 Total $ 249,242 Fiscal Period: Remainder of 2024 $ 1,059 2025 3,715 2026 3,366 2027 3,018 2028 2,774 Thereafter 13,243 Total $ 27,175 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Oct. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Values of Outstanding Derivative Instruments | The fair values of outstanding derivative instruments were as follows (in thousands): Condensed Consolidated Balance Sheets Location October 31, 2023 January 31, 2023 Derivative assets: Cash flow hedges Prepaid expenses and other current assets $ 52,123 $ 42,968 Cash flow hedges Other assets 37,725 21,757 Non-designated hedges Prepaid expenses and other current assets 688 99 Total derivative assets $ 90,536 $ 64,824 Derivative liabilities: Cash flow hedges Accrued expenses and other current liabilities $ 16,644 $ 13,231 Cash flow hedges Other liabilities 3,425 15,496 Non-designated hedges Accrued expenses and other current liabilities 199 5,244 Non-designated hedges Other liabilities — 1 Total derivative liabilities $ 20,268 $ 33,972 |
Derivative Instruments Gain (Loss) | The effect of cash flow hedges on the Condensed Consolidated Statements of Operations was as follows (in thousands): Three Months Ended October 31, Condensed Consolidated Statements of Operations Location 2023 2022 Total Gains (losses) related to cash flow hedges Total Gains (losses) related to cash flow hedges Revenues $ 1,865,675 $ 15,625 $ 1,599,103 $ 5,647 Costs and expenses 1,777,820 839 1,625,424 (11,852) Provision for (benefit from) income taxes 15,534 — 52,563 (3,220) Nine Months Ended October 31, Condensed Consolidated Statements of Operations Location 2023 2022 Total Gains (losses) related to cash flow hedges Total Gains (losses) related to cash flow hedges Revenues $ 5,336,753 $ 49,217 $ 4,569,558 $ 5,985 Costs and expenses 5,232,441 1,781 4,702,800 (18,636) Provision for (benefit from) income taxes 25,459 — 59,021 (3,220) Pre-tax gains (losses) associated with cash flow hedges were as follows (in thousands): Condensed Consolidated Statements of Operations and Statements of Comprehensive Income (Loss) Locations Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Gains (losses) recognized in OCI Net change in unrealized gains (losses) on cash flow hedges $ 67,324 $ 48,058 $ 54,617 $ 110,052 Gains (losses) reclassified from AOCI into income (effective portion) Revenues 15,625 5,647 49,217 5,985 Gains (losses) reclassified from AOCI into income (effective portion) Costs and expenses 839 (11,852) 1,781 (18,636) Gains (losses) reclassified from AOCI into income (effective portion) Provision for (benefit from) income taxes — (3,220) — (3,220) Gains (losses) associated with non-designated hedges were as follows (in thousands): Condensed Consolidated Statements of Operations Location Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Gains (losses) related to non-designated hedges Other income (expense), net $ 6,425 $ 7,187 $ 7,857 $ 13,288 |
Offsetting Assets | As of October 31, 2023, 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 $ 25,461 $ — $ 25,461 $ (1,856) $ — $ 23,605 Counterparty B 20,486 — 20,486 (9,009) — 11,477 Counterparty C 2,015 — 2,015 (228) — 1,787 Counterparty D 37,367 — 37,367 (8,323) — 29,044 Counterparty E 5,207 — 5,207 (852) — 4,355 Total $ 90,536 $ — $ 90,536 $ (20,268) $ — $ 70,268 |
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 $ 1,856 $ — $ 1,856 $ (1,856) $ — $ — Counterparty B 9,009 — 9,009 (9,009) — — Counterparty C 228 — 228 (228) — — Counterparty D 8,323 — 8,323 (8,323) — — Counterparty E 852 — 852 (852) — — Total $ 20,268 $ — $ 20,268 $ (20,268) $ — $ — |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Oct. 31, 2023 | |
Debt Disclosure [Abstract] | |
Outstanding Debt | Outstanding debt consisted of the following (in thousands): October 31, 2023 January 31, 2023 2027 Notes $ 1,000,000 $ 1,000,000 2029 Notes 750,000 750,000 2032 Notes 1,250,000 1,250,000 Total principal amount 3,000,000 3,000,000 Less: unamortized debt discount and issuance costs (21,200) (24,066) Net carrying amount 2,978,800 2,975,934 Debt, noncurrent $ 2,978,800 $ 2,975,934 |
Schedule of Maturities of Long-term Debt | As of October 31, 2023, the future principal payments for the outstanding debt were as follows (in thousands): Fiscal Period: Remainder of 2024 $ — 2025 — 2026 — 2027 — 2028 1,000,000 Thereafter 2,000,000 Total principal amount $ 3,000,000 |
Schedule of Interest Expense | The following table sets forth total interest expense recognized related to our debt (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Contractual interest expense $ 27,562 $ 28,036 $ 82,688 $ 67,702 Interest cost related to amortization and write-off of debt discount and issuance costs 955 1,557 2,866 6,000 Total interest expense $ 28,517 $ 29,593 $ 85,554 $ 73,702 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Oct. 31, 2023 | |
Leases [Abstract] | |
Components of Lease Expense | The components of operating lease expense were as follows (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Operating lease cost $ 26,925 $ 25,404 $ 82,005 $ 73,821 Short-term lease cost 737 854 2,379 3,001 Variable lease cost 11,871 12,787 33,869 32,970 Total operating lease cost $ 39,533 $ 39,045 $ 118,253 $ 109,792 |
Information Related to Right-of-Use Assets and Lease Liabilities | Supplemental cash flow information related to our operating leases was as follows (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Cash paid for operating lease liabilities $ 25,197 $ 23,190 $ 79,006 $ 68,386 Operating lease right-of-use assets obtained in exchange for new operating lease liabilities 30,073 6,611 93,828 93,091 Other information related to our operating leases was as follows: October 31, 2023 January 31, 2023 Weighted average remaining lease term (in years) 5 5 Weighted average discount rate 3.55 % 2.79 % |
Maturities of Operating Lease Liabilities | As of October 31, 2023, maturities of operating lease liabilities were as follows (in thousands): Fiscal Period: Remainder of 2024 $ 28,398 2025 100,927 2026 69,886 2027 50,292 2028 36,115 Thereafter 46,296 Total lease payments 331,914 Less imputed interest (34,746) Total operating lease liabilities $ 297,168 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Oct. 31, 2023 | |
