Document and Entity Information - shares |
3 Months Ended | |
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Apr. 30, 2019 |
May 31, 2019 |
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| Class of Stock [Line Items] | ||
| Document Type | 10-Q | |
| Amendment Flag | false | |
| Document Period End Date | Apr. 30, 2019 | |
| Document Fiscal Year Focus | 2020 | |
| Document Fiscal Period Focus | Q1 | |
| Trading Symbol | PSTG | |
| Entity Registrant Name | Pure Storage, Inc. | |
| Entity Central Index Key | 0001474432 | |
| Current Fiscal Year End Date | --01-31 | |
| Entity Filer Category | Large Accelerated Filer | |
| Entity Small Business | false | |
| Entity Emerging Growth Company | false | |
| Entity Common Stock, Shares Outstanding (in shares) | 253,091,522 |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Apr. 30, 2019 |
Jan. 31, 2019 |
|---|---|---|
| Accounts receivable, allowance | $ 642 | $ 660 |
| Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
| Shares authorized (in shares) | 20,000,000 | 20,000,000 |
| Shares issued (in shares) | 0 | 0 |
| Shares outstanding (in shares) | 0 | 0 |
| Par value per share (in dollars per share) | $ 0.0001 | $ 0.0001 |
| Shares authorized (in shares) | 2,250,000,000 | 2,250,000,000 |
| Shares issued (in shares) | 241,359,000 | 220,979,000 |
| Shares outstanding (in shares) | 241,359,000 | 220,979,000 |
| Class A | ||
| Par value per share (in dollars per share) | $ 0.0001 | $ 0.0001 |
| Shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
| Shares issued (in shares) | 252,852,600 | 243,524,000 |
| Shares outstanding (in shares) | 252,853,000 | 243,524,000 |
| Class B | ||
| Par value per share (in dollars per share) | $ 0.0001 | $ 0.0001 |
| Shares authorized (in shares) | 250,000,000 | 250,000,000 |
| Shares issued (in shares) | 0 | 0 |
| Shares outstanding (in shares) | 0 | 0 |
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands |
3 Months Ended | |
|---|---|---|
Apr. 30, 2019 |
Apr. 30, 2018 |
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| Statement of Comprehensive Income [Abstract] | ||
| Net loss | $ (100,336) | $ (64,304) |
| Other comprehensive income (loss) net of tax: | ||
| Change in unrealized net gain (loss) on available-for-sale securities | 1,627 | (716) |
| Comprehensive loss | $ (98,709) | $ (65,020) |
Business Overview |
3 Months Ended |
|---|---|
Apr. 30, 2019 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| Business Overview | Business Overview Organization and Description of Business Pure Storage, Inc. (the Company, we, us, or other similar pronouns) was originally incorporated in the state of Delaware in October 2009 under the name OS76, Inc. In January 2010, we changed our name to Pure Storage, Inc. We are headquartered in Mountain View, California and have wholly owned subsidiaries throughout the world. We help innovators to build a better world with data. Our innovative data platform replaces storage systems designed for mechanical disk with all-flash systems optimized for end-to-end for solid-state memory. Our cloud-based management and support platform helps predictively resolve potential issues and simplify storage administration. We provide a customer first business model that replaces the traditional forklift upgrade cycle with a subscription model built to keep customers on the cutting edge without downtime or performance impact. |
Basis of Presentation and Summary of Significant Accounting Policies |
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| Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Unaudited Interim Consolidated Financial Information The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) and applicable rules and regulations of the Securities and Exchange Commission (the SEC) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended January 31, 2019. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, comprehensive loss and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year 2020 or any future period. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and accompanying notes. Actual results could differ from these estimates. Such estimates include, but are not limited to, the determination of standalone selling price for revenue arrangements with multiple performance obligations, useful lives of intangible assets, property and equipment, the period of benefit for deferred contract costs for commissions, stock-based compensation, provision for income taxes including related reserves, valuation of intangible assets and goodwill, the incremental borrowing rate we use to determine our operating lease liabilities, and contingent liabilities. Management bases its estimates on historical experience and on various other assumptions which management believes to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Restricted Cash Restricted cash is comprised of cash collateral for letters of credit related to our leases and for a vendor credit card program. As of January 31, 2019 and April 30, 2019, we had restricted cash of $15.8 million and $16.3 million, which was included in other assets, non-current, in the condensed consolidated balance sheets. Marketable Securities We classify our marketable securities as available-for-sale at the time of purchase and reevaluate such classification at each balance sheet date. We may sell these securities at any time for use in current operations even if they have not yet reached maturity. As a result, we classify our securities, including those with maturities beyond twelve months, as current assets in the accompanying condensed consolidated balance sheets. We carry these securities at fair value and record unrealized gains and losses, in accumulated other comprehensive income (loss), which is reflected as a component of stockholders’ equity. We evaluate our securities to assess whether those with unrealized loss positions are other than temporarily impaired. We consider impairments to be other than temporary if they are related to deterioration in credit risk or if it is likely we will sell the securities before the recovery of their cost basis. Realized gains and losses from the sale of marketable securities and declines in value deemed to be other than temporary are determined on the specific identification method. To date, there have been no declines in value deemed to be other than temporary in any of our securities. Realized gains and losses are reported in other income (expense), net in the condensed consolidated statements of operations. Business Combinations We allocate the purchase price to the assets acquired and liabilities assumed based on their estimated fair values. The excess of the purchase price over the fair values of the assets acquired and liabilities assumed is recorded as goodwill. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the estimated fair value of the assets acquired and liabilities assumed, with the corresponding offset to goodwill. The results of operations of an acquired business is included in our condensed consolidated financial statements from the date of acquisition. Acquisition-related expenses are expensed as incurred. Deferred Commissions Deferred commissions consist of incremental costs paid to our sales force to obtain customer contracts. Deferred commissions related to product revenue are recognized upon transfer of control to customers and deferred commissions related to support subscription revenue are amortized over an expected useful life of six years. We determine the expected useful life based on an estimated benefit period by evaluating our technology development life cycle, expected customer relationship period and other factors. We classify deferred commissions as current and non-current on our condensed consolidated balance sheets based on the timing of when we expect to recognize the expense. Amortization of deferred commissions is included in sales and marketing expense in the condensed consolidated statements of operations. Changes in total deferred commissions during the periods presented are as follows (in thousands):
Of the $113.3 million total deferred commissions balance as of April 30, 2019, we expect to recognize approximately 25% as commission expense over the next 12 months and the remainder thereafter. There was no impairment related to capitalized commissions for the three months ended April 30, 2018 and 2019. Operating Leases We determine if an arrangement contains a lease at inception. Lease liabilities are recognized at the present value of the future lease payments at commencement date. The interest rate implicit in our operating leases is not readily determinable, and therefore an incremental borrowing rate is estimated to determine the present value of future payments. The estimated incremental borrowing rate factors in a hypothetical interest rate on a collateralized basis with similar terms, payments, and economic environments. The operating lease right-of-use (ROU) asset is determined based on the lease liability initially established and reduced for any prepaid lease payments and any lease incentives. We combine lease and non-lease components for our office facility leases. Certain of the operating lease agreements contain rent concession, rent escalation, and option to renew provisions. Rent concession and rent escalation provisions are considered in determining the straight-line lease cost to be recorded over the lease term. Lease cost is recognized on a straight-line basis over the lease term commencing on the date we have the right to use the leased property. We generally use the base, non-cancelable, lease term when recognizing the lease assets and liabilities, unless it is reasonably certain that an extension or termination option will be exercised. In addition, certain of our operating lease agreements contain tenant improvement allowances from our landlords. These allowances are accounted for as lease incentives and decrease our ROU asset and reduce single lease cost over the lease term. For short-term leases which have a lease term of less than twelve months and do not include an option to purchase the underlying asset that we are reasonably certain to exercise, we recognize rent expense in our condensed consolidated statements of operations on a straight-line basis over the lease term and record variable lease payments as incurred. Deferred Revenue Deferred revenue primarily consists of amounts that have been invoiced but that have not yet been recognized as revenue and performance obligations pertaining to support subscription services. The current portion of deferred revenue represents the amounts that are expected to be recognized as revenue within one year of the condensed consolidated balance sheet dates. Changes in total deferred revenue during the periods presented are as follows (in thousands):
