Fair Value as of | ||||||||||||||||||
Class of Shares | Issuance Date | Contractual Term | Number of Shares | Exercise Price per Share | July 31, 2016 | IPO Date(1) | ||||||||||||
Series A warrants | December 21, 2009 | 10 years | 683,644 | $ | 0.234 | $ | 8,259 | $ | 25,883 | |||||||||
Series A warrants | May 10, 2010 | 10 years | 85,450 | $ | 0.234 | 1,032 | 3,235 | |||||||||||
Series D warrants | November 26, 2013 | 10 years | 10,000 | $ | 7.289 | 77 | 308 | |||||||||||
Series D warrants | December 12, 2013 | 7 years | 45,000 | $ | 7.289 | 311 | 1,386 | |||||||||||
824,094 | $ | 9,679 | (2) | $ | 30,812 |
(1) | Immediately prior to the closing of the Company’s IPO. |
As of July 31, 2016 | ||||
Fair value of convertible preferred stock | $ | 12.31 | ||
Risk-free interest rate | 0.9 | % | ||
Contractual term (in years) | 3.4 | |||
Volatility | 54 | % | ||
Dividend yield | — |
As of July 31, 2016 | ||||
Fair value of convertible preferred stock | $ | 13.16 | ||
Risk-free interest rate | 1.0 | % | ||
Contractual term (in years) | 4.9 | |||
Volatility | 35 | % | ||
Dividend yield | — |
Shares Authorized | Shares Issued and Outstanding | Aggregate Liquidation Preference | |||||||
(In thousands) | |||||||||
Series A | 28,165,300 | 27,396,198 | $ | 15,494 | |||||
Series B | 16,558,441 | 16,558,441 | 25,250 | ||||||
Series C | 7,683,710 | 7,683,710 | 33,000 | ||||||
Series D | 13,912,438 | 13,857,438 | 151,500 | ||||||
Series E | 11,943,420 | 10,823,724 | 145,000 | ||||||
78,263,309 | 76,319,511 | $ | 370,244 |
Revenue | Accounts Receivable | |||||||||||||
Fiscal Year Ended July 31, | As of July 31 | |||||||||||||
Customers | 2015 | 2016 | 2017 | 2016 | 2017 | |||||||||
Partner A | 23 | % | 15 | % | 11 | % | * | * | ||||||
Partner B | 15 | % | 20 | % | 22 | % | 17 | % | 12 | % | ||||
Partner C | * | 14 | % | 18 | % | 12 | % | 14 | % | |||||
Partner D | * | * | * | 23 | % | 20 | % | |||||||
Partner E | * | 11 | % | * | 11 | % | * | |||||||
Partner F | * | 15 | % | 13 | % | * | 18 | % |
* | Less than 10% |
Fiscal Year Ended July 31, | |||||||||||
2015 | 2016 | 2017 | |||||||||
Allowance for doubtful accounts—beginning balance | $ | 400 | $ | 410 | $ | 132 | |||||
Charged to provision for doubtful accounts (credit) | 119 | (85 | ) | — | |||||||
Write-offs | (109 | ) | (193 | ) | — | ||||||
Allowance for doubtful accounts—ending balance | $ | 410 | $ | 132 | $ | 132 |
• | Persuasive evidence of an arrangement exists—The Company relies on sales agreements and purchase orders to determine the existence of an arrangement. |
• | Delivery has occurred—The Company typically recognizes product revenue upon shipment, when title and risk of loss are transferred to its Partners at that time. Service revenue is recognized as services are performed. |
• | The fee is fixed or determinable—The Company assesses whether the fee is fixed or determinable based on the payment terms associated with the transaction. Payment from Partners is not contingent upon the Partners receiving payments from end-customers. |
• | Collection is reasonably assured—The Company assesses collectability based on a credit analysis and payment history. |
Income Statement: | Year Ended July 31, 2016 | ||||||||||
As Reported | Impact of Adoption | As Adjusted | |||||||||
(in thousands, except per share data) | |||||||||||
Product revenue | $ | 350,798 | $ | 63,112 | $ | 413,910 | |||||
Support and other services | 94,130 | (4,630 | ) | 89,500 | |||||||
Total revenue | $ | 444,928 | $ | 58,482 | $ | 503,410 | |||||
Gross profit | $ | 274,141 | $ | 58,482 | $ | 332,623 | |||||
Operating expenses | $ | 439,158 | $ | (1,909 | ) | $ | 437,249 | ||||
Loss from operations | $ | (165,017 | ) | $ | 60,391 | $ | (104,626 | ) | |||
Net Loss | $ | (168,499 | ) | $ | 60,266 | $ | (108,233 | ) | |||
Basic and diluted net loss per share | $ | (3.83 | ) | $ | 1.37 | $ | (2.46 | ) |
Income Statement: | Year Ended July 31, 2017 | ||||||||||
As Reported | Impact of Adoption | As Adjusted | |||||||||
(in thousands, except per share data) | |||||||||||
Product revenue | $ | 583,011 | $ | 90,286 | $ | 673,297 | |||||
Support and other services | 183,858 | (11,252 | ) | 172,606 | |||||||
Total revenue | $ | 766,869 | $ | 79,034 | $ | 845,903 | |||||
Gross profit | $ | 439,538 | $ | 79,034 | $ | 518,572 | |||||
Operating expenses | $ | 866,489 | $ | 492 | $ | 866,981 | |||||
Loss from operations | $ | (426,951 | ) | $ | 78,542 | $ | (348,409 | ) | |||
Net Loss | $ | (458,011 | ) | $ | 78,373 | $ | (379,638 | ) | |||
Basic and diluted net loss per share | $ | (3.57 | ) | $ | 0.61 | $ | (2.96 | ) |
Balance Sheet: | As of July 31, 2016 | ||||||||||
As Reported | Impact of Adoption | As Adjusted | |||||||||
(in thousands, except per share data) | |||||||||||
Deferred commissions - current | $ | 17,864 | $ | (3,648 | ) | (1) | $ | 14,216 | |||
Deferred commissions - non-current | 19,029 | 16,277 | (1) | 35,306 | |||||||
Total deferred commissions | $ | 36,893 | $ | 12,629 | $ | 49,522 | |||||
Deferred revenue - current | $ | 130,569 | $ | (28,962 | ) | (2) | $ | 101,607 | |||
Deferred revenue - non-current | 165,896 | (49,022 | ) | (2) | 116,874 | ||||||
Total deferred revenue | $ | 296,465 | $ | (77,984 | ) | $ | 218,481 | ||||
Accrued expenses and other current liabilities | $ | 5,537 | $ | 125 | (3) | $ | 5,662 | ||||
Stockholders' deficit | $ | (376,315 | ) | $ | 90,488 | $ | (285,827 | ) |
Balance Sheet: | As of July 31, 2017 | ||||||||||
As Reported | Impact of Adoption | As Adjusted | |||||||||
(in thousands, except per share data) | |||||||||||
Deferred commissions - current | $ | 27,679 | $ | (3,836 | ) | (1) | $ | 23,843 | |||
Deferred commissions - non-current | 33,709 | 15,975 | (1) | 49,684 | |||||||
Total deferred commissions | $ | 61,388 | $ | 12,139 | $ | 73,527 | |||||
Deferred revenue - current | $ | 233,498 | $ | (63,375 | ) | (2) | $ | 170,123 | |||
Deferred revenue - non-current | 292,573 | (93,640 | ) | (2) | 198,933 | ||||||
Total deferred revenue | $ | 526,071 | $ | (157,015 | ) | $ | 369,056 | ||||