Equity [Abstract] | |
Summary of Information Related to Restricted Stock Units Activity | RSU activity during the nine months ended October 31, 2023, was as follows (in thousands, except per share data): Number of Shares Weighted-Average Grant Date Fair Value Balance as of January 31, 2023 14,099 $ 206.38 RSUs granted 8,472 193.86 RSUs vested (5,179) 202.76 RSUs forfeited (1,269) 203.10 Balance as of October 31, 2023 16,123 201.22 |
Summary of Information Related to Stock Option Activity | Stock option activity during the nine months ended October 31, 2023, was as follows (in thousands, except aggregate intrinsic value, which is reflected in millions, and per share data): Outstanding Stock Options Weighted-Average Exercise Price Aggregate Intrinsic Value Balance as of January 31, 2023 115 $ 30.36 $ 17 Stock options exercised (17) 35.03 Stock options canceled — — Balance as of October 31, 2023 98 29.58 18 Vested and expected to vest as of October 31, 2023 98 29.58 18 Exercisable as of October 31, 2023 98 29.58 18 |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 9 Months Ended |
Oct. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Other income (expense), net consisted of the following (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Interest income $ 80,004 $ 31,252 $ 214,268 $ 50,473 Interest expense (1) (28,535) (29,626) (85,617) (73,804) Other (2) (10,081) 2,537 (14,999) (25,458) Total other income (expense), net $ 41,388 $ 4,163 $ 113,652 $ (48,789) (1) Interest expense primarily includes the contractual interest expense of our debt obligations, and the related non-cash interest expense attributable to amortization of the debt discount and issuance costs. For further information, see Note 10, Debt . (2) Other primarily includes the net gains (losses) from our equity investments. For further information, see Note 3, Investments . |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Oct. 31, 2023 | |
Earnings Per Share [Abstract] | |
Summary of Calculation of Basic and Diluted Net Income (Loss) Per Share | The following table presents the calculation of basic and diluted net income (loss) per share (in thousands, except per share data): Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Class A Class B Class A Class B Class A Class B Class A Class B Net income (loss) per share, basic: Numerator: Net income (loss) $ 90,101 $ 23,608 $ (58,648) $ (16,073) $ 152,222 $ 40,283 $ (188,757) $ (52,295) Denominator: Weighted-average shares outstanding, basic 207,726 54,427 200,740 55,013 206,184 54,563 198,876 55,099 Net income (loss) per share, basic $ 0.43 $ 0.43 $ (0.29) $ (0.29) $ 0.74 $ 0.74 $ (0.95) $ (0.95) Net income (loss) per share, diluted: Numerator: Net income (loss) $ 90,101 $ 23,608 $ (58,648) $ (16,073) $ 152,222 $ 40,283 $ (188,757) $ (52,295) Reallocation of net income as a result of conversion of Class B to Class A common stock 23,608 — — — 40,283 — — — Reallocation of net income to Class B common stock — (374) — — — (509) — — Net income (loss) for diluted calculation 113,709 23,234 (58,648) (16,073) 192,505 39,774 (188,757) (52,295) Denominator: Weighted-average shares outstanding, basic 207,726 54,427 200,740 55,013 206,184 54,563 198,876 55,099 Conversion of Class B to Class A common stock 54,427 — — — 54,563 — — — Dilutive effect of share-based awards 4,224 — — — 3,340 — — — Weighted-average shares outstanding, diluted 266,377 54,427 200,740 55,013 264,087 54,563 198,876 55,099 Net income (loss) per share, diluted $ 0.43 $ 0.43 $ (0.29) $ (0.29) $ 0.73 $ 0.73 $ (0.95) $ (0.95) |
Shares Excluded from Diluted Net Income (Loss) Per Share | The effects of these potentially outstanding shares were not included in the calculation of diluted net income (loss) per share because the effect would have been anti-dilutive (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Shares related to outstanding share-based awards 1,882 16,105 2,774 15,453 Shares related to the convertible senior notes — 5,182 — 6,928 Shares subject to warrants related to the issuance of convertible senior notes — 7,818 — 7,818 Total 1,882 29,105 2,774 30,199 |
Geographic Information (Tables)
Geographic Information (Tables) | 9 Months Ended |
Oct. 31, 2023 | |
Segment Reporting [Abstract] | |
Summary of Revenues by Geographic Area | The following table sets forth revenues by geographic area (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 United States $ 1,404,124 $ 1,204,842 $ 4,012,660 $ 3,432,249 Other countries 461,551 394,261 1,324,093 1,137,309 Total revenues $ 1,865,675 $ 1,599,103 $ 5,336,753 $ 4,569,558 |
Long-lived Assets by Geographic Areas | Aggregate Property and equipment, net and Operating lease right-of-use assets by geographic area was as follows (in thousands): October 31, 2023 January 31, 2023 United States $ 1,175,275 $ 1,206,486 Ireland 205,470 159,337 Other countries 91,782 84,709 Total long-lived assets $ 1,472,527 $ 1,450,532 |
Overview and Basis of Present_3
Overview and Basis of Presentation (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 USD ($) | Oct. 31, 2022 USD ($) | Oct. 31, 2023 USD ($) segment | Oct. 31, 2022 USD ($) | |
Property, Plant and Equipment [Line Items] | ||||
Decrease in depreciation expense | $ (52) | $ (69) | $ (149) | $ (207) |
Number of operating segments | segment | 1 | |||
Data Center Equipment | Long-Lived Tangible Assets, Amortization Period | ||||
Property, Plant and Equipment [Line Items] | ||||
Decrease in depreciation expense | $ 22 | $ 77 | ||
Minimum | Data Center Equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, useful life (years) | 3 years | 3 years | ||
Maximum | Data Center Equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, useful life (years) | 5 years | 5 years |
Investments - Summary of Market
Investments - Summary of Marketable Securities (Details) - USD ($) $ in Thousands | Oct. 31, 2023 | Jan. 31, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 5,978,660 | $ 4,764,845 |
Unrealized Gains | 660 | 1,694 |
Unrealized Losses | (32,529) | (17,359) |
Aggregate Fair Value | 5,946,791 | 4,749,180 |
