Cover
Cover - shares | 3 Months Ended | |
May 08, 2022 | Jun. 08, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | May 8, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-37570 | |
Entity Registrant Name | Pure Storage, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-1069557 | |
Entity Address, Address Line One | 650 Castro Street, | |
Entity Address, Address Line Two | Suite 400 | |
Entity Address, City or Town | Mountain View | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94041 | |
City Area Code | 800 | |
Local Phone Number | 379-7873 | |
Title of 12(b) Security | Class A Common Stock, $0.0001 par value per share | |
Trading Symbol | PSTG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 296,021,678 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001474432 | |
Current Fiscal Year End Date | --02-05 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | May 08, 2022 | Feb. 06, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 455,237 | $ 466,199 |
Marketable securities | 836,725 | 947,073 |
Accounts receivable, net of allowance of $945 and $1,030 | 345,933 | 542,144 |
Inventory | 41,301 | 38,942 |
Deferred commissions, current | 67,448 | 81,589 |
Prepaid expenses and other current assets | 127,967 | 116,232 |
Total current assets | 1,874,611 | 2,192,179 |
Property and equipment, net | 207,289 | 195,282 |
Operating lease right-of-use assets | 112,926 | 111,763 |
Deferred commissions, non-current | 163,550 | 164,718 |
Intangible assets, net | 58,595 | 62,646 |
Goodwill | 358,736 | 358,736 |
Restricted cash | 10,544 | 10,544 |
Other assets, non-current | 42,101 | 39,447 |
Total assets | 2,828,352 | 3,135,315 |
Current liabilities: | ||
Accounts payable | 58,668 | 70,704 |
Accrued compensation and benefits | 111,131 | 205,431 |
Accrued expenses and other liabilities | 84,292 | 78,511 |
Operating lease liabilities, current | 37,370 | 35,098 |
Deferred revenue, current | 577,348 | 562,576 |
Debt, current | 572,556 | 0 |
Total current liabilities | 1,441,365 | 952,320 |
Long-term debt | 0 | 786,779 |
Operating lease liabilities, non-current | 91,639 | 93,479 |
Deferred revenue, non-current | 535,125 | 517,296 |
Other liabilities, non-current | 33,129 | 31,105 |
Total liabilities | 2,101,258 | 2,380,979 |
Commitments and contingencies (Note 7) | ||
Stockholders’ equity: | ||
Preferred stock, par value of $0.0001 per share— 20,000 shares authorized; no shares issued and outstanding | 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; 292,633 and 297,132 Class A shares issued and outstanding | 30 | 29 |
Additional paid-in capital | 2,367,577 | 2,470,943 |
Accumulated other comprehensive loss | (18,845) | (8,365) |
Accumulated deficit | (1,621,668) | (1,708,271) |
Total stockholders’ equity | 727,094 | 754,336 |
Total liabilities and stockholders’ equity | $ 2,828,352 | $ 3,135,315 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | May 08, 2022 | Feb. 06, 2022 |
Accounts receivable, allowance | $ 1,030 | $ 945 |
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 |
Shares authorized (in shares) | 2,250,000,000 | 2,250,000,000 |
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) | 297,132,430 | 292,633,000 |
Shares outstanding (in shares) | 297,132,430 | 292,633,000 |
Class B | ||
Par value per share (in dollars per share) | $ 0.0001 | $ 0.0001 |
Shares authorized (in shares) | 250,000,000 | 250,000,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
May 08, 2022 | May 02, 2021 | |
Revenue | $ 620,405 | $ 412,707 |
Cost of revenue | 193,979 | 130,841 |
Gross profit | 426,426 | 281,866 |
Operating expenses: | ||
Research and development | 161,273 | 131,381 |
Sales and marketing | 218,153 | 183,496 |
General and administrative | 51,567 | 43,146 |
Total operating expenses | 430,993 | 358,023 |
Loss from operations | (4,567) | (76,157) |
Other income (expense), net | (6,181) | (4,727) |
Loss before provision for income taxes | (10,748) | (80,884) |
Provision for income taxes | 787 | 3,322 |
Net loss | $ (11,535) | $ (84,206) |
Net loss per share attributable to common stockholders, basic (in USD per share) | $ (0.04) | $ (0.30) |
Net loss per share attributable to common stockholders, diluted (in USD per share) | $ (0.04) | $ (0.30) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic (in shares) | 295,843 | 280,331 |
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted (in shares) | 295,843 | 280,331 |
Product | ||
Revenue | $ 401,161 | $ 249,888 |
Cost of revenue | 125,484 | 79,064 |
Subscription services | ||
Revenue | 219,244 | 162,819 |
Cost of revenue | $ 68,495 | $ 51,777 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
May 08, 2022 | May 02, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (11,535) | $ (84,206) |
Other comprehensive loss: | ||
Unrealized net losses on available-for-sale securities | (10,487) | (2,219) |
Less: reclassification adjustment for net (gains) losses on available-for-sale securities included in net loss | 7 | (423) |
Change in unrealized net losses on available-for-sale securities | (10,480) | (2,642) |
Comprehensive loss | $ (22,015) | $ (86,848) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders’ Equity - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative-effect adjustment from adoption of ASU 2020-06 | Common Stock | Additional Paid-in Capital | Additional Paid-in CapitalCumulative-effect adjustment from adoption of ASU 2020-06 | Accumulated Other Comprehensive Loss/Income | Accumulated Deficit | Accumulated DeficitCumulative-effect adjustment from adoption of ASU 2020-06 | Restricted Stock Units | Restricted Stock UnitsCommon Stock | Restricted Stock UnitsAdditional Paid-in Capital |
Beginning balance (in shares) at Jan. 31, 2021 | 278,363 | ||||||||||
Beginning balance at Jan. 31, 2021 | $ 750,006 | $ 28 | $ 2,307,580 | $ 7,410 | $ (1,565,012) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Issuance of common stock upon exercise of stock options (in shares) | 1,331 | ||||||||||
Issuance of common stock upon exercise of stock options | 7,895 | 7,895 | |||||||||
Stock-based compensation expense | 61,764 | 61,764 | |||||||||
Vesting of restricted stock units (in shares) | 3,082 | ||||||||||
Vesting of restricted stock units | $ 0 | $ 0 | |||||||||
Tax withholding on vesting of equity awards (in shares) | (226) | ||||||||||
Tax withholding on vesting of equity awards | (5,050) | (5,050) | |||||||||
Common stock issued under employee stock purchase plan (in shares) | 2,185 | ||||||||||
Common stock issued under employee stock purchase plan | 17,726 | 17,726 | |||||||||
Repurchases of common stock (in shares) | (1,383) | ||||||||||
Repurchases of common stock | (30,020) | (30,020) | |||||||||
Other comprehensive loss | (2,642) | (2,642) | |||||||||
Net loss | (84,206) | (84,206) | |||||||||
Ending balance (in shares) at May. 02, 2021 | 283,352 | ||||||||||
Ending balance at May. 02, 2021 | 715,473 | $ 28 | 2,359,895 | 4,768 | (1,649,218) | ||||||
Beginning balance (in shares) at Jan. 31, 2021 | 278,363 | ||||||||||
Beginning balance at Jan. 31, 2021 | 750,006 | $ 28 | 2,307,580 | 7,410 | (1,565,012) | ||||||
Ending balance (in shares) at Feb. 06, 2022 | 292,633 | ||||||||||
Ending balance at Feb. 06, 2022 | $ 754,336 | $ (35,127) | $ 29 | 2,470,943 | $ (133,265) | (8,365) | (1,708,271) | $ 98,138 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2020-06 [Member] | ||||||||||
Issuance of common stock upon exercise of stock options (in shares) | 1,233 | ||||||||||
Issuance of common stock upon exercise of stock options | $ 11,433 | 11,433 | |||||||||
Stock-based compensation expense | 75,685 | 75,685 | |||||||||
Vesting of restricted stock units (in shares) | 3,608 | ||||||||||
Vesting of restricted stock units | $ 0 | $ 1 | $ (1) | ||||||||
Tax withholding on vesting of equity awards (in shares) | (295) | ||||||||||
Tax withholding on vesting of equity awards | (10,194) | (10,194) | |||||||||
Common stock issued under employee stock purchase plan (in shares) | 2,087 | ||||||||||
Common stock issued under employee stock purchase plan | 19,396 | 19,396 | |||||||||
Repurchases of common stock (in shares) | (2,134) | ||||||||||
Repurchases of common stock | (66,420) | (66,420) | |||||||||
Other comprehensive loss | (10,480) | (10,480) | |||||||||
Net loss | (11,535) | (11,535) | |||||||||
Ending balance (in shares) at May. 08, 2022 | 297,132 | ||||||||||
Ending balance at May. 08, 2022 | $ 727,094 | $ 30 | $ 2,367,577 | $ (18,845) | $ (1,621,668) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
May 08, 2022 | May 02, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (11,535) | $ (84,206) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 22,663 | 18,826 |
Amortization of debt discount and debt issuance costs | 801 | 7,403 |
Stock-based compensation expense | 74,571 | 61,334 |
Other | 146 | 2,621 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 196,129 | 133,380 |
Inventory | (1,699) | (3,508) |
Deferred commissions | 15,309 | 2,049 |
Prepaid expenses and other assets | (11,742) | (30,407) |
Operating lease right-of-use assets | 7,749 | 7,581 |
Accounts payable | (7,419) | (24,354) |
Accrued compensation and other liabilities | (88,963) | (84,837) |
Operating lease liabilities | (8,480) | (6,897) |
Deferred revenue | 32,602 | 22,463 |
Net cash provided by operating activities | 220,132 | 21,448 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property and equipment | (32,810) | (27,829) |
Purchases of marketable securities | (17,251) | (171,563) |
Sales of marketable securities | 0 | 85,537 |
Maturities of marketable securities | 116,175 | 65,740 |
Net cash (used in) provided by investing activities | 66,114 | (48,115) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net proceeds from exercise of stock options | 11,405 | 8,016 |
Proceeds from issuance of common stock under employee stock purchase plan | 19,396 | 17,726 |
Principal payments on borrowings and finance lease obligations | (251,395) | (344) |
Tax withholding on vesting of equity awards | (10,194) | (5,050) |
Repurchases of common stock | (66,420) | (30,020) |
Net cash used in financing activities | (297,208) | (9,672) |
Net decrease in cash, cash equivalents and restricted cash | (10,962) | (36,339) |
Cash, cash equivalents and restricted cash, beginning of period | 476,743 | 347,691 |
Cash, cash equivalents and restricted cash, end of period | 465,781 | 311,352 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | ||
Cash and cash equivalents | 455,237 | 300,808 |
Restricted cash | 10,544 | 10,544 |
Cash, cash equivalents and restricted cash, end of period | 465,781 | 311,352 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash paid for interest | 715 | 1,455 |
Cash paid for income taxes | 1,848 | 3,750 |
Cash paid for amounts included in the measurement of operating lease liabilities | 11,924 | 8,820 |
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING INFORMATION | ||
Property and equipment purchased but not yet paid | 6,413 | 8,366 |
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ 8,912 | $ 2,495 |
Business Overview
Business Overview | 3 Months Ended |