During the three months ended April 30, 2018 and 2019, we recognized $55.6 million and $79.3 million in revenue pertaining to deferred revenue as of the beginning of each period. Total contracted but not recognized revenue was $723.6 million as of April 30, 2019. Contracted but not recognized revenue consists of both deferred revenue and non-cancelable amounts that will be invoiced and recognized as revenue in future periods. Of the $723.6 million contracted but not recognized revenue as of April 30, 2019, we expect to recognize approximately 40% over the next 12 months, and the remainder thereafter. Revenue Recognition We derive revenue from two sources: (1) product revenue which includes hardware and embedded software and (2) support subscription revenue which includes customer support, hardware maintenance, and software upgrades on a when-and-if-available basis. Support subscription revenue also includes our Evergreen Storage Service (ES2) offering. Our product revenue is derived from the sale of storage hardware and operating system software that is integrated into the hardware. We typically recognize product revenue upon transfer of control to our customers. Products are typically shipped directly by us to customers, and our channel partners do not stock our inventory. Our support subscription revenue is derived from the sale of support subscription, which includes the right to receive unspecified software upgrades and enhancements on a when-and-if-available basis, bug fixes, parts replacement services related to the hardware, as well as access to our cloud-based management and support platform. Support subscription revenue is also derived from the sale of our ES2 offering. Revenue related to support revenue is recognized ratably over the contractual term, which generally ranges from one to six years and represents our performance obligations period. The vast majority of our products are sold with support subscription agreements, which typically commence upon transfer of control of the corresponding products to our customers. Costs to service the support subscription are expensed as incurred. In addition, our Evergreen Storage program provides our customers who continually maintain active support subscription agreements for three years with an included controller refresh with each additional three year support subscription renewal. In accordance with revenue recognition guidance, the controller refresh represents an additional performance obligation and the allocated revenue is recognized in the period in which these controllers are shipped. We recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration we expect to be entitled in exchange for those goods or services. This is achieved through applying the following five-step approach:
When applying this five-step approach, we apply judgment in determining the customer's ability and intention to pay, which is based on a variety of factors including the customer's historical payment experience and/or published credit and financial information pertaining to the customer. To the extent a customer contract includes multiple promised goods or services, we determine whether promised goods or services are capable of being distinct in the context of the contract to be accounted for as a separate performance obligation. The transaction price is determined based on the consideration which we will be entitled to in exchange for transferring goods or services to the customer. We allocate transaction price to each performance obligation for contracts that contain multiple performance obligations based on a relative standalone selling price which is determined based on the price at which the performance obligation is sold separately, or if not observable through past transactions, is estimated taking into account available information such as market conditions and internally approved pricing guidelines related to performance obligations. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-02, Leases (ASC 842) and subsequent amendments to the initial guidance (collectively, Topic 842). ASC 842 requires lessees to generally recognize on its balance sheet operating and financing lease liabilities and corresponding ROU assets at the commencement date, and to recognize the associated lease expenses in the condensed consolidated statement of operations in a manner similar to that required under historical accounting rules. On February 1, 2019, we adopted ASC 842 using the modified retrospective approach by electing to use the optional transition method which allows us to continue to apply the guidance of ASC 840, including disclosure requirements, in the comparative periods presented. We elected the package of transition expedients, which allowed us to carry forward our historical lease classifications, our assessment of whether any existing leases as of the date of adoption are or contain leases, and our assessment of indirect costs for any leases that existed prior to adoption of the new standard. We elected to take the practical expedient to keep leases with an initial term of 12 months or less off the condensed consolidated balance sheet and recognize the associated lease payments in the consolidated statements of operations on a straight-line basis over the lease term. We recognized operating ROU assets of $124.5 million and lease liabilities of $130.6 million on our condensed consolidated balance sheet as of February 1, 2019, which included reclassifying prepaid rent and deferred rent as a component of the ROU asset. Topic 842 did not have a material impact on our condensed consolidated statements of operations and cash flows. Refer to Note 8 for additional disclosures. In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This standard allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 and requires certain disclosures about stranded tax effects. We adopted this standard on February 1, 2019 and the adoption had no impact on our condensed consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 amends guidance on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities to require that credit losses on available-for-sale debt securities be presented as an allowance rather than as a write-down. The measurement of credit losses for newly recognized financial assets and subsequent changes in the allowance for credit losses are recorded in the statements of operations. The amendments in this update will be effective for us beginning on February 1, 2020 with early adoption permitted on or after February 1, 2019. We are currently evaluating the impact of this standard on our condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13) which amended its conceptual framework to improve the effectiveness of disclosures in notes to financial statements. ASU 2018-13 eliminates such disclosures around the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy. The guidance also adds new disclosure requirements for Level 3 measurements. ASU 2018-13 is effective for us beginning February 1, 2020. Early adoption is permitted. We are currently evaluating the impact of this standard on our condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) - Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (ASU 2018-15). ASC 2018-15 aligns the requirements for capitalizing implementation costs in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This standard will be effective for us beginning February 1, 2020 and will be applied either retrospectively or prospectively. Early adoption is permitted. We are currently evaluating the impact of this standard on our condensed consolidated financial statements. |
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Financial Instruments |
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| Financial Instruments | Financial Instruments Fair Value Measurements We measure our cash equivalents, marketable securities, and restricted cash at fair value on a recurring basis. We define fair value as the exchange price that would be received from sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We measure our financial assets and liabilities at fair value at each reporting period using a fair value hierarchy which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value:
We classify our cash equivalents, marketable securities and restricted cash within Level 1 or Level 2 because they are valued using either quoted market prices or inputs other than quoted prices which are directly or indirectly observable in the market, including readily-available pricing sources for the identical underlying security which may not be actively traded. Our fixed income available-for-sale securities consist of high quality, investment grade securities from diverse issuers. The valuation techniques used to measure the fair value of our marketable securities were derived from non-binding market consensus prices that are corroborated by observable market data or quoted market prices for similar instruments. In addition to our cash equivalents, marketable securities and restricted cash, we measure the fair value of our convertible senior notes (the Notes) on a quarterly basis for disclosure purposes. We consider the fair value of the Notes at April 30, 2019 to be a Level 2 measurement due to its limited trading activity. Refer to Note 6 for the carrying amount and estimated fair value of our Notes as of April 30, 2019. Cash Equivalents, Marketable Securities and Restricted Cash The following tables summarize our cash equivalents, marketable securities and restricted cash by significant investment categories as of January 31, 2019 and April 30, 2019 (in thousands):
The amortized cost and estimated fair value of our marketable securities are shown below by contractual maturity (in thousands):
Based on our evaluation of available evidence, we concluded that the gross unrealized losses on our investments as of April 30, 2019 were temporary in nature. The following table presents gross unrealized losses and fair values for those investments that were in a continuous unrealized loss position as of April 30, 2019, aggregated by investment category (in thousands):
