Summary of Business and Significant Accounting Policies (Tables)

9 Months Ended

Oct. 31, 2018

Schedule of Certain Risks and Concentrations of Credit Risk

The following customers individually exceeded 10% of total accounts receivable as of the dates shown:

	October 31,	January 31,
	2018	2018
Customer 1	*	18%
Customer 2	*	13%

*	Does not exceed 10%.

Topic 606 [Member]

Schedule of Condensed Consolidated Balance Sheet

Select impacted condensed consolidated balance sheet line items, which reflect the adoption of the new standards are as follows (in thousands):

	January 31, 2018
	As Reported		Adjustments				As adjusted
Assets
Accounts receivable⁽¹⁾	$	233,731		(9,063	)	a	$	224,668
Unbilled accounts receivable⁽¹⁾		—		13,348		a		13,348
Deferred costs, net		—		30,306		a		30,306
Deferred income taxes, non-current		3,490		(1,268	)	a		2,222
Liabilities
Deferred revenue	$	275,446	$	(8,507	)	a	$	266,939
Deferred income taxes, non-current		3,828		7,121		a		10,949
Stockholders’ equity:
Accumulated other comprehensive income	$	1,404	$	196		b	$	1,600
Retained earnings		354,850		34,515		a, b		389,365

⁽¹⁾	Unbilled accounts receivable was previously included in Accounts receivable before the adoption of Topic 606.

a	Adjusted to reflect the adoption of ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).”

b	Adjusted to reflect the adoption of ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.”

Schedule of Unaudited Consolidated Statements of Comprehensive Income

Select unaudited condensed consolidated statement of comprehensive income line items, which reflect the adoption of the new standards are as follows (in thousands):

	Three months ended October 31, 2017
	As Reported		Adjustments			As adjusted
Revenues:
Subscription services	$	141,943	$	859	a	$	142,802
Operating expenses:
Sales and marketing		31,856		36	a		31,892
Operating income		41,668		827	a		42,495
Provision for income taxes		8,635		294	a		8,929
Net income	$	34,393	$	532	a	$	34,925
Net income per share attributable to Class A and Class B common stockholders:
Basic	$	0.24	$	0.01	a	$	0.25
Diluted	$	0.22	$	—	a	$	0.23

	Nine months ended October 31, 2017
	As Reported		Adjustments			As adjusted
Revenues:
Subscription services	$	403,560	$	3,923	a	$	407,483
Operating expenses:
Sales and marketing		93,683		420	a		94,103
Operating income		115,905		3,520	a		119,425
Provision for income taxes		12,454		1,256	a		13,710
Net income	$	108,260	$	2,263	a	$	110,523
Net income per share attributable to Class A and Class B common stockholders:
Basic	$	0.77	$	0.02	a	$	0.79
Diluted	$	0.71	$	0.01	a	$	0.72

a	Adjusted to reflect the adoption of ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).”

Schedule of Unaudited Condensed Consolidated Statement of Cash Flows

Select unaudited condensed consolidated statement of cash flows line items, which reflect the adoption of the new standards are as follows (in thousands):

	Three months ended October 31, 2017
	As Reported			Adjustments				As adjusted
Cash flows from operating activities
Net income	$	34,393		$	532		a	$	34,925
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of deferred costs		—			4,203		a		4,203
Changes in operating assets and liabilities:
Accounts receivable		20,922			2,401		a		23,323
Unbilled accounts receivable		—			(4,852	)	a		(4,852	)
Deferred costs		—			(4,170	)	a		(4,170	)
Deferred revenue		(49,328	)		1,593		a		(47,735	)
Net cash provided by operating activities		32,233			1		a		32,234
Change in restricted cash and deposits		—			—		b		—
Net cash used in investing activities		(134,398	)		—		b		(134,398	)
Net change in cash, cash equivalents and restricted cash		(98,430	)		1		b		(98,429	)
Cash, cash equivalents and restricted cash at the beginning of period		409,226			1,202		b		410,428
Cash, cash equivalents and restricted cash at the end of period	$	310,796		$	1,203		b	$	311,999

	Nine months ended October 31, 2017
	As Reported			Adjustments				As adjusted
Cash flows from operating activities
Net income	$	108,260		$	2,263		a	$	110,523
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of deferred costs		—			12,338		a		12,338
Changes in operating assets and liabilities:
Accounts receivable		106,791			3,681		a		110,472
Unbilled accounts receivable		—			(5,331	)	a		(5,331	)
Deferred costs		—			(11,933	)	a		(11,933	)
Deferred revenue		(40,301	)		(2,273	)	a		(42,574	)
Net cash provided by operating activities		232,001			—		a		232,001
Change in restricted cash and deposits		(202	)		202		b		—
Net cash (used in) provided by investing activities		(157,202	)		202		b		(157,000	)
Net change in cash, cash equivalents and restricted cash		93,190			202		b		93,392
Cash, cash equivalents and restricted cash at the beginning of period		217,606			1,001		b		218,607
Cash, cash equivalents and restricted cash at the end of period	$	310,796		$	1,203		b	$	311,999

a	Adjusted to reflect the adoption of ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).”

b	Adjusted to reflect the adoption of ASU 2016-18, “Statement of Cash Flows, Restricted Cash.”