May 08, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Overview | Business OverviewPure 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. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
May 08, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation We operate using a 52/53 week fiscal year ending on the first Sunday after January 30, which for fiscal 2022 was February 6, 2022 and for fiscal 2023 will be February 5, 2023. The first quarter of fiscal 2022 and 2023 ended on May 2, 2021 and May 8, 2022. Unless otherwise stated, all dates refer to our fiscal year and fiscal quarters. 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. There were no material changes in the first quarter of fiscal 2023 to our significant accounting policies as described in our Annual Report on Form 10-K for fiscal 2022. 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 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 fiscal 2022. 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 2023 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 and assumptions due to risks and uncertainties. Such estimates include, but are not limited to, the determination of standalone selling price for revenue arrangements with multiple performance obligations when the price at which the performance obligation sold separately or observable past transactions are not available, useful lives of intangible assets and property and equipment, the period of benefit for deferred contract costs for commissions, stock-based compensation, provision for income taxes including related reserves, fair value of equity assumed, intangible and tangible assets acquired and liabilities assumed for business combinations. 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. At the end of fiscal 2022 and the first quarter of fiscal 2023, we had restricted cash of $10.5 million. Recently Adopted Accounting Pronouncement In August 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-06, A ccounting for Convertible Instruments and Contracts in an Entity's Own Equity , which simplifies the accounting for certain convertible instruments, amends guidance on derivative scope exceptions for contracts in an entity's own equity, and requires the use of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share (EPS) which results in the inclusion of the effect of share settlement for instruments that may be settled in cash or shares. We adopted the standard as of February 7, 2022 using the modified retrospective basis. Adoption resulted in an adjustment of $133.3 million to reclassify the remaining balance of the conversion feature recorded in additional paid-in capital to convertible senior notes (the Notes) of $35.2 million and accumulated deficit of $98.1 million on the condensed consolidated balance sheet. Accordingly, we no longer carry an equity component of the Notes. There was no impact to diluted EPS as the inclusion of potential shares of common stock related to the Notes was anti-dilutive. For further information, see Note 6, Debt, and Note 11, Net Loss per Share Attributable to Common Stockholders. |
Financial Instruments
Financial Instruments | 3 Months Ended |
May 08, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Financial Instruments | Financial Instruments Fair Value Measurements 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. Cash Equivalents, Marketable Securities and Restricted Cash We measure our cash equivalents, marketable securities, and restricted cash at fair value on a recurring basis. 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. The following tables summarize our cash equivalents, marketable securities and restricted cash by significant investment categories and their classification within the valuation hierarchy at the end of fiscal 2022 and the first quarter of fiscal 2023 (in thousands): At the End of Fiscal 2022 Amortized Gross Unrealized Gross Unrealized Fair Cash Equivalents Marketable Securities Restricted Cash Level 1 Money market accounts $ — $ — $ — $ 29,275 $ 18,731 $ — $ 10,544 Level 2 U.S. government treasury notes 336,303 512 (2,176) 334,639 — 334,639 — U.S. government agencies 49,153 49 (193) 49,009 — 49,009 — Corporate debt securities 491,728 384 (4,731) 487,381 200 487,181 — Foreign government bonds 12,333 37 (17) 12,353 — 12,353 — Asset-backed securities 60,361 111 (453) 60,019 — 60,019 — Municipal bonds 3,950 — (78) 3,872 — 3,872 — Total $ 953,828 $ 1,093 $ (7,648) $ 976,548 $ 18,931 $ 947,073 $ 10,544 At the End of the First Quarter of Fiscal 2023 Amortized Gross Unrealized Gross Unrealized Fair Cash Equivalents Marketable Restricted Cash Level 1 Money market accounts $ — $ — $ — $ 121,080 $ 110,536 $ — $ 10,544 Level 2 U.S. government treasury notes 298,420 86 (4,491) 294,015 10,660 283,355 — U.S. government agencies 41,783 12 (389) 41,406 — 41,406 — Corporate debt securities 460,182 15 (11,019) 449,178 — 449,178 — Foreign government bonds 8,304 2 (51) 8,255 — 8,255 — Asset-backed securities 51,781 17 (1,053) 50,745 — 50,745 — Municipal bonds 3,950 — (164) 3,786 — 3,786 — Total $ 864,420 $ 132 $ (17,167) $ 968,465 $ 121,196 $ 836,725 $ 10,544 The amortized cost and estimated fair value of our marketable securities are shown below by contractual maturity (in thousands): At the End of the First Quarter of Fiscal 2023 Amortized Cost Fair Value Due within one year $ 376,161 $ 374,085 Due in one to five years 476,309 461,426 Due in five to ten years 1,290 1,214 Total $ 853,760 $ 836,725 Unrealized losses on our debt securities have not been recorded into income because we do not intend to sell nor is it more likely than not that we will be required to sell these investments prior to recovery of their amortized cost basis. The decline in fair value of our debt securities is largely due to the rising interest rate environment driven by current market conditions that has resulted in higher credit spreads. The credit ratings associated with our debt securities are mostly unchanged, are highly rated and the issuers continue to make timely principal and interest payments. As a result, there were no credit or non-credit impairment charges recorded in the first quarter of fiscal 2022 and 2023. The following table presents gross unrealized losses and fair values for those investments that were in a continuous unrealized loss position at the end of fiscal 2022 and the first quarter of fiscal 2023, aggregated by investment category (in thousands): At the End of Fiscal 2022 Less than 12 months Greater than 12 months Total Fair Unrealized Fair Unrealized Fair Unrealized U.S. government treasury notes $ 193,359 $ (2,176) $ — $ — $ 193,359 $ (2,176) U.S. government agencies 24,388 (193) — — 24,388 (193) Corporate debt securities 374,223 (4,708) 1,182 (23) 375,405 (4,731) Foreign government bonds 4,098 (17) — — 4,098 (17) Asset-backed securities 37,608 (453) — — 37,608 (453) Municipal bonds 3,872 (78) — — 3,872 (78) Total $ 637,548 $ (7,625) $ 1,182 $ (23) $ 638,730 $ (7,648) At the End of the First Quarter of Fiscal 2023 Less than 12 months Greater than 12 months Total Fair Unrealized Fair Unrealized Fair Unrealized U.S. government treasury notes $ 190,579 $ (4,381) $ 3,488 $ (110) $ 194,067 $ (4,491) U.S. government agencies 29,394 (389) — — 29,394 (389) Corporate debt securities 424,652 (10,555) 13,368 (464) 438,020 (11,019) Foreign government bonds 3,743 (51) — — 3,743 (51) Asset-backed securities 35,011 (1,053) — — 35,011 (1,053) Municipal bonds 3,786 (164) — — 3,786 (164) Total $ 687,165 $ (16,593) $ 16,856 $ (574) $ 704,021 $ (17,167) Realized gains or losses on sale of marketable securities were not significant for all periods presented. Fair Value Measurements of Other Financial Instruments We measure the fair value of our Notes on a quarterly basis for disclosure purposes. We consider the fair value of the Notes at the end of the first quarter of fiscal 2023 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 at the end of the first quarter of fiscal 2023. |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
May 08, 2022 | |
Balance Sheet Components Disclosure [Abstract] | |
Balance Sheet Components | Balance Sheet Components Inventory Inventory consists of the following (in thousands): At the End of Fiscal 2022 First Quarter of Fiscal 2023 Raw materials $ 15,734 $ 17,366 Finished goods 23,208 23,935 Inventory $ 38,942 $ 41,301 Property and Equipment, Net Property and equipment, net consists of the following (in thousands): At the End of Fiscal 2022 First Quarter of Fiscal 2023 Test equipment $ 266,672 $ 281,577 Computer equipment and software 206,053 213,616 Furniture and fixtures 8,652 8,504 Leasehold improvements 47,443 48,431 Capitalized software development costs 8,528 12,020 Total property and equipment 537,348 564,148 Less: accumulated depreciation and amortization (342,066) (356,859) Property and equipment, net $ 195,282 $ 207,289 Depreciation and amortization expense related to property and equipment was $14.5 million and $19.3 million for the first quarter of fiscal 2022 and 2023. Intangible Assets, Net Intangible assets, net consist of the following (in thousands): At the End of Fiscal 2022 First Quarter of Fiscal 2023 Gross Carrying Value Accumulated Amortization Net Carrying Amount Gross Carrying Value Accumulated Amortization Net Carrying Amount Technology patents $ 19,125 $ (13,544) $ 5,581 $ 19,125 $ (13,864) $ 5,261 Developed technology 80,166 (30,304) 49,862 80,166 (33,504) 46,662 Customer relationships 6,459 (1,246) 5,213 6,459 (1,476) 4,983 Trade name 3,623 (1,633) 1,990 3,623 (1,934) 1,689 Intangible assets, net $ 109,373 $ (46,727) $ 62,646 $ 109,373 $ (50,778) $ 58,595 Intangible assets amortization expense was $4.3 million and $4.1 million for the first quarter of fiscal 2022 and 2023. At the end of the first quarter of fiscal 2023, the weighted-average remaining amortization period was 1.9 years for technology patents, 3.7 years for developed technology, 5.4 years for customer relationships, and 1.4 years for trade name. We recorded amortization of technology patents in general and administrative expenses due to their defensive nature, developed technology in cost of product revenue, and customer relationships and trade name in sales and marketing expenses in the condensed consolidated statements of operations. At the end of the first quarter of fiscal 2023, future expected amortization expense for intangible assets is as follows (in thousands): Fiscal Years Ending Estimated Future Remainder of 2023 $ 12,146 2024 15,776 2025 14,991 2026 12,396 2027 2,673 Thereafter 613 Total $ 58,595 Goodwill As of the end of fiscal 2022 and the first quarter of fiscal 2023, goodwill was $358.7 million. There were no impairments to goodwill during the first quarter of fiscal 2022 and 2023. Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consist of the following (in thousands): At the End of Fiscal 2022 First Quarter of Fiscal 2023 Taxes payable $ 6,312 $ 5,477 Accrued marketing 13,257 7,966 Accrued cloud and outside services 6,135 7,300 Supply chain-related accruals 6,991 11,509 Accrued service logistics and professional services 6,244 6,444 Acquisition earn-out 5,211 6,958 Customer deposits from contracts with customers 10,409 9,699 Other accrued liabilities 23,952 28,939 Total accrued expenses and other liabilities $ 78,511 $ 84,292 |
