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Common Stock (Tables)
 9 Months Ended
Oct. 31, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Summary of Reserved Shares of Authorized but Unissued Common Stock

As of January 31, 2017 and October 31, 2017 the Company had reserved the following shares of authorized but unissued common stock:

 

 

 

As of January 31,

 

 

As of October 31,

 

 

 

2017

 

 

2017

 

 

 

(in shares)

 

Convertible preferred stock

 

 

10,610,966

 

 

 

—

 

Options and RSUs outstanding and shares available for grant

 

 

5,814,388

 

 

 

12,173,599

 

Convertible preferred stock warrants

 

 

40,250

 

 

 

—

 

Common stock warrants

 

 

25,000

 

 

 

1,897,562

 

Total

 

 

16,490,604

 

 

 

14,071,161

 

 
Schedule of Weighted-Average Assumptions Used to Estimate Fair Value of Stock Options Granted

The weighted-average assumptions used to estimate the fair value of stock options granted in the following periods was:

 

 

Three Months Ended October 31,

 

 

Nine Months Ended October 31,

 

 

 

2016

 

 

2017

 

 

2016

 

 

2017

 

Risk-free interest rate

 

 

1.33

%

 

 

1.88

%

 

 

1.49

%

 

 

1.86

%

Expected term (in years)

 

 

5.90

 

 

 

5.73

 

 

 

6.04

 

 

 

5.47

 

Expected volatility

 

 

54.90

%

 

 

52.73

%

 

 

62.12

%

 

 

48.21

%

Dividend yield

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 
Summary of Restricted Stock Unit Activity

The following is a summary of RSU activity under the Company’s stock plans for the nine months ended October 31, 2017 is presented below:

 

 

 

Shares

 

 

Weighted

average grant

date fair value

per share

 

Outstanding—January 31, 2017

 

 

285,835

 

 

$

30.60

 

Awarded

 

 

6,136,856

 

 

$

9.88

 

Released

 

 

—

 

 

$

—

 

Forfeited

 

 

(262,528

)

 

$

20.51

 

Outstanding—October 31, 2017

 

 

6,160,163

 

 

$

10.39

 

 
Schedule of Total Stock-Based Compensation Expense Recognized

Total stock-based compensation expense recognized for stock award in the condensed consolidated statements of operations is as follows (in thousands):

 

 

 

Three Months Ended October 31,

 

 

Nine Months Ended October 31,

 

 

 

2016

 

 

2017

 

 

2016

 

 

2017

 

Stock-based compensation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of product revenue

 

$

68

 

 

$

334

 

 

$

197

 

 

$

1,095

 

Cost of support and maintenance revenue

 

 

71

 

 

 

358

 

 

 

243

 

 

 

1,011

 

Research and development

 

 

1,230

 

 

 

5,116

 

 

 

4,090

 

 

 

14,772

 

Sales and marketing

 

 

959

 

 

 

2,468

 

 

 

3,209

 

 

 

8,150

 

General and administrative

 

 

973

 

 

 

3,576

 

 

 

3,003

 

 

 

12,742

 

Total stock-based compensation expense(1)

 

$

3,301

 

 

$

11,852

 

 

$

10,742

 

 

$

37,770

 

 

(1)

In September 2017, the Company’s board of directors approved a restructuring plan, which resulted in a $0.7 million non-cash adjustment to restructuring charges for previously recognized stock-based compensation expense related to awards that will not vest as a result of the restructuring plan.

 

Total stock-based compensation expense recognized for stock awards in the condensed consolidated statements of operations by type of awards is as follows (in thousands):

 

 

 

Three Months Ended October 31,

 

 

Nine Months Ended October 31,

 

 

 

2016

 

 

2017

 

 

2016

 

 

2017

 

Stock-based compensation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock options(1) (2)

 

$

3,301

 

 

$

3,787

 

 

$

10,742

 

 

$

17,117

 

RSUs(2)

 

 

—

 

 

 

7,547

 

 

 

—

 

 

 

19,945

 

ESPP

 

 

—

 

 

 

518

 

 

 

—

 

 

 

708

 

Total stock-based compensation expense

 

$

3,301

 

 

$

11,852

 

 

$

10,742

 

 

$

37,770

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

In May 2017, the Company repriced each outstanding and unexercised stock option held by current service providers with an exercise price in excess of $13.68 per share (each, an "Eligible Option"), to a new exercise price of $13.68 per share, which is no less than the fair market value of the Company's common stock as determined by the Company's compensation committee on the date of repricing. Eligible Options covering 3,291,783 shares of the Company's common stock with a weighted average exercise price of $24.31 were repriced. Additional stock-based compensation expense related to this repricing is $7.3 million, of which $2.6 million was recognized immediately on the date of repricing for Eligible Options that were vested.

(2)

In September 2017, the Company’s board of directors approved a restructuring plan, which resulted in a $0.7 million non-cash adjustment to restructuring charges for previously recognized stock-based compensation expense related to awards that will not vest as a result of the restructuring plan.
2017 Employee Stock Purchase Plan  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Schedule of Black-Scholes Option-pricing Model to Determine Fair Value of Shares Purchased under ESPP with Weighted Average Assumptions on Date of Grant

The Company uses the Black-Scholes option-pricing model to determine the fair value of shares purchased under the ESPP with the following weighted average assumptions on the date of the grant:

 

 

 

Three Months Ended October 31,

 

 

Nine Months Ended October 31,

 

 

 

2016

 

2017

 

 

2016

 

2017

 

Risk-free interest rate

 

n/a

 

 

1.35

%

 

n/a

 

 

1.32

%

Expected term (in years)

 

n/a

 

 

1.25

 

 

n/a

 

 

1.38

 

Expected volatility

 

n/a

 

 

50.35

%

 

n/a

 

 

44.91

%

Dividend yield

 

n/a

 

 

—

 

 

n/a

 

 

—

 

 
2008 Stock Plan  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Summary of Shares Available for Grant under Stock Plans

The following is a summary of shares available for grant under the Company’s stock plans for the year ended January 31, 2017 and the nine months ended October 31, 2017:

 

Outstanding—January 31, 2016

 

 

156,417

 

Authorized

 

 

1,405,316

 

Options and RSUs granted

 

 

(1,240,032

)

Options and RSUs canceled

 

 

738,891

 

Outstanding—January 31, 2017

 

 

1,060,592

 

Authorized

 

 

7,024,194

 

Options and RSUs granted

 

 

(10,983,179

)

Options and RSUs canceled

 

 

4,150,318

 

Outstanding—October 31, 2017

 

 

1,251,925

 

 
Summary of Stock Option Activity

The following is a summary of stock option activity under the Company’s stock plans for the year ended January 31, 2017 and for the nine months ended October 31, 2017:

 

 

 

 

 

 

 

Options Outstanding

 

 

 

Number of

shares

underlying

outstanding

options

 

 

Weighted-

average

exercise

price

 

 

Weighted-

average

remaining

contractual

term

 

 

Aggregate

Intrinsic

Value

 

 

 

 

 

 

 

 

 

 

 

(in years)

 

 

(in thousands)

 

Outstanding—January 31, 2016

 

 

4,421,035

 

 

$

16.34

 

 

 

8.2

 

 

$

59,882

 

Options granted

 

 

920,147

 

 

$

30.25

 

 

 

 

 

 

 

 

 

Options exercised

 

 

(168,380

)

 

$

13.63

 

 

 

 

 

 

 

 

 

Options canceled

 

 

(704,841

)

 

$

19.35

 

 

 

 

 

 

 

 

 

Outstanding—January 31, 2017

 

 

4,467,961

 

 

$

18.83

 

 

 

7.5

 

 

$

60,756

 

Options granted

 

 

1,554,912

 

 

$

16.91

 

 

 

 

 

 

 

 

 

Options exercised

 

 

(720,985

)

 

$

9.53

 

 

 

 

 

 

 

 

 

Options canceled

 

 

(540,377

)

 

$

16.04

 

 

 

 

 

 

 

 

 

Outstanding—October 31, 2017

 

 

4,761,511

 

 

$

12.58

 

 

 

7.3

 

 

$

375

 

Vested and exercisable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

January 31, 2017

 

 

2,380,167

 

 

$

13.55

 

 

 

6.8

 

 

$

44,719

 

October 31, 2017

 

 

2,940,235

 

 

$

12.14

 

 

 

6.5

 

 

$

375

 

Vested and Expected to Vest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

January 31, 2017(1)

 

 

4,174,361

 

 

$

18.54

 

 

 

7.5

 

 

$

57,552

 

October 31, 2017

 

 

4,761,511

 

 

$

12.58

 

 

 

7.3

 

 

$

375

 

 

(1)

The expected to vest options are a result of applying the forfeiture rate assumptions to unvested options outstanding.