Realized gains or losses on sale of marketable securities were not significant for all periods presented. |
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Business Combination |
3 Months Ended |
|---|---|
Apr. 30, 2019 | |
| Business Combinations [Abstract] | |
| Business Combination | Business Combination In April 2019, we acquired Compuverde AB (Compuverde), a privately-held developer of file software solutions for enterprises and cloud providers based in Sweden. Acquisition-related costs were $0.5 million and expensed as incurred. The purchase consideration was $47.9 million in cash (net of cash acquired) after repayment of $11.6 million of debt assumed. The purchase price was allocated as follows: $38.4 million in developed technology which will be amortized over seven years, $25.4 million of goodwill, $10.2 million in net liabilities assumed, and $5.7 million in deferred tax liability included within other liabilities, non-current. The deferred tax liability was primarily a result of the difference in the book basis and tax basis related to the developed technology. Goodwill is primarily attributable to the assembled workforce and synergies from integrating Compuverde's technology with our data platform to expand our file capabilities and is not expected to be deductible for tax purposes. In addition, we will make payments to founders of Compuverde totaling $15.9 million in cash payable over a two-year period, subject to continuous employment. As a result, these contingent payments are considered post-acquisition consideration to be recognized over the two-year period as compensation. Restricted stock units in the amount of $3.0 million will be issued to Compuverde employees in June 2019, subject to continuous employment and will be recognized as stock-based compensation over the related vesting period. The results of Compuverde are included in our consolidated statements of operations since the acquisition date, including revenue and net loss, and are not material. Pro forma results of operations have not been presented because the acquisition is not material to our results of operations. |
Balance Sheet Components |
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| Balance Sheet Components Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance Sheet Components | Balance Sheet Components Inventory Inventory consists of the following (in thousands):
Property and Equipment, Net Property and equipment, net consists of the following (in thousands):
Depreciation and amortization expense was $16.0 million and $19.8 million for the three months ended April 30, 2018 and 2019. Intangible Assets, Net Intangible assets, net consist of the following (in thousands):
Intangible assets amortization expense was $0.4 million and $1.3 million for the three months ended April 30, 2018 and 2019. As of April 30, 2019, the weighted-average remaining amortization period was 2.1 years for technology patents and 6.8 years for developed technology. Amortization of the technology patents is included in general and administrative expenses due to their defensive nature and amortization of developed technology is included in cost of product revenue in the condensed consolidated statements of operations. As of April 30, 2019, future expected amortization expense for intangible assets is as follows (in thousands):
Goodwill The change in the carrying amount of goodwill is as follows (in thousands):
Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consist of the following (in thousands):
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Convertible Senior Notes |
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| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Convertible Senior Notes | Convertible Senior Notes In April 2018, we issued $575.0 million in principal amount of 0.125% convertible senior notes due 2023, in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act and received proceeds of $562.1 million, after deducting the underwriters’ discounts and commissions. The Notes are governed by an indenture (the Indenture) between us, as the issuer, and U.S. Bank National Association, as trustee. The Notes are our senior unsecured obligations. The Indenture does not contain any financial covenants or restrictions on the payments of dividends, the incurrence of indebtedness, or the issuance or repurchase of securities by us or any of our subsidiaries. The Notes mature on April 15, 2023 unless repurchased or redeemed by us or converted in accordance with their terms prior to the maturity date. Interest is payable semi-annually in arrears on April 15 and October 15 of each year, beginning on October 15, 2018. The Notes are convertible for up to 21,884,155 shares of our common stock at an initial conversion rate of approximately 38.0594 shares of Class A common stock per $1,000 principal amount, which is equal to an initial conversion price of approximately $26.27 per share of Class A common stock, subject to adjustment. Holders of the Notes may surrender their Notes for conversion at their option at any time prior to the close of business on the business day immediately preceding October 15, 2022, only under the following circumstances:
On or after October 15, 2022 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their Notes at any time regardless of the foregoing circumstances. Upon conversion, holders will receive cash, shares of our Class A common stock, or a combination of cash and shares of our Class A common stock, at our election. We intend to settle the principal of the Notes in cash. The conversion price will be subject to adjustment in some events. Following certain corporate events that occur prior to the maturity date or following our issuance of a notice of redemption, we will increase the conversion rate for a holder who elects to convert its Notes in connection with such corporate event or during the related redemption period in certain circumstances. Additionally, upon the occurrence of a corporate event that constitutes a “fundamental change” per the Indenture, holders of the Notes may require us to repurchase for cash all or a portion of the Notes at a purchase price equal to 100% of the principal amount of the Notes plus accrued and unpaid contingent interest. We may not redeem the Notes prior to April 20, 2021. We may redeem for cash all or any portion of the Notes, at our option, on or after April 20, 2021 if the last reported sale price of our Class A common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending not more than two trading days immediately preceding the date on which we provide notice of redemption at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the Notes. In accounting for the issuance of the Notes, we separated the Notes into liability and equity components. The carrying amount of the liability component was determined by measuring the fair value of a similar liability that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was calculated by deducting the fair value of the liability component from the principal amount of the Notes as a whole. The difference between the principal amount of the Notes and the liability component (the debt discount) is amortized to interest expense in the condensed consolidated statements of operations using the effective interest method over the term of the Notes. The equity component of the Notes is included in additional paid-in capital in the condensed consolidated balance sheets and is not remeasured as long as it continues to meet the conditions for equity classification. In accounting for the transaction costs related to the issuance of the Notes, we allocated the total amount incurred to the liability and equity components using the same proportions as the initial carrying value of the Notes. Transaction costs attributable to the liability component were netted with the principal amount of the Notes in the condensed consolidated balance sheets and are being amortized to interest expense in the condensed consolidated statements of operations using the effective interest method over the term of the Notes. Transaction costs attributable to the equity component were netted with the equity component of the Notes in additional paid-in capital in the condensed consolidated balance sheets. Upon the issuance of the Notes, we recorded total debt issuance costs of $12.9 million, of which $9.8 million was allocated to the Notes and $3.1 million was allocated to additional paid-in capital. The Notes consisted of the following (in thousands):
The total estimated fair value of the Notes as of April 30, 2019 was $637.8 million. The fair value was determined based on the closing trading price per $100 of the Notes as of the last day of trading for the period. The fair value of the Notes is primarily affected by the trading price of our common stock and market interest rates. Based on the closing price of our Class A common stock of $22.86 on April 30, 2019, the if-converted value of the Notes of $500.3 million was less than its principal amount. The following table sets forth total interest expense recognized related to the Notes for the three months ended April 30, 2018 and 2019 (in thousands):
In connection with the offering of the Notes, we paid $64.6 million to enter into capped call transactions with certain of the underwriters and their affiliates (the Capped Calls), whereby we have the option to purchase a total of 21,884,155 shares of our Class A common stock upon any conversion of Notes and/or offset any cash payments we are required to make in excess of the principal amount of the Notes, as the case may be, with such reduction or offset subject to a cap initially equal to $39.66 per share (which represents a premium of 100% over the last reported sales price of our Class A common stock on April 4, 2018), subject to certain adjustments (the Cap Price). The cost of the Capped Calls was accounted for as a reduction to additional paid-in capital on the condensed consolidated balance sheet. The Capped Calls are intended to reduce or offset potential dilution of our common stock upon any conversion of the Notes, subject to a cap based on the Cap Price. Impact on Earnings Per Share The Notes will not impact our diluted earnings per share until the average market price of our Class A common stock exceeds the conversion price of $26.27 per share, as we intend to settle the principal amount of the Notes in cash upon conversion. We are required under the treasury stock method to compute the potentially dilutive shares of common stock related to the Notes for periods we report net income. However, upon conversion, there will be no economic dilution from the Notes until the average market price of our Class A common stock exceeds the Cap Price of $39.66 per share, as exercise of the Capped Calls offsets any 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 under the treasury stock method. |
