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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Jan. 31, 2015	Mar. 23, 2015	Jul. 31, 2014
Document and Entity Information
Entity Registrant Name	SPLUNK INC
Entity Central Index Key	0001353283
Document Type	10-K
Document Period End Date	Jan. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--01-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 5,498,673,543
Entity Common Stock, Shares Outstanding		125,017,093
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jan. 31, 2015	Jan. 31, 2014
Current assets:
Cash and cash equivalents	$ 387,315	$ 897,453
Investments, current portion	462,849	0
Accounts receivable, net	128,413	83,348
Prepaid expenses and other current assets	21,256	12,019
Total current assets	999,833	992,820
Investments, non-current	165,082	0
Property and equipment, net	50,374	15,505
Intangible assets, net	10,416	12,294
Goodwill	19,070	19,070
Other assets	3,016	642
Total assets	1,247,791	1,040,331
Current liabilities:
Accounts payable	3,726	2,079
Accrued payroll and compensation	65,220	43,876
Accrued expenses and other liabilities	27,819	12,743
Deferred revenue, current portion	249,883	149,156
Total current liabilities	346,648	207,854
Deferred revenue, non-current	54,202	43,165
Other liabilities, non-current	33,620	4,404
Total non-current liabilities	87,822	47,569
Total liabilities	434,470	255,423
Commitments and contingencies (Note 3)
Stockholders’ equity
Preferred stock: $0.001 par value; 20,000,000 shares authorized; no shares issued or outstanding at January 31, 2015 and January 31, 2014	0	0
Common stock: $0.001 par value; 1,000,000,000 shares authorized; 123,538,492 shares issued and outstanding at January 31, 2015, and 116,099,516 shares issued and outstanding at January 31, 2014	123	116
Accumulated other comprehensive income (loss)	(837)	58
Additional paid-in capital	1,200,858	954,441
Accumulated deficit	(386,823)	(169,707)
Total stockholders’ equity	813,321	784,908
Total liabilities and stockholders’ equity	$ 1,247,791	$ 1,040,331

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jan. 31, 2015	Jan. 31, 2014
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	123,538,492	116,099,516
Common stock, shares outstanding	123,538,492	116,099,516

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands

12 Months Ended

Jan. 31, 2015

Jan. 31, 2014

Jan. 31, 2013

Revenues

License

$ 283,191

$ 199,024

$ 135,922

Maintenance and services

167,684

103,599

63,022

Total revenues

450,875

302,623

198,944

Cost of revenues

License

^[1]

1,859

330

727

Maintenance and services

^[1]

66,519

35,495

20,697

Total cost of revenues

^[1]

68,378

35,825

21,424

Gross profit

382,497

266,798

177,520

Operating expenses

Research and development

^[1]

150,790

75,895

41,853

Sales and marketing

^[1]

344,471

215,335

125,098

General and administrative

^[1]

103,046

53,875

32,602

Total operating expenses

^[1]

598,307

345,105

199,553

Operating loss

(215,810)

(78,307)

(22,033)

Interest and other income (expense), net

Interest income, net

754

225

152

Other income (expense), net

216

(920)

Change in fair value of preferred stock warrants

(14,087)

Total interest and other income (expense), net

970

(695)

(13,935)

Loss before income taxes

(214,840)

(79,002)

(35,968)

Provision for income taxes

2,276

713

Net loss

$ (217,116)

$ (79,008)

$ (36,681)

Basic and diluted net loss per share (in dollars per share)

$ (1.81)

$ (0.75)

$ (0.46)

Weighted-average shares used in computing basic and diluted net loss per share (in shares)

119,775

105,067

80,246

[1]

Amounts include stock-based compensation expense as follows: cost of revenues 17,189, 5,283, 1,217, research and development 60,777, 20,829, 6,170, sales and marketing 90,064, 30,012, 8,093, and general and administrative 46,149, 13,244, 4,000 for the years ended January 31, 2015, 2014, and 2013 respectively.

