PURE STORAGE, INC., 10-Q filed on 12/6/2018
Quarterly Report
v3.10.0.1
Document and Entity Information - shares
9 Months Ended
Oct. 31, 2018
Nov. 28, 2018
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Oct. 31, 2018  
Document Fiscal Year Focus 2019  
Document Fiscal Period Focus Q3  
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  
Class A    
Entity Common Stock, Shares Outstanding (in shares)   216,507,814
Class B    
Entity Common Stock, Shares Outstanding (in shares)   25,108,923
v3.10.0.1
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Oct. 31, 2018
Jan. 31, 2018
[1]
Current assets:    
Cash and cash equivalents $ 406,641 $ 244,057
Marketable securities 737,020 353,289
Accounts receivable, net of allowance of $1,062 and $1,052 as of January 31, 2018 and October 31, 2018 305,649 243,001
Inventory 50,737 34,497
Deferred commissions, current 24,100 21,088
Prepaid expenses and other current assets 44,657 47,552
Total current assets 1,568,804 943,484
Property and equipment, net 115,266 89,142
Deferred commissions, non-current 72,340 66,225
Intangible assets, net 21,126 5,057
Goodwill 10,997 0
Deferred income taxes, non-current 1,766 1,060
Restricted cash 15,822 14,763
Other assets, non-current 5,245 4,264
Total assets 1,811,366 1,123,995
Current liabilities:    
Accounts payable 101,979 84,420
Accrued compensation and benefits 53,213 59,898
Accrued expenses and other liabilities 43,633 26,829
Deferred revenue, current 232,570 191,229
Liability related to early exercised stock options 0 320
Total current liabilities 431,395 362,696
Convertible senior notes, net 443,212 0
Deferred revenue, non-current 228,618 182,873
Other liabilities, non-current 5,813 4,025
Total liabilities 1,109,038 549,594
Commitments and contingencies (Note 7)
Stockholders’ equity:    
Preferred stock, par value of $0.0001 per share— 20,000 shares authorized as of January 31, 2018 and October 31, 2018; no shares issued and outstanding as of January 31, 2018 and October 31, 2018 0 0
Class A and Class B common stock, par value of $0.0001 per share— 2,250,000 (Class A 2,000,000, Class B 250,000) shares authorized as of January 31, 2018 and October 31, 2018; 220,979 (Class A 129,502, Class B 91,477) and 241,359 (Class A 216,252, Class B 25,107) shares issued and outstanding as of January 31, 2018 and October 31, 2018 24 22
Additional paid-in capital 1,761,597 1,479,883
Accumulated other comprehensive loss (3,099) (1,917)
Accumulated deficit (1,056,194) (903,587)
Total stockholders’ equity 702,328 574,401
Total liabilities and stockholders’ equity $ 1,811,366 $ 1,123,995
[1] *Prior period information has been adjusted to reflect the adoption impact of Accounting Standards Codification 606, Revenue from Contracts with Customers (ASC 606), which we adopted on February 1, 2018.
v3.10.0.1
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Oct. 31, 2018
Jan. 31, 2018
[1]
Accounts receivable, allowance $ 1,052 $ 1,062
Preferred stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Preferred stock, shares authorized (in shares) 20,000,000 20,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value per share (in dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized (in shares) 2,250,000,000 2,250,000,000
Common stock, shares issued (in shares) 241,359,000 220,979,000
Common stock, shares outstanding (in shares) 241,359,000 220,979,000
Class A    
Common stock, par value per share (in dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized (in shares) 2,000,000,000 2,000,000,000
Common stock, shares issued (in shares) 216,252,136 129,502,000
Common stock, shares outstanding (in shares) 216,252,136 129,502,000
Class B    
Common stock, par value per share (in dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized (in shares) 250,000,000 250,000,000
Common stock, shares issued (in shares) 25,107,173 91,477,000
Common stock, shares outstanding (in shares) 25,107,173 91,477,000
[1] *Prior period information has been adjusted to reflect the adoption impact of Accounting Standards Codification 606, Revenue from Contracts with Customers (ASC 606), which we adopted on February 1, 2018.
v3.10.0.1
Condensed Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 9 Months Ended
Oct. 31, 2018
Oct. 31, 2017
[1]
Oct. 31, 2018
Oct. 31, 2017
[1]
Revenue $ 372,779 $ 277,591 $ 937,608 $ 684,906
Cost of revenue 123,659 95,859 316,008 235,858
Gross profit 249,120 181,732 621,600 449,048
Operating expenses:        
Research and development 90,783 68,927 253,306 203,716
Sales and marketing 146,903 116,971 413,019 326,286
General and administrative 38,651 25,406 99,572 67,664
Total operating expenses 276,337 211,304 765,897 597,666
Loss from operations (27,217) (29,572) (144,297) (148,618)
Other income (expense), net (2,889) 1,138 (7,920) 6,399
Loss before provision for income taxes (30,106) (28,434) (152,217) (142,219)
Income tax provision (benefit) (1,926) 970 390 2,755
Net loss $ (28,180) $ (29,404) [2] $ (152,607) $ (144,974) [2],[3]
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share) $ (0.12) $ (0.14) $ (0.66) $ (0.69)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted (in shares) 235,205 213,274 229,505 209,456
Product        
Revenue $ 298,863 $ 227,772 $ 735,449 $ 550,291
Cost of revenue 96,610 75,392 241,292 179,289
Support subscription        
Revenue 73,916 49,819 202,159 134,615
Cost of revenue $ 27,049 $ 20,467 $ 74,716 $ 56,569
[1] * Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018.
[2] * Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018.
[3] * Prior period information has been adjusted to reflect the adoption impact of ASC 606 and Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016-18), which we adopted on February 1, 2018
v3.10.0.1
Condensed Consolidated Statements of Comprehensive Loss - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Oct. 31, 2018
Oct. 31, 2017
[2]
Oct. 31, 2018
Oct. 31, 2017
[2]
Statement of Comprehensive Income [Abstract]        
Net loss $ (28,180) $ (29,404) [1] $ (152,607) $ (144,974) [1],[3]
Other comprehensive loss:        
Change in unrealized net loss on available-for-sale securities (273) (439) (1,182) (157)
Comprehensive loss $ (28,453) $ (29,843) $ (153,789) $ (145,131)
[1] * Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018.
[2] * Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018.
[3] * Prior period information has been adjusted to reflect the adoption impact of ASC 606 and Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016-18), which we adopted on February 1, 2018
v3.10.0.1
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
9 Months Ended
Oct. 31, 2018
Oct. 31, 2017
[1]
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (152,607) $ (144,974) [2],[3]
Adjustments to reconcile net loss to net cash provided by operating activities:    
Depreciation and amortization 51,381 45,525
Amortization of debt discount and debt issuance costs 14,414 0
Stock-based compensation expense 155,938 107,920
Deferred income taxes (4,402) (121)
Other (635) 1,000
Changes in operating assets and liabilities, net of effects of acquisition:    
Accounts receivable, net (62,623) (33,630)
Inventory (17,103) (14,314)
Deferred commissions (9,127) (13,969)
Prepaid expenses and other assets 1,996 (112)
Accounts payable 11,800 11,808
Accrued compensation and other liabilities 7,592 359
Deferred revenue 87,005 54,264
Net cash provided by operating activities 83,629 13,756
CASH FLOWS FROM INVESTING ACTIVITIES    
Purchases of property and equipment (70,807) (44,351)
Acquisition, net of cash acquired (13,899) 0
Purchases of marketable securities (558,248) (151,998)
Sales of marketable securities 18,802 46,067
Maturities of marketable securities 156,049 99,021
Net cash used in investing activities (468,103) (51,261)
CASH FLOWS FROM FINANCING ACTIVITIES    
Net proceeds from exercise of stock options 43,342 15,761
Proceeds from issuance of common stock under employee stock purchase plan 33,444 22,137
Proceeds from issuance of convertible senior notes, net of issuance costs 562,062 0
Payment for purchase of capped calls (64,630) 0
Repayment of debt assumed from acquisition (6,101) 0
Repurchase of common stock (20,000) 0
Net cash provided by financing activities 548,117 37,898
Net increase in cash, cash equivalents and restricted cash 163,643 393
Cash, cash equivalents and restricted cash, beginning of period 258,820 196,409
Cash, cash equivalents and restricted cash, end of period 422,463 196,802
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD:    
Cash and cash equivalents 406,641 182,039
Restricted cash 15,822 14,763
Cash, cash equivalents and restricted cash, end of period 422,463 196,802
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION    
Cash paid for income taxes 4,121 2,410
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING INFORMATION    
Property and equipment purchased but not yet paid 14,605 9,831
Acquisition consideration held back to satisfy potential indemnification claims 3,725 0
Vesting of early exercised stock options $ 320 $ 794
[1] * Prior period information has been adjusted to reflect the adoption impact of ASC 606 and Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016-18), which we adopted on February 1, 2018
[2] * Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018.
[3] * Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018.
v3.10.0.1
Business Overview
9 Months Ended
Oct. 31, 2018
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 data platform replaces storage systems designed for mechanical disk with all-flash systems optimized end-to-end for solid-state memory. Our Pure1 cloud-based support and management platform simplifies storage administration and provides real-time scanning to find and fix issues. Our business model replaces the traditional forklift upgrade cycle with Evergreen Storage subscriptions to hardware and software innovation, support and maintenance.
v3.10.0.1
Basis of Presentation and Summary of Significant Accounting Policies
9 Months Ended
Oct. 31, 2018
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, 2018.
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 2019 or any future period. Certain prior period amounts have been adjusted as a result of adoption of new accounting pronouncements. Refer to "Recently Adopted Accounting Pronouncements" below for further information.
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 and deferred sales commissions, stock-based compensation, provision for income taxes including related reserves, valuation of intangible assets and goodwill, 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 related to our leases and for a vendor corporate credit card program. As of January 31, 2018 and October 31, 2018, we had restricted cash of $14.8 million and $15.8 million on 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 loss, which is reflected as a component of stockholders’ equity. We evaluate our securities to assess whether those with unrealized loss positions are other than temporarily impaired. We consider impairments to be other than temporary if they are related to deterioration in credit risk or if it is likely we will sell the securities before the recovery of their cost basis. Realized gains and losses from the sale of marketable securities and declines in value deemed to be other than temporary are determined on the specific identification method. To date, there have been no declines in value deemed to be other than temporary in any of our securities. Realized gains and losses are reported in other income (expense), net in the condensed consolidated statements of operations.
Business Combination
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. The results of operations of the acquired businesses are 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 revenues are recognized upon transfer of control to customers and deferred commissions related to support subscription revenue are amortized over an expected useful life of six years. We determine the expected useful life based on an estimated benefit period by evaluating our technology development life cycle, expected customer relationship period, and other factors. We classify deferred commissions as current and non-current on our condensed consolidated balance sheets based on the timing of when we expect to recognize the expense. Amortization of deferred commissions is included in sales and marketing expense in the condensed consolidated statements of operations.
Changes in total deferred commissions during the periods presented are as follows (in thousands):
 
Three Months Ended October 31, 2018
 
Nine Months Ended October 31, 2018
Beginning balance (1)
$
91,469

 
$
87,313

Additions
31,884

 
71,887

Recognition of deferred commissions
(26,913
)
 
(62,760
)
Ending balance as of October 31, 2018
$
96,440

 
$
96,440


____________________ 
(1) Balance as of January 31, 2018 was adjusted to reflect the adoption of ASC 606.

Of the $96.4 million total deferred commissions balance as of October 31, 2018, 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 and nine months ended October 31, 2017 and 2018.
Deferred Revenue
Deferred revenue primarily consists of amounts that have been invoiced but that have not yet been recognized as revenue and performance obligations pertaining to support subscription services. The current portion of deferred revenue represents the amounts that are expected to be recognized as revenue within one year of the condensed consolidated balance sheet dates.
Changes in total deferred revenue during the periods presented are as follows (in thousands):
 
Three Months Ended October 31, 2018
 
Nine Months Ended October 31, 2018
Beginning balance (1)
$
413,247

 
$
374,102

Additions
122,681

 
290,463

Recognition of deferred revenue
(74,740
)
 
(203,377
)
Ending balance as of October 31, 2018
$
461,188

 
$
461,188

____________________ 
(1) Balance as of January 31, 2018 was adjusted to reflect the adoption of ASC 606.

During the three and nine months ended October 31, 2017, we recognized $47.3 million and $108.2 million in revenue pertaining to deferred revenue as of the beginning of each period. During the three and nine months ended October 31, 2018, we recognized $67.0 million and $151.4 million in revenue pertaining to deferred revenue as of the beginning of each period.
Of the $461.2 million remaining performance obligations as of October 31, 2018, we expect to recognize approximately 50% as revenue over the next 12 months and the remainder thereafter.
Substantially all of our contracted but not invoiced performance obligations are subject to cancellation and, therefore, are not considered in our remaining performance obligations.
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.
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. Revenue related to support subscription is recognized ratably over the contractual term, which generally ranges from one to six years and represents our performance obligations period. The vast majority of our products are sold with support subscription agreements, which typically commence upon transfer of control of the corresponding products to our customers. Costs to service the support subscription are expensed as incurred. In addition, our Evergreen Storage program provides our customers who continually maintain active support subscription agreements for three years with an included controller refresh with each additional three year support subscription renewal. In accordance with revenue recognition guidance, the controller refresh represents an additional performance obligation and the allocated revenue is recognized in the period in which these controllers are shipped.
We recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration we expect to be entitled in exchange for those goods or services. This is achieved through applying the following five-step approach:
Identification of the contract, or contracts, with a customer
Identification of the performance obligations in the contract
Determination of the transaction price
Allocation of the transaction price to the performance obligations in the contract
Recognition of revenue when, or as, we satisfy a performance obligation
When applying this five-step approach, we apply judgment in determining the customer's ability and intention to pay, which is based on a variety of factors including the customer's historical payment experience and/or published credit and financial information pertaining to the customer. To the extent a customer contract includes multiple promised goods or services, we determine whether promised goods or services are capable of being distinct in the context of the contract to be accounted for as a combined performance obligation. We allocate transaction price to each performance obligation for contracts that contain multiple performance obligations based on a relative standalone selling price, taking into account available information such as market conditions and internally approved pricing guidelines related to performance obligations.
Recently Adopted Accounting Pronouncements
In May 2014, the Financial Accounting Standards Board (FASB), issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09 or ASC 606), requiring an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASC 606 supersedes nearly all existing revenue recognition guidance under U.S. GAAP upon its effective date. The standard permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of applying the standard recognized at the date of application (cumulative catch-up transition method).
We adopted the standard using the full retrospective method beginning February 1, 2018, for the year ending January 31, 2019, and our historical financial information for the years ended January 31, 2017 and 2018 has been adjusted to conform to the new standard.
The most significant impact of the standard related to the removal of limitation on contingent revenue, resulting in an increase in product revenue and a decrease in support subscription revenue. In addition, the adoption of ASC 606 also resulted in differences in the timing of recognition of sales commissions. While the adoption of the standard changes certain line items within the net cash flow from operating activities, it had no impact on the net cash provided by or used in operating, investing, or financing activities on our condensed consolidated statements of cash flows.
The following line items on our condensed consolidated balance sheet as of January 31, 2018 have been adjusted to reflect the adoption of ASC 606 (in thousands):
 
As of January 31, 2018
 
As Previously Reported
 
Adjustment
 
As Adjusted
Assets:
 
 
 
 
 
Deferred commissions, current
$
22,437

 
$
(1,349
)
 
$
21,088

Deferred commissions, non-current
20,288

 
45,937

 
66,225

Total deferred commissions
$
42,725

 
$
44,588

 
$
87,313

Liabilities:
 
 
 
 
 
Deferred revenue, current
$
209,377

 
$
(18,148
)
 
$
191,229

Deferred revenue, non-current
196,632

 
(13,759
)
 