Deferred Revenue and Commission
Deferred Revenue and Commissions | 3 Months Ended |
May 08, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Revenue and Commissions | Deferred Revenue and Commissions Deferred Commissions Deferred commissions consist of incremental costs paid to our sales force to obtain customer contracts. Changes in total deferred commissions during the periods presented are as follows (in thousands): First Quarter of Fiscal 2022 2023 Beginning balance $ 187,924 $ 246,307 Additions 29,189 26,484 Recognition of deferred commissions (31,238) (41,793) Ending balance $ 185,875 $ 230,998 Of the $231.0 million total deferred commissions balance at the end of the first quarter of fiscal 2023, we expect to recognize approximately 29% as commission expense over the next 12 months and the remainder thereafter. There was no impairment related to capitalized commissions for the first quarter of fiscal 2022 and 2023. Deferred Revenue Deferred revenue primarily consists of amounts that have been invoiced but have not yet been recognized as revenue including performance obligations pertaining to subscription services. Changes in total deferred revenue during the periods presented are as follows (in thousands): First Quarter of Fiscal 2022 2023 Beginning balance $ 843,697 $ 1,079,872 Additions 186,851 244,580 Recognition of deferred revenue (164,388) (211,979) Ending balance $ 866,160 $ 1,112,473 Revenue recognized during the first quarter of fiscal 2022 and 2023 from deferred revenue at the beginning of each respective period was $145.1 million and $197.1 million. Remaining Performance Obligations Total remaining performance obligations (RPO) which is contracted but not recognized revenue was $1.4 billion at the end of the first quarter of fiscal 2023. RPO consists of both deferred revenue and non-cancelable amounts that are expected to be invoiced and recognized as revenue in future periods. Product orders are generally cancelable until delivery has occurred, and as such unfulfilled product orders are excluded from RPO. Of the $1.4 billion contracted but not recognized revenue at the end of the first quarter of fiscal 2023, we expect to recognize approximately 47% over the next 12 months, and the remainder thereafter. |
Debt
Debt | 3 Months Ended |
May 08, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt 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. 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 common stock per $1,000 principal amount, which is equal to an initial conversion price of approximately $26.27 per share of 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, if the last reported sale price of our 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 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 common stock, or a combination of cash and shares of our 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. Subsequent to April 19, 2021, we may redeem for cash all or any portion of the Notes, at our option, if the last reported sale price of our 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. As described in Note 2, we adopted ASU 2020-06 effective February 7, 2022 using the modified retrospective method, under which financial results reported in prior periods were not adjusted. Prior to the adoption of this standard, 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 debt instrument that does not have an associated conversion 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 and determined to be $136.3 million. This amount was recorded in additional paid-in capital with the offset representing a debt discount that was amortized to interest expense over the term of the Notes using the effective interest method. Total debt issuance costs incurred of $12.9 million were allocated to the liability and equity components based on their relative carrying amounts, of which $9.8 million was allocated to the liability component as a reduction to the Notes and $3.1 million was allocated to the equity component of the Notes as a reduction to additional paid-in capital. The issuance costs attributable to the liability component is also being amortized to interest method over the term of the Notes using the effective interest method. Upon adoption of ASU 2020-06, we combined the liability and equity components assuming that the instrument was accounted for as a single liability from inception to the date of adoption, resulting in the elimination of the debt discount. Similarly, we combined the liability and equity components of the debt issuance costs, the result of which is presented as a reduction to the Notes. After the adoption of ASU 2020-06, the carrying amount of the Notes was $572.6 million as of the end of the first quarter of fiscal 2023, with principal of $575.0 million, net of debt issuance costs of $2.4 million. The debt issuance costs are being amortized to interest expense using the effective interest method over the remaining term of the Notes. The Notes consisted of the following (in thousands): At the End of Fiscal 2022 First Quarter of Fiscal 2023 Liability: Principal $ 575,000 $ 575,000 Less: debt discount, net of amortization (35,641) — Less: debt issuance costs, net of amortization (2,580) (2,444) Net carrying amount of the Notes $ 536,779 $ 572,556 Stockholders' equity recorded at issuance: 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 at the end of the first quarter of fiscal 2023 was $676.6 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 common stock of $27.38 on the last day of the first quarter of fiscal 2023, the if-converted value of the Notes of $599.2 million was greater than its principal amount. At the end of the first quarter of fiscal 2023, the remaining term of the Notes is approximately 11 months. The following table sets forth total interest expense recognized related to the Notes for the first quarter of fiscal 2022 and 2023 (in thousands): First Quarter of Fiscal 2022 2023 Amortization of debt discount $ 6,760 $ — Amortization of debt issuance costs 490 648 Total amortization of debt discount and debt issuance costs 7,250 648 Contractual interest expense 175 179 Total interest expense related to the Notes $ 7,425 $ 827 Effective interest rate of the liability component 5.6 % 0.6 % 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 up to a total of 21,884,155 shares of our common stock to offset the dilution and/or any cash payments we are required to make in excess of the principal amount upon conversion of the Notes at maturity, with such offset subject to a cap of $39.66 per share (which represents a premium of 100% over the last reported sales price of our common stock on April 4, 2018), subject to certain adjustments (the Cap Price). However, for conversions prior to maturity, the Capped Calls would be settled at their fair value, which may not completely offset, and may be substantially less than, the value of the consideration in excess of the principal amount of the Notes delivered upon such conversion. The cost of the Capped Calls was accounted for as a reduction to additional paid-in capital on the condensed consolidated balance sheet. Impact on Earnings Per Share The Notes will not impact our diluted EPS until the average market price of our 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 if-converted method to compute the potentially dilutive shares of common stock related to the Notes for periods we report net income. Upon conversion at maturity, there will be no economic dilution from the Notes until the average market price of our common stock exceeds the Cap Price of $39.66 per share as exercise of the Capped Calls would offset any dilution from the Notes from the conversion price up to the Cap Price. However, for conversions prior to maturity, the Capped Calls would be settled at their fair value, which is expected to substantially, but not completely, offset the economic dilution from the Notes from the conversion price up to the Cap Price. Capped Calls are excluded from the calculation of diluted earnings per share, as they would be anti-dilutive. Revolving Credit Facility In August 2020, we entered into a Credit Agreement with a consortium of financial institutions and lenders that provides for a five-year, senior secured revolving credit facility of $300.0 million (Credit Facility). Proceeds from the Credit Facility may be used for general corporate purposes and working capital. The Credit Facility expires, absent default or early termination by us, on the earlier of (i) August 24, 2025 or (ii) 91 days prior to the stated maturity of the Notes unless, on such date and each subsequent day until the Notes are paid in full, the sum of our cash, cash equivalents and marketable securities and the aggregate unused commitments then available to us exceed $625.0 million. The annual interest rates applicable to loans under the Credit Facility are, at our option, equal to either a base rate plus a margin ranging from 0.50% to 1.25% or LIBOR (based on one, three or six-month interest periods), subject to a floor of 0%, plus a margin ranging from 1.50% to 2.25%. Interest on revolving loans is payable quarterly in arrears with respect to loans based on the base rate and at the end of an interest period in the case of loans based on LIBOR (or at each three-month interval if the interest period is longer than three months). We are also required to pay a commitment fee on the unused portion of the commitments ranging from 0.25% to 0.40% per annum, payable quarterly in arrears. In February 2022, we repaid, in full, the $250.0 million outstanding under the Credit Facility. The outstanding loan bore weighted-average interest at the one-month LIBOR of approximately 1.61% and 1.61% resulting in interest expense of $1.0 million and $0.3 million during the first quarter of fiscal 2022 and 2023. Loans under the Credit Facility are collateralized by substantially all of our assets and subject to certain restrictions and two financial ratios measured as of the last day of each fiscal quarter: a Consolidated Leverage Ratio not to exceed 4.5:1 and an Interest Coverage Ratio not to be less than 3:1. We were in compliance with all covenants under the Credit Facility at the end of the first quarter of fiscal 2023. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
May 08, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Letters of Credit At the end of fiscal 2022 and the first quarter of fiscal 2023, we had outstanding letters of credit in the aggregate amount of $6.7 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, no material loss contingency has been recorded on our condensed consolidated balance sheet as of the end of the first quarter of fiscal 2023. 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 | 3 Months Ended |
May 08, 2022 | |
Leases [Abstract] | |