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Commitments and Contingencies |
3 Months Ended |
|---|---|
Apr. 30, 2019 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| Commitments and Contingencies | Commitments and Contingencies Operating Leases As of April 30, 2019, we have various non-cancelable operating lease commitments for office facilities which as a result of the adoption of ASC 842, have been recorded as operating lease liabilities on our condensed consolidated balance sheet. Refer to Note 8—Leases for additional information regarding lease commitments. Convertible Notes The repayment of our Notes with an aggregate principal amount of $575.0 million is due on April 15, 2023. Refer to Note 6 for further information regarding our Notes. Letters of Credit In connection with a lease executed in January 2019, we issued a letter of credit of $0.5 million. As of January 31, 2019 and April 30, 2019, we had outstanding letters of credit in the aggregate amount of $10.8 million and $11.3 million, in connection with our facility leases. The letters of credit are collateralized by restricted cash and mature on various dates through August 2029. Legal Matters From time to time, we have become involved in claims and other legal matters arising in the normal course of business. We investigate these claims as they arise. Although claims are inherently unpredictable, we currently are not aware of any matters that we expect to have a material adverse effect on our business, financial position, results of operations or cash flows. Accordingly, we have not recorded any loss contingency on our condensed consolidated balance sheet as of April 30, 2019. Indemnification Our arrangements generally include certain provisions for indemnifying customers against liabilities if our products or services infringe a third party’s intellectual property rights. Other guarantees or indemnification arrangements include guarantees of product and service performance and standby letters of credit for lease facilities. It is not possible to determine the maximum potential amount under these indemnification obligations due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. To date, we have not incurred any material costs as a result of such obligations and have not accrued any liabilities related to such obligations in the condensed consolidated financial statements. In addition, we indemnify our officers, directors and certain key employees while they are serving in good faith in their respective capacities. To date, there have been no claims under any indemnification provisions. |
Leases Leases |
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| Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases | Leases We lease office facilities under non-cancelable operating lease agreements expiring through October 2028. Our lease agreements do not contain any material residual value guarantees or restrictive covenants. The components of lease costs were as follows (in thousands):
—————————— (1) Variable lease cost for the three months ended April 30, 2019 predominantly includes common area maintenance charges. Future lease payments under our non-cancelable operating leases as of April 30, 2019 were as follows (in thousands):
Supplemental cash flow information related to our operating leases for the three months ended April 30, 2019 as well as the weighted-average remaining lease term and weighted-average discount rate as of April 30, 2019 were as follows:
As previously disclosed in our Annual Report on Form 10-K for the year ended January 31, 2019 and under the previous lease accounting standard, ASC 840, Leases, the following table summarizes the future minimum lease payments due under operating leases as of January 31, 2019 (in thousands):
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Stockholders' Equity |
3 Months Ended |
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Apr. 30, 2019 | |
| Equity [Abstract] | |
| Stockholders' Equity | Stockholders’ Equity Preferred Stock We have 20,000,000 authorized shares of undesignated preferred stock, the rights, preferences and privileges of which may be designated from time to time by our board of directors. As of April 30, 2019, there were no shares of preferred stock issued or outstanding. Class A and Class B Common Stock We have two classes of authorized common stock, Class A common stock and Class B common stock. As of April 30, 2019, we had 2,000,000,000 authorized shares of Class A common stock and 250,000,000 authorized shares of Class B common stock, with each class having a par value of $0.0001 per share. As of April 30, 2019, 252,852,600 shares of Class A common stock were issued and outstanding. Repurchase of Common Stock Concurrent with the issuance of the Notes (see Note 6), we repurchased and retired 1,008,573 shares, or $20.0 million, of our Class A common stock at $19.83 per share, which was equal to the closing price per share of our Class A common stock on April 4, 2018, the date of the pricing of the offering of the Notes. The repurchased shares were recorded as a reduction of additional paid-in capital on the condensed consolidated balance sheet. |
Equity Incentive Plans |
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| Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity Incentive Plans | Equity Incentive Plans Equity Incentive Plans We maintain two equity incentive plans: the 2009 Equity Incentive Plan (the 2009 Plan) and the 2015 Equity Incentive Plan (the 2015 Plan). The 2015 Plan became effective in connection with our initial public offering (IPO) in October 2015 and serves as the successor to our 2009 Plan. The 2015 Plan provides for grants of incentive stock options to our employees and non-statutory stock options, stock appreciation rights, restricted stock, restricted stock unit awards (RSUs), performance stock awards, performance cash awards, and other forms of stock awards to our employees, directors and consultants. No new awards have been issued under our 2009 Plan after the effective date of our 2015 Plan. Outstanding awards granted under our 2009 Plan will remain subject to the terms of our 2009 Plan and applicable award agreements, until such outstanding awards that are stock options are exercised, terminated or expired by their terms. Starting in December 2018, we net-share settle equity awards held by certain employees by withholding shares upon vesting to satisfy tax withholding obligations. The shares withheld to satisfy employee tax withholding obligations are returned to our 2015 Plan and will be available for future issuance. Payments for employees’ tax obligations to the tax authorities are recognized as a reduction to additional paid-in capital and reflected as a financing activity in our condensed consolidated statements of cash flows. The exercise price of stock options will generally not be less than 100% of the fair market value of our common stock on the date of grant, as determined by our board of directors. Our equity awards generally vest over a two to four year period and expire no later than ten years from the date of grant. 2015 Employee Stock Purchase Plan Our 2015 Employee Stock Purchase Plan (2015 ESPP) became effective in connection with our IPO. The 2015 ESPP allows eligible employees to purchase shares of our Class A common stock at a discount through payroll deductions of up to 30% of their eligible compensation, subject to a cap of 3,000 shares on any purchase date or $25,000 in any calendar year (as determined under applicable tax rules). In February 2019, we amended the ESPP on a prospective basis, to include an additional dollar cap of $7,500 per purchase period. The 2015 ESPP provides for a 24-month offering period beginning March 16th and September 16th of each year, and each offering period consists of four six-month purchase periods, subject to a reset provision. If the closing stock price on the offering date of a new offering falls below the closing stock price on the offering date of an ongoing offering, the ongoing offering would terminate immediately following the purchase of ESPP shares on the purchase date immediately preceding the new offering and participants in the terminated ongoing offering would automatically be enrolled in the new offering (ESPP reset), resulting in a modification. On each purchase date, eligible employees will purchase our Class A common stock at a price per share equal to 85% of the lesser of the fair market value of our Class A common stock (1) on the first trading day of the applicable offering period or (2) the purchase date. There was an ESPP reset in the three months ended April 30, 2019 that resulted in a total modification charge of $2.2 million, which is recognized over the new offering period ending March 15, 2021. We recognized stock-based compensation expense related to our 2015 ESPP of $6.7 million and $11.4 million during the three months ended April 30, 2018 and 2019. As of April 30, 2019, there was $24.6 million of unrecognized stock-based compensation expense related to our 2015 ESPP, which is expected to be recognized over a weighted-average period of 1.7 years. Stock Options A summary of stock option activity under our equity incentive plans and related information is as follows:
The aggregate intrinsic value of options vested and exercisable as of April 30, 2019 is calculated based on the difference between the exercise price and the closing price of $22.86 of our Class A common stock on April 30, 2019. As of April 30, 2019, total unrecognized employee compensation cost related to outstanding options was $25.8 million, which is expected to be recognized over a weighted-average period of 1.8 years. RSUs A summary of the RSU activity under our 2015 Plan and related information is as follows:
During the three months ended April 30, 2018 and 2019, we recognized, $26.4 million and $37.3 million, respectfully, in stock-based compensation expense relating to RSUs. As of April 30, 2019, total unrecognized employee compensation cost related to unvested RSUs was $447.1 million, which is expected to be recognized over a weighted-average period of 3.1 years. Restricted Stock In January 2019, we issued 183,902 shares of performance restricted stock, at a target percentage of 100%, with both performance and service vesting conditions payable in common shares, from 0% to 160%, of the target number granted, contingent upon the degree to which the performance condition is met. The grant date for these shares was subsequently established when the performance condition was determined in March 2019. Any portion of shares that are not earned will be canceled. During the three months ended April 30, 2019, we issued 1,230,478 shares of performance restricted stock, at a target percentage of 100%, with both performance and service vesting conditions payable in common shares, from 0% to 160%, of the target number granted, contingent upon the degree to which the performance condition is met. Any portion of shares that are not earned will be canceled. During the three months ended April 30, 2019, we also issued 108,494 shares of additional restricted stock earned based on the actual attainment of previously issued performance restricted stock awards. A summary of the restricted stock activity under our 2015 Plan and related information is as follows:
All unvested restricted shares are subject to cancellation to the extent vesting conditions are not met. During the three months ended April 30, 2018 and 2019, we recognized $3.5 million and $7.5 million in stock-based compensation expense relating to restricted stock. As of April 30, 2019, total unrecognized employee compensation cost related to unvested restricted stock was $40.0 million, which is expected to be recognized over a weighted-average period of 2.6 years. Stock-Based Compensation Expense The following table summarizes the components of stock-based compensation expense recognized in the condensed consolidated statements of operations (in thousands):
The tax benefit related to stock-based compensation expense for all periods presented was not material. |
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Net Loss per Share Attributable to Common Stockholders |
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| Net Loss per Share Attributable to Common Stockholders | Net Loss per Share Attributable to Common Stockholders Basic and diluted net loss per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities. Basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, less shares subject to repurchase. Diluted net loss per share attributable to common stockholders is computed by giving effect to all potentially dilutive common stock equivalents, including our outstanding stock options, common stock related to unvested RSUs, repurchasable shares from early exercised stock options and restricted stock, our Notes to the extent dilutive, and common stock issuable pursuant to the ESPP. These potentially dilutive common stock equivalents have been excluded from the calculation of diluted net loss per share attributable to common stockholders as their effect is anti-dilutive. The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except per share data):
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):
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Other Income (Expense), Net (Notes) |
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| Other Income (Expense), Net | Other Income (Expense), Net Other income (expense), net consists of the following (in thousands):
____________________________________ (1) Interest income includes interest income related to our cash, cash equivalents and marketable securities and non-cash interest income related to accretion (amortization) of the discount (premium) on marketable securities. (2) Interest expense includes non-cash interest expense related to amortization of the debt discount and debt issuance costs and the contractual interest expense related to the Notes for the three months ended April 30, 2018 and 2019. |
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Income Taxes |
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| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes Our income tax provision was primarily due to taxes on international operations and state income taxes. The difference between the income tax provision that would be derived by applying the statutory rate to our loss before income taxes and the income tax provision recorded was primarily attributable to changes in our valuation allowance, non-deductible stock-based compensation expense and the tax rate differential between the U.S. and foreign countries. In connection with the Compuverde acquisition, we recorded a net deferred tax liability of $5.7 million arising primarily from the acquired intangible asset. As of April 30, 2019, there were no material changes to either the nature or the amounts of the uncertain tax positions previously determined for the year ended January 31, 2019. |
Segment Information |
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| Segment Information | Segment Information Our chief operating decision maker is a group comprised of our Chief Executive Officer, our Chief Financial Officer, and our President. This group reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. We have one business activity and there are no segment managers who are held accountable for operations or operating results. Accordingly, we have a single reportable segment. Disaggregation of Revenue The following table depicts the disaggregation of revenue by geographic area based on the billing address of our customers and is consistent with how we evaluate our financial performance (in thousands):
Long-Lived Assets by Geographic Area Long-lived assets by geographic area are summarized as follows (in thousands):
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Basis of Presentation and Summary of Significant Accounting Policies (Policies) |
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| Accounting Policies [Abstract] | |||||||||||||||||||||
| Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
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| Unaudited Interim Consolidated Financial Information | Unaudited Interim Consolidated Financial Information The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) and applicable rules and regulations of the Securities and Exchange Commission (the SEC) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended January 31, 2019. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, comprehensive loss and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year 2020 or any future period. |
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| Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and accompanying notes. Actual results could differ from these estimates. Such estimates include, but are not limited to, the determination of standalone selling price for revenue arrangements with multiple performance obligations, useful lives of intangible assets, property and equipment, the period of benefit for deferred contract costs for commissions, stock-based compensation, provision for income taxes including related reserves, valuation of intangible assets and goodwill, the incremental borrowing rate we use to determine our operating lease liabilities, and contingent liabilities. Management bases its estimates on historical experience and on various other assumptions which management believes to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. |
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| Restricted Cash | Restricted Cash Restricted cash is comprised of cash collateral for letters of credit related to our leases and for a vendor credit card program. |
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| Marketable Securities | Marketable Securities We classify our marketable securities as available-for-sale at the time of purchase and reevaluate such classification at each balance sheet date. We may sell these securities at any time for use in current operations even if they have not yet reached maturity. As a result, we classify our securities, including those with maturities beyond twelve months, as current assets in the accompanying condensed consolidated balance sheets. We carry these securities at fair value and record unrealized gains and losses, in accumulated other comprehensive income (loss), which is reflected as a component of stockholders’ equity. We evaluate our securities to assess whether those with unrealized loss positions are other than temporarily impaired. We consider impairments to be other than temporary if they are related to deterioration in credit risk or if it is likely we will sell the securities before the recovery of their cost basis. Realized gains and losses from the sale of marketable securities and declines in value deemed to be other than temporary are determined on the specific identification method. To date, there have been no declines in value deemed to be other than temporary in any of our securities. Realized gains and losses are reported in other income (expense), net in the condensed consolidated statements of operations. |
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| Business Combination | Business Combinations We allocate the purchase price to the assets acquired and liabilities assumed based on their estimated fair values. The excess of the purchase price over the fair values of the assets acquired and liabilities assumed is recorded as goodwill. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the estimated fair value of the assets acquired and liabilities assumed, with the corresponding offset to goodwill. The results of operations of an acquired business is included in our condensed consolidated financial statements from the date of acquisition. Acquisition-related expenses are expensed as incurred. |
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| Deferred Commissions | Deferred Commissions Deferred commissions consist of incremental costs paid to our sales force to obtain customer contracts. Deferred commissions related to product revenue are recognized upon transfer of control to customers and deferred commissions related to support subscription revenue are amortized over an expected useful life of six years. We determine the expected useful life based on an estimated benefit period by evaluating our technology development life cycle, expected customer relationship period and other factors. We classify deferred commissions as current and non-current on our condensed consolidated balance sheets based on the timing of when we expect to recognize the expense. Amortization of deferred commissions is included in sales and marketing expense in the condensed consolidated statements of operations. |
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| Operating Leases | Operating Leases We determine if an arrangement contains a lease at inception. Lease liabilities are recognized at the present value of the future lease payments at commencement date. The interest rate implicit in our operating leases is not readily determinable, and therefore an incremental borrowing rate is estimated to determine the present value of future payments. The estimated incremental borrowing rate factors in a hypothetical interest rate on a collateralized basis with similar terms, payments, and economic environments. The operating lease right-of-use (ROU) asset is determined based on the lease liability initially established and reduced for any prepaid lease payments and any lease incentives. We combine lease and non-lease components for our office facility leases. Certain of the operating lease agreements contain rent concession, rent escalation, and option to renew provisions. Rent concession and rent escalation provisions are considered in determining the straight-line lease cost to be recorded over the lease term. Lease cost is recognized on a straight-line basis over the lease term commencing on the date we have the right to use the leased property. We generally use the base, non-cancelable, lease term when recognizing the lease assets and liabilities, unless it is reasonably certain that an extension or termination option will be exercised. In addition, certain of our operating lease agreements contain tenant improvement allowances from our landlords. These allowances are accounted for as lease incentives and decrease our ROU asset and reduce single lease cost over the lease term. For short-term leases which have a lease term of less than twelve months and do not include an option to purchase the underlying asset that we are reasonably certain to exercise, we recognize rent expense in our condensed consolidated statements of operations on a straight-line basis over the lease term and record variable lease payments as incurred. |
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| Revenue Recognition | Revenue Recognition We derive revenue from two sources: (1) product revenue which includes hardware and embedded software and (2) support subscription revenue which includes customer support, hardware maintenance, and software upgrades on a when-and-if-available basis. Support subscription revenue also includes our Evergreen Storage Service (ES2) offering. Our product revenue is derived from the sale of storage hardware and operating system software that is integrated into the hardware. We typically recognize product revenue upon transfer of control to our customers. Products are typically shipped directly by us to customers, and our channel partners do not stock our inventory. Our support subscription revenue is derived from the sale of support subscription, which includes the right to receive unspecified software upgrades and enhancements on a when-and-if-available basis, bug fixes, parts replacement services related to the hardware, as well as access to our cloud-based management and support platform. Support subscription revenue is also derived from the sale of our ES2 offering. Revenue related to support revenue is recognized ratably over the contractual term, which generally ranges from one to six years and represents our performance obligations period. The vast majority of our products are sold with support subscription agreements, which typically commence upon transfer of control of the corresponding products to our customers. Costs to service the support subscription are expensed as incurred. In addition, our Evergreen Storage program provides our customers who continually maintain active support subscription agreements for three years with an included controller refresh with each additional three year support subscription renewal. In accordance with revenue recognition guidance, the controller refresh represents an additional performance obligation and the allocated revenue is recognized in the period in which these controllers are shipped. We recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration we expect to be entitled in exchange for those goods or services. This is achieved through applying the following five-step approach:
When applying this five-step approach, we apply judgment in determining the customer's ability and intention to pay, which is based on a variety of factors including the customer's historical payment experience and/or published credit and financial information pertaining to the customer. To the extent a customer contract includes multiple promised goods or services, we determine whether promised goods or services are capable of being distinct in the context of the contract to be accounted for as a separate performance obligation. The transaction price is determined based on the consideration which we will be entitled to in exchange for transferring goods or services to the customer. We allocate transaction price to each performance obligation for contracts that contain multiple performance obligations based on a relative standalone selling price which is determined based on the price at which the performance obligation is sold separately, or if not observable through past transactions, is estimated taking into account available information such as market conditions and internally approved pricing guidelines related to performance obligations. Deferred Revenue Deferred revenue primarily consists of amounts that have been invoiced but that have not yet been recognized as revenue and performance obligations pertaining to support subscription services. The current portion of deferred revenue represents the amounts that are expected to be recognized as revenue within one year of the condensed consolidated balance sheet dates. |
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| Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-02, Leases (ASC 842) and subsequent amendments to the initial guidance (collectively, Topic 842). ASC 842 requires lessees to generally recognize on its balance sheet operating and financing lease liabilities and corresponding ROU assets at the commencement date, and to recognize the associated lease expenses in the condensed consolidated statement of operations in a manner similar to that required under historical accounting rules. On February 1, 2019, we adopted ASC 842 using the modified retrospective approach by electing to use the optional transition method which allows us to continue to apply the guidance of ASC 840, including disclosure requirements, in the comparative periods presented. We elected the package of transition expedients, which allowed us to carry forward our historical lease classifications, our assessment of whether any existing leases as of the date of adoption are or contain leases, and our assessment of indirect costs for any leases that existed prior to adoption of the new standard. We elected to take the practical expedient to keep leases with an initial term of 12 months or less off the condensed consolidated balance sheet and recognize the associated lease payments in the consolidated statements of operations on a straight-line basis over the lease term. We recognized operating ROU assets of $124.5 million and lease liabilities of $130.6 million on our condensed consolidated balance sheet as of February 1, 2019, which included reclassifying prepaid rent and deferred rent as a component of the ROU asset. Topic 842 did not have a material impact on our condensed consolidated statements of operations and cash flows. Refer to Note 8 for additional disclosures. In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This standard allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 and requires certain disclosures about stranded tax effects. We adopted this standard on February 1, 2019 and the adoption had no impact on our condensed consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 amends guidance on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities to require that credit losses on available-for-sale debt securities be presented as an allowance rather than as a write-down. The measurement of credit losses for newly recognized financial assets and subsequent changes in the allowance for credit losses are recorded in the statements of operations. The amendments in this update will be effective for us beginning on February 1, 2020 with early adoption permitted on or after February 1, 2019. We are currently evaluating the impact of this standard on our condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13) which amended its conceptual framework to improve the effectiveness of disclosures in notes to financial statements. ASU 2018-13 eliminates such disclosures around the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy. The guidance also adds new disclosure requirements for Level 3 measurements. ASU 2018-13 is effective for us beginning February 1, 2020. Early adoption is permitted. We are currently evaluating the impact of this standard on our condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) - Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (ASU 2018-15). ASC 2018-15 aligns the requirements for capitalizing implementation costs in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This standard will be effective for us beginning February 1, 2020 and will be applied either retrospectively or prospectively. Early adoption is permitted. We are currently evaluating the impact of this standard on our condensed consolidated financial statements. |
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| Fair Value Measurements | Fair Value Measurements We measure our cash equivalents, marketable securities, and restricted cash at fair value on a recurring basis. We define fair value as the exchange price that would be received from sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We measure our financial assets and liabilities at fair value at each reporting period using a fair value hierarchy which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value:
We classify our cash equivalents, marketable securities and restricted cash within Level 1 or Level 2 because they are valued using either quoted market prices or inputs other than quoted prices which are directly or indirectly observable in the market, including readily-available pricing sources for the identical underlying security which may not be actively traded. Our fixed income available-for-sale securities consist of high quality, investment grade securities from diverse issuers. The valuation techniques used to measure the fair value of our marketable securities were derived from non-binding market consensus prices that are corroborated by observable market data or quoted market prices for similar instruments. In addition to our cash equivalents, marketable securities and restricted cash, we measure the fair value of our convertible senior notes (the Notes) on a quarterly basis for disclosure purposes. We consider the fair value of the Notes at April 30, 2019 to be a Level 2 measurement due to its limited trading activity. Refer to Note 6 for the carrying amount and estimated fair value of our Notes as of April 30, 2019. |
Basis of Presentation and Summary of Significant Accounting Policies (Tables) |
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| Deferred Commissions | Changes in total deferred commissions during the periods presented are as follows (in thousands):
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| Deferred Revenue | Changes in total deferred revenue during the periods presented are as follows (in thousands):
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Financial Instruments (Tables) |
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| Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash Equivalents, Marketable Securities and Restricted Cash | The following tables summarize our cash equivalents, marketable securities and restricted cash by significant investment categories as of January 31, 2019 and April 30, 2019 (in thousands):
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| 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):
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| Gross Unrealized Losses and Fair Values | The following table presents gross unrealized losses and fair values for those investments that were in a continuous unrealized loss position as of April 30, 2019, aggregated by investment category (in thousands):
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Balance Sheet Components (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance Sheet Components Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventory | Inventory consists of the following (in thousands):
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| Property and Equipment, Net | Property and equipment, net consists of the following (in thousands):
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| Intangible Assets, Net | Intangible assets, net consist of the following (in thousands):
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| Expected Amortization Expenses for Intangible Assets | As of April 30, 2019, future expected amortization expense for intangible assets is as follows (in thousands):
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| Goodwill | The change in the carrying amount of goodwill is as follows (in thousands):
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| Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consist of the following (in thousands):
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Convertible Senior Notes (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Convertible Debt | The Notes consisted of the following (in thousands):
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| Interest Expense | The following table sets forth total interest expense recognized related to the Notes for the three months ended April 30, 2018 and 2019 (in thousands):
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Leases (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lease costs | Supplemental cash flow information related to our operating leases for the three months ended April 30, 2019 as well as the weighted-average remaining lease term and weighted-average discount rate as of April 30, 2019 were as follows:
The components of lease costs were as follows (in thousands):
—————————— (1) Variable lease cost for the three months ended April 30, 2019 predominantly includes common area maintenance charges. |
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| Future minimum lease payments | Future lease payments under our non-cancelable operating leases as of April 30, 2019 were as follows (in thousands):
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| Schedule of future minimum rental payments for operating leases | As previously disclosed in our Annual Report on Form 10-K for the year ended January 31, 2019 and under the previous lease accounting standard, ASC 840, Leases, the following table summarizes the future minimum lease payments due under operating leases as of January 31, 2019 (in thousands):
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Equity Incentive Plans (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity Incentive Plans | A summary of stock option activity under our equity incentive plans and related information is as follows:
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| Restricted Stock Units | A summary of the RSU activity under our 2015 Plan and related information is as follows:
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| Restricted Stock | A summary of the restricted stock activity under our 2015 Plan and related information is as follows:
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| Stock-Based Compensation | The following table summarizes the components of stock-based compensation expense recognized in the condensed consolidated statements of operations (in thousands):
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Net Loss per Share Attributable to Common Stockholders (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Loss per Share | The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except per share data):
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| Shares Excluded | The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive (in thousands):
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Other Income (Expense), Net (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Income | Other income (expense), net consists of the following (in thousands):
____________________________________ (1) Interest income includes interest income related to our cash, cash equivalents and marketable securities and non-cash interest income related to accretion (amortization) of the discount (premium) on marketable securities. (2) Interest expense includes non-cash interest expense related to amortization of the debt discount and debt issuance costs and the contractual interest expense related to the Notes for the three months ended April 30, 2018 and 2019. |
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Segment Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue by Geographic Area | he 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):
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| Long-Lived Assets by Geographic Area | ong-lived assets by geographic area are summarized as follows (in thousands):
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Basis of Presentation and Summary of Significant Accounting Policies Narative (Details) - USD ($) $ in Thousands |
Apr. 30, 2019 |
Feb. 01, 2019 |
Jan. 31, 2019 |
Apr. 30, 2018 |
|---|---|---|---|---|
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
| Revenue recognition over next 12 months, percent | 40.00% | |||
| Operating lease right-of-use-assets | $ 120,446 | $ 0 | ||
| Operating lease liabilities | 126,873 | |||
| Restricted cash | $ 16,286 | $ 15,823 | $ 16,499 | |
| ASU 2016-02 | ||||
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
| Operating lease right-of-use-assets | $ 124,500 | |||
| Operating lease liabilities | $ 130,600 |
Deferred Commissions (Details) - USD ($) $ in Thousands |
3 Months Ended | |
|---|---|---|
Apr. 30, 2019 |
Apr. 30, 2018 |
|
| Accounting Policies [Abstract] | ||
| Remaining amortization period | 6 years | |
| Contract Assets | ||
| Beginning balance | $ 114,973 | $ 87,313 |
| Additions | 18,236 | 15,421 |
| Recognition of deferred commissions | (19,952) | (16,690) |
| Ending balance | $ 113,257 | $ 86,044 |
Deferred Commissions (Typed Dimensions) (Details) |
Apr. 30, 2019 |
|---|---|
| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-08-01 | |
| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
| Remaining performance obligation (as a percent) | 25.00% |
Deferred Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | |
|---|---|---|
Apr. 30, 2019 |
Apr. 30, 2018 |
|
| Contract Liability | ||
| Beginning balance | $ 535,920 | $ 374,102 |
| Additions | 117,894 | 75,271 |
| Recognition of deferred revenue | 89,584 | 60,759 |
| Ending balance | 564,230 | 388,614 |
| Product Revenue and Support Subscription Revenue | ||
| Contract Liability | ||
| Ending balance | 723,600 | |
| Deferred revenue recognized | $ 79,300 | $ 55,600 |
Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | |
|---|---|---|
Apr. 30, 2019 |
Apr. 30, 2018 |
|
| Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
| Total revenue | $ 326,700 | $ 255,945 |
| United States | ||
| Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
| Total revenue | 228,939 | 184,918 |
| Rest of the world | ||
| Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
| Total revenue | $ 97,761 | $ 71,027 |
Amortized Cost and Estimated Fair Value (Details) $ in Thousands |
Apr. 30, 2019
USD ($)
|
|---|---|
| Amortized Cost | |
| Due within one year | $ 297,158 |
| Due in one to five years | 579,999 |
| Total | 877,157 |
| Fair Value | |
| Due within one year | 297,026 |
| Due in one to five years | 581,932 |
| Total | $ 878,958 |
Business Combination (Details) - USD ($) $ in Thousands |
1 Months Ended | ||
|---|---|---|---|
Jun. 30, 2019 |
Apr. 30, 2019 |
Jan. 31, 2019 |
|
| Business Acquisition [Line Items] | |||
| Goodwill | $ 36,407 | $ 10,997 | |
| Acquisition consideration held back | 3,725 | $ 3,725 | |
| Compuverde AB | |||
| Business Acquisition [Line Items] | |||
| Acquisition Related Costs | 500 | ||
| Cash consideration transferred | 47,900 | ||
| Long-term debt assumed and subsequently paid off | 11,600 | ||
| Goodwill | 25,400 | ||
| Net liabilities assumed | 10,200 | ||
| Deferred tax liabilities assumed | 5,700 | ||
| Acquisition Costs | 15,900 | ||
| Compuverde AB | Developed technology | |||
| Business Acquisition [Line Items] | |||
| Finite-lived intangibles acquired | $ 38,400 | ||
| Useful Life (in years) | 7 years | ||
| Subsequent Event | Compuverde AB | Restricted Stock Units | |||
| Business Acquisition [Line Items] | |||
| Equity interests issued and issuable | $ 3,000 | ||
Inventory (Details) - USD ($) $ in Thousands |
Apr. 30, 2019 |
Jan. 31, 2019 |
|---|---|---|
| Balance Sheet Components Disclosure [Abstract] | ||
| Raw materials | $ 8,490 | $ 3,349 |
| Finished goods | 37,446 | 41,338 |
| Inventory | $ 45,936 | $ 44,687 |
Property and Equipment, Net (Details) - USD ($) $ in Thousands |
Apr. 30, 2019 |
Jan. 31, 2019 |
|---|---|---|
| Property Plant And Equipment [Line Items] | ||
| Total property and equipment | $ 352,438 | $ 329,526 |
| Less: accumulated depreciation and amortization | (223,253) | (204,173) |
| Property and equipment, net | 129,185 | 125,353 |
| Test equipment | ||
| Property Plant And Equipment [Line Items] | ||
| Total property and equipment | 180,148 | 170,930 |
| Computer equipment and software | ||
| Property Plant And Equipment [Line Items] | ||
| Total property and equipment | 128,610 | 117,330 |
| Furniture and fixtures | ||
| Property Plant And Equipment [Line Items] | ||
| Total property and equipment | 7,678 | 6,980 |
| Leasehold improvements | ||
| Property Plant And Equipment [Line Items] | ||
| Total property and equipment | $ 36,002 | $ 34,286 |
Balance Sheet Components Narative (Details) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Apr. 30, 2019 |
Apr. 30, 2018 |
|
| Balance Sheet Components Disclosure [Abstract] | ||
| Depreciation and amortization | $ 19.8 | $ 16.0 |
| Intangible assets amortization expense | $ 1.3 | $ 0.4 |
| Technology patents | ||
| Finite-Lived Intangible Assets [Line Items] | ||
| Weighted-average remaining useful life (in years) | 2 years 1 month 6 days | |
| Developed technology | ||
| Finite-Lived Intangible Assets [Line Items] | ||
| Weighted-average remaining useful life (in years) | 6 years 9 months 18 days | |
Intangible Assets, Net (Details) - USD ($) $ in Thousands |
Apr. 30, 2019 |
Jan. 31, 2019 |
|---|---|---|
| Finite-Lived Intangible Assets [Line Items] | ||
| Gross Carrying Value | $ 66,225 | $ 27,825 |
| Accumulated Amortization | (9,005) | (7,707) |
| Net Carrying Amount | 57,220 | 20,118 |
| Technology patents | ||
| Finite-Lived Intangible Assets [Line Items] | ||
| Gross Carrying Value | 10,125 | 10,125 |
| Accumulated Amortization | (6,948) | (6,572) |
| Net Carrying Amount | 3,177 | 3,553 |
| Developed technology | ||
| Finite-Lived Intangible Assets [Line Items] | ||
| Gross Carrying Value | 56,100 | 17,700 |
| Accumulated Amortization | (2,057) | (1,135) |
| Net Carrying Amount | $ 54,043 | $ 16,565 |
Expected Amortization Expenses for Intangible Assets (Details) - USD ($) $ in Thousands |
Apr. 30, 2019 |
Jan. 31, 2019 |
|---|---|---|
| Balance Sheet Components Disclosure [Abstract] | ||
| Remainder of 2020 | $ 7,138 | |
| 2021 | 9,518 | |
| 2022 | 8,560 | |
| 2023 | 8,014 | |
| 2024 | 8,014 | |
| Thereafter | 15,976 | |
| Net Carrying Amount | $ 57,220 | $ 20,118 |
Goodwill (Details) $ in Thousands |
3 Months Ended |
|---|---|
|
Apr. 30, 2019
USD ($)
| |
| Goodwill [Roll Forward] | |
| January 31, 2019 | $ 10,997 |
| Goodwill acquired | 25,410 |
| April 30, 2019 | $ 36,407 |
Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands |
Apr. 30, 2019 |
Jan. 31, 2019 |
|---|---|---|
| Balance Sheet Components Disclosure [Abstract] | ||
| Taxes payable | $ 7,550 | $ 7,146 |
| Accrued marketing | 7,560 | 6,173 |
| Accrued travel and entertainment expenses | 4,227 | 3,570 |
| Acquisition consideration held back | 3,725 | 3,725 |
| Other accrued liabilities | 24,330 | 19,246 |
| Total accrued expenses and other liabilities | $ 47,392 | $ 39,860 |
Convertible Debt (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
|---|---|---|---|
Oct. 31, 2018 |
Apr. 30, 2018 |
Apr. 30, 2019 |
|
| Liability: | |||
| Less: debt issuance costs, net of amortization | $ (12,900) | ||
| Stockholders' equity: | |||
| Allocated value of the conversion feature | 133,265 | ||
| Less: debt issuance costs | (12,900) | ||
| Convertible Senior Notes | |||
| Liability: | |||
| Principal | $ 575,000 | ||
| Less: debt discount, net of amortization | (110,670) | ||
| Less: debt issuance costs, net of amortization | (9,800) | (8,012) | |
| Net carrying amount of the Notes | 456,318 | ||
| Stockholders' equity: | |||
| Less: debt issuance costs | (9,800) | (8,012) | |
| Additional Paid-In Capital | |||
| Liability: | |||
| Less: debt issuance costs, net of amortization | (3,100) | (3,068) | |
| Stockholders' equity: | |||
| Allocated value of the conversion feature | $ 136,333 | ||
| Less: debt issuance costs | $ (3,100) | $ (3,068) | |
| Additional paid-in capital | $ 133,265 |
Interest Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | |
|---|---|---|
Apr. 30, 2019 |
Apr. 30, 2018 |
|
| Debt Instrument [Line Items] | ||
| Total amortization of debt discount and debt issuance costs | $ 6,490 | $ 1,455 |
| Convertible Senior Notes | ||
| Debt Instrument [Line Items] | ||
| Amortization of debt discount | 6,052 | 1,357 |
| Amortization of debt issuance costs | 438 | 98 |
| Total amortization of debt discount and debt issuance costs | 6,490 | 1,455 |
| Contractual interest expense | 177 | 43 |
| Total interest expense related to the Notes | $ 6,667 | $ 1,498 |
| Effective interest rate of the liability component | 5.60% | 5.60% |
Commitments and Contingencies Narative (Details) - USD ($) |
Apr. 30, 2019 |
Jan. 31, 2019 |
Apr. 30, 2018 |
|---|---|---|---|
| Lessee, Lease, Description [Line Items] | |||
| Outstanding letters of credit | $ 11,300,000 | $ 10,800,000 | |
| Letter of Credit | |||
| Lessee, Lease, Description [Line Items] | |||
| Principal amount | $ 461,462.000000 | ||
| Convertible Senior Notes | |||
| Lessee, Lease, Description [Line Items] | |||
| Principal amount | $ 575,000,000.0 |
Leases Lease costs (Details) $ in Thousands |
3 Months Ended |
|---|---|
|
Apr. 30, 2019
USD ($)
| |
| Leases [Abstract] | |
| Fixed operating lease cost | $ 8,483 |
| Variable lease cost | 2,100 |
| Short-term lease cost (12 months or less) | 861 |
| Total lease cost | $ 11,444 |
Leases Future minimum lease payments (Details) $ in Thousands |
Apr. 30, 2019
USD ($)
|
|---|---|
| Leases [Abstract] | |
| The remainder of 2020 | $ 25,057 |
| 2021 | 33,357 |
| 2022 | 26,555 |
| 2023 | 21,169 |
| 2024 | 15,328 |
| Thereafter | 31,236 |
| Total future lease payments | 152,702 |
| Less: imputed interest | (25,829) |
| Present value of lease liabilities | $ 126,873 |
Leases Lease cash flow information (Details) $ in Thousands |
3 Months Ended |
|---|---|
|
Apr. 30, 2019
USD ($)
| |
| Leases [Abstract] | |
| Cash paid for amounts included in the measurement of lease liabilities | $ 8,114 |
| Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ 2,327 |
| Weighted-average remaining lease term (years) | 5 years 5 months 1 day |
| Weighted-average discount rate (as a percent) | 6.45% |
Leases Schedule Aggregate Future Minimum Payments Under Non-Cancelable Operating Leases (Details) $ in Thousands |
Jan. 31, 2019
USD ($)
|
|---|---|
| Leases [Abstract] | |
| 2020 | $ 31,297 |
| 2021 | 28,573 |
| 2022 | 24,381 |
| 2023 | 20,440 |
| 2024 | 14,780 |
| Thereafter | 30,096 |
| Total future lease payments | $ 149,567 |
Net Loss per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
|---|---|---|
Apr. 30, 2019 |
Apr. 30, 2018 |
|
| Earnings Per Share [Abstract] | ||
| Net loss | $ (100,336) | $ (64,304) |
| Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted (in shares) | 245,334 | 223,768 |
| Net loss per share attributable to common stockholders, basic and diluted (in dollars per share) | $ (0.41) | $ (0.29) |
Other Income (Expense), Net Other Income (Details) - USD ($) $ in Thousands |
3 Months Ended | |
|---|---|---|
Apr. 30, 2019 |
Apr. 30, 2018 |
|
| Other Income and Expenses [Abstract] | ||
| Interest income | $ 6,834 | $ 1,871 |
| Interest expense | (6,667) | (1,498) |
| Foreign currency transactions gains (losses) | (1,981) | (2,134) |
| Other income (expense) | (2) | 762 |
| Total other income (expense), net | $ (1,816) | $ (999) |
Income Taxes (Details) $ in Millions |
Apr. 30, 2019
USD ($)
|
|---|---|
| Compuverde AB | |
| Business Acquisition [Line Items] | |
| Deferred Tax Liabilities, Net | $ 5.7 |
Segment Information Narative (Details) |
3 Months Ended |
|---|---|
|
Apr. 30, 2019
segment
| |
| Segment Reporting [Abstract] | |
| Number of business activities | 1 |
| Number of reportable segments | 1 |
Revenue by Geographic Area (Details) - USD ($) $ in Thousands |
3 Months Ended | |
|---|---|---|
Apr. 30, 2019 |
Apr. 30, 2018 |
|
| Revenues From External Customers And Long Lived Assets [Line Items] | ||
| Total revenue | $ 326,700 | $ 255,945 |
| United States | ||
| Revenues From External Customers And Long Lived Assets [Line Items] | ||
| Total revenue | 228,939 | 184,918 |
| Rest of the world | ||
| Revenues From External Customers And Long Lived Assets [Line Items] | ||
| Total revenue | $ 97,761 | $ 71,027 |
Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Thousands |
Apr. 30, 2019 |
Jan. 31, 2019 |
|---|---|---|
| Revenues From External Customers And Long Lived Assets [Line Items] | ||
| Total long-lived assets | $ 129,185 | $ 125,353 |
| United States | ||
| Revenues From External Customers And Long Lived Assets [Line Items] | ||
| Total long-lived assets | 120,841 | 120,876 |
| Rest of the world | ||
| Revenues From External Customers And Long Lived Assets [Line Items] | ||
| Total long-lived assets | $ 8,344 | $ 4,477 |