Accrued expenses and other current liabilities | $ | 9,414 | $ | 293 | (3) | $ | 9,707 | ||||
Stockholders' equity | $ | 48,202 | $ | 168,861 | $ | 217,063 |
Fiscal Year Ended July 31, | |||||||
2016 | 2017 | ||||||
Revenue | $ | 454,665 | $ | 767,681 | |||
Net loss | $ | (199,351 | ) | $ | (459,454 | ) | |
Basic and diluted net loss per share | $ | (4.36 | ) | $ | (3.53 | ) |
Cash and cash equivalents | $ | 1,051 | |
Accounts receivable | 718 | ||
Goodwill | 11,853 | ||
Intangible assets | 24,270 | ||
Other assets | 761 | ||
Deferred revenue | (6,007 | ) | |
Debt | (7,124 | ) | |
Other liabilities | (2,515 | ) | |
Total | $ | 23,007 |
Amount | Estimated Useful Life (in years) | ||||
In-process R&D | $ | 16,100 | — | ||
Developed technology | 3,570 | 5 | |||
Customer relationships | 4,600 | 6 | |||
$ | 24,270 |
Fiscal Year Ended July 31, | |||||||
2016 | 2017 | ||||||
Revenue | $ | 454,665 | $ | 767,681 | |||
Net loss | $ | (199,351 | ) | $ | (459,454 | ) | |
Basic and diluted net loss per share | $ | (4.36 | ) | $ | (3.53 | ) |
Fiscal Year Ending July 31: | |||
2018 | $ | 16,304 | |
2019 | 14,891 | ||
2020 | 12,758 | ||
2021 | 9,197 | ||
2022 | 3,535 | ||
Thereafter | 1,692 | ||
Total | $ | 58,377 |
Three Months Ended | |||||||||||||||||||||||||||||||
October 31, 2015 | January 31, 2016 | April 30, 2016 | July 31, 2016 | October 31, 2016 | January 31, 2017 | April 30, 2017 | July 31, 2017 | ||||||||||||||||||||||||
(unaudited, in thousands, except per share amounts) | |||||||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||||
Product | $ | 70,396 | $ | 81,229 | $ | 89,957 | $ | 109,216 | $ | 129,657 | $ | 138,508 | $ | 143,142 | $ | 171,704 | |||||||||||||||
Support and other services | 17,360 | 21,468 | 24,733 | 30,569 | 37,152 | 43,687 | 48,621 | 54,398 | |||||||||||||||||||||||
Total revenue | 87,756 | 102,697 | 114,690 | 139,785 | 166,809 | 182,195 | 191,763 | 226,102 | |||||||||||||||||||||||
Cost of revenue: | |||||||||||||||||||||||||||||||
Product (1) (2) | 27,657 | 29,977 | 33,427 | 42,480 | 52,210 | 58,403 | 62,593 | 76,187 | |||||||||||||||||||||||
Support and other services (1) | 7,422 | 7,959 | 9,966 | 11,899 | 17,552 | 18,443 | 20,613 | 21,330 | |||||||||||||||||||||||
Total cost of revenue | 35,079 | 37,936 | 43,393 | 54,379 | 69,762 | 76,846 | 83,206 | 97,517 | |||||||||||||||||||||||
Gross profit | 52,677 | 64,761 | 71,297 | 85,406 | 97,047 | 105,349 | 108,557 | 128,585 | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||
Sales and marketing (1) (2) | 58,599 | 66,128 | 75,849 | 87,917 | 128,775 | 111,244 | 128,007 | 132,503 | |||||||||||||||||||||||
Research and development (1) | 23,857 | 26,024 | 31,390 | 35,129 | 75,281 | 70,914 | 74,607 | 67,817 | |||||||||||||||||||||||
General and administrative (1) | 7,375 | 7,840 | 8,761 | 10,289 | 29,372 | 15,481 | 15,610 | 16,878 | |||||||||||||||||||||||
Total operating expenses | 89,831 | 99,992 | 116,000 | 133,335 | 233,428 | 197,639 | 218,224 | 217,198 | |||||||||||||||||||||||
Loss from operations | (37,154 | ) | (35,231 | ) | (44,703 | ) | (47,929 | ) | (136,381 | ) | (92,290 | ) | (109,667 | ) | (88,613 | ) | |||||||||||||||
Other income (expense)—net | (871 | ) | 2,646 | (2,106 | ) | (959 | ) | (25,712 | ) | (421 | ) | 303 | (547 | ) | |||||||||||||||||
Loss before provision for income taxes | (38,025 | ) | (32,585 | ) | (46,809 | ) | (48,888 | ) | (162,093 | ) | (92,711 | ) | (109,364 | ) | (89,160 | ) | |||||||||||||||
Provision for income taxes | 520 | 620 | 11 | 1,041 | 76 | 501 | 2,613 | 1,493 | |||||||||||||||||||||||
Net loss | $ | (38,545 | ) | $ | (33,205 | ) | $ | (46,820 | ) | $ | (49,929 | ) | $ | (162,169 | ) | $ | (93,212 | ) | $ | (111,977 | ) | $ | (90,653 | ) | |||||||
Net loss per share attributable to Class A and Class B common stockholders—basic and diluted | $ | (0.90 | ) | $ | (0.76 | ) | $ | (1.05 | ) | $ | (1.11 | ) | $ | (2.18 | ) | $ | (0.66 | ) | $ | (0.78 | ) | $ | (0.59 | ) |
Three Months Ended | |||||||||||||||||||||||||||||||
October 31, 2015 | January 31, 2016 | April 30, 2016 | July 31, 2016 | October 31, 2016 | January 31, 2017 | April 30, 2017 | July 31, 2017 | ||||||||||||||||||||||||
(unaudited, in thousands) | |||||||||||||||||||||||||||||||
Product cost of sales | $ | 109 | $ | 104 | $ | 98 | $ | 80 | $ | 966 | $ | 848 | $ | 610 | $ | 642 | |||||||||||||||
Support cost of sales | 293 | 241 | 230 | 204 | 3,350 | 2,389 | 2,471 | 2,201 | |||||||||||||||||||||||
Sales and marketing | 2,118 | 1,964 | 2,029 | 1,895 | 33,891 | 15,528 | 15,726 | 12,972 | |||||||||||||||||||||||
Research and development | 1,629 | 1,612 | 1,519 | 1,499 | 34,026 | 28,759 | 27,041 | 19,218 | |||||||||||||||||||||||
General and administrative | 1,237 | 1,029 | 1,168 | 998 | 18,495 | 5,083 | 4,503 | 2,772 | |||||||||||||||||||||||
Total | $ | 5,386 | $ | 4,950 | $ | 5,044 | $ | 4,676 | $ | 90,728 | $ | 52,607 | $ | 50,351 | $ | 37,805 |
Three Months Ended | |||||||||||||||||||||||||||||||
October 31, 2015 | January 31, 2016 | April 30, 2016 | July 31, 2016 | October 31, 2016 | January 31, 2017 | April 30, 2017 | July 31, 2017 | ||||||||||||||||||||||||
(unaudited, in thousands) | |||||||||||||||||||||||||||||||
Product cost of sales | $ | — | $ | — | $ | — | $ | — | $ | 238 | $ | 360 | $ | 358 | $ | 358 | |||||||||||||||
Sales and marketing | — | — | — | 167 | 248 | 250 | 250 | ||||||||||||||||||||||||
Total | $ | — | $ | — | $ | — | $ | — | $ | 405 | $ | 608 | $ | 608 | $ | 608 |
Number of Shares | Grant Date Fair Value per Share | |||||
Outstanding—July 31, 2016 | 12,265,369 | $ | 13.23 | |||
Granted | 12,986,597 | $ | 21.84 | |||
Released | (6,146,169 | ) | $ | 15.63 | ||
Canceled/forfeited | (1,729,707 | ) | $ | 13.57 | ||
Outstanding—July 31, 2017 | 17,376,090 | $ | 18.85 |
Fiscal Year Ended July 31, 2017 | ||
Expected term (in years) | 0.75 | |
Risk-free interest rate | 0.6 | % |
Volatility | 51.0 | % |
Dividend yield | — | % |
Options Outstanding | |||||||||||||
Number of Shares | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Life | Aggregate Intrinsic Value | ||||||||||