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2013
Stock-based compensation expense	$ 214,179	$ 69,368	$ 19,480
Cost of revenues
Stock-based compensation expense	17,189	5,283	1,217
Research and development
Stock-based compensation expense	60,777	20,829	6,170
Sales and marketing
Stock-based compensation expense	90,064	30,012	8,093
General and administrative
Stock-based compensation expense	$ 46,149	$ 13,244	$ 4,000

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2013
Statement of Comprehensive Income [Abstract]
Net loss	$ (217,116)	$ (79,008)	$ (36,681)
Other comprehensive income (loss):
Net unrealized gain on investments	2	0	0
Foreign currency translation adjustments	(897)	193	(111)
Total other comprehensive income (loss)	(895)	193	(111)
Comprehensive loss	$ (218,011)	$ (78,815)	$ (36,792)

CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit	Convertible Preferred Stock Series A, B, C
Balances at Jan. 31, 2012	$ (41,646)	$ 23	$ 12,373	$ (24)	$ (54,018)	$ 40,913
Balances (in shares) at Jan. 31, 2012		23,092,407				56,930,194
Increase (Decrease) in Stockholders' Equity
Stock-based compensation	19,480		19,480
Issuance of common stock upon exercise of options	6,896	$ 6	6,890
Issuance of common stock upon exercise of options (in shares)		5,529,112
Conversion of preferred stock to common stock upon initial public offering	40,913	$ 57	40,856			$ (40,913)
Conversion of preferred stock to common stock upon initial public offering (in shares)		56,930,194				(56,930,194)
Issuance of common stock upon initial public offering	225,225	$ 15	225,210
Issuance of common stock upon initial public offering (in shares)		14,532,278
Issuance of common stock upon early exercise of warrants	631		631
Issuance of common stock upon early exercise of warrants (in shares)		466,714
Reclassification of preferred stock warrant liability to additional paid-in capital upon initial public offering	16,220		16,220
Vesting of early exercised options	845		845
Vesting of restricted stock units (in shares)		2,125
Issuance of common stock upon ESPP purchase	5,310		5,310
Issuance of common stock upon ESPP purchase (in shares)		367,520
Excess tax benefits from employee stock plans	462		462
Net change in cumulative translation adjustment	(111)			(111)
Net loss	(36,681)				(36,681)
Balances at Jan. 31, 2013	237,544	$ 101	328,277	(135)	(90,699)	$ 0
Balances (in shares) at Jan. 31, 2013		100,920,350				0
Increase (Decrease) in Stockholders' Equity
Stock-based compensation	69,368		69,368
Issuance of common stock upon exercise of options	$ 23,731	$ 7	23,724
Issuance of common stock upon exercise of options (in shares)	0	7,254,049
Conversion of preferred stock to common stock upon initial public offering	$ 0
Issuance of common stock upon initial public offering	539,339	$ 7	539,332
Issuance of common stock upon initial public offering (in shares)		6,900,000
Vesting of early exercised options	112		112
Vesting of restricted stock units (in shares)		475,111
Taxes withholding related to net share settlement of equity awards	(18,156)		(18,156)
Issuance of common stock upon ESPP purchase	11,434	$ 1	11,433
Issuance of common stock upon ESPP purchase (in shares)		550,006
Excess tax benefits from employee stock plans	351		351
Net change in cumulative translation adjustment	193			193
Net loss	(79,008)				(79,008)
Balances at Jan. 31, 2014	784,908	$ 116	954,441	58	(169,707)
Balances (in shares) at Jan. 31, 2014		116,099,516
Increase (Decrease) in Stockholders' Equity
Stock-based compensation	214,179		214,179
Issuance of common stock upon exercise of options	16,792	$ 4	16,788
Issuance of common stock upon exercise of options (in shares)		4,213,746
Conversion of preferred stock to common stock upon initial public offering	0
Vesting of early exercised options	112		112
Vesting of restricted stock units (in shares)		2,862,027
Vesting of restricted stock units		$ 3	(3)
Issuance of common stock upon ESPP purchase	14,494	$ 0	14,494
Issuance of common stock upon ESPP purchase (in shares)		363,203
Excess tax benefits from employee stock plans	847		847
Unrealized Gain (Loss) on Investments	2			2
Net change in cumulative translation adjustment	(897)			(897)
Net loss	(217,116)				(217,116)
Balances at Jan. 31, 2015	$ 813,321	$ 123	$ 1,200,858	$ (837)	$ (386,823)
Balances (in shares) at Jan. 31, 2015		123,538,492