Included in Cash and cash equivalents | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 659,919 | 594,864 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | (1) |
Aggregate Fair Value | 659,919 | 594,863 |
Included in Marketable securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 5,318,741 | 4,169,980 |
Unrealized Gains | 660 | 1,694 |
Unrealized Losses | (32,529) | (17,357) |
Aggregate Fair Value | 5,286,872 | 4,154,317 |
U.S. treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,307,535 | 2,455,739 |
Unrealized Gains | 51 | 77 |
Unrealized Losses | (9,121) | (6,765) |
Aggregate Fair Value | 2,298,465 | 2,449,051 |
U.S. agency obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 787,767 | 325,664 |
Unrealized Gains | 254 | 0 |
Unrealized Losses | (2,376) | (3,874) |
Aggregate Fair Value | 785,645 | 321,790 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,771,472 | 966,801 |
Unrealized Gains | 355 | 1,617 |
Unrealized Losses | (21,031) | (6,715) |
Aggregate Fair Value | 1,750,796 | 961,703 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,111,886 | 1,016,641 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (1) | (5) |
Aggregate Fair Value | $ 1,111,885 | $ 1,016,636 |
Investments - Contractual Matur
Investments - Contractual Maturity of Debt Securities (Details) - USD ($) $ in Thousands | Oct. 31, 2023 | Jan. 31, 2023 |
Investments, Debt and Equity Securities [Abstract] | ||
Due within 1 year | $ 3,885,682 | |
Due in 1 year through 5 years | 2,061,109 | |
Aggregate Fair Value | $ 5,946,791 | $ 4,749,180 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | Jan. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |||||
Fair value of debt securities in an unrealized loss position | $ 4,300 | $ 4,300 | $ 3,100 | ||
Credit and non-credit losses on debt securities | 0 | $ 0 | 0 | $ 0 | |
Proceeds of sale of debt securities | 24 | 20 | 42 | 48 | |
Impairment loss on non-marketable equity securities | 9 | 2 | 22 | 10 | |
Upward price adjustment to non-marketable equity investments | 2 | 8 | |||
Gain (loss) on non-marketable equity securities | 4 | (2) | |||
Proceeds from sale of available-for-sale securities, equity | 22 | 0 | 52 | 5 | |
Equity securities, unrealized loss | $ 4 | 0 | $ 2 | $ 17 | |
Equity securities, unrealized gain | $ 0 |
Investments - Equity Investment
Investments - Equity Investments (Details) - USD ($) $ in Thousands | Oct. 31, 2023 | Jan. 31, 2023 |
Schedule of Equity Method Investments [Line Items] | ||
Non-marketable equity investments measured using the measurement alternative | $ 250,311 | $ 261,922 |
Equity investments | 955,394 | 1,244,914 |
Cash and cash equivalents | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity securities | 675,910 | 902,226 |
Other assets | ||
Schedule of Equity Method Investments [Line Items] | ||
Non-marketable equity investments measured using the measurement alternative | 250,311 | 261,922 |
Marketable securities | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity securities | $ 29,173 | $ 80,766 |
Investments - Equity Investme_2
Investments - Equity Investments Realized and Unrealized Gains (Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Net realized gains (losses) recognized on equity investments sold | $ (807) | $ 4,514 | $ 1,984 | $ (365) |
Net unrealized gains (losses) recognized on equity investments held as of the end of the period | (13,562) | (155) | (23,529) | (19,121) |
Total net gains (losses) recognized in Other income (expense), net | $ (14,369) | $ 4,359 | $ (21,545) | $ (19,486) |
Investments - Schedule of Non-M
Investments - Schedule of Non-Marketable Equity Investments (Details) - USD ($) $ in Thousands | Oct. 31, 2023 | Jan. 31, 2023 |
Investments, Debt and Equity Securities [Abstract] | ||
Total initial cost | $ 207,485 | $ 206,833 |
Cumulative net unrealized gains (losses) | 42,826 | 55,089 |
Carrying value | $ 250,311 | $ 261,922 |
Investments - Schedule of Marke
Investments - Schedule of Marketable Equity Investments (Details) - USD ($) $ in Thousands | Oct. 31, 2023 | Jan. 31, 2023 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Total initial cost | $ 14,817 | $ 38,449 |
Cumulative net unrealized gains (losses) | 14,356 | 42,317 |
Marketable securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities | $ 29,173 | $ 80,766 |
Fair Value Measurements - Infor
Fair Value Measurements - Information about Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Oct. 31, 2023 | Jan. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | $ 5,946,791 | $ 4,749,180 |
Foreign currency derivative assets | 90,536 | |
Foreign currency derivative liabilities | 20,268 | |
U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 2,298,465 | 2,449,051 |
U.S. agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 785,645 | 321,790 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 1,750,796 | 961,703 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 1,111,885 | 1,016,636 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity investments | 29,173 | 80,766 |
Foreign currency derivative assets | 90,536 | 64,824 |
Total assets | 6,742,410 | 5,796,996 |
Foreign currency derivative liabilities | 20,268 | 33,972 |
Total liabilities | 20,268 | 33,972 |
Fair Value, Measurements, Recurring | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 2,298,465 | 2,449,051 |
Fair Value, Measurements, Recurring | U.S. agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 785,645 | 321,790 |
Fair Value, Measurements, Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 1,750,796 | 961,703 |
Fair Value, Measurements, Recurring | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 1,111,885 | 1,016,636 |
Fair Value, Measurements, Recurring | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 675,910 | 902,226 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity investments | 29,173 | 80,766 |
Foreign currency derivative assets | 0 | 0 |
Total assets | 3,003,548 | 3,432,043 |
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 | 2,298,465 | 2,449,051 |
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] | ||
Money market funds | 675,910 | 902,226 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity investments | 0 | 0 |
Foreign currency derivative assets | 90,536 | 64,824 |