(In years) | (In thousands) | ||||||||||||
Outstanding—August 1, 2016 | 26,166,968 | (1) | $ | 4.39 | 7.5 | $ | 208,101 | ||||||
Options granted | 1,047,950 | 12.14 | |||||||||||
Options exercised | (4,786,381 | ) | 3.27 | ||||||||||
Options canceled/forfeited | (2,094,006 | ) | 8.89 | ||||||||||
Outstanding—July 31, 2017 | 20,334,531 | 4.59 | 6.4 | 338,787 | |||||||||
Exercisable—July 31, 2017 | 19,645,676 | 4.43 | 6.3 | 330,486 | |||||||||
Vested and expected to vest—July 31, 2017 | 20,334,531 | 4.59 | 6.4 | 338,787 |
(1) | Includes 455,000 stock options with both service and performance conditions with a weighted-average fair value per share of $3.78 (the “Performance Stock Options”). Vesting of the Performance Stock Options was subject to continuous service with the Company (the “service condition”) and satisfaction of certain liquidity events of the Company (the “performance condition”). The Company recognized cumulative stock-based compensation expense related to the Performance Stock Options in the first quarter of fiscal year 2017 as the performance condition was met upon the Company's successful IPO. The cumulative stock-based compensation expense recorded in the first quarter of fiscal 2017 was for the portion of the awards for which the relevant service condition had been satisfied and the remaining expense is being recognized over the remaining service period. |
Fiscal Year Ended July 31, | |||||||||||
2015 | 2016 | 2017 | |||||||||
Cost of revenue: | |||||||||||
Product | $ | 363 | $ | 391 | $ | 3,066 | |||||
Support and other services | 718 | 968 | 10,411 | ||||||||
Sales and marketing | 6,474 | 8,006 | 78,117 | ||||||||
Research and development | 5,411 | 6,259 | 109,044 | ||||||||
General and administrative | 4,174 | 4,432 | 30,853 | ||||||||
Total stock-based compensation expense | $ | 17,140 | $ | 20,056 | $ | 231,491 |
Fiscal Year Ended July 31, | |||||||||||
2015 | 2016 | 2017 | |||||||||
Fair value of common stock | $ | 10.29 | $ | 14.81 | $ | 12.14 | |||||
Expected term (in years) | 6.1 | 6.1 | 6.1 | ||||||||
Risk-free interest rate | 1.7 | % | 1.6 | % | 1.3 | % | |||||
Volatility | 46 | % | 42 | % | 52 | % | |||||
Dividend yield | — | — | — |
Fiscal Year Ended July 31 | |||||||||||
2015 | 2016 | 2017 | |||||||||
Numerator: | |||||||||||
Net loss | $ | (126,127 | ) | $ | (168,499 | ) | $ | (458,011 | ) | ||
Denominator: | |||||||||||
Weighted-average shares—basic and diluted | 40,509,481 | 43,970,381 | 128,295,563 | ||||||||
Net loss per share —basic and diluted | $ | (3.11 | ) | $ | (3.83 | ) | $ | (3.57 | ) |
As of July 31 | ||||||||
2015 | 2016 | 2017 | ||||||
Convertible preferred stock | 76,319,511 | 76,319,511 | — | |||||
Stock awards | 33,039,810 | 38,432,337 | 37,710,621 | |||||
Employee stock purchase plan | — | — | 1,447,385 | |||||
Common stock subject to repurchase | 2,549,102 | 954,215 | 243,148 | |||||
Convertible preferred stock warrants | 824,094 | 824,094 | 34,180 | |||||
Total | 112,732,517 | 116,530,157 | 39,435,334 |
As of July 31, 2016 | ||||
Fair value of convertible preferred stock | $ | 12.31 | ||
Risk-free interest rate | 0.9 | % | ||
Contractual term (in years) | 3.4 | |||
Volatility | 54 | % | ||
Dividend yield | — |
As of July 31, 2016 | ||||
Fair value of convertible preferred stock | $ | 13.16 | ||
Risk-free interest rate | 1.0 | % | ||
Contractual term (in years) | 4.9 | |||
Volatility | 35 | % | ||
Dividend yield | — |
• | Level I—Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; |
• | Level II—Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and |
• | Level III—Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data. |
As of July 31, 2016 | |||||||||||||||
Level I | Level II | Level III | Total | ||||||||||||
(In thousands) | |||||||||||||||
Financial Assets: | |||||||||||||||
Cash equivalents: | |||||||||||||||
Money market funds | $ | 47,305 | $ | — | $ | — | $ | 47,305 | |||||||
Commercial paper | — | 4,999 | — | 4,999 | |||||||||||
Short-term investments: | |||||||||||||||
Corporate bonds | — | 64,360 | — | 64,360 | |||||||||||
Commercial paper | — | 21,631 | — | 21,631 | |||||||||||
Total measured at fair value | 47,305 | 90,990 | — | 138,295 | |||||||||||
Cash | 46,905 | ||||||||||||||
Total cash, cash equivalents and short-term investments | $ | 185,200 | |||||||||||||
Financial Liabilities: | |||||||||||||||
Convertible preferred stock warrant liability | $ | — | $ | — | $ | 9,679 | $ | 9,679 |
As of July 31, 2017 | |||||||||||||||
Level I | Level II | Level III | Total | ||||||||||||
(In thousands) | |||||||||||||||
Financial Assets: | |||||||||||||||
Cash equivalents: | |||||||||||||||
Money market funds | $ | 34,784 | $ | — | $ | — | $ | 34,784 | |||||||
Commercial paper | — | 23,041 | — | 23,041 | |||||||||||
Short-term investments: | |||||||||||||||
Corporate bonds | — | 160,634 | — | 160,634 | |||||||||||
Commercial paper | — | 36,084 | — | 36,084 | |||||||||||
U.S. government securities | — | 13,976 | — | 13,976 | |||||||||||
Total measured at fair value | 34,784 | 233,735 | — | 268,519 | |||||||||||
Cash | 80,534 | ||||||||||||||
Total cash, cash equivalents and short-term investments | $ | 349,053 | |||||||||||||
Financial Liabilities: | |||||||||||||||
Contingent consideration | $ | — | $ | — | $ | 4,295 | $ | 4,295 |
Fiscal Year Ended July 31, | |||||||||||
2015 | 2016 | 2017 | |||||||||
Convertible preferred stock warrant liability—beginning balance | $ | 5,507 | $ | 11,683 | $ | 9,679 | |||||
Change in fair value* | 6,176 | (2,004 | ) | 21,133 | |||||||
Reclassification of unexercised warrants to APIC upon the IPO | — | — | (30,812 | ) | |||||||
Convertible preferred stock warrant liability—ending balance | $ | 11,683 | $ | 9,679 | $ | — |
* | Recognized in the consolidated statements of operations within other expense—net. |
Fiscal Year Ended July 31, 2017 | |||
Contingent consideration—beginning balance | $ | — | |
Assumed in the PernixData acquisition | 2,371 | ||
Change in fair value* | 1,924 | ||