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2013
Cash flows from operating activities
Net loss	$ (217,116)	$ (79,008)	$ (36,681)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization	12,494	6,692	4,674
Amortization of investment premiums	775	0	0
Stock-based compensation expense	214,179	69,368	19,480
Deferred income taxes	(327)	(1,374)	(281)
Excess tax benefits from employee stock plans	(847)	(351)	(462)
Impairment of long-lived asset	0	2,128	0
Change in fair value of preferred stock warrants	0	0	14,087
Changes in operating assets and liabilities
Accounts receivable, net	(45,065)	(19,400)	(29,453)
Prepaid expenses, other current and non-current assets	(11,284)	(6)	(2,377)
Accounts payable	1,766	171	187
Accrued compensation	21,344	15,753	11,981
Accrued expenses and other liabilities	16,297	2,454	3,446
Deferred revenue	111,764	77,421	62,047
Net cash provided by operating activities	103,980	73,848	46,648
Cash flows from investing activities
Purchase of investments	(820,710)	0	0
Maturities of investments	192,000	0	0
Acquisitions, net of cash acquired	(2,500)	(29,738)	0
Change in restricted cash	0	0	514
Purchases of property and equipment	(13,950)	(9,308)	(9,077)
Net cash used in investing activities	(645,160)	(39,046)	(8,563)
Cash flows from financing activities
Repayments of term debt	0	0	(2,289)
Proceeds from initial public offering, net of offering costs	0	0	225,225
Proceeds from exercise of warrant	0	0	631
Proceeds from exercise of stock options	16,792	23,731	6,896
Excess tax benefits from employee stock plans	847	351	462
Proceeds from employee stock purchase plan	14,494	11,434	5,310
Proceeds from follow-on offering, net of offering costs	0	539,339	0
Taxes paid related to net share settlement of equity awards	0	(18,156)	0
Payment related to build-to-suit lease obligation	(523)	0	0
Net cash provided by financing activities	31,610	556,699	236,235
Effect of exchange rate changes on cash and cash equivalents	(568)	13	20
Net increase in cash and cash equivalents	(510,138)	591,514	274,340
Cash and cash equivalents
Beginning of period	897,453	305,939	31,599
End of period	387,315	897,453	305,939
Supplemental disclosures
Cash paid for interest	0	0	40
Cash paid for income taxes	1,080	490	118
Non-cash investing and financing activities
Accrued purchases of property and equipment	1,057	1,265	467
Conversion of preferred stock to common stock	0	0	40,913
Vesting of early exercised options	112	112	845
Deferred offering costs not yet paid	0	344	0
Capitalized construction costs related to build-to-suit lease	$ 29,360	$ 0	$ 0

Description of the Business and Significant Accounting Policies

12 Months Ended

Jan. 31, 2015

Accounting Policies [Abstract]

Description of the Business and Significant Accounting Policies

Business

Splunk Inc. (“we,” "us," "our") provides innovative software products that enable organizations to gain real-time operational intelligence by harnessing the value of their data. Our products enable users to collect, index, search, explore, monitor and analyze data regardless of format or source. Our products address large and diverse data sets, commonly referred to as big data, and are specifically tailored for machine-generated data. Machine data is produced by nearly every software application and electronic device and contains a definitive, time-stamped record of various activities, such as transactions, customer and user activities and security threats. Our products help users derive new insights from machine data that can be used to, among other things, improve service levels, reduce operational costs, mitigate security risks, demonstrate and maintain compliance, and drive better business decisions. We were incorporated in California in October 2003 and reincorporated in Delaware in May 2006.