Leases | Leases We lease office facilities under non-cancelable operating lease agreements expiring through July 2032. Our lease agreements do not contain any material residual value guarantees or restrictive covenants. During the first quarter of fiscal 2023, we capitalized a data center lease with total undiscounted cash flows of $9.4 million. During fiscal 2022, we entered into an agreement with a third party vendor to finance lease certain test equipment. The amount of test equipment acquired under the finance lease was not material at the end of the first quarter of fiscal 2023. The components of lease costs related to our operating leases during the periods presented were as follows (in thousands): First Quarter of Fiscal 2022 2023 Fixed operating lease cost $ 9,756 $ 10,318 Variable lease cost (1) 1,995 1,890 Short-term lease cost (12 months or less) 1,101 852 Total lease cost $ 12,852 $ 13,060 ____________________________________ (1) Variable lease cost predominantly included common area maintenance charges. At the end of the first quarter of fiscal 2023, the weighted-average remaining lease term for our operating leases was 4.4 years and the weighted-average discount rate for our operating leases was 5.63%. Future lease payments under our non-cancelable operating leases at the end of the first quarter of fiscal 2023 were as follows (in thousands): Fiscal Years Ending Operating Leases The remainder of 2023 $ 31,268 2024 36,179 2025 31,647 2026 22,125 2027 8,266 Thereafter 17,786 Total future lease payments 147,271 Less: imputed interest (18,262) Present value of lease liabilities $ 129,009 In June 2022, we entered into an eight year sublease agreement through July 2030 for a new headquarters facility in Santa Clara, California for total lease obligations, including operating expenses, of approximately $143.0 million. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
May 08, 2022 | |
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. At the end of the first quarter of fiscal 2023, 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, which we refer to as our "common stock", and Class B common stock. At the end of the first quarter of fiscal 2023, 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. At the end of the first quarter of fiscal 2023, 297,132,430 shares of Class A common stock were issued and outstanding. Share Repurchase Program In March 2022, our board of directors authorized the repurchase of up to an additional $250.0 million of our common stock. During the first quarter of fiscal 2023, we repurchased and retired 2,134,290 shares of common stock at an average purchase price of $31.10 per share for an aggregate repurchase price of $66.4 million. At the end of the first quarter of fiscal 2023, $183.6 million remained available for future share repurchases under our current repurchase authorization. |
Equity Incentive Plans
Equity Incentive Plans | 3 Months Ended |
May 08, 2022 | |
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 serves as the successor to our 2009 Plan and provides for grants of incentive stock options to our employees and non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units (RSUs), performance stock awards, performance cash awards, and other forms of stock awards to our employees, directors and consultants. Our equity awards generally vest over a two 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. 2015 Amended and Restated Employee Stock Purchase Plan Under our Amended and Restated 2015 Employee Stock Purchase Plan (2015 ESPP), our board of directors (or a committee thereof) has the authority to establish the length and terms of the offering periods and purchase periods and the purchase price of the shares of common stock which may be purchased under the plan. The current offering terms allow eligible employees to purchase shares of our 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, a dollar cap of $7,500 per purchase period, or $25,000 in any calendar year (as determined under applicable tax rules). The current terms also allow for a 24-month offering period beginning March 16th and September 16th of each year, with each offering period consisting of four 6-month purchase periods, subject to a reset provision. Further, currently, on each purchase date, eligible employees may purchase our common stock at a price per share equal to 85% of the lesser of the fair market value of our common stock (1) on the first trading day of the applicable offering period or (2) the purchase date. Under the reset provision currently authorized, 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 offering would automatically be enrolled in the new offering (ESPP reset), resulting in a modification charge to be recognized over the new offering period. There was no ESPP reset during the first quarter of fiscal 2022 and 2023. Stock-based compensation expense related to our 2015 ESPP was $7.6 million and $6.9 million during the first quarter of fiscal 2022 and 2023. At the end of the first quarter of fiscal 2023, total unrecognized stock-based compensation cost related to our 2015 ESPP was $32.4 million, which is expected to be recognized over a weighted-average period of 1.7 years. Stock Options A summary of the stock option activity under our equity incentive plans and related information is as follows: Options Outstanding Number of Weighted- Weighted- Aggregate Balance at the end of fiscal 2022 12,268,938 $ 10.25 3.5 $ 198,266 Options exercised (1,232,899) 9.27 Options forfeited (8,690) 1.88 Balance at the end of the first quarter of fiscal 2023 11,027,349 $ 10.37 3.4 $ 187,989 Vested and exercisable at the end of the first quarter of fiscal 2023 10,484,441 $ 10.77 3.2 $ 174,121 The aggregate intrinsic value of options vested and exercisable at the end of the first quarter of fiscal 2023 is calculated based on the difference between the exercise price and the closing price of $27.38 of our common stock on the last day of the first quarter of fiscal 2023. Stock-based compensation expense recognized related to stock options was $2.3 million and $1.5 million during the first quarter of fiscal 2022 and 2023. At the end of the first quarter of fiscal 2023, total unrecognized employee stock-based compensation cost related to outstanding options was $6.0 million, which is expected to be recognized over a weighted-average period of 1.4 years. RSUs and Performance RSUs (PRSUs) A summary of the RSU and PRSU activity under our equity incentive plans and related information is as follows: Number of Weighted- Aggregate Unvested balance at the end of fiscal 2022 28,712,878 $ 19.53 $ 757,446 Granted 9,992,401 31.02 Vested (3,608,468) 18.75 Forfeited (1,002,438) 19.72 Unvested balance at the end of the first quarter of fiscal 2023 34,094,373 $ 22.97 $ 933,532 RSUs granted during the first quarter of fiscal 2023, include PRSUs for 1,147,187 shares of common stock, at a target percentage of 100%, with both performance and service vesting conditions, from 0% to 150% 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. In addition, during the first quarter of fiscal 2023, we issued 647,586 PRSUs and canceled 34,960 PRSUs based on the actual attainment of fiscal 2022 performance conditions for previously issued PRSUs, with the PRSUs issued subject to service conditions through the remaining vesting periods. Stock-based compensation expense recognized related to RSUs and PRSUs was $51.6 million and $66.2 million during the first quarter of fiscal 2022 and 2023. At the end of the first quarter of fiscal 2023, total unrecognized employee stock-based compensation cost related to unvested RSUs and PRSUs was $721.6 million, which is expected to be recognized over a weighted-average period of 3.0 years. Restricted Stock A summary of the restricted stock activity under our 2015 Plan and related information is as follows: Number of Weighted- Aggregate Unvested balance at the end of fiscal 2022 54,977 $ 20.02 $ 1,450 Vested (54,977) 20.02 Forfeited — — Unvested balance at the end of the first quarter of fiscal 2023 — $ — $ — Stock-based compensation expense recognized related to restricted stock was $0.6 million and de minimis during the first quarter of fiscal 2022 and 2023. 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): First Quarter of Fiscal 2022 2023 Cost of revenue—product $ 1,347 $ 1,863 Cost of revenue—subscription services 4,406 5,356 Research and development 30,421 36,517 Sales and marketing 16,808 18,345 General and administrative 8,352 12,490 Total stock-based compensation expense $ 61,334 $ 74,571 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 | 3 Months Ended |
May 08, 2022 | |
Earnings Per Share [Abstract] | |
Net Loss per Share Attributable to Common Stockholders | Net Loss per Share Attributable to Common StockholdersBasic 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 and PRSUs, unvested restricted stock, the shares underlying the conversion option in our Notes to the extent dilutive, and common stock issuable pursuant to the ESPP. The adoption of ASU 2020-06 eliminates the treasury stock method and instead requires the application of the if-converted method to calculate the impact of our Notes on diluted EPS. As we had net losses in both the first quarter of fiscal 2022 and 2023, all potentially dilutive common stock equivalents, including from our Notes, 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): First Quarter of Fiscal 2022 2023 Net loss $ (84,206) $ (11,535) Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 280,331 295,843 Net loss per share attributable to common stockholders, basic and diluted $ (0.30) $ (0.04) 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): First Quarter of Fiscal 2022 2023 Stock options to purchase common stock 17,856 11,555 Unvested RSUs and PRSUs 32,876 29,150 Unvested restricted stock 471 25 Shares related to convertible senior notes 21,884 21,884 Shares issuable pursuant to the ESPP 1,049 610 Total 74,136 63,224 |
Other Income (Expense), Net
Other Income (Expense), Net | 3 Months Ended |
May 08, 2022 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Other Income (Expense), Net Other income (expense), net consists of the following (in thousands): First Quarter of Fiscal 2022 2023 Interest income (1) $ 2,774 $ 1,956 Interest expense (2) (8,659) (1,482) Foreign currency transactions gains (losses) 36 (6,399) Other income (expense) 1,122 (256) Total other income (expense), net $ (4,727) $ (6,181) ____________________________________ (1) Interest income includes interest income related to our cash, cash equivalents and marketable securities and non-cash interest income (expense) related to accretion (amortization) of the discount (premium) on marketable securities. (2) Interest expense in the first quarter of fiscal 2022 includes non-cash interest expense related to amortization of the debt discount and debt issuance costs and the contractual interest expense related to our debt. Interest expense in the first quarter of fiscal 2023 includes non-cash interest expense related to debt issuance costs and the contractual interest expense related to our debt. |
Income Taxes
Income Taxes | 3 Months Ended |
May 08, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our provision for income tax primarily reflects 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, U.S. taxes on foreign income and stock-based compensation expense. At the end of the first quarter of fiscal 2023, there were no material changes to either the nature or the amounts of the uncertain tax positions previously determined for fiscal 2022. |