Contingent consideration—ending balance | $ | 4,295 |
* | Recognized in the consolidated statements of operations within general and administrative expenses. |
Fiscal Year Ended July 31, | |||||||||||
2015 | 2016 | 2017 | |||||||||
Convertible preferred stock warrant liability—beginning balance | $ | 5,507 | $ | 11,683 | $ | 9,679 | |||||
Change in fair value* | 6,176 | (2,004 | ) | 21,133 | |||||||
Reclassification of unexercised warrants to APIC upon the IPO | — | — | (30,812 | ) | |||||||
Convertible preferred stock warrant liability—ending balance | $ | 11,683 | $ | 9,679 | $ | — |
* | Recognized in the consolidated statements of operations within other expense—net. |
Fiscal Year Ended July 31, 2017 | |||
Contingent consideration—beginning balance | $ | — | |
Assumed in the PernixData acquisition | 2,371 | ||
Change in fair value* | 1,924 | ||
Contingent consideration—ending balance | $ | 4,295 |
* | Recognized in the consolidated statements of operations within general and administrative expenses. |
Amount | Estimated Useful Life (in years) | ||||
In-process R&D | $ | 16,100 | — | ||
Developed technology | 3,570 | 5 | |||
Customer relationships | 4,600 | 6 | |||
$ | 24,270 |
Fiscal Year Ended July 31, | |||||||||||
2015 | 2016 | 2017 | |||||||||
Domestic | $ | (84,327 | ) | $ | (104,339 | ) | $ | (350,759 | ) | ||
Foreign | (40,256 | ) | (61,968 | ) | (102,569 | ) | |||||
Loss before provision for income taxes | $ | (124,583 | ) | $ | (166,307 | ) | $ | (453,328 | ) |
Fiscal Year Ended July 31, | |||||||||||
2015 | 2016 | 2017 | |||||||||
Current: | |||||||||||
State and local | $ | 56 | $ | 140 | $ | 193 | |||||
Foreign | 1,655 | 3,047 | 8,027 | ||||||||
Total current taxes | 1,711 | 3,187 | 8,220 | ||||||||
Deferred: | |||||||||||
U.S. federal | — | — | (1,342 | ) | |||||||
State and local | — | — | 13 | ||||||||
Foreign | (167 | ) | (995 | ) | (2,208 | ) | |||||
Total deferred taxes | (167 | ) | (995 | ) | (3,537 | ) | |||||
Provision for income taxes | $ | 1,544 | $ | 2,192 | $ | 4,683 |
Fiscal Year Ended July 31, | |||||||||||
2015 | 2016 | 2017 | |||||||||
U.S. federal income tax at statutory rate | $ | (42,351 | ) | $ | (56,545 | ) | $ | (153,965 | ) | ||
Change in valuation allowance | 24,030 | 31,700 | 102,549 | ||||||||
Effect of foreign operations | 15,168 | 23,121 | 27,652 | ||||||||
Stock-based compensation | 2,152 | 3,655 | 6,701 | ||||||||
Warrant revaluation | 2,100 | (681 | ) | 7,185 | |||||||
Non-deductible expenses | 389 | 802 | 1,693 | ||||||||
State income taxes | 56 | 140 | 206 | ||||||||
Transfer pricing adjustments | — | — | 11,822 | ||||||||
Other | — | — | 840 | ||||||||
Total | $ | 1,544 | $ | 2,192 | $ | 4,683 |
As of July 31, | |||||||
2016 | 2017 | ||||||
Deferred tax assets: | |||||||
Net operating loss carryforward | $ | 81,546 | $ | 135,929 | |||
Deferred revenue | 9,935 | 37,274 | |||||
Tax credit carryforward | 7,304 | 13,100 | |||||
Property and equipment | — | 1,118 | |||||
Accruals and reserves | 1,938 | 7,427 | |||||
Stock compensation expense | 5,780 | 27,512 | |||||
Total deferred tax assets | 106,503 | 222,360 | |||||
Deferred tax liabilities: | |||||||
Deferred commission expense | (13,483 | ) | (22,535 | ) | |||
Other | (424 | ) | (558 | ) | |||
Total deferred tax liabilities | (13,907 | ) | (23,093 | ) | |||
Valuation allowance | (91,346 | ) | (196,091 | ) | |||
Net deferred tax assets | $ | 1,250 | $ | 3,176 |
As of July 31, | |||||||
2016 | 2017 | ||||||
Non-current deferred tax assets | $ | 1,250 | $ | 3,176 | |||
Current deferred tax liabilities | — | — | |||||
Net deferred tax assets | $ | 1,250 | $ | 3,176 |
Fiscal Year Ended July 31, | |||||||
2016 | 2017 | ||||||
Balance at the beginning of the year | $ | 28,311 | $ | 19,711 | |||
Increases related to current year tax positions | 1,654 | 22,571 | |||||
Increases related to prior year tax positions | 972 | 373 | |||||
Decreases related to prior year tax positions | (3,942 | ) | — | ||||
Settlements with tax authorities | (7,284 | ) | — | ||||
Balance at the end of the year | $ | 19,711 | $ | 42,655 |
As of July 31 | |||
2017 | |||
Due within 1 year | $ | 151,014 | |
Due after 1 year through 3 years | 59,680 | ||
Total | $ | 210,694 |
Fiscal Year Ending July 31: | |||
2018 | $ | 16,304 | |
2019 | 14,891 | ||
2020 | 12,758 | ||
2021 | 9,197 | ||
2022 | 3,535 | ||
Thereafter | 1,692 | ||
Total | $ | 58,377 |
Estimated Useful Life | As of July 31 | ||||||||
2016 | 2017 | ||||||||
(In months) | |||||||||
Computer, production, engineering and other equipment | 36 | $ | 54,161 | $ | 85,280 | ||||
Demonstration units | 12 | 33,184 | 46,387 | ||||||
Leasehold improvements | ** | 6,619 | 10,562 | ||||||
Furniture and fixtures | 60 | 3,641 | 4,744 | ||||||
Total property and equipment—gross | 97,605 | 146,973 | |||||||
Less accumulated depreciation and amortization | (55,387 | ) | (88,901 | ) | |||||
Total property and equipment—net | $ | 42,218 | $ | 58,072 |
Fiscal Year Ended July 31, | |||||||||||
2015 | 2016 | 2017 | |||||||||
U.S. | $ | 161,439 | $ | 280,800 | $ | 462,770 | |||||
Europe, the Middle East and Africa | 43,526 | 81,320 | 139,170 | ||||||||
Asia-Pacific | 28,386 | 63,610 | 131,921 | ||||||||
Other Americas | 8,081 | 19,198 | 33,008 | ||||||||
Total revenue | $ | 241,432 | $ | 444,928 | $ | 766,869 |
• | Persuasive evidence of an arrangement exists—The Company relies on sales agreements and purchase orders to determine the existence of an arrangement. |
• | Delivery has occurred—The Company typically recognizes product revenue upon shipment, when title and risk of loss are transferred to its Partners at that time. Service revenue is recognized as services are performed. |
• | The fee is fixed or determinable—The Company assesses whether the fee is fixed or determinable based on the payment terms associated with the transaction. Payment from Partners is not contingent upon the Partners receiving payments from end-customers. |
• | Collection is reasonably assured—The Company assesses collectability based on a credit analysis and payment history. |
