PURE STORAGE, INC., 10-Q filed on 12/15/2022
Quarterly Report
v3.22.2.2
Cover - shares
 9 Months Ended
Nov. 06, 2022
Dec. 07, 2022
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Nov. 06, 2022  
Document Transition Report false  
Entity File Number 001-37570  
Entity Registrant Name Pure Storage, Inc.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 27-1069557  
Entity Address, Address Line One 650 Castro Street,  
Entity Address, Address Line Two Suite 400  
Entity Address, City or Town Mountain View  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 94041  
City Area Code 800  
Local Phone Number 379-7873  
Title of 12(b) Security Class A Common Stock, $0.0001 par value per share  
Trading Symbol PSTG  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding (in shares)   302,585,633
Amendment Flag false  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q3  
Entity Central Index Key 0001474432  
Current Fiscal Year End Date --02-05  
v3.22.2.2
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Nov. 06, 2022
Feb. 06, 2022
Current assets:    
Cash and cash equivalents $ 795,931 $ 466,199
Marketable securities 669,173 947,073
Accounts receivable, net of allowance of $945 and $1,053 435,618 542,144
Inventory 59,716 38,942
Deferred commissions, current 69,397 81,589
Prepaid expenses and other current assets 178,838 116,232
Total current assets 2,208,673 2,192,179
Property and equipment, net 248,606 195,282
Operating lease right-of-use assets 163,676 111,763
Deferred commissions, non-current 165,735 164,718
Intangible assets, net 53,379 62,646
Goodwill 361,427 358,736
Restricted cash 10,544 10,544
Other assets, non-current 40,785 39,447
Total assets 3,252,825 3,135,315
Current liabilities:    
Accounts payable 102,879 70,704
Accrued compensation and benefits 159,231 205,431
Accrued expenses and other liabilities 108,972 78,511
Operating lease liabilities, current 31,114 35,098
Deferred revenue, current 647,116 562,576
Debt, current 573,855 0
Total current liabilities 1,623,167 952,320
Long-term debt 0 786,779
Operating lease liabilities, non-current 147,110 93,479
Deferred revenue, non-current 601,103 517,296
Other liabilities, non-current 40,937 31,105
Total liabilities 2,412,317 2,380,979
Commitments and contingencies (Note 7)
Stockholders’ equity:    
Preferred stock, par value of $0.0001 per share— 20,000 shares authorized; no shares issued and outstanding 0 0
Class A and Class B common stock, par value of $0.0001 per share— 2,250,000 (Class A 2,000,000, Class B 250,000) shares authorized; 292,633 and 302,669 Class A shares issued and outstanding 30 29
Additional paid-in capital 2,475,764 2,470,943
Accumulated other comprehensive loss (23,753) (8,365)
Accumulated deficit (1,611,533) (1,708,271)
Total stockholders’ equity 840,508 754,336
Total liabilities and stockholders’ equity $ 3,252,825 $ 3,135,315
v3.22.2.2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Nov. 06, 2022
Feb. 06, 2022
Accounts receivable, allowance $ 1,053 $ 945
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, shares authorized (in shares) 2,250,000,000 2,250,000,000
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) 302,668,981 292,633,000
Common stock, shares outstanding (in shares) 302,668,981 292,633,000
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
v3.22.2.2
Condensed Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Nov. 06, 2022
Oct. 31, 2021
Nov. 06, 2022
Oct. 31, 2021
Revenue $ 676,050 $ 562,740 $ 1,943,227 $ 1,472,278
Cost of revenue 209,715 187,948 606,898 475,593
Gross profit 466,335 374,792 1,336,329 996,685
Operating expenses:        
Research and development 180,008 147,808 506,971 419,296
Sales and marketing 212,140 193,172 637,129 567,054
General and administrative 65,054 51,890 173,300 138,500
Total operating expenses 457,202 392,870 1,317,400 1,124,850
Income (loss) from operations 9,133 (18,078) 18,929 (128,165)
Other income (expense), net (2,814) (7,953) (8,410) (20,090)
Income (loss) before provision for income taxes 6,319 (26,031) 10,519 (148,255)
Provision for income taxes 7,106 2,700 11,919 9,947
Net loss $ (787) $ (28,731) $ (1,400) $ (158,202)
Net loss per share attributable to common stockholders, basic (in dollars per share) $ (0.00) $ (0.10) $ (0.00) $ (0.56)
Net loss per share attributable to common stockholders, diluted (in dollars per share) $ (0.00) $ (0.10) $ (0.00) $ (0.56)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic (in shares) 300,984 287,462 298,101 283,918
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted (in shares) 300,984 287,462 298,101 283,918
Product        
Revenue $ 431,281 $ 374,913 $ 1,247,045 $ 949,736
Cost of revenue 135,546 129,721 395,322 309,935
Subscription services        
Revenue 244,769 187,827 696,182 522,542
Cost of revenue $ 74,169 $ 58,227 $ 211,576 $ 165,658
v3.22.2.2
Condensed Consolidated Statements of Comprehensive Loss - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Nov. 06, 2022
Oct. 31, 2021
Nov. 06, 2022
Oct. 31, 2021
Statement of Comprehensive Income [Abstract]        
Net loss $ (787) $ (28,731) $ (1,400) $ (158,202)
Other comprehensive loss:        
Unrealized net losses on available-for-sale securities (3,656) (3,710) (15,365) (7,121)
Less: reclassification adjustment for net (gains) losses on available-for-sale securities included in net loss 2 (78) (23) (596)
Change in unrealized net losses on available-for-sale securities (3,654) (3,788) (15,388) (7,717)
Comprehensive loss $ (4,441) $ (32,519) $ (16,788) $ (165,919)
v3.22.2.2
Condensed Consolidated Statements of Stockholders’ Equity - USD ($)
shares in Thousands, $ in Thousands
Total
Cumulative-effect adjustment from adoption of ASU 2020-06
Restricted Stock Units
Common Stock
Common Stock
Restricted Stock Units
Additional Paid-in Capital
Additional Paid-in Capital
Cumulative-effect adjustment from adoption of ASU 2020-06
Additional Paid-in Capital
Restricted Stock Units
Accumulated Other Comprehensive Income (Loss)
Accumulated Deficit
Accumulated Deficit
Cumulative-effect adjustment from adoption of ASU 2020-06
Beginning balance (in shares) at Jan. 31, 2021       278,363              
Beginning balance at Jan. 31, 2021 $ 750,006     $ 28   $ 2,307,580     $ 7,410 $ (1,565,012)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Issuance of common stock upon exercise of stock options (in shares)       3,983              
Issuance of common stock upon exercise of stock options 33,573         33,573          
Stock-based compensation expense 209,401         209,401          
Vesting of restricted stock units (in shares)         9,875            
Vesting of restricted stock units     $ 0   $ 1     $ (1)      
Tax withholding on vesting of restricted stock units (in shares)       (386)              
Tax withholding on vesting of restricted stock units (8,670)         (8,670)          
Forfeiture of restricted stock (in shares)       (62)              
Forfeiture of restricted stock 0                    
Common stock issued under employee stock purchase plan (in shares)       4,365              
Common stock issued under employee stock purchase plan 36,641         36,641          
Repurchases of common stock (in shares)       (6,057)              
Repurchases of common stock (130,608)         (130,608)          
Other comprehensive loss (7,717)               (7,717)    
Net loss (158,202)                 (158,202)  
Ending balance (in shares) at Oct. 31, 2021       290,081              
Ending balance at Oct. 31, 2021 724,424     $ 29   2,447,916     (307) (1,723,214)  
Beginning balance (in shares) at Jan. 31, 2021       278,363              
Beginning balance at Jan. 31, 2021 750,006     $ 28   2,307,580     7,410 (1,565,012)  
Ending balance (in shares) at Feb. 06, 2022       292,633              
Ending balance at Feb. 06, 2022 $ 754,336 $ (35,127)   $ 29   2,470,943 $ (133,265)   (8,365) (1,708,271) $ 98,138
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Accounting Standards Update [Extensible Enumeration] Accounting Standards Update 2020-06 [Member]                    
Beginning balance (in shares) at Aug. 01, 2021       284,734              
Beginning balance at Aug. 01, 2021 $ 697,444     $ 28   2,388,418     3,481 (1,694,483)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Issuance of common stock upon exercise of stock options (in shares)       2,086              
Issuance of common stock upon exercise of stock options 22,289         22,289          
Stock-based compensation expense 76,616         76,616          
Vesting of restricted stock units (in shares)         3,548            
Vesting of restricted stock units     0   $ 1     (1)      
Tax withholding on vesting of restricted stock units (in shares)       (81)              
Tax withholding on vesting of restricted stock units (2,106)         (2,106)          
Forfeiture of restricted stock (in shares)       (25)              
Forfeiture of restricted stock 0                    
Common stock issued under employee stock purchase plan (in shares)       2,180              
Common stock issued under employee stock purchase plan 18,915         18,915          
Repurchases of common stock (in shares)       (2,361)              
Repurchases of common stock (56,215)         (56,215)          
Other comprehensive loss (3,788)               (3,788)    
Net loss (28,731)                 (28,731)  
Ending balance (in shares) at Oct. 31, 2021       290,081              
Ending balance at Oct. 31, 2021 724,424     $ 29   2,447,916     (307) (1,723,214)  
Beginning balance (in shares) at Feb. 06, 2022       292,633              
Beginning balance at Feb. 06, 2022 754,336 $ (35,127)   $ 29   2,470,943 $ (133,265)   (8,365) (1,708,271) $ 98,138
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Issuance of common stock upon exercise of stock options (in shares)       2,316              
Issuance of common stock upon exercise of stock options 19,139         19,139          
Stock-based compensation expense 246,677         246,677          
Vesting of restricted stock units (in shares)         10,632            
Vesting of restricted stock units     0   $ 1     $ (1)      
Tax withholding on vesting of restricted stock units (in shares)       (517)              
Tax withholding on vesting of restricted stock units (16,130)         (16,130)          
Common stock issued under employee stock purchase plan (in shares)       3,014              
Common stock issued under employee stock purchase plan 39,965         39,965          
Repurchases of common stock (in shares)       (5,409)              
Repurchases of common stock (151,564)         (151,564)          
Other comprehensive loss (15,388)               (15,388)    
Net loss (1,400)                 (1,400)  
Ending balance (in shares) at Nov. 06, 2022       302,669              
Ending balance at Nov. 06, 2022 840,508     $ 30   2,475,764     (23,753) (1,611,533)  
Beginning balance (in shares) at Aug. 07, 2022       298,801              
Beginning balance at Aug. 07, 2022 761,358     $ 30   2,392,173     (20,099) (1,610,746)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Issuance of common stock upon exercise of stock options (in shares)       459              
Issuance of common stock upon exercise of stock options 3,878         3,878          
Stock-based compensation expense 86,852         86,852          
Vesting of restricted stock units (in shares)         3,482            
Vesting of restricted stock units     $ 0                
Tax withholding on vesting of restricted stock units (in shares)       (112)              
Tax withholding on vesting of restricted stock units (3,143)         (3,143)          
Common stock issued under employee stock purchase plan (in shares)       927              
Common stock issued under employee stock purchase plan 20,569         20,569          
Repurchases of common stock (in shares)       (888)              
Repurchases of common stock (24,565)         (24,565)          
Other comprehensive loss (3,654)               (3,654)    
Net loss (787)                 (787)  
Ending balance (in shares) at Nov. 06, 2022       302,669              
Ending balance at Nov. 06, 2022 $ 840,508     $ 30   $ 2,475,764     $ (23,753) $ (1,611,533)  
v3.22.2.2
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 9 Months Ended
Nov. 06, 2022
Oct. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (1,400) $ (158,202)
Adjustments to reconcile net loss to net cash provided by operating activities:    
Depreciation and amortization 72,268 59,605
Amortization of debt discount and debt issuance costs 2,406 23,011
Stock-based compensation expense 245,114 207,763
Impairment of long-lived assets 0 471
Other 67 8,576
Changes in operating assets and liabilities, net of effect of acquisition:    
Accounts receivable, net 106,216 106,788
Inventory (16,341) 38
Deferred commissions 11,175 (20,395)
Prepaid expenses and other assets (56,164) (12,283)
Operating lease right-of-use assets 26,073 22,061
Accounts payable 22,536 (14,256)
Accrued compensation and other liabilities (17,739) (35,251)
Operating lease liabilities (28,339) (22,094)
Deferred revenue 168,336 106,054
Net cash provided by operating activities 534,208 271,886
CASH FLOWS FROM INVESTING ACTIVITIES    
Purchases of property and equipment (97,910) (81,217)
Acquisition, net of cash acquired (1,989) 0
Purchases of marketable securities (92,129) (502,438)
Sales of marketable securities 0 146,934
Maturities of marketable securities 352,295 303,158
Other 0 (600)
Net cash (used in) provided by investing activities 160,267 (134,163)
CASH FLOWS FROM FINANCING ACTIVITIES    
Net proceeds from exercise of stock options 19,131 33,743
Proceeds from issuance of common stock under employee stock purchase plan 39,965 36,641
Principal payments on borrowings and finance lease obligations (256,145) (1,284)
Tax withholding on vesting of equity awards (16,130) (8,670)
Repurchases of common stock (151,564) (130,608)
Net cash used in financing activities (364,743) (70,178)
Net increase in cash, cash equivalents and restricted cash 329,732 67,545
Cash, cash equivalents and restricted cash, beginning of period 476,743 347,691
Cash, cash equivalents and restricted cash, end of period 806,475 415,236
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD    
Cash and cash equivalents 795,931 404,692
Restricted cash 10,544 10,544
Cash, cash equivalents and restricted cash, end of period 806,475 415,236
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION    
Cash paid for interest 1,151 3,932
Cash paid for income taxes 8,452 10,051
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING INFORMATION    
Property and equipment purchased but not yet paid $ 19,976 $ 6,413
v3.22.2.2
Business Overview
 9 Months Ended
Nov. 06, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Business Overview Business OverviewPure Storage, Inc. (the Company, we, us, or other similar pronouns) was originally incorporated in the state of Delaware in October 2009 under the name OS76, Inc. In January 2010, we changed our name to Pure Storage, Inc. We are headquartered in Mountain View, California and have wholly owned subsidiaries throughout the world.
v3.22.2.2
Financial Instruments
 9 Months Ended
Nov. 06, 2022
Investments, Debt and Equity Securities [Abstract]  
Financial Instruments Financial Instruments
Fair Value Measurements
We define fair value as the exchange price that would be received from sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We measure our financial assets and liabilities at fair value at each reporting period using a fair value hierarchy which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement.
Three levels of inputs may be used to measure fair value:
•Level 1 - Observable inputs are unadjusted quoted prices in active markets for identical assets or liabilities;
•Level 2 - Observable inputs are quoted prices for similar assets and liabilities in active markets or inputs other than quoted prices that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments; and
•Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. These inputs are based on our own assumptions used to measure assets and liabilities at fair value and require significant management judgment or estimation.
Cash Equivalents, Marketable Securities and Restricted Cash
We measure our cash equivalents, marketable securities, and restricted cash at fair value on a recurring basis. We classify our cash equivalents, marketable securities and restricted cash within Level 1 or Level 2 because they are valued using either quoted market prices or inputs other than quoted prices which are directly or indirectly observable in the market, including readily-available pricing sources for the identical underlying security which may not be actively traded. Our fixed income available-for-sale securities consist of high quality, investment grade securities from diverse issuers. The valuation techniques used to measure the fair value of our marketable securities were derived from non-binding market consensus prices that are corroborated by observable market data or quoted market prices for similar instruments. The following tables summarize our cash equivalents, marketable securities and restricted cash by significant investment categories and their classification within the valuation hierarchy at the end of fiscal 2022 and the third quarter of fiscal 2023 (in thousands):
 