Segment Information
Segment Information | 3 Months Ended |
May 08, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our chief operating decision maker is our Chief Executive Officer . Our chief operating decision maker reviews financial information presented on a consolidated basis fo r purposes of allocating resources and evaluating financial performance. 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): First Quarter of Fiscal 2022 2023 United States $ 295,107 $ 464,535 Rest of the world 117,600 155,870 Total revenue $ 412,707 $ 620,405 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): At the End of Fiscal 2022 First Quarter of Fiscal 2023 United States $ 187,228 $ 198,907 Rest of the world 8,054 8,382 Total long-lived assets $ 195,282 $ 207,289 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies - (Policies) | 3 Months Ended |
May 08, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation We operate using a 52/53 week fiscal year ending on the first Sunday after January 30, which for fiscal 2022 was February 6, 2022 and for fiscal 2023 will be February 5, 2023. The first quarter of fiscal 2022 and 2023 ended on May 2, 2021 and May 8, 2022. Unless otherwise stated, all dates refer to our fiscal year and fiscal quarters. 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. There were no material changes in the first quarter of fiscal 2023 to our significant accounting policies as described in our Annual Report on Form 10-K for fiscal 2022. |
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 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 fiscal 2022. 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 2023 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 and assumptions due to risks and uncertainties. Such estimates include, but are not limited to, the determination of standalone selling price for revenue arrangements with multiple performance obligations when the price at which the performance obligation sold separately or observable past transactions are not available, useful lives of intangible assets and property and equipment, the period of benefit for deferred contract costs for commissions, stock-based compensation, provision for income taxes including related reserves, fair value of equity assumed, intangible and tangible assets acquired and liabilities assumed for business combinations. 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 CashRestricted cash is comprised of cash collateral for letters of credit related to our leases and for a vendor credit card program. |
Recent Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncement In August 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-06, A ccounting for Convertible Instruments and Contracts in an Entity's Own Equity |
Fair Value Measurements | Fair Value Measurements 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. |
Financial Instruments - (Tables
Financial Instruments - (Tables) | 3 Months Ended |
May 08, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Cash Equivalents, Marketable Securities and Restricted Cash | The following tables summarize our cash equivalents, marketable securities and restricted cash by significant investment categories and their classification within the valuation hierarchy at the end of fiscal 2022 and the first quarter of fiscal 2023 (in thousands): At the End of Fiscal 2022 Amortized Gross Unrealized Gross Unrealized Fair Cash Equivalents Marketable Securities Restricted Cash Level 1 Money market accounts $ — $ — $ — $ 29,275 $ 18,731 $ — $ 10,544 Level 2 U.S. government treasury notes 336,303 512 (2,176) 334,639 — 334,639 — U.S. government agencies 49,153 49 (193) 49,009 — 49,009 — Corporate debt securities 491,728 384 (4,731) 487,381 200 487,181 — Foreign government bonds 12,333 37 (17) 12,353 — 12,353 — Asset-backed securities 60,361 111 (453) 60,019 — 60,019 — Municipal bonds 3,950 — (78) 3,872 — 3,872 — Total $ 953,828 $ 1,093 $ (7,648) $ 976,548 $ 18,931 $ 947,073 $ 10,544 At the End of the First Quarter of Fiscal 2023 Amortized Gross Unrealized Gross Unrealized Fair Cash Equivalents Marketable Restricted Cash Level 1 Money market accounts $ — $ — $ — $ 121,080 $ 110,536 $ — $ 10,544 Level 2 U.S. government treasury notes 298,420 86 (4,491) 294,015 10,660 283,355 — U.S. government agencies 41,783 12 (389) 41,406 — 41,406 — Corporate debt securities 460,182 15 (11,019) 449,178 — 449,178 — Foreign government bonds 8,304 2 (51) 8,255 — 8,255 — Asset-backed securities 51,781 17 (1,053) 50,745 — 50,745 — Municipal bonds 3,950 — (164) 3,786 — 3,786 — Total $ 864,420 $ 132 $ (17,167) $ 968,465 $ 121,196 $ 836,725 $ 10,544 |
Schedule of 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): At the End of the First Quarter of Fiscal 2023 Amortized Cost Fair Value Due within one year $ 376,161 $ 374,085 Due in one to five years 476,309 461,426 Due in five to ten years 1,290 1,214 Total $ 853,760 $ 836,725 |
Schedule of 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 at the end of fiscal 2022 and the first quarter of fiscal 2023, aggregated by investment category (in thousands): At the End of Fiscal 2022 Less than 12 months Greater than 12 months Total Fair Unrealized Fair Unrealized Fair Unrealized U.S. government treasury notes $ 193,359 $ (2,176) $ — $ — $ 193,359 $ (2,176) U.S. government agencies 24,388 (193) — — 24,388 (193) Corporate debt securities 374,223 (4,708) 1,182 (23) 375,405 (4,731) Foreign government bonds 4,098 (17) — — 4,098 (17) Asset-backed securities 37,608 (453) — — 37,608 (453) Municipal bonds 3,872 (78) — — 3,872 (78) Total $ 637,548 $ (7,625) $ 1,182 $ (23) $ 638,730 $ (7,648) At the End of the First Quarter of Fiscal 2023 Less than 12 months Greater than 12 months Total Fair Unrealized Fair Unrealized Fair Unrealized U.S. government treasury notes $ 190,579 $ (4,381) $ 3,488 $ (110) $ 194,067 $ (4,491) U.S. government agencies 29,394 (389) — — 29,394 (389) Corporate debt securities 424,652 (10,555) 13,368 (464) 438,020 (11,019) Foreign government bonds 3,743 (51) — — 3,743 (51) Asset-backed securities 35,011 (1,053) — — 35,011 (1,053) Municipal bonds 3,786 (164) — — 3,786 (164) Total $ 687,165 $ (16,593) $ 16,856 $ (574) $ 704,021 $ (17,167) |
Balance Sheet Components - (Tab
Balance Sheet Components - (Tables) | 3 Months Ended |
May 08, 2022 | |
Balance Sheet Components Disclosure [Abstract] | |
Schedule of Inventory | Inventory consists of the following (in thousands): At the End of Fiscal 2022 First Quarter of Fiscal 2023 Raw materials $ 15,734 $ 17,366 Finished goods 23,208 23,935 Inventory $ 38,942 $ 41,301 |
Schedule of Property and Equipment, Net | Property and equipment, net consists of the following (in thousands): At the End of Fiscal 2022 First Quarter of Fiscal 2023 Test equipment $ 266,672 $ 281,577 Computer equipment and software 206,053 213,616 Furniture and fixtures 8,652 8,504 Leasehold improvements 47,443 48,431 Capitalized software development costs 8,528 12,020 Total property and equipment 537,348 564,148 Less: accumulated depreciation and amortization (342,066) (356,859) Property and equipment, net $ 195,282 $ 207,289 |
Schedule of Intangible Assets, Net | Intangible assets, net consist of the following (in thousands): At the End of Fiscal 2022 First Quarter of Fiscal 2023 Gross Carrying Value Accumulated Amortization Net Carrying Amount Gross Carrying Value Accumulated Amortization Net Carrying Amount Technology patents $ 19,125 $ (13,544) $ 5,581 $ 19,125 $ (13,864) $ 5,261 Developed technology 80,166 (30,304) 49,862 80,166 (33,504) 46,662 Customer relationships 6,459 (1,246) 5,213 6,459 (1,476) 4,983 Trade name 3,623 (1,633) 1,990 3,623 (1,934) 1,689 Intangible assets, net $ 109,373 $ (46,727) $ 62,646 $ 109,373 $ (50,778) $ 58,595 |
Schedule of Expected Amortization Expenses for Intangible Assets | At the end of the first quarter of fiscal 2023, future expected amortization expense for intangible assets is as follows (in thousands): Fiscal Years Ending Estimated Future Remainder of 2023 $ 12,146 2024 15,776 2025 14,991 2026 12,396 2027 2,673 Thereafter 613 Total $ 58,595 |
Schedule of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consist of the following (in thousands): At the End of Fiscal 2022 First Quarter of Fiscal 2023 Taxes payable $ 6,312 $ 5,477 Accrued marketing 13,257 7,966 Accrued cloud and outside services 6,135 7,300 Supply chain-related accruals 6,991 11,509 Accrued service logistics and professional services 6,244 6,444 Acquisition earn-out 5,211 6,958 Customer deposits from contracts with customers 10,409 9,699 Other accrued liabilities 23,952 28,939 Total accrued expenses and other liabilities $ 78,511 $ 84,292 |
Deferred Revenue and Commissi_2
Deferred Revenue and Commissions - (Tables) | 3 Months Ended |
May 08, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Deferred Commissions | Changes in total deferred commissions during the periods presented are as follows (in thousands): First Quarter of Fiscal 2022 2023 Beginning balance $ 187,924 $ 246,307 Additions 29,189 26,484 Recognition of deferred commissions (31,238) (41,793) Ending balance $ 185,875 $ 230,998 |
Schedule of Deferred Revenue | Changes in total deferred revenue during the periods presented are as follows (in thousands): First Quarter of Fiscal 2022 2023 Beginning balance $ 843,697 $ 1,079,872 Additions 186,851 244,580 Recognition of deferred revenue (164,388) (211,979) Ending balance $ 866,160 $ 1,112,473 |
Debt - (Tables)
Debt - (Tables) | 3 Months Ended |
May 08, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Debt | The Notes consisted of the following (in thousands): At the End of Fiscal 2022 First Quarter of Fiscal 2023 Liability: Principal $ 575,000 $ 575,000 Less: debt discount, net of amortization (35,641) — Less: debt issuance costs, net of amortization (2,580) (2,444) Net carrying amount of the Notes $ 536,779 $ 572,556 Stockholders' equity recorded at issuance: Allocated value of the conversion feature $ 136,333 $ — Less: debt issuance costs (3,068) — Additional paid-in capital $ 133,265 $ — |
Schedule of Interest Expense | The following table sets forth total interest expense recognized related to the Notes for the first quarter of fiscal 2022 and 2023 (in thousands): First Quarter of Fiscal 2022 2023 Amortization of debt discount $ 6,760 $ — Amortization of debt issuance costs 490 648 Total amortization of debt discount and debt issuance costs 7,250 648 Contractual interest expense 175 179 Total interest expense related to the Notes $ 7,425 $ 827 Effective interest rate of the liability component 5.6 % 0.6 % |
Leases - (Tables)
Leases - (Tables) | 3 Months Ended |
May 08, 2022 | |
Leases [Abstract] | |
Components of Lease Cost | The components of lease costs related to our operating leases during the periods presented were as follows (in thousands): First Quarter of Fiscal 2022 2023 Fixed operating lease cost $ 9,756 $ 10,318 Variable lease cost (1) 1,995 1,890 Short-term lease cost (12 months or less) 1,101 852 Total lease cost $ 12,852 $ 13,060 ____________________________________ (1) Variable lease cost predominantly included common area maintenance charges. |