Fiscal Year Ended July 31, | |||||||||||
2015 | 2016 | 2017 | |||||||||
Allowance for doubtful accounts—beginning balance | $ | 400 | $ | 410 | $ | 132 | |||||
Charged to provision for doubtful accounts (credit) | 119 | (85 | ) | — | |||||||
Write-offs | (109 | ) | (193 | ) | — | ||||||
Allowance for doubtful accounts—ending balance | $ | 410 | $ | 132 | $ | 132 |
As of July 31 | |||||||
2016 | 2017 | ||||||
Accrued commissions | $ | 14,203 | $ | 20,388 | |||
Contributions to ESPP withheld | — | 14,371 | |||||
Accrued bonus | 3,592 | 7,342 | |||||
Accrued vacation | 3,490 | 6,286 | |||||
Payroll taxes payable | 1,234 | 3,434 | |||||
Other | 2,028 | 5,700 | |||||
Total accrued compensation and benefits | $ | 24,547 | $ | 57,521 |
As of July 31 | |||||||
2016 | 2017 | ||||||
Accrued professional services | $ | 3,585 | $ | 4,167 | |||
Income taxes payable | 1,417 | 3,580 | |||||
Other | 535 | 1,667 | |||||
Total accrued expenses and other current liabilities | $ | 5,537 | $ | 9,414 |
As of July 31 | ||||||||
2015 | 2016 | 2017 | ||||||
Convertible preferred stock | 76,319,511 | 76,319,511 | — | |||||
Stock awards | 33,039,810 | 38,432,337 | 37,710,621 | |||||
Employee stock purchase plan | — | — | 1,447,385 | |||||
Common stock subject to repurchase | 2,549,102 | 954,215 | 243,148 | |||||
Convertible preferred stock warrants | 824,094 | 824,094 | 34,180 | |||||
Total | 112,732,517 | 116,530,157 | 39,435,334 |
Fiscal Year Ended July 31, | |||||||||||
2015 | 2016 | 2017 | |||||||||
Current: | |||||||||||
State and local | $ | 56 | $ | 140 | $ | 193 | |||||
Foreign | 1,655 | 3,047 | 8,027 | ||||||||
Total current taxes | 1,711 | 3,187 | 8,220 | ||||||||
Deferred: | |||||||||||
U.S. federal | — | — | (1,342 | ) | |||||||
State and local | — | — | 13 | ||||||||
Foreign | (167 | ) | (995 | ) | (2,208 | ) | |||||
Total deferred taxes | (167 | ) | (995 | ) | (3,537 | ) | |||||
Provision for income taxes | $ | 1,544 | $ | 2,192 | $ | 4,683 |
Three Months Ended | |||||||||||||||||||||||||||||||
October 31, 2015 | January 31, 2016 | April 30, 2016 | July 31, 2016 | October 31, 2016 | January 31, 2017 | April 30, 2017 | July 31, 2017 | ||||||||||||||||||||||||
(unaudited, in thousands, except per share amounts) | |||||||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||||
Product | $ | 70,396 | $ | 81,229 | $ | 89,957 | $ | 109,216 | $ | 129,657 | $ | 138,508 | $ | 143,142 | $ | 171,704 | |||||||||||||||
Support and other services | 17,360 | 21,468 | 24,733 | 30,569 | 37,152 | 43,687 | 48,621 | 54,398 | |||||||||||||||||||||||
Total revenue | 87,756 | 102,697 | 114,690 | 139,785 | 166,809 | 182,195 | 191,763 | 226,102 | |||||||||||||||||||||||
Cost of revenue: | |||||||||||||||||||||||||||||||
Product (1) (2) | 27,657 | 29,977 | 33,427 | 42,480 | 52,210 | 58,403 | 62,593 | 76,187 | |||||||||||||||||||||||
Support and other services (1) | 7,422 | 7,959 | 9,966 | 11,899 | 17,552 | 18,443 | 20,613 | 21,330 | |||||||||||||||||||||||
Total cost of revenue | 35,079 | 37,936 | 43,393 | 54,379 | 69,762 | 76,846 | 83,206 | 97,517 | |||||||||||||||||||||||
Gross profit | 52,677 | 64,761 | 71,297 | 85,406 | 97,047 | 105,349 | 108,557 | 128,585 | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||
Sales and marketing (1) (2) | 58,599 | 66,128 | 75,849 | 87,917 | 128,775 | 111,244 | 128,007 | 132,503 | |||||||||||||||||||||||
Research and development (1) | 23,857 | 26,024 | 31,390 | 35,129 | 75,281 | 70,914 | 74,607 | 67,817 | |||||||||||||||||||||||
General and administrative (1) | 7,375 | 7,840 | 8,761 | 10,289 | 29,372 | 15,481 | 15,610 | 16,878 | |||||||||||||||||||||||
Total operating expenses | 89,831 | 99,992 | 116,000 | 133,335 | 233,428 | 197,639 | 218,224 | 217,198 | |||||||||||||||||||||||
Loss from operations | (37,154 | ) | (35,231 | ) | (44,703 | ) | (47,929 | ) | (136,381 | ) | (92,290 | ) | (109,667 | ) | (88,613 | ) | |||||||||||||||
Other income (expense)—net | (871 | ) | 2,646 | (2,106 | ) | (959 | ) | (25,712 | ) | (421 | ) | 303 | (547 | ) | |||||||||||||||||
Loss before provision for income taxes | (38,025 | ) | (32,585 | ) | (46,809 | ) | (48,888 | ) | (162,093 | ) | (92,711 | ) | (109,364 | ) | (89,160 | ) | |||||||||||||||
Provision for income taxes | 520 | 620 | 11 | 1,041 | 76 | 501 | 2,613 | 1,493 | |||||||||||||||||||||||
Net loss | $ | (38,545 | ) | $ | (33,205 | ) | $ | (46,820 | ) | $ | (49,929 | ) | $ | (162,169 | ) | $ | (93,212 | ) | $ | (111,977 | ) | $ | (90,653 | ) | |||||||
Net loss per share attributable to Class A and Class B common stockholders—basic and diluted | $ | (0.90 | ) | $ | (0.76 | ) | $ | (1.05 | ) | $ | (1.11 | ) | $ | (2.18 | ) | $ | (0.66 | ) | $ | (0.78 | ) | $ | (0.59 | ) |
Three Months Ended | |||||||||||||||||||||||||||||||
October 31, 2015 | January 31, 2016 | April 30, 2016 | July 31, 2016 | October 31, 2016 | January 31, 2017 | April 30, 2017 | July 31, 2017 | ||||||||||||||||||||||||
(unaudited, in thousands) | |||||||||||||||||||||||||||||||
Product cost of sales | $ | 109 | $ | 104 | $ | 98 | $ | 80 | $ | 966 | $ | 848 | $ | 610 | $ | 642 | |||||||||||||||
Support cost of sales | 293 | 241 | 230 | 204 | 3,350 | 2,389 | 2,471 | 2,201 | |||||||||||||||||||||||
Sales and marketing | 2,118 | 1,964 | 2,029 | 1,895 | 33,891 | 15,528 | 15,726 | 12,972 | |||||||||||||||||||||||
Research and development | 1,629 | 1,612 | 1,519 | 1,499 | 34,026 | 28,759 | 27,041 | 19,218 | |||||||||||||||||||||||
General and administrative | 1,237 | 1,029 | 1,168 | 998 | 18,495 | 5,083 | 4,503 | 2,772 | |||||||||||||||||||||||
Total | $ | 5,386 | $ | 4,950 | $ | 5,044 | $ | 4,676 | $ | 90,728 | $ | 52,607 | $ | 50,351 | $ | 37,805 |
Three Months Ended | |||||||||||||||||||||||||||||||
October 31, 2015 | January 31, 2016 | April 30, 2016 | July 31, 2016 | October 31, 2016 | January 31, 2017 | April 30, 2017 | July 31, 2017 | ||||||||||||||||||||||||
(unaudited, in thousands) | |||||||||||||||||||||||||||||||
Product cost of sales | $ | — | $ | — | $ | — | $ | — | $ | 238 | $ | 360 | $ | 358 | $ | 358 | |||||||||||||||