Fiscal Year

Our fiscal year ends on January 31. References to fiscal 2015, for example, refer to the fiscal year ended January 31, 2015.

Follow-on Offering

In January 2014, we closed a follow-on offering of 6,900,000 shares of common stock, including 900,000 shares of common stock from the full exercise of the overallotment option of shares granted to the underwriters. The public offering price of the shares sold in the offering was $81.00 per share. The total gross proceeds from the offering to us were $558.9 million. After deducting underwriting discounts and commissions of $19.6 million, we received approximately $539.3 million.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting periods covered by the financial statements and accompanying notes. In particular, we make estimates with respect to the fair value of multiple elements in revenue recognition, uncollectible accounts receivable, the assessment of the useful life and recoverability of long-lived assets (property and equipment, goodwill and identified intangibles), stock-based compensation expense, the fair value of assets acquired and liabilities assumed for business combinations, income taxes and contingencies. Actual results could differ from those estimates.

Segments

We operate our business as one operating segment: the development and marketing of software products that enable our customers to gain real-time operational intelligence by harnessing the value of their data. Our chief operating decision maker is our Chief Executive Officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources.

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of Splunk Inc. and its direct and indirect wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation.

Foreign Currency

The functional currency of our foreign subsidiaries is the respective local currency. Translation adjustments arising from the use of differing exchange rates from period to period are included in Accumulated Other Comprehensive Loss within Stockholders' Equity. Foreign currency transaction gains and losses are included in Other Income (Expense), Net and were not material for the three years ended January 31, 2015. All assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Expenses are translated at the average exchange rate during the period. Equity transactions are translated using historical exchange rates.

Revenue Recognition

We generate revenues primarily in the form of software license fees and related maintenance and services fees. License fees include perpetual license fees, term license fees and royalties. Maintenance and services primarily consist of fees for maintenance services (including support and unspecified upgrades and enhancements when and if they are available), training, professional services that are not essential to functionality and subscription software services.

We recognize revenues when all of the following conditions are met:


•	there is persuasive evidence of an arrangement;


•	the software or services have been delivered to the customer;


•	the amount of fees to be paid by the customer is fixed or determinable; and


•	the collection of the related fees is probable.

Signed agreements are used as evidence of an arrangement. If a contract signed by the customer does not exist, we use a purchase order as evidence of an arrangement. In cases where both a signed contract and a purchase order exist, we consider the signed contract to be the final persuasive evidence of an arrangement. Electronic delivery occurs when we provide the customer with access to the software via a license key. We assess whether a fee is fixed or determinable at the outset of the arrangement, primarily based on the payment terms associated with the transaction. We do not generally offer extended payment terms with typical terms of payment due between 30 and 60 days from delivery of software. We assess collectability of the fee based on a number of factors such as collection history and creditworthiness of the customer. If we determine that collectability is not probable, revenue is deferred until collectability becomes probable, generally upon receipt of cash.

When contracts contain software-related multiple elements wherein vendor specific objective evidence ("VSOE") exists for all undelivered elements and the services, if any, are not essential to the functionality of the delivered elements, we account for the delivered elements in accordance with the "Residual Method." Perpetual license arrangements are typically accompanied by maintenance agreements. Maintenance revenues consist of fees for providing software updates on a when and if available basis and technical support for software products ("post-contract support" or "PCS") for an initial term. Maintenance revenues are recognized ratably over the term of the agreement. We have established fair value for maintenance on perpetual licenses due to consistently priced standalone sales of maintenance. Revenues related to term license fees are recognized ratably over the contract term beginning on the date the customer has access to the software license key and continuing through the end of the contract term. In these cases we do not have VSOE of fair value for maintenance as fees for support and maintenance are bundled with the license over the entire term of the contract.