Schedule of Future Operating Lease Payments | Future lease payments under our non-cancelable operating leases at the end of the first quarter of fiscal 2023 were as follows (in thousands): Fiscal Years Ending Operating Leases The remainder of 2023 $ 31,268 2024 36,179 2025 31,647 2026 22,125 2027 8,266 Thereafter 17,786 Total future lease payments 147,271 Less: imputed interest (18,262) Present value of lease liabilities $ 129,009 |
Equity Incentive Plans - (Table
Equity Incentive Plans - (Tables) | 3 Months Ended |
May 08, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity Under Equity Incentive Plans and Related Information | A summary of the stock option activity under our equity incentive plans and related information is as follows: Options Outstanding Number of Weighted- Weighted- Aggregate Balance at the end of fiscal 2022 12,268,938 $ 10.25 3.5 $ 198,266 Options exercised (1,232,899) 9.27 Options forfeited (8,690) 1.88 Balance at the end of the first quarter of fiscal 2023 11,027,349 $ 10.37 3.4 $ 187,989 Vested and exercisable at the end of the first quarter of fiscal 2023 10,484,441 $ 10.77 3.2 $ 174,121 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | A summary of the RSU and PRSU activity under our equity incentive plans and related information is as follows: Number of Weighted- Aggregate Unvested balance at the end of fiscal 2022 28,712,878 $ 19.53 $ 757,446 Granted 9,992,401 31.02 Vested (3,608,468) 18.75 Forfeited (1,002,438) 19.72 Unvested balance at the end of the first quarter of fiscal 2023 34,094,373 $ 22.97 $ 933,532 |
Schedule of Restricted Stock Activity | A summary of the restricted stock activity under our 2015 Plan and related information is as follows: Number of Weighted- Aggregate Unvested balance at the end of fiscal 2022 54,977 $ 20.02 $ 1,450 Vested (54,977) 20.02 Forfeited — — Unvested balance at the end of the first quarter of fiscal 2023 — $ — $ — |
Summarizes the Components of Stock-Based Compensation | The following table summarizes the components of stock-based compensation expense recognized in the condensed consolidated statements of operations (in thousands): First Quarter of Fiscal 2022 2023 Cost of revenue—product $ 1,347 $ 1,863 Cost of revenue—subscription services 4,406 5,356 Research and development 30,421 36,517 Sales and marketing 16,808 18,345 General and administrative 8,352 12,490 Total stock-based compensation expense $ 61,334 $ 74,571 |
Net Loss per Share Attributab_2
Net Loss per Share Attributable to Common Stockholders - (Tables) | 3 Months Ended |
May 08, 2022 | |
Earnings Per Share [Abstract] | |
Summary of Computation of Basic and Diluted Net Loss per Share Attributable to Common Stockholders | 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): First Quarter of Fiscal 2022 2023 Net loss $ (84,206) $ (11,535) Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 280,331 295,843 Net loss per share attributable to common stockholders, basic and diluted $ (0.30) $ (0.04) |
Summary of Weighted-average Outstanding Shares Excluded from Computation of Diluted Net Loss per Share Attributable to Common Stockholders | 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): First Quarter of Fiscal 2022 2023 Stock options to purchase common stock 17,856 11,555 Unvested RSUs and PRSUs 32,876 29,150 Unvested restricted stock 471 25 Shares related to convertible senior notes 21,884 21,884 Shares issuable pursuant to the ESPP 1,049 610 Total 74,136 63,224 |
Other Income (Expense), Net - (
Other Income (Expense), Net - (Tables) | 3 Months Ended |
May 08, 2022 | |
Other Income and Expenses [Abstract] | |
Summary of Other Income (Expense) | Other income (expense), net consists of the following (in thousands): First Quarter of Fiscal 2022 2023 Interest income (1) $ 2,774 $ 1,956 Interest expense (2) (8,659) (1,482) Foreign currency transactions gains (losses) 36 (6,399) Other income (expense) 1,122 (256) Total other income (expense), net $ (4,727) $ (6,181) ____________________________________ (1) Interest income includes interest income related to our cash, cash equivalents and marketable securities and non-cash interest income (expense) related to accretion (amortization) of the discount (premium) on marketable securities. (2) Interest expense in the first quarter of fiscal 2022 includes non-cash interest expense related to amortization of the debt discount and debt issuance costs and the contractual interest expense related to our debt. Interest expense in the first quarter of fiscal 2023 includes non-cash interest expense related to debt issuance costs and the contractual interest expense related to our debt. |
Segment Information - (Tables)
Segment Information - (Tables) | 3 Months Ended |
May 08, 2022 | |
Segment Reporting [Abstract] | |
Schedule of 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): First Quarter of Fiscal 2022 2023 United States $ 295,107 $ 464,535 Rest of the world 117,600 155,870 Total revenue $ 412,707 $ 620,405 |
Schedule of 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): At the End of Fiscal 2022 First Quarter of Fiscal 2023 United States $ 187,228 $ 198,907 Rest of the world 8,054 8,382 Total long-lived assets $ 195,282 $ 207,289 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | Feb. 07, 2022 | May 08, 2022 | Feb. 06, 2022 | May 02, 2021 |
Accounting Policies [Abstract] | ||||
Restricted cash | $ 10,544 | $ 10,544 | $ 10,544 | |
Reduce in additional paid-in capital | $ 133,300 | |||
Debt instrument increase net | 35,200 | |||
Accumulated deficit | $ 98,100 | $ 1,621,668 | $ 1,708,271 |
Financial Instruments - Cash Eq
Financial Instruments - Cash Equivalents, Marketable Securities and Restricted Cash (Details) - USD ($) $ in Thousands | May 08, 2022 | Feb. 06, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 836,725 | |
Cash Equivalents | 121,196 | $ 18,931 |
Marketable securities | 836,725 | 947,073 |
Restricted Cash | 10,544 | 10,544 |
Amortized Cost | 864,420 | 953,828 |
Total gross unrealized gains | 132 | 1,093 |
Total gross unrealized losses | (17,167) | (7,648) |
Total fair value | 968,465 | 976,548 |
Level 1 | Money market accounts | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 121,080 | 29,275 |
Cash Equivalents | 110,536 | 18,731 |
Marketable securities | 0 | 0 |
Restricted Cash | 10,544 | 10,544 |
Level 2 | U.S. government treasury notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total | 298,420 | 336,303 |
Gross Unrealized Gains | 86 | 512 |
Gross Unrealized Losses | (4,491) | (2,176) |
Fair Value | 294,015 | 334,639 |
Cash Equivalents | 10,660 | 0 |
Marketable securities | 283,355 | 334,639 |
Restricted Cash | 0 | 0 |
Level 2 | U.S. government agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total | 41,783 | 49,153 |
Gross Unrealized Gains | 12 | 49 |
Gross Unrealized Losses | (389) | (193) |
Fair Value | 41,406 | 49,009 |
Cash Equivalents | 0 | 0 |
Marketable securities | 41,406 | 49,009 |
Restricted Cash | 0 | 0 |
Level 2 | Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total | 460,182 | 491,728 |
Gross Unrealized Gains | 15 | 384 |
Gross Unrealized Losses | (11,019) | (4,731) |
Fair Value | 449,178 | 487,381 |
Cash Equivalents | 0 | 200 |
Marketable securities | 449,178 | 487,181 |
Restricted Cash | 0 | 0 |
Level 2 | Foreign government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total | 8,304 | 12,333 |
Gross Unrealized Gains | 2 | 37 |
Gross Unrealized Losses | (51) | (17) |
Fair Value | 8,255 | 12,353 |
Cash Equivalents | 0 | 0 |
Marketable securities | 8,255 | 12,353 |
Restricted Cash | 0 | 0 |
Level 2 | Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total | 51,781 | 60,361 |
Gross Unrealized Gains | 17 | 111 |
Gross Unrealized Losses | (1,053) | (453) |
Fair Value | 50,745 | 60,019 |
Cash Equivalents | 0 | 0 |
Marketable securities | 50,745 | 60,019 |
Restricted Cash | 0 | 0 |
Level 2 | Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total | 3,950 | 3,950 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (164) | (78) |
Fair Value | 3,786 | 3,872 |
Cash Equivalents | 0 | 0 |
Marketable securities | 3,786 | 3,872 |
Restricted Cash | $ 0 | $ 0 |
Financial Instruments - Amortiz
Financial Instruments - Amortized Cost and Estimated Fair Value (Details) - USD ($) | May 08, 2022 | May 02, 2021 |
Amortized Cost | ||
Due within one year | $ 376,161,000 | |
Due in one to five years | 476,309,000 | |
Due in five to ten years | 1,290,000 | |
Total | 853,760,000 | |
Fair Value | ||
Due within one year | 374,085,000 | |
Due in one to five years | 461,426,000 | |
Due in five to ten years | 1,214,000 | |
Total | 836,725,000 | |
Impairment charge for unrealized losses | $ 0 | $ 0 |
Financial Instruments - Gross U
Financial Instruments - Gross Unrealized Losses and Fair Values (Details) - USD ($) $ in Thousands | May 08, 2022 | Feb. 06, 2022 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Fair Value, Less than 12 months | $ 687,165 | $ 637,548 |
Unrealized Loss, Less than 12 Months | (16,593) | (7,625) |
Fair Value, Greater than 12 months | 16,856 | 1,182 |
Unrealized Loss, Greater than 12 months | (574) | (23) |
Fair Value, Total | 704,021 | 638,730 |
Unrealized Loss, Total | (17,167) | (7,648) |
U.S. government treasury notes | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Fair Value, Less than 12 months | 190,579 | 193,359 |
Unrealized Loss, Less than 12 Months | (4,381) | (2,176) |
Fair Value, Greater than 12 months | 3,488 | 0 |
Unrealized Loss, Greater than 12 months | (110) | 0 |
Fair Value, Total | 194,067 | 193,359 |
Unrealized Loss, Total | (4,491) | (2,176) |
U.S. government agencies | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Fair Value, Less than 12 months | 29,394 | 24,388 |
Unrealized Loss, Less than 12 Months | (389) | (193) |
Fair Value, Greater than 12 months | 0 | 0 |
Unrealized Loss, Greater than 12 months | 0 | 0 |
Fair Value, Total | 29,394 | 24,388 |
Unrealized Loss, Total | (389) | (193) |
Corporate debt securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Fair Value, Less than 12 months | 424,652 | 374,223 |
Unrealized Loss, Less than 12 Months | (10,555) | (4,708) |
Fair Value, Greater than 12 months | 13,368 | 1,182 |
Unrealized Loss, Greater than 12 months | (464) | (23) |
Fair Value, Total | 438,020 | 375,405 |
Unrealized Loss, Total | (11,019) | (4,731) |
Foreign government bonds | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Fair Value, Less than 12 months | 3,743 | 4,098 |
Unrealized Loss, Less than 12 Months | (51) | (17) |
Fair Value, Greater than 12 months | 0 | 0 |
Unrealized Loss, Greater than 12 months | 0 | 0 |
Fair Value, Total | 3,743 | 4,098 |
Unrealized Loss, Total | (51) | (17) |
Asset-backed securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Fair Value, Less than 12 months | 35,011 | 37,608 |
Unrealized Loss, Less than 12 Months | (1,053) | (453) |
Fair Value, Greater than 12 months | 0 | 0 |
Unrealized Loss, Greater than 12 months | 0 | 0 |
Fair Value, Total | 35,011 | 37,608 |
Unrealized Loss, Total | (1,053) | (453) |
Municipal bonds | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Fair Value, Less than 12 months | 3,786 | 3,872 |