 At the End of Fiscal 2022
 Amortized
Cost		Gross Unrealized
Gains		Gross Unrealized
Losses		Fair
Value		Cash EquivalentsMarketable SecuritiesRestricted Cash
Level 1      
Money market accounts$— $— $— $29,275 $18,731 $— $10,544 
Level 2      
U.S. government treasury notes336,303 512 (2,176)334,639 — 334,639 — 
U.S. government agencies49,153 49 (193)49,009 — 49,009 — 
Corporate debt securities491,728 384 (4,731)487,381 200 487,181 — 
Foreign government bonds12,333 37 (17)12,353 — 12,353 — 
Asset-backed securities60,361 111 (453)60,019 — 60,019 — 
Municipal bonds3,950 — (78)3,872 — 3,872 — 
Total$953,828 $1,093 $(7,648)$976,548 $18,931 $947,073 $10,544 


 
At the End of the Third Quarter of Fiscal 2023
 Amortized
Cost		Gross Unrealized
Gains		Gross Unrealized
Losses		Fair
Value		Cash EquivalentsMarketable
Securities		Restricted Cash
Level 1
Money market accounts$— $— $— $297,756 $287,212 $— $10,544 
Level 2       
U.S. government treasury notes235,143 1 (5,901)229,243 — 229,243 — 
U.S. government agencies28,792 1 (496)28,297 — 28,297 — 
Corporate debt securities382,577 — (13,876)368,701 — 368,701 — 
Foreign government bonds4,798 — (79)4,719 — 4,719 — 
Asset-backed securities35,855 — (1,374)34,481 — 34,481 — 
Municipal bonds3,950 — (218)3,732 — 3,732 — 
Total$691,115 $2 $(21,944)$966,929 $287,212 $669,173 $10,544 
 
The amortized cost and estimated fair value of our marketable securities are shown below by contractual maturity (in thousands):
 
At the End of the Third Quarter of Fiscal 2023
 Amortized CostFair Value
Due within one year$362,127 $355,765 
Due in one to five years328,988 313,408 
Total$691,115 $669,173 
 
Unrealized losses on our debt securities have not been recorded into income because we do not intend to sell nor is it more likely than not that we will be required to sell these investments prior to recovery of their amortized cost basis. The decline in fair value of our debt securities is largely due to the rising interest rate environment driven by current market conditions that has resulted in higher credit spreads. The credit ratings associated with our debt securities are mostly unchanged, are highly rated and the issuers continue to make timely principal and interest payments. As a result, there were no credit or non-credit impairment charges recorded in the third quarter and the first three quarters of fiscal 2022 and 2023.
The following table presents gross unrealized losses and fair values for those investments that were in a continuous unrealized loss position at the end of fiscal 2022 and the third quarter of fiscal 2023, aggregated by investment category (in thousands):
At the End of Fiscal 2022
Less than 12 monthsGreater than 12 monthsTotal
Fair
Value		Unrealized
Loss		Fair
Value		Unrealized
Loss		Fair
Value		Unrealized
Loss
U.S. government treasury notes$193,359 $(2,176)$— $— $193,359 $(2,176)
U.S. government agencies24,388 (193)— — 24,388 (193)
Corporate debt securities374,223 (4,708)1,182 (23)375,405 (4,731)
Foreign government bonds4,098 (17)— — 4,098 (17)
Asset-backed securities37,608 (453)— — 37,608 (453)
Municipal bonds3,872 (78)— — 3,872 (78)
Total$637,548 $(7,625)$1,182 $(23)$638,730 $(7,648)

At the End of the Third Quarter of Fiscal 2023
 Less than 12 monthsGreater than 12 monthsTotal
 Fair
Value		Unrealized
Loss		Fair
Value		Unrealized
Loss		Fair
Value		Unrealized
Loss
U.S. government treasury notes$133,188 $(2,603)$94,973 $(3,298)$228,161 $(5,901)
U.S. government agencies20,403 (390)2,893 (106)23,296 (496)
Corporate debt securities186,166 (5,289)182,534 (8,587)368,700 (13,876)
Foreign government bonds4,178 (30)541 (49)4,719 (79)
Asset-backed securities16,325 (197)18,156 (1,177)34,481 (1,374)
Municipal bonds1,401 (108)2,331 (110)3,732 (218)
Total$361,661 $(8,617)$301,428 $(13,327)$663,089 $(21,944)
 
Realized gains or losses on sale of marketable securities were not significant for all periods presented.
Fair Value Measurements of Other Financial Instruments
We measure the fair value of our Notes on a quarterly basis. We consider the fair value of the Notes at the end of the third quarter of fiscal 2023 to be a Level 2 measurement due to its limited trading activity. Refer to Note 6 for the carrying amount and estimated fair value of our Notes at the end of the third quarter of fiscal 2023.
v3.22.2.2
Basis of Presentation and Summary of Significant Accounting Policies
 9 Months Ended
Nov. 06, 2022
Accounting Policies [Abstract]  
Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Summary of Significant Accounting Policies
Basis of Presentation and Principles of Consolidation
We operate using a 52/53 week fiscal year ending on the first Sunday after January 30, which for fiscal 2022 was February 6, 2022 and for fiscal 2023 will be February 5, 2023. The third quarter of fiscal 2022 and 2023 ended on October 31, 2021 and November 6, 2022. Unless otherwise stated, all dates refer to our fiscal year and fiscal quarters.
The condensed consolidated financial statements include the accounts of the Company and our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Unaudited Interim Consolidated Financial Information
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) and applicable rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for fiscal 2022.
In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, comprehensive loss and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year 2023 or any future period.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and accompanying notes. Actual results could differ from these estimates and assumptions due to risks and uncertainties. Such estimates include, but are not limited to, the determination of standalone selling price for revenue arrangements with multiple performance obligations when the price at which the performance obligation sold separately or observable past transactions are not available, useful lives of intangible assets and property and equipment, the period of benefit for deferred contract costs for commissions, stock-based compensation, provision for income taxes including related reserves, fair value of equity assumed, intangible and tangible assets acquired and liabilities assumed for business combinations. Management bases its estimates on historical experience and on various other assumptions which management believes to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.
Restricted Cash
Restricted cash is comprised of cash collateral for letters of credit related to our leases and for a vendor credit card program. At the end of fiscal 2022 and the third quarter of fiscal 2023, we had restricted cash of $10.5 million.
Recently Adopted Accounting Pronouncements
In October 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires entities to apply revenue guidance to recognize and measure contract assets and contract liabilities acquired in a business combination on the acquisition date, instead of measuring them at fair value. We early adopted this guidance in the second quarter of fiscal 2023 on a prospective basis. The adoption of this standard did not have a material impact on our condensed consolidated financial statements.
In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity, which simplifies the accounting for certain convertible instruments, amends guidance on derivative scope exceptions for contracts in an entity's own equity, and requires the use of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share (EPS) which results in the inclusion of the effect of share settlement for instruments that may be settled in cash or shares. We adopted the standard as of February 7, 2022 using the modified retrospective basis. Adoption resulted in an adjustment of $133.3 million to reclassify the remaining balance of the conversion feature recorded in additional paid-in capital to convertible senior notes (the Notes) of $35.2 million and accumulated deficit of $98.1 million on the condensed consolidated balance sheet. Accordingly, we no longer carry an equity component of the Notes. There was no impact to diluted EPS as the inclusion of potential shares of common stock related to the Notes was anti-dilutive. For further information, see Note 6, Debt, and Note 11, Net Loss per Share Attributable to Common Stockholders.
v3.22.2.2
Balance Sheet Components
 9 Months Ended
Nov. 06, 2022
Balance Sheet Components Disclosure [Abstract]  
Balance Sheet Components Balance Sheet Components
Inventory
Inventory consists of the following (in thousands):
At the End of
Fiscal 2022
Third Quarter of Fiscal 2023
Raw materials$15,734 $24,471 
Finished goods23,208 35,245 
Inventory$38,942 $59,716 
Property and Equipment, Net
Property and equipment, net consists of the following (in thousands):
 
At the End of
 Fiscal 2022
Third Quarter of Fiscal 2023
Test equipment$266,672 $306,088 
Computer equipment and software206,053 249,148 
Furniture and fixtures8,652 9,522 
Leasehold improvements47,443 58,931 
Capitalized software development costs8,528 14,795 
Total property and equipment537,348 638,484 
Less: accumulated depreciation and amortization(342,066)(389,878)
Property and equipment, net$195,282 $248,606 

Depreciation and amortization expense related to property and equipment was $17.5 million and $22.2 million for the third quarter of fiscal 2022 and 2023, and $47.2 million and $61.0 million for the first three quarters of fiscal 2022 and 2023.
Intangible Assets, Net
Intangible assets, net consist of the following (in thousands):
 
At the End of
 Fiscal 2022
Third Quarter of Fiscal 2023
Gross Carrying ValueAccumulated AmortizationNet Carrying AmountGross Carrying ValueAccumulated AmortizationNet Carrying Amount
Technology patents$19,125 $(13,544)$5,581 $19,125 $(14,505)$4,620 
Developed technology80,166 (30,304)49,862 83,211 (40,061)43,150 
Customer relationships6,459 (1,246)5,213 6,459 (1,936)4,523 
Trade name3,623 (1,633)1,990 3,623 (2,537)1,086 
Intangible assets, net$109,373 $(46,727)$62,646 $112,418 $(59,039)$53,379 
 