Total assets | 3,738,862 | 2,364,953 |
Foreign currency derivative liabilities | 20,268 | 33,972 |
Total liabilities | 20,268 | 33,972 |
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 | 785,645 | 321,790 |
Fair Value, Measurements, Recurring | Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 1,750,796 | 961,703 |
Fair Value, Measurements, Recurring | Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 1,111,885 | 1,016,636 |
Fair Value, Measurements, Recurring | Level 2 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 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 | 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] | ||
Money market funds | $ 0 | $ 0 |
Deferred Costs (Details)
Deferred Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | Jan. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |||||
Deferred sales commission | $ 640 | $ 640 | $ 612 | ||
Amortization of deferred costs | 54 | $ 45 | 155 | $ 127 | |
Capitalized contract cost, impairment loss | $ 0 | $ 0 | $ 0 | $ 0 |
Property and Equipment, Net - S
Property and Equipment, Net - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Oct. 31, 2023 | Jan. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,461,688 | $ 2,380,506 |
Less accumulated depreciation and amortization | (1,255,124) | (1,179,252) |
Property and equipment, net | 1,206,564 | 1,201,254 |
Computers, equipment, and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,348,381 | 1,286,540 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 723,164 | 719,966 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 216,138 | 202,101 |
Furniture, fixtures, and transportation equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 92,938 | 90,816 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 81,067 | $ 81,083 |
Property and Equipment, Net - N
Property and Equipment, Net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 52 | $ 69 | $ 149 | $ 207 |
Acquisition-Related Intangibl_3
Acquisition-Related Intangible Assets, Net - Schedule of Acquired Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | Jan. 31, 2023 | |
Acquisition-related intangible assets | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, gross | $ 665,400 | $ 665,400 | $ 681,300 | ||
Less accumulated amortization | (416,158) | (416,158) | (375,835) | ||
Total | 249,242 | 249,242 | 305,465 | ||
Amortization of intangible assets | 16,000 | $ 21,000 | 58,000 | $ 64,000 | |
Developed technology | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, gross | 326,800 | 326,800 | 342,700 | ||
Customer relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, gross | 311,100 | 311,100 | 311,100 | ||
Backlog | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, gross | 15,000 | 15,000 | 15,000 | ||
Trade name | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, gross | $ 12,500 | $ 12,500 | $ 12,500 |
Acquisition-Related Intangibl_4
Acquisition-Related Intangible Assets, Net - Schedule of Future Amortization Expense (Detail) - Acquisition-related intangible assets - USD ($) $ in Thousands | Oct. 31, 2023 | Jan. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Remainder of 2024 | $ 16,088 | |
2025 | 62,198 | |
2026 | 56,283 | |
2027 | 31,712 | |
2028 | 27,346 | |
Thereafter | 55,615 | |
Total | $ 249,242 | $ 305,465 |
Other Noncurrent Assets - Sched
Other Noncurrent Assets - Schedule of Other Noncurrent Assets (Details) - USD ($) $ in Thousands | Oct. 31, 2023 | Jan. 31, 2023 |
Other Assets [Line Items] | ||
Non-marketable equity and other investments | $ 250,311 | $ 263,485 |
Derivative assets | 37,725 | 21,757 |
Prepayments for goods and services | 16,463 | 23,466 |
Net deferred tax assets | 7,105 | 12,650 |
Deposits | 6,038 | 5,819 |
Other | 6,445 | 13,274 |
Total other assets | 351,262 | 360,985 |
Patented Technology and Other Intangible Assets, Net | ||
Other Assets [Line Items] | ||
Technology patents and other intangible assets, net | $ 27,175 | $ 20,534 |
Other Noncurrent Assets - Summa
Other Noncurrent Assets - Summary of Future Estimated Amortization Expense Related to Acquired Land Leasehold Interest and Technology Patents (Details) - Patented Technology and Other Intangible Assets, Net - USD ($) $ in Thousands | Oct. 31, 2023 | Jan. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Remainder of 2024 | $ 1,059 | |
2025 | 3,715 | |
2026 | 3,366 | |
2027 | 3,018 | |
2028 | 2,774 | |
Thereafter | 13,243 | |
Total | $ 27,175 | $ 20,534 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) $ in Millions | Oct. 31, 2023 | Jan. 31, 2023 |
Derivative [Line Items] | ||
Net gains on cash flow hedges estimated to be reclassified into income within the next 12 months | $ 33 | |
Non-designated hedges | Long | ||
Derivative [Line Items] | ||
Derivative, notional amount | 125 | $ 235 |
Non-designated hedges | Short | ||
Derivative [Line Items] | ||
Derivative, notional amount | 1 | 2 |
Cash flow hedges | Cash flow hedges | Long | ||
Derivative [Line Items] | ||
Derivative, notional amount | 2,200 | 1,700 |
Cash flow hedges | Cash flow hedges | Short | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 369 | $ 324 |
Cash flow hedges | Cash flow hedges | Maximum | ||
Derivative [Line Items] | ||
Derivative, remaining maturity (in months) | 48 months |
Derivative Instruments - Fair V
Derivative Instruments - Fair Values of Outstanding Derivative Instruments (Details) - USD ($) $ in Thousands | Oct. 31, 2023 | Jan. 31, 2023 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets: | $ 90,536 | $ 64,824 |
Derivative liabilities: | 20,268 | 33,972 |
Non-designated hedges | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets: | 688 | 99 |
Non-designated hedges | Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities: | 199 | 5,244 |
Non-designated hedges | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities: | 0 | 1 |
Cash flow hedges | Cash flow hedges | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets: | 52,123 | 42,968 |
Cash flow hedges | Cash flow hedges | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets: | 37,725 | 21,757 |
Cash flow hedges | Cash flow hedges | Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities: | 16,644 | 13,231 |
Cash flow hedges | Cash flow hedges | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities: | $ 3,425 | $ 15,496 |
Derivative Instruments - Effect
Derivative Instruments - Effect of Cash Flow Hedges on Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Revenues | $ 1,865,675 | $ 1,599,103 | $ 5,336,753 | $ 4,569,558 |
Costs and expenses | 1,777,820 | 1,625,424 | 5,232,441 | 4,702,800 |
Provision for (benefit from) income taxes | 15,534 | 52,563 | 25,459 | 59,021 |
Gains (losses) related to cash flow hedges, Income Taxes | 0 | (3,220) | 0 | (3,220) |
Revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) related to cash flow hedges | 15,625 | 5,647 | 49,217 | 5,985 |
Costs and expenses | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) related to cash flow hedges | $ 839 | $ (11,852) | $ 1,781 | $ (18,636) |
Derivative Instruments - Pre-ta
Derivative Instruments - Pre-tax Gains (Losses) Associated with Cash Flow Hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in OCI | $ 67,324 | $ 48,058 | $ 54,617 | $ 110,052 |
Gains (losses) reclassified from AOCI into income (effective portion) | 0 | (3,220) | 0 | (3,220) |
Revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) reclassified from AOCI into income (effective portion) | 15,625 | 5,647 | 49,217 | 5,985 |
Costs and expenses | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) reclassified from AOCI into income (effective portion) | 839 | (11,852) | 1,781 | (18,636) |
Other income (expense), net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) related to non-designated hedges | $ 6,425 | $ 7,187 | $ 7,857 | $ 13,288 |
Derivative Instruments - Offset
Derivative Instruments - Offsetting Assets (Details) - USD ($) $ in Thousands | Oct. 31, 2023 | Jan. 31, 2023 |
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | $ 90,536 | $ 64,824 |
Gross Amounts Offset on the Condensed Consolidated Balance Sheets | 0 | |
Net Amounts of Assets Presented on the Condensed Consolidated Balance Sheets | 90,536 | |
Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets, Financial Instruments | (20,268) | |
Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets, Cash Collateral Received | 0 | |
Net Assets Exposed | 70,268 | |
Counterparty A | ||
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | 25,461 | |
Gross Amounts Offset on the Condensed Consolidated Balance Sheets | 0 | |
Net Amounts of Assets Presented on the Condensed Consolidated Balance Sheets | 25,461 | |
Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets, Financial Instruments | (1,856) | |
Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets, Cash Collateral Received | 0 | |
Net Assets Exposed | 23,605 | |
Counterparty B | ||
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | 20,486 | |
Gross Amounts Offset on the Condensed Consolidated Balance Sheets | 0 | |
Net Amounts of Assets Presented on the Condensed Consolidated Balance Sheets | 20,486 | |
Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets, Financial Instruments | (9,009) | |
Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets, Cash Collateral Received | 0 | |
Net Assets Exposed | 11,477 | |
Counterparty C | ||
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | 2,015 | |
Gross Amounts Offset on the Condensed Consolidated Balance Sheets | 0 | |
Net Amounts of Assets Presented on the Condensed Consolidated Balance Sheets | 2,015 | |
Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets, Financial Instruments | (228) | |
Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets, Cash Collateral Received | 0 | |
Net Assets Exposed | 1,787 | |
Counterparty D | ||
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | 37,367 | |
Gross Amounts Offset on the Condensed Consolidated Balance Sheets | 0 | |
Net Amounts of Assets Presented on the Condensed Consolidated Balance Sheets | 37,367 | |
Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets, Financial Instruments | (8,323) | |
Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets, Cash Collateral Received | 0 | |
Net Assets Exposed | 29,044 | |
Counterparty E | ||
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | 5,207 | |
Gross Amounts Offset on the Condensed Consolidated Balance Sheets | 0 | |
Net Amounts of Assets Presented on the Condensed Consolidated Balance Sheets | 5,207 | |
Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets, Financial Instruments | (852) | |
Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets, Cash Collateral Received | 0 | |
Net Assets Exposed | $ 4,355 |
Derivative Instruments - Offs_2
Derivative Instruments - Offsetting Liabilities (Details) - USD ($) $ in Thousands | Oct. 31, 2023 | Jan. 31, 2023 |
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | $ 20,268 | $ 33,972 |
Gross Amounts Offset on the Condensed Consolidated Balance Sheets | 0 | |
Net Amounts of Liabilities Presented on the Condensed Consolidated Balance Sheets | 20,268 | |
Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets, Financial Instruments | (20,268) | |
Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets, Cash Collateral Pledged | 0 | |
Net Liabilities Exposed | 0 | |
Counterparty A | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 1,856 | |
Gross Amounts Offset on the Condensed Consolidated Balance Sheets | 0 | |
Net Amounts of Liabilities Presented on the Condensed Consolidated Balance Sheets | 1,856 | |
Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets, Financial Instruments | (1,856) | |
Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets, Cash Collateral Pledged | 0 | |
Net Liabilities Exposed | 0 | |
Counterparty B | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 9,009 | |
Gross Amounts Offset on the Condensed Consolidated Balance Sheets | 0 | |
Net Amounts of Liabilities Presented on the Condensed Consolidated Balance Sheets | 9,009 | |
Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets, Financial Instruments | (9,009) | |
Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets, Cash Collateral Pledged | 0 | |
Net Liabilities Exposed | 0 | |
Counterparty C | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 228 | |
Gross Amounts Offset on the Condensed Consolidated Balance Sheets | 0 | |