Sales and marketing | — | — | — | 167 | 248 | 250 | 250 | ||||||||||||||||||||||||
Total | $ | — | $ | — | $ | — | $ | — | $ | 405 | $ | 608 | $ | 608 | $ | 608 |
As of July 31, | |||||||
2016 | 2017 | ||||||
Deferred tax assets: | |||||||
Net operating loss carryforward | $ | 81,546 | $ | 135,929 | |||
Deferred revenue | 9,935 | 37,274 | |||||
Tax credit carryforward | 7,304 | 13,100 | |||||
Property and equipment | — | 1,118 | |||||
Accruals and reserves | 1,938 | 7,427 | |||||
Stock compensation expense | 5,780 | 27,512 | |||||
Total deferred tax assets | 106,503 | 222,360 | |||||
Deferred tax liabilities: | |||||||
Deferred commission expense | (13,483 | ) | (22,535 | ) | |||
Other | (424 | ) | (558 | ) | |||
Total deferred tax liabilities | (13,907 | ) | (23,093 | ) | |||
Valuation allowance | (91,346 | ) | (196,091 | ) | |||
Net deferred tax assets | $ | 1,250 | $ | 3,176 |
As of July 31, | |||||||
2016 | 2017 | ||||||
Non-current deferred tax assets | $ | 1,250 | $ | 3,176 | |||
Current deferred tax liabilities | — | — | |||||
Net deferred tax assets | $ | 1,250 | $ | 3,176 |
Fiscal Year Ended July 31 | |||||||||||
2015 | 2016 | 2017 | |||||||||
Numerator: | |||||||||||
Net loss | $ | (126,127 | ) | $ | (168,499 | ) | $ | (458,011 | ) | ||
Denominator: | |||||||||||
Weighted-average shares—basic and diluted | 40,509,481 | 43,970,381 | 128,295,563 | ||||||||
Net loss per share —basic and diluted | $ | (3.11 | ) | $ | (3.83 | ) | $ | (3.57 | ) |
Fiscal Year Ended July 31, | |||||||||||
2015 | 2016 | 2017 | |||||||||
U.S. federal income tax at statutory rate | $ | (42,351 | ) | $ | (56,545 | ) | $ | (153,965 | ) | ||
Change in valuation allowance | 24,030 | 31,700 | 102,549 | ||||||||
Effect of foreign operations | 15,168 | 23,121 | 27,652 | ||||||||
Stock-based compensation | 2,152 | 3,655 | 6,701 | ||||||||
Warrant revaluation | 2,100 | (681 | ) | 7,185 | |||||||
Non-deductible expenses | 389 | 802 | 1,693 | ||||||||
State income taxes | 56 | 140 | 206 | ||||||||
Transfer pricing adjustments | — | — | 11,822 | ||||||||
Other | — | — | 840 | ||||||||
Total | $ | 1,544 | $ | 2,192 | $ | 4,683 |
Fiscal Year Ended July 31, | |||||||||||
2015 | 2016 | 2017 | |||||||||
Cost of revenue: | |||||||||||
Product | $ | 363 | $ | 391 | $ | 3,066 | |||||
Support and other services | 718 | 968 | 10,411 | ||||||||
Sales and marketing | 6,474 | 8,006 | 78,117 | ||||||||
Research and development | 5,411 | 6,259 | 109,044 | ||||||||
General and administrative | 4,174 | 4,432 | 30,853 | ||||||||
Total stock-based compensation expense | $ | 17,140 | $ | 20,056 | $ | 231,491 |
As of July 31, 2016 | |||||||||||||||
Level I | Level II | Level III | Total | ||||||||||||
(In thousands) | |||||||||||||||
Financial Assets: | |||||||||||||||
Cash equivalents: | |||||||||||||||
Money market funds | $ | 47,305 | $ | — | $ | — | $ | 47,305 | |||||||
Commercial paper | — | 4,999 | — | 4,999 | |||||||||||
Short-term investments: | |||||||||||||||
Corporate bonds | — | 64,360 | — | 64,360 | |||||||||||
Commercial paper | — | 21,631 | — | 21,631 | |||||||||||
Total measured at fair value | 47,305 | 90,990 | — | 138,295 | |||||||||||
Cash | 46,905 | ||||||||||||||
Total cash, cash equivalents and short-term investments | $ | 185,200 | |||||||||||||
Financial Liabilities: | |||||||||||||||
Convertible preferred stock warrant liability | $ | — | $ | — | $ | 9,679 | $ | 9,679 |
As of July 31, 2017 | |||||||||||||||
Level I | Level II | Level III | Total | ||||||||||||
(In thousands) | |||||||||||||||
Financial Assets: | |||||||||||||||
Cash equivalents: | |||||||||||||||
Money market funds | $ | 34,784 | $ | — | $ | — | $ | 34,784 | |||||||
Commercial paper | — | 23,041 | — | 23,041 | |||||||||||
Short-term investments: | |||||||||||||||
Corporate bonds | — | 160,634 | — | 160,634 | |||||||||||
Commercial paper | — | 36,084 | — | 36,084 | |||||||||||
U.S. government securities | — | 13,976 | — | 13,976 | |||||||||||
Total measured at fair value | 34,784 | 233,735 | — | 268,519 | |||||||||||
Cash | 80,534 | ||||||||||||||
Total cash, cash equivalents and short-term investments | $ | 349,053 | |||||||||||||
Financial Liabilities: | |||||||||||||||
Contingent consideration | $ | — | $ | — | $ | 4,295 | $ | 4,295 |
As of July 31, 2017 | |||
Indefinite-lived intangible asset: | |||
In-process R&D | $ | 16,100 | |
Finite-lived intangible assets: | |||
Developed technology | 7,300 | ||
Customer relationships | 4,830 | ||
Total finite-lived intangible assets, gross | 12,130 | ||
Total intangible assets, gross | 28,230 | ||
Less: | |||
Accumulated amortization of developed technology | (1,314 | ) | |
Accumulated amortization of customer relationships | (915 | ) | |
Total accumulated amortization | (2,229 | ) | |
Intangible assets, net | $ | 26,001 |
Fiscal Year Ended July 31, 2017 | |||
Intangible assets, net—beginning balance | $ | — | |
Acquired in the Calm Acquisition | 3,960 | ||
Acquired in the PernixData Acquisition | 24,270 | ||
Amortization of intangible assets * | (2,229 | ) | |
Intangible assets, net—ending balance | $ | 26,001 |
Fiscal Year Ended July 31, | |||||||||||
2015 | 2016 | 2017 | |||||||||
Domestic | $ | (84,327 | ) | $ | (104,339 | ) | $ | (350,759 | ) | ||
Foreign | (40,256 | ) | (61,968 | ) | (102,569 | ) | |||||
Loss before provision for income taxes | $ | (124,583 | ) | $ | (166,307 | ) | $ | (453,328 | ) |
As of July 31, 2017 | |||
Indefinite-lived intangible asset: | |||
In-process R&D | $ | 16,100 | |
Finite-lived intangible assets: | |||
Developed technology | 7,300 | ||
Customer relationships | 4,830 | ||
Total finite-lived intangible assets, gross | 12,130 | ||
Total intangible assets, gross | 28,230 | ||
Less: | |||
Accumulated amortization of developed technology | (1,314 | ) | |
Accumulated amortization of customer relationships | (915 | ) | |
Total accumulated amortization | (2,229 | ) | |
Intangible assets, net | $ | 26,001 |
Fiscal Year Ended July 31, 2017 | |||
Intangible assets, net—beginning balance | $ | — | |