 Intangible assets amortization expense was $4.0 million and $4.1 million for the third quarter of fiscal 2022 and 2023, and $12.4 million and $12.3 million for the first three quarters of fiscal 2022 and 2023. At the end of the third quarter of fiscal 2023, the weighted-average remaining amortization period was 1.7 years for technology patents, 3.3 years for developed technology, 4.9 years for customer relationships, and 0.9 year for trade name. We record amortization of technology patents in general and administrative expenses due to their defensive nature, developed technology in cost of product revenue, and customer relationships and trade name in sales and marketing expenses in the condensed consolidated statements of operations.
At the end of the third quarter of fiscal 2023, future expected amortization expense for intangible assets is as follows (in thousands):
Fiscal Years EndingEstimated Future
Amortization Expense
Remainder of 2023$4,157 
202416,210 
202515,425 
202612,830 
20273,107 
Thereafter1,650 
Total$53,379 
Goodwill
The change in the carrying amount of goodwill is as follows (in thousands):
Amount
Balance at the end of fiscal 2022
$358,736 
Goodwill acquired2,691 
Balance at the end of the third quarter of fiscal 2023
$361,427 
There were no impairments to goodwill during the third quarter and first three quarters of fiscal 2022 and 2023.
Accrued Expenses and Other Liabilities
Accrued expenses and other liabilities consist of the following (in thousands):
At the End of
 Fiscal 2022
Third Quarter of Fiscal 2023
Taxes payable $6,312 $10,249 
Accrued marketing13,257 13,543 
Accrued cloud and outside services6,135 4,614 
Supply chain-related accruals6,991 25,958 
Accrued service logistics and professional services6,244 6,564 
Acquisition earn-out and deferred consideration5,211 2,693 
Customer deposits from contracts with customers10,409 13,653 
Other accrued liabilities23,952 31,698 
Total accrued expenses and other liabilities$78,511 $108,972 
v3.22.2.2
Deferred Revenue and Commissions
 9 Months Ended
Nov. 06, 2022
Revenue from Contract with Customer [Abstract]  
Deferred Revenue and Commissions Deferred Revenue and Commissions
Deferred Commissions
Deferred commissions consist of incremental costs paid to our sales force to obtain customer contracts.
Changes in total deferred commissions during the periods presented are as follows (in thousands):
Third Quarter of Fiscal
First Three Quarters of Fiscal
2022202320222023
Beginning balance
$195,965 $235,681 $187,924 $246,307 
Additions49,822 35,827 121,802 98,949 
Recognition of deferred commissions(37,467)(36,376)(101,406)(110,124)
Ending balance$208,320 $235,132 $208,320 $235,132 
Of the $235.1 million total deferred commissions balance at the end of the third quarter of fiscal 2023, we expect to recognize approximately 30% as commission expense over the next 12 months and the remainder thereafter.
There was no impairment related to capitalized commissions for the third quarter and first three quarters of fiscal 2022 and 2023.
Deferred Revenue
Deferred revenue primarily consists of amounts that have been invoiced but have not yet been recognized as revenue including performance obligations pertaining to subscription services.
Changes in total deferred revenue during the periods presented are as follows (in thousands):
Third Quarter of Fiscal
First Three Quarters of Fiscal
2022202320222023
Beginning balance
$909,814 $1,178,691 $843,697 $1,079,872 
Additions208,542 313,279 611,006 854,535 
Recognition of deferred revenue(168,606)(243,751)(504,953)(686,188)
Ending balance$949,750 $1,248,219 $949,750 $1,248,219 
Revenue recognized during the third quarter of fiscal 2022 and 2023 from deferred revenue at the beginning of each respective period was $163.2 million and $216.8 million. Revenue recognized during the first three quarters of fiscal 2022 and 2023 from deferred revenue at the beginning of each respective period was $356.2 million and $466.0 million.
Remaining Performance Obligations
Total remaining performance obligations (RPO) which is contracted but not recognized revenue was $1.6 billion at the end of the third quarter of fiscal 2023. RPO consists of both deferred revenue and non-cancelable amounts that are expected to be invoiced and recognized as revenue in future periods. Product orders are generally cancelable until delivery has occurred, and as such unfulfilled product orders are excluded from RPO. Of the $1.6 billion contracted but not recognized revenue at the end of the third quarter of fiscal 2023, we expect to recognize approximately 47% over the next 12 months, and the remainder thereafter.
v3.22.2.2
Debt
 9 Months Ended
Nov. 06, 2022
Debt Disclosure [Abstract]  
Debt Debt
Convertible Senior Notes
In April 2018, we issued $575.0 million in principal amount of 0.125% convertible senior notes due 2023, in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act and received proceeds of $562.1 million, after deducting the underwriters’ discounts and commissions. The Notes are governed by an indenture (the Indenture) between us, as the issuer, and U.S. Bank National Association, as trustee. The Notes are our senior unsecured obligations. The Indenture does not contain any financial covenants or restrictions on the payments of dividends, the incurrence of indebtedness, or the issuance or repurchase of securities by us or any of our subsidiaries. The Notes will mature on April 15, 2023. Interest is payable semi-annually in arrears on April 15 and October 15 of each year.
The Notes are convertible for up to 21,884,155 shares of our common stock at an initial conversion rate of approximately 38.0594 shares of common stock per $1,000 principal amount, which is equal to an initial conversion price of approximately $26.27 per share of common stock, subject to adjustment. On October 14, 2022, we provided notice to the holders electing to settle all conversions on or after October 15, 2022 with cash up to the principal amount of the Notes and shares for any excess conversion value.
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.
As described in Note 2, we adopted ASU 2020-06 effective February 7, 2022 using the modified retrospective method, under which financial results reported in prior periods were not adjusted. Prior to the adoption of this standard, we separated the Notes into liability and equity components. The carrying amount of the liability component was determined by measuring the fair value of a similar debt instrument that does not have an associated conversion feature. The carrying amount of the equity component representing the conversion option was calculated by deducting the fair value of the liability component from the principal amount of the Notes as a whole and determined to be $136.3 million. This amount was recorded in additional paid-in capital with the offset representing a debt discount that was amortized to interest expense over the term of the Notes using the effective interest method. Total debt issuance costs incurred of $12.9 million were allocated to the liability and equity components based on their relative carrying amounts, of which $9.8 million was allocated to the liability component as a reduction to the Notes and $3.1 million was allocated to the equity component of the Notes as a reduction to additional paid-in capital. The issuance costs attributable to the liability component was also being amortized to interest method over the term of the Notes using the effective interest method. Upon adoption of ASU 2020-06, we combined the liability and equity components assuming that the instrument was accounted for as a single liability from inception to the date of adoption, resulting in the elimination of the debt discount. Similarly, we combined the liability and equity components of the debt issuance costs, the result of which is presented as a reduction to the Notes and being amortized to interest expense using the effective interest method over the remaining term of the Notes.
The Notes consisted of the following (in thousands):
At the End of
Fiscal 2022
Third Quarter of Fiscal 2023
Liability:
Principal$575,000 $575,000 
Less: debt discount, net of amortization(35,641)— 
Less: debt issuance costs, net of amortization(2,580)(1,145)
Net carrying amount of the Notes$536,779 $573,855 
Stockholders' equity recorded at issuance:
Allocated value of the conversion feature$136,333 $— 
Less: debt issuance costs(3,068)— 
Additional paid-in capital$133,265 $— 
The total estimated fair value of the Notes at the end of the third quarter of fiscal 2023 was $691.9 million. The fair value was determined based on the closing trading price per $100 of the Notes as of the last day of trading for the period. The fair value of the Notes is primarily affected by the trading price of our common stock and market interest rates. Based on the closing price of our common stock of $30.34 on the last day of the third quarter of fiscal 2023, the if-converted value of the Notes of $664.0 million was greater than its principal amount. At the end of the third quarter of fiscal 2023, the remaining term of the Notes is approximately five months.
The following table sets forth total interest expense recognized related to the Notes for the third quarter and first three quarters of fiscal 2022 and 2023 (in thousands):
Third Quarter of Fiscal
First Three Quarters of Fiscal
2022202320222023
Amortization of debt discount$7,184 $— $21,029 $— 
Amortization of debt issuance costs520 650 1,523 1,947 
Total amortization of debt discount and debt issuance costs7,704 650 22,552 1,947 
Contractual interest expense181 179 537 537 
Total interest expense related to the Notes$7,885 $829 $23,089 $2,484 
Effective interest rate of the liability component5.6 %0.6 %5.6 %0.6 %

In connection with the offering of the Notes, we paid $64.6 million to enter into capped call transactions with certain of the underwriters and their affiliates (the Capped Calls), whereby we have the option to purchase up to a total of 21,884,155 shares of our common stock to offset the dilution and/or any cash payments we are required to make in excess of the principal amount upon conversion of the Notes at maturity, with such offset subject to a cap of $39.66 per share (which represents a premium of 100% over the last reported sales price of our common stock on April 4, 2018), subject to certain adjustments (the Cap Price). However, for conversions prior to maturity, the Capped Calls would be settled at their fair value, which may not completely offset, and may be substantially less than, the value of the consideration in excess of the principal amount of the Notes delivered upon such conversion. The cost of the Capped Calls was accounted for as a reduction to additional paid-in capital on the condensed consolidated balance sheet.
Impact on Earnings Per Share
Subsequent to the adoption of ASU 2020-06, we compute the potentially dilutive shares of common stock related to the Notes for periods we report net income using the if-converted method. Upon conversion at maturity, there will be no economic dilution from the Notes until the average market price of our common stock exceeds the Cap Price of $39.66 per share as exercise of the Capped Calls would offset any dilution from the Notes from the conversion price up to the Cap Price. Capped Calls are excluded from the calculation of diluted earnings per share, as they would be anti-dilutive.
Revolving Credit Facility
In August 2020, we entered into a Credit Agreement with a consortium of financial institutions and lenders that provides for a five-year, senior secured revolving credit facility of $300.0 million (Credit Facility). Proceeds from the Credit Facility may be used for general corporate purposes and working capital. The Credit Facility expires, absent default or early termination by us, on the earlier of (i) August 24, 2025 or (ii) 91 days prior to the stated maturity of the Notes unless, on such date and each subsequent day until the Notes are paid in full, the sum of our cash, cash equivalents and marketable securities and the aggregate unused commitments then available to us exceed $625.0 million.
The annual interest rates applicable to loans under the Credit Facility are, at our option, equal to either a base rate plus a margin ranging from 0.50% to 1.25% or LIBOR (based on one, three or six-month interest periods), subject to a floor of 0%, plus a margin ranging from 1.50% to 2.25%. Interest on revolving loans is payable quarterly in arrears with respect to loans based on the base rate and at the end of an interest period in the case of loans based on LIBOR (or at each three-month interval if the interest period is longer than three months). We are also required to pay a commitment fee on the unused portion of the commitments ranging from 0.25% to 0.40% per annum, payable quarterly in arrears.
In February 2022, we repaid, in full, the $250.0 million outstanding under the Credit Facility. Prior to repayment, the outstanding loan bore weighted-average interest at the one-month LIBOR of approximately 1.59% and 1.60% resulting in interest expense of $1.0 million and $3.0 million during the third quarter and first three quarters of fiscal 2022 and 1.61% resulting in interest expense of $0.3 million during the first quarter of fiscal 2023.
Loans under the Credit Facility are collateralized by substantially all of our assets and subject to certain restrictions and two financial ratios measured as of the last day of each fiscal quarter: a Consolidated Leverage Ratio not to exceed 4.5:1 and an Interest Coverage Ratio not to be less than 3:1. We were in compliance with all covenants under the Credit Facility at the end of the third quarter of fiscal 2023.
v3.22.2.2
Commitments and Contingencies
 9 Months Ended
Nov. 06, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Letters of Credit
At the end of fiscal 2022 and the third quarter of fiscal 2023, we had outstanding letters of credit in the aggregate amount of $6.7 million and $8.0 million in connection with our facility leases. The letters of credit are collateralized by either restricted cash or the Credit Facility and mature on various dates through September 2030.
Legal Matters
From time to time, we have become involved in claims and other legal matters arising in the normal course of business. We investigate these claims as they arise. Although claims are inherently unpredictable, we currently are not aware of any matters that we expect to have a material adverse effect on our business, financial position, results of operations or cash flows. Accordingly, no material loss contingency has been recorded on our condensed consolidated balance sheet as of the end of the third quarter of fiscal 2023.
Indemnification
Our arrangements generally include certain provisions for indemnifying customers against liabilities if our products or services infringe a third party’s intellectual property rights. Other guarantees or indemnification arrangements include guarantees of product and service performance and standby letters of credit for lease facilities. It is not possible to determine the maximum potential amount under these indemnification obligations due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. To date, we have not incurred any material costs as a result of such obligations and have not accrued any liabilities related to such obligations in the condensed consolidated financial statements. In addition, we indemnify our officers, directors and certain key employees while they are serving in good faith in their respective capacities. To date, there have been no claims under any indemnification provisions.
v3.22.2.2
Leases
 9 Months Ended
Nov. 06, 2022
Leases [Abstract]  
Leases Leases
We lease office facilities under non-cancelable operating lease agreements expiring through July 2032. Our lease agreements do not contain any material residual value guarantees or restrictive covenants.
In June 2022, we entered into an eight-year sublease through July 2030 for a new headquarters facility in Santa Clara, California with total lease payments of $100.2 million that include rent escalation and abatement clauses. The sublease of space with total lease payments of $89.4 million commenced in August 2022. Additional space with lease payments of $10.8 million will commence in May 2024 and end in July 2030 and therefore are excluded from our future lease payments disclosure below.
We also lease certain engineering test equipment under financing agreements. These finance leases are three years and contain a bargain purchase option at the end of the respective lease term. It is reasonably certain that the bargain purchase option will be exercised.
The components of lease costs during the periods presented were as follows (in thousands):
Third Quarter of Fiscal
First Three Quarters of Fiscal
2022202320222023
Fixed operating lease cost$9,652 $13,412 $28,717 $34,483 
Variable lease cost (1)
2,851 931 6,499 4,753 
Short-term lease cost (12 months or less)851 1,096 2,984 2,712 
Finance lease cost:
Amortization of finance lease right-of-use assets91 926 152 1,929 
Interest on finance lease liabilities13 98 18 197 
Total finance lease cost$104 $1,024 $170 $2,126 
Total lease cost$13,458 $16,463 $38,370 $44,074 
____________________________________
(1) Variable lease cost predominantly included common area maintenance charges.
Supplemental information related to leases is as follows (in thousands):
At the End of
Fiscal 2022
Third Quarter of Fiscal 2023
Operating leases:
Weighted-average remaining lease term (in years)4.55.5
Weighted-average discount rate5.7 %6.1 %
Finance leases:
Finance lease right-of-use assets, gross(1)
$3,577 $17,597 
     Accumulated amortization(1)
(384)(2,313)
Finance lease right-of-use assets, net(1)
$3,193 $15,284 
Finance lease liabilities, current(2)
1,035 5,367 
Finance lease liabilities, non-current(3)
1,487 5,378 
Total finance lease liabilities$2,522 $10,745 
Weighted-average remaining lease term (in years)3.63.5
Weighted-average discount rate2.7 %4.9 %
____________________________________
(1) Included in the condensed consolidated balance sheets within property and equipment, net.
(2) Included in the condensed consolidated balance sheets within accrued expenses and other liabilities.
(3) Included in the condensed consolidated balance sheets within other liabilities, non-current.
Supplemental cash flow information related to leases is as follows (in thousands):
First Three Quarters of Fiscal
20222023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows for operating leases$27,379 $38,853 
Financing cash outflows for finance leases$414 $5,323 
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases$3,594 $77,986 
Finance leases$3,110 $14,019 
Future lease payments under our non-cancelable leases at the end of the third quarter of fiscal 2023 were as follows (in thousands):
Fiscal Years EndingOperating LeasesFinance Leases
The remainder of 2023$11,256 $681 
202442,783 5,839 
202544,900 4,728 
202634,261 183 
202720,968 — 
Thereafter65,336 — 
Total future lease payments219,504 11,431 
Less: imputed interest(41,280)(686)
Present value of total lease liabilities$178,224 $10,745 
v3.22.2.2
Stockholders' Equity
 9 Months Ended
Nov. 06, 2022
Equity [Abstract]  
Stockholders' Equity Stockholders’ Equity
Preferred Stock
We have 20,000,000 authorized shares of undesignated preferred stock, the rights, preferences and privileges of which may be designated from time to time by our board of directors. At the end of the third quarter of fiscal 2023, there were no shares of preferred stock issued or outstanding.
Class A and Class B Common Stock
We have two classes of authorized common stock, Class A common stock, which we refer to as our "common stock", and Class B common stock. At the end of the third quarter of fiscal 2023, we had 2,000,000,000 authorized shares of Class A common stock and 250,000,000 authorized shares of Class B common stock, with each class having a par value of $0.0001 per share. At the end of the third quarter of fiscal 2023, 302,668,981 shares of Class A common stock were issued and outstanding.
Share Repurchase Program
In March 2022, our board of directors authorized the repurchase of up to an additional $250.0 million of our common stock. During the third quarter of fiscal 2023, we repurchased and retired 888,433 shares of common stock at an average purchase price of $27.63 per share for an aggregate repurchase price of $24.6 million. During the first three quarters of fiscal 2023, we repurchased and retired 5,410,150 shares of common stock at an average purchase price of $27.99 per share for an aggregate repurchase price of $151.5 million. At the end of the third quarter of fiscal 2023, $98.5 million remained available for future share repurchases under our current repurchase authorization.
v3.22.2.2
Equity Incentive Plans
 9 Months Ended
Nov. 06, 2022
Share-Based Payment Arrangement [Abstract]  
Equity Incentive Plans Equity Incentive Plans
Equity Incentive Plans
We maintain two equity incentive plans: the 2009 Equity Incentive Plan (the 2009 Plan) and the 2015 Equity Incentive Plan (the 2015 Plan). The 2015 Plan serves as the successor to our 2009 Plan and provides for grants of incentive stock options to our employees and non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units (RSUs), performance stock awards, performance cash awards, and other forms of stock awards to our employees, directors and consultants. Our equity awards generally vest over a two to four year period and expire no later than ten years from the date of grant.
We net-share settle equity awards held by certain employees by withholding shares upon vesting to satisfy tax withholding obligations. The shares withheld to satisfy employee tax withholding obligations are returned to our 2015 Plan and will be available for future issuance. Payments for employees’ tax obligations to the tax authorities are recognized as a reduction to additional paid-in capital and reflected as a financing activity in our condensed consolidated statements of cash flows.
2015 Amended and Restated Employee Stock Purchase Plan
Under our Amended and Restated 2015 Employee Stock Purchase Plan (2015 ESPP), our board of directors (or a committee thereof) has the authority to establish the length and terms of the offering periods and purchase periods and the purchase price of the shares of common stock which may be purchased under the plan. The current offering terms allow eligible employees to purchase shares of our common stock at a discount through payroll deductions of up to 30% of their eligible compensation, subject to a cap of 3,000 shares on any purchase date, a dollar cap of $7,500 per purchase period, or $25,000 in any calendar year (as determined under applicable tax rules). The current terms also allow for a 24-month offering period beginning March 16th and September 16th of each year, with each offering period consisting of four 6-month purchase periods, subject to a reset provision. Further, currently, on each purchase date, eligible employees may purchase our common stock at a price per share equal to 85% of the lesser of the fair market value of our common stock (1) on the first trading day of the applicable offering period or (2) the purchase date.
Under the reset provision currently authorized, if the closing stock price on the offering date of a new offering falls below the closing stock price on the offering date of an ongoing offering, the ongoing offering would terminate immediately following the purchase of ESPP shares on the purchase date immediately preceding the new offering and participants in the terminated offering would automatically be enrolled in the new offering (ESPP reset), resulting in a modification charge to be recognized over the new offering period. An ESPP reset occurred during the third quarter of fiscal 2023, and $10.4 million relating to this modification is being recognized over the new offering period ending September 15, 2024.
Stock-based compensation expense related to our 2015 ESPP was $8.9 million and $5.5 million during the third quarter of fiscal 2022 and 2023, and $25.3 million and $17.3 million during the first three quarters of fiscal 2022 and 2023. At the end of the third quarter of fiscal 2023, total unrecognized stock-based compensation cost related to our 2015 ESPP was $37.8 million, which is expected to be recognized over a weighted-average period of 1.8 years.
Stock Options
A summary of the stock option activity under our equity incentive plans and related information is as follows:
 