Unrealized Loss, Less than 12 Months | (164) | (78) |
Fair Value, Greater than 12 months | 0 | 0 |
Unrealized Loss, Greater than 12 months | 0 | 0 |
Fair Value, Total | 3,786 | 3,872 |
Unrealized Loss, Total | $ (164) | $ (78) |
Balance Sheet Components - Inve
Balance Sheet Components - Inventory (Details) - USD ($) $ in Thousands | May 08, 2022 | Feb. 06, 2022 |
Balance Sheet Components Disclosure [Abstract] | ||
Raw materials | $ 17,366 | $ 15,734 |
Finished goods | 23,935 | 23,208 |
Inventory | $ 41,301 | $ 38,942 |
Balance Sheet Components - Prop
Balance Sheet Components - Property and Equipment, Net (Details) - USD ($) $ in Thousands | May 08, 2022 | Feb. 06, 2022 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 564,148 | $ 537,348 |
Less: accumulated depreciation and amortization | (356,859) | (342,066) |
Property and equipment, net | 207,289 | 195,282 |
Test equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 281,577 | 266,672 |
Computer equipment and software | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 213,616 | 206,053 |
Furniture and fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 8,504 | 8,652 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 48,431 | 47,443 |
Capitalized software development costs | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 12,020 | $ 8,528 |
Balance Sheet Components - Narr
Balance Sheet Components - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 08, 2022 | May 02, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Depreciation and amortization | $ 19.3 | $ 14.5 |
Intangible assets amortization expense | $ 4.1 | $ 4.3 |
Technology patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life (in years) | 1 year 10 months 24 days | |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life (in years) | 3 years 8 months 12 days | |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life (in years) | 5 years 4 months 24 days | |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life (in years) | 1 year 4 months 24 days |
Balance Sheet Components - Inta
Balance Sheet Components - Intangible Assets, Net (Details) - USD ($) $ in Thousands | May 08, 2022 | Feb. 06, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 109,373 | $ 109,373 |
Accumulated Amortization | (50,778) | (46,727) |
Net Carrying Amount | 58,595 | 62,646 |
Technology patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 19,125 | 19,125 |
Accumulated Amortization | (13,864) | (13,544) |
Net Carrying Amount | 5,261 | 5,581 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 80,166 | 80,166 |
Accumulated Amortization | (33,504) | (30,304) |
Net Carrying Amount | 46,662 | 49,862 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 6,459 | 6,459 |
Accumulated Amortization | (1,476) | (1,246) |
Net Carrying Amount | 4,983 | 5,213 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 3,623 | 3,623 |
Accumulated Amortization | (1,934) | (1,633) |
Net Carrying Amount | $ 1,689 | $ 1,990 |
Balance Sheet Components - Expe
Balance Sheet Components - Expected Amortization Expenses for Intangible Assets (Details) - USD ($) $ in Thousands | May 08, 2022 | Feb. 06, 2022 |
Balance Sheet Components Disclosure [Abstract] | ||
Remainder of 2023 | $ 12,146 | |
2024 | 15,776 | |
2025 | 14,991 | |
2026 | 12,396 | |
2027 | 2,673 | |
Thereafter | 613 | |
Net Carrying Amount | $ 58,595 | $ 62,646 |
Balance Sheet Components - Good
Balance Sheet Components - Goodwill (Details) - USD ($) | 3 Months Ended | ||
May 08, 2022 | May 02, 2021 | Feb. 06, 2022 | |
Balance Sheet Components Disclosure [Abstract] | |||
Goodwill | $ 358,736,000 | $ 358,736,000 | |
Impairments to goodwill | $ 0 | $ 0 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | May 08, 2022 | Feb. 06, 2022 |
Balance Sheet Components Disclosure [Abstract] | ||
Taxes payable | $ 5,477 | $ 6,312 |
Accrued marketing | 7,966 | 13,257 |
Accrued cloud and outside services | 7,300 | 6,135 |
Supply chain-related accruals | 11,509 | 6,991 |
Accrued service logistics and professional services | 6,444 | 6,244 |
Acquisition earn-out | 6,958 | 5,211 |
Customer deposits from contracts with customers | 9,699 | 10,409 |
Other accrued liabilities | 28,939 | 23,952 |
Total accrued expenses and other liabilities | $ 84,292 | $ 78,511 |
Deferred Revenue and Commissi_3
Deferred Revenue and Commissions - Deferred Commissions (Details) - USD ($) | 3 Months Ended | |
May 08, 2022 | May 02, 2021 | |
Deferred Commissions [Roll Forward] | ||
Beginning balance | $ 246,307,000 | $ 187,924,000 |
Additions | 26,484,000 | 29,189,000 |
Recognition of deferred commissions | (41,793,000) | (31,238,000) |
Ending balance | $ 230,998,000 | 185,875,000 |
Commission expected to be recognized over the next 12 months (percent) | 29.00% | |
Impairment of capitalized commissions | $ 0 | $ 0 |
Deferred Revenue and Commissi_4
Deferred Revenue and Commissions - Deferred Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 08, 2022 | May 02, 2021 | |
Contract Liability | ||
Additions | $ 26,484 | $ 29,189 |
Recognition of deferred revenue | (41,793) | (31,238) |
Product Revenue and Support Subscription Revenue | ||
Contract Liability | ||
Beginning balance | 1,079,872 | 843,697 |
Additions | 244,580 | 186,851 |
Recognition of deferred revenue | (211,979) | (164,388) |
Ending balance | $ 1,112,473 | $ 866,160 |
Deferred Revenue and Commissi_5
Deferred Revenue and Commissions - Remaining Performance Obligation (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 08, 2022 | May 02, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue recognized | $ 197.1 | $ 145.1 |
Contracted but not recognized revenue | $ 1,400 | |
Contracted but not recognized revenue expected to be recognized in the next 12 months (percent) | 47.00% |
Deferred Revenue and Commissi_6
Deferred Revenue and Commissions - Remaining Performance Obligation Period (Details) | May 08, 2022 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-05-09 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized term (in months) | 12 months |
Debt - Narrative (Details)
Debt - Narrative (Details) | Feb. 07, 2022USD ($) | Aug. 24, 2020USD ($)financial_ratio | Feb. 28, 2022USD ($) | Apr. 30, 2018USD ($)dayshares$ / shares | May 08, 2022USD ($)$ / shares | May 02, 2021USD ($) | Feb. 06, 2022USD ($) | Oct. 31, 2018$ / shares | Apr. 04, 2018$ / shares |
Debt Instrument [Line Items] | |||||||||
Closing price of stock (in dollars per share) | $ / shares | $ 27.38 | ||||||||
Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Term of credit facility | 5 years | ||||||||
Senior secured revolving credit facility maximum capacity | $ 300,000,000 | ||||||||
Credit facility maturity period prior to stated maturity if out of compliance with liquidity threshold | 91 days | ||||||||
Credit facility, daily minimum sum of cash and cash equivalents and aggregate unused commitments to prevent maturity prior to stated maturity | $ 625,000,000 | ||||||||
Repayments of lines of credit | $ 250,000,000 | ||||||||
Interest during the period (percent) | 1.61% | 1.61% | |||||||
Interest expense | $ 300,000 | $ 1,000,000 | |||||||
Number of financial ratios | financial_ratio | 2 | ||||||||
Consolidated leverage ratio, maximum | 4.5 | ||||||||
Interest coverage ratio, minimum | 3 | ||||||||
Revolving Credit Facility | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Commitment Fee (percent) | 0.25% | ||||||||
Revolving Credit Facility | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Commitment Fee (percent) | 0.40% | ||||||||
Revolving Credit Facility | Base Rate | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Margin rate (percent) | 0.50% | ||||||||
Revolving Credit Facility | Base Rate | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Margin rate (percent) | 1.25% | ||||||||
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Interest Rate Floor | |||||||||
Debt Instrument [Line Items] | |||||||||
Effective interest rate (percent) | 0.00% | ||||||||
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Margin rate (percent) | 1.50% | ||||||||
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Margin rate (percent) | 2.25% | ||||||||
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 | $ 2,444,000 | $ 2,580,000 | |||||||
Long-term Debt | 572,556,000 | 536,779,000 | |||||||
Principal | 575,000,000 | $ 575,000,000 | |||||||
Additional Paid-in Capital | |||||||||
Debt Instrument [Line Items] | |||||||||
Allocated value of the conversion feature | 0 | 136,333,000 | |||||||
Debt issuance costs | $ 0 | 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 | $ 27.38 | ||||||||
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 | ||||||||
Interest rate (as a percent) | 0.125% | ||||||||
Proceeds from borrowings, net of issuance costs | $ 562,100,000 | ||||||||
Conversion percentage of principal amount plus accrued and unpaid contingent interest | 100.00% | ||||||||
Debt issuance costs | $ 12,900,000 | $ 2,400,000 | |||||||
Amortization of debt issuance costs | 648,000 | 490,000 | |||||||
Long-term Debt | 572,600,000 | ||||||||
Principal | 575,000,000 | ||||||||
Convertible debt, fair value based on the closing trading price per $100 of the Notes | 676,600,000 | ||||||||
If-converted value | $ 599,200,000 | ||||||||
Remaining term of the notes | 11 months | ||||||||
Interest expense | $ 827,000 | $ 7,425,000 | |||||||
Convertible Senior Notes | Additional Paid-in Capital | |||||||||
Debt Instrument [Line Items] | |||||||||
Allocated value of the conversion feature | 136,300,000 | ||||||||
Debt issuance costs | 3,100,000 | ||||||||
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) | 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 | Liability Component | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt issuance costs | $ 9,800,000 |
Debt - Convertible Debt (Detail
Debt - Convertible Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
May 08, 2022 | May 02, 2021 | Feb. 06, 2022 | |
Convertible Senior Notes | |||
Liability: | |||
Principal | $ 575,000 | $ 575,000 | |
Less: debt discount, net of amortization | 0 | (35,641) | |
Less: debt issuance costs, net of amortization | (2,444) | (2,580) | |
Net carrying amount of the Notes | 572,556 | 536,779 | |
Stockholders' equity recorded at issuance: | |||
Less: debt issuance costs | (2,444) | $ (2,580) | |
Additional Paid-in Capital | |||
Liability: | |||
Less: debt issuance costs, net of amortization | 0 | $ (3,068) | |
Stockholders' equity recorded at issuance: | |||
Allocated value of the conversion feature | 0 | 136,333 | |
Less: debt issuance costs | 0 | (3,068) | |
Additional paid-in capital | $ 0 | $ 133,265 |
Debt - Interest Expense (Detail
Debt - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 08, 2022 | May 02, 2021 | |
Debt Instrument [Line Items] | ||
Total amortization of debt discount and debt issuance costs | $ 801 | $ 7,403 |
Convertible Senior Notes | ||
Debt Instrument [Line Items] | ||
Amortization of debt discount | 0 | 6,760 |
Amortization of debt issuance costs | 648 | 490 |
Total amortization of debt discount and debt issuance costs | 648 | 7,250 |
Contractual interest expense | 179 | 175 |