License arrangements may also include professional services and training services, which are typically delivered early in the contract term. In determining whether professional services revenues should be accounted for separately from license revenues, we evaluate whether the professional services are considered essential to the functionality of the software using factors such as the nature of our software products; whether they are ready for use by the customer upon receipt; the nature of our implementation services, which typically do not involve significant customization to or development of the underlying software code; the availability of services from other vendors; whether the timing of payments for license revenues is coincident with performance of services; and whether milestones or acceptance criteria exist that affect the realizability of the software license fee. Substantially all of our professional services arrangements are billed on a time and materials basis and, accordingly, are recognized as the services are performed. Training revenues are recognized as training services are delivered. VSOE of fair value of professional and training services is based upon stand-alone sales of those services. Payments received in advance of services performed are deferred and recognized when the related services are performed.

We are unable to establish VSOE of fair value for all undelivered elements in certain multiple element arrangements due to the lack of VSOE for maintenance services that are generally bundled with term licenses. In these instances, all revenue is recognized ratably over the period that the services are expected to be performed, commencing when all service periods have started. In arrangements where the expected service periods of maintenance services and professional or training services differ, we recognize all revenue over the longer of the expected service periods, which is generally the maintenance period.

We do not offer credits or refunds and therefore have not recorded any sales return allowance for any of the periods presented. Upon a periodic review of outstanding accounts receivable, amounts that are deemed to be uncollectible are written off against the allowance for doubtful accounts. Our policy is to record revenues net of any applicable sales, use or excise taxes.

We recognize revenues from the indirect sales channel upon sell-through by the partner or distributor. Sell-through is determined when we receive an order form from a reseller for a specific end-user sale. We do not offer right of return, product rotation or price protection to any of our channel partners. We also have licensing arrangements with OEM customers for which royalty fees are generally recognized as revenue upon receipt of reports of units shipped, respectively. Provided all other revenue criteria are met, the upfront, minimum, non-refundable license fees from OEM customers are recognized upon delivery, and on-going royalty fees are recognized upon reports of units shipped.

In our consolidated statements of operations, revenues are categorized as license or maintenance and services revenues. We allocate revenues from arrangements containing multiple elements to each of these categories based on the VSOE of fair value for elements in each revenue arrangement and the application of the residual method for arrangements in which we have established VSOE of fair value for all undelivered elements. In arrangements where we are not able to establish VSOE of fair value for all undelivered elements, we first allocate revenues to any undelivered elements for which VSOE of fair value has been established, then allocate revenues to any undelivered elements for which VSOE of fair value has not been established based upon management's best estimate of fair value of those undelivered elements and apply a residual method to determine the license fee. Management's best estimate of fair value of undelivered elements for which VSOE of fair value has not been established is based upon the VSOE of similar offerings and other objective criteria.

For multiple-element arrangements containing our non-software services, we: (1) determine whether each element constitutes a separate unit of accounting; (2) determine the fair value of each element using the selling price hierarchy of VSOE of selling price, third-party evidence (“TPE”) of selling price or best-estimated selling price (“BESP”), as applicable; and (3) allocate the total price to each separate unit of accounting based on the relative selling price method. An element constitutes a separate unit of accounting when the delivered item has standalone value and delivery of the undelivered element is probable and within our control. We determine BESP by considering our overall pricing objectives and market conditions. Significant pricing practices taken into consideration include our discounting practices, the size and volume of our transactions, our price lists, our go-to-market strategy, historical standalone sales and contract prices. As our go-to-market strategies evolve, we may modify our pricing practices in the future, which could result in changes in relative selling prices, including both VSOE and BESP.

For multiple-element arrangements that contain both software and non-software elements, we allocate revenue to software or software-related elements as a group and any non-software elements separately based on the selling price hierarchy. We determine the selling price for each deliverable using VSOE of selling price, if it exists, or TPE of selling price. If neither VSOE nor TPE of selling price exist for a deliverable, we use BESP. Once revenue is allocated to software or software-related elements as a group, we recognize revenue in conformance with software revenue accounting guidance. Revenue is recognized when revenue recognition criteria are met for each element.