Acquired in the Calm Acquisition | 3,960 | ||
Acquired in the PernixData Acquisition | 24,270 | ||
Amortization of intangible assets * | (2,229 | ) | |
Intangible assets, net—ending balance | $ | 26,001 |
* | Represents amortization expense of finite-lived intangible assets recognized in the consolidated statement of operations during the year within product cost of revenue and sales and marketing expenses. |
Income Statement: | Year Ended July 31, 2016 | ||||||||||
As Reported | Impact of Adoption | As Adjusted | |||||||||
(in thousands, except per share data) | |||||||||||
Product revenue | $ | 350,798 | $ | 63,112 | $ | 413,910 | |||||
Support and other services | 94,130 | (4,630 | ) | 89,500 | |||||||
Total revenue | $ | 444,928 | $ | 58,482 | $ | 503,410 | |||||
Gross profit | $ | 274,141 | $ | 58,482 | $ | 332,623 | |||||
Operating expenses | $ | 439,158 | $ | (1,909 | ) | $ | 437,249 | ||||
Loss from operations | $ | (165,017 | ) | $ | 60,391 | $ | (104,626 | ) | |||
Net Loss | $ | (168,499 | ) | $ | 60,266 | $ | (108,233 | ) | |||
Basic and diluted net loss per share | $ | (3.83 | ) | $ | 1.37 | $ | (2.46 | ) |
Income Statement: | Year Ended July 31, 2017 | ||||||||||
As Reported | Impact of Adoption | As Adjusted | |||||||||
(in thousands, except per share data) | |||||||||||
Product revenue | $ | 583,011 | $ | 90,286 | $ | 673,297 | |||||
Support and other services | 183,858 | (11,252 | ) | 172,606 | |||||||
Total revenue | $ | 766,869 | $ | 79,034 | $ | 845,903 | |||||
Gross profit | $ | 439,538 | $ | 79,034 | $ | 518,572 | |||||
Operating expenses | $ | 866,489 | $ | 492 | $ | 866,981 | |||||
Loss from operations | $ | (426,951 | ) | $ | 78,542 | $ | (348,409 | ) | |||
Net Loss | $ | (458,011 | ) | $ | 78,373 | $ | (379,638 | ) | |||
Basic and diluted net loss per share | $ | (3.57 | ) | $ | 0.61 | $ | (2.96 | ) |
Balance Sheet: | As of July 31, 2016 | ||||||||||
As Reported | Impact of Adoption | As Adjusted | |||||||||
(in thousands, except per share data) | |||||||||||
Deferred commissions - current | $ | 17,864 | $ | (3,648 | ) | (1) | $ | 14,216 | |||
Deferred commissions - non-current | 19,029 | 16,277 | (1) | 35,306 | |||||||
Total deferred commissions | $ | 36,893 | $ | 12,629 | $ | 49,522 | |||||
Deferred revenue - current | $ | 130,569 | $ | (28,962 | ) | (2) | $ | 101,607 | |||
Deferred revenue - non-current | 165,896 | (49,022 | ) | (2) | 116,874 | ||||||
Total deferred revenue | $ | 296,465 | $ | (77,984 | ) | $ | 218,481 | ||||
Accrued expenses and other current liabilities | $ | 5,537 | $ | 125 | (3) | $ | 5,662 | ||||
Stockholders' deficit | $ | (376,315 | ) | $ | 90,488 | $ | (285,827 | ) |
Balance Sheet: | As of July 31, 2017 | ||||||||||
As Reported | Impact of Adoption | As Adjusted | |||||||||
(in thousands, except per share data) | |||||||||||
Deferred commissions - current | $ | 27,679 | $ | (3,836 | ) | (1) | $ | 23,843 | |||
Deferred commissions - non-current | 33,709 | 15,975 | (1) | 49,684 | |||||||
Total deferred commissions | $ | 61,388 | $ | 12,139 | $ | 73,527 | |||||
Deferred revenue - current | $ | 233,498 | $ | (63,375 | ) | (2) | $ | 170,123 | |||
Deferred revenue - non-current | 292,573 | (93,640 | ) | (2) | 198,933 | ||||||
Total deferred revenue | $ | 526,071 | $ | (157,015 | ) | $ | 369,056 | ||||
Accrued expenses and other current liabilities | $ | 9,414 | $ | 293 | (3) | $ | 9,707 | ||||
Stockholders' equity | $ | 48,202 | $ | 168,861 | $ | 217,063 |
Number of Shares | Grant Date Fair Value per Share | |||||
Outstanding—July 31, 2016 | 12,265,369 | $ | 13.23 | |||
Granted | 12,986,597 | $ | 21.84 | |||
Released | (6,146,169 | ) | $ | 15.63 | ||
Canceled/forfeited | (1,729,707 | ) | $ | 13.57 | ||
Outstanding—July 31, 2017 | 17,376,090 | $ | 18.85 |
Cash and cash equivalents | $ | 1,051 | |
Accounts receivable | 718 | ||
Goodwill | 11,853 | ||
Intangible assets | 24,270 | ||
Other assets | 761 | ||
Deferred revenue | (6,007 | ) | |
Debt | (7,124 | ) | |
Other liabilities | (2,515 | ) | |
Total | $ | 23,007 |
Options Outstanding | |||||||||||||
Number of Shares | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Life | Aggregate Intrinsic Value | ||||||||||
(In years) | (In thousands) | ||||||||||||
Outstanding—August 1, 2016 | 26,166,968 | (1) | $ | 4.39 | 7.5 | $ | 208,101 | ||||||
Options granted | 1,047,950 | 12.14 | |||||||||||
Options exercised | (4,786,381 | ) | 3.27 | ||||||||||
Options canceled/forfeited | (2,094,006 | ) | 8.89 | ||||||||||
Outstanding—July 31, 2017 | 20,334,531 | 4.59 | 6.4 | 338,787 | |||||||||
Exercisable—July 31, 2017 | 19,645,676 | 4.43 | 6.3 | 330,486 | |||||||||
Vested and expected to vest—July 31, 2017 | 20,334,531 | 4.59 | 6.4 | 338,787 |
(1) | Includes 455,000 stock options with both service and performance conditions with a weighted-average fair value per share of $3.78 (the “Performance Stock Options”). Vesting of the Performance Stock Options was subject to continuous service with the Company (the “service condition”) and satisfaction of certain liquidity events of the Company (the “performance condition”). The Company recognized cumulative stock-based compensation expense related to the Performance Stock Options in the first quarter of fiscal year 2017 as the performance condition was met upon the Company's successful IPO. The cumulative stock-based compensation expense recorded in the first quarter of fiscal 2017 was for the portion of the awards for which the relevant service condition had been satisfied and the remaining expense is being recognized over the remaining service period. |
Fiscal Year Ended July 31, 2017 | ||
Expected term (in years) | 0.75 | |
Risk-free interest rate | 0.6 | % |
Volatility | 51.0 | % |
Dividend yield | — | % |
Fiscal Year Ended July 31, | |||||||||||
2015 | 2016 | 2017 | |||||||||
Fair value of common stock | $ | 10.29 | $ | 14.81 | $ | 12.14 | |||||
Expected term (in years) | 6.1 | 6.1 | 6.1 | ||||||||
Risk-free interest rate | 1.7 | % | 1.6 | % | 1.3 | % | |||||
Volatility | 46 | % | 42 | % | 52 | % | |||||
