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Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jul. 31, 2017
Jul. 31, 2016
Jul. 31, 2017
Jul. 31, 2016
Cash flows from operating activities        
Net income $ 37,844 $ 12,958 $ 73,867 $ 25,467
Adjustments to reconcile net income to net cash provided by operating activities:        
Depreciation and amortization 3,571 3,470 7,020 6,875
Amortization of premiums on short-term investments 386 469 842 889
Stock-based compensation 13,380 10,014 25,168 18,157
Deferred income taxes (708) 36 (1,905) (802)
Loss on foreign currency from market-to-market derivative 204   253  
Bad debt expense (198) 90 (206) (115)
Changes in operating assets and liabilities:        
Accounts receivable 16,169 (7,277) 85,869 55,950
Income taxes 483 1,264 (2,062) 1,644
Prepaid expenses and other current and long-term assets 332 (9,466) (1,159) (8,076)
Accounts payable 700 1,805 244 1,871
Accrued expenses and other current liabilities (361) 1,800 544 (1,105)
Deferred revenue (15,410) (4,058) 9,027 19,299
Other long-term liabilities 1,215 641 2,266 1,052
Net cash provided by operating activities [1] 57,607 11,746 199,768 121,106
Cash flows from investing activities        
Purchases of short-term investments (87,202) (116,219) (143,451) (183,959)
Maturities and sales of short-term investments 69,681 58,151 128,377 128,176
Purchases of property and equipment (2,535) (859) (6,495) (2,916)
Capitalized internal-use software development costs (242) (69) (1,033) (209)
Changes in restricted cash and deposits (201) 109 (202) 103
Net cash (used in) investing activities (20,499) (58,887) (22,804) (58,805)
Cash flows from financing activities        
Proceeds from exercise of common stock options 6,131 3,183 13,416 4,528
Restricted stock units acquired to settle employee tax withholding liability   (11)   (12)
Excess tax benefits from employee stock plans   8,079   10,940
Net cash provided by financing activities [1] 6,131 11,251 13,416 15,456
Effect of exchange rate changes on cash and cash equivalents 327 313 1,240 429
Net change in cash and cash equivalents 43,566 (35,577) 191,620 78,186
Cash and cash equivalents at beginning of period 365,660 245,942 217,606 132,179
Cash and cash equivalents at end of period 409,226 210,365 409,226 210,365
Supplemental disclosures of other cash flow information:        
Cash paid for income taxes, net of refunds 1,780 9,316 6,036 12,281
Non-cash investing and financing activities:        
Changes in accounts payable and accrued expenses related to property and equipment purchases $ 465 (98) (121) (787)
Vesting of early exercised stock options   $ 10 $ 1 $ 26
[1] During the six months ended July 31, 2017, the Company adopted Accounting Standards Update (“ASU”) 2016-09, “Compensation-Stock Compensation: Improvements to Employee Share-Based Payment.” Refer to note 1—New Accounting Pronouncements Adopted in Fiscal 2018 for further details. This adoption resulted in a $14.8 million and $28.7 million increase in net cash provided by operating activities and a corresponding decrease in net cash provided by financing activities for the three and six months ended July 31, 2017, respectively.