 Options Outstanding
 Number of
Shares		Weighted-
Average
Exercise Price		Weighted-
Average
Remaining
Contractual Life (In Years)		Aggregate
Intrinsic
Value (in thousands)
Balance at the end of fiscal 202212,268,938 $10.25 3.5$198,266 
Options exercised(2,316,226)8.26   
Options forfeited(11,137)1.82   
Balance at the end of the third quarter of fiscal 2023
9,941,575 $10.73 2.8$195,398 
Vested and exercisable at the end of the third quarter of fiscal 2023
9,656,378 $10.94 2.7$187,290 
 
The aggregate intrinsic value of options vested and exercisable at the end of the third quarter of fiscal 2023 is calculated based on the difference between the exercise price and the closing price of $30.34 of our common stock on the last day of the third quarter of fiscal 2023.
Stock-based compensation expense recognized related to stock options was $1.7 million and $1.2 million during the third quarter of fiscal 2022 and 2023, and $6.0 million and $4.0 million during the first three quarters of fiscal 2022 and 2023.
At the end of the third quarter of fiscal 2023, total unrecognized employee stock-based compensation cost related to outstanding options was $3.4 million, which is expected to be recognized over a weighted-average period of 1.2 years.
RSUs and Performance RSUs (PRSUs)
A summary of the RSU and PRSU activity under our equity incentive plans and related information is as follows:
 Number of
RSUs and PRSUs Outstanding		Weighted-
Average
Grant Date
Fair Value		Aggregate
Intrinsic
Value (in thousands)
Unvested balance at the end of fiscal 202228,712,878 $19.53 $757,446 
Granted
13,297,023 29.96 
Vested(10,632,285)19.75 
Forfeited(2,950,347)21.58 
Unvested balance at the end of the third quarter of fiscal 2023
28,427,269 $24.11 $862,824 
RSUs granted during the first three quarters of fiscal 2023 include PRSUs for 1,147,187 shares of common stock, at a target percentage of 100%, with both performance and service vesting conditions. The actual PRSUs earned will range from 0% to 150% of the target number granted, contingent upon the degree to which the fiscal 2023 performance condition is met. Any portion of shares that are not earned will be canceled. In addition, during the first quarter of fiscal 2023, we issued 647,586 PRSUs and canceled 34,960 PRSUs based on the actual attainment of fiscal 2022 performance conditions for previously issued PRSUs, with these PRSUs issued subject to service condition through the remaining vesting periods.
Stock-based compensation expense recognized related to RSUs and PRSUs was $65.0 million and $80.3 million during the third quarter of fiscal 2022 and 2023, and $174.9 million and $223.8 million during the first three quarters of fiscal 2022 and 2023. At the end of the third quarter of fiscal 2023, total unrecognized employee stock-based compensation cost related to unvested RSUs and PRSUs was $620.2 million, which is expected to be recognized over a weighted-average period of 2.8 years.
Restricted Stock
A summary of the restricted stock activity under our 2015 Plan and related information is as follows:
 Number of
Restricted Stock Outstanding		Weighted-
Average
Grant Date
Fair Value		Aggregate
Intrinsic
Value (in thousands)
Unvested balance at the end of fiscal 202254,977 $20.02 $1,450 
Vested(54,977)20.02 
Forfeited— — 
Unvested balance at the end of the third quarter of fiscal 2023
— $— $— 
Stock-based compensation expense recognized related to restricted stock was not considered material for all periods presented.
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):
 
 
Third Quarter of Fiscal
First Three Quarters of Fiscal
 2022202320222023
Cost of revenue—product$1,634 $2,984 $4,547 $7,454 
Cost of revenue—subscription services5,555 5,814 15,098 16,978 
Research and development
36,797 42,390 102,343 120,482 
Sales and marketing19,151 18,441 54,317 54,740 
General and administrative12,863 17,350 31,458 45,460 
Total stock-based compensation expense$76,000 $86,979 $207,763 $245,114 
The tax benefit related to stock-based compensation expense for all periods presented was not material.
v3.22.2.2
Net Loss per Share Attributable to Common Stockholders
 9 Months Ended
Nov. 06, 2022
Earnings Per Share [Abstract]  
Net Loss per Share Attributable to Common Stockholders Net Loss per Share Attributable to Common Stockholders
Basic and diluted net loss per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities. Basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, less shares subject to repurchase. Diluted net loss per share attributable to common stockholders is computed by giving effect to all potentially dilutive common stock equivalents, including our outstanding stock options, common stock related to unvested RSUs and PRSUs, unvested restricted stock, the shares underlying the conversion option in our Notes to the extent dilutive, and common stock issuable pursuant to the ESPP. The adoption of ASU 2020-06 eliminates the treasury stock method and instead requires the application of the if-converted method to calculate the impact of our Notes on diluted EPS. All potentially dilutive common stock equivalents, including from our Notes, have been excluded from the calculation of diluted net loss per share attributable to common stockholders as their effect is anti-dilutive for all periods presented.
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):
 
Third Quarter of Fiscal
First Three Quarters of Fiscal
 2022202320222023
Net loss$(28,731)$(787)$(158,202)$(1,400)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted287,462 300,984 283,918 298,101 
Net loss per share attributable to common stockholders, basic and diluted$(0.10)$(0.00)$(0.56)$(0.00)
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):
 
 
Third Quarter of Fiscal
First Three Quarters of Fiscal
 2022202320222023
Stock options to purchase common stock15,194 10,164 16,623 10,812 
Unvested RSUs and PRSUs32,937 29,809 33,541 30,510 
Unvested restricted stock176 — 319 8 
Shares related to convertible senior notes21,884 21,884 21,884 21,884 
Shares issuable pursuant to the ESPP1,121 450 1,121 450 
Total71,312 62,307 73,488 63,664 
v3.22.2.2
Other Income (Expense), Net
 9 Months Ended
Nov. 06, 2022
Other Income and Expenses [Abstract]  
Other Income (Expense), Net Other Income (Expense), Net
Other income (expense), net consists of the following (in thousands):
Third Quarter of Fiscal
First Three Quarters of Fiscal
2022202320222023
Interest income(1)
$2,082 $3,969 $7,186 $8,280 
Interest expense(2)
(9,103)(1,117)(26,767)(3,600)
Foreign currency transactions net losses(1,729)(6,663)(2,927)(15,689)
Other income797 997 2,418 2,599 
Total other income (expense), net$(7,953)$(2,814)$(20,090)$(8,410)
____________________________________
(1) Interest income includes interest income related to our cash, cash equivalents and marketable securities and non-cash interest income (expense) related to accretion (amortization) of the discount (premium) on marketable securities.
(2) Interest expense includes non-cash interest expense related to amortization of the debt discount and debt issuance costs, contractual interest expense related to our debt and accretion of our finance lease liabilities.
v3.22.2.2
Income Taxes
 9 Months Ended
Nov. 06, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Our provision for income tax primarily reflects taxes on international operations and state income taxes. The difference between the income tax provision that would be derived by applying the statutory rate to our income (loss) before income taxes and the income tax provision recorded was primarily attributable to changes in our valuation allowance, U.S. taxes on foreign income, stock-based compensation expense and state taxes driven by Internal Revenue Code (IRC) Section 174 capitalization.
At the end of the third quarter of fiscal 2023, there were no material changes to either the nature or the amounts of the uncertain tax positions previously determined for fiscal 2022.
v3.22.2.2
Segment Information
 9 Months Ended
Nov. 06, 2022
Segment Reporting [Abstract]  
Segment Information Segment InformationOur chief operating decision maker is our Chief Executive Officer. Our chief operating decision maker reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. Accordingly, we have a single reportable segment.
Disaggregation of Revenue
The following table depicts the disaggregation of revenue by geographic area based on the billing address of our customers and is consistent with how we evaluate our financial performance (in thousands):
 
Third Quarter of Fiscal
First Three Quarters of Fiscal
 2022202320222023
United States$408,732 $492,770 $1,057,015 $1,419,440 
Rest of the world154,008 183,280 415,263 523,787 
Total revenue$562,740 $676,050 $1,472,278 $1,943,227 

Long-Lived Assets by Geographic Area
Long-lived assets, which are comprised of property and equipment, net, by geographic area are summarized as follows (in thousands):
 