Dividend yield | — | — | — |
July 31, 2017 | ||
Shares reserved for future equity grants | 15,149,589 | |
Shares underlying outstanding stock options | 20,334,531 | |
Shares underlying outstanding restricted stock units | 17,376,090 | |
Shares reserved for future employee stock purchase plan awards | 2,553,946 | |
Shares underlying outstanding common stock warrants | 34,180 | |
Total | 55,448,336 |
Fair Value as of | ||||||||||||||||||
Class of Shares | Issuance Date | Contractual Term | Number of Shares | Exercise Price per Share | July 31, 2016 | IPO Date(1) | ||||||||||||
Series A warrants | December 21, 2009 | 10 years | 683,644 | $ | 0.234 | $ | 8,259 | $ | 25,883 | |||||||||
Series A warrants | May 10, 2010 | 10 years | 85,450 | $ | 0.234 | 1,032 | 3,235 | |||||||||||
Series D warrants | November 26, 2013 | 10 years | 10,000 | $ | 7.289 | 77 | 308 | |||||||||||
Series D warrants | December 12, 2013 | 7 years | 45,000 | $ | 7.289 | 311 | 1,386 | |||||||||||
824,094 | $ | 9,679 | (2) | $ | 30,812 |
Fiscal Year Ended July 31, | |||||||
2016 | 2017 | ||||||
Balance at the beginning of the year | $ | 28,311 | $ | 19,711 | |||
Increases related to current year tax positions | 1,654 | 22,571 | |||||
Increases related to prior year tax positions | 972 | 373 | |||||
Decreases related to prior year tax positions | (3,942 | ) | — | ||||
Settlements with tax authorities | (7,284 | ) | — | ||||
Balance at the end of the year | $ | 19,711 | $ | 42,655 |
Fiscal Year Ending July 31: | (In thousands) | ||
2018 | $ | 2,220 | |
2019 | 2,201 | ||
2020 | 2,201 | ||
2021 | 2,201 | ||
Thereafter | 1,078 | ||
Total | $ | 9,901 |
Revenue | Accounts Receivable | |||||||||||||
Fiscal Year Ended July 31, | As of July 31 | |||||||||||||
Customers | 2015 | 2016 | 2017 | 2016 | 2017 | |||||||||
Partner A | 23 | % | 15 | % | 11 | % | * | * | ||||||
Partner B | 15 | % | 20 | % | 22 | % | 17 | % | 12 | % | ||||
Partner C | * | 14 | % | 18 | % | 12 | % | 14 | % | |||||
Partner D | * | * | * | 23 | % | 20 | % | |||||||
Partner E | * | 11 | % | * | 11 | % | * | |||||||
Partner F | * | 15 | % | 13 | % | * | 18 | % |
* | Less than 10% |
Fiscal Year Ended July 31, | |||||||||||
2015 | 2016 | 2017 | |||||||||
U.S. | $ | 161,439 | $ | 280,800 | $ | 462,770 | |||||
Europe, the Middle East and Africa | 43,526 | 81,320 | 139,170 | ||||||||
Asia-Pacific | 28,386 | 63,610 | 131,921 | ||||||||
Other Americas | 8,081 | 19,198 | 33,008 | ||||||||
Total revenue | $ | 241,432 | $ | 444,928 | $ | 766,869 |
July 31, 2017 | ||
Shares reserved for future equity grants | 15,149,589 | |
Shares underlying outstanding stock options | 20,334,531 | |
Shares underlying outstanding restricted stock units | 17,376,090 | |
Shares reserved for future employee stock purchase plan awards | 2,553,946 | |
Shares underlying outstanding common stock warrants | 34,180 | |
Total | 55,448,336 |
As of July 31 | |||
2017 | |||
Due within 1 year | $ | 151,014 | |
Due after 1 year through 3 years | 59,680 | ||
Total | $ | 210,694 |
Estimated Useful Life | As of July 31 | ||||||||
2016 | 2017 | ||||||||
(In months) | |||||||||
Computer, production, engineering and other equipment | 36 | $ | 54,161 | $ | 85,280 | ||||
Demonstration units | 12 | 33,184 | 46,387 | ||||||
Leasehold improvements | ** | 6,619 | 10,562 | ||||||
Furniture and fixtures | 60 | 3,641 | 4,744 | ||||||
Total property and equipment—gross | 97,605 | 146,973 | |||||||
Less accumulated depreciation and amortization | (55,387 | ) | (88,901 | ) | |||||
Total property and equipment—net | $ | 42,218 | $ | 58,072 |
As of July 31, 2017 | |||
Indefinite-lived intangible asset: | |||
In-process R&D | $ | 16,100 | |
Finite-lived intangible assets: | |||
Developed technology | 7,300 | ||
Customer relationships | 4,830 | ||
Total finite-lived intangible assets, gross | 12,130 | ||
Total intangible assets, gross | 28,230 | ||
Less: | |||
Accumulated amortization of developed technology | (1,314 | ) | |
Accumulated amortization of customer relationships | (915 | ) | |
Total accumulated amortization | (2,229 | ) | |
Intangible assets, net | $ | 26,001 |
Fiscal Year Ended July 31, 2017 | |||
Intangible assets, net—beginning balance | $ | — | |
Acquired in the Calm Acquisition | 3,960 | ||
Acquired in the PernixData Acquisition | 24,270 | ||
Amortization of intangible assets * | (2,229 | ) | |
Intangible assets, net—ending balance | $ | 26,001 |
* | Represents amortization expense of finite-lived intangible assets recognized in the consolidated statement of operations during the year within product cost of revenue and sales and marketing expenses. |
Fiscal Year Ending July 31: | (In thousands) | ||
2018 | $ | 2,220 | |
2019 | 2,201 | ||
2020 | 2,201 | ||
2021 | 2,201 | ||
Thereafter | 1,078 | ||
Total | $ | 9,901 |
Fiscal Year Ended July 31, 2017 | |||
Goodwill—beginning balance | $ | — | |
Acquired in the Calm Acquisition | 4,819 | ||
Acquired in the PernixData Acquisition | 11,853 | ||
Goodwill—ending balance | $ | 16,672 |
As of July 31 | |||||||
2016 | 2017 | ||||||
Accrued commissions | $ | 14,203 | $ | 20,388 | |||
Contributions to ESPP withheld | — | 14,371 | |||||
Accrued bonus | 3,592 | 7,342 | |||||
Accrued vacation | 3,490 | 6,286 | |||||
Payroll taxes payable | 1,234 | 3,434 | |||||
Other | 2,028 | 5,700 | |||||
Total accrued compensation and benefits | $ | 24,547 | $ | 57,521 |
As of July 31 | |||||||
2016 | 2017 | ||||||
Accrued professional services | $ | 3,585 | $ | 4,167 | |||
Income taxes payable | 1,417 | 3,580 | |||||
Other | 535 | 1,667 | |||||
Total accrued expenses and other current liabilities | $ | 5,537 | $ | 9,414 |
Shares Authorized | Shares Issued and Outstanding | Aggregate Liquidation Preference | |||||||
(In thousands) | |||||||||
Series A | 28,165,300 | 27,396,198 | $ | 15,494 | |||||
Series B | 16,558,441 | 16,558,441 | 25,250 | ||||||
Series C | 7,683,710 | 7,683,710 | 33,000 | ||||||
Series D | 13,912,438 | 13,857,438 | 151,500 | ||||||
Series E | 11,943,420 | 10,823,724 | 145,000 | ||||||
78,263,309 | 76,319,511 | $ | 370,244 |