In our subscription software services agreements, we include service level commitments to customers relating to levels of uptime availability and permitting those customers to receive credits in the event that we fail to meet those levels. To date, we have not incurred any material costs as a result of such commitments and have not accrued any liabilities related to such obligations in the accompanying consolidated financial statements.

Deferred revenue consists substantially of amounts invoiced in advance of revenue recognition for our products and services described above. We recognize deferred revenue as revenue only when the revenue recognition criteria are met.

Cash and Cash Equivalents and Restricted Cash

We consider all highly liquid instruments with original or remaining maturities of 90 days or less at the date of purchase to be cash equivalents. Cash and cash equivalents are recorded at cost, which approximates fair value. We do not hold or issue financial instruments for trading purposes. As of January 31, 2015, 2014 and 2013, $374.7 million, $864.0 million and $250.8 million, respectively, of cash and cash equivalents were invested in money market funds.

Concentration of Risk

Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. We maintain the majority of our cash balance at one financial institution that management believes is a high-credit, quality financial institution and invest our cash equivalents in highly rated money market funds.

At January 31, 2015 and 2014 no customer represented greater than 10% of total accounts receivable.

Our accounts receivable is subject to collection risks. Our gross accounts receivable is reduced for this risk by an allowance for doubtful accounts. This allowance is for estimated losses resulting from the inability of our customers to make required payments. It is an estimate and is regularly evaluated for adequacy by taking into consideration a combination of factors. We look at factors such as past collection experience, credit quality of the customer, age of the receivable balance, and current economic conditions. These factors are reviewed to determine whether an allowance for bad debts should be recorded to reduce the receivable balance to the amount believed to be collectible.

The following table presents the changes in the allowance for doubtful accounts (in thousands):



	Fiscal Year Ended January 31,
(in thousands)	2015			2014			2013

Balance at beginning of period	$	758		$	821		$	557
Add: bad debt expense	—			140			286
Less: write-offs, net of recoveries	(285		)	(203		)	(22		)
Balance at end of period	$	473		$	758		$	821

Fair Value of Financial Instruments

We measure our cash equivalents and investments at fair value. The additional disclosures regarding our fair value measurements are included in Note 2 “Investments and Fair Value Measurements”.

Goodwill, Intangible Assets, Long-Lived Assets and Impairment Assessments

Goodwill and indefinite-lived intangible assets are carried at cost and are evaluated annually for impairment, or more frequently if circumstances exist that indicate that impairment may exist. When conducting our annual goodwill impairment assessment, we perform a quantitative evaluation of whether goodwill is impaired using the two-step impairment test. The first step is comparing the fair value of our reporting unit to its carrying value. We consider the enterprise to be the reporting unit for this analysis. If step one indicates that impairment potentially exists, the second step is performed to measure the amount of impairment, if any. We record the amount by which the carrying value of the goodwill exceeds its implied fair value, if any, as impairment.

Finite-lived intangible assets are amortized over their useful lives. Each period we evaluate the estimated remaining useful life of our finite-lived intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization. The carrying amounts of these assets are periodically reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. Recoverability of these assets is measured by comparison of the carrying amount of each asset to the future undiscounted cash flows the asset is expected to generate. If the undiscounted cash flows used in the test for recoverability are less than the carrying amount of these assets then the carrying amount of such assets is reduced to fair value.

In-process research and development is initially capitalized at fair value as an intangible asset with an indefinite life and assessed for impairment thereafter. When in-process research and development projects are completed, the corresponding amount is reclassified as an amortizable intangible asset and is amortized over the asset's estimated useful life.

We evaluate the recoverability of our long-lived assets including intangible and tangible assets. Acquired finite-lived intangible assets are amortized over their useful lives. We evaluate long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. We recognize such impairment in the event the net book value of such assets exceeds their fair value. If the fair value of the long-lived assets exceeds the carrying value of the net assets assigned, then the assets are not impaired and no further testