Cover
Cover - shares | 6 Months Ended | |
Jul. 31, 2019 | Aug. 26, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 31, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-37570 | |
City Area Code | 800 | |
Local Phone Number | 379-7873 | |
Entity Registrant Name | Pure Storage, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-1069557 | |
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 | |
Title of 12(b) Security | Class A Common Stock, $0.0001 par value per share | |
Trading Symbol | PSTG | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding (in shares) | 256,179,043 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001474432 | |
Current Fiscal Year End Date | --01-31 | |
Entity Address, Address Line One | 650 Castro Street, Suite 400 | |
Entity Address, City or Town | Mountain View | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94041 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 268,938 | $ 447,990 |
Marketable Securities | 913,521 | 749,482 |
Accounts receivable, net of allowance of $660 and $614 as of January 31, 2019 and July 31, 2019 | 352,617 | 378,729 |
Inventory | 35,820 | 44,687 |
Deferred commissions, current | 31,273 | 29,244 |
Prepaid expenses and other current assets | 47,776 | 51,695 |
Total current assets | 1,649,945 | 1,701,827 |
Property and equipment, net | 131,048 | 125,353 |
Operating lease right-of-use assets | 114,339 | 0 |
Deferred commissions, non-current | 87,295 | 85,729 |
Intangible assets, net | 63,659 | 20,118 |
Goodwill | 36,420 | 10,997 |
Deferred income taxes, non-current | 939 | 1,060 |
Restricted cash | 15,425 | 15,823 |
Other assets, non-current | 16,904 | 12,118 |
Total assets | 2,115,974 | 1,973,025 |
Current liabilities: | ||
Accounts payable | 64,582 | 103,462 |
Accrued compensation and benefits | 70,753 | 99,910 |
Accrued expenses and other liabilities | 44,690 | 39,860 |
Operating lease liabilities, current | 26,005 | 0 |
Deferred revenue, current | 308,523 | 266,584 |
Total current liabilities | 514,553 | 509,816 |
Convertible senior notes, net | 463,118 | 449,828 |
Operating lease liabilities, non-current | 94,941 | 0 |
Deferred revenue, non-current | 298,740 | 269,336 |
Deferred tax liabilities, non-current | 5,697 | 0 |
Other liabilities, non-current | 1,386 | 6,265 |
Total liabilities | 1,378,435 | 1,235,245 |
Commitments and contingencies (Note 7) | ||
Stockholders’ equity: | ||
Preferred stock, par value of $0.0001 per share— 20,000 shares authorized as of January 31, 2019 and July 31, 2019; no shares issued and outstanding as of January 31, 2019 and July 31, 2019 | 0 | 0 |
Class A and Class B common stock, par value of $0.0001 per share— 2,250,000 (Class A 2,000,000, Class B 250,000) shares authorized as of January 31, 2019 and July 31, 2019; 243,524 and 255,752 Class A shares issued and outstanding as of January 31, 2019 and July 31, 2019 | 26 | 24 |
Additional paid-in capital | 1,982,407 | 1,820,043 |
Accumulated other comprehensive income (loss) | 3,409 | (338) |
Accumulated deficit | (1,248,303) | (1,081,949) |
Total stockholders’ equity | 737,539 | 737,780 |
Total liabilities and stockholders’ equity | $ 2,115,974 | $ 1,973,025 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Accounts receivable, allowance | $ 614 | $ 660 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Shares authorized (in shares) | 20,000,000 | 20,000,000 |
Shares issued (in shares) | 0 | 0 |
Shares outstanding (in shares) | 0 | 0 |
Par value per share (in dollars per share) | $ 0.0001 | $ 0.0001 |
Shares authorized (in shares) | 2,250,000,000 | 2,250,000,000 |
Shares issued (in shares) | 241,359,000 | 220,979,000 |
Shares outstanding (in shares) | 241,359,000 | 220,979,000 |
Class A | ||
Par value per share (in dollars per share) | $ 0.0001 | $ 0.0001 |
Shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Shares issued (in shares) | 255,751,711 | 243,524,000 |
Shares outstanding (in shares) | 255,752,000 | 243,524,000 |
Class B | ||
Par value per share (in dollars per share) | $ 0.0001 | $ 0.0001 |
Shares authorized (in shares) | 250,000,000 | 250,000,000 |
Shares issued (in shares) | 0 | 0 |
Shares outstanding (in shares) | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Revenue | $ 396,327 | $ 308,884 | $ 723,027 | $ 564,829 |
Cost of revenue | 128,008 | 102,719 | 238,321 | 192,349 |
Gross profit | 268,319 | 206,165 | 484,706 | 372,480 |
Operating expenses: | ||||
Research and development | 107,020 | 84,031 | 212,095 | 162,523 |
Sales and marketing | 186,188 | 143,749 | 352,814 | 266,116 |
General and administrative | 40,016 | 33,591 | 82,126 | 60,921 |
Total operating expenses | 333,224 | 261,371 | 647,035 | 489,560 |
Loss from operations | (64,905) | (55,206) | (162,329) | (117,080) |
Other income (expense), net | (652) | (4,032) | (2,468) | (5,031) |
Loss before provision for income taxes | (65,557) | (59,238) | (164,797) | (122,111) |
Income tax provision | 461 | 885 | 1,557 | 2,316 |
Net loss | $ (66,018) | $ (60,123) | $ (166,354) | $ (124,427) |
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share) | $ (0.26) | $ (0.26) | $ (0.67) | $ (0.55) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted (in shares) | 251,298 | 229,359 | 248,366 | 226,609 |
Product | ||||
Revenue | $ 300,128 | $ 241,137 | $ 538,869 | $ 436,586 |
Cost of revenue | 92,870 | 78,262 | 169,462 | 144,682 |
Support subscription | ||||
Revenue | 96,199 | 67,747 | 184,158 | 128,243 |
Cost of revenue | $ 35,138 | $ 24,457 | $ 68,859 | $ 47,667 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (66,018) | $ (60,123) | $ (166,354) | $ (124,427) |
Other comprehensive income (loss) net of tax: | ||||
Change in unrealized net gain (loss) on available-for-sale securities | 2,120 | (193) | 3,747 | (909) |
Comprehensive loss | $ (63,898) | $ (60,316) | $ (162,607) | $ (125,336) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders’ Equity (Deficit) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Restricted Stock UnitsCommon Stock | Restricted StockCommon Stock |
Beginning balance (in shares) at Jan. 31, 2018 | 220,979 | ||||||
Beginning balance at Jan. 31, 2018 | $ 574,401 | $ 22 | $ 1,479,883 | $ (1,917) | $ (903,587) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock upon exercise of stock options (in shares) | 5,884 | ||||||
Issuance of common stock upon exercise of stock options | 29,066 | $ 1 | 29,065 | ||||
Stock-based compensation expense | 97,609 | 97,609 | |||||
Vesting of restricted stock units (in shares) | 4,117 | ||||||
Vesting of restricted stock units | 0 | $ 0 | 0 | ||||
Vesting of early exercised stock options | 320 | 320 | |||||
Common stock issued under employee stock purchase plan (in shares) | 2,111 | ||||||
Common stock issued under employee stock purchase plan | 19,698 | 19,698 | |||||
Issuance of restricted stock awards (in shares) | 3,330 | ||||||
Issuance of restricted stock | 1 | $ 1 | |||||
Repurchase of common stock (in shares) | (1,009) | ||||||
Repurchase of common stock | (20,000) | (20,000) | |||||
Purchase of capped calls | (64,630) | (64,630) | |||||
Equity component of convertible senior notes, net | 133,265 | 133,265 | |||||
Other comprehensive loss | (909) | (909) | |||||
Net loss | (124,427) | (124,427) | |||||
Ending balance (in shares) at Jul. 31, 2018 | 235,412 | ||||||
Ending balance at Jul. 31, 2018 | 644,394 | $ 24 | 1,675,210 | (2,826) | (1,028,014) | ||
Beginning balance (in shares) at Apr. 30, 2018 | 229,596 | ||||||
Beginning balance at Apr. 30, 2018 | 631,620 | $ 23 | 1,602,121 | (2,633) | (967,891) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock upon exercise of stock options (in shares) | 3,691 | ||||||
Issuance of common stock upon exercise of stock options | 19,436 | $ 1 | 19,435 | ||||
Stock-based compensation expense | 53,654 | 53,654 | |||||
Vesting of restricted stock units (in shares) | 2,104 | ||||||
Vesting of restricted stock units | 0 | $ 0 | 0 | ||||
Issuance of restricted stock awards (in shares) | 21 | ||||||
Issuance of restricted stock | 0 | $ 0 | |||||
Other comprehensive loss | (193) | (193) | |||||
Net loss | (60,123) | (60,123) | |||||
Ending balance (in shares) at Jul. 31, 2018 | 235,412 | ||||||
Ending balance at Jul. 31, 2018 | 644,394 | $ 24 | 1,675,210 | (2,826) | (1,028,014) | ||
Beginning balance (in shares) at Jan. 31, 2019 | 243,524 | ||||||
Beginning balance at Jan. 31, 2019 | 737,780 | $ 24 | 1,820,043 | (338) | (1,081,949) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock upon exercise of stock options (in shares) | 3,863 | ||||||
Issuance of common stock upon exercise of stock options | 19,291 | $ 1 | 19,290 | ||||
Stock-based compensation expense | 118,206 | 118,206 | |||||
Vesting of restricted stock units (in shares) | 4,327 | ||||||
Vesting of restricted stock units | 0 | $ 1 | (1) | ||||
Tax withholding on vesting of restricted stock | (7,173) | (7,173) | |||||
Common stock issued under employee stock purchase plan (in shares) | 2,973 | ||||||
Common stock issued under employee stock purchase plan | 32,042 | 32,042 | |||||
Issuance of restricted stock awards (in shares) | 1,065 | ||||||
Other comprehensive loss | 3,747 | 3,747 | |||||
Net loss | (166,354) | (166,354) | |||||
Ending balance (in shares) at Jul. 31, 2019 | 255,752 | ||||||
Ending balance at Jul. 31, 2019 | 737,539 | $ 26 | 1,982,407 | 3,409 | (1,248,303) | ||
Beginning balance (in shares) at Apr. 30, 2019 | 252,853 | ||||||
Beginning balance at Apr. 30, 2019 | 743,976 | $ 25 | 1,924,947 | 1,289 | (1,182,285) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock upon exercise of stock options (in shares) | 655 | ||||||
Issuance of common stock upon exercise of stock options | 2,502 | $ 0 | 2,502 | ||||
Stock-based compensation expense | 56,460 | 56,460 | |||||
Vesting of restricted stock units (in shares) | 2,277 | ||||||
Vesting of restricted stock units | 0 | $ 1 | (1) | ||||
Tax withholding on vesting of restricted stock | (1,501) | (1,501) | |||||
Issuance of restricted stock awards (in shares) | (33) | ||||||
Issuance of restricted stock | 0 | ||||||
Other comprehensive loss | 2,120 | 2,120 | |||||
Net loss | (66,018) | (66,018) | |||||
Ending balance (in shares) at Jul. 31, 2019 | 255,752 | ||||||
Ending balance at Jul. 31, 2019 | $ 737,539 | $ 26 | $ 1,982,407 | $ 3,409 | $ (1,248,303) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (166,354) | $ (124,427) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 43,591 | 33,590 |
Amortization of debt discount and debt issuance costs | 13,290 | 7,889 |
Stock-based compensation expense | 120,561 | 97,609 |
Other | 327 | 82 |
Changes in operating assets and liabilities, net of effects of acquisition: | ||
Accounts receivable, net | 26,553 | 707 |
Inventory | 6,852 | (8,900) |
Deferred commissions | (3,595) | (4,155) |
Prepaid expenses and other assets | (635) | 11,134 |
Operating lease right-of-use assets | 13,438 | 0 |
Accounts payable | (30,827) | (18,135) |
Accrued compensation and other liabilities | (25,704) | (7,458) |
Operating lease liabilities | (13,083) | 0 |
Deferred revenue | 71,045 | 39,144 |
Net cash provided by operating activities | 55,459 | 27,080 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property and equipment | (53,229) | (42,733) |
Acquisition, net of cash acquired | (47,881) | 0 |
Purchase of intangible assets | (9,000) | 0 |
Purchases of marketable securities | (488,497) | (494,507) |
Sales of marketable securities | 60,368 | 13,585 |
Maturities of marketable securities | 270,756 | 97,793 |
Net cash used in investing activities | (267,483) | (425,862) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net proceeds from exercise of stock options | 19,260 | 29,067 |
Proceeds from issuance of common stock under employee stock purchase plan | 32,042 | 19,698 |
Proceeds from issuance of convertible senior notes, net of issuance costs | 0 | 562,062 |
Payment for purchase of capped calls | 0 | (64,630) |
Repayment of debt assumed from acquisition | (11,555) | 0 |
Tax withholding on vesting of restricted stock | (7,173) | 0 |
Repurchase of common stock | 0 | (20,000) |
Net cash provided by financing activities | 32,574 | 526,197 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (179,450) | 127,415 |
Cash, cash equivalents and restricted cash, beginning of period | 463,813 | 258,820 |
Cash, cash equivalents and restricted cash, end of period | 284,363 | 386,235 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD: | ||
Cash, cash equivalents and restricted cash, end of period | 463,813 | 258,820 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash paid for income taxes | 2,716 | 3,023 |
Cash paid for interest | 359 | 0 |
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING INFORMATION | ||
Property and equipment purchased but not yet paid | 5,717 | 11,949 |
Vesting of early exercised stock options | $ 0 | $ 320 |
Business Overview
Business Overview | 6 Months Ended |
Jul. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Overview | Business Overview Organization and Description of Business Pure Storage, Inc. (the Company, we, us, or other similar pronouns) was originally incorporated in the state of Delaware in October 2009 under the name OS76, Inc. In January 2010, we changed our name to Pure Storage, Inc. We are headquartered in Mountain View, California and have wholly owned subsidiaries throughout the world. We help innovators to build a better world with data. Our innovative data platform replaces storage systems designed for mechanical disk with all-flash systems optimized for end-to-end for solid-state memory. Our cloud-based management and support platform helps predictively resolve potential issues and simplify storage administration. We provide a customer first business model that replaces the traditional forklift upgrade cycle with a subscription model built to keep customers on the cutting edge without downtime or performance impact. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jul. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Unaudited Interim Consolidated Financial Information The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) and applicable rules and regulations of the Securities and Exchange Commission (the SEC) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended January 31, 2019 . In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, comprehensive loss and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year 2020 or any future period. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and accompanying notes. Actual results could differ from these estimates. Such estimates include, but are not limited to, the determination of standalone selling price for revenue arrangements with multiple performance obligations, useful lives of intangible assets, property and equipment, the period of benefit for deferred contract costs for commissions, stock-based compensation, provision for income taxes including related reserves, valuation of intangible assets and goodwill, the incremental borrowing rate we use to determine our operating lease liabilities, and contingent liabilities. Management bases its estimates on historical experience and on various other assumptions which management believes to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Restricted Cash Restricted cash is comprised of cash collateral for letters of credit related to our leases and for a vendor credit card program. As of January 31, 2019 and July 31, 2019 , we had restricted cash of $15.8 million and $15.4 million . Marketable Securities We classify our marketable securities as available-for-sale at the time of purchase and reevaluate such classification at each balance sheet date. We may sell these securities at any time for use in current operations even if they have not yet reached maturity. As a result, we classify our securities, including those with maturities beyond twelve months, as current assets in the accompanying condensed consolidated balance sheets. We carry these securities at fair value and record unrealized gains and losses, in accumulated other comprehensive income (loss), which is reflected as a component of stockholders’ equity. We evaluate our securities to assess whether those with unrealized loss positions are other than temporarily impaired. We consider impairments to be other than temporary if they are related to deterioration in credit risk or if it is likely we will sell the securities before the recovery of their cost basis. Realized gains and losses from the sale of marketable securities and declines in value deemed to be other than temporary are determined on the specific identification method. To date, there have been no declines in value deemed to be other than temporary in any of our securities. Realized gains and losses are reported in other income (expense), net in the condensed consolidated statements of operations. Business Combinations We allocate the purchase price to the assets acquired and liabilities assumed based on their estimated fair values. The excess of the purchase price over the fair values of the assets acquired and liabilities assumed is recorded as goodwill. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the estimated fair value of the assets acquired and liabilities assumed, with the corresponding offset to goodwill. The results of operations of an acquired business is included in our condensed consolidated financial statements from the date of acquisition. Acquisition-related expenses are expensed as incurred. Deferred Commissions Deferred commissions consist of incremental costs paid to our sales force to obtain customer contracts. Deferred commissions related to product revenue are recognized upon transfer of control to customers and deferred commissions related to support subscription revenue are amortized over an expected useful life of six years. We determine the expected useful life based on an estimated benefit period by evaluating our technology development life cycle, expected customer relationship period and other factors. We classify deferred commissions as current and non-current on our condensed consolidated balance sheets based on the timing of when we expect to recognize the expense. Amortization of deferred commissions is included in sales and marketing expense in the condensed consolidated statements of operations. Changes in total deferred commissions during the periods presented are as follows (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2018 2019 2018 2019 Beginning balance (1) $ 86,044 $ 113,257 $ 87,313 $ 114,973 Additions 24,582 30,074 40,003 48,310 Recognition of deferred commissions (19,157 ) (24,763 ) (35,847 ) (44,715 ) Ending balance $ 91,469 $ 118,568 $ 91,469 $ 118,568 ____________________________________ (1) Balance as of January 31, 2018 was adjusted to reflect the adoption of ASC 606. Of the $118.6 million total deferred commissions balance as of July 31, 2019 , we expect to recognize approximately 26% as commission expense over the next 12 months and the remainder thereafter. There was no impairment related to capitalized commissions for the three and six months ended July 31, 2018 and 2019 . Operating Leases We determine if an arrangement contains a lease at inception. Lease liabilities are recognized at the present value of the future lease payments at commencement date. The interest rate implicit in our operating leases is not readily determinable, and therefore an incremental borrowing rate is estimated to determine the present value of future payments. The estimated incremental borrowing rate factors in a hypothetical interest rate on a collateralized basis with similar terms, payments, and economic environments. The operating lease right-of-use (ROU) asset is determined based on the lease liability initially established and reduced for any prepaid lease payments and any lease incentives. We combine lease and non-lease components for our leases. Certain of the operating lease agreements contain rent concession, rent escalation, and option to renew provisions. Rent concession and rent escalation provisions are considered in determining the straight-line lease cost to be recorded over the lease term. Lease cost is recognized on a straight-line basis over the lease term commencing on the date we have the right to use the leased property. We generally use the base, non-cancelable, lease term when recognizing the lease assets and liabilities, unless it is reasonably certain that an extension or termination option will be exercised. In addition, certain of our operating lease agreements contain tenant improvement allowances from our landlords. These allowances are accounted for as lease incentives and decrease our ROU asset and reduce single lease cost over the lease term. For short-term leases which have a lease term of less than twelve months and do not include an option to purchase the underlying asset that we are reasonably certain to exercise, we recognize rent expense in our condensed consolidated statements of operations on a straight-line basis over the lease term and record variable lease payments as incurred. Deferred Revenue Deferred revenue primarily consists of amounts that have been invoiced but that have not yet been recognized as revenue and performance obligations pertaining to support subscription services. The current portion of deferred revenue represents the amounts that are expected to be recognized as revenue within one year of the condensed consolidated balance sheet dates. Changes in total deferred revenue during the periods presented are as follows (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2018 2019 2018 2019 Beginning balance (1) $ 388,614 $ 564,230 $ 374,102 $ 535,920 Additions 92,511 140,548 167,782 258,441 Recognition of deferred revenue (67,878 ) (97,515 ) (128,637 ) (187,098 ) Ending balance $ 413,247 $ 607,263 $ 413,247 $ 607,263 ____________________________________ (1) Balance as of January 31, 2018 was adjusted to reflect the adoption of ASC 606. During the three and six months ended July 31, 2018 , we recognized $60.9 million and $106.2 million in revenue pertaining to deferred revenue as of the beginning of each period. During the three and six months ended July 31, 2019 , we recognized $88.2 million and $150.2 million in revenue pertaining to deferred revenue as of the beginning of each period. Total contracted but not recognized revenue was $770.1 million as of July 31, 2019 . Contracted but not recognized revenue consists of both deferred revenue and non-cancelable amounts that will be invoiced and recognized as revenue in future periods. Of the $770.1 million contracted but not recognized revenue as of July 31, 2019 , we expect to recognize approximately 41% over the next 12 months, and the remainder thereafter. Revenue Recognition We derive revenue from two sources: (1) product revenue which includes hardware and embedded software and (2) support subscription revenue which includes customer support, hardware maintenance, and software upgrades on a when-and-if-available basis. Support subscription revenue also includes our Evergreen Storage Service (ES2) offering. Our product revenue is derived from the sale of storage hardware and operating system software that is integrated into the hardware. We typically recognize product revenue upon transfer of control to our customers. Products are typically shipped directly by us to customers, and our channel partners do not stock our inventory. Our support subscription revenue is derived from the sale of support subscription, which includes the right to receive unspecified software upgrades and enhancements on a when-and-if-available basis, bug fixes, parts replacement services related to the hardware, as well as access to our cloud-based management and support platform. Support subscription revenue is also derived from the sale of our ES2 offering. Revenue related to support revenue is recognized ratably over the contractual term, which generally ranges from one to six years and represents our performance obligations period. The vast majority of our products are sold with support subscription agreements, which typically commence upon transfer of control of the corresponding products to our customers. Costs to service the support subscription are expensed as incurred. In addition, our Evergreen Storage program provides our customers who continually maintain active support subscription agreements for three years with an included controller refresh with each additional three year support subscription renewal. In accordance with revenue recognition guidance, the controller refresh represents an additional performance obligation and the allocated revenue is recognized in the period in which these controllers are shipped. We recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration we expect to be entitled in exchange for those goods or services. This is achieved through applying the following five-step approach: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, we satisfy a performance obligation When applying this five-step approach, we apply judgment in determining the customer's ability and intention to pay, which is based on a variety of factors including the customer's historical payment experience and/or published credit and financial information pertaining to the customer. To the extent a customer contract includes multiple promised goods or services, we determine whether promised goods or services are capable of being distinct in the context of the contract to be accounted for as a separate performance obligation. The transaction price is determined based on the consideration which we will be entitled to in exchange for transferring goods or services to the customer. We allocate transaction price to each performance obligation for contracts that contain multiple performance obligations based on a relative standalone selling price which is determined based on the price at which the performance obligation is sold separately, or if not observable through past transactions, is estimated taking into account available information such as market conditions and internally approved pricing guidelines related to performance obligations. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-02, Leases (ASC 842) and subsequent amendments to the initial guidance (collectively, Topic 842). ASC 842 requires lessees to generally recognize on its balance sheet operating and financing lease liabilities and corresponding ROU assets at the commencement date, and to recognize the associated lease expenses in the condensed consolidated statement of operations in a manner similar to that required under historical accounting rules. On February 1, 2019, we adopted ASC 842 using the modified retrospective approach by electing to use the optional transition method which allows us to continue to apply the guidance of ASC 840, including disclosure requirements, in the comparative periods presented. We elected the package of transition expedients, which allowed us to carry forward our historical lease classifications, our assessment of whether any existing leases as of the date of adoption are or contain leases, and our assessment of indirect costs for any leases that existed prior to adoption of the new standard. We elected to take the practical expedient to keep leases with an initial term of 12 months or less off the condensed consolidated balance sheet and recognize the associated lease payments in the consolidated statements of operations on a straight-line basis over the lease term. We recognized operating ROU assets of $124.5 million and lease liabilities of $130.6 million on our condensed consolidated balance sheet as of February 1, 2019, which included reclassifying prepaid rent and deferred rent as a component of the ROU asset. Topic 842 did not have a material impact on our condensed consolidated statements of operations and cash flows. Refer to Note 8 for additional disclosures. In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This standard allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 and requires certain disclosures about stranded tax effects. We adopted this standard on February 1, 2019 and the adoption had no impact on our condensed consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 amends guidance on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities to require that credit losses on available-for-sale debt securities be presented as an allowance rather than as a write-down. The measurement of credit losses for newly recognized financial assets and subsequent changes in the allowance for credit losses are recorded in the statements of operations. The amendments in this update will be effective for us beginning on February 1, 2020 with early adoption permitted on or after February 1, 2019. We are currently evaluating the impact of this standard on our condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13) which amended its conceptual framework to improve the effectiveness of disclosures in notes to financial statements. ASU 2018-13 eliminates such disclosures around the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy. The guidance also adds new disclosure requirements for Level 3 measurements. ASU 2018-13 is effective for us beginning February 1, 2020. Early adoption is permitted. We are currently evaluating the impact of this standard on our condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) - Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (ASU 2018-15). ASC 2018-15 aligns the requirements for capitalizing implementation costs in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This standard will be effective for us beginning February 1, 2020 and will be applied either retrospectively or prospectively. Early adoption is permitted. We are currently evaluating the impact of this standard on our condensed consolidated financial statements. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jul. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Financial Instruments | Financial Instruments Fair Value Measurements We measure our cash equivalents, marketable securities, and restricted cash at fair value on a recurring basis. We define fair value as the exchange price that would be received from sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We measure our financial assets and liabilities at fair value at each reporting period using a fair value hierarchy which requires us to 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 are unadjusted quoted prices in active markets for identical assets or liabilities; • Level 2 - Observable inputs are quoted prices for similar assets and liabilities in active markets or inputs other than quoted prices that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments; and • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. These inputs are based on our own assumptions used to measure assets and liabilities at fair value and require significant management judgment or estimation. We classify our cash equivalents, marketable securities and restricted cash within Level 1 or Level 2 because they are valued using either quoted market prices or inputs other than quoted prices which are directly or indirectly observable in the market, including readily-available pricing sources for the identical underlying security which may not be actively traded. Our fixed income available-for-sale securities consist of high quality, investment grade securities from diverse issuers. The valuation techniques used to measure the fair value of our marketable securities were derived from non-binding market consensus prices that are corroborated by observable market data or quoted market prices for similar instruments. In addition to our cash equivalents, marketable securities and restricted cash, we measure the fair value of our convertible senior notes (the Notes) on a quarterly basis for disclosure purposes. We consider the fair value of the Notes at July 31, 2019 to be a Level 2 measurement due to its limited trading activity. Refer to Note 6 for the carrying amount and estimated fair value of our Notes as of July 31, 2019 . Cash Equivalents, Marketable Securities and Restricted Cash The following tables summarize our cash equivalents, marketable securities and restricted cash by significant investment categories as of January 31, 2019 and July 31, 2019 (in thousands): As of January 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Marketable Securities Restricted Cash Level 1 Money market accounts $ — $ — $ — $ 43,038 $ 27,215 $ — $ 15,823 Level 2 U.S. government treasury notes 315,329 208 (315 ) 315,222 34,129 281,093 — U.S. government agencies 69,114 17 (154 ) 68,977 9,983 58,994 — Corporate debt securities 363,860 534 (757 ) 363,637 — 363,637 — Foreign government bonds 7,965 36 — 8,001 — 8,001 — Asset-backed securities 37,664 105 (12 ) 37,757 — 37,757 — Total $ 793,932 $ 900 $ (1,238 ) $ 836,632 $ 71,327 $ 749,482 $ 15,823 As of July 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Marketable Securities Restricted Cash Level 1 Money market accounts $ — $ — $ — $ 36,659 $ 21,234 $ — $ 15,425 Level 2 U.S. government treasury notes 348,463 1,454 (58 ) 349,859 — 349,859 — U.S. government agencies 66,153 222 (22 ) 66,353 — 66,353 — Corporate debt securities 427,362 2,685 (111 ) 429,936 1,029 428,907 — Foreign government bonds 8,480 100 — 8,580 — 8,580 — Asset-backed securities 59,504 329 (11 ) 59,822 — 59,822 — Total $ 909,962 $ 4,790 $ (202 ) $ 951,209 $ 22,263 $ 913,521 $ 15,425 The amortized cost and estimated fair value of our marketable securities are shown below by contractual maturity (in thousands): As of July 31, 2019 Amortized Cost Fair Value Due within one year $ 336,156 $ 336,736 Due in one to five years 572,777 576,785 Total $ 908,933 $ 913,521 Based on our evaluation of available evidence, we concluded that the gross unrealized losses on our investments as of July 31, 2019 were temporary in nature. The following table presents gross unrealized losses and fair values for those investments that were in a continuous unrealized loss position as of July 31, 2019 , aggregated by investment category (in thousands): Less than 12 months Greater than 12 months Total Fair Value Unrealized Loss Fair Unrealized Fair Unrealized U.S. government treasury notes $ 27,887 $ (30 ) $ 9,737 $ (28 ) $ 37,624 $ (58 ) U.S. government agencies 5,215 (7 ) 9,183 (15 ) 14,398 (22 ) Corporate debt securities 38,856 (28 ) 43,245 (83 ) 82,101 (111 ) Asset-backed securities 9,399 (11 ) — — 9,399 (11 ) Total $ 81,357 $ (76 ) $ 62,165 $ (126 ) $ 143,522 $ (202 ) Realized gains or losses on sale of marketable securities were not significant for all periods presented. |
Business Combination
Business Combination | 6 Months Ended |
Jul. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combination | Business Combination In April 2019, we acquired Compuverde AB (Compuverde), a privately-held developer of file software solutions for enterprises and cloud providers based in Sweden. Acquisition-related costs were $0.5 million and expensed as incurred. The purchase consideration was $47.9 million in cash (net of cash acquired) after repayment of $11.6 million of debt assumed. The purchase price was allocated as follows: $38.4 million in developed technology which will be amortized over seven years, $25.4 million of goodwill, $10.2 million in net liabilities assumed, and $5.7 million in deferred tax liability. The deferred tax liability was primarily a result of the difference in the book basis and tax basis related to the developed technology. Goodwill is primarily attributable to the assembled workforce and synergies from integrating Compuverde's technology with our data platform to expand our file capabilities and is not expected to be deductible for tax purposes. In addition, we will make payments to founders of Compuverde totaling $15.9 million in cash payable over a two-year period, subject to continuous employment. As a result, these contingent payments are considered post-acquisition consideration to be recognized over the two-year period as compensation. Restricted stock units in the amount of $3.0 million were issued to Compuverde employees in June 2019, subject to continuous employment and will be recognized as stock-based compensation over the related vesting period. The results of Compuverde are included in our condensed consolidated statements of operations since the acquisition date, including revenue and net loss, and are not material. Pro forma results of operations have not been presented because the acquisition is not material to our results of operations. |
Balance Sheet Components
Balance Sheet Components | 6 Months Ended |
Jul. 31, 2019 | |
Balance Sheet Components Disclosure [Abstract] | |
Balance Sheet Components | Balance Sheet Components Inventory Inventory consists of the following (in thousands): As of As of Raw materials $ 3,349 $ 2,623 Finished goods 41,338 33,197 Inventory $ 44,687 $ 35,820 Property and Equipment, Net Property and equipment, net consists of the following (in thousands): As of As of Test equipment $ 170,930 $ 191,846 Computer equipment and software 117,330 135,178 Furniture and fixtures 6,980 7,732 Leasehold improvements 34,286 37,866 Total property and equipment 329,526 372,622 Less: accumulated depreciation and amortization (204,173 ) (241,574 ) Property and equipment, net $ 125,353 $ 131,048 Depreciation and amortization expense was $16.8 million and $19.9 million for the three months ended July 31, 2018 and 2019 , and $32.8 million and $39.7 million for the six months ended July 31, 2018 and 2019 . Intangible Assets, Net Intangible assets, net consist of the following (in thousands): As of As of Gross Carrying Value Accumulated Amortization Net Carrying Amount Gross Carrying Value Accumulated Amortization Net Carrying Amount Technology patents $ 10,125 $ (6,572 ) $ 3,553 $ 19,125 $ (7,538 ) $ 11,587 Developed technology 17,700 (1,135 ) 16,565 56,100 (4,028 ) 52,072 Intangible assets, net $ 27,825 $ (7,707 ) $ 20,118 $ 75,225 $ (11,566 ) $ 63,659 Intangible assets amortization expense was $0.4 million and $2.6 million for the three months ended July 31, 2018 and 2019 , and $0.8 million and $3.9 million for the six months ended July 31, 2018 and 2019 . As of July 31, 2019 , the weighted-average remaining amortization period was 4.2 years for technology patents and 6.5 years for developed technology. Amortization of the technology patents is included in general and administrative expenses due to their defensive nature and amortization of developed technology is included in cost of product revenue in the condensed consolidated statements of operations. During the three months ended July 31, 2019 , we acquired a portfolio of technology patents for $9.0 million with a useful life of 7.0 years. As of July 31, 2019 , future expected amortization expense for intangible assets is as follows (in thousands): Fiscal Years Ending January 31, Estimated Future Amortization Expense Remainder of 2020 $ 5,402 2021 10,804 2022 9,846 2023 9,300 2024 9,300 Thereafter 19,007 Total $ 63,659 Goodwill The change in the carrying amount of goodwill is as follows (in thousands): Amount Balance as of January 31, 2019 $ 10,997 Goodwill acquired 25,423 Balance as of July 31, 2019 $ 36,420 Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consist of the following (in thousands): As of As of Taxes payable $ 7,146 $ 4,967 Accrued marketing 6,173 11,005 Accrued travel and entertainment expenses 3,570 3,055 Acquisition consideration held back 3,725 3,725 Other accrued liabilities 19,246 21,938 Total accrued expenses and other liabilities $ 39,860 $ 44,690 |
Convertible Senior Notes
Convertible Senior Notes | 6 Months Ended |
Jul. 31, 2019 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes | Convertible Senior Notes In April 2018, we issued $575.0 million in principal amount of 0.125% convertible senior notes due 2023, in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act and received proceeds of $562.1 million , after deducting the underwriters’ discounts and commissions. The Notes are governed by an indenture (the Indenture) between us, as the issuer, and U.S. Bank National Association, as trustee. The Notes are our senior unsecured obligations. The Indenture does not contain any financial covenants or restrictions on the payments of dividends, the incurrence of indebtedness, or the issuance or repurchase of securities by us or any of our subsidiaries. The Notes mature on April 15, 2023 unless repurchased or redeemed by us or converted in accordance with their terms prior to the maturity date. Interest is payable semi-annually in arrears on April 15 and October 15 of each year, beginning on October 15, 2018. The Notes are convertible for up to 21,884,155 shares of our common stock at an initial conversion rate of approximately 38.0594 shares of Class A common stock per $1,000 principal amount, which is equal to an initial conversion price of approximately $26.27 per share of Class A common stock, subject to adjustment. Holders of the Notes may surrender their Notes for conversion at their option at any time prior to the close of business on the business day immediately preceding October 15, 2022, only under the following circumstances: • during any fiscal quarter commencing after the fiscal quarter ended on July 31, 2018 (and only during such fiscal quarter), if the last reported sale price of our Class A common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price for the Notes on each applicable trading day; • during the five business day period after any five consecutive trading day period (the measurement period), in which the trading price per $1,000 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our Class A common stock and the conversion rate for the Notes on each such trading day; • if we call any or all of the Notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or • upon the occurrence of specified corporate events. On or after October 15, 2022 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their Notes at any time regardless of the foregoing circumstances. Upon conversion, holders will receive cash, shares of our Class A common stock, or a combination of cash and shares of our Class A common stock, at our election. We intend to settle the principal of the Notes in cash. The conversion price will be subject to adjustment in some events. Following certain corporate events that occur prior to the maturity date or following our issuance of a notice of redemption, we will increase the conversion rate for a holder who elects to convert its Notes in connection with such corporate event or during the related redemption period in certain circumstances. Additionally, upon the occurrence of a corporate event that constitutes a “fundamental change” per the Indenture, holders of the Notes may require us to repurchase for cash all or a portion of the Notes at a purchase price equal to 100% of the principal amount of the Notes plus accrued and unpaid contingent interest. We may not redeem the Notes prior to April 20, 2021. We may redeem for cash all or any portion of the Notes, at our option, on or after April 20, 2021 if the last reported sale price of our Class A common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending not more than two trading days immediately preceding the date on which we provide notice of redemption at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the Notes. In accounting for the issuance of the Notes, we separated the Notes into liability and equity components. The carrying amount of the liability component was determined by measuring the fair value of a similar liability that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was calculated by deducting the fair value of the liability component from the principal amount of the Notes as a whole. The difference between the principal amount of the Notes and the liability component (the debt discount) is amortized to interest expense in the condensed consolidated statements of operations using the effective interest method over the term of the Notes. The equity component of the Notes is included in additional paid-in capital in the condensed consolidated balance sheets and is not remeasured as long as it continues to meet the conditions for equity classification. In accounting for the transaction costs related to the issuance of the Notes, we allocated the total amount incurred to the liability and equity components using the same proportions as the initial carrying value of the Notes. Transaction costs attributable to the liability component were netted with the principal amount of the Notes in the condensed consolidated balance sheets and are being amortized to interest expense in the condensed consolidated statements of operations using the effective interest method over the term of the Notes. Transaction costs attributable to the equity component were netted with the equity component of the Notes in additional paid-in capital in the condensed consolidated balance sheets. Upon the issuance of the Notes, we recorded total debt issuance costs of $12.9 million , of which $9.8 million was allocated to the Notes and $3.1 million was allocated to additional paid-in capital. The Notes consisted of the following (in thousands): As of Liability: Principal $ 575,000 Less: debt discount, net of amortization (104,329 ) Less: debt issuance costs, net of amortization (7,553 ) Net carrying amount of the Notes $ 463,118 Stockholders' equity: Allocated value of the conversion feature $ 136,333 Less: debt issuance costs (3,068 ) Additional paid-in capital $ 133,265 The total estimated fair value of the Notes as of July 31, 2019 was $558.7 million . The fair value was determined based on the closing trading price per $100 of the Notes as of the last day of trading for the period. The fair value of the Notes is primarily affected by the trading price of our common stock and market interest rates. Based on the closing price of our Class A common stock of $15.14 on July 31, 2019 , the if-converted value of the Notes of $331.3 million was less than its principal amount. The following table sets forth total interest expense recognized related to the Notes for three and six months ended July 31, 2018 and 2019 (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2018 2019 2018 2019 Amortization of debt discount $ 6,000 $ 6,341 $ 7,357 $ 12,393 Amortization of debt issuance costs 434 459 532 897 Total amortization of debt discount and debt issuance costs 6,434 6,800 7,889 13,290 Contractual interest expense 181 181 224 358 Total interest expense related to the Notes $ 6,615 $ 6,981 $ 8,113 $ 13,648 Effective interest rate of the liability component 5.6 % 5.6 % 5.6 % 5.6 % In connection with the offering of the Notes, we paid $64.6 million to enter into capped call transactions with certain of the underwriters and their affiliates (the Capped Calls), whereby we have the option to purchase a total of 21,884,155 shares of our Class A common stock upon any conversion of Notes and/or offset any cash payments we are required to make in excess of the principal amount of the Notes, as the case may be, with such reduction or offset subject to a cap initially equal to $39.66 per share (which represents a premium of 100% over the last reported sales price of our Class A common stock on April 4, 2018), subject to certain adjustments (the Cap Price). The cost of the Capped Calls was accounted for as a reduction to additional paid-in capital on the condensed consolidated balance sheet. The Capped Calls are intended to reduce or offset potential dilution of our common stock upon any conversion of the Notes, subject to a cap based on the Cap Price. Impact on Earnings Per Share The Notes will not impact our diluted earnings per share until the average market price of our Class A common stock exceeds the conversion price of $26.27 per share, as we intend to settle the principal amount of the Notes in cash upon conversion. We are required under the treasury stock method to compute the potentially dilutive shares of common stock related to the Notes for periods we report net income. However, upon conversion, there will be no economic dilution from the Notes until the average market price of our Class A common stock exceeds the Cap Price of $39.66 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases As of July 31, 2019 , we have various non-cancelable operating lease commitments for office facilities which as a result of the adoption of ASC 842, have been recorded as operating lease liabilities on our condensed consolidated balance sheet. Refer to Note 8—Leases for additional information regarding lease commitments. Convertible Notes The repayment of our Notes with an aggregate principal amount of $575.0 million is due on April 15, 2023. Refer to Note 6 for further information regarding our Notes. Letters of Credit In connection with a lease executed in January 2019, we issued a letter of credit of $0.5 million . As of January 31, 2019 and July 31, 2019 , we had outstanding letters of credit in the aggregate amount of $10.8 million and $11.6 million , in connection with our facility leases. The letters of credit are collateralized by restricted cash and mature on various dates through August 2029 . Legal Matters From time to time, we have become involved in claims and other legal matters arising in the normal course of business. We investigate these claims as they arise. Although claims are inherently unpredictable, we currently are not aware of any matters that we expect to have a material adverse effect on our business, financial position, results of operations or cash flows. Accordingly, we have not recorded any loss contingency on our condensed consolidated balance sheet as of July 31, 2019 . Indemnification Our arrangements generally include certain provisions for indemnifying customers against liabilities if our products or services infringe a third party’s intellectual property rights. Other guarantees or indemnification arrangements include guarantees of product and service performance and standby letters of credit for lease facilities. It is not possible to determine the maximum potential amount under these indemnification obligations due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. To date, we have not incurred any material costs as a result of such obligations and have not accrued any liabilities related to such obligations in the condensed consolidated financial statements. In addition, we indemnify our officers, directors and certain key employees while they are serving in good faith in their respective capacities. To date, there have been no claims under any indemnification provisions. |
Leases
Leases | 6 Months Ended |
Jul. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases We lease office facilities under non-cancelable operating lease agreements expiring through October 2028. Our lease agreements do not contain any material residual value guarantees or restrictive covenants. The components of lease costs were as follows (in thousands): Three Months Ended Six Months Ended July 31, 2019 July 31, 2019 Fixed operating lease cost $ 8,228 $ 16,711 Variable lease cost (1) 2,242 4,342 Short-term lease cost (12 months or less) 1,484 2,345 Total lease cost $ 11,954 $ 23,398 —————————— (1) Variable lease cost for the three and six months ended July 31, 2019 predominantly includes common area maintenance charges. Future lease payments under our non-cancelable operating leases as of July 31, 2019 were as follows (in thousands): Fiscal Years Ending January 31, Operating Leases The remainder of 2020 $ 16,579 2021 33,269 2022 26,781 2023 21,478 2024 15,434 Thereafter 31,236 Total future lease payments 144,777 Less: imputed interest (23,831 ) Present value of lease liabilities $ 120,946 Supplemental cash flow information related to our operating leases for the six months ended July 31, 2019 as well as the weighted-average remaining lease term and weighted-average discount rate as of July 31, 2019 were as follows: Cash paid for amounts included in the measurement of lease liabilities (in thousands) $ 16,167 Operating lease right-of-use assets obtained in exchange for operating lease liabilities $ 3,449 Weighted-average remaining lease term (years) 5.28 Weighted-average discount rate 6.46 % As previously disclosed in our Annual Report on Form 10-K for the year ended January 31, 2019 and under the previous lease accounting standard, ASC 840, Leases , the following table summarizes the future minimum lease payments due under operating leases as of January 31, 2019 (in thousands): Year Ending January 31, Operating Leases 2020 $ 31,297 2021 28,573 2022 24,381 2023 20,440 2024 14,780 Thereafter 30,096 Total $ 149,567 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jul. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Preferred Stock We have 20,000,000 authorized shares of undesignated preferred stock, the rights, preferences and privileges of which may be designated from time to time by our board of directors. As of July 31, 2019 , there were no shares of preferred stock issued or outstanding. Class A and Class B Common Stock We have two classes of authorized common stock, Class A common stock and Class B common stock. As of July 31, 2019 , we had 2,000,000,000 authorized shares of Class A common stock and 250,000,000 authorized shares of Class B common stock, with each class having a par value of $0.0001 per share. As of July 31, 2019 , 255,751,711 shares of Class A common stock were issued and outstanding. Common Stock Repurchase Program In August 2019, our board of directors approved the repurchase of up to $150.0 million of our Class A common stock. The authorization allows us to repurchase shares of our Class A common stock opportunistically and will be funded from available working capital. Repurchases may be made at management’s discretion from time to time on the open market through privately negotiated transactions, transactions structured through investment banking institutions, block purchase techniques, 10b5-1 trading plans, or a combination of the foregoing. The repurchase program does not obligate us to acquire any of our common stock, has no end date, and may be suspended or discontinued by us at any time without prior notice. Repurchase of Common Stock Concurrent with the issuance of the Notes (see Note 6), we repurchased and retired 1,008,573 shares, or $20.0 million , of our Class A common stock at $19.83 per share, which was equal to the closing price per share of our Class A common stock on April 4, 2018, the date of the pricing of the offering of the Notes. The repurchased shares were recorded as a reduction of additional paid-in capital on the condensed consolidated balance sheet. |
Equity Incentive Plans
Equity Incentive Plans | 6 Months Ended |
Jul. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Equity Incentive Plans | Equity Incentive Plans Equity Incentive Plans We maintain two equity incentive plans: the 2009 Equity Incentive Plan (the 2009 Plan) and the 2015 Equity Incentive Plan (the 2015 Plan). The 2015 Plan became effective in connection with our initial public offering (IPO) in October 2015 and serves as the successor to our 2009 Plan. The 2015 Plan provides for grants of incentive stock options to our employees and non-statutory stock options, stock appreciation rights, restricted stock, restricted stock unit awards (RSUs), performance stock awards, performance cash awards, and other forms of stock awards to our employees, directors and consultants. No new awards have been issued under our 2009 Plan after the effective date of our 2015 Plan. Outstanding awards granted under our 2009 Plan will remain subject to the terms of our 2009 Plan and applicable award agreements, until such outstanding awards that are stock options are exercised, terminated or expired by their terms. Starting in December 2018, we net-share settle equity awards held by certain employees by withholding shares upon vesting to satisfy tax withholding obligations. The shares withheld to satisfy employee tax withholding obligations are returned to our 2015 Plan and will be available for future issuance. Payments for employees’ tax obligations to the tax authorities are recognized as a reduction to additional paid-in capital and reflected as a financing activity in our condensed consolidated statements of cash flows. The exercise price of stock options will generally not be less than 100% of the fair market value of our common stock on the date of grant, as determined by our board of directors. Our equity awards generally vest over a two to four year period and expire no later than ten years from the date of grant. 2015 Employee Stock Purchase Plan Our 2015 Employee Stock Purchase Plan (2015 ESPP) became effective in connection with our IPO. The 2015 ESPP allows eligible employees to purchase shares of our Class A common stock at a discount through payroll deductions of up to 30% of their eligible compensation, subject to a cap of 3,000 shares on any purchase date or $25,000 in any calendar year (as determined under applicable tax rules). In February 2019, we amended the ESPP on a prospective basis, to include an additional dollar cap of $7,500 per purchase period. The 2015 ESPP provides for a 24 -month offering period beginning March 16th and September 16th of each year, and each offering period consists of four 6 months purchase periods, subject to a reset provision. If the closing stock price on the offering date of a new offering falls below the closing stock price on the offering date of an ongoing offering, the ongoing offering would terminate immediately following the purchase of ESPP shares on the purchase date immediately preceding the new offering and participants in the terminated ongoing offering would automatically be enrolled in the new offering (ESPP reset), resulting in a modification. On each purchase date, eligible employees will purchase our Class A common stock at a price per share equal to 85% of the lesser of the fair market value of our Class A common stock (1) on the first trading day of the applicable offering period or (2) the purchase date. There was an ESPP reset in the three months ended April 30, 2019 that resulted in a total modification charge of $2.2 million , which is recognized over the new offering period ending March 15, 2021. We recognized stock-based compensation expense related to our 2015 ESPP of $7.9 million and $4.2 million during the three months ended July 31, 2018 and 2019 and $14.6 million and $15.7 million during the six months ended July 31, 2018 and 2019 . As of July 31, 2019 , there was $19.4 million of unrecognized stock-based compensation expense related to our 2015 ESPP, which is expected to be recognized over a weighted-average period of 1.5 years. Stock Options A summary of stock option activity under our equity incentive plans and related information is as follows: Options Outstanding Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value (in thousands) Balance as of January 31, 2019 35,465,543 $ 8.34 5.4 $ 339,591 Options exercised (3,862,965 ) 4.99 Options forfeited/canceled (343,662 ) 15.49 Balance as of July 31, 2019 31,258,916 $ 8.67 3.9 $ 218,450 Vested and exercisable as of July 31, 2019 25,407,263 $ 7.54 4.8 $ 203,215 The aggregate intrinsic value of options vested and exercisable as of July 31, 2019 is calculated based on the difference between the exercise price and the closing price of $15.14 of our Class A common stock on July 31, 2019 . As of July 31, 2019 , total unrecognized employee compensation cost related to outstanding options was $20.6 million , which is expected to be recognized over a weighted-average period of 1.6 years. RSUs A summary of the RSU activity under our 2015 Plan and related information is as follows: Number of RSUs Outstanding Weighted- Average Grant Date Fair Value Aggregate Unvested balance as of January 31, 2019 21,917,550 $ 17.94 $ 392,515 Granted 8,792,982 19.81 Vested (4,352,885 ) 16.38 Forfeited (1,324,694 ) 18.47 Unvested balance as of July 31, 2019 25,032,953 $ 18.84 $ 378,999 During the three months ended July 31, 2018 and 2019 , we recognized, $29.5 million and $40.4 million in stock-based compensation expense relating to RSUs. During the six months ended July 31, 2018 and 2019 , we recognized $55.9 million and $77.7 million in stock-based compensation expense relating to RSUs. As of July 31, 2019 , total unrecognized employee compensation cost related to unvested RSUs was $427.8 million , which is expected to be recognized over a weighted-average period of 3.0 years. Restricted Stock In January 2019, we issued 183,902 shares of performance restricted stock, at a target percentage of 100% , with both performance and service vesting conditions payable in common shares, from 0% to 160% , of the target number granted, contingent upon the degree to which the performance condition is met. The grant date for these shares was subsequently established when the performance condition was determined in March 2019. Any portion of shares that are not earned will be canceled. During the three and six months ended July 31, 2019 , we issued 60,716 and 1,291,194 shares of performance restricted stock, at a target percentage of 100% , with both performance and service vesting conditions payable in common shares, from 0% to 160% , of the target number granted, contingent upon the degree to which the performance condition is met. Any portion of shares that are not earned will be canceled. During the six months ended July 31, 2019 , we also issued 108,494 shares of additional restricted stock earned based on the actual attainment of previously issued performance restricted stock awards. A summary of the restricted stock activity under our 2015 Plan and related information is as follows: Number of Restricted Stock Outstanding Weighted- Average Grant Date Fair Value Aggregate Unvested balance as of January 31, 2019 2,267,569 $ 18.70 $ 40,612 Granted 1,399,688 20.30 Vested (843,321 ) 19.85 Unvested balance as of July 31, 2019 2,823,936 $ 19.25 $ 42,754 All unvested restricted shares are subject to cancellation to the extent vesting conditions are not met. During the three months ended July 31, 2018 and 2019 , we recognized $6.7 million and $7.4 million in stock-based compensation expense relating to restricted stock. During the six months ended July 31, 2018 and 2019 , we recognized $10.2 million and $14.8 million in stock-based compensation expense relating to restricted stock. As of July 31, 2019 , total unrecognized employee compensation cost related to unvested restricted stock was $30.6 million , which is expected to be recognized over a weighted-average period of 2.3 years. Stock-Based Compensation Expense The following table summarizes the components of stock-based compensation expense recognized in the condensed consolidated statements of operations (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2018 2019 2018 2019 Cost of revenue—product $ 720 $ 954 $ 1,328 $ 1,931 Cost of revenue—support subscription 2,929 3,633 5,613 7,584 Research and development 22,232 29,108 43,322 57,353 Sales and marketing 17,269 16,055 31,209 34,369 General and administrative 10,504 8,654 16,137 19,324 Total stock-based compensation expense $ 53,654 $ 58,404 $ 97,609 $ 120,561 The tax benefit related to stock-based compensation expense for all periods presented was not material. |
Net Loss per Share Attributable
Net Loss per Share Attributable to Common Stockholders | 6 Months Ended |
Jul. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss per Share Attributable to Common Stockholders | Net Loss per Share Attributable to Common Stockholders Basic and diluted net loss per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities. Basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, less shares subject to repurchase. Diluted net loss per share attributable to common stockholders is computed by giving effect to all potentially dilutive common stock equivalents, including our outstanding stock options, common stock related to unvested RSUs, repurchasable shares from early exercised stock options and restricted stock, our Notes to the extent dilutive, and common stock issuable pursuant to the ESPP. These potentially dilutive common stock equivalents have been excluded from the calculation of diluted net loss per share attributable to common stockholders as their effect is anti-dilutive. The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except per share data): Three Months Ended July 31, Six Months Ended July 31, 2018 2019 2018 2019 Net loss $ (60,123 ) $ (66,018 ) $ (124,427 ) $ (166,354 ) Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 229,359 251,298 226,609 248,366 Net loss per share attributable to common stockholders, basic and diluted $ (0.26 ) $ (0.26 ) $ (0.55 ) $ (0.67 ) The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2018 2019 2018 2019 Stock options to purchase common stock 40,920 31,739 42,923 32,852 Unvested RSUs 19,957 25,513 19,486 24,743 Restricted stock and early exercised stock options subject to repurchase 3,327 2,917 2,585 2,777 Shares related to Notes 21,884 21,884 13,783 21,884 Shares issuable pursuant to ESPP 1,154 720 1,127 720 Total 87,242 82,773 79,904 82,976 |
Other Income (Expense), Net
Other Income (Expense), Net | 6 Months Ended |
Jul. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Other Income (Expense), Net Other income (expense), net consists of the following (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2018 2019 2018 2019 Interest income (1) $ 4,783 $ 6,772 $ 6,654 $ 13,606 Interest expense (2) (6,615 ) (6,981 ) (8,113 ) (13,648 ) Foreign currency transactions losses (2,273 ) (443 ) (4,407 ) (2,426 ) Other income 73 — 835 — Total other income (expense), net $ (4,032 ) $ (652 ) $ (5,031 ) $ (2,468 ) ____________________________________ (1) Interest income includes interest income related to our cash, cash equivalents and marketable securities and non-cash interest income related to accretion (amortization) of the discount (premium) on marketable securities. (2) Interest expense includes non-cash interest expense related to amortization of the debt discount and debt issuance costs and the contractual interest expense related to the Notes for the three and six months ended July 31, 2018 and 2019 . |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our income tax provision was primarily due to taxes on international operations and state income taxes. The difference between the income tax provision that would be derived by applying the statutory rate to our loss before income taxes and the income tax provision recorded was primarily attributable to changes in our valuation allowance, non-deductible stock-based compensation expense and the tax rate differential between the U.S. and foreign countries. As of July 31, 2019 , there were no material changes to either the nature or the amounts of the uncertain tax positions previously determined for the year ended January 31, 2019 . |
Segment Information
Segment Information | 6 Months Ended |
Jul. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our chief operating decision maker is a group comprised of our Chief Executive Officer, our Chief Financial Officer, and our President. This group reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. We have one business activity and there are no segment managers who are held accountable for operations or operating results. Accordingly, we have a single reportable segment. Disaggregation of Revenue The following table depicts the disaggregation of revenue by geographic area based on the billing address of our customers and is consistent with how we evaluate our financial performance (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2018 2019 2018 2019 United States $ 229,760 $ 294,596 $ 414,678 $ 523,535 Rest of the world 79,124 101,731 150,151 199,492 Total revenue $ 308,884 $ 396,327 $ 564,829 $ 723,027 Long-lived Assets by Geographic Area Long-lived assets, which are comprised of property and equipment, net, by geographic area are summarized as follows (in thousands): As of As of United States $ 120,876 $ 121,454 Rest of the world 4,477 9,594 Total long-lived assets $ 125,353 $ 131,048 |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jul. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent events Share Repurchase Program In August 2019, our board of directors approved a share repurchase program. All material terms of this program are disclosed in Note 9 Stockholders’ Equity. Departure of Officer In August 2019, we announced that Timothy Riitters, our Chief Financial Officer, will be departing later this year. Mr. Riitters' departure is not related to any issues regarding the integrity of our financial statements, accounting policies and practices. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies - (Policies) | 6 Months Ended |
Jul. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Unaudited Interim Consolidated Financial Information | Unaudited Interim Consolidated Financial Information The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) and applicable rules and regulations of the Securities and Exchange Commission (the SEC) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended January 31, 2019 . In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, comprehensive loss and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year 2020 or any future period. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and accompanying notes. Actual results could differ from these estimates. Such estimates include, but are not limited to, the determination of standalone selling price for revenue arrangements with multiple performance obligations, useful lives of intangible assets, property and equipment, the period of benefit for deferred contract costs for commissions, stock-based compensation, provision for income taxes including related reserves, valuation of intangible assets and goodwill, the incremental borrowing rate we use to determine our operating lease liabilities, and contingent liabilities. Management bases its estimates on historical experience and on various other assumptions which management believes to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. |
Restricted Cash | Restricted Cash |
Marketable Securities | Marketable Securities We classify our marketable securities as available-for-sale at the time of purchase and reevaluate such classification at each balance sheet date. We may sell these securities at any time for use in current operations even if they have not yet reached maturity. As a result, we classify our securities, including those with maturities beyond twelve months, as current assets in the accompanying condensed consolidated balance sheets. We carry these securities at fair value and record unrealized gains and losses, in accumulated other comprehensive income (loss), which is reflected as a component of stockholders’ equity. We evaluate our securities to assess whether those with unrealized loss positions are other than temporarily impaired. We consider impairments to be other than temporary if they are related to deterioration in credit risk or if it is likely we will sell the securities before the recovery of their cost basis. Realized gains and losses from the sale of marketable securities and declines in value deemed to be other than temporary are determined on the specific identification method. To date, there have been no declines in value deemed to be other than temporary in any of our securities. Realized gains and losses are reported in other income (expense), net in the condensed consolidated statements of operations. |
Business Combination | Business Combinations We allocate the purchase price to the assets acquired and liabilities assumed based on their estimated fair values. The excess of the purchase price over the fair values of the assets acquired and liabilities assumed is recorded as goodwill. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the estimated fair value of the assets acquired and liabilities assumed, with the corresponding offset to goodwill. The results of operations of an acquired business is included in our condensed consolidated financial statements from the date of acquisition. Acquisition-related expenses are expensed as incurred. |
Deferred Commissions | Deferred Commissions Deferred commissions consist of incremental costs paid to our sales force to obtain customer contracts. Deferred commissions related to product revenue are recognized upon transfer of control to customers and deferred commissions related to support subscription revenue are amortized over an expected useful life of six years. We determine the expected useful life based on an estimated benefit period by evaluating our technology development life cycle, expected customer relationship period and other factors. We classify deferred commissions as current and non-current on our condensed consolidated balance sheets based on the timing of when we expect to recognize the expense. Amortization of deferred commissions is included in sales and marketing expense in the condensed consolidated statements of operations. |
Operating Leases | Operating Leases We determine if an arrangement contains a lease at inception. Lease liabilities are recognized at the present value of the future lease payments at commencement date. The interest rate implicit in our operating leases is not readily determinable, and therefore an incremental borrowing rate is estimated to determine the present value of future payments. The estimated incremental borrowing rate factors in a hypothetical interest rate on a collateralized basis with similar terms, payments, and economic environments. The operating lease right-of-use (ROU) asset is determined based on the lease liability initially established and reduced for any prepaid lease payments and any lease incentives. We combine lease and non-lease components for our leases. Certain of the operating lease agreements contain rent concession, rent escalation, and option to renew provisions. Rent concession and rent escalation provisions are considered in determining the straight-line lease cost to be recorded over the lease term. Lease cost is recognized on a straight-line basis over the lease term commencing on the date we have the right to use the leased property. We generally use the base, non-cancelable, lease term when recognizing the lease assets and liabilities, unless it is reasonably certain that an extension or termination option will be exercised. In addition, certain of our operating lease agreements contain tenant improvement allowances from our landlords. These allowances are accounted for as lease incentives and decrease our ROU asset and reduce single lease cost over the lease term. For short-term leases which have a lease term of less than twelve months and do not include an option to purchase the underlying asset that we are reasonably certain to exercise, we recognize rent expense in our condensed consolidated statements of operations on a straight-line basis over the lease term and record variable lease payments as incurred. |
Revenue Recognition | Revenue Recognition We derive revenue from two sources: (1) product revenue which includes hardware and embedded software and (2) support subscription revenue which includes customer support, hardware maintenance, and software upgrades on a when-and-if-available basis. Support subscription revenue also includes our Evergreen Storage Service (ES2) offering. Our product revenue is derived from the sale of storage hardware and operating system software that is integrated into the hardware. We typically recognize product revenue upon transfer of control to our customers. Products are typically shipped directly by us to customers, and our channel partners do not stock our inventory. Our support subscription revenue is derived from the sale of support subscription, which includes the right to receive unspecified software upgrades and enhancements on a when-and-if-available basis, bug fixes, parts replacement services related to the hardware, as well as access to our cloud-based management and support platform. Support subscription revenue is also derived from the sale of our ES2 offering. Revenue related to support revenue is recognized ratably over the contractual term, which generally ranges from one to six years and represents our performance obligations period. The vast majority of our products are sold with support subscription agreements, which typically commence upon transfer of control of the corresponding products to our customers. Costs to service the support subscription are expensed as incurred. In addition, our Evergreen Storage program provides our customers who continually maintain active support subscription agreements for three years with an included controller refresh with each additional three year support subscription renewal. In accordance with revenue recognition guidance, the controller refresh represents an additional performance obligation and the allocated revenue is recognized in the period in which these controllers are shipped. We recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration we expect to be entitled in exchange for those goods or services. This is achieved through applying the following five-step approach: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, we satisfy a performance obligation When applying this five-step approach, we apply judgment in determining the customer's ability and intention to pay, which is based on a variety of factors including the customer's historical payment experience and/or published credit and financial information pertaining to the customer. To the extent a customer contract includes multiple promised goods or services, we determine whether promised goods or services are capable of being distinct in the context of the contract to be accounted for as a separate performance obligation. The transaction price is determined based on the consideration which we will be entitled to in exchange for transferring goods or services to the customer. We allocate transaction price to each performance obligation for contracts that contain multiple performance obligations based on a relative standalone selling price which is determined based on the price at which the performance obligation is sold separately, or if not observable through past transactions, is estimated taking into account available information such as market conditions and internally approved pricing guidelines related to performance obligations. Deferred Revenue Deferred revenue primarily consists of amounts that have been invoiced but that have not yet been recognized as revenue and performance obligations pertaining to support subscription services. The current portion of deferred revenue represents the amounts that are expected to be recognized as revenue within one year of the condensed consolidated balance sheet dates. |
Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-02, Leases (ASC 842) and subsequent amendments to the initial guidance (collectively, Topic 842). ASC 842 requires lessees to generally recognize on its balance sheet operating and financing lease liabilities and corresponding ROU assets at the commencement date, and to recognize the associated lease expenses in the condensed consolidated statement of operations in a manner similar to that required under historical accounting rules. On February 1, 2019, we adopted ASC 842 using the modified retrospective approach by electing to use the optional transition method which allows us to continue to apply the guidance of ASC 840, including disclosure requirements, in the comparative periods presented. We elected the package of transition expedients, which allowed us to carry forward our historical lease classifications, our assessment of whether any existing leases as of the date of adoption are or contain leases, and our assessment of indirect costs for any leases that existed prior to adoption of the new standard. We elected to take the practical expedient to keep leases with an initial term of 12 months or less off the condensed consolidated balance sheet and recognize the associated lease payments in the consolidated statements of operations on a straight-line basis over the lease term. We recognized operating ROU assets of $124.5 million and lease liabilities of $130.6 million on our condensed consolidated balance sheet as of February 1, 2019, which included reclassifying prepaid rent and deferred rent as a component of the ROU asset. Topic 842 did not have a material impact on our condensed consolidated statements of operations and cash flows. Refer to Note 8 for additional disclosures. In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This standard allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 and requires certain disclosures about stranded tax effects. We adopted this standard on February 1, 2019 and the adoption had no impact on our condensed consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 amends guidance on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities to require that credit losses on available-for-sale debt securities be presented as an allowance rather than as a write-down. The measurement of credit losses for newly recognized financial assets and subsequent changes in the allowance for credit losses are recorded in the statements of operations. The amendments in this update will be effective for us beginning on February 1, 2020 with early adoption permitted on or after February 1, 2019. We are currently evaluating the impact of this standard on our condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13) which amended its conceptual framework to improve the effectiveness of disclosures in notes to financial statements. ASU 2018-13 eliminates such disclosures around the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy. The guidance also adds new disclosure requirements for Level 3 measurements. ASU 2018-13 is effective for us beginning February 1, 2020. Early adoption is permitted. We are currently evaluating the impact of this standard on our condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) - Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (ASU 2018-15). ASC 2018-15 aligns the requirements for capitalizing implementation costs in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This standard will be effective for us beginning February 1, 2020 and will be applied either retrospectively or prospectively. Early adoption is permitted. We are currently evaluating the impact of this standard on our condensed consolidated financial statements. |
Fair Value Measurements | Fair Value Measurements We measure our cash equivalents, marketable securities, and restricted cash at fair value on a recurring basis. We define fair value as the exchange price that would be received from sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We measure our financial assets and liabilities at fair value at each reporting period using a fair value hierarchy which requires us to 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 are unadjusted quoted prices in active markets for identical assets or liabilities; • Level 2 - Observable inputs are quoted prices for similar assets and liabilities in active markets or inputs other than quoted prices that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments; and • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. These inputs are based on our own assumptions used to measure assets and liabilities at fair value and require significant management judgment or estimation. We classify our cash equivalents, marketable securities and restricted cash within Level 1 or Level 2 because they are valued using either quoted market prices or inputs other than quoted prices which are directly or indirectly observable in the market, including readily-available pricing sources for the identical underlying security which may not be actively traded. Our fixed income available-for-sale securities consist of high quality, investment grade securities from diverse issuers. The valuation techniques used to measure the fair value of our marketable securities were derived from non-binding market consensus prices that are corroborated by observable market data or quoted market prices for similar instruments. In addition to our cash equivalents, marketable securities and restricted cash, we measure the fair value of our convertible senior notes (the Notes) on a quarterly basis for disclosure purposes. We consider the fair value of the Notes at July 31, 2019 to be a Level 2 measurement due to its limited trading activity. Refer to Note 6 for the carrying amount and estimated fair value of our Notes as of July 31, 2019 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies - (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Accounting Policies [Abstract] | |
Deferred Commissions | Changes in total deferred commissions during the periods presented are as follows (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2018 2019 2018 2019 Beginning balance (1) $ 86,044 $ 113,257 $ 87,313 $ 114,973 Additions 24,582 30,074 40,003 48,310 Recognition of deferred commissions (19,157 ) (24,763 ) (35,847 ) (44,715 ) Ending balance $ 91,469 $ 118,568 $ 91,469 $ 118,568 ____________________________________ (1) Balance as of January 31, 2018 was adjusted to reflect the adoption of ASC 606. |
Deferred Revenue | Changes in total deferred revenue during the periods presented are as follows (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2018 2019 2018 2019 Beginning balance (1) $ 388,614 $ 564,230 $ 374,102 $ 535,920 Additions 92,511 140,548 167,782 258,441 Recognition of deferred revenue (67,878 ) (97,515 ) (128,637 ) (187,098 ) Ending balance $ 413,247 $ 607,263 $ 413,247 $ 607,263 ____________________________________ (1) Balance as of January 31, 2018 was adjusted to reflect the adoption of ASC 606. |
Financial Instruments - (Tables
Financial Instruments - (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash Equivalents, Marketable Securities and Restricted Cash | The following tables summarize our cash equivalents, marketable securities and restricted cash by significant investment categories as of January 31, 2019 and July 31, 2019 (in thousands): As of January 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Marketable Securities Restricted Cash Level 1 Money market accounts $ — $ — $ — $ 43,038 $ 27,215 $ — $ 15,823 Level 2 U.S. government treasury notes 315,329 208 (315 ) 315,222 34,129 281,093 — U.S. government agencies 69,114 17 (154 ) 68,977 9,983 58,994 — Corporate debt securities 363,860 534 (757 ) 363,637 — 363,637 — Foreign government bonds 7,965 36 — 8,001 — 8,001 — Asset-backed securities 37,664 105 (12 ) 37,757 — 37,757 — Total $ 793,932 $ 900 $ (1,238 ) $ 836,632 $ 71,327 $ 749,482 $ 15,823 As of July 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Marketable Securities Restricted Cash Level 1 Money market accounts $ — $ — $ — $ 36,659 $ 21,234 $ — $ 15,425 Level 2 U.S. government treasury notes 348,463 1,454 (58 ) 349,859 — 349,859 — U.S. government agencies 66,153 222 (22 ) 66,353 — 66,353 — Corporate debt securities 427,362 2,685 (111 ) 429,936 1,029 428,907 — Foreign government bonds 8,480 100 — 8,580 — 8,580 — Asset-backed securities 59,504 329 (11 ) 59,822 — 59,822 — Total $ 909,962 $ 4,790 $ (202 ) $ 951,209 $ 22,263 $ 913,521 $ 15,425 |
Amortized Cost and Estimated Fair Value | The amortized cost and estimated fair value of our marketable securities are shown below by contractual maturity (in thousands): As of July 31, 2019 Amortized Cost Fair Value Due within one year $ 336,156 $ 336,736 Due in one to five years 572,777 576,785 Total $ 908,933 $ 913,521 |
Gross Unrealized Losses and Fair Values | The following table presents gross unrealized losses and fair values for those investments that were in a continuous unrealized loss position as of July 31, 2019 , aggregated by investment category (in thousands): Less than 12 months Greater than 12 months Total Fair Value Unrealized Loss Fair Unrealized Fair Unrealized U.S. government treasury notes $ 27,887 $ (30 ) $ 9,737 $ (28 ) $ 37,624 $ (58 ) U.S. government agencies 5,215 (7 ) 9,183 (15 ) 14,398 (22 ) Corporate debt securities 38,856 (28 ) 43,245 (83 ) 82,101 (111 ) Asset-backed securities 9,399 (11 ) — — 9,399 (11 ) Total $ 81,357 $ (76 ) $ 62,165 $ (126 ) $ 143,522 $ (202 ) |
Balance Sheet Components - (Tab
Balance Sheet Components - (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Balance Sheet Components Disclosure [Abstract] | |
Inventory | Inventory consists of the following (in thousands): As of As of Raw materials $ 3,349 $ 2,623 Finished goods 41,338 33,197 Inventory $ 44,687 $ 35,820 |
Property and Equipment, Net | Property and equipment, net consists of the following (in thousands): As of As of Test equipment $ 170,930 $ 191,846 Computer equipment and software 117,330 135,178 Furniture and fixtures 6,980 7,732 Leasehold improvements 34,286 37,866 Total property and equipment 329,526 372,622 Less: accumulated depreciation and amortization (204,173 ) (241,574 ) Property and equipment, net $ 125,353 $ 131,048 |
Intangible Assets, Net | Intangible assets, net consist of the following (in thousands): As of As of Gross Carrying Value Accumulated Amortization Net Carrying Amount Gross Carrying Value Accumulated Amortization Net Carrying Amount Technology patents $ 10,125 $ (6,572 ) $ 3,553 $ 19,125 $ (7,538 ) $ 11,587 Developed technology 17,700 (1,135 ) 16,565 56,100 (4,028 ) 52,072 Intangible assets, net $ 27,825 $ (7,707 ) $ 20,118 $ 75,225 $ (11,566 ) $ 63,659 |
Expected Amortization Expenses for Intangible Assets | As of July 31, 2019 , future expected amortization expense for intangible assets is as follows (in thousands): Fiscal Years Ending January 31, Estimated Future Amortization Expense Remainder of 2020 $ 5,402 2021 10,804 2022 9,846 2023 9,300 2024 9,300 Thereafter 19,007 Total $ 63,659 |
Goodwill | The change in the carrying amount of goodwill is as follows (in thousands): Amount Balance as of January 31, 2019 $ 10,997 Goodwill acquired 25,423 Balance as of July 31, 2019 $ 36,420 |
Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consist of the following (in thousands): As of As of Taxes payable $ 7,146 $ 4,967 Accrued marketing 6,173 11,005 Accrued travel and entertainment expenses 3,570 3,055 Acquisition consideration held back 3,725 3,725 Other accrued liabilities 19,246 21,938 Total accrued expenses and other liabilities $ 39,860 $ 44,690 |
Convertible Senior Notes - (Tab
Convertible Senior Notes - (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Debt Disclosure [Abstract] | |
Convertible Debt | The Notes consisted of the following (in thousands): As of Liability: Principal $ 575,000 Less: debt discount, net of amortization (104,329 ) Less: debt issuance costs, net of amortization (7,553 ) Net carrying amount of the Notes $ 463,118 Stockholders' equity: Allocated value of the conversion feature $ 136,333 Less: debt issuance costs (3,068 ) Additional paid-in capital $ 133,265 |
Interest Expense | The following table sets forth total interest expense recognized related to the Notes for three and six months ended July 31, 2018 and 2019 (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2018 2019 2018 2019 Amortization of debt discount $ 6,000 $ 6,341 $ 7,357 $ 12,393 Amortization of debt issuance costs 434 459 532 897 Total amortization of debt discount and debt issuance costs 6,434 6,800 7,889 13,290 Contractual interest expense 181 181 224 358 Total interest expense related to the Notes $ 6,615 $ 6,981 $ 8,113 $ 13,648 Effective interest rate of the liability component 5.6 % 5.6 % 5.6 % 5.6 % |
Leases - (Tables)
Leases - (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Leases [Abstract] | |
Lease costs | Supplemental cash flow information related to our operating leases for the six months ended July 31, 2019 as well as the weighted-average remaining lease term and weighted-average discount rate as of July 31, 2019 were as follows: Cash paid for amounts included in the measurement of lease liabilities (in thousands) $ 16,167 Operating lease right-of-use assets obtained in exchange for operating lease liabilities $ 3,449 Weighted-average remaining lease term (years) 5.28 Weighted-average discount rate 6.46 % The components of lease costs were as follows (in thousands): Three Months Ended Six Months Ended July 31, 2019 July 31, 2019 Fixed operating lease cost $ 8,228 $ 16,711 Variable lease cost (1) 2,242 4,342 Short-term lease cost (12 months or less) 1,484 2,345 Total lease cost $ 11,954 $ 23,398 —————————— (1) Variable lease cost for the three and six months ended July 31, 2019 predominantly includes common area maintenance charges. |
Future minimum lease payments | Future lease payments under our non-cancelable operating leases as of July 31, 2019 were as follows (in thousands): Fiscal Years Ending January 31, Operating Leases The remainder of 2020 $ 16,579 2021 33,269 2022 26,781 2023 21,478 2024 15,434 Thereafter 31,236 Total future lease payments 144,777 Less: imputed interest (23,831 ) Present value of lease liabilities $ 120,946 |
Schedule of future minimum rental payments for operating leases | As previously disclosed in our Annual Report on Form 10-K for the year ended January 31, 2019 and under the previous lease accounting standard, ASC 840, Leases , the following table summarizes the future minimum lease payments due under operating leases as of January 31, 2019 (in thousands): Year Ending January 31, Operating Leases 2020 $ 31,297 2021 28,573 2022 24,381 2023 20,440 2024 14,780 Thereafter 30,096 Total $ 149,567 |
Equity Incentive Plans - (Table
Equity Incentive Plans - (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Equity Incentive Plans | A summary of stock option activity under our equity incentive plans and related information is as follows: Options Outstanding Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value (in thousands) Balance as of January 31, 2019 35,465,543 $ 8.34 5.4 $ 339,591 Options exercised (3,862,965 ) 4.99 Options forfeited/canceled (343,662 ) 15.49 Balance as of July 31, 2019 31,258,916 $ 8.67 3.9 $ 218,450 Vested and exercisable as of July 31, 2019 25,407,263 $ 7.54 4.8 $ 203,215 |
Restricted Stock Units | A summary of the RSU activity under our 2015 Plan and related information is as follows: Number of RSUs Outstanding Weighted- Average Grant Date Fair Value Aggregate Unvested balance as of January 31, 2019 21,917,550 $ 17.94 $ 392,515 Granted 8,792,982 19.81 Vested (4,352,885 ) 16.38 Forfeited (1,324,694 ) 18.47 Unvested balance as of July 31, 2019 25,032,953 $ 18.84 $ 378,999 |
Restricted Stock | A summary of the restricted stock activity under our 2015 Plan and related information is as follows: Number of Restricted Stock Outstanding Weighted- Average Grant Date Fair Value Aggregate Unvested balance as of January 31, 2019 2,267,569 $ 18.70 $ 40,612 Granted 1,399,688 20.30 Vested (843,321 ) 19.85 Unvested balance as of July 31, 2019 2,823,936 $ 19.25 $ 42,754 |
Stock-Based Compensation | The following table summarizes the components of stock-based compensation expense recognized in the condensed consolidated statements of operations (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2018 2019 2018 2019 Cost of revenue—product $ 720 $ 954 $ 1,328 $ 1,931 Cost of revenue—support subscription 2,929 3,633 5,613 7,584 Research and development 22,232 29,108 43,322 57,353 Sales and marketing 17,269 16,055 31,209 34,369 General and administrative 10,504 8,654 16,137 19,324 Total stock-based compensation expense $ 53,654 $ 58,404 $ 97,609 $ 120,561 |
Net Loss per Share Attributab_2
Net Loss per Share Attributable to Common Stockholders - (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except per share data): Three Months Ended July 31, Six Months Ended July 31, 2018 2019 2018 2019 Net loss $ (60,123 ) $ (66,018 ) $ (124,427 ) $ (166,354 ) Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 229,359 251,298 226,609 248,366 Net loss per share attributable to common stockholders, basic and diluted $ (0.26 ) $ (0.26 ) $ (0.55 ) $ (0.67 ) |
Shares Excluded | The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2018 2019 2018 2019 Stock options to purchase common stock 40,920 31,739 42,923 32,852 Unvested RSUs 19,957 25,513 19,486 24,743 Restricted stock and early exercised stock options subject to repurchase 3,327 2,917 2,585 2,777 Shares related to Notes 21,884 21,884 13,783 21,884 Shares issuable pursuant to ESPP 1,154 720 1,127 720 Total 87,242 82,773 79,904 82,976 |
Other Income (Expense), Net - (
Other Income (Expense), Net - (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other Income | Other income (expense), net consists of the following (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2018 2019 2018 2019 Interest income (1) $ 4,783 $ 6,772 $ 6,654 $ 13,606 Interest expense (2) (6,615 ) (6,981 ) (8,113 ) (13,648 ) Foreign currency transactions losses (2,273 ) (443 ) (4,407 ) (2,426 ) Other income 73 — 835 — Total other income (expense), net $ (4,032 ) $ (652 ) $ (5,031 ) $ (2,468 ) ____________________________________ (1) Interest income includes interest income related to our cash, cash equivalents and marketable securities and non-cash interest income related to accretion (amortization) of the discount (premium) on marketable securities. (2) Interest expense includes non-cash interest expense related to amortization of the debt discount and debt issuance costs and the contractual interest expense related to the Notes for the three and six months ended July 31, 2018 and 2019 . |
Segment Information - (Tables)
Segment Information - (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Segment Reporting [Abstract] | |
Revenue by Geographic Area | The following table depicts the disaggregation of revenue by geographic area based on the billing address of our customers and is consistent with how we evaluate our financial performance (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2018 2019 2018 2019 United States $ 229,760 $ 294,596 $ 414,678 $ 523,535 Rest of the world 79,124 101,731 150,151 199,492 Total revenue $ 308,884 $ 396,327 $ 564,829 $ 723,027 |
Long-Lived Assets by Geographic Area | assets, which are comprised of property and equipment, net, by geographic area are summarized as follows (in thousands): As of As of United States $ 120,876 $ 121,454 Rest of the world 4,477 9,594 Total long-lived assets $ 125,353 $ 131,048 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | Apr. 30, 2019 | Feb. 01, 2019 | Jan. 31, 2019 | Apr. 30, 2018 | Jan. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Deferred commissions | $ 118,568 | $ 91,469 | $ 118,568 | $ 91,469 | $ 86,044 | $ 114,973 | $ 113,257 | $ 87,313 | |
Revenue recognition over next 12 months, percent | 41.00% | 41.00% | |||||||
Operating lease right-of-use assets | $ 114,339 | $ 114,339 | 0 | ||||||
Operating lease liabilities | 120,946 | 120,946 | |||||||
Restricted cash | 15,425 | 15,778 | 15,425 | 15,778 | $ 15,823 | ||||
ASU 2016-02 | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Operating lease right-of-use assets | $ 124,500 | ||||||||
Operating lease liabilities | $ 130,600 | ||||||||
Product Revenue and Support Subscription Revenue | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Deferred revenue recognized | $ 88,200 | $ 60,900 | $ 150,200 | $ 106,200 |
- Deferred Commissions (Details
- Deferred Commissions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Accounting Policies [Abstract] | ||||
Remaining amortization period | 6 years | 6 years | ||
Contract Assets | ||||
Beginning balance | $ 86,044 | $ 113,257 | $ 114,973 | $ 87,313 |
Additions | 30,074 | 24,582 | 48,310 | 40,003 |
Recognition of deferred commissions | (24,763) | (19,157) | (44,715) | (35,847) |
Ending balance | $ 118,568 | $ 91,469 | $ 118,568 | $ 91,469 |
- Deferred Commissions (Typed D
- Deferred Commissions (Typed Dimensions) (Details) | Jul. 31, 2019 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-08-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation (as a percent) | 26.00% |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Deferred Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Contract Liability | ||||
Beginning balance | $ 564,230 | $ 388,614 | $ 535,920 | $ 374,102 |
Additions | 140,548 | 92,511 | 258,441 | 167,782 |
Recognition of deferred revenue | 97,515 | (67,878) | (187,098) | (128,637) |
Ending balance | 607,263 | 413,247 | 607,263 | 413,247 |
Product Revenue and Support Subscription Revenue | ||||
Contract Liability | ||||
Ending balance | 770,100 | 770,100 | ||
Deferred revenue recognized | $ 88,200 | $ 60,900 | $ 150,200 | $ 106,200 |
Financial Instruments - Cash Eq
Financial Instruments - Cash Equivalents, Marketable Securities and Restricted Cash (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 909,962 | $ 793,932 |
Amortized Cost | 908,933 | |
Gross Unrealized Gains | 4,790 | 900 |
Gross Unrealized Losses | (202) | (1,238) |
Fair Value | 951,209 | 836,632 |
Fair Value | 913,521 | |
Cash Equivalents | 22,263 | 71,327 |
Marketable Securities | 913,521 | 749,482 |
Restricted Cash | 15,425 | 15,823 |
Level 1 | Money market accounts | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 36,659 | 43,038 |
Cash Equivalents | 21,234 | 27,215 |
Marketable Securities | 0 | 0 |
Restricted Cash | 15,425 | 15,823 |
Level 2 | U.S. government treasury notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 348,463 | 315,329 |
Gross Unrealized Gains | 1,454 | 208 |
Gross Unrealized Losses | (58) | (315) |
Fair Value | 349,859 | 315,222 |
Cash Equivalents | 0 | 34,129 |
Marketable Securities | 349,859 | 281,093 |
Restricted Cash | 0 | 0 |
Level 2 | U.S. government agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 66,153 | 69,114 |
Gross Unrealized Gains | 222 | 17 |
Gross Unrealized Losses | (22) | (154) |
Fair Value | 66,353 | 68,977 |
Cash Equivalents | 0 | 9,983 |
Marketable Securities | 66,353 | 58,994 |
Restricted Cash | 0 | 0 |
Level 2 | Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 427,362 | 363,860 |
Gross Unrealized Gains | 2,685 | 534 |
Gross Unrealized Losses | (111) | (757) |
Fair Value | 429,936 | 363,637 |
Cash Equivalents | 1,029 | 0 |
Marketable Securities | 428,907 | 363,637 |
Restricted Cash | 0 | 0 |
Level 2 | Foreign government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 8,480 | |
Amortized Cost | 7,965 | |
Gross Unrealized Gains | 100 | |
Gross Unrealized Gains | 36 | |
Gross Unrealized Losses | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 8,580 | |
Fair Value | 8,001 | |
Cash Equivalents | 0 | 0 |
Marketable Securities | 8,580 | 8,001 |
Restricted Cash | 0 | 0 |
Level 2 | Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 59,504 | |
Amortized Cost | 37,664 | |
Gross Unrealized Gains | 329 | |
Gross Unrealized Gains | 105 | |
Gross Unrealized Losses | (11) | |
Gross Unrealized Losses | (12) | |
Fair Value | 59,822 | |
Fair Value | 37,757 | |
Cash Equivalents | 0 | 0 |
Marketable Securities | 59,822 | 37,757 |
Restricted Cash | $ 0 | $ 0 |
Financial Instruments - Amortiz
Financial Instruments - Amortized Cost and Estimated Fair Value (Details) $ in Thousands | Jul. 31, 2019USD ($) |
Amortized Cost | |
Due within one year | $ 336,156 |
Due in one to five years | 572,777 |
Total | 908,933 |
Fair Value | |
Due within one year | 336,736 |
Due in one to five years | 576,785 |
Total | $ 913,521 |
Financial Instruments - Gross U
Financial Instruments - Gross Unrealized Losses and Fair Values (Details) $ in Thousands | Jul. 31, 2019USD ($) |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | |
Fair Value, Less than 12 months | $ 81,357 |
Unrealized Loss, Less than 12 Months | (76) |
Fair Value, Greater than 12 months | 62,165 |
Unrealized Loss, Greater than 12 months | (126) |
Fair Value, Total | 143,522 |
Unrealized Loss, Total | (202) |
U.S. government treasury notes | |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | |
Fair Value, Less than 12 months | 27,887 |
Unrealized Loss, Less than 12 Months | (30) |
Fair Value, Greater than 12 months | 9,737 |
Unrealized Loss, Greater than 12 months | (28) |
Fair Value, Total | 37,624 |
Unrealized Loss, Total | (58) |
U.S. government agencies | |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | |
Fair Value, Less than 12 months | 5,215 |
Unrealized Loss, Less than 12 Months | (7) |
Fair Value, Greater than 12 months | 9,183 |
Unrealized Loss, Greater than 12 months | (15) |
Fair Value, Total | 14,398 |
Unrealized Loss, Total | (22) |
Corporate debt securities | |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | |
Fair Value, Less than 12 months | 38,856 |
Unrealized Loss, Less than 12 Months | (28) |
Fair Value, Greater than 12 months | 43,245 |
Unrealized Loss, Greater than 12 months | (83) |
Fair Value, Total | 82,101 |
Unrealized Loss, Total | (111) |
Asset-backed securities | |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | |
Fair Value, Less than 12 months | 9,399 |
Unrealized Loss, Less than 12 Months | (11) |
Fair Value, Greater than 12 months | 0 |
Unrealized Loss, Greater than 12 months | 0 |
Fair Value, Total | 9,399 |
Unrealized Loss, Total | $ (11) |
Business Combination - Narrativ
Business Combination - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | |||
Jun. 30, 2019 | Apr. 30, 2019 | Jul. 31, 2019 | Jan. 31, 2019 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 36,420 | $ 10,997 | ||
Acquisition consideration held back | 3,725 | $ 3,725 | ||
Compuverde AB | ||||
Business Acquisition [Line Items] | ||||
Acquisition Related Costs | $ 500 | |||
Cash consideration transferred | $ 47,900 | |||
Long-term debt assumed and subsequently paid off | 11,600 | |||
Goodwill | 25,400 | |||
Net liabilities assumed | 10,200 | |||
Deferred tax liabilities assumed | 5,700 | |||
Acquisition Costs | 15,900 | |||
Compuverde AB | Restricted Stock Units | ||||
Business Acquisition [Line Items] | ||||
Equity interests issued and issuable | $ 3,000 | |||
Compuverde AB | Developed technology | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangibles acquired | $ 38,400 | |||
Useful Life (in years) | 7 years |
Balance Sheet Components - Inve
Balance Sheet Components - Inventory (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Balance Sheet Components Disclosure [Abstract] | ||
Raw materials | $ 2,623 | $ 3,349 |
Finished goods | 33,197 | 41,338 |
Inventory | $ 35,820 | $ 44,687 |
Balance Sheet Components - Prop
Balance Sheet Components - Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 372,622 | $ 329,526 |
Less: accumulated depreciation and amortization | (241,574) | (204,173) |
Property and equipment, net | 131,048 | 125,353 |
Test equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 191,846 | 170,930 |
Computer equipment and software | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 135,178 | 117,330 |
Furniture and fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 7,732 | 6,980 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 37,866 | $ 34,286 |
Balance Sheet Components - Narr
Balance Sheet Components - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Balance Sheet Components Disclosure [Abstract] | ||||
Depreciation and amortization | $ 19.9 | $ 16.8 | $ 32.8 | $ 39.7 |
Intangible assets amortization expense | $ 2.6 | $ 0.4 | $ 3.9 | $ 0.8 |
Technology patents | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted-average remaining useful life (in years) | 7 years | 4 years 2 months 12 days | ||
Developed technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted-average remaining useful life (in years) | 6 years 6 months |
Balance Sheet Components - Inta
Balance Sheet Components - Intangible Assets, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2019 | Jan. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Value | $ 75,225 | $ 75,225 | $ 27,825 |
Accumulated Amortization | (11,566) | (11,566) | (7,707) |
Net Carrying Amount | 63,659 | 63,659 | 20,118 |
Technology patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquired Finite-lived Intangible Asset, Residual Value | 9,000 | 9,000 | |
Gross Carrying Value | 19,125 | 19,125 | 10,125 |
Accumulated Amortization | (7,538) | (7,538) | (6,572) |
Net Carrying Amount | $ 11,587 | $ 11,587 | 3,553 |
Weighted-average remaining useful life (in years) | 7 years | 4 years 2 months 12 days | |
Developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Value | $ 56,100 | $ 56,100 | 17,700 |
Accumulated Amortization | (4,028) | (4,028) | (1,135) |
Net Carrying Amount | $ 52,072 | $ 52,072 | $ 16,565 |
Weighted-average remaining useful life (in years) | 6 years 6 months |
Balance Sheet Components - Expe
Balance Sheet Components - Expected Amortization Expenses for Intangible Assets (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Balance Sheet Components Disclosure [Abstract] | ||
Remainder of 2020 | $ 5,402 | |
2021 | 10,804 | |
2022 | 9,846 | |
2023 | 9,300 | |
2024 | 9,300 | |
Thereafter | 19,007 | |
Net Carrying Amount | $ 63,659 | $ 20,118 |
Balance Sheet Components - Good
Balance Sheet Components - Goodwill (Details) $ in Thousands | 6 Months Ended |
Jul. 31, 2019USD ($) | |
Goodwill [Roll Forward] | |
January 31, 2019 | $ 10,997 |
Goodwill acquired | 25,423 |
July 31, 2019 | $ 36,420 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Balance Sheet Components Disclosure [Abstract] | ||
Taxes payable | $ 4,967 | $ 7,146 |
Accrued marketing | 11,005 | 6,173 |
Accrued travel and entertainment expenses | 3,055 | 3,570 |
Acquisition consideration held back | 3,725 | 3,725 |
Other accrued liabilities | 21,938 | 19,246 |
Total accrued expenses and other liabilities | $ 44,690 | $ 39,860 |
Convertible Senior Notes - Narr
Convertible Senior Notes - Narrative (Details) | 1 Months Ended | 6 Months Ended | ||
Apr. 30, 2018USD ($)dayshares$ / shares | Jul. 31, 2019USD ($)$ / shares | Jul. 31, 2018USD ($) | Apr. 04, 2018$ / shares | |
Debt Instrument [Line Items] | ||||
Proceeds from issuance of convertible senior notes, net of issuance costs | $ 0 | $ 562,062,000 | ||
Debt issuance costs, net of amortization | $ 12,900,000 | |||
Closing price of stock (in dollars per share) | $ / shares | $ 15.14 | |||
Payment for purchase of capped calls | $ 0 | 64,630,000 | ||
Capped Call | ||||
Debt Instrument [Line Items] | ||||
Payment for purchase of capped calls | 64,600,000 | |||
Convertible Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt issuance costs, net of amortization | 9,800,000 | 7,553,000 | ||
Additional Paid-In Capital | ||||
Debt Instrument [Line Items] | ||||
Debt issuance costs, net of amortization | $ 3,100,000 | $ 3,068,000 | ||
Class A | ||||
Debt Instrument [Line Items] | ||||
Conversion price (in dollars per share) | $ / shares | $ 26.27 | |||
Closing price of stock (in dollars per share) | $ / shares | $ 15.14 | $ 19.83 | ||
Class A | Capped Call | ||||
Debt Instrument [Line Items] | ||||
Exercise price (in dollars per share) | $ / shares | $ 39.66 | |||
Exercise price premium percentage over last reported sales price | 100.00% | |||
Convertible Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 575,000,000 | $ 575,000,000 | ||
Interest rate (as a percent) | 0.125% | |||
Proceeds from issuance of convertible senior notes, net of issuance costs | $ 562,100,000 | |||
Conversion percentage of principal amount plus accrued and unpaid contingent interest | 100.00% | |||
Convertible debt, fair value based on the closing trading price per $100 of the Notes | $ 558,700,000 | |||
If-converted value | $ 331,300,000 | |||
Convertible Senior Notes | Class A | ||||
Debt Instrument [Line Items] | ||||
Number of convertible shares at initial conversion rate (in shares) | shares | 21,884,155 | |||
Conversion ratio (in shares per $1,000 principal amount) | 38.0594 | |||
Conversion price (in dollars per share) | $ / shares | $ 26.27 | |||
Redemption percentage of principal amount of Notes to be redeemed | 100.00% | |||
Convertible Senior Notes | Class A | Any Fiscal Quarter Commencing After the Fiscal Quarter Ending on July 31, 2018 | ||||
Debt Instrument [Line Items] | ||||
Threshold trading days | day | 20 | |||
Threshold consecutive trading days | day | 30 | |||
Threshold percentage of stock price trigger | 130.00% | |||
Convertible Senior Notes | Class A | Five Business Day Period After any Five Consecutive Trading Day Period | ||||
Debt Instrument [Line Items] | ||||
Threshold consecutive trading days | day | 5 | |||
Threshold percentage of stock price trigger | 98.00% | |||
Threshold business days | day | 5 | |||
Convertible Senior Notes | Class A | Immediately Preceding the Date on Which We Provide Notice of Redemption | ||||
Debt Instrument [Line Items] | ||||
Threshold trading days | day | 2 |
Convertible Senior Notes - Conv
Convertible Senior Notes - Convertible Debt (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jul. 31, 2018 | Apr. 30, 2018 |
Liability: | |||
Less: debt issuance costs, net of amortization | $ (12,900) | ||
Stockholders' equity: | |||
Allocated value of the conversion feature | $ 133,265 | ||
Less: debt issuance costs | (12,900) | ||
Convertible Senior Notes | |||
Liability: | |||
Principal | $ 575,000 | ||
Less: debt discount, net of amortization | (104,329) | ||
Less: debt issuance costs, net of amortization | (7,553) | (9,800) | |
Net carrying amount of the Notes | 463,118 | ||
Stockholders' equity: | |||
Less: debt issuance costs | (7,553) | (9,800) | |
Additional Paid-In Capital | |||
Liability: | |||
Less: debt issuance costs, net of amortization | (3,068) | (3,100) | |
Stockholders' equity: | |||
Allocated value of the conversion feature | 136,333 | ||
Less: debt issuance costs | (3,068) | $ (3,100) | |
Additional paid-in capital | $ 133,265 |
Convertible Senior Notes - Inte
Convertible Senior Notes - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Debt Instrument [Line Items] | ||||
Total amortization of debt discount and debt issuance costs | $ 13,290 | $ 7,889 | ||
Convertible Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Amortization of debt discount | $ 6,341 | $ 6,000 | 12,393 | 7,357 |
Amortization of debt issuance costs | 459 | 434 | 897 | 532 |
Total amortization of debt discount and debt issuance costs | 6,800 | 6,434 | 13,290 | 7,889 |
Contractual interest expense | 181 | 181 | 358 | 224 |
Total interest expense related to the Notes | $ 6,981 | $ 6,615 | $ 13,648 | $ 8,113 |
Effective interest rate of the liability component | 5.60% | 5.60% | 5.60% | 5.60% |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) | Jul. 31, 2019 | Jan. 31, 2019 | Jul. 31, 2018 | Apr. 30, 2018 |
Lessee, Lease, Description [Line Items] | ||||
Outstanding letters of credit | $ 11,600,000 | $ 10,800,000 | ||
Letter of Credit | ||||
Lessee, Lease, Description [Line Items] | ||||
Principal amount | $ 500,000 | |||
Convertible Senior Notes | ||||
Lessee, Lease, Description [Line Items] | ||||
Principal amount | $ 575,000,000 | $ 575,000,000 |
Leases - Lease costs (Details)
Leases - Lease costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jul. 31, 2019 | Jul. 31, 2019 | |
Leases [Abstract] | ||
Fixed operating lease cost | $ 8,228 | $ 16,711 |
Variable lease cost | 2,242 | 4,342 |
Short-term lease cost (12 months or less) | 1,484 | 2,345 |
Total lease cost | $ 11,954 | $ 23,398 |
Leases - Future minimum lease p
Leases - Future minimum lease payments (Details) $ in Thousands | Jul. 31, 2019USD ($) |
Leases [Abstract] | |
The remainder of 2020 | $ 16,579 |
2021 | 33,269 |
2022 | 26,781 |
2023 | 21,478 |
2024 | 15,434 |
Thereafter | 31,236 |
Total future lease payments | 144,777 |
Less: imputed interest | (23,831) |
Present value of lease liabilities | $ 120,946 |
Leases - Lease cash flow inform
Leases - Lease cash flow information (Details) $ in Thousands | 6 Months Ended |
Jul. 31, 2019USD ($) | |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of lease liabilities | $ 16,167 |
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ 3,449 |
Weighted-average remaining lease term (years) | 5 years 3 months 10 days |
Weighted-average discount rate (as a percent) | 6.46% |
Leases - Schedule Aggregate Fut
Leases - Schedule Aggregate Future Minimum Payments Under Non-Cancelable Operating Leases (Details) $ in Thousands | Jan. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 31,297 |
2021 | 28,573 |
2022 | 24,381 |
2023 | 20,440 |
2024 | 14,780 |
Thereafter | 30,096 |
Total future lease payments | $ 149,567 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) | 1 Months Ended | ||||
Apr. 30, 2018USD ($)shares | Aug. 31, 2019USD ($) | Jul. 31, 2019class$ / sharesshares | Jan. 31, 2019$ / sharesshares | Apr. 04, 2018$ / shares | |
Equity [Abstract] | |||||
Shares authorized (in shares) | 20,000,000 | 20,000,000 | |||
Number of classes of stock | class | 2 | ||||
Class of Stock [Line Items] | |||||
Shares authorized (in shares) | 2,250,000,000 | 2,250,000,000 | |||
Par value per share (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||
Shares issued (in shares) | 241,359,000 | 220,979,000 | |||
Closing price of stock (in dollars per share) | $ / shares | $ 15.14 | ||||
Class A | |||||
Class of Stock [Line Items] | |||||
Shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 | |||
Par value per share (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||
Shares issued (in shares) | 255,751,711 | 243,524,000 | |||
Stock repurchased and retired (in shares) | 1,008,573 | ||||
Stock repurchased and retired during period, value | $ | $ 20,000,000 | ||||
Closing price of stock (in dollars per share) | $ / shares | $ 15.14 | $ 19.83 | |||
Class B | |||||
Class of Stock [Line Items] | |||||
Shares authorized (in shares) | 250,000,000 | 250,000,000 | |||
Par value per share (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||
Shares issued (in shares) | 0 | 0 | |||
Subsequent Event | Class A | |||||
Class of Stock [Line Items] | |||||
Value Approved For Repurchase | $ | $ 150,000,000 |
Equity Incentive Plans - Narrat
Equity Incentive Plans - Narrative (Details) | Mar. 16, 2016 | Feb. 28, 2019USD ($) | Jul. 31, 2019USD ($)$ / shares | Jul. 31, 2018USD ($) | Jul. 31, 2019USD ($)plan$ / shares | Jul. 31, 2018USD ($) | Dec. 31, 2015USD ($)periodshares | Apr. 04, 2018$ / shares |
Share-based Payment Arrangement [Abstract] | ||||||||
Number of equity incentive plans | plan | 2 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Closing price of stock (in dollars per share) | $ / shares | $ 15.14 | $ 15.14 | ||||||
Total stock-based compensation expense | $ 58,404,000 | $ 53,654,000 | $ 120,561,000 | $ 97,609,000 | ||||
Class A | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Closing price of stock (in dollars per share) | $ / shares | $ 15.14 | $ 15.14 | $ 19.83 | |||||
2015 Equity Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Equity awards of vest expire period (no later than) | 10 years | |||||||
2015 Equity Incentive Plan | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Purchase price as percentage of fair market value of common stock | 100.00% | |||||||
Equity awards of vest period | 2 years | |||||||
2015 Equity Incentive Plan | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Equity awards of vest period | 4 years | |||||||
2015 Employee Stock Purchase Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Employee stock purchase plan offering period | 24 months | |||||||
Number of purchase periods | period | 4 | |||||||
Purchase period, term | 6 months | |||||||
Total stock-based compensation expense | $ 4,200,000 | 7,900,000 | $ 15,700,000 | 14,600,000 | ||||
Unrecognized stock-based compensation expense | 19,400,000 | $ 19,400,000 | ||||||
Compensation cost (in years) | 1 year 6 months | |||||||
2015 Employee Stock Purchase Plan | Class A | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Purchase price as percentage of fair market value of common stock | 85.00% | |||||||
Payroll deductions percentage | 30.00% | |||||||
Share cap for ESPP at purchase date (in shares) | shares | 3,000 | |||||||
Calendar year gap for ESPP contribution amount | $ 25,000 | |||||||
Dollar cap per purchase period | $ 7,500 | |||||||
Modification charges | $ 2,200,000 | |||||||
Restricted Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Total stock-based compensation expense | 7,400,000 | $ 6,700,000 | 14,800,000 | $ 10,200,000 | ||||
Unrecognized stock-based compensation expense | $ 30,600,000 | $ 30,600,000 | ||||||
Compensation cost (in years) | 2 years 3 months 18 days |
Equity Incentive Plans - Equity
Equity Incentive Plans - Equity Incentive Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jul. 31, 2019 | Jan. 31, 2019 | Apr. 04, 2018 | |
Options Outstanding, Number of Shares | |||
Beginning balance (in shares) | 35,465,543 | ||
Options exercised (in shares) | (3,862,965) | ||
Options forfeited/cancelled (in shares) | (343,662) | ||
Ending balance (in shares) | 31,258,916 | 35,465,543 | |
Vested and exercisable (in shares) | 25,407,263 | ||
Options Outstanding, Weighted Average Exercise Price | |||
Beginning balance (in dollars per share) | $ 8.34 | ||
Options exercised (in dollars per share) | 4.99 | ||
Options forfeited/cancelled (in dollars per share) | 15.49 | ||
Ending balance (in dollars per share) | 8.67 | $ 8.34 | |
Weighted Average Exercise Price, Vested and exercisable (in dollars per share) | $ 7.54 | ||
Weighted- Average Remaining Contractual Life | |||
Weighted Average Remaining Contractual Life (in years) | 3 years 10 months 24 days | 5 years 4 months 24 days | |
Weighted Average Remaining Contractual Life, Vested and exercisable (in years) | 4 years 9 months 18 days | ||
Aggregate Intrinsic Value | |||
Aggregate Intrinsic Value | $ 218,450 | $ 339,591 | |
Aggregate Intrinsic Value, Vested and exercisable | $ 203,215 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Closing price of stock (in dollars per share) | $ 15.14 | ||
Unrecognized compensation cost, stock options | $ 20,600 | ||
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost (in years) | 1 year 7 months 6 days | ||
Class A | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Closing price of stock (in dollars per share) | $ 15.14 | $ 19.83 | |
2015 Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost (in years) | 1 year 6 months |
Equity Incentive Plans - Restri
Equity Incentive Plans - Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2019 | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Weighted-Average Grant Date Fair Value | |||||
Stock-based compensation expense | $ 58,404 | $ 53,654 | $ 120,561 | $ 97,609 | |
Restricted Stock Units | |||||
Number of Restricted Stock Units Outstanding | |||||
Unvested, Beginning balance (in shares) | 21,917,550 | ||||
Granted (in shares) | 8,792,982 | ||||
Vested (in shares) | (4,352,885) | ||||
Forfeited (in shares) | (1,324,694) | ||||
Unvested, Ending balance (in shares) | 21,917,550 | 25,032,953 | 25,032,953 | ||
Weighted-Average Grant Date Fair Value | |||||
Beginning balance (in dollars per share) | $ 17.94 | ||||
Granted (in dollars per share) | 19.81 | ||||
Vested (in dollars per share) | 16.38 | ||||
Forfeited (in dollars per share) | 18.47 | ||||
Ending balance (in dollars per share) | $ 17.94 | $ 18.84 | $ 18.84 | ||
Aggregate Intrinsic Value | $ 392,515 | $ 378,999 | $ 378,999 | ||
Share-based compensation expense | 40,400 | 29,500 | 77,700 | 55,900 | |
Compensation not yet recognized | $ 427,800 | $ 427,800 | |||
Compensation cost (in years) | 3 years | ||||
Restricted Stock | |||||
Number of Restricted Stock Units Outstanding | |||||
Unvested, Beginning balance (in shares) | 2,267,569 | ||||
Vested (in shares) | (843,321) | ||||
Unvested, Ending balance (in shares) | 2,267,569 | 2,823,936 | 2,823,936 | ||
Weighted-Average Grant Date Fair Value | |||||
Beginning balance (in dollars per share) | $ 18.70 | ||||
Vested (in dollars per share) | 19.85 | ||||
Ending balance (in dollars per share) | $ 18.70 | $ 19.25 | $ 19.25 | ||
Aggregate Intrinsic Value | $ 40,612 | $ 42,754 | $ 42,754 | ||
Compensation cost (in years) | 2 years 3 months 18 days | ||||
Stock-based compensation expense | $ 7,400 | $ 6,700 | $ 14,800 | $ 10,200 | |
Previously Issued Performance Awards | Restricted Stock | |||||
Number of Restricted Stock Units Outstanding | |||||
Granted (in shares) | 108,494 |
Equity Incentive Plans - Rest_2
Equity Incentive Plans - Restricted Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2019 | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 58,404 | $ 53,654 | $ 120,561 | $ 97,609 | |
Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Issued (in shares) | 8,792,982 | ||||
Compensation cost (in years) | 3 years | ||||
Number of Restricted Stock Outstanding | |||||
Unvested, Beginning balance (in shares) | 21,917,550 | ||||
Vested (in shares) | (4,352,885) | ||||
Unvested, Ending balance (in shares) | 21,917,550 | 25,032,953 | 25,032,953 | ||
Weighted-Average Grant Date Fair Value | |||||
Beginning balance (in dollars per share) | $ 17.94 | ||||
Vested (in dollars per share) | 16.38 | ||||
Ending balance (in dollars per share) | $ 17.94 | $ 18.84 | $ 18.84 | ||
Aggregate Intrinsic Value | $ 392,515 | $ 378,999 | $ 378,999 | ||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | 7,400 | $ 6,700 | 14,800 | $ 10,200 | |
Unrecognized stock-based compensation expense | $ 30,600 | $ 30,600 | |||
Compensation cost (in years) | 2 years 3 months 18 days | ||||
Number of Restricted Stock Outstanding | |||||
Unvested, Beginning balance (in shares) | 2,267,569 | ||||
Granted and converted (in shares) | 1,399,688 | ||||
Vested (in shares) | (843,321) | ||||
Unvested, Ending balance (in shares) | 2,267,569 | 2,823,936 | 2,823,936 | ||
Weighted-Average Grant Date Fair Value | |||||
Beginning balance (in dollars per share) | $ 18.70 | ||||
Granted and converted (in dollars per share) | 20.30 | ||||
Vested (in dollars per share) | 19.85 | ||||
Ending balance (in dollars per share) | $ 18.70 | $ 19.25 | $ 19.25 | ||
Aggregate Intrinsic Value | $ 40,612 | $ 42,754 | $ 42,754 | ||
Restricted Stock | Performance Vesting at Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Issued (in shares) | 183,902 | 60,716 | 1,291,194 | ||
Award vesting rights (as a percent) | 100.00% | ||||
Restricted Stock | Maximum | Performance Vesting at Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights (as a percent) | 160.00% | ||||
Restricted Stock | Minimum | Performance Vesting at Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights (as a percent) | 0.00% |
Equity Incentive Plans - Stock-
Equity Incentive Plans - Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 58,404 | $ 53,654 | $ 120,561 | $ 97,609 |
Cost of revenue—product | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 954 | 720 | 1,931 | 1,328 |
Cost of revenue—support subscription | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 3,633 | 2,929 | 7,584 | 5,613 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 29,108 | 22,232 | 57,353 | 43,322 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 16,055 | 17,269 | 34,369 | 31,209 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 8,654 | $ 10,504 | $ 19,324 | $ 16,137 |
Net Loss per Share Attributab_3
Net Loss per Share Attributable to Common Stockholders - Net Loss per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (66,018) | $ (60,123) | $ (166,354) | $ (124,427) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted (in shares) | 251,298 | 229,359 | 248,366 | 226,609 |
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share) | $ (0.26) | $ (0.26) | $ (0.67) | $ (0.55) |
Net Loss per Share Attributab_4
Net Loss per Share Attributable to Common Stockholders - Shares Excluded (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share, amount (in shares) | 82,773 | 87,242 | 82,976 | 79,904 |
Stock options to purchase common stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share, amount (in shares) | 31,739 | 40,920 | 32,852 | 42,923 |
Unvested RSUs | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share, amount (in shares) | 25,513 | 19,957 | 24,743 | 19,486 |
Restricted stock and early exercised stock options subject to repurchase | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share, amount (in shares) | 2,917 | 3,327 | 2,777 | 2,585 |
Shares issuable pursuant to ESPP | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share, amount (in shares) | 720 | 1,154 | 720 | 1,127 |
Shares related to Notes | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share, amount (in shares) | 21,884 | 21,884 | 21,884 | 13,783 |
Other Income (Expense), Net - O
Other Income (Expense), Net - Other Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Other Income and Expenses [Abstract] | ||||
Interest income | $ 6,772 | $ 4,783 | $ 13,606 | $ 6,654 |
Interest expense | (6,981) | (6,615) | (13,648) | (8,113) |
Foreign currency transactions losses | (443) | (2,273) | (2,426) | (4,407) |
Other income | 0 | 73 | 0 | 835 |
Total other income (expense), net | $ (652) | $ (4,032) | $ (2,468) | $ (5,031) |
Segment Information - Narrative
Segment Information - Narrative (Details) | 6 Months Ended |
Jul. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of business activities | 1 |
Number of reportable segments | 1 |
Segment Information - Revenue b
Segment Information - Revenue by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total revenue | $ 396,327 | $ 308,884 | $ 723,027 | $ 564,829 |
United States | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total revenue | 294,596 | 229,760 | 523,535 | 414,678 |
Rest of the world | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total revenue | $ 101,731 | $ 79,124 | $ 199,492 | $ 150,151 |
Segment Information - Long-Live
Segment Information - Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total long-lived assets | $ 131,048 | $ 125,353 |
United States | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total long-lived assets | 121,454 | 120,876 |
Rest of the world | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total long-lived assets | $ 9,594 | $ 4,477 |