Total interest expense related to the Notes | $ 827 | $ 7,425 |
Effective interest rate of the liability component ( as a percent) | 0.60% | 5.60% |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) | May 08, 2022 | Feb. 06, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Outstanding letters of credit | $ 6,700,000 | $ 6,700,000 |
Loss contingency | $ 0 |
Leases - Lease costs (Details)
Leases - Lease costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 08, 2022 | May 02, 2021 | |
Leases [Abstract] | ||
Fixed operating lease cost | $ 10,318 | $ 9,756 |
Variable lease cost | 1,890 | 1,995 |
Short-term lease cost (12 months or less) | 852 | 1,101 |
Total lease cost | $ 13,060 | $ 12,852 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | Jun. 14, 2022 | May 08, 2022 |
Subsequent Event [Line Items] | ||
Capitalized data center lease | $ 9,400 | |
Operating lease, weighted average remaining lease term | 4 years 4 months 24 days | |
Weighted-average discount rate (as a percent) | 5.63% | |
Total sublease payments | $ 147,271 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Sublease term | 8 years | |
Total sublease payments | $ 143,000 |
Leases - Future minimum lease p
Leases - Future minimum lease payments (Details) $ in Thousands | May 08, 2022USD ($) |
Leases [Abstract] | |
The remainder of 2023 | $ 31,268 |
2024 | 36,179 |
2025 | 31,647 |
2026 | 22,125 |
2027 | 8,266 |
Thereafter | 17,786 |
Total future lease payments | 147,271 |
Less: imputed interest | (18,262) |
Present value of lease liabilities | $ 129,009 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) $ / shares in Units, $ in Millions | 3 Months Ended | ||
May 08, 2022USD ($)stock_class$ / sharesshares | Mar. 31, 2022USD ($) | Feb. 06, 2022$ / sharesshares | |
Class of Stock [Line Items] | |||
Shares authorized (in shares) | 20,000,000 | 20,000,000 | |
Shares issued (in shares) | 0 | 0 | |
Shares outstanding (in shares) | 0 | 0 | |
Number of classes of stock | stock_class | 2 | ||
Shares authorized (in shares) | 2,250,000,000 | 2,250,000,000 | |
Additional value approved for repurchase | $ | $ 250 | ||
Stock repurchased and retired (in shares) | 2,134,290 | ||
Shares repurchased and retired, average purchase price (in dollars per share) | $ / shares | $ 31.10 | ||
Stock repurchased and retired during period, value | $ | $ 66.4 | ||
Authorized amount remaining under stock repurchase program | $ | $ 183.6 | ||
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) | 297,132,430 | 292,633,000 | |
Shares outstanding (in shares) | 297,132,430 | 292,633,000 | |
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 |
Equity Incentive Plans - Narrat
Equity Incentive Plans - Narrative (Details) | 3 Months Ended | |
May 08, 2022USD ($)periodplanshares | May 02, 2021USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of equity incentive plans | plan | 2 | |
Equity awards expiration period (no later than) | 10 years | |
Total stock-based compensation expense | $ 74,571,000 | $ 61,334,000 |
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 | |
Reset charges | $ 0 | 0 |
Total stock-based compensation expense | 6,900,000 | $ 7,600,000 |
Unrecognized stock-based compensation expense | $ 32,400,000 | |
Compensation cost (in years) | 1 year 8 months 12 days | |
2015 Employee Stock Purchase Plan | Class A | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Payroll deductions percentage | 30.00% | |
Share cap for ESPP at purchase date (in shares) | shares | 3,000 | |
Dollar cap per purchase period | $ 7,500 | |
Calendar year gap for ESPP contribution amount | $ 25,000 | |
Purchase price as percentage of fair market value of common stock | 85.00% | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period (in years) | 2 years | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period (in years) | 4 years |
Equity Incentive Plans - Equity
Equity Incentive Plans - Equity Incentive Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
May 08, 2022 | May 02, 2021 | Feb. 06, 2022 | |
Number of Shares | |||
Beginning balance (in shares) | 12,268,938 | ||
Options exercised (in shares) | (1,232,899) | ||
Options forfeited (in shares) | (8,690) | ||
Ending balance (in shares) | 11,027,349 | 12,268,938 | |
Vested and exercisable (in shares) | 10,484,441 | ||
Weighted- Average Exercise Price | |||
Beginning balance (in dollars per share) | $ 10.25 | ||
Options exercised (in dollars per share) | 9.27 | ||
Options forfeited/canceled (in dollars per share) | 1.88 | ||
Ending balance (in dollars per share) | 10.37 | $ 10.25 | |
Weighted Average Exercise Price, Vested and exercisable (in dollars per share) | $ 10.77 | ||
Weighted- Average Remaining Contractual Life (In Years) | |||
Weighted Average Remaining Contractual Life (in years) | 3 years 4 months 24 days | 3 years 6 months | |
Weighted Average Remaining Contractual Life, Vested and exercisable (in years) | 3 years 2 months 12 days | ||
Aggregate Intrinsic Value | |||
Aggregate Intrinsic Value | $ 187,989 | $ 198,266 | |
Aggregate Intrinsic Value, Vested and exercisable | $ 174,121 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Closing price of stock (in dollars per share) | $ 27.38 | ||
Total stock-based compensation expense | $ 74,571 | $ 61,334 | |
Unrecognized compensation cost, stock options | 6,000 | ||
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 1,500 | $ 2,300 | |
Compensation cost (in years) | 1 year 4 months 24 days | ||
Class A | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Closing price of stock (in dollars per share) | $ 27.38 |
Equity Incentive Plans - Restri
Equity Incentive Plans - Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
May 08, 2022 | May 02, 2021 | Feb. 06, 2022 | |
Unvested RSUs and PRSUs | |||
Number of RSUs and PRSUs Outstanding | |||
Unvested, Beginning balance (in shares) | 28,712,878 | ||
Granted (in shares) | 9,992,401 | ||
Vested (in shares) | (3,608,468) | ||
Forfeited (in shares) | (1,002,438) | ||
Unvested, Ending balance (in shares) | 34,094,373 | ||
Weighted- Average Grant Date Fair Value | |||
Beginning balance (in dollars per share) | $ 19.53 | ||
Granted (in dollars per share) | 31.02 | ||
Vested (in dollars per share) | 18.75 | ||
Forfeited (in dollars per share) | 19.72 | ||
Ending balance (in dollars per share) | $ 22.97 | ||
Aggregate Intrinsic Value | $ 933,532 | $ 757,446 | |
Share-based compensation expense | 66,200 | $ 51,600 | |
Compensation not yet recognized | $ 721,600 | ||
Compensation cost (in years) | 3 years | ||
PRSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, target (as a percent) | 100.00% | ||
Number of RSUs and PRSUs Outstanding | |||
Granted (in shares) | 1,147,187 | ||
Forfeited (in shares) | (34,960) | ||
Weighted- Average Grant Date Fair Value | |||
Additional share issued | 647,586 | ||
PRSUs | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, target (as a percent) | 0.00% | ||
PRSUs | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, target (as a percent) | 150.00% |
Equity Incentive Plans - Rest_2
Equity Incentive Plans - Restricted Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
May 08, 2022 | May 02, 2021 | Feb. 06, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 74,571 | $ 61,334 | |
Unvested restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 600 | ||
Number of Restricted Stock Outstanding | |||
Unvested, Beginning balance (in shares) | 54,977 | ||
Vested (in shares) | (54,977) | ||
Forfeited/canceled (in shares) | 0 | ||
Unvested, Ending balance (in shares) | 0 | ||
Weighted- Average Grant Date Fair Value | |||
Beginning balance (in dollars per share) | $ 20.02 | ||
Vested (in dollars per share) | 20.02 | ||
Forfeited/canceled (in dollars per share) | 0 | ||
Ending balance (in dollars per share) | $ 0 | ||
Aggregate Intrinsic Value | $ 0 | $ 1,450 | |
PRSUs | |||
Number of Restricted Stock Outstanding | |||
Forfeited/canceled (in shares) | (34,960) |
Equity Incentive Plans - Stock-
Equity Incentive Plans - Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 08, 2022 | May 02, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 74,571 | $ 61,334 |
Cost of revenue—product | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 1,863 | 1,347 |
Cost of revenue—subscription services | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 5,356 | 4,406 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 36,517 | 30,421 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 18,345 | 16,808 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 12,490 | $ 8,352 |
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 | |
May 08, 2022 | May 02, 2021 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (11,535) | $ (84,206) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic (in shares) | 295,843 | 280,331 |
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted (in shares) | 295,843 | 280,331 |
Net loss per share attributable to common stockholders, basic (in USD per share) | $ (0.04) | $ (0.30) |
Net loss per share attributable to common stockholders, diluted (in USD per share) | $ (0.04) | $ (0.30) |
Net Loss per Share Attributab_4
Net Loss per Share Attributable to Common Stockholders - Shares Excluded (Details) - shares shares in Thousands | 3 Months Ended | |
May 08, 2022 | May 02, 2021 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings per share, amount (in shares) | 63,224 | 74,136 |
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) | 11,555 | 17,856 |
Unvested RSUs and PRSUs | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings per share, amount (in shares) | 29,150 | 32,876 |
Unvested restricted 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) | 25 | 471 |
Shares related to convertible senior 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 |
Shares issuable pursuant to the 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) | 610 | 1,049 |
Other Income (Expense), Net - O
Other Income (Expense), Net - Other Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 08, 2022 | May 02, 2021 | |
Other Income and Expenses [Abstract] | ||
Interest income | $ 1,956 | $ 2,774 |
Interest expense | (1,482) | (8,659) |
Foreign currency transactions gains (losses) | (6,399) | 36 |
Other income (expense) | (256) | 1,122 |
Total other income (expense), net | $ (6,181) | $ (4,727) |
Segment Information - Revenue b
Segment Information - Revenue by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 08, 2022 | May 02, 2021 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total revenue | $ 620,405 | $ 412,707 |
United States | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total revenue | 464,535 | 295,107 |
Rest of the world | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total revenue | $ 155,870 | $ 117,600 |
Segment Information - Long-Live
Segment Information - Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | May 08, 2022 | Feb. 06, 2022 |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total long-lived assets | $ 207,289 | $ 195,282 |
United States | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total long-lived assets | 198,907 | 187,228 |
Rest of the world | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total long-lived assets | $ 8,382 | $ 8,054 |