182,873

Total deferred revenue
$
406,009

 
$
(31,907
)
 
$
374,102

Stockholders' equity:
 
 
 
 
 
Accumulated deficit
$
(980,082
)
 
$
76,495

 
$
(903,587
)

The following line items on our unaudited condensed consolidated statement of operations for the three and nine months ended October 31, 2017 have been adjusted to reflect the adoption of ASC 606 (in thousands, except per share data):
 
Three Months Ended October 31, 2017
 
Nine Months Ended October 31, 2017
 
As Previously Reported
 
Adjustment
 
As Adjusted
 
As Previously Reported
 
Adjustment
 
As Adjusted
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Product
$
223,196

 
$
4,576

 
$
227,772

 
$
536,634

 
$
13,657

 
$
550,291

Support subscription
54,478

 
(4,659
)
 
49,819

 
148,132

 
(13,517
)
 
134,615

Total revenue
$
277,674

 
$
(83
)
 
$
277,591

 
$
684,766

 
$
140

 
$
684,906

 
 
 
 
 
 
 
 
 
 
 
 
Gross profit
$
181,815

 
$
(83
)
 
$
181,732

 
$
448,908

 
$
140

 
$
449,048

Sales and marketing
$
129,299

 
$
(12,328
)
 
$
116,971

 
$
346,896

 
$
(20,610
)
 
$
326,286

Total operating expenses
$
223,632

 
$
(12,328
)
 
$
211,304

 
$
618,276

 
$
(20,610
)
 
$
597,666

Loss from operations
$
(41,817
)
 
$
12,245

 
$
(29,572
)
 
$
(169,368
)
 
$
20,750

 
$
(148,618
)
Loss before provision for income taxes
$
(40,679
)
 
$
12,245

 
$
(28,434
)
 
$
(162,969
)
 
$
20,750

 
$
(142,219
)
Net loss
$
(41,649
)
 
$
12,245

 
$
(29,404
)
 
$
(165,724
)
 
$
20,750

 
$
(144,974
)
Net loss per share attributable to common stockholders, basic and diluted
$
(0.20
)
 
$
0.06

 
$
(0.14
)
 
$
(0.79
)
 
$
0.10

 
$
(0.69
)

Unaudited revenue by geographic location based on bill-to location, which reflects the adoption impact of ASC 606, are as follows (in thousands):
 
Three Months Ended October 31, 2017
 
Nine Months Ended October 31, 2017
 
As Previously Reported
 
Adjustment
 
As Adjusted
 
As Previously Reported
 
Adjustment
 
As Adjusted
Revenue:
 
 
 
 
 
 
 
 
 
 
 
United States
$
192,977

 
$
(58
)
 
$
192,919

 
$
504,937

 
$
108

 
$
505,045

Rest of the world
84,697

 
(25
)
 
84,672

 
179,829

 
32

 
179,861

Total revenue
$
277,674

 
$
(83
)
 
$
277,591

 
$
684,766

 
$
140

 
$
684,906



In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016-18), which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and restricted cash. We adopted ASU 2016-18 effective February 1, 2018 on a retrospective basis. Upon adoption, restricted cash is included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The adoption of this standard increased our previously reported net cash flow from investing activities for the periods in which there were changes in restricted cash but did not impact our net cash flow from operating activities or financing activities presented on our consolidated statements of cash flows.
The following line items in our unaudited condensed consolidated statement of cash flows for the nine months ended October 31, 2017 have been adjusted to reflect the adoption of ASU 2016-18 and ASC 606 (in thousands):
 
Nine Months Ended October 31, 2017
 
As Previously Reported
 
Adjustment
 
As Adjusted
Net loss (1)
$
(165,724
)
 
$
20,750

 
$
(144,974
)
Adjustments to reconcile net loss to net cash provided by operating activities:
 
 
 
 
 
Deferred commissions (1)
$
(7,629
)
 
$
(6,340
)
 
$
(13,969
)
Accrued compensation and other liabilities (1)
$
14,629

 
$
(14,270
)
 
$
359

Deferred revenue (1)
$
54,404

 
$
(140
)
 
$
54,264

Cash provided by operating activities
$
13,756

 
$

 
$
13,756

Net increase in restricted cash (2)
$
(2,029
)
 
$
2,029

 
$

Net cash used in investing activities (2)
$
(53,290
)
 
$
2,029

 
$
(51,261
)
Net increase (decrease) in cash, cash equivalents and restricted cash (2)
$
(1,636
)
 
$
2,029

 
$
393

Cash, cash equivalents and restricted cash, beginning of period (2)
$
183,675

 
$
12,734

 
$
196,409

Cash, cash equivalents and restricted cash, end of period (2)
$
182,039

 
$
14,763

 
$
196,802

_____________________________________________________
(1) Adjustment pertaining to the adoption of ASC 606.
(2) Adjustment pertaining to the adoption of ASU 2016-18.
In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718) (ASU 2018-07). ASU 2018-07 aligns the accounting for share-based awards to employees and non-employees to follow the same model. The new standard is effective for fiscal years beginning after December 15, 2018 using a modified retrospective transition approach. Early adoption is permitted. We adopted this standard for the three and nine months ended October 31, 2018 and the adoption of this standard did not materially impact our consolidated financial statements.
Recent Accounting Pronouncements Not Yet Adopted
In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (ASU 2016-02). ASU 2016-02 requires lessees to recognize all leases with terms in excess of one year on their balance sheet as a right-of-use asset and a lease liability at the commencement date. The new standard also simplifies the accounting for sale and leaseback transactions. ASU 2016-02 requires the use of the modified retrospective method for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. In July 2018, the FASB issued ASU No. 2018-10, Leases (Topic 842), Codification Improvements to Topic 842, Leases (ASU 2018-10) and ASU No. 2018-11, Leases (Topic 842), Targeted Improvements (ASU 2018-11). ASU 2018-11 provides a new transition method in which an entity can initially apply the new lease standards at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. These standards will be effective for us beginning on February 1, 2019 and early adoption is permitted. We expect to apply the new transition method prescribed by ASU 2018-11 at the adoption date. We are currently evaluating the impact of these standards on our consolidated financial statements and expect that most of our operating lease commitments will be subject to the new standard and recognized as lease liabilities and right-of-use assets, which will increase our total assets and total liabilities upon adoption.
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 consolidated financial statements.
In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350)Simplifying the Test for Goodwill Impairment, which eliminates Step 2 from the goodwill impairment test. This standard is effective, on a prospective basis, for our goodwill impairment tests beginning February 1, 2020. Early adoption is permitted. We are evaluating the impact of this standard on our consolidated financial statements.
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 (the Tax Act) and requires certain disclosures about stranded tax effects. This standard will be effective for us beginning February 1, 2019 and should be applied either in the period of adoption or retrospectively. Early adoption is permitted. We do not expect this standard to have any impact on our 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 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 should be applied either retrospectively or prospectively. Early adoption is permitted. We are currently evaluating the impact of this standard on our consolidated financial statements.
In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders' equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders' equity presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. This final rule was effective on November 5, 2018. We are evaluating the impact of this guidance on our condensed consolidated financial statements and expect to adopt this guidance in the first quarter of fiscal 2020.
v3.10.0.1
Financial Instruments
9 Months Ended
Oct. 31, 2018
Investments, Debt and Equity Securities [Abstract]  
Financial Instruments
Financial Instruments  
Fair Value Measurements
We measure our cash equivalents, marketable securities, and restricted cash at fair value on a recurring basis. We define fair value as the exchange price that would be received from sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We measure our financial assets and liabilities at fair value at each reporting period using a fair value hierarchy which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value:

Level 1 - Observable inputs are unadjusted quoted prices in active markets for identical assets or liabilities;

Level 2 - Observable inputs are quoted prices for similar assets and liabilities in active markets or inputs other than quoted prices that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments; and

Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. These inputs are based on our own assumptions used to measure assets and liabilities at fair value and require significant management judgment or estimation.
We classify our cash equivalents, marketable securities and restricted cash within Level 1 or Level 2 because they are valued using either quoted market prices or inputs other than quoted prices which are directly or indirectly observable in the market, including readily-available pricing sources for the identical underlying security which may not be actively traded. Our fixed income available-for-sale securities consist of high quality, investment grade securities from diverse issuers. The valuation techniques used to measure the fair value of our marketable securities were derived from non-binding market consensus prices that are corroborated by observable market data or quoted market prices for similar instruments.
In addition to our cash equivalents, marketable securities, and restricted cash, we measure the fair value of our convertible senior notes (the Notes) on a quarterly basis for disclosure purposes. We consider the fair value of the Notes at October 31, 2018 to be a Level 2 measurement due to limited trading activity of the Notes. Refer to Note 6 for further information.
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, 2018 and October 31, 2018 (in thousands):
 
 
As of January 31, 2018
 
Amortized
Cost
 
Gross Unrealized
Gains
 
Gross Unrealized
Losses
 
Fair
Value
 
Cash Equivalents
 
Marketable Securities
 
Restricted Cash
Level 1
 

 
 

 
 

 
 

 
 

 
 
 
 

Money market accounts
$

 
$

 
$

 
$
32,057

 
$
17,294

 
$

 
$
14,763

Level 2
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government treasury notes
131,643

 

 
(651
)
 
130,992

 
10,172

 
120,820

 

U.S. government agencies
47,229

 

 
(333
)
 
46,896

 

 
46,896

 

Corporate debt securities
186,506

 
116

 
(1,049
)
 
185,573

 

 
185,573

 

Total
$
365,378

 
$
116

 
$
(2,033
)
 
$
395,518

 
$
27,466

 
$
353,289

 
$
14,763


 
As of October 31, 2018
 
Amortized
Cost
 
Gross Unrealized
Gains
 
Gross Unrealized
Losses
 
Fair
Value
 
Cash Equivalents
 
Marketable
Securities
 
Restricted Cash
Level 1
 
 
 
 
 
 
 
 
 
 
 
 
 
Money market accounts
$

 
$

 
$

 
$
26,298

 
$
10,476

 
$

 
$
15,822

Level 2
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government treasury notes
323,212

 

 
(891
)
 
322,321

 
62,392

 
259,929

 

U.S. government agencies
73,362

 

 
(355
)
 
73,007

 
2,992

 
70,015

 

Corporate debt securities
377,468

 
31

 
(1,830
)
 
375,669

 

 
375,669

 

Foreign government bonds
6,657

 
1

 
(14
)
 
6,644

 

 
6,644

 

Asset-backed securities
24,804

 

 
(41
)
 
24,763

 

 
24,763

 

Total
$
805,503

 
$
32

 
$
(3,131
)
 
$
828,702

 
$
75,860

 
$
737,020

 
$
15,822


 
The amortized cost and estimated fair value of our marketable securities are shown below by contractual maturity (in thousands):
 
 
As of October 31, 2018
 
Amortized Cost
 
Fair Value
Due within one year
$
367,860

 
$
366,886

Due in one to five years
372,255

 
370,134

Total
$
740,115

 
$
737,020


 
The gross unrealized losses on our investments as of October 31, 2018 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 October 31, 2018, aggregated by investment category (in thousands):
 
 
Less than 12 months
 
Greater than 12 months
 
Total
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
U.S. government treasury notes
$
282,905

 
$
(535
)
 
$
39,416

 
$
(356
)
 
$
322,321

 
$
(891
)
U.S. government agencies
47,927

 
(143
)
 
25,080

 
(212
)
 
73,007

 
(355
)
Corporate debt securities
270,140

 
(1,080
)
 
72,743

 
(750
)
 
342,883

 
(1,830
)
Foreign government bonds
5,145

 
(14
)
 

 

 
5,145

 
(14
)
Asset-backed securities
24,763

 
(41
)
 

 

 
24,763

 
(41
)
Total
$
630,880

 
$
(1,813
)
 
$
137,239

 
$
(1,318
)
 
$
768,119

 
$
(3,131
)

 
Realized gains or losses on sale of marketable securities were not significant for all periods presented.
v3.10.0.1
Business Combination
9 Months Ended
Oct. 31, 2018
Business Combinations [Abstract]  
Business Combination
Business Combination

In August 2018, we completed the acquisition of StorReduce, Inc. (StorReduce), a privately-held, cloud-first software-defined storage solution for managing large-scale unstructured data. Acquisition-related costs were immaterial and were expensed as incurred.
The purchase consideration was $20.5 million in cash (net of cash acquired) after repayment of $6.1 million of debt assumed and payment of $1.1 million in transaction fees on behalf of StorReduce.
The purchase price was allocated as follows: $17.7 million in developed technology which will be amortized over seven years, $11.0 million of goodwill, $4.5 million in net liabilities assumed, and $3.7 million in deferred tax liabilities. 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 StorReduce's technology with our storage portfolio and is not expected to be deductible for tax purposes. We held back approximately $3.7 million in cash to satisfy potential indemnification claims through August 2019.
In addition, we granted 622,482 RSUs to former StorReduce employees with a total grant date fair value of $13.6 million, subject to continuous employment. These awards are recognized as stock-based compensation over the related vesting period.
The results of StorReduce are included in our consolidated statements of operations since the acquisition date, including revenues 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.
v3.10.0.1
Balance Sheet Components
9 Months Ended
Oct. 31, 2018
Balance Sheet Components Disclosure [Abstract]  
Balance Sheet Components
Balance Sheet Components
Inventory
Inventory consists of the following (in thousands):
 
As of
January 31, 2018
 
As of
October 31, 2018
Raw materials
$
1,181

 
$
4,880

Finished goods
33,316

 
45,857

Inventory
$
34,497

 
$
50,737


Property and Equipment, Net
Property and equipment, net, consists of the following (in thousands):
 
 
As of
January 31, 2018
 
As of
October 31, 2018
Test equipment
$
142,311

 
$
166,936

Computer equipment and software
72,329

 
103,366

Furniture and fixtures
5,363

 
5,619

Leasehold improvements
15,032

 
31,707

Total property and equipment
235,035

 
307,628

Less: accumulated depreciation and amortization
(145,893
)
 
(192,362
)
Property and equipment, net
$
89,142

 
$
115,266


 
Depreciation and amortization expense was $15.2 million and $16.9 million for the three months ended October 31, 2017 and 2018, and $44.4 million and $49.8 million for the nine months ended October 31, 2017 and 2018.
Intangible Assets, Net
Intangible assets, net consist of the following (in thousands):
 
 
As of
January 31, 2018
 
As of
October 31, 2018
 
Gross Carrying Value
 
Accumulated Amortization
 
Net Carrying Amount
 
Gross Carrying Value
 
Accumulated Amortization
 
Net Carrying Amount
Technology patents
$
10,125

 
$
(5,068
)
 
$
5,057

 
$
10,125

 
$
(6,196
)
 
$
3,929

Developed technology

 

 

 
17,700

 
(503
)
 
17,197

Intangible assets, net
$
10,125

 
$
(5,068
)
 
$
5,057

 
$
27,825

 
$
(6,699
)
 
$
21,126


 
Total intangible assets amortization expense was $0.4 million and $0.9 million for the three months ended October 31, 2017 and 2018, and $1.1 million and $1.6 million for the nine months ended October 31, 2017 and 2018. The weighted-average remaining amortization period is 2.6 years for technology patents and 6.8 years for developed technology. Amortization expense related to the technology patents is included in general and administrative expenses. Amortization of developed technology is included in cost of product revenue.
As of October 31, 2018, future expected amortization expense for intangible assets is as follows (in thousands):
 
Fiscal Years Ending January 31,
Estimated 
Future
Amortization
Expense
Remainder of 2019
$
1,008

2020
4,032

2021
4,032

2022
3,074

2023
2,529

Thereafter
6,451

Total
$
21,126


Goodwill
The change in the carrying amount of goodwill is as follows (in thousands):
 
Amount
Balance as of January 31, 2018
$

Goodwill acquired
10,997

Balance as of October 31, 2018
$
10,997


Accrued Expenses and Other Liabilities
Accrued expenses and other liabilities consist of the following (in thousands):
 
 
As of
January 31, 2018
 
As of
October 31, 2018
Taxes payable
$
4,052

 
$
6,907

Accrued marketing
5,928

 
8,561

Accrued travel and entertainment expenses
4,386

 
4,108

Acquisition consideration held back

 
3,725

Other accrued liabilities
12,463

 
20,332

Total accrued expenses and other liabilities
$
26,829

 
$
43,633

v3.10.0.1
Convertible Senior Notes
9 Months Ended
Oct. 31, 2018
Debt Disclosure [Abstract]  
Convertible Senior Notes
Convertible Senior Notes

In April 2018, we issued $575.0 million in principal amount of 0.125% convertible senior notes due 2023, in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act and received proceeds of $562.1 million, after deducting the underwriters’ discounts and commissions. The Notes are governed by an indenture (the Indenture) between us, as the issuer, and U.S. Bank National Association, as trustee. The Notes are our senior unsecured obligations. The Indenture does not contain any financial covenants or restrictions on the payments of dividends, the incurrence of indebtedness, or the issuance or repurchase of securities by us or any of our subsidiaries. The Notes mature on April 15, 2023 unless repurchased or redeemed by us or converted in accordance with their terms prior to the maturity date. Interest is payable semi-annually in arrears on April 15 and October 15 of each year, beginning on October 15, 2018.

The Notes are convertible for up to 21,884,155 shares of our common stock at an initial conversion rate of approximately 38.0594 shares of Class A common stock per $1,000 principal amount, which is equal to an initial conversion price of approximately $26.27 per share of Class A common stock, subject to adjustment. Holders of the Notes may surrender their Notes for conversion at their option at any time prior to the close of business on the business day immediately preceding October 15, 2022, only under the following circumstances:

during any fiscal quarter commencing after the fiscal quarter ended on July 31, 2018 (and only during such fiscal quarter), if the last reported sale price of our Class A common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price for the Notes on each applicable trading day;

during the five business day period after any five consecutive trading day period (the measurement period), in which the trading price per $1,000 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our Class A common stock and the conversion rate for the Notes on each such trading day;

if we call any or all of the Notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or

upon the occurrence of specified corporate events.

On or after October 15, 2022 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their Notes at any time regardless of the foregoing circumstances. Upon conversion, holders will receive cash, shares of our Class A common stock, or a combination of cash and shares of our Class A common stock, at our election. We intend to settle the principal of the Notes in cash.

The conversion price will be subject to adjustment in some events. Following certain corporate events that occur prior to the maturity date or following our issuance of a notice of redemption, we will increase the conversion rate for a holder who elects to convert its Notes in connection with such corporate event or during the related redemption period in certain circumstances. Additionally, upon the occurrence of a corporate event that constitutes a “fundamental change” per the Indenture, holders of the Notes may require us to repurchase for cash all or a portion of the Notes at a purchase price equal to 100% of the principal amount of the Notes plus accrued and unpaid contingent interest.

We may not redeem the Notes prior to April 20, 2021. We may redeem for cash all or any portion of the Notes, at our option, on or after April 20, 2021 if the last reported sale price of our Class A common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending not more than two trading days immediately preceding the date on which we provide notice of redemption at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the Notes.

In accounting for the issuance of the Notes, we separated the Notes into liability and equity components. The carrying amount of the liability component was determined by measuring the fair value of a similar liability that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was calculated by deducting the fair value of the liability component from the principal amount of the Notes as a whole. The difference between the principal amount of the Notes and the liability component (the debt discount) is amortized to interest expense in the condensed consolidated statements of operations using the effective interest method over the term of the Notes. The equity component of the Notes is included in additional paid-in capital in the condensed consolidated balance sheets and is not remeasured as long as it continues to meet the conditions for equity classification.

In accounting for the transaction costs related to the issuance of the Notes, we allocated the total amount incurred to the liability and equity components using the same proportions as the initial carrying value of the Notes. Transaction costs attributable to the liability component were netted with the principal amount of the Notes in the condensed consolidated balance sheets and are being amortized to interest expense in the condensed consolidated statements of operations using the effective interest method over the term of the Notes. Transaction costs attributable to the equity component were netted with the equity component of the Notes in additional paid-in capital in the condensed consolidated balance sheets. Upon the issuance of the Notes, we recorded total debt issuance costs of $12.9 million, of which approximately $9.8 million was allocated to the Notes and approximately $3.1 million was allocated to additional paid-in capital.

The Notes consisted of the following (in thousands):
 
As of
October 31, 2018
Liability:
 
Principal
$
575,000

Less: debt discount, net of amortization
(122,891
)
Less: debt issuance costs, net of amortization
(8,897
)
Net carrying amount of the Notes
$
443,212

 
 
Stockholders' equity:
 
Allocated value of the conversion feature
$
136,333

Less: debt issuance costs
(3,068
)
Additional paid-in capital
$
133,265



The total estimated fair value of the Notes as of October 31, 2018 was approximately $586.5 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 $20.18 on October 31, 2018, the if-converted value of the Notes of $441.6 million was less than its principal amount.     

The following table sets forth total interest expense recognized related to the Notes for the three and nine months ended October 31, 2018 (in thousands):
 
Three Months Ended October 31, 2018
 
Nine Months Ended October 31, 2018
Amortization of debt discount
$
6,084

 
$
13,441

Amortization of debt issuance costs
441

 
973

Total amortization of debt discount and debt issuance costs
6,525

 
14,414

Contractual interest expense
181

 
405

Total interest expense related to the Notes
$
6,706

 
$
14,819

 
 
 
 
Effective interest rate of the liability component
5.6
%
 
5.6
%


In connection with the offering of the Notes, we paid $64.6 million to enter into capped call transactions with certain of the underwriters and their affiliates (the Capped Calls), whereby we have the option to purchase a total of 21,884,155 shares of our Class A common stock upon any conversion of Notes and/or offset any cash payments we are required to make in excess of the principal amount of the Notes, as the case may be, with such reduction or offset subject to a cap initially equal to $39.66 per share (which represents a premium of 100% over the last reported sales price of our Class A common stock on April 4, 2018), subject to certain adjustments (the Cap Price). The cost of the Capped Calls was accounted for as a reduction to additional paid-in capital on the condensed consolidated balance sheet. The Capped Calls are intended to reduce or offset potential dilution of our common stock upon any conversion of the Notes, subject to a cap based on the Cap Price.

Impact on Earnings Per Share
The Notes will not impact our diluted earnings per share until the average market price of our Class A common stock exceeds the conversion price of $26.27 per share, as we intend to settle the principal amount of the Notes in cash upon conversion. We are required under the treasury stock method to compute the potentially dilutive shares of common stock related to the Notes for periods we report net income. However, upon conversion, there will be no economic dilution from the Notes until the average market price of our Class A common stock exceeds the Cap Price of $39.66 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.
v3.10.0.1
Commitments and Contingencies
9 Months Ended
Oct. 31, 2018
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Commitments and Contingencies

Operating Leases
 
As of January 31, 2018 and October 31, 2018, the aggregate future minimum payments under non-cancelable operating leases were approximately $113.0 million and $149.9 million.
Letters of Credit
In connection with a lease amendment executed in March 2018, we issued a letter of credit of $1.5 million. As of January 31, 2018 and October 31, 2018, we had outstanding letters of credit in the aggregate amount of $9.6 million and $10.8 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 October 31, 2018.
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.
v3.10.0.1
Stockholders' Equity
9 Months Ended
Oct. 31, 2018
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 October 31, 2018, 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 October 31, 2018, we had 2,000,000,000 shares of Class A common stock authorized with a par value of $0.0001 per share and 250,000,000 shares of Class B common stock authorized with a par value of $0.0001 per share. As of October 31, 2018216,252,136 shares of Class A common stock were issued and outstanding and 25,107,173 shares of Class B common stock were issued and outstanding. Subsequent to October 31, 2018, all outstanding Class B common stock converted to Class A common stock as discussed in Note 13.
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.
v3.10.0.1
Equity Incentive Plans
9 Months Ended
Oct. 31, 2018
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). In August 2015, our board of directors adopted, and in September 2015 our stockholders approved, the 2015 Plan, which became effective in connection with our initial public offering (IPO) and serves as the successor to the 2009 Plan. The 2015 Plan provides for grants of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance stock awards, performance cash awards, and other forms of stock awards to our employees, directors and consultants.
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
In August 2015, our board of directors adopted, and our stockholders approved, the 2015 Employee Stock Purchase Plan (2015 ESPP), which 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). The 2015 ESPP provides for 24 month offering periods 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 on (1) 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, 2017 that resulted in a total modification charge of $9.0 million, which is recognized over the new offering period ending March 15, 2019.
We recognized stock-based compensation expense related to our 2015 ESPP of $4.7 million and $11.6 million during the three months ended October 31, 2017 and 2018 and $12.6 million and $26.2 million during the nine months ended October 31, 2017 and 2018. As of October 31, 2018, there was $36.3 million of unrecognized stock-based compensation expense related to our 2015 ESPP, which is expected to be recognized over a weighted-average period of approximately 0.9 years.
Stock Options
A summary of stock option activity under our equity incentive plans and related information is as follows:
 
 
Options Outstanding
 
Number of
Shares
 
Weighted-
Average
Exercise Price
 
Weighted-
Average
Remaining
Contractual Life (In Years)
 
Aggregate
Intrinsic
Value (in thousands)
Balance as of January 31, 2018
46,359,949

 
$
7.75

 
6.3
 
$
574,224

Options exercised
(8,249,893
)
 
5.26

 
 
 
 

Options forfeited/canceled
(1,360,202
)
 
10.04

 
 
 
 

Balance as of October 31, 2018
36,749,854

 
$
8.22

 
5.6
 
$
439,185

Vested and exercisable as of October 31, 2018
26,221,996

 
$
6.38

 
5.2
 
$
361,783


 
 
The aggregate intrinsic value of options vested and exercisable as of October 31, 2018 is calculated based on the difference between the exercise price and the closing price of $20.18 of our Class A common stock on October 31, 2018.
As of October 31, 2018, total unrecognized employee compensation cost related to outstanding options was $40.2 million, which is expected to be recognized over a weighted-average period of approximately 1.9 years.

Restricted Stock Units
A summary of the restricted stock unit activity under our 2015 Plan and related information is as follows:
 
Number of Restricted Stock Units Outstanding
 
Weighted-
Average
Grant Date
Fair Value
 
Aggregate
Intrinsic
Value (in thousands)
Unvested balance as of January 31, 2018
17,682,646

 
$
12.60

 
$
356,117

Granted
11,098,371

 
22.49

 


Vested
(6,429,146
)
 
12.84

 


Forfeited
(1,719,729
)
 
15.57

 


Converted
(1,142,838
)
 
11.86

 
 
Unvested balance as of October 31, 2018
19,489,304

 
$
17.92

 
$
393,270



As of October 31, 2018, total unrecognized employee compensation cost related to unvested restricted stock units was $316.1 million, which is expected to be recognized over a weighted-average period of approximately 3.0 years.

In March 2017, we granted 750,000 performance stock units (net of 77,000 canceled units), at a target percentage of 100%, with both performance and service vesting conditions payable in common shares, from 0% to 150% of the target number granted, contingent upon the degree to which the performance condition is met. In March 2018, a total of 780,000 shares was earned based on the performance condition achieved and these shares are subject to service conditions through the vesting periods. Stock-based compensation expense for these performance stock units, recognized on an accelerated attribution method, was $1.3 million and $0.4 million for the three months ended October 31, 2017 and 2018, and $2.9 million and $1.9 million for the nine months ended October 31, 2017 and 2018.

In August 2017, we granted 464,744 performance stock units, at a target percentage of 100%, with both performance and service vesting conditions payable in common shares, from 0% to 150% of the target number granted, contingent upon the degree to which the performance condition is met. The grant date for these awards was subsequently established when the performance condition was determined in March 2018, and these awards were contemporaneously converted to restricted stock. See below for further discussion.

Restricted Stock

In March 2018, we converted certain restricted stock units and performance stock units that were previously granted into 1,375,210 shares of restricted stock for corporate tax benefit purposes. Of the 1,375,210 shares of restricted stock, 697,116 shares are performance restricted stock and 678,094 shares are subject to service vesting conditions only. The conversion did not change the fair value or vesting conditions and therefore no modification accounting was required.
During the nine months ended October 31, 2018, we issued 1,954,908 shares of performance restricted stock at the maximum performance percentage of 180%, with vesting contingent upon the degree to which the performance condition is met. The shares may be earned from 0% to 180%. Actual shares earned may be lower than the aggregate maximum number dependent on the degree to which the performance condition is met, and cannot be higher than the aggregate maximum number. Any portion of shares that are not earned will be canceled.
A summary of the restricted stock activity under our 2015 Plan and related information is as follows:
 
Number of Restricted Stock Units Outstanding
 
Weighted-
Average
Grant Date
Fair Value
 
Aggregate
Intrinsic
Value (in thousands)
Unvested balance as of January 31, 2018

 
$

 
$

Granted and converted
3,330,118

 
19.25

 
 
Vested
(116,186
)
 
12.84

 
 
Unvested balance as of October 31, 2018
3,213,932

 
$
19.49

 
$
64,857



All unvested restricted shares are subject to cancellation to the extent vesting conditions are not met. Stock-based compensation expense for performance restricted stock is recognized on an accelerated attribution method. In the three and nine months ended October 31, 2018, we recognized $7.5 million and $17.7 million in stock-based compensation expense relating to restricted stock. As of October 31, 2018, total unrecognized employee compensation cost related to unvested restricted stock was $26.3 million, which is expected to be recognized over a weighted-average period of approximately 2.4 years.
Stock-Based Compensation Expense
The following table summarizes the components of stock-based compensation expense recognized in the condensed consolidated statements of operations (in thousands):
 
 
Three Months Ended 
 October 31,
 
Nine Months Ended 
 October 31,
 
2017
 
2018
 
2017
 
2018
Cost of revenue—product
$
143

 
$
862

 
$
898

 
$
2,190

Cost of revenue—support subscription
2,422

 
3,327

 
6,441

 
8,940

Research and development
18,073

 
24,634

 
51,632

 
67,956

Sales and marketing
12,104

 
18,681

 
34,169

 
49,890

General and administrative
6,121

 
10,825

 
14,780

 
26,962

Total stock-based compensation expense
$
38,863

 
$
58,329

 
$
107,920

 
$
155,938



The tax benefit related to stock-based compensation expense for all periods presented was not material.
v3.10.0.1
Net Loss per Share Attributable to Common Stockholders
9 Months Ended
Oct. 31, 2018
Earnings Per Share [Abstract]  
Net Loss per Share Attributable to Common Stockholders
Net Loss per Share Attributable to Common Stockholders
Basic and diluted net loss per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities.
Basic net loss per share attributable to common stockholders is computed by dividing the net loss 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 early exercised stock options, common stock related to unvested restricted stock units and restricted stock awards, convertible senior notes to the extent dilutive, and common stock issuable pursuant to the ESPP. For purposes of calculating basic and diluted net loss per share attributable to common shareholders, 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 rights, including the liquidation and dividend rights, of the holders of our Class A and Class B common stock are identical, except with respect to voting. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis and the resulting net loss per share attributed to common stockholders will, therefore, be the same for both Class A and Class B common stock on an individual or combined basis. Subsequent to October 31, 2018, all outstanding Class B common stock converted to Class A common stock as discussed in Note 13.
The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except per share data):
 
 
Three Months Ended 
 October 31,
 
Nine Months Ended 
 October 31,
 
2017
 
2018
 
2017
 
2018
 
(As Adjusted*)
 
 
 
(As Adjusted*)
 
 
Net loss
$
(29,404
)
 
$
(28,180
)
 
$
(144,974
)
 
$
(152,607
)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted
213,274

 
235,205

 
209,456

 
229,505

Net loss per share attributable to common stockholders, basic and diluted
$
(0.14
)
 
$
(0.12
)
 
$
(0.69
)
 
$
(0.66
)


* Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018.

The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive (in thousands):
 
 
Three Months Ended 
 October 31,
 
Nine Months Ended 
 October 31,
 
2017
 
2018
 
2017
 
2018
Stock options to purchase common stock
51,685

 
37,814

 
53,786

 
41,201

Restricted stock units
17,201

 
19,493

 
14,913

 
19,488

Restricted stock and early exercised stock options
196

 
3,277

 
287

 
2,938

Employee stock purchase plan
585

 
236

 
585

 
80

Total
69,667

 
60,820

 
69,571

 
63,707

v3.10.0.1
Income Taxes
9 Months Ended
Oct. 31, 2018
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
Our income tax provision (benefit) was primarily due to taxes on international operations and state income taxes. The difference between the income tax provision (benefit) that would be derived by applying the statutory rate to our loss before income taxes and the income tax provision (benefit) 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 StorReduce acquisition, we recorded a net deferred tax liability which provides an additional source of taxable income to support the realizability of the pre-existing deferred tax assets and, accordingly, during the three months ended October 31, 2018, we released $3.7 million of our U.S. valuation allowance. We continue to maintain a valuation allowance for our U.S. Federal and state deferred tax assets.
As of October 31, 2018, 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, 2018.
The Tax Act was signed into law on December 22, 2017. The new legislation decreases the U.S. corporate federal income tax rate from 35% to 21% effective January 1, 2018.
The Tax Act also includes a number of other provisions including the elimination of loss carrybacks and limitations on the use of future losses, limitations on the deductibility of executive compensation, limitation or modification on the deductibility of certain business expenses, the transition of U.S. international taxation from a worldwide tax system to a territorial system, and the introduction of a base erosion and anti-abuse tax. Under the Tax Act, the Global Intangible Low-Taxed Income (GILTI) provision taxes foreign income in excess of a deemed return on tangible assets of foreign corporations. Under U.S. GAAP, companies are allowed to make an accounting policy election to either (i) account for GILTI as a component of tax expense in the period in which a company is subject to the rules -- the period cost method, or (ii) account for GILTI in a company’s measurement of deferred taxes -- the deferred method. Because of the complexity of the new tax rules, we have not yet made an accounting policy election and are continuing to assess the impact of the Tax Act during the one-year measurement period from the Tax Act enactment date as allowed by Staff Accounting Bulletin No. 118 (SAB 118) issued in connection with the Tax Act. We expect to complete the accounting for the tax effects of the Tax Act in calendar year 2018.
v3.10.0.1
Segment Information
9 Months Ended
Oct. 31, 2018
Segment Reporting [Abstract]  
Segment Information
Segment Information
Our chief operating decision maker is a group comprised of our Chief Executive Officer, our Chief Financial Officer, and our President. This group reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. We have one business activity and there are no segment managers who are held accountable for operations or operating results. Accordingly, we have a single reportable segment.
Disaggregation of Revenue
The following table depicts the disaggregation of revenue by geographic area based on the billing address of our customers and is consistent with how we evaluate our financial performance (in thousands):
 
 
Three Months Ended 
 October 31,
 
Nine Months Ended 
 October 31,
 
2017
 
2018
 
2017
 
2018
 
(As Adjusted*)
 
 
 
(As Adjusted*)
 
 
United States
$
192,919

 
$
263,488

 
$
505,045

 
$
678,166

Rest of the world
84,672

 
109,291

 
179,861

 
259,442

Total revenue
$
277,591

 
$
372,779

 
$
684,906

 
$
937,608


* Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018.

Long-Lived Assets by Geographic Area
Long-lived assets by geographic area are summarized as follows (in thousands):
 
 
As of
January 31, 2018
 
As of
October 31, 2018
United States
$
85,430

 
$
110,850

Rest of the world
3,712

 
4,416

Total long-lived assets
$
89,142

 
$
115,266

v3.10.0.1
Subsequent Event
9 Months Ended
Oct. 31, 2018
Subsequent Events [Abstract]  
Subsequent Event
Subsequent Events

Housing Trust Silicon Valley Note
In November 2018, we purchased a $5.0 million 1.5% senior note issued by Housing Trust Silicon Valley, a nonprofit community development financial institution, to support affordable homes in the San Francisco Bay Area. This note matures on October 31, 2023. Interest is payable semi-annually on April 30 and October 31 of each year.

Conversion of Class B Common Stock to Class A Common Stock
On December 4, 2018, all outstanding shares of our Class B common stock automatically converted into the same number of shares of our Class A common stock pursuant to the terms of our amended and restated certificate of incorporation, which provided that each share of our Class B common stock convert automatically into Class A common stock when the outstanding shares of Class B common stock represent less than 10% of the aggregate number of shares of the then outstanding Class A common stock and Class B common stock. No additional Class B shares may be issued following the conversion. The conversion does not impact our basic or diluted net loss per share attributable to common stockholders or our financial performance.
v3.10.0.1
Basis of Presentation and Summary of Significant Accounting Policies (Policies)
9 Months Ended
Oct. 31, 2018
Accounting Policies [Abstract]  
Principles of Consolidation
Principles of Consolidation
The condensed consolidated financial statements include the accounts of the Company and our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Unaudited Interim Consolidated Financial Information
Unaudited Interim Consolidated Financial Information
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) and applicable rules and regulations of the Securities and Exchange Commission (the SEC) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended January 31, 2018.
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 2019 or any future period. Certain prior period amounts have been adjusted as a result of adoption of new accounting pronouncements. Refer to "Recently Adopted Accounting Pronouncements" below for further information.
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 and deferred sales commissions, stock-based compensation, provision for income taxes including related reserves, valuation of intangible assets and goodwill, 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
Restricted cash is comprised of cash collateral related to our leases and for a vendor corporate credit card program.
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 loss, which is reflected as a component of stockholders’ equity. We evaluate our securities to assess whether those with unrealized loss positions are other than temporarily impaired. We consider impairments to be other than temporary if they are related to deterioration in credit risk or if it is likely we will sell the securities before the recovery of their cost basis. Realized gains and losses from the sale of marketable securities and declines in value deemed to be other than temporary are determined on the specific identification method. To date, there have been no declines in value deemed to be other than temporary in any of our securities. Realized gains and losses are reported in other income (expense), net in the condensed consolidated statements of operations.
Business Combination
Business Combination
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. The results of operations of the acquired businesses are included in our condensed consolidated financial statements from the date of acquisition.  Acquisition-related expenses are expensed as incurred. 
Deferred Commissions
Deferred Commissions
Deferred commissions consist of incremental costs paid to our sales force to obtain customer contracts. Deferred commissions related to product revenues 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.
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.
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. Revenue related to support subscription is recognized ratably over the contractual term, which generally ranges from one to six years and represents our performance obligations period. The vast majority of our products are sold with support subscription agreements, which typically commence upon transfer of control of the corresponding products to our customers. Costs to service the support subscription are expensed as incurred. In addition, our Evergreen Storage program provides our customers who continually maintain active support subscription agreements for three years with an included controller refresh with each additional three year support subscription renewal. In accordance with revenue recognition guidance, the controller refresh represents an additional performance obligation and the allocated revenue is recognized in the period in which these controllers are shipped.
We recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration we expect to be entitled in exchange for those goods or services. This is achieved through applying the following five-step approach:
Identification of the contract, or contracts, with a customer
Identification of the performance obligations in the contract
Determination of the transaction price
Allocation of the transaction price to the performance obligations in the contract
Recognition of revenue when, or as, we satisfy a performance obligation
When applying this five-step approach, we apply judgment in determining the customer's ability and intention to pay, which is based on a variety of factors including the customer's historical payment experience and/or published credit and financial information pertaining to the customer. To the extent a customer contract includes multiple promised goods or services, we determine whether promised goods or services are capable of being distinct in the context of the contract to be accounted for as a combined performance obligation. We allocate transaction price to each performance obligation for contracts that contain multiple performance obligations based on a relative standalone selling price, taking into account available information such as market conditions and internally approved pricing guidelines related to performance obligations.
Deferred Revenue
Deferred revenue primarily consists of amounts that have been invoiced but that have not yet been recognized as revenue and performance obligations pertaining to support subscription services. The current portion of deferred revenue represents the amounts that are expected to be recognized as revenue within one year of the condensed consolidated balance sheet dates.
Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements Not Yet Adopted
Recently Adopted Accounting Pronouncements
In May 2014, the Financial Accounting Standards Board (FASB), issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09 or ASC 606), requiring an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASC 606 supersedes nearly all existing revenue recognition guidance under U.S. GAAP upon its effective date. The standard permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of applying the standard recognized at the date of application (cumulative catch-up transition method).
We adopted the standard using the full retrospective method beginning February 1, 2018, for the year ending January 31, 2019, and our historical financial information for the years ended January 31, 2017 and 2018 has been adjusted to conform to the new standard.
The most significant impact of the standard related to the removal of limitation on contingent revenue, resulting in an increase in product revenue and a decrease in support subscription revenue. In addition, the adoption of ASC 606 also resulted in differences in the timing of recognition of sales commissions. While the adoption of the standard changes certain line items within the net cash flow from operating activities, it had no impact on the net cash provided by or used in operating, investing, or financing activities on our condensed consolidated statements of cash flows.
The following line items on our condensed consolidated balance sheet as of January 31, 2018 have been adjusted to reflect the adoption of ASC 606 (in thousands):
 
As of January 31, 2018
 
As Previously Reported
 
Adjustment
 
As Adjusted
Assets:
 
 
 
 
 
Deferred commissions, current
$
22,437

 
$
(1,349
)
 
$
21,088

Deferred commissions, non-current
20,288

 
45,937

 
66,225

Total deferred commissions
$
42,725

 
$
44,588

 
$
87,313

Liabilities:
 
 
 
 
 
Deferred revenue, current
$
209,377

 
$
(18,148
)
 
$
191,229

Deferred revenue, non-current
196,632

 
(13,759
)
 
182,873

Total deferred revenue
$
406,009

 
$
(31,907
)
 
$
374,102

Stockholders' equity:
 
 
 
 
 
Accumulated deficit
$
(980,082
)
 
$
76,495

 
$
(903,587
)

The following line items on our unaudited condensed consolidated statement of operations for the three and nine months ended October 31, 2017 have been adjusted to reflect the adoption of ASC 606 (in thousands, except per share data):
 
Three Months Ended October 31, 2017
 
Nine Months Ended October 31, 2017
 
As Previously Reported
 
Adjustment
 
As Adjusted
 
As Previously Reported
 
Adjustment
 
As Adjusted
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Product
$
223,196

 
$
4,576

 
$
227,772

 
$
536,634

 
$
13,657

 
$
550,291

Support subscription
54,478

 
(4,659
)
 
49,819

 
148,132

 
(13,517
)
 
134,615

Total revenue
$
277,674

 
$
(83
)
 
$
277,591

 
$
684,766

 
$
140

 
$
684,906

 
 
 
 
 
 
 
 
 
 
 
 
Gross profit
$
181,815

 
$
(83
)
 
$
181,732

 
$
448,908

 
$
140

 
$
449,048

Sales and marketing
$
129,299

 
$
(12,328
)
 
$
116,971

 
$
346,896

 
$
(20,610
)
 
$
326,286

Total operating expenses
$
223,632

 
$
(12,328
)
 
$
211,304

 
$
618,276

 
$
(20,610
)
 
$
597,666

Loss from operations
$
(41,817
)
 
$
12,245

 
$
(29,572
)
 
$
(169,368
)
 
$
20,750

 
$
(148,618
)
Loss before provision for income taxes
$
(40,679
)
 
$
12,245

 
$
(28,434
)
 
$
(162,969
)
 
$
20,750

 
$
(142,219
)
Net loss
$
(41,649
)
 
$
12,245

 
$
(29,404
)
 
$
(165,724
)
 
$
20,750

 
$
(144,974
)
Net loss per share attributable to common stockholders, basic and diluted
$
(0.20
)
 
$
0.06

 
$
(0.14
)
 
$
(0.79
)
 
$
0.10

 
$
(0.69
)

Unaudited revenue by geographic location based on bill-to location, which reflects the adoption impact of ASC 606, are as follows (in thousands):
 
Three Months Ended October 31, 2017
 
Nine Months Ended October 31, 2017
 
As Previously Reported
 
Adjustment
 
As Adjusted
 
As Previously Reported
 
Adjustment
 
As Adjusted
Revenue:
 
 
 
 
 
 
 
 
 
 
 
United States
$
192,977

 
$
(58
)
 
$
192,919

 
$
504,937

 
$
108

 
$
505,045

Rest of the world
84,697

 
(25
)
 
84,672

 
179,829

 
32

 
179,861

Total revenue
$
277,674

 
$
(83
)
 
$
277,591

 
$
684,766

 
$
140

 
$
684,906



In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016-18), which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and restricted cash. We adopted ASU 2016-18 effective February 1, 2018 on a retrospective basis. Upon adoption, restricted cash is included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The adoption of this standard increased our previously reported net cash flow from investing activities for the periods in which there were changes in restricted cash but did not impact our net cash flow from operating activities or financing activities presented on our consolidated statements of cash flows.
The following line items in our unaudited condensed consolidated statement of cash flows for the nine months ended October 31, 2017 have been adjusted to reflect the adoption of ASU 2016-18 and ASC 606 (in thousands):
 
Nine Months Ended October 31, 2017
 
As Previously Reported
 
Adjustment
 
As Adjusted
Net loss (1)
$
(165,724
)
 
$
20,750

 
$
(144,974
)
Adjustments to reconcile net loss to net cash provided by operating activities:
 
 
 
 
 
Deferred commissions (1)
$
(7,629
)
 
$
(6,340
)
 
$
(13,969
)
Accrued compensation and other liabilities (1)
$
14,629

 
$
(14,270
)
 
$
359

Deferred revenue (1)
$
54,404

 
$
(140
)
 
$
54,264

Cash provided by operating activities
$
13,756

 
$

 
$
13,756

Net increase in restricted cash (2)
$
(2,029
)
 
$
2,029

 
$

Net cash used in investing activities (2)
$
(53,290
)
 
$
2,029

 
$
(51,261
)
Net increase (decrease) in cash, cash equivalents and restricted cash (2)
$
(1,636
)
 
$
2,029

 
$
393

Cash, cash equivalents and restricted cash, beginning of period (2)
$
183,675

 
$
12,734

 
$
196,409

Cash, cash equivalents and restricted cash, end of period (2)
$
182,039

 
$
14,763

 
$
196,802

_____________________________________________________
(1) Adjustment pertaining to the adoption of ASC 606.
(2) Adjustment pertaining to the adoption of ASU 2016-18.
In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718) (ASU 2018-07). ASU 2018-07 aligns the accounting for share-based awards to employees and non-employees to follow the same model. The new standard is effective for fiscal years beginning after December 15, 2018 using a modified retrospective transition approach. Early adoption is permitted. We adopted this standard for the three and nine months ended October 31, 2018 and the adoption of this standard did not materially impact our consolidated financial statements.
Recent Accounting Pronouncements Not Yet Adopted
In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (ASU 2016-02). ASU 2016-02 requires lessees to recognize all leases with terms in excess of one year on their balance sheet as a right-of-use asset and a lease liability at the commencement date. The new standard also simplifies the accounting for sale and leaseback transactions. ASU 2016-02 requires the use of the modified retrospective method for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. In July 2018, the FASB issued ASU No. 2018-10, Leases (Topic 842), Codification Improvements to Topic 842, Leases (ASU 2018-10) and ASU No. 2018-11, Leases (Topic 842), Targeted Improvements (ASU 2018-11). ASU 2018-11 provides a new transition method in which an entity can initially apply the new lease standards at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. These standards will be effective for us beginning on February 1, 2019 and early adoption is permitted. We expect to apply the new transition method prescribed by ASU 2018-11 at the adoption date. We are currently evaluating the impact of these standards on our consolidated financial statements and expect that most of our operating lease commitments will be subject to the new standard and recognized as lease liabilities and right-of-use assets, which will increase our total assets and total liabilities upon adoption.
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 consolidated financial statements.
In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350)Simplifying the Test for Goodwill Impairment, which eliminates Step 2 from the goodwill impairment test. This standard is effective, on a prospective basis, for our goodwill impairment tests beginning February 1, 2020. Early adoption is permitted. We are evaluating the impact of this standard on our consolidated financial statements.
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 (the Tax Act) and requires certain disclosures about stranded tax effects. This standard will be effective for us beginning February 1, 2019 and should be applied either in the period of adoption or retrospectively. Early adoption is permitted. We do not expect this standard to have any impact on our 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 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 should be applied either retrospectively or prospectively. Early adoption is permitted. We are currently evaluating the impact of this standard on our consolidated financial statements.
In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders' equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders' equity presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. This final rule was effective on November 5, 2018. We are evaluating the impact of this guidance on our condensed consolidated financial statements and expect to adopt this guidance in the first quarter of fiscal 2020.
Fair Value Measurements
Fair Value Measurements
We measure our cash equivalents, marketable securities, and restricted cash at fair value on a recurring basis. We define fair value as the exchange price that would be received from sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We measure our financial assets and liabilities at fair value at each reporting period using a fair value hierarchy which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value:

Level 1 - Observable inputs are unadjusted quoted prices in active markets for identical assets or liabilities;

Level 2 - Observable inputs are quoted prices for similar assets and liabilities in active markets or inputs other than quoted prices that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments; and

Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. These inputs are based on our own assumptions used to measure assets and liabilities at fair value and require significant management judgment or estimation.
We classify our cash equivalents, marketable securities and restricted cash within Level 1 or Level 2 because they are valued using either quoted market prices or inputs other than quoted prices which are directly or indirectly observable in the market, including readily-available pricing sources for the identical underlying security which may not be actively traded. Our fixed income available-for-sale securities consist of high quality, investment grade securities from diverse issuers. The valuation techniques used to measure the fair value of our marketable securities were derived from non-binding market consensus prices that are corroborated by observable market data or quoted market prices for similar instruments.
In addition to our cash equivalents, marketable securities, and restricted cash, we measure the fair value of our convertible senior notes (the Notes) on a quarterly basis for disclosure purposes. We consider the fair value of the Notes at October 31, 2018 to be a Level 2 measurement due to limited trading activity of the Notes. Refer to Note 6 for further information.
v3.10.0.1
Basis of Presentation and Summary of Significant Accounting Policies (Tables)
9 Months Ended
Oct. 31, 2018
Accounting Policies [Abstract]  
Deferred Commissions
Changes in total deferred commissions during the periods presented are as follows (in thousands):
 
Three Months Ended October 31, 2018
 
Nine Months Ended October 31, 2018
Beginning balance (1)
$
91,469

 
$
87,313

Additions
31,884

 
71,887

Recognition of deferred commissions
(26,913
)
 
(62,760
)
Ending balance as of October 31, 2018
$
96,440

 
$
96,440


____________________ 
(1) Balance as of January 31, 2018 was adjusted to reflect the adoption of ASC 606.
Deferred Revenue
Changes in total deferred revenue during the periods presented are as follows (in thousands):
 
Three Months Ended October 31, 2018
 
Nine Months Ended October 31, 2018
Beginning balance (1)
$
413,247

 
$
374,102

Additions
122,681

 
290,463

Recognition of deferred revenue
(74,740
)
 
(203,377
)
Ending balance as of October 31, 2018
$
461,188

 
$
461,188

____________________ 
(1) Balance as of January 31, 2018 was adjusted to reflect the adoption of ASC 606.
Schedule of Recently Adopted Accounting Pronouncements
The following line items on our condensed consolidated balance sheet as of January 31, 2018 have been adjusted to reflect the adoption of ASC 606 (in thousands):
 
As of January 31, 2018
 
As Previously Reported
 
Adjustment
 
As Adjusted
Assets:
 
 
 
 
 
Deferred commissions, current
$
22,437

 
$
(1,349
)
 
$
21,088

Deferred commissions, non-current
20,288

 
45,937

 
66,225

Total deferred commissions
$
42,725

 
$
44,588

 
$
87,313

Liabilities:
 
 
 
 
 
Deferred revenue, current
$
209,377

 
$
(18,148
)
 
$
191,229

Deferred revenue, non-current
196,632

 
(13,759
)
 
182,873

Total deferred revenue
$
406,009

 
$
(31,907
)
 
$
374,102

Stockholders' equity:
 
 
 
 
 
Accumulated deficit
$
(980,082
)
 
$
76,495

 
$
(903,587
)

The following line items on our unaudited condensed consolidated statement of operations for the three and nine months ended October 31, 2017 have been adjusted to reflect the adoption of ASC 606 (in thousands, except per share data):
 
Three Months Ended October 31, 2017
 
Nine Months Ended October 31, 2017
 
As Previously Reported
 
Adjustment
 
As Adjusted
 
As Previously Reported
 
Adjustment
 
As Adjusted
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Product
$
223,196

 
$
4,576

 
$
227,772

 
$
536,634

 
$
13,657

 
$
550,291

Support subscription
54,478

 
(4,659
)
 
49,819

 
148,132

 
(13,517
)
 
134,615

Total revenue
$
277,674

 
$
(83
)
 
$
277,591

 
$
684,766

 
$
140

 
$
684,906

 
 
 
 
 
 
 
 
 
 
 
 
Gross profit
$
181,815

 
$
(83
)
 
$
181,732

 
$
448,908

 
$
140

 
$
449,048

Sales and marketing
$
129,299

 
$
(12,328
)
 
$
116,971

 
$
346,896

 
$
(20,610
)
 
$
326,286

Total operating expenses
$
223,632

 
$
(12,328
)
 
$
211,304

 
$
618,276

 
$
(20,610
)
 
$
597,666

Loss from operations
$
(41,817
)
 
$
12,245

 
$
(29,572
)
 
$
(169,368
)
 
$
20,750

 
$
(148,618
)
Loss before provision for income taxes
$
(40,679
)
 
$
12,245

 
$
(28,434
)
 
$
(162,969
)
 
$
20,750

 
$
(142,219
)
Net loss
$
(41,649
)
 
$
12,245

 
$
(29,404
)
 
$
(165,724
)
 
$
20,750

 
$
(144,974
)
Net loss per share attributable to common stockholders, basic and diluted
$
(0.20
)
 
$
0.06

 
$
(0.14
)
 
$
(0.79
)
 
$
0.10

 
$
(0.69
)

Unaudited revenue by geographic location based on bill-to location, which reflects the adoption impact of ASC 606, are as follows (in thousands):
 
Three Months Ended October 31, 2017
 
Nine Months Ended October 31, 2017
 
As Previously Reported
 
Adjustment
 
As Adjusted
 
As Previously Reported
 
Adjustment
 
As Adjusted
Revenue:
 
 
 
 
 
 
 
 
 
 
 
United States
$
192,977

 
$
(58
)
 
$
192,919

 
$
504,937

 
$
108

 
$
505,045

Rest of the world
84,697

 
(25
)
 
84,672

 
179,829

 
32

 
179,861

Total revenue
$
277,674

 
$
(83
)
 
$
277,591

 
$
684,766

 
$
140

 
$
684,906

The following line items in our unaudited condensed consolidated statement of cash flows for the nine months ended October 31, 2017 have been adjusted to reflect the adoption of ASU 2016-18 and ASC 606 (in thousands):
 
Nine Months Ended October 31, 2017
 
As Previously Reported
 
Adjustment
 
As Adjusted
Net loss (1)
$
(165,724
)
 
$
20,750

 
$
(144,974
)
Adjustments to reconcile net loss to net cash provided by operating activities:
 
 
 
 
 
Deferred commissions (1)
$
(7,629
)
 
$
(6,340
)
 
$
(13,969
)
Accrued compensation and other liabilities (1)
$
14,629

 
$
(14,270
)
 
$
359

Deferred revenue (1)
$
54,404

 
$
(140
)
 
$
54,264

Cash provided by operating activities
$
13,756

 
$

 
$
13,756

Net increase in restricted cash (2)
$
(2,029
)
 
$
2,029

 
$

Net cash used in investing activities (2)
$
(53,290
)
 
$
2,029

 
$
(51,261
)
Net increase (decrease) in cash, cash equivalents and restricted cash (2)
$
(1,636
)
 
$
2,029

 
$
393

Cash, cash equivalents and restricted cash, beginning of period (2)
$
183,675

 
$
12,734

 
$
196,409

Cash, cash equivalents and restricted cash, end of period (2)
$
182,039

 
$
14,763

 
$
196,802

_____________________________________________________
(1) Adjustment pertaining to the adoption of ASC 606.
(2) Adjustment pertaining to the adoption of ASU 2016-18.
v3.10.0.1
Financial Instruments (Tables)
9 Months Ended
Oct. 31, 2018
Investments, Debt and Equity Securities [Abstract]  
Summary of Cash Equivalents, Marketable Securities and Restricted Cash by Significant Investment Categories
The following tables summarize our cash equivalents, marketable securities and restricted cash by significant investment categories as of January 31, 2018 and October 31, 2018 (in thousands):
 
 
As of January 31, 2018
 
Amortized
Cost
 
Gross Unrealized
Gains
 
Gross Unrealized
Losses
 
Fair
Value
 
Cash Equivalents
 
Marketable Securities
 
Restricted Cash
Level 1
 

 
 

 
 

 
 

 
 

 
 
 
 

Money market accounts
$

 
$

 
$

 
$
32,057

 
$
17,294

 
$

 
$
14,763

Level 2
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government treasury notes
131,643

 

 
(651
)
 
130,992

 
10,172

 
120,820

 

U.S. government agencies
47,229

 

 
(333
)
 
46,896

 

 
46,896

 

Corporate debt securities
186,506

 
116

 
(1,049
)
 
185,573

 

 
185,573

 

Total
$
365,378

 
$
116

 
$
(2,033
)
 
$
395,518

 
$
27,466

 
$
353,289

 
$
14,763


 
As of October 31, 2018
 
Amortized
Cost
 
Gross Unrealized
Gains
 
Gross Unrealized
Losses
 
Fair
Value
 
Cash Equivalents
 
Marketable
Securities
 
Restricted Cash
Level 1
 
 
 
 
 
 
 
 
 
 
 
 
 
Money market accounts
$

 
$

 
$

 
$
26,298

 
$
10,476

 
$

 
$
15,822

Level 2
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government treasury notes
323,212

 

 
(891
)
 
322,321

 
62,392

 
259,929

 

U.S. government agencies
73,362

 

 
(355
)
 
73,007

 
2,992

 
70,015

 

Corporate debt securities
377,468

 
31

 
(1,830
)
 
375,669

 

 
375,669

 

Foreign government bonds
6,657

 
1

 
(14
)
 
6,644

 

 
6,644

 

Asset-backed securities
24,804

 

 
(41
)
 
24,763

 

 
24,763

 

Total
$
805,503

 
$
32

 
$
(3,131
)
 
$
828,702

 
$
75,860

 
$
737,020

 
$
15,822

Schedule of Amortized Cost and Estimated Fair Value of Marketable Securities by Contractual Maturity
The amortized cost and estimated fair value of our marketable securities are shown below by contractual maturity (in thousands):
 
 
As of October 31, 2018
 
Amortized Cost
 
Fair Value
Due within one year
$
367,860

 
$
366,886

Due in one to five years
372,255

 
370,134

Total
$
740,115

 
$
737,020

Schedule of Gross Unrealized Losses and Fair Values for Investments that were in Continuous Unrealized Loss Position for Less Than 12 Months, Aggregated by Investments Category
The following table presents gross unrealized losses and fair values for those investments that were in a continuous unrealized loss position as of October 31, 2018, aggregated by investment category (in thousands):
 
 
Less than 12 months
 
Greater than 12 months
 
Total
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
U.S. government treasury notes
$
282,905

 
$
(535
)
 
$
39,416

 
$
(356
)
 
$
322,321

 
$
(891
)
U.S. government agencies
47,927

 
(143
)
 
25,080

 
(212
)
 
73,007

 
(355
)
Corporate debt securities
270,140

 
(1,080
)
 
72,743

 
(750
)
 
342,883

 
(1,830
)
Foreign government bonds
5,145

 
(14
)
 

 

 
5,145

 
(14
)
Asset-backed securities
24,763

 
(41
)
 

 

 
24,763

 
(41
)
Total
$
630,880

 
$
(1,813
)
 
$
137,239

 
$
(1,318
)
 
$
768,119

 
$
(3,131
)
v3.10.0.1
Balance Sheet Components (Tables)
9 Months Ended
Oct. 31, 2018
Balance Sheet Components Disclosure [Abstract]  
Schedule of Inventory
Inventory consists of the following (in thousands):
 
As of
January 31, 2018
 
As of
October 31, 2018
Raw materials
$
1,181

 
$
4,880

Finished goods
33,316

 
45,857

Inventory
$
34,497

 
$
50,737

Schedule of Property and Equipment, Net
Property and equipment, net, consists of the following (in thousands):
 
 
As of
January 31, 2018
 
As of
October 31, 2018
Test equipment
$
142,311

 
$
166,936

Computer equipment and software
72,329

 
103,366

Furniture and fixtures
5,363

 
5,619

Leasehold improvements
15,032

 
31,707

Total property and equipment
235,035

 
307,628

Less: accumulated depreciation and amortization
(145,893
)
 
(192,362
)
Property and equipment, net
$
89,142

 
$
115,266

Schedule of Intangible Assets, Net
Intangible assets, net consist of the following (in thousands):
 
 
As of
January 31, 2018
 
As of
October 31, 2018
 
Gross Carrying Value
 
Accumulated Amortization
 
Net Carrying Amount
 
Gross Carrying Value
 
Accumulated Amortization
 
Net Carrying Amount
Technology patents
$
10,125

 
$
(5,068
)
 
$
5,057

 
$
10,125

 
$
(6,196
)
 
$
3,929

Developed technology

 

 

 
17,700

 
(503
)
 
17,197

Intangible assets, net
$
10,125

 
$
(5,068
)
 
$
5,057

 
$
27,825

 
$
(6,699
)
 
$
21,126

Schedule of Expected Amortization Expenses for Intangible Assets
As of October 31, 2018, future expected amortization expense for intangible assets is as follows (in thousands):
 
Fiscal Years Ending January 31,
Estimated 
Future
Amortization
Expense
Remainder of 2019
$
1,008

2020
4,032

2021
4,032

2022
3,074

2023
2,529

Thereafter
6,451

Total
$
21,126

Schedule of Goodwill
The change in the carrying amount of goodwill is as follows (in thousands):
 
Amount
Balance as of January 31, 2018
$

Goodwill acquired
10,997

Balance as of October 31, 2018
$
10,997

Schedule of Accrued Expenses and Other Liabilities
Accrued expenses and other liabilities consist of the following (in thousands):
 
 
As of
January 31, 2018
 
As of
October 31, 2018
Taxes payable
$
4,052

 
$
6,907

Accrued marketing
5,928

 
8,561

Accrued travel and entertainment expenses
4,386

 
4,108

Acquisition consideration held back

 
3,725

Other accrued liabilities
12,463

 
20,332

Total accrued expenses and other liabilities
$
26,829

 
$
43,633

v3.10.0.1
Convertible Senior Notes (Tables)
9 Months Ended
Oct. 31, 2018
Debt Disclosure [Abstract]  
Convertible Debt
The Notes consisted of the following (in thousands):
 
As of
October 31, 2018
Liability:
 
Principal
$
575,000

Less: debt discount, net of amortization
(122,891
)
Less: debt issuance costs, net of amortization
(8,897
)
Net carrying amount of the Notes
$
443,212

 
 
Stockholders' equity:
 
Allocated value of the conversion feature
$
136,333

Less: debt issuance costs
(3,068
)
Additional paid-in capital
$
133,265

Interest Expense
The following table sets forth total interest expense recognized related to the Notes for the three and nine months ended October 31, 2018 (in thousands):
 
Three Months Ended October 31, 2018
 
Nine Months Ended October 31, 2018
Amortization of debt discount
$
6,084

 
$
13,441

Amortization of debt issuance costs
441

 
973

Total amortization of debt discount and debt issuance costs
6,525

 
14,414

Contractual interest expense
181

 
405

Total interest expense related to the Notes
$
6,706

 
$
14,819

 
 
 
 
Effective interest rate of the liability component
5.6
%
 
5.6
%
v3.10.0.1
Equity Incentive Plans (Tables)
9 Months Ended
Oct. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Summary of Stock Option Activity Under Equity Incentive Plans and Related Information
A summary of stock option activity under our equity incentive plans and related information is as follows:
 
 
Options Outstanding
 
Number of
Shares
 
Weighted-
Average
Exercise Price
 
Weighted-
Average
Remaining
Contractual Life (In Years)
 
Aggregate
Intrinsic
Value (in thousands)
Balance as of January 31, 2018
46,359,949

 
$
7.75

 
6.3
 
$
574,224

Options exercised
(8,249,893
)
 
5.26

 
 
 
 

Options forfeited/canceled
(1,360,202
)
 
10.04

 
 
 
 

Balance as of October 31, 2018
36,749,854

 
$
8.22

 
5.6
 
$
439,185

Vested and exercisable as of October 31, 2018
26,221,996

 
$
6.38

 
5.2
 
$
361,783

Summary of Restricted Stock Unit Activity Under 2015 Plan
A summary of the restricted stock unit activity under our 2015 Plan and related information is as follows:
 
Number of Restricted Stock Units Outstanding
 
Weighted-
Average
Grant Date
Fair Value
 
Aggregate
Intrinsic
Value (in thousands)
Unvested balance as of January 31, 2018
17,682,646

 
$
12.60

 
$
356,117

Granted
11,098,371

 
22.49

 


Vested
(6,429,146
)
 
12.84

 


Forfeited
(1,719,729
)
 
15.57

 


Converted
(1,142,838
)
 
11.86

 
 
Unvested balance as of October 31, 2018
19,489,304

 
$
17.92

 
$
393,270

Summary of Restricted Stock Activity Under 2015 Plan
A summary of the restricted stock activity under our 2015 Plan and related information is as follows:
 
Number of Restricted Stock Units Outstanding
 
Weighted-
Average
Grant Date
Fair Value
 
Aggregate
Intrinsic
Value (in thousands)
Unvested balance as of January 31, 2018

 
$

 
$

Granted and converted
3,330,118

 
19.25

 
 
Vested
(116,186
)
 
12.84

 
 
Unvested balance as of October 31, 2018
3,213,932

 
$
19.49

 
$
64,857

Summarizes the Components of Stock-Based Compensation
The following table summarizes the components of stock-based compensation expense recognized in the condensed consolidated statements of operations (in thousands):
 
 
Three Months Ended 
 October 31,
 
Nine Months Ended 
 October 31,
 
2017
 
2018
 
2017
 
2018
Cost of revenue—product
$
143

 
$
862

 
$
898

 
$
2,190

Cost of revenue—support subscription
2,422

 
3,327

 
6,441

 
8,940

Research and development
18,073

 
24,634

 
51,632

 
67,956

Sales and marketing
12,104

 
18,681

 
34,169

 
49,890

General and administrative
6,121

 
10,825

 
14,780

 
26,962

Total stock-based compensation expense
$
38,863

 
$
58,329

 
$
107,920

 
$
155,938

v3.10.0.1
Net Loss per Share Attributable to Common Stockholders (Tables)
9 Months Ended
Oct. 31, 2018
Earnings Per Share [Abstract]  
Summary of Computation of Basic and Diluted Net Loss per Share Attributable to Common Stockholders
The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except per share data):
 
 
Three Months Ended 
 October 31,
 
Nine Months Ended 
 October 31,
 
2017
 
2018
 
2017
 
2018
 
(As Adjusted*)
 
 
 
(As Adjusted*)
 
 
Net loss
$
(29,404
)
 
$
(28,180
)
 
$
(144,974
)
 
$
(152,607
)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted
213,274

 
235,205

 
209,456

 
229,505

Net loss per share attributable to common stockholders, basic and diluted
$
(0.14
)
 
$
(0.12
)
 
$
(0.69
)
 
$
(0.66
)


* Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018.

Summary of Weighted-average Outstanding Shares Excluded from Computation of Diluted Net Loss per Share Attributable to Common Stockholders
The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive (in thousands):
 
 
Three Months Ended 
 October 31,
 
Nine Months Ended 
 October 31,
 
2017
 
2018
 
2017
 
2018
Stock options to purchase common stock
51,685

 
37,814

 
53,786

 
41,201

Restricted stock units
17,201

 
19,493

 
14,913

 
19,488

Restricted stock and early exercised stock options
196

 
3,277

 
287

 
2,938

Employee stock purchase plan
585

 
236

 
585

 
80

Total
69,667

 
60,820

 
69,571

 
63,707

v3.10.0.1
Segment Information (Tables)
9 Months Ended
Oct. 31, 2018
Segment Reporting [Abstract]  
Schedule of Revenue by Geographic Area
The following table depicts the disaggregation of revenue by geographic area based on the billing address of our customers and is consistent with how we evaluate our financial performance (in thousands):
 
 
Three Months Ended 
 October 31,
 
Nine Months Ended 
 October 31,
 
2017
 
2018
 
2017
 
2018
 
(As Adjusted*)
 
 
 
(As Adjusted*)
 
 
United States
$
192,919

 
$
263,488

 
$
505,045

 
$
678,166

Rest of the world
84,672

 
109,291

 
179,861

 
259,442

Total revenue
$
277,591

 
$
372,779

 
$
684,906

 
$
937,608


* Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018.

Schedule of Long-Lived Assets by Geographic Area
Long-lived assets by geographic area are summarized as follows (in thousands):
 
 
As of
January 31, 2018
 
As of
October 31, 2018
United States
$
85,430

 
$
110,850

Rest of the world
3,712

 
4,416

Total long-lived assets
$
89,142

 
$
115,266

v3.10.0.1
Basis of Presentation and Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($)
$ in Thousands
Oct. 31, 2018
Jan. 31, 2018
Oct. 31, 2017
Accounting Policies [Abstract]      
Restricted cash $ 15,822 $ 14,763 [1] $ 14,763 [2]
[1] *Prior period information has been adjusted to reflect the adoption impact of Accounting Standards Codification 606, Revenue from Contracts with Customers (ASC 606), which we adopted on February 1, 2018.
[2] * Prior period information has been adjusted to reflect the adoption impact of ASC 606 and Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016-18), which we adopted on February 1, 2018
v3.10.0.1
Basis of Presentation and Summary of Significant Accounting Policies - Deferred Commissions (Details) - USD ($)
3 Months Ended 9 Months Ended
Oct. 31, 2018
Oct. 31, 2017
Oct. 31, 2018
Oct. 31, 2017
Accounting Policies [Abstract]        
Remaining amortization period 6 years   6 years  
Contract Assets        
Beginning balance $ 91,469,000   $ 87,313,000  
Additions 31,884,000   71,887,000  
Recognition of deferred commissions (26,913,000)   (62,760,000)  
Ending balance as of October 31, 2018 96,440,000   96,440,000  
Impairment loss, capitalized commissions $ 0 $ 0 $ 0 $ 0
v3.10.0.1
Basis of Presentation and Summary of Significant Accounting Policies - Deferred Commissions (Typed Dimensions) (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-08-01
9 Months Ended
Oct. 31, 2018
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation, percentage 25.00%
Remaining performance obligation, expected timing 1 year
v3.10.0.1
Basis of Presentation and Summary of Significant Accounting Policies - Deferred Revenue (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Oct. 31, 2018
Oct. 31, 2017
Oct. 31, 2018
Oct. 31, 2017
Contract Liability        
Beginning balance $ 413,247   $ 374,102  
Additions 122,681   290,463  
Recognition of deferred revenue 74,740   203,377  
Ending balance as of October 31, 2018 461,188   461,188  
Product Revenue and Support Subscription Revenue        
Contract Liability        
Deferred revenue recognized $ 67,000 $ 47,300 $ 151,400 $ 108,200
v3.10.0.1
Basis of Presentation and Summary of Significant Accounting Policies - Deferred Revenue (Typed Dimensions) (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-08-01
Oct. 31, 2018
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation, percentage 50.00%
Remaining performance obligation, expected timing 1 year
v3.10.0.1
Basis of Presentation and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements (Balance Sheet) (Details) - USD ($)
$ in Thousands
Oct. 31, 2018
Jul. 31, 2018
Jan. 31, 2018
Assets:      
Deferred commissions, current $ 24,100   $ 21,088 [1]
Deferred commissions, non-current 72,340   66,225 [1]
Total deferred commissions 96,440 $ 91,469 87,313
Liabilities:      
Deferred revenue, current 232,570   191,229 [1]
Deferred revenue, non-current 228,618   182,873 [1]
Total deferred revenue 461,188 $ 413,247 374,102
Stockholders' equity:      
Accumulated deficit $ (1,056,194)   (903,587) [1]
As Previously Reported      
Assets:      
Deferred commissions, current     22,437
Deferred commissions, non-current     20,288
Total deferred commissions     42,725
Liabilities:      
Deferred revenue, current     209,377
Deferred revenue, non-current     196,632
Total deferred revenue     406,009
Stockholders' equity:      
Accumulated deficit     (980,082)
Adjustment | Accounting Standards Update 2014-09      
Assets:      
Deferred commissions, current     (1,349)
Deferred commissions, non-current     45,937
Total deferred commissions     44,588
Liabilities:      
Deferred revenue, current     (18,148)
Deferred revenue, non-current     (13,759)
Total deferred revenue     (31,907)
Stockholders' equity:      
Accumulated deficit     $ 76,495
[1] *Prior period information has been adjusted to reflect the adoption impact of Accounting Standards Codification 606, Revenue from Contracts with Customers (ASC 606), which we adopted on February 1, 2018.
v3.10.0.1
Basis of Presentation and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements (Statement of Operations) (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 9 Months Ended
Oct. 31, 2018
Oct. 31, 2017
Oct. 31, 2018
Oct. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Total revenue $ 372,779 $ 277,591 [1] $ 937,608 $ 684,906 [1]
Gross profit 249,120 181,732 [1] 621,600 449,048 [1]
Sales and marketing 146,903 116,971 [1] 413,019 326,286 [1]
Total operating expenses 276,337 211,304 [1] 765,897 597,666 [1]
Loss from operations (27,217) (29,572) [1] (144,297) (148,618) [1]
Loss before provision for income taxes (30,106) (28,434) [1] (152,217) (142,219) [1]
Net loss $ (28,180) $ (29,404) [1],[2] $ (152,607) $ (144,974) [1],[2],[3]
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share) $ (0.12) $ (0.14) [1] $ (0.66) $ (0.69) [1]
Product        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Total revenue $ 298,863 $ 227,772 [1] $ 735,449 $ 550,291 [1]
Support subscription        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Total revenue $ 73,916 49,819 [1] $ 202,159 134,615 [1]
Adjustment | Accounting Standards Update 2014-09        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Total revenue   (83)   140
Gross profit   (83)   140
Sales and marketing   (12,328)   (20,610)
Total operating expenses   (12,328)   (20,610)
Loss from operations   12,245   20,750
Loss before provision for income taxes   12,245   20,750
Net loss   $ 12,245   $ 20,750
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share)   $ 0.06   $ 0.10
Adjustment | Product | Accounting Standards Update 2014-09        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Total revenue   $ 4,576   $ 13,657
Adjustment | Support subscription | Accounting Standards Update 2014-09        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Total revenue   (4,659)   (13,517)
As Previously Reported        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Total revenue   277,674   684,766
Gross profit   181,815   448,908
Sales and marketing   129,299   346,896
Total operating expenses   223,632   618,276
Loss from operations   (41,817)   (169,368)
Loss before provision for income taxes   (40,679)   (162,969)
Net loss   $ (41,649)   $ (165,724)
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share)   $ (0.20)   $ (0.79)
As Previously Reported | Product        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Total revenue   $ 223,196   $ 536,634
As Previously Reported | Support subscription        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Total revenue   $ 54,478   $ 148,132
[1] * Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018.
[2] * Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018.
[3] * Prior period information has been adjusted to reflect the adoption impact of ASC 606 and Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016-18), which we adopted on February 1, 2018
v3.10.0.1
Basis of Presentation and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements (Revenue) (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Oct. 31, 2018
Oct. 31, 2017
Oct. 31, 2018
Oct. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Total revenue $ 372,779 $ 277,591 [1] $ 937,608 $ 684,906 [1]
United States        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Total revenue 263,488 192,919 678,166 505,045
Rest of the world        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Total revenue $ 109,291 84,672 $ 259,442 179,861
As Previously Reported        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Total revenue   277,674   684,766
As Previously Reported | United States        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Total revenue   192,977   504,937
As Previously Reported | Rest of the world        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Total revenue   84,697   179,829
Adjustment | Accounting Standards Update 2014-09        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Total revenue   (83)   140
Adjustment | United States | Accounting Standards Update 2014-09        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Total revenue   (58)   108
Adjustment | Rest of the world | Accounting Standards Update 2014-09        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Total revenue   $ (25)   $ 32
[1] * Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018.
v3.10.0.1
Basis of Presentation and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements (Statement of Cash Flows) (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Oct. 31, 2018
Oct. 31, 2017
Oct. 31, 2018
Oct. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Net loss $ (28,180) $ (29,404) [1],[2] $ (152,607) $ (144,974) [1],[2],[3]
Adjustments to reconcile net loss to net cash provided by operating activities:        
Deferred commissions     (9,127) (13,969) [3]
Accrued compensation and other liabilities     7,592 359 [3]
Deferred revenue     87,005 54,264 [3]
Cash provided by operating activities     83,629 13,756 [3]
Net increase in restricted cash [3]       0
Net cash used in investing activities     (468,103) (51,261) [3]
Net increase (decrease) in cash, cash equivalents and restricted cash     163,643 393 [3]
Cash, cash equivalents and restricted cash, beginning of period     258,820 196,409 [3]
Cash, cash equivalents and restricted cash, end of period $ 422,463 196,802 [3] $ 422,463 196,802 [3]
As Previously Reported        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Net loss   (41,649)   (165,724)
Adjustments to reconcile net loss to net cash provided by operating activities:        
Deferred commissions       (7,629)
Accrued compensation and other liabilities       14,629
Deferred revenue       54,404
Cash provided by operating activities       13,756
Net increase in restricted cash       (2,029)
Net cash used in investing activities       (53,290)
Net increase (decrease) in cash, cash equivalents and restricted cash       (1,636)
Cash, cash equivalents and restricted cash, beginning of period       183,675
Cash, cash equivalents and restricted cash, end of period   182,039   182,039
Adjustment | Accounting Standards Update 2014-09        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Net loss   12,245   20,750
Adjustments to reconcile net loss to net cash provided by operating activities:        
Deferred commissions       (6,340)
Accrued compensation and other liabilities       (14,270)
Deferred revenue       (140)
Cash provided by operating activities       0
Adjustment | Accounting Standards Update 2016-18        
Adjustments to reconcile net loss to net cash provided by operating activities:        
Net increase in restricted cash       2,029
Net cash used in investing activities       2,029
Net increase (decrease) in cash, cash equivalents and restricted cash       2,029
Cash, cash equivalents and restricted cash, beginning of period       12,734
Cash, cash equivalents and restricted cash, end of period   $ 14,763   $ 14,763
[1] * Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018.
[2] * Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018.
[3] * Prior period information has been adjusted to reflect the adoption impact of ASC 606 and Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016-18), which we adopted on February 1, 2018
v3.10.0.1
Financial Instruments - Summary of Cash Equivalents, Marketable Securities and Restricted Cash by Significant Investment Categories (Details) - USD ($)
$ in Thousands
Oct. 31, 2018
Jan. 31, 2018
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost $ 805,503 $ 365,378
Gross Unrealized Gains 32 116
Gross Unrealized Losses (3,131) (2,033)
Fair Value 828,702 395,518
Cash Equivalents 75,860 27,466
Marketable Securities 737,020 353,289
Restricted Cash 15,822 14,763
Level 1 | Money market accounts    
Debt Securities, Available-for-sale [Line Items]    
Fair Value 26,298 32,057
Cash Equivalents 10,476 17,294
Marketable Securities 0 0
Restricted Cash 15,822 14,763
Level 2 | U.S. government treasury notes    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 323,212 131,643
Gross Unrealized Gains 0 0
Gross Unrealized Losses (891) (651)
Fair Value 322,321 130,992
Cash Equivalents 62,392 10,172
Marketable Securities 259,929 120,820
Restricted Cash 0 0
Level 2 | U.S. government agencies    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 73,362 47,229
Gross Unrealized Gains 0 0
Gross Unrealized Losses (355) (333)
Fair Value 73,007 46,896
Cash Equivalents 2,992 0
Marketable Securities 70,015 46,896
Restricted Cash 0 0
Level 2 | Corporate debt securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 377,468 186,506
Gross Unrealized Gains 31 116
Gross Unrealized Losses (1,830) (1,049)
Fair Value 375,669 185,573
Cash Equivalents 0 0
Marketable Securities 375,669 185,573
Restricted Cash 0 $ 0
Level 2 | Foreign government bonds    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 6,657  
Gross Unrealized Gains 1  
Gross Unrealized Losses (14)  
Fair Value 6,644  
Cash Equivalents 0  
Marketable Securities 6,644  
Restricted Cash 0  
Level 2 | Asset-backed securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 24,804  
Gross Unrealized Gains 0  
Gross Unrealized Losses (41)  
Fair Value 24,763  
Cash Equivalents 0  
Marketable Securities 24,763  
Restricted Cash $ 0  
v3.10.0.1
Financial Instruments - Schedule of Amortized Cost and Estimated Fair Value of Marketable Securities by Contractual Maturity (Details)
$ in Thousands
Oct. 31, 2018
USD ($)
Investments, Debt and Equity Securities [Abstract]  
Due within one year, Amortized Cost $ 367,860
Due in one to five years, Amortized Cost 372,255
Amortized Cost 740,115
Due within one year, Fair Value 366,886
Due in one to five years, Fair Value 370,134
Fair Value $ 737,020
v3.10.0.1
Financial Instruments - Schedule of Gross Unrealized Losses and Fair Values for Investments that were in Continuous Unrealized Loss Position for Less Than 12 Months, Aggregated by Investments Category (Details)
$ in Thousands
Oct. 31, 2018
USD ($)
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]  
Fair Value, Less than 12 months $ 630,880
Unrealized Loss, Less than 12 Months (1,813)
Fair Value, Greater than 12 months 137,239
Unrealized Loss, Greater than 12 months (1,318)
Fair Value, Total 768,119
Unrealized Loss, Total (3,131)
U.S. government treasury notes  
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]  
Fair Value, Less than 12 months 282,905
Unrealized Loss, Less than 12 Months (535)
Fair Value, Greater than 12 months 39,416
Unrealized Loss, Greater than 12 months (356)
Fair Value, Total 322,321
Unrealized Loss, Total (891)
U.S. government agencies  
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]  
Fair Value, Less than 12 months 47,927
Unrealized Loss, Less than 12 Months (143)
Fair Value, Greater than 12 months 25,080
Unrealized Loss, Greater than 12 months (212)
Fair Value, Total 73,007
Unrealized Loss, Total (355)
Corporate debt securities  
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]  
Fair Value, Less than 12 months 270,140
Unrealized Loss, Less than 12 Months (1,080)
Fair Value, Greater than 12 months 72,743
Unrealized Loss, Greater than 12 months (750)
Fair Value, Total 342,883
Unrealized Loss, Total (1,830)
Foreign government bonds  
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]  
Fair Value, Less than 12 months 5,145
Unrealized Loss, Less than 12 Months (14)
Fair Value, Greater than 12 months 0
Unrealized Loss, Greater than 12 months 0
Fair Value, Total 5,145
Unrealized Loss, Total (14)
Asset-backed securities  
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]  
Fair Value, Less than 12 months 24,763
Unrealized Loss, Less than 12 Months (41)
Fair Value, Greater than 12 months 0
Unrealized Loss, Greater than 12 months 0
Fair Value, Total 24,763
Unrealized Loss, Total $ (41)
v3.10.0.1
Business Combination (Details) - USD ($)
$ in Thousands
1 Months Ended
Aug. 31, 2018
Oct. 31, 2018
Jan. 31, 2018
Business Acquisition [Line Items]      
Goodwill   $ 10,997 $ 0 [1]
Acquisition consideration held back   $ 3,725 $ 0
StorReduce, Inc.      
Business Acquisition [Line Items]      
Cash consideration transferred $ 20,500    
Long-term debt assumed and subsequently paid off 6,100    
Fees assumed associated with the transaction 1,100    
Goodwill 11,000    
Net liabilities assumed 4,500    
Deferred tax liabilities assumed 3,700    
Acquisition consideration held back $ 3,725    
StorReduce, Inc. | Restricted Stock Units      
Business Acquisition [Line Items]      
Equity interests issued and issuable, shares issued (in shares) 622,482    
Equity interests issued and issuable $ 13,600    
StorReduce, Inc. | Developed technology      
Business Acquisition [Line Items]      
Finite-lived intangibles acquired $ 17,700    
Finite-lived intangibles acquired, amortization period 7 years    
[1] *Prior period information has been adjusted to reflect the adoption impact of Accounting Standards Codification 606, Revenue from Contracts with Customers (ASC 606), which we adopted on February 1, 2018.
v3.10.0.1
Balance Sheet Components - Schedule of Inventory (Details) - USD ($)
$ in Thousands
Oct. 31, 2018
Jan. 31, 2018
Balance Sheet Components Disclosure [Abstract]    
Raw materials $ 4,880 $ 1,181
Finished goods 45,857 33,316
Inventory $ 50,737 $ 34,497
v3.10.0.1
Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($)
$ in Thousands
Oct. 31, 2018
Jan. 31, 2018
Property Plant And Equipment [Line Items]    
Total property and equipment $ 307,628 $ 235,035
Less: accumulated depreciation and amortization (192,362) (145,893)
Property and equipment, net 115,266 89,142 [1]
Test equipment    
Property Plant And Equipment [Line Items]    
Total property and equipment 166,936 142,311
Computer equipment and software    
Property Plant And Equipment [Line Items]    
Total property and equipment 103,366 72,329
Furniture and fixtures    
Property Plant And Equipment [Line Items]    
Total property and equipment 5,619 5,363
Leasehold improvements    
Property Plant And Equipment [Line Items]    
Total property and equipment $ 31,707 $ 15,032
[1] *Prior period information has been adjusted to reflect the adoption impact of Accounting Standards Codification 606, Revenue from Contracts with Customers (ASC 606), which we adopted on February 1, 2018.
v3.10.0.1
Balance Sheet Components - Additional Information (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Oct. 31, 2018
Oct. 31, 2017
Oct. 31, 2018
Oct. 31, 2017
Balance Sheet Components Disclosure [Abstract]        
Depreciation and amortization $ 16.9 $ 15.2 $ 49.8 $ 44.4
Intangible assets amortization expense $ 0.9 $ 0.4 $ 1.6 $ 1.1
Technology patents        
Finite-Lived Intangible Assets [Line Items]        
Weighted-average remaining useful life     2 years 7 months 6 days  
Developed technology        
Finite-Lived Intangible Assets [Line Items]        
Weighted-average remaining useful life     6 years 9 months 18 days  
v3.10.0.1
Balance Sheet Components - Schedule of Intangible Assets, Net (Details) - USD ($)
$ in Thousands
Oct. 31, 2018
Jan. 31, 2018
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value $ 27,825 $ 10,125
Accumulated Amortization (6,699) (5,068)
Net Carrying Amount 21,126 5,057 [1]
Technology patents    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value 10,125 10,125
Accumulated Amortization (6,196) (5,068)
Net Carrying Amount 3,929 5,057
Developed technology    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value 17,700 0
Accumulated Amortization (503) 0
Net Carrying Amount $ 17,197 $ 0
[1] *Prior period information has been adjusted to reflect the adoption impact of Accounting Standards Codification 606, Revenue from Contracts with Customers (ASC 606), which we adopted on February 1, 2018.
v3.10.0.1
Balance Sheet Components - Schedule of Expected Amortization Expenses for Intangible Assets (Details) - USD ($)
$ in Thousands
Oct. 31, 2018
Jan. 31, 2018
[1]
Balance Sheet Components Disclosure [Abstract]    
Remainder of 2019 $ 1,008  
2020 4,032  
2021 4,032  
2022 3,074  
2023 2,529  
Thereafter 6,451  
Net Carrying Amount $ 21,126 $ 5,057
[1] *Prior period information has been adjusted to reflect the adoption impact of Accounting Standards Codification 606, Revenue from Contracts with Customers (ASC 606), which we adopted on February 1, 2018.
v3.10.0.1
Balance Sheet Components - Schedule of Goodwill (Details)
$ in Thousands
9 Months Ended
Oct. 31, 2018
USD ($)
Goodwill [Roll Forward]  
Balance as of January 31, 2018 $ 0 [1]
Goodwill acquired 10,997
Balance as of October 31, 2018 $ 10,997
[1] *Prior period information has been adjusted to reflect the adoption impact of Accounting Standards Codification 606, Revenue from Contracts with Customers (ASC 606), which we adopted on February 1, 2018.
v3.10.0.1
Balance Sheet Components - Schedule of Accrued Expenses and Other Liabilities (Details) - USD ($)
$ in Thousands
Oct. 31, 2018
Jan. 31, 2018
Balance Sheet Components Disclosure [Abstract]    
Taxes payable $ 6,907 $ 4,052
Accrued marketing 8,561 5,928
Accrued travel and entertainment expenses 4,108 4,386
Acquisition consideration held back 3,725 0
Other accrued liabilities 20,332 12,463
Total accrued expenses and other liabilities $ 43,633 $ 26,829 [1]
[1] *Prior period information has been adjusted to reflect the adoption impact of Accounting Standards Codification 606, Revenue from Contracts with Customers (ASC 606), which we adopted on February 1, 2018.
v3.10.0.1
Convertible Senior Notes (Details)
1 Months Ended 9 Months Ended
Apr. 30, 2018
USD ($)
day
shares
$ / shares
Oct. 31, 2018
USD ($)
$ / shares
Oct. 31, 2017
USD ($)
[1]
Apr. 04, 2018
$ / shares
Debt Instrument [Line Items]        
Proceeds from issuance of convertible senior notes, net of issuance costs   $ 562,062,000 $ 0  
Debt issuance costs, net of amortization $ 12,900,000      
Closing price of stock (in dollars per share) | $ / shares   $ 20.18    
Payment to enter into agreement   $ 64,630,000 $ 0  
Capped Call        
Debt Instrument [Line Items]        
Payment to enter into agreement 64,600,000      
Convertible Senior Notes        
Debt Instrument [Line Items]        
Debt issuance costs, net of amortization 9,800,000 8,897,000    
Additional Paid-in Capital        
Debt Instrument [Line Items]        
Debt issuance costs, net of amortization $ 3,100,000 $ 3,068,000    
Class A        
Debt Instrument [Line Items]        
Closing price of stock (in dollars per share) | $ / shares   $ 20.18   $ 19.83
Class A | Capped Call        
Debt Instrument [Line Items]        
Exercise price (in dollars per share) | $ / shares $ 39.66      
Exercise price premium percentage over last reported sales price       100.00%
Convertible Senior Notes        
Debt Instrument [Line Items]        
Principal amount $ 575,000,000.0      
Interest rate 0.125%      
Proceeds from issuance of convertible senior notes, net of issuance costs $ 562,100,000      
Conversion percentage of principal amount plus accrued and unpaid contingent interest 100.00%      
Convertible debt, fair value based on the closing trading price per $100 of the Notes   $ 586,500,000    
If-converted value   $ 441,600,000    
Convertible Senior Notes | Class A        
Debt Instrument [Line Items]        
Number of convertible shares at initial conversion rate (in shares) | shares 21,884,155      
Conversion ratio (in shares per $1,000 principal amount) 38.0594      
Conversion price (in dollars per share) | $ / shares $ 26.27      
Redemption percentage of principal amount of Notes to be redeemed 100.00%      
Convertible Senior Notes | Class A | Any Fiscal Quarter Commencing After the Fiscal Quarter Ending on July 31, 2018        
Debt Instrument [Line Items]        
Threshold trading days | day 20      
Threshold consecutive trading days | day 30      
Threshold percentage of stock price trigger 130.00%      
Convertible Senior Notes | Class A | Five Business Day Period After any Five Consecutive Trading Day Period        
Debt Instrument [Line Items]        
Threshold consecutive trading days | day 5      
Threshold percentage of stock price trigger 98.00%      
Threshold business days | day 5      
Convertible Senior Notes | Class A | Immediately Preceding the Date on Which We Provide Notice of Redemption        
Debt Instrument [Line Items]        
Threshold trading days | day 2      
[1] * Prior period information has been adjusted to reflect the adoption impact of ASC 606 and Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016-18), which we adopted on February 1, 2018
v3.10.0.1
Convertible Senior Notes - Allocation of Notes (Details) - USD ($)
$ in Thousands
Oct. 31, 2018
Apr. 30, 2018
Liability:    
Less: debt issuance costs, net of amortization   $ (12,900)
Stockholders' equity:    
Less: debt issuance costs   (12,900)
Convertible Senior Notes    
Liability:    
Principal $ 575,000  
Less: debt discount, net of amortization (122,891)  
Less: debt issuance costs, net of amortization (8,897) (9,800)
Net carrying amount of the Notes 443,212  
Stockholders' equity:    
Less: debt issuance costs (8,897) (9,800)
Additional Paid-in Capital    
Liability:    
Less: debt issuance costs, net of amortization (3,068) (3,100)
Stockholders' equity:    
Allocated value of the conversion feature 136,333  
Less: debt issuance costs (3,068) $ (3,100)
Additional paid-in capital $ 133,265  
v3.10.0.1
Convertible Senior Notes - Interest Expense (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Oct. 31, 2018
Oct. 31, 2018
Oct. 31, 2017
[1]
Debt Instrument [Line Items]      
Total amortization of debt discount and debt issuance costs   $ 14,414 $ 0
Convertible Senior Notes      
Debt Instrument [Line Items]      
Amortization of debt discount $ 6,084 13,441  
Amortization of debt issuance costs 441 973  
Total amortization of debt discount and debt issuance costs 6,525 14,414  
Contractual interest expense 181 405  
Total interest expense related to the Notes $ 6,706 $ 14,819  
Effective interest rate of the liability component 5.60% 5.60%  
[1] * Prior period information has been adjusted to reflect the adoption impact of ASC 606 and Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016-18), which we adopted on February 1, 2018
v3.10.0.1
Commitments and Contingencies - Additional Information (Details) - USD ($)
Oct. 31, 2018
Mar. 31, 2018
Jan. 31, 2018
Commitments and Contingencies Disclosure [Abstract]      
Base rent obligation $ 149,900,000   $ 113,000,000
Lessee, Lease, Description [Line Items]      
Outstanding letters of credit $ 10,800,000   $ 9,600,000
Letter of Credit      
Lessee, Lease, Description [Line Items]      
Principal amount   $ 1,500,000.0  
v3.10.0.1
Stockholders' Equity - Additional Information (Details)
$ / shares in Units, $ in Millions
1 Months Ended
Apr. 30, 2018
USD ($)
shares
Oct. 31, 2018
class
$ / shares
shares
Apr. 04, 2018
$ / shares
Jan. 31, 2018
$ / shares
shares
[1]
Equity [Abstract]        
Preferred stock, shares authorized (in shares)   20,000,000   20,000,000
Preferred stock, shares issued (in shares)   0   0
Preferred stock, shares outstanding (in shares)   0   0
Number of classes of stock | class   2    
Class Of Stock [Line Items]        
Common stock, shares authorized (in shares)   2,250,000,000   2,250,000,000
Common stock, par value per share (in dollars per share) | $ / shares   $ 0.0001   $ 0.0001
Common stock, shares issued (in shares)   241,359,000   220,979,000
Common stock, shares outstanding (in shares)   241,359,000   220,979,000
Closing price of stock (in dollars per share) | $ / shares   $ 20.18    
Class A        
Class Of Stock [Line Items]        
Common stock, shares authorized (in shares)   2,000,000,000   2,000,000,000
Common stock, par value per share (in dollars per share) | $ / shares   $ 0.0001   $ 0.0001
Common stock, shares issued (in shares)   216,252,136   129,502,000
Common stock, shares outstanding (in shares)   216,252,136   129,502,000
Stock repurchased and retired during period (in shares) 1,008,573      
Stock repurchased and retired during period, value | $ $ 20.0      
Closing price of stock (in dollars per share) | $ / shares   $ 20.18 $ 19.83  
Class B        
Class Of Stock [Line Items]        
Common stock, shares authorized (in shares)   250,000,000   250,000,000
Common stock, par value per share (in dollars per share) | $ / shares   $ 0.0001   $ 0.0001
Common stock, shares issued (in shares)   25,107,173   91,477,000
Common stock, shares outstanding (in shares)   25,107,173   91,477,000
[1] *Prior period information has been adjusted to reflect the adoption impact of Accounting Standards Codification 606, Revenue from Contracts with Customers (ASC 606), which we adopted on February 1, 2018.
v3.10.0.1
Equity Incentive Plans - Additional Information (Details)
1 Months Ended 3 Months Ended 9 Months Ended
Mar. 16, 2016
Aug. 31, 2015
USD ($)
period
shares
Oct. 31, 2018
USD ($)
Oct. 31, 2017
USD ($)
Apr. 30, 2017
USD ($)
Oct. 31, 2018
USD ($)
plan
Oct. 31, 2017
USD ($)
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]              
Number of equity incentive plans | plan           2  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Total stock-based compensation expense     $ 58,329,000 $ 38,863,000   $ 155,938,000 $ 107,920,000
2015 Equity Incentive Plan              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Equity awards of vest expire period (no later than)           10 years  
2015 Equity Incentive Plan | Minimum              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Purchase price as percentage of fair market value of common stock           100.00%  
Equity awards of vest period           2 years  
2015 Equity Incentive Plan | Maximum              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Equity awards of vest period           4 years  
2015 Employee Stock Purchase Plan              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Employee stock purchase plan offering period 24 months            
Number of purchase periods | period   4          
Purchase period, term   6 months          
Total stock-based compensation expense     11,600,000 $ 4,700,000   $ 26,200,000 $ 12,600,000
Unrecognized stock-based compensation expense     $ 36,300,000     $ 36,300,000  
Compensation cost, weighted average term           10 months 24 days  
2015 Employee Stock Purchase Plan | Class A              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Purchase price as percentage of fair market value of common stock   85.00%          
Payroll deductions percentage   30.00%          
Share cap for ESPP at purchase date (in shares) | shares   3,000          
Calendar year gap for ESPP contribution amount   $ 25,000          
Modification charges         $ 9,000,000    
v3.10.0.1
Equity Incentive Plans - Stock Options (Details) - USD ($)
$ / shares in Units, $ in Thousands
9 Months Ended 12 Months Ended
Oct. 31, 2018
Jan. 31, 2018
Apr. 04, 2018
Options Outstanding, Number of Shares      
Beginning balance (in shares) 46,359,949    
Options exercised (in shares) (8,249,893)    
Options forfeited/cancelled (in shares) (1,360,202)    
Ending balance (in shares) 36,749,854 46,359,949  
Options Outstanding, Number of Shares, Vested and exercisable (in shares) 26,221,996    
Options Outstanding, Weighted Average Exercise Price      
Beginning balance (in dollars per share) $ 7.75    
Options exercised (in dollars per share) 5.26    
Options forfeited/cancelled (in dollars per share) 10.04    
Ending balance (in dollars per share) 8.22 $ 7.75  
Weighted Average Exercise Price, Vested and exercisable (in dollars per share) $ 6.38    
Weighted- Average Remaining Contractual Life      
Weighted Average Remaining Contractual Life 5 years 7 months 6 days 6 years 3 months 18 days  
Weighted Average Remaining Contractual Life, Vested and exercisable 5 years 2 months 12 days    
Aggregate Intrinsic Value      
Aggregate Intrinsic Value $ 439,185 $ 574,224  
Aggregate Intrinsic Value, Vested and exercisable $ 361,783    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Closing price of stock (in dollars per share) $ 20.18    
Unrecognized compensation cost, stock options $ 40,200    
Employee Stock Option      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Compensation cost, weighted average term 1 year 10 months 24 days    
Class A      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Closing price of stock (in dollars per share) $ 20.18   $ 19.83
v3.10.0.1
Equity Incentive Plans - Restricted Stock Units (Details) - USD ($)
$ / shares in Units, $ in Thousands
1 Months Ended 3 Months Ended 9 Months Ended
Mar. 31, 2018
Aug. 31, 2017
Mar. 30, 2017
Oct. 31, 2018
Oct. 31, 2017
Oct. 31, 2018
Oct. 31, 2017
Jan. 31, 2018
Weighted-Average Grant Date Fair Value                
Stock-based compensation expense       $ 58,329 $ 38,863 $ 155,938 $ 107,920  
Restricted Stock Units                
Number of Restricted Stock Units Outstanding                
Unvested, Beginning balance (in shares)           17,682,646    
Granted (in shares)           11,098,371    
Vested (in shares)           (6,429,146)    
Forfeited (in shares)           (1,719,729)    
Converted (in shares) (1,375,210)         (1,142,838)    
Unvested, Ending balance (in shares)       19,489,304   19,489,304    
Weighted-Average Grant Date Fair Value                
Beginning balance (in dollars per share)           $ 12.60    
Granted (in dollars per share)           22.49    
Vested (in dollars per share)           12.84    
Forfeited (in dollars per share)           15.57    
Converted (in dollars per share)           11.86    
Ending balance (in dollars per share)       $ 17.92   $ 17.92    
Aggregate Intrinsic Value       $ 393,270   $ 393,270   $ 356,117
Compensation not yet recognized       316,100   $ 316,100    
Compensation cost, weighted average term           3 years    
Performance Shares | Granted March 2017                
Number of Restricted Stock Units Outstanding                
Granted (in shares)     750,000          
Forfeited (in shares)     (77,000)          
Weighted-Average Grant Date Fair Value                
Earned (in shares) 780,000              
Stock-based compensation expense       $ 400 $ 1,300 $ 1,900 $ 2,900  
Performance Shares | Granted March 2017 | Minimum                
Weighted-Average Grant Date Fair Value                
Award vesting rights, percentage     0.00%          
Performance Shares | Granted March 2017 | Maximum                
Weighted-Average Grant Date Fair Value                
Award vesting rights, percentage     150.00%          
Performance Shares | Granted August 2017                
Number of Restricted Stock Units Outstanding                
Granted (in shares)   464,744            
Weighted-Average Grant Date Fair Value                
Award vesting rights, percentage   100.00%            
Performance Shares | Granted August 2017 | Minimum                
Weighted-Average Grant Date Fair Value                
Award vesting rights, percentage   0.00%            
Performance Shares | Granted August 2017 | Maximum                
Weighted-Average Grant Date Fair Value                
Award vesting rights, percentage   150.00%            
v3.10.0.1
Equity Incentive Plans - Restricted Stock (Details) - USD ($)
$ / shares in Units, $ in Thousands
1 Months Ended 3 Months Ended 9 Months Ended
Mar. 31, 2018
Oct. 31, 2018
Oct. 31, 2017
Oct. 31, 2018
Oct. 31, 2017
Jan. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Stock-based compensation expense   $ 58,329 $ 38,863 $ 155,938 $ 107,920  
Restricted Stock Units            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Converted (in shares) 1,375,210     1,142,838    
Issued (in shares)       11,098,371    
Compensation cost, weighted average term       3 years    
Number of Restricted Stock Outstanding            
Unvested, Beginning balance (in shares)       17,682,646    
Vested (in shares)       (6,429,146)    
Unvested, Ending balance (in shares)   19,489,304   19,489,304    
Weighted-Average Grant Date Fair Value            
Beginning balance (in dollars per share)       $ 12.60    
Vested (in dollars per share)       12.84    
Ending balance (in dollars per share)   $ 17.92   $ 17.92    
Aggregate Intrinsic Value   $ 393,270   $ 393,270   $ 356,117
Restricted Stock            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Stock-based compensation expense   7,500   17,700    
Unrecognized stock-based compensation expense   $ 26,300   $ 26,300    
Compensation cost, weighted average term       2 years 4 months 17 days    
Number of Restricted Stock Outstanding            
Unvested, Beginning balance (in shares)       0    
Granted and converted (in shares)       3,330,118    
Vested (in shares)       (116,186)    
Unvested, Ending balance (in shares)   3,213,932   3,213,932    
Weighted-Average Grant Date Fair Value            
Beginning balance (in dollars per share)       $ 0.00    
Granted and converted (in dollars per share)       19.25    
Vested (in dollars per share)       12.84    
Ending balance (in dollars per share)   $ 19.49   $ 19.49    
Aggregate Intrinsic Value   $ 64,857   $ 64,857   $ 0
Restricted Stock | Performance Vesting Conditions            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Converted (in shares) 697,116          
Restricted Stock | Service Vesting Conditions            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Converted (in shares) 678,094          
Restricted Stock | Performance Vesting at Maximum            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Issued (in shares)       1,954,908    
Restricted Stock | Maximum | Performance Vesting at Maximum            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Award vesting rights, percentage       180.00%    
Restricted Stock | Minimum | Performance Vesting at Maximum            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Award vesting rights, percentage       0.00%    
v3.10.0.1
Equity Incentive Plans - Stock-Based Compensation Expenses (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Oct. 31, 2018
Oct. 31, 2017
Oct. 31, 2018
Oct. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total stock-based compensation expense $ 58,329 $ 38,863 $ 155,938 $ 107,920
Cost of revenue—product        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total stock-based compensation expense 862 143 2,190 898
Cost of revenue—support subscription        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total stock-based compensation expense 3,327 2,422 8,940 6,441
Research and development        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total stock-based compensation expense 24,634 18,073 67,956 51,632
Sales and marketing        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total stock-based compensation expense 18,681 12,104 49,890 34,169
General and administrative        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total stock-based compensation expense $ 10,825 $ 6,121 $ 26,962 $ 14,780
v3.10.0.1
Net Loss per Share Attributable to Common Stockholders - Summary of Computation of Basic and Diluted Net Loss per Share Attributable to Common Stockholders (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended 9 Months Ended
Oct. 31, 2018
Oct. 31, 2017
[1]
Oct. 31, 2018
Oct. 31, 2017
[1]
Earnings Per Share [Abstract]        
Net loss $ (28,180) $ (29,404) [2] $ (152,607) $ (144,974) [2],[3]
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted (in shares) 235,205 213,274 229,505 209,456
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share) $ (0.12) $ (0.14) $ (0.66) $ (0.69)
[1] * Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018.
[2] * Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018.
[3] * Prior period information has been adjusted to reflect the adoption impact of ASC 606 and Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016-18), which we adopted on February 1, 2018
v3.10.0.1
Net Loss per Share Attributable to Common Stockholders - Summary of Weighted-average Outstanding Shares Excluded from Computation of Diluted Net Loss per Share Attributable to Common Stockholders (Details) - shares
shares in Thousands
3 Months Ended 9 Months Ended
Oct. 31, 2018
Oct. 31, 2017
Oct. 31, 2018
Oct. 31, 2017
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]        
Anti-dilutive securities excluded from computation of earnings per share, amount (in shares) 60,820 69,667 63,707 69,571
Stock options to purchase common stock        
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]        
Anti-dilutive securities excluded from computation of earnings per share, amount (in shares) 37,814 51,685 41,201 53,786
Restricted stock units        
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]        
Anti-dilutive securities excluded from computation of earnings per share, amount (in shares) 19,493 17,201 19,488 14,913
Restricted stock and early exercised stock options        
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]        
Anti-dilutive securities excluded from computation of earnings per share, amount (in shares) 3,277 196 2,938 287
Employee stock purchase plan        
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]        
Anti-dilutive securities excluded from computation of earnings per share, amount (in shares) 236 585 80 585
v3.10.0.1
Income Taxes (Details)
$ in Millions
3 Months Ended
Oct. 31, 2018
USD ($)
StorReduce, Inc.  
Business Acquisition [Line Items]  
Release of deferred tax liability valuation allowance $ 3.7
v3.10.0.1
Segment Information - Additional Information (Details)
9 Months Ended
Oct. 31, 2018
segment
Segment Reporting [Abstract]  
Number of business activities 1
Number of reportable segments 1
v3.10.0.1
Segment Information - Schedule of Revenue by Geographic Area (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Oct. 31, 2018
Oct. 31, 2017
Oct. 31, 2018
Oct. 31, 2017
Revenues From External Customers And Long Lived Assets [Line Items]        
Total revenue $ 372,779 $ 277,591 [1] $ 937,608 $ 684,906 [1]
United States        
Revenues From External Customers And Long Lived Assets [Line Items]        
Total revenue 263,488 192,919 678,166 505,045
Rest of the world        
Revenues From External Customers And Long Lived Assets [Line Items]        
Total revenue $ 109,291 $ 84,672 $ 259,442 $ 179,861
[1] * Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018.
v3.10.0.1
Segment Information - Schedule of Long-Lived Assets by Geographic Area (Details) - USD ($)
$ in Thousands
Oct. 31, 2018
Jan. 31, 2018
Revenues From External Customers And Long Lived Assets [Line Items]    
Total long-lived assets $ 115,266 $ 89,142 [1]
United States    
Revenues From External Customers And Long Lived Assets [Line Items]    
Total long-lived assets 110,850 85,430
Rest of the world    
Revenues From External Customers And Long Lived Assets [Line Items]    
Total long-lived assets $ 4,416 $ 3,712
[1] *Prior period information has been adjusted to reflect the adoption impact of Accounting Standards Codification 606, Revenue from Contracts with Customers (ASC 606), which we adopted on February 1, 2018.
v3.10.0.1
Subsequent Event (Details) - Subsequent Event - USD ($)
Dec. 04, 2018
Nov. 30, 2018
Subsequent Event [Line Items]    
Common stock, terms of conversion, conversion threshold as a percentage of aggregate number of shares outstanding 10.00%  
HTSV Note | Senior Notes    
Subsequent Event [Line Items]    
Principal amount   $ 5,000,000.0
Interest rate   1.50%