At the End of
 Fiscal 2022
Third Quarter of Fiscal 2023
United States$187,228 $236,404 
Rest of the world8,054 12,202 
Total long-lived assets$195,282 $248,606 
v3.22.2.2
Basis of Presentation and Summary of Significant Accounting Policies - (Policies)
 9 Months Ended
Nov. 06, 2022
Accounting Policies [Abstract]  
Basis of Presentation and Principles of Consolidation
Basis of Presentation and Principles of Consolidation
We operate using a 52/53 week fiscal year ending on the first Sunday after January 30, which for fiscal 2022 was February 6, 2022 and for fiscal 2023 will be February 5, 2023. The third quarter of fiscal 2022 and 2023 ended on October 31, 2021 and November 6, 2022. Unless otherwise stated, all dates refer to our fiscal year and fiscal quarters.
The condensed consolidated financial statements include the accounts of the Company and our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Unaudited Interim Consolidated Financial Information
Unaudited Interim Consolidated Financial Information
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) and applicable rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for fiscal 2022.
In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, comprehensive loss and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year 2023 or any future period.
Use of Estimates
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and accompanying notes. Actual results could differ from these estimates and assumptions due to risks and uncertainties. Such estimates include, but are not limited to, the determination of standalone selling price for revenue arrangements with multiple performance obligations when the price at which the performance obligation sold separately or observable past transactions are not available, useful lives of intangible assets and property and equipment, the period of benefit for deferred contract costs for commissions, stock-based compensation, provision for income taxes including related reserves, fair value of equity assumed, intangible and tangible assets acquired and liabilities assumed for business combinations. Management bases its estimates on historical experience and on various other assumptions which management believes to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.
Restricted Cash Restricted CashRestricted cash is comprised of cash collateral for letters of credit related to our leases and for a vendor credit card program.
Recently Adopted Accounting Pronouncements
Recently Adopted Accounting Pronouncements
In October 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires entities to apply revenue guidance to recognize and measure contract assets and contract liabilities acquired in a business combination on the acquisition date, instead of measuring them at fair value. We early adopted this guidance in the second quarter of fiscal 2023 on a prospective basis. The adoption of this standard did not have a material impact on our condensed consolidated financial statements.
In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity, which simplifies the accounting for certain convertible instruments, amends guidance on derivative scope exceptions for contracts in an entity's own equity, and requires the use of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share (EPS) which results in the inclusion of the effect of share settlement for instruments that may be settled in cash or shares. We adopted the standard as of February 7, 2022 using the modified retrospective basis. Adoption resulted in an adjustment of $133.3 million to reclassify the remaining balance of the conversion feature recorded in additional paid-in capital to convertible senior notes (the Notes) of $35.2 million and accumulated deficit of $98.1 million on the condensed consolidated balance sheet. Accordingly, we no longer carry an equity component of the Notes. There was no impact to diluted EPS as the inclusion of potential shares of common stock related to the Notes was anti-dilutive.
Fair Value Measurements
Fair Value Measurements
We define fair value as the exchange price that would be received from sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We measure our financial assets and liabilities at fair value at each reporting period using a fair value hierarchy which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement.
Three levels of inputs may be used to measure fair value:
•Level 1 - Observable inputs are unadjusted quoted prices in active markets for identical assets or liabilities;
•Level 2 - Observable inputs are quoted prices for similar assets and liabilities in active markets or inputs other than quoted prices that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments; and
•Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. These inputs are based on our own assumptions used to measure assets and liabilities at fair value and require significant management judgment or estimation.
v3.22.2.2
Financial Instruments - (Tables)
 9 Months Ended
Nov. 06, 2022
Investments, Debt and Equity Securities [Abstract]  
Schedule of Cash Equivalents, Marketable Securities and Restricted Cash The following tables summarize our cash equivalents, marketable securities and restricted cash by significant investment categories and their classification within the valuation hierarchy at the end of fiscal 2022 and the third quarter of fiscal 2023 (in thousands):
 
 At the End of Fiscal 2022
 Amortized
Cost		Gross Unrealized
Gains		Gross Unrealized
Losses		Fair
Value		Cash EquivalentsMarketable SecuritiesRestricted Cash
Level 1      
Money market accounts$— $— $— $29,275 $18,731 $— $10,544 
Level 2      
U.S. government treasury notes336,303 512 (2,176)334,639 — 334,639 — 
U.S. government agencies49,153 49 (193)49,009 — 49,009 — 
Corporate debt securities491,728 384 (4,731)487,381 200 487,181 — 
Foreign government bonds12,333 37 (17)12,353 — 12,353 — 
Asset-backed securities60,361 111 (453)60,019 — 60,019 — 
Municipal bonds3,950 — (78)3,872 — 3,872 — 
Total$953,828 $1,093 $(7,648)$976,548 $18,931 $947,073 $10,544 


 
At the End of the Third Quarter of Fiscal 2023
 Amortized
Cost		Gross Unrealized
Gains		Gross Unrealized
Losses		Fair
Value		Cash EquivalentsMarketable
Securities		Restricted Cash
Level 1
Money market accounts$— $— $— $297,756 $287,212 $— $10,544 
Level 2       
U.S. government treasury notes235,143 1 (5,901)229,243 — 229,243 — 
U.S. government agencies28,792 1 (496)28,297 — 28,297 — 
Corporate debt securities382,577 — (13,876)368,701 — 368,701 — 
Foreign government bonds4,798 — (79)4,719 — 4,719 — 
Asset-backed securities35,855 — (1,374)34,481 — 34,481 — 
Municipal bonds3,950 — (218)3,732 — 3,732 — 
Total$691,115 $2 $(21,944)$966,929 $287,212 $669,173 $10,544 
Schedule of Amortized Cost and Estimated Fair Value
The amortized cost and estimated fair value of our marketable securities are shown below by contractual maturity (in thousands):
 
At the End of the Third Quarter of Fiscal 2023
 Amortized CostFair Value
Due within one year$362,127 $355,765 
Due in one to five years328,988 313,408 
Total$691,115 $669,173 
Schedule of Gross Unrealized Losses and Fair Values
The following table presents gross unrealized losses and fair values for those investments that were in a continuous unrealized loss position at the end of fiscal 2022 and the third quarter of fiscal 2023, aggregated by investment category (in thousands):
At the End of Fiscal 2022
Less than 12 monthsGreater than 12 monthsTotal
Fair
Value		Unrealized
Loss		Fair
Value		Unrealized
Loss		Fair
Value		Unrealized
Loss
U.S. government treasury notes$193,359 $(2,176)$— $— $193,359 $(2,176)
U.S. government agencies24,388 (193)— — 24,388 (193)
Corporate debt securities374,223 (4,708)1,182 (23)375,405 (4,731)
Foreign government bonds4,098 (17)— — 4,098 (17)
Asset-backed securities37,608 (453)— — 37,608 (453)
Municipal bonds3,872 (78)— — 3,872 (78)
Total$637,548 $(7,625)$1,182 $(23)$638,730 $(7,648)

At the End of the Third Quarter of Fiscal 2023
 Less than 12 monthsGreater than 12 monthsTotal
 Fair
Value		Unrealized
Loss		Fair
Value		Unrealized
Loss		Fair
Value		Unrealized
Loss
U.S. government treasury notes$133,188 $(2,603)$94,973 $(3,298)$228,161 $(5,901)
U.S. government agencies20,403 (390)2,893 (106)23,296 (496)
Corporate debt securities186,166 (5,289)182,534 (8,587)368,700 (13,876)
Foreign government bonds4,178 (30)541 (49)4,719 (79)
Asset-backed securities16,325 (197)18,156 (1,177)34,481 (1,374)
Municipal bonds1,401 (108)2,331 (110)3,732 (218)
Total$361,661 $(8,617)$301,428 $(13,327)$663,089 $(21,944)
v3.22.2.2
Balance Sheet Components - (Tables)
 9 Months Ended
Nov. 06, 2022
Balance Sheet Components Disclosure [Abstract]  
Schedule of Inventory
Inventory consists of the following (in thousands):
At the End of
Fiscal 2022
Third Quarter of Fiscal 2023
Raw materials$15,734 $24,471 
Finished goods23,208 35,245 
Inventory$38,942 $59,716 
Schedule of Property and Equipment, Net
Property and equipment, net consists of the following (in thousands):
 
At the End of
 Fiscal 2022
Third Quarter of Fiscal 2023
Test equipment$266,672 $306,088 
Computer equipment and software206,053 249,148 
Furniture and fixtures8,652 9,522 
Leasehold improvements47,443 58,931 
Capitalized software development costs8,528 14,795 
Total property and equipment537,348 638,484 
Less: accumulated depreciation and amortization(342,066)(389,878)
Property and equipment, net$195,282 $248,606 
Schedule of Intangible Assets, Net
Intangible assets, net consist of the following (in thousands):
 
At the End of
 Fiscal 2022
Third Quarter of Fiscal 2023
Gross Carrying ValueAccumulated AmortizationNet Carrying AmountGross Carrying ValueAccumulated AmortizationNet Carrying Amount
Technology patents$19,125 $(13,544)$5,581 $19,125 $(14,505)$4,620 
Developed technology80,166 (30,304)49,862 83,211 (40,061)43,150 
Customer relationships6,459 (1,246)5,213 6,459 (1,936)4,523 
Trade name3,623 (1,633)1,990 3,623 (2,537)1,086 
Intangible assets, net$109,373 $(46,727)$62,646 $112,418 $(59,039)$53,379 
Schedule of Expected Amortization Expenses for Intangible Assets
At the end of the third quarter of fiscal 2023, future expected amortization expense for intangible assets is as follows (in thousands):
Fiscal Years EndingEstimated Future
Amortization Expense
Remainder of 2023$4,157 
202416,210 
202515,425 
202612,830 
20273,107 
Thereafter1,650 
Total$53,379 
Schedule of Goodwill
The change in the carrying amount of goodwill is as follows (in thousands):
Amount
Balance at the end of fiscal 2022
$358,736 
Goodwill acquired2,691 
Balance at the end of the third quarter of fiscal 2023
$361,427 
Schedule of Accrued Expenses and Other Liabilities
Accrued expenses and other liabilities consist of the following (in thousands):
At the End of
 Fiscal 2022
Third Quarter of Fiscal 2023
Taxes payable $6,312 $10,249 
Accrued marketing13,257 13,543 
Accrued cloud and outside services6,135 4,614 
Supply chain-related accruals6,991 25,958 
Accrued service logistics and professional services6,244 6,564 
Acquisition earn-out and deferred consideration5,211 2,693 
Customer deposits from contracts with customers10,409 13,653 
Other accrued liabilities23,952 31,698 
Total accrued expenses and other liabilities$78,511 $108,972 
v3.22.2.2
Deferred Revenue and Commissions - (Tables)
 9 Months Ended
Nov. 06, 2022
Revenue from Contract with Customer [Abstract]  
Schedule of Deferred Commissions
Changes in total deferred commissions during the periods presented are as follows (in thousands):
Third Quarter of Fiscal
First Three Quarters of Fiscal
2022202320222023
Beginning balance
$195,965 $235,681 $187,924 $246,307 
Additions49,822 35,827 121,802 98,949 
Recognition of deferred commissions(37,467)(36,376)(101,406)(110,124)
Ending balance$208,320 $235,132 $208,320 $235,132 
Schedule of Deferred Revenue
Changes in total deferred revenue during the periods presented are as follows (in thousands):
Third Quarter of Fiscal
First Three Quarters of Fiscal
2022202320222023
Beginning balance
$909,814 $1,178,691 $843,697 $1,079,872 
Additions208,542 313,279 611,006 854,535 
Recognition of deferred revenue(168,606)(243,751)(504,953)(686,188)
Ending balance$949,750 $1,248,219 $949,750 $1,248,219 
v3.22.2.2
Debt - (Tables)
 9 Months Ended
Nov. 06, 2022
Debt Disclosure [Abstract]  
Schedule of Convertible Debt
The Notes consisted of the following (in thousands):
At the End of
Fiscal 2022
Third Quarter of Fiscal 2023
Liability:
Principal$575,000 $575,000 
Less: debt discount, net of amortization(35,641)— 
Less: debt issuance costs, net of amortization(2,580)(1,145)
Net carrying amount of the Notes$536,779 $573,855 
Stockholders' equity recorded at issuance:
Allocated value of the conversion feature$136,333 $— 
Less: debt issuance costs(3,068)— 
Additional paid-in capital$133,265 $— 
Schedule of Interest Expense
The following table sets forth total interest expense recognized related to the Notes for the third quarter and first three quarters of fiscal 2022 and 2023 (in thousands):
Third Quarter of Fiscal
First Three Quarters of Fiscal
2022202320222023
Amortization of debt discount$7,184 $— $21,029 $— 
Amortization of debt issuance costs520 650 1,523 1,947 
Total amortization of debt discount and debt issuance costs7,704 650 22,552 1,947 
Contractual interest expense181 179 537 537 
Total interest expense related to the Notes$7,885 $829 $23,089 $2,484 
Effective interest rate of the liability component5.6 %0.6 %5.6 %0.6 %
v3.22.2.2
Leases - (Tables)
 9 Months Ended
Nov. 06, 2022
Leases [Abstract]  
Components of Lease Cost
The components of lease costs during the periods presented were as follows (in thousands):
Third Quarter of Fiscal
First Three Quarters of Fiscal
2022202320222023
Fixed operating lease cost$9,652 $13,412 $28,717 $34,483 
Variable lease cost (1)
2,851 931 6,499 4,753 
Short-term lease cost (12 months or less)851 1,096 2,984 2,712 
Finance lease cost:
Amortization of finance lease right-of-use assets91 926 152 1,929 
Interest on finance lease liabilities13 98 18 197 
Total finance lease cost$104 $1,024 $170 $2,126 
Total lease cost$13,458 $16,463 $38,370 $44,074 
____________________________________
(1) Variable lease cost predominantly included common area maintenance charges.
Supplemental information related to leases is as follows (in thousands):
At the End of
Fiscal 2022
Third Quarter of Fiscal 2023
Operating leases:
Weighted-average remaining lease term (in years)4.55.5
Weighted-average discount rate5.7 %6.1 %
Finance leases:
Finance lease right-of-use assets, gross(1)
$3,577 $17,597 
     Accumulated amortization(1)
(384)(2,313)
Finance lease right-of-use assets, net(1)
$3,193 $15,284 
Finance lease liabilities, current(2)
1,035 5,367 
Finance lease liabilities, non-current(3)
1,487 5,378 
Total finance lease liabilities$2,522 $10,745 
Weighted-average remaining lease term (in years)3.63.5
Weighted-average discount rate2.7 %4.9 %
____________________________________
(1) Included in the condensed consolidated balance sheets within property and equipment, net.
(2) Included in the condensed consolidated balance sheets within accrued expenses and other liabilities.
(3) Included in the condensed consolidated balance sheets within other liabilities, non-current.
Schedule of Supplemental Cash Flow Information Related to Leases
Supplemental cash flow information related to leases is as follows (in thousands):
First Three Quarters of Fiscal
20222023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows for operating leases$27,379 $38,853 
Financing cash outflows for finance leases$414 $5,323 
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases$3,594 $77,986 
Finance leases$3,110 $14,019 
Schedule of Future Operating Lease Payments
Future lease payments under our non-cancelable leases at the end of the third quarter of fiscal 2023 were as follows (in thousands):
Fiscal Years EndingOperating LeasesFinance Leases
The remainder of 2023$11,256 $681 
202442,783 5,839 
202544,900 4,728 
202634,261 183 
202720,968 — 
Thereafter65,336 — 
Total future lease payments219,504 11,431 
Less: imputed interest(41,280)(686)
Present value of total lease liabilities$178,224 $10,745 
v3.22.2.2
Equity Incentive Plans - (Tables)
 9 Months Ended
Nov. 06, 2022
Share-Based Payment Arrangement [Abstract]  
Summary of Stock Option Activity Under Equity Incentive Plans and Related Information
A summary of the stock option activity under our equity incentive plans and related information is as follows:
 
 Options Outstanding
 Number of
Shares		Weighted-
Average
Exercise Price		Weighted-
Average
Remaining
Contractual Life (In Years)		Aggregate
Intrinsic
Value (in thousands)
Balance at the end of fiscal 202212,268,938 $10.25 3.5$198,266 
Options exercised(2,316,226)8.26   
Options forfeited(11,137)1.82   
Balance at the end of the third quarter of fiscal 2023
9,941,575 $10.73 2.8$195,398 
Vested and exercisable at the end of the third quarter of fiscal 2023
9,656,378 $10.94 2.7$187,290 
Schedule of Share-based Compensation, Restricted Stock Units Award Activity
A summary of the RSU and PRSU activity under our equity incentive plans and related information is as follows:
 Number of
RSUs and PRSUs Outstanding		Weighted-
Average
Grant Date
Fair Value		Aggregate
Intrinsic
Value (in thousands)
Unvested balance at the end of fiscal 202228,712,878 $19.53 $757,446 
Granted
13,297,023 29.96 
Vested(10,632,285)19.75 
Forfeited(2,950,347)21.58 
Unvested balance at the end of the third quarter of fiscal 2023
28,427,269 $24.11 $862,824 
Schedule of Restricted Stock Activity
A summary of the restricted stock activity under our 2015 Plan and related information is as follows:
 Number of
Restricted Stock Outstanding		Weighted-
Average
Grant Date
Fair Value		Aggregate
Intrinsic
Value (in thousands)
Unvested balance at the end of fiscal 202254,977 $20.02 $1,450 
Vested(54,977)20.02 
Forfeited— — 
Unvested balance at the end of the third quarter of fiscal 2023
— $— $— 
Summarizes the Components of Stock-Based Compensation
The following table summarizes the components of stock-based compensation expense recognized in the condensed consolidated statements of operations (in thousands):
 
 
Third Quarter of Fiscal
First Three Quarters of Fiscal
 2022202320222023
Cost of revenue—product$1,634 $2,984 $4,547 $7,454 
Cost of revenue—subscription services5,555 5,814 15,098 16,978 
Research and development
36,797 42,390 102,343 120,482 
Sales and marketing19,151 18,441 54,317 54,740 
General and administrative12,863 17,350 31,458 45,460 
Total stock-based compensation expense$76,000 $86,979 $207,763 $245,114 
v3.22.2.2
Net Loss per Share Attributable to Common Stockholders - (Tables)
 9 Months Ended
Nov. 06, 2022
Earnings Per Share [Abstract]  
Summary of Computation of Basic and Diluted Net Loss per Share Attributable to Common Stockholders
The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except per share data):
 
Third Quarter of Fiscal
First Three Quarters of Fiscal
 2022202320222023
Net loss$(28,731)$(787)$(158,202)$(1,400)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted287,462 300,984 283,918 298,101 
Net loss per share attributable to common stockholders, basic and diluted$(0.10)$(0.00)$(0.56)$(0.00)
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):
 
 
Third Quarter of Fiscal
First Three Quarters of Fiscal
 2022202320222023
Stock options to purchase common stock15,194 10,164 16,623 10,812 
Unvested RSUs and PRSUs32,937 29,809 33,541 30,510 
Unvested restricted stock176 — 319 8 
Shares related to convertible senior notes21,884 21,884 21,884 21,884 
Shares issuable pursuant to the ESPP1,121 450 1,121 450 
Total71,312 62,307 73,488 63,664 
v3.22.2.2
Other Income (Expense), Net - (Tables)
 9 Months Ended
Nov. 06, 2022
Other Income and Expenses [Abstract]  
Summary of Other Income (Expense)
Other income (expense), net consists of the following (in thousands):
Third Quarter of Fiscal
First Three Quarters of Fiscal
2022202320222023
Interest income(1)
$2,082 $3,969 $7,186 $8,280 
Interest expense(2)
(9,103)(1,117)(26,767)(3,600)
Foreign currency transactions net losses(1,729)(6,663)(2,927)(15,689)
Other income797 997 2,418 2,599 
Total other income (expense), net$(7,953)$(2,814)$(20,090)$(8,410)
____________________________________
(1) Interest income includes interest income related to our cash, cash equivalents and marketable securities and non-cash interest income (expense) related to accretion (amortization) of the discount (premium) on marketable securities.
(2) Interest expense includes non-cash interest expense related to amortization of the debt discount and debt issuance costs, contractual interest expense related to our debt and accretion of our finance lease liabilities.
v3.22.2.2
Segment Information - (Tables)
 9 Months Ended
Nov. 06, 2022
Segment Reporting [Abstract]  
Schedule of Revenue by Geographic Area
The following table depicts the disaggregation of revenue by geographic area based on the billing address of our customers and is consistent with how we evaluate our financial performance (in thousands):
 
Third Quarter of Fiscal
First Three Quarters of Fiscal
 2022202320222023
United States$408,732 $492,770 $1,057,015 $1,419,440 
Rest of the world154,008 183,280 415,263 523,787 
Total revenue$562,740 $676,050 $1,472,278 $1,943,227 
Schedule of Long-Lived Assets by Geographic Area
Long-lived assets, which are comprised of property and equipment, net, by geographic area are summarized as follows (in thousands):
 