Net Amounts of Liabilities Presented on the Condensed Consolidated Balance Sheets | 228 | |
Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets, Financial Instruments | (228) | |
Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets, Cash Collateral Pledged | 0 | |
Net Liabilities Exposed | 0 | |
Counterparty D | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 8,323 | |
Gross Amounts Offset on the Condensed Consolidated Balance Sheets | 0 | |
Net Amounts of Liabilities Presented on the Condensed Consolidated Balance Sheets | 8,323 | |
Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets, Financial Instruments | (8,323) | |
Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets, Cash Collateral Pledged | 0 | |
Net Liabilities Exposed | 0 | |
Counterparty E | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 852 | |
Gross Amounts Offset on the Condensed Consolidated Balance Sheets | 0 | |
Net Amounts of Liabilities Presented on the Condensed Consolidated Balance Sheets | 852 | |
Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets, Financial Instruments | (852) | |
Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets, Cash Collateral Pledged | 0 | |
Net Liabilities Exposed | $ 0 |
Debt - Outstanding Debt (Detail
Debt - Outstanding Debt (Details) - USD ($) $ in Thousands | Oct. 31, 2023 | Jan. 31, 2023 |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 3,000,000 | $ 3,000,000 |
Less: unamortized debt discount and issuance costs | (21,200) | (24,066) |
Net carrying amount | 2,978,800 | 2,975,934 |
Debt, noncurrent | 2,978,800 | 2,975,934 |
2027 Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 1,000,000 | 1,000,000 |
2029 Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 750,000 | 750,000 |
2032 Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 1,250,000 | $ 1,250,000 |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Thousands | Oct. 31, 2023 | Jan. 31, 2023 |
Debt Disclosure [Abstract] | ||
Remainder of 2024 | $ 0 | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
2028 | 1,000,000 | |
Thereafter | 2,000,000 | |
Total principal amount | $ 3,000,000 | $ 3,000,000 |
Debt - Senior Notes, Credit Agr
Debt - Senior Notes, Credit Agreement, Convertible Senior Notes, Notes Hedges and Warrants (Details) $ / shares in Units, shares in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Apr. 30, 2022 USD ($) | Oct. 31, 2022 USD ($) shares | Oct. 31, 2023 USD ($) trading_day $ / shares shares | Jan. 31, 2023 USD ($) shares | Apr. 30, 2020 USD ($) | Sep. 30, 2017 USD ($) | |
Debt Instrument [Line Items] | ||||||
Debt discount and issuance costs | $ 21,200,000 | $ 24,066,000 | ||||
Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 3,000,000,000 | |||||
Debt discount and issuance costs | 27,000,000 | |||||
Fair value of Senior Notes | $ 2,600,000,000 | |||||
2027 Notes | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 1,000,000,000 | |||||
Contractual interest rate | 3.50% | |||||
Effective interest rate | 3.67% | |||||
2029 Notes | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 750,000,000 | |||||
Contractual interest rate | 3.70% | |||||
Effective interest rate | 3.82% | |||||
2032 Notes | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 1,250,000,000 | |||||
Contractual interest rate | 3.80% | |||||
Effective interest rate | 3.90% | |||||
2022 Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, maximum leverage ratio | 3.50 | |||||
Debt instrument, maximum leverage ratio step up | 4.50 | |||||
2022 Credit Agreement | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 1,000,000,000 | |||||
Long-term line of credit | $ 0 | |||||
Term Loan | Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 750,000,000 | |||||
Remaining principal paid off | 694,000,000 | |||||
2020 Credit Agreement | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 750,000,000 | |||||
Long-term line of credit | $ 0 | |||||
2022 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Repayments on convertible senior notes | $ 1,150,000,000 | |||||
Shares covered by each purchased options or warrants (in shares) | shares | 7.8 | |||||
Number of trading days related to warrants (in days) | trading_day | 60 | |||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 213.96 | |||||
2022 Notes | Convertible Debt | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 1,150,000,000 | |||||
Contractual interest rate | 0.25% | |||||
2022 Notes | Convertible Debt | Class A | ||||||
Debt Instrument [Line Items] | ||||||
Settlement of convertible senior notes (in shares) | shares | 0.6 | |||||
Indexed shares (in shares) | shares | 7.8 | |||||
Initial conversion price (in dollars per share) | $ / shares | $ 147.10 | |||||
Purchase of treasury stock from the exercise of convertible senior notes hedges (in shares) | shares | 0.6 | |||||
Base Rate | Minimum | 2022 Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0% | |||||
Base Rate | Maximum | 2022 Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.50% | |||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | 2022 Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.10% | |||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum | 2022 Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.75% | |||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum | 2022 Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.50% |
Debt - Schedule of Interest Exp
Debt - Schedule of Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Debt Disclosure [Abstract] | ||||
Contractual interest expense | $ 27,562 | $ 28,036 | $ 82,688 | $ 67,702 |
Interest cost related to amortization and write-off of debt discount and issuance costs | 955 | 1,557 | 2,866 | 6,000 |
Total interest expense | $ 28,517 | $ 29,593 | $ 85,554 | $ 73,702 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | Oct. 31, 2023 | Jan. 31, 2023 |
Lessee, Lease, Description [Line Items] | ||
Operating lease right-of-use assets | $ 265,963 | $ 249,278 |
Operating lease liabilities | 297,168 | $ 273,000 |
Operating lease, lease not yet commenced, payment | $ 71,000 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, lease not yet commenced, term (years) | 3 years | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, lease not yet commenced, term (years) | 6 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Leases [Abstract] | ||||
Operating lease cost | $ 26,925 | $ 25,404 | $ 82,005 | $ 73,821 |
Short-term lease cost | 737 | 854 | 2,379 | 3,001 |
Variable lease cost | 11,871 | 12,787 | 33,869 | 32,970 |
Total operating lease cost | $ 39,533 | $ 39,045 | $ 118,253 | $ 109,792 |
Leases - Information Related to
Leases - Information Related to Our Right-of-Use Assets and Lease Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | Jan. 31, 2023 | |
Leases [Abstract] | |||||
Cash paid for operating lease liabilities | $ 25,197 | $ 23,190 | $ 79,006 | $ 68,386 | |
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities | $ 30,073 | $ 6,611 | $ 93,828 | $ 93,091 | |
Weighted average remaining lease term (in years) | 5 years | 5 years | 5 years | ||
Weighted average discount rate | 3.55% | 3.55% | 2.79% |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Oct. 31, 2023 | Jan. 31, 2023 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
Remainder of 2024 | $ 28,398 | |
2025 | 100,927 | |
2026 | 69,886 | |
2027 | 50,292 | |
2028 | 36,115 | |
Thereafter | 46,296 | |
Total lease payments | 331,914 | |
Less imputed interest | (34,746) | |
Total operating lease liabilities | $ 297,168 | $ 273,000 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2022 $ / shares shares | Oct. 31, 2023 USD ($) $ / shares shares | Oct. 31, 2022 shares | Oct. 31, 2023 USD ($) vote $ / shares shares | Oct. 31, 2022 shares | Nov. 30, 2022 USD ($) | Jun. 30, 2022 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Authorized repurchase amount | $ | $ 500 | ||||||
Term of contract (in months) | 18 months | ||||||
Authorized remaining amount to be purchased | $ | $ 139 | $ 139 | |||||
Unrecognized compensation cost | $ | $ 0 | $ 0 | |||||
Common stock: | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Treasury stock repurchased (in shares) | 677,000 | 0 | 1,312,000 | 0 | |||
Common stock repurchases under share repurchase program | $ | $ 148 | $ 286 | |||||
Treasury stock, average price per share (in dollars per share) | $ / shares | $ 218.35 | $ 218.34 | |||||
2022 Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Reserved for future issuance (in shares) | 30,000,000 | ||||||
Common stock available for future grants (in shares) | 21,000,000 | 21,000,000 | |||||
Employee Stock Purchase Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock available for future grants (in shares) | 4,000,000 | 4,000,000 | |||||
Employee Stock | |||||||
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% | ||||||
Restricted Stock Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Period of vesting (in years) | 4 years | ||||||
Unrecognized compensation cost, other than options | $ | $ 2,500 | $ 2,500 | |||||
Unrecognized compensation cost recognized over weighted-average period (in years) | 3 years | ||||||
RSUs granted (in shares) | 8,472,000 | ||||||
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 193.86 | ||||||
Market-Based Restricted Stock Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation cost, other than options | $ | $ 23 | $ 23 | |||||
Unrecognized compensation cost recognized over weighted-average period (in years) | 4 years | ||||||
Expected volatility | 40% | ||||||
Risk-free interest rate | 4% | ||||||
Expected term (in years) | 6 years | ||||||
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 124.80 | ||||||
Requisite service period (in years) | 5 years | ||||||
Market-Based Restricted Stock Units | Co-CEO | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
RSUs granted (in shares) | 300,000 | ||||||
Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Period of vesting (in years) | 5 years | ||||||
Period of which options become exercisable (in years) | 10 years | ||||||
Class A | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock, outstanding (in shares) | 209,000,000 | 209,000,000 | |||||
Common stock, votes per share | vote | 1 | ||||||
Class B | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock, outstanding (in shares) | 54,000,000 | 54,000,000 | |||||
Common stock, votes per share | vote | 10 |
Stockholders' Equity - Restrict
Stockholders' Equity - Restricted Stock Units Activity (Details) - Restricted Stock Units | 9 Months Ended |
Oct. 31, 2023 $ / shares shares | |
Number of Shares | |
Beginning Balance (in shares) | shares | 14,099,000 |
RSUs granted (in shares) | shares | 8,472,000 |
RSUs vested (in shares) | shares | (5,179,000) |
RSUs forfeited (in shares) | shares | (1,269,000) |
Ending Balance (in shares) | shares | 16,123,000 |
Weighted-Average Grant Date Fair Value | |
Beginning Balance (in dollars per share) | $ / shares | $ 206.38 |
RSUs granted (in dollars per share) | $ / shares | 193.86 |
RSUs vested (in dollars per share) | $ / shares | 202.76 |
RSUs forfeited (in dollars per share) | $ / shares | 203.10 |
Ending Balance (in dollars per share) | $ / shares | $ 201.22 |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Options (Details) $ / shares in Units, $ in Millions | 9 Months Ended |
Oct. 31, 2023 USD ($) $ / shares shares | |
Outstanding Stock Options | |
Beginning Balance (in shares) | shares | 115,000 |
Stock options exercised (in shares) | shares | (17,000) |
Stock options canceled (in shares) | shares | 0 |
Ending Balance (in shares) | shares | 98,000 |
Vested and expected to vest (in shares) | shares | 98,000 |
Exercisable (in shares) | shares | 98,000 |
Weighted-Average Exercise Price | |
Beginning Balance (in dollars per share) | $ / shares | $ 30.36 |
Stock options exercised (in dollars per share) | $ / shares | 35.03 |
Stock options canceled (in dollars per share) | $ / shares | 0 |
Ending Balance (in dollars per share) | $ / shares | 29.58 |
Vested and expected to vest, Weighted-Average Exercise Price (in dollars per share) | $ / shares | 29.58 |
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ / shares | $ 29.58 |
Beginning balance, Aggregate Intrinsic Value | $ | $ 17 |
Ending balance, Aggregate Intrinsic Value | $ | 18 |
Vested and expected to vest, Aggregate Intrinsic Value | $ | 18 |
Exercisable, Aggregate Intrinsic Value | $ | $ 18 |
Unearned Revenue and Performa_2
Unearned Revenue and Performance Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | Jan. 31, 2023 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Unearned revenue | $ 3,300 | $ 3,300 | $ 3,600 | ||
Subscription revenue recognized that was included in total unearned revenue balance at beginning of period | 1,400 | $ 1,200 | 3,000 | $ 2,700 | |
Professional Services, Subject To Cancellation And Pro-Rated Refund Rights | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Unearned revenue | 70 | 70 | $ 68 | ||
Subscription services | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue is expected to be recognized from remaining performance obligations for subscription contracts | 18,400 | 18,400 | |||
Subscription services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-11-01 | Minimum | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue is expected to be recognized from remaining performance obligations for subscription contracts | $ 6,000 | $ 6,000 | |||
Recognition period (in months) | 12 months | 12 months | |||
Subscription services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-11-01 | Maximum | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue is expected to be recognized from remaining performance obligations for subscription contracts | $ 10,600 | $ 10,600 | |||
Recognition period (in months) | 24 months | 24 months |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Other Income and Expenses [Abstract] | ||||
Interest income | $ 80,004 | $ 31,252 | $ 214,268 | $ 50,473 |
Interest expense | (28,535) | (29,626) | (85,617) | (73,804) |
Other | (10,081) | 2,537 | (14,999) | (25,458) |
Total other income (expense), net | $ 41,388 | $ 4,163 | $ 113,652 | $ (48,789) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision | $ 15,534 | $ 52,563 | $ 25,459 | $ 59,021 |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Summary of Calculation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Numerator: | ||||
Net income (loss) | $ 113,709 | $ (74,721) | $ 192,505 | $ (241,052) |
Denominator: | ||||
Weighted-average shares outstanding, basic (in shares) | 262,153 | 255,753 | 260,747 | 253,975 |
Weighted-average shares outstanding, diluted (in shares) | 266,377 | 255,753 | 264,087 | 253,975 |
Net income (loss) per share, basic (in dollars per share) | $ 0.43 | $ (0.29) | $ 0.74 | $ (0.95) |
Net income (loss) per share, diluted (in dollars per share) | $ 0.43 | $ (0.29) | $ 0.73 | $ (0.95) |
Class A | ||||
Numerator: | ||||
Net income (loss) | $ 90,101 | $ (58,648) | $ 152,222 | $ (188,757) |
Reallocation of net income as a result of conversion of Class B to Class A common stock | 23,608 | 0 | 40,283 | 0 |
Reallocation of net income to Class B common stock | 0 | 0 | 0 | 0 |
Net income (loss) for diluted calculation | $ 113,709 | $ (58,648) | $ 192,505 | $ (188,757) |
Denominator: | ||||
Weighted-average shares outstanding, basic (in shares) | 207,726 | 200,740 | 206,184 | 198,876 |
Conversion of Class B to Class A common stock (in shares) | 54,427 | 0 | 54,563 | 0 |
Dilutive effect of share-based awards (in shares) | 4,224 | 0 | 3,340 | 0 |
Weighted-average shares outstanding, diluted (in shares) | 266,377 | 200,740 | 264,087 | 198,876 |
Net income (loss) per share, basic (in dollars per share) | $ 0.43 | $ (0.29) | $ 0.74 | $ (0.95) |
Net income (loss) per share, diluted (in dollars per share) | $ 0.43 | $ (0.29) | $ 0.73 | $ (0.95) |
Class B | ||||
Numerator: | ||||
Net income (loss) | $ 23,608 | $ (16,073) | $ 40,283 | $ (52,295) |
Reallocation of net income as a result of conversion of Class B to Class A common stock | 0 | 0 | 0 | 0 |
Reallocation of net income to Class B common stock | (374) | 0 | (509) | 0 |
Net income (loss) for diluted calculation | $ 23,234 | $ (16,073) | $ 39,774 | $ (52,295) |
Denominator: | ||||
Weighted-average shares outstanding, basic (in shares) | 54,427 | 55,013 | 54,563 | 55,099 |
Conversion of Class B to Class A common stock (in shares) | 0 | 0 | 0 | 0 |
Dilutive effect of share-based awards (in shares) | 0 | 0 | 0 | 0 |
Weighted-average shares outstanding, diluted (in shares) | 54,427 | 55,013 | 54,563 | 55,099 |
Net income (loss) per share, basic (in dollars per share) | $ 0.43 | $ (0.29) | $ 0.74 | $ (0.95) |
Net income (loss) per share, diluted (in dollars per share) | $ 0.43 | $ (0.29) | $ 0.73 | $ (0.95) |
Net Income (Loss) Per Share -_2
Net Income (Loss) Per Share - Summary of Diluted Net Income (Loss) Per Common Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total anti-dilutive securities (in shares) | 1,882 | 29,105 | 2,774 | 30,199 |
Shares related to outstanding share-based awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total anti-dilutive securities (in shares) | 1,882 | 16,105 | 2,774 | 15,453 |
Shares related to the convertible senior notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total anti-dilutive securities (in shares) | 0 | 5,182 | 0 | 6,928 |
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) | 0 | 7,818 | 0 | 7,818 |
Geographic Information - Summar
Geographic Information - Summary of Revenues by Geographic Area (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 USD ($) market | Oct. 31, 2022 USD ($) | Oct. 31, 2023 USD ($) market | Oct. 31, 2022 USD ($) | |
Disaggregation of Revenue [Line Items] | ||||
Number of primary geographical markets | market | 2 | 2 | ||
Total revenues | $ 1,865,675 | $ 1,599,103 | $ 5,336,753 | $ 4,569,558 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 1,404,124 | 1,204,842 | 4,012,660 | 3,432,249 |
Other countries | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 461,551 | $ 394,261 | $ 1,324,093 | $ 1,137,309 |
Geographic Information - Long-L
Geographic Information - Long-Lived Assets (Details) - USD ($) $ in Thousands | Oct. 31, 2023 | Jan. 31, 2023 |
Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 1,472,527 | $ 1,450,532 |
United States | ||
Long-Lived Assets [Line Items] | ||
Total long-lived assets | 1,175,275 | 1,206,486 |
Ireland | ||
Long-Lived Assets [Line Items] | ||
Total long-lived assets | 205,470 | 159,337 |
Other countries | ||
Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 91,782 | $ 84,709 |