At the End of
 Fiscal 2022
Third Quarter of Fiscal 2023
United States$187,228 $236,404 
Rest of the world8,054 12,202 
Total long-lived assets$195,282 $248,606 
v3.22.2.2
Financial Instruments - Cash Equivalents, Marketable Securities and Restricted Cash (Details) - USD ($)
$ in Thousands
Nov. 06, 2022
Feb. 06, 2022
Debt Securities, Available-for-sale [Line Items]    
Fair Value $ 669,173  
Cash Equivalents 287,212 $ 18,931
Marketable Securities 669,173 947,073
Restricted Cash 10,544 10,544
Amortized Cost 691,115 953,828
Total gross unrealized gains 2 1,093
Total gross unrealized losses (21,944) (7,648)
Total fair value 966,929 976,548
Level 1 | Money market accounts    
Debt Securities, Available-for-sale [Line Items]    
Fair Value 297,756 29,275
Cash Equivalents 287,212 18,731
Marketable Securities 0 0
Restricted Cash 10,544 10,544
Level 2 | U.S. government treasury notes    
Debt Securities, Available-for-sale [Line Items]    
Total 235,143 336,303
Gross Unrealized Gains 1 512
Gross Unrealized Losses (5,901) (2,176)
Fair Value 229,243 334,639
Cash Equivalents 0 0
Marketable Securities 229,243 334,639
Restricted Cash 0 0
Level 2 | U.S. government agencies    
Debt Securities, Available-for-sale [Line Items]    
Total 28,792 49,153
Gross Unrealized Gains 1 49
Gross Unrealized Losses (496) (193)
Fair Value 28,297 49,009
Cash Equivalents 0 0
Marketable Securities 28,297 49,009
Restricted Cash 0 0
Level 2 | Corporate debt securities    
Debt Securities, Available-for-sale [Line Items]    
Total 382,577 491,728
Gross Unrealized Gains 0 384
Gross Unrealized Losses (13,876) (4,731)
Fair Value 368,701 487,381
Cash Equivalents 0 200
Marketable Securities 368,701 487,181
Restricted Cash 0 0
Level 2 | Foreign government bonds    
Debt Securities, Available-for-sale [Line Items]    
Total 4,798 12,333
Gross Unrealized Gains 0 37
Gross Unrealized Losses (79) (17)
Fair Value 4,719 12,353
Cash Equivalents 0 0
Marketable Securities 4,719 12,353
Restricted Cash 0 0
Level 2 | Asset-backed securities    
Debt Securities, Available-for-sale [Line Items]    
Total 35,855 60,361
Gross Unrealized Gains 0 111
Gross Unrealized Losses (1,374) (453)
Fair Value 34,481 60,019
Cash Equivalents 0 0
Marketable Securities 34,481 60,019
Restricted Cash 0 0
Level 2 | Municipal bonds    
Debt Securities, Available-for-sale [Line Items]    
Total 3,950 3,950
Gross Unrealized Gains 0 0
Gross Unrealized Losses (218) (78)
Fair Value 3,732 3,872
Cash Equivalents 0 0
Marketable Securities 3,732 3,872
Restricted Cash $ 0 $ 0
v3.22.2.2
Financial Instruments - Amortized Cost and Estimated Fair Value (Details) - USD ($)
 3 Months Ended 9 Months Ended
Nov. 06, 2022
Oct. 31, 2021
Nov. 06, 2022
Oct. 31, 2021
Feb. 06, 2022
Amortized Cost          
Due within one year $ 362,127,000   $ 362,127,000    
Due in one to five years 328,988,000   328,988,000    
Total 691,115,000   691,115,000   $ 953,828,000
Fair Value          
Due within one year 355,765,000   355,765,000    
Due in one to five years 313,408,000   313,408,000    
Total 669,173,000   669,173,000    
Impairment charge for unrealized losses $ 0 $ 0 $ 0 $ 0  
v3.22.2.2
Financial Instruments - Gross Unrealized Losses and Fair Values (Details) - USD ($)
$ in Thousands
Nov. 06, 2022
Feb. 06, 2022
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]    
Fair Value, Less than 12 months $ 361,661 $ 637,548
Unrealized Loss, Less than 12 months (8,617) (7,625)
Fair Value, Greater than 12 months 301,428 1,182
Unrealized Loss, Greater than 12 months (13,327) (23)
Fair Value, Total 663,089 638,730
Unrealized Loss, Total (21,944) (7,648)
U.S. government treasury notes    
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]    
Fair Value, Less than 12 months 133,188 193,359
Unrealized Loss, Less than 12 months (2,603) (2,176)
Fair Value, Greater than 12 months 94,973 0
Unrealized Loss, Greater than 12 months (3,298) 0
Fair Value, Total 228,161 193,359
Unrealized Loss, Total (5,901) (2,176)
U.S. government agencies    
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]    
Fair Value, Less than 12 months 20,403 24,388
Unrealized Loss, Less than 12 months (390) (193)
Fair Value, Greater than 12 months 2,893 0
Unrealized Loss, Greater than 12 months (106) 0
Fair Value, Total 23,296 24,388
Unrealized Loss, Total (496) (193)
Corporate debt securities    
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]    
Fair Value, Less than 12 months 186,166 374,223
Unrealized Loss, Less than 12 months (5,289) (4,708)
Fair Value, Greater than 12 months 182,534 1,182
Unrealized Loss, Greater than 12 months (8,587) (23)
Fair Value, Total 368,700 375,405
Unrealized Loss, Total (13,876) (4,731)
Foreign government bonds    
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]    
Fair Value, Less than 12 months 4,178 4,098
Unrealized Loss, Less than 12 months (30) (17)
Fair Value, Greater than 12 months 541 0
Unrealized Loss, Greater than 12 months (49) 0
Fair Value, Total 4,719 4,098
Unrealized Loss, Total (79) (17)
Asset-backed securities    
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]    
Fair Value, Less than 12 months 16,325 37,608
Unrealized Loss, Less than 12 months (197) (453)
Fair Value, Greater than 12 months 18,156 0
Unrealized Loss, Greater than 12 months (1,177) 0
Fair Value, Total 34,481 37,608
Unrealized Loss, Total (1,374) (453)
Municipal bonds    
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]    
Fair Value, Less than 12 months 1,401 3,872
Unrealized Loss, Less than 12 months (108) (78)
Fair Value, Greater than 12 months 2,331 0
Unrealized Loss, Greater than 12 months (110) 0
Fair Value, Total 3,732 3,872
Unrealized Loss, Total $ (218) $ (78)
v3.22.2.2
Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) - USD ($)
$ in Thousands
Feb. 07, 2022
Nov. 06, 2022
Feb. 06, 2022
Oct. 31, 2021
Accounting Policies [Abstract]        
Restricted cash   $ 10,544 $ 10,544 $ 10,544
Reduction in additional paid-in capital $ 133,300      
Debt instrument increase net 35,200      
Accumulated deficit $ 98,100 $ 1,611,533 $ 1,708,271  
v3.22.2.2
Balance Sheet Components - Inventory (Details) - USD ($)
$ in Thousands
Nov. 06, 2022
Feb. 06, 2022
Balance Sheet Components Disclosure [Abstract]    
Raw materials $ 24,471 $ 15,734
Finished goods 35,245 23,208
Inventory $ 59,716 $ 38,942
v3.22.2.2
Balance Sheet Components - Property and Equipment, Net (Details) - USD ($)
$ in Thousands
Nov. 06, 2022
Feb. 06, 2022
Property Plant And Equipment [Line Items]    
Total property and equipment $ 638,484 $ 537,348
Less: accumulated depreciation and amortization (389,878) (342,066)
Property and equipment, net 248,606 195,282
Test equipment    
Property Plant And Equipment [Line Items]    
Total property and equipment 306,088 266,672
Computer equipment and software    
Property Plant And Equipment [Line Items]    
Total property and equipment 249,148 206,053
Furniture and fixtures    
Property Plant And Equipment [Line Items]    
Total property and equipment 9,522 8,652
Leasehold improvements    
Property Plant And Equipment [Line Items]    
Total property and equipment 58,931 47,443
Capitalized software development costs    
Property Plant And Equipment [Line Items]    
Total property and equipment $ 14,795 $ 8,528
v3.22.2.2
Balance Sheet Components - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Nov. 06, 2022
Oct. 31, 2021
Nov. 06, 2022
Oct. 31, 2021
Finite-Lived Intangible Assets [Line Items]        
Depreciation and amortization $ 22.2 $ 17.5 $ 61.0 $ 47.2
Intangible assets amortization expense $ 4.1 $ 4.0 $ 12.3 $ 12.4
Technology patents        
Finite-Lived Intangible Assets [Line Items]        
Useful Life (in years) 1 year 8 months 12 days      
Developed technology        
Finite-Lived Intangible Assets [Line Items]        
Useful Life (in years) 3 years 3 months 18 days      
Customer relationships        
Finite-Lived Intangible Assets [Line Items]        
Useful Life (in years) 4 years 10 months 24 days      
Trade name        
Finite-Lived Intangible Assets [Line Items]        
Useful Life (in years) 10 months 24 days      
v3.22.2.2
Balance Sheet Components - Intangible Assets, Net (Details) - USD ($)
$ in Thousands
Nov. 06, 2022
Feb. 06, 2022
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value $ 112,418 $ 109,373
Accumulated Amortization (59,039) (46,727)
Net Carrying Amount 53,379 62,646
Technology patents    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value 19,125 19,125
Accumulated Amortization (14,505) (13,544)
Net Carrying Amount 4,620 5,581
Developed technology    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value 83,211 80,166
Accumulated Amortization (40,061) (30,304)
Net Carrying Amount 43,150 49,862
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value 6,459 6,459
Accumulated Amortization (1,936) (1,246)
Net Carrying Amount 4,523 5,213
Trade name    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value 3,623 3,623
Accumulated Amortization (2,537) (1,633)
Net Carrying Amount $ 1,086 $ 1,990
v3.22.2.2
Balance Sheet Components - Expected Amortization Expenses for Intangible Assets (Details) - USD ($)
$ in Thousands
Nov. 06, 2022
Feb. 06, 2022
Balance Sheet Components Disclosure [Abstract]    
Remainder of 2023 $ 4,157  
2024 16,210  
2025 15,425  
2026 12,830  
2027 3,107  
Thereafter 1,650  
Net Carrying Amount $ 53,379 $ 62,646
v3.22.2.2
Balance Sheet Components - Goodwill (Details) - USD ($)
 3 Months Ended 9 Months Ended
Nov. 06, 2022
Oct. 31, 2021
Nov. 06, 2022
Oct. 31, 2021
Goodwill [Roll Forward]        
Goodwill, Beginning Balance     $ 358,736,000  
Goodwill acquired     2,691,000  
Goodwill, Ending Balance $ 361,427,000   361,427,000  
Impairments to goodwill $ 0 $ 0 $ 0 $ 0
v3.22.2.2
Balance Sheet Components - Accrued Expenses and Other Liabilities (Details) - USD ($)
$ in Thousands
Nov. 06, 2022
Feb. 06, 2022
Balance Sheet Components Disclosure [Abstract]    
Taxes payable $ 10,249 $ 6,312
Accrued marketing 13,543 13,257
Accrued cloud and outside services 4,614 6,135
Supply chain-related accruals 25,958 6,991
Accrued service logistics and professional services 6,564 6,244
Acquisition earn-out and deferred consideration 2,693 5,211
Customer deposits from contracts with customers 13,653 10,409
Other accrued liabilities 31,698 23,952
Total accrued expenses and other liabilities $ 108,972 $ 78,511
v3.22.2.2
Deferred Revenue and Commissions - Deferred Commissions (Details) - USD ($)
 3 Months Ended 9 Months Ended
Nov. 06, 2022
Oct. 31, 2021
Nov. 06, 2022
Oct. 31, 2021
Deferred Commissions [Roll Forward]        
Beginning balance $ 235,681,000 $ 195,965,000 $ 246,307,000 $ 187,924,000
Additions 35,827,000 49,822,000 98,949,000 121,802,000
Recognition of deferred commissions (36,376,000) (37,467,000) (110,124,000) (101,406,000)
Ending balance $ 235,132,000 208,320,000 $ 235,132,000 208,320,000
Commission expected to be recognized over the next 12 months (percent) 30.00%   30.00%  
Impairment of capitalized commissions $ 0 $ 0 $ 0 $ 0
v3.22.2.2
Deferred Revenue and Commissions - Deferred Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Nov. 06, 2022
Oct. 31, 2021
Nov. 06, 2022
Oct. 31, 2021
Contract Liability        
Additions $ 35,827 $ 49,822 $ 98,949 $ 121,802
Recognition of deferred revenue (36,376) (37,467) (110,124) (101,406)
Product Revenue and Support Subscription Revenue        
Contract Liability        
Beginning balance 1,178,691 909,814 1,079,872 843,697
Additions 313,279 208,542 854,535 611,006
Recognition of deferred revenue (243,751) (168,606) (686,188) (504,953)
Ending balance $ 1,248,219 $ 949,750 $ 1,248,219 $ 949,750
v3.22.2.2
Deferred Revenue and Commissions - Remaining Performance Obligation (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Nov. 06, 2022
Oct. 31, 2021
Nov. 06, 2022
Oct. 31, 2021
Revenue from Contract with Customer [Abstract]        
Deferred revenue recognized $ 216.8 $ 163.2 $ 466.0 $ 356.2
Contracted but not recognized revenue $ 1,600.0   $ 1,600.0  
Contracted but not recognized revenue expected to be recognized in the next 12 months (percent) 47.00%   47.00%  
v3.22.2.2
Deferred Revenue and Commissions - Remaining Performance Obligation Period (Details)
Nov. 06, 2022
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-11-07  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue expected to be recognized term (in months) 12 months
v3.22.2.2
Debt - Narrative (Details)
 1 Months Ended 3 Months Ended 9 Months Ended 12 Months Ended
Feb. 07, 2022
USD ($)
Aug. 24, 2020
USD ($)
financial_ratio
Feb. 28, 2022
USD ($)
Apr. 30, 2018
USD ($)
shares
$ / shares
Nov. 06, 2022
USD ($)
$ / shares
May 08, 2022
USD ($)
Oct. 31, 2021
USD ($)
Nov. 06, 2022
USD ($)
$ / shares
Oct. 31, 2021
USD ($)
Feb. 06, 2022
USD ($)
Apr. 04, 2018
$ / shares
Debt Instrument [Line Items]                      
Closing price of stock (in dollars per share) | $ / shares         $ 30.34     $ 30.34      
Revolving Credit Facility                      
Debt Instrument [Line Items]                      
Term of credit facility   5 years                  
Senior secured revolving credit facility maximum capacity   $ 300,000,000                  
Credit facility maturity period prior to stated maturity if out of compliance with liquidity threshold   91 days                  
Credit facility, daily minimum sum of cash and cash equivalents and aggregate unused commitments to prevent maturity prior to stated maturity   $ 625,000,000                  
Repayments of lines of credit     $ 250,000,000                
Interest during the period (percent)           1.61% 1.59%   1.60%    
Interest expense           $ 300,000 $ 1,000,000   $ 3,000,000    
Number of financial ratios | financial_ratio   2                  
Consolidated leverage ratio, maximum         4.5            
Interest coverage ratio, minimum         3            
Revolving Credit Facility | Minimum                      
Debt Instrument [Line Items]                      
Commitment Fee (percent)   0.25%                  
Revolving Credit Facility | Maximum                      
Debt Instrument [Line Items]                      
Commitment Fee (percent)   0.40%                  
Revolving Credit Facility | Base Rate | Minimum                      
Debt Instrument [Line Items]                      
Margin rate (percent)   0.50%                  
Revolving Credit Facility | Base Rate | Maximum                      
Debt Instrument [Line Items]                      
Margin rate (percent)   1.25%                  
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Interest Rate Floor                      
Debt Instrument [Line Items]                      
Effective interest rate (percent)   0.00%                  
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum                      
Debt Instrument [Line Items]                      
Margin rate (percent)   1.50%                  
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Maximum                      
Debt Instrument [Line Items]                      
Margin rate (percent)   2.25%                  
Capped Call                      
Debt Instrument [Line Items]                      
Payment for purchase of capped calls       $ 64,600,000              
Class A                      
Debt Instrument [Line Items]                      
Closing price of stock (in dollars per share) | $ / shares         $ 30.34     $ 30.34      
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]                      
Debt issuance costs         $ 1,145,000     $ 1,145,000   $ 2,580,000  
Additional Paid-in Capital                      
Debt Instrument [Line Items]                      
Allocated value of the conversion feature                   $ 136,333,000  
Convertible Senior Notes                      
Debt Instrument [Line Items]                      
Principal amount       $ 575,000,000              
Interest rate (as a percent)       0.125%              
Repayments of borrowing       $ 562,100,000              
Conversion percentage of principal amount plus accrued and unpaid contingent interest       100.00%              
Debt issuance costs $ 12,900,000                    
Convertible debt, fair value based on the closing trading price per $100 of the Notes         691,900,000     691,900,000      
If-converted value         664,000,000     $ 664,000,000      
Remaining term of the notes               5 months      
Interest expense         $ 829,000   $ 7,885,000 $ 2,484,000 $ 23,089,000    
Convertible Senior Notes | Liability Component                      
Debt Instrument [Line Items]                      
Debt issuance costs 9,800,000                    
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)       0.0380594              
Conversion price (in dollars per share) | $ / shares       $ 26.27              
Convertible Senior Notes | Additional Paid-in Capital                      
Debt Instrument [Line Items]                      
Allocated value of the conversion feature 136,300,000                    
Debt issuance costs $ 3,100,000                    
v3.22.2.2
Debt - Convertible Debt (Details) - USD ($)
$ in Thousands
 12 Months Ended
Feb. 06, 2022
Nov. 06, 2022
Convertible Senior Notes    
Liability:    
Principal $ 575,000 $ 575,000
Less: debt discount, net of amortization (35,641) 0
Less: debt issuance costs, net of amortization (2,580) (1,145)
Net carrying amount of the Notes 536,779 $ 573,855
Additional Paid-in Capital    
Stockholders' equity recorded at issuance:    
Allocated value of the conversion feature 136,333  
Less: debt issuance costs (3,068)  
Additional paid-in capital $ 133,265  
v3.22.2.2
Debt - Interest Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Nov. 06, 2022
Oct. 31, 2021
Nov. 06, 2022
Oct. 31, 2021
Debt Instrument [Line Items]        
Total amortization of debt discount and debt issuance costs     $ 2,406 $ 23,011
Convertible Senior Notes        
Debt Instrument [Line Items]        
Amortization of debt discount $ 0 $ 7,184 0 21,029
Amortization of debt issuance costs 650 520 1,947 1,523
Total amortization of debt discount and debt issuance costs 650 7,704 1,947 22,552
Contractual interest expense 179 181 537 537
Total interest expense related to the Notes $ 829 $ 7,885 $ 2,484 $ 23,089
Effective interest rate of the liability component ( as a percent) 0.60% 5.60% 0.60% 5.60%
v3.22.2.2
Commitments and Contingencies - Narrative (Details) - USD ($)
Nov. 06, 2022
Feb. 06, 2022
Commitments and Contingencies Disclosure [Abstract]    
Outstanding letters of credit $ 8,000,000 $ 6,700,000
Loss contingency $ 0  
v3.22.2.2
Leases - Narrative (Details) - USD ($)
$ in Thousands
 1 Months Ended
Jun. 30, 2022
May 31, 2024
Nov. 06, 2022
Aug. 31, 2022
Lessee, Lease, Description [Line Items]        
Sublease term 8 years      
Total lease payments that include rent escalation and abatement clauses $ 100,200   $ 219,504 $ 89,400
Forecast        
Lessee, Lease, Description [Line Items]        
Total lease payments that include rent escalation and abatement clauses   $ 10,800    
v3.22.2.2
Leases - Lease costs (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Nov. 06, 2022
Oct. 31, 2021
Nov. 06, 2022
Oct. 31, 2021
Leases [Abstract]        
Fixed operating lease cost $ 13,412 $ 9,652 $ 34,483 $ 28,717
Variable lease cost 931 2,851 4,753 6,499
Short-term lease cost (12 months or less) 1,096 851 2,712 2,984
Amortization of finance lease right-of-use assets 926 91 1,929 152
Interest on finance lease liabilities 98 13 197 18
Total finance lease cost 1,024 104 2,126 170
Total lease cost $ 16,463 $ 13,458 $ 44,074 $ 38,370
v3.22.2.2
Leases - Lease term and discount rate (Details) - USD ($)
$ in Thousands
Nov. 06, 2022
Feb. 06, 2022
Operating leases:    
Weighted-average remaining lease term (in years) 5 years 6 months 4 years 6 months
Weighted-average discount rate 6.10% 5.70%
Finance leases:    
Finance lease right-of-use assets, gross $ 17,597 $ 3,577
Accumulated amortization (2,313) (384)
Finance lease right-of-use assets, net 15,284 3,193
Finance lease liabilities, current 5,367 1,035
Finance lease liabilities, non-current 5,378 1,487
Present value of total lease liabilities $ 10,745 $ 2,522
Weighted-average remaining lease term (in years) 3 years 6 months 3 years 7 months 6 days
Weighted-average discount rate 4.90% 2.70%
v3.22.2.2
Leases - Supplemental cash flow information related to leases (Details) - USD ($)
$ in Thousands
 9 Months Ended
Nov. 06, 2022
Oct. 31, 2021
Leases [Abstract]    
Operating cash outflows for operating leases $ 38,853 $ 27,379
Financing cash outflows for finance leases 5,323 414
Operating leases 77,986 3,594
Finance leases $ 14,019 $ 3,110
v3.22.2.2
Leases - Future minimum lease payments (Details) - USD ($)
$ in Thousands
Nov. 06, 2022
Aug. 31, 2022
Jun. 30, 2022
Feb. 06, 2022
Operating Leases        
The remainder of 2023 $ 11,256      
2024 42,783      
2025 44,900      
2026 34,261      
2027 20,968      
Thereafter 65,336      
Total future lease payments 219,504 $ 89,400 $ 100,200  
Less: imputed interest (41,280)      
Present value of total lease liabilities 178,224      
Finance Leases        
The remainder of 2023 681      
2024 5,839      
2025 4,728      
2026 183      
2027 0      
Thereafter 0      
Total future lease payments 11,431      
Less: imputed interest (686)      
Present value of total lease liabilities $ 10,745     $ 2,522
v3.22.2.2
Stockholders' Equity - Narrative (Details)
$ / shares in Units, $ in Millions
 3 Months Ended 9 Months Ended
Nov. 06, 2022
USD ($)
stock_class
$ / shares
shares
Nov. 06, 2022
USD ($)
stock_class
$ / shares
shares
Mar. 31, 2022
USD ($)
Feb. 06, 2022
$ / shares
shares
Class of Stock [Line Items]        
Preferred stock, shares authorized (in shares) 20,000,000 20,000,000   20,000,000
Preferred stock, shares issued (in shares) 0 0   0
Preferred stock, shares outstanding (in shares) 0 0   0
Number of classes of stock | stock_class 2 2    
Common stock, shares authorized (in shares) 2,250,000,000 2,250,000,000   2,250,000,000
Additional value approved for repurchase | $     $ 250.0  
Stock repurchased and retired (in shares) 888,433 5,410,150    
Shares repurchased and retired, average purchase price (in dollars per share) | $ / shares $ 27.63 $ 27.99    
Stock repurchased and retired during period, value | $ $ 24.6 $ 151.5    
Authorized amount remaining under stock repurchase program | $ $ 98.5 $ 98.5    
Class A        
Class of Stock [Line Items]        
Common stock, shares authorized (in shares) 2,000,000,000 2,000,000,000   2,000,000,000
Common stock, par value per share (in dollars per share) | $ / shares $ 0.0001 $ 0.0001   $ 0.0001
Common stock, shares issued (in shares) 302,668,981 302,668,981   292,633,000
Common stock, shares outstanding (in shares) 302,668,981 302,668,981   292,633,000
Class B        
Class of Stock [Line Items]        
Common stock, shares authorized (in shares) 250,000,000 250,000,000   250,000,000
Common stock, par value per share (in dollars per share) | $ / shares $ 0.0001 $ 0.0001   $ 0.0001
v3.22.2.2
Equity Incentive Plans - Narrative (Details)
 3 Months Ended 9 Months Ended
Nov. 06, 2022
USD ($)
period
shares
May 08, 2022
shares
Oct. 31, 2021
USD ($)
Nov. 06, 2022
USD ($)
plan
period
shares
Oct. 31, 2021
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Number of equity incentive plans | plan       2  
Equity awards expiration period (no later than)       10 years  
Total stock-based compensation expense $ 86,979,000   $ 76,000,000 $ 245,114,000 $ 207,763,000
PRSUs          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Additional share issued | shares   647,586      
Cancelled (in shares) | shares   34,960      
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     4  
Purchase period, term       6 months  
ESPP modification charge $ 10,400,000        
Total stock-based compensation expense 5,500,000   $ 8,900,000 $ 17,300,000 $ 25,300,000
Unrecognized stock-based compensation expense $ 37,800,000     $ 37,800,000  
Compensation cost (in years)       1 year 9 months 18 days  
2015 Employee Stock Purchase Plan | Class A          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Payroll deductions percentage 30.00%     30.00%  
Share cap for ESPP at purchase date (in shares) | shares 3,000     3,000  
Dollar cap per purchase period       $ 7,500  
Calendar year gap for ESPP contribution amount       $ 25,000  
Purchase price as percentage of fair market value of common stock       85.00%  
Minimum          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Vesting period (in years)       2 years  
Maximum          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Vesting period (in years)       4 years  
v3.22.2.2
Equity Incentive Plans - Equity Incentive Plans (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 9 Months Ended 12 Months Ended
Nov. 06, 2022
Oct. 31, 2021
Nov. 06, 2022
Oct. 31, 2021
Feb. 06, 2022
Number of Shares          
Beginning balance (in shares)     12,268,938    
Options exercised (in shares)     (2,316,226)    
Options forfeited (in shares)     (11,137)    
Ending balance (in shares) 9,941,575   9,941,575   12,268,938
Vested and exercisable (in shares) 9,656,378   9,656,378    
Weighted- Average Exercise Price          
Beginning balance (in dollars per share)     $ 10.25    
Options exercised (in dollars per share)     8.26    
Options forfeited/canceled (in dollars per share)     1.82    
Ending balance (in dollars per share) $ 10.73   10.73   $ 10.25
Weighted Average Exercise Price, Vested and exercisable (in dollars per share) $ 10.94   $ 10.94    
Weighted- Average Remaining Contractual Life (In Years)          
Weighted Average Remaining Contractual Life (in years)     2 years 9 months 18 days   3 years 6 months
Weighted Average Remaining Contractual Life, Vested and exercisable (in years)     2 years 8 months 12 days    
Aggregate Intrinsic Value          
Aggregate Intrinsic Value $ 195,398   $ 195,398   $ 198,266
Aggregate Intrinsic Value, Vested and exercisable $ 187,290   $ 187,290    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Closing price of stock (in dollars per share) $ 30.34   $ 30.34    
Total stock-based compensation expense $ 86,979 $ 76,000 $ 245,114 $ 207,763  
Unrecognized compensation cost, stock options 3,400   3,400    
Employee Stock Option          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Total stock-based compensation expense $ 1,200 $ 1,700 $ 4,000 $ 6,000  
Compensation cost (in years)     1 year 2 months 12 days    
Class A          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Closing price of stock (in dollars per share) $ 30.34   $ 30.34    
v3.22.2.2
Equity Incentive Plans - Restricted Stock Units (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 9 Months Ended
Nov. 06, 2022
May 08, 2022
Oct. 31, 2021
Nov. 06, 2022
Oct. 31, 2021
Feb. 06, 2022
Weighted- Average Grant Date Fair Value            
Stock-based compensation expense $ 86,979   $ 76,000 $ 245,114 $ 207,763  
Unvested RSUs and PRSUs            
Number of RSUs and PRSUs Outstanding            
Unvested, Beginning balance (in shares)   28,712,878   28,712,878    
Granted (in shares)       13,297,023    
Vested (in shares)       (10,632,285)    
Forfeited (in shares)       (2,950,347)    
Unvested, Ending balance (in shares) 28,427,269     28,427,269    
Weighted- Average Grant Date Fair Value            
Beginning balance (in dollars per share)   $ 19.53   $ 19.53    
Granted (in dollars per share)       29.96    
Vested (in dollars per share)       19.75    
Forfeited (in dollars per share)       21.58    
Ending balance (in dollars per share) $ 24.11     $ 24.11    
Aggregate Intrinsic Value $ 862,824     $ 862,824   $ 757,446
Stock-based compensation expense 80,300   $ 65,000 223,800 $ 174,900  
Compensation not yet recognized $ 620,200     $ 620,200    
Compensation cost (in years)       2 years 9 months 18 days    
PRSUs            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Award vesting rights, target (as a percent)       100.00%    
Number of RSUs and PRSUs Outstanding            
Granted (in shares)       1,147,187    
Forfeited (in shares)   (34,960)        
PRSUs | Minimum            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Award vesting rights, target (as a percent)       0.00%    
PRSUs | Maximum            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Award vesting rights, target (as a percent)       150.00%    
v3.22.2.2
Equity Incentive Plans - Restricted Stock (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 9 Months Ended
Nov. 06, 2022
Oct. 31, 2021
Nov. 06, 2022
Oct. 31, 2021
Feb. 06, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Stock-based compensation expense $ 86,979 $ 76,000 $ 245,114 $ 207,763  
Unvested restricted stock          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Stock-based compensation expense     $ 0    
Number of Restricted Stock Outstanding          
Unvested, Beginning balance (in shares)     54,977    
Vested (in shares)     (54,977)    
Forfeited/canceled (in shares)     0    
Unvested, Ending balance (in shares) 0   0    
Weighted- Average Grant Date Fair Value          
Beginning balance (in dollars per share)     $ 20.02    
Vested (in dollars per share)     20.02    
Forfeited/canceled (in dollars per share)     0    
Ending balance (in dollars per share) $ 0   $ 0    
Aggregate Intrinsic Value $ 0   $ 0   $ 1,450
v3.22.2.2
Equity Incentive Plans - Stock-Based Compensation (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Nov. 06, 2022
Oct. 31, 2021
Nov. 06, 2022
Oct. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total stock-based compensation expense $ 86,979 $ 76,000 $ 245,114 $ 207,763
Cost of revenue—product        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total stock-based compensation expense 2,984 1,634 7,454 4,547
Cost of revenue—subscription services        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total stock-based compensation expense 5,814 5,555 16,978 15,098
Research and development        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total stock-based compensation expense 42,390 36,797 120,482 102,343
Sales and marketing        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total stock-based compensation expense 18,441 19,151 54,740 54,317
General and administrative        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total stock-based compensation expense $ 17,350 $ 12,863 $ 45,460 $ 31,458
v3.22.2.2
Net Loss per Share Attributable to Common Stockholders - Net Loss per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Nov. 06, 2022
Oct. 31, 2021
Nov. 06, 2022
Oct. 31, 2021
Earnings Per Share [Abstract]        
Net loss $ (787) $ (28,731) $ (1,400) $ (158,202)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic (in shares) 300,984 287,462 298,101 283,918
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted (in shares) 300,984 287,462 298,101 283,918
Net loss per share attributable to common stockholders, basic (in dollars per share) $ (0.00) $ (0.10) $ (0.00) $ (0.56)
Net loss per share attributable to common stockholders, diluted (in dollars per share) $ (0.00) $ (0.10) $ (0.00) $ (0.56)
v3.22.2.2
Net Loss per Share Attributable to Common Stockholders - Shares Excluded (Details) - shares
shares in Thousands
 3 Months Ended 9 Months Ended
Nov. 06, 2022
Oct. 31, 2021
Nov. 06, 2022
Oct. 31, 2021
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]        
Anti-dilutive securities excluded from computation of earnings per share, amount (in shares) 62,307 71,312 63,664 73,488
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) 10,164 15,194 10,812 16,623
Unvested RSUs and PRSUs        
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]        
Anti-dilutive securities excluded from computation of earnings per share, amount (in shares) 29,809 32,937 30,510 33,541
Unvested restricted stock        
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]        
Anti-dilutive securities excluded from computation of earnings per share, amount (in shares) 0 176 8 319
Shares related to convertible senior notes        
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]        
Anti-dilutive securities excluded from computation of earnings per share, amount (in shares) 21,884 21,884 21,884 21,884
Shares issuable pursuant to the ESPP        
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]        
Anti-dilutive securities excluded from computation of earnings per share, amount (in shares) 450 1,121 450 1,121
v3.22.2.2
Other Income (Expense), Net - Other Income (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Nov. 06, 2022
Oct. 31, 2021
Nov. 06, 2022
Oct. 31, 2021
Other Income and Expenses [Abstract]        
Interest income $ 3,969 $ 2,082 $ 8,280 $ 7,186
Interest expense (1,117) (9,103) (3,600) (26,767)
Foreign currency transactions net losses (6,663) (1,729) (15,689) (2,927)
Other income 997 797 2,599 2,418
Total other income (expense), net $ (2,814) $ (7,953) $ (8,410) $ (20,090)
v3.22.2.2
Segment Information - Revenue by Geographic Area (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Nov. 06, 2022
Oct. 31, 2021
Nov. 06, 2022
Oct. 31, 2021
Revenues From External Customers And Long Lived Assets [Line Items]        
Total revenue $ 676,050 $ 562,740 $ 1,943,227 $ 1,472,278
United States        
Revenues From External Customers And Long Lived Assets [Line Items]        
Total revenue 492,770 408,732 1,419,440 1,057,015
Rest of the world        
Revenues From External Customers And Long Lived Assets [Line Items]        
Total revenue $ 183,280 $ 154,008 $ 523,787 $ 415,263
v3.22.2.2
Segment Information - Long-Lived Assets by Geographic Area (Details) - USD ($)
$ in Thousands
Nov. 06, 2022
Feb. 06, 2022
Revenues From External Customers And Long Lived Assets [Line Items]    
Total long-lived assets $ 248,606 $ 195,282
United States    
Revenues From External Customers And Long Lived Assets [Line Items]    
Total long-lived assets 236,404 187,228
Rest of the world    
Revenues From External Customers And Long Lived Assets [Line Items]    
Total long-lived assets $ 12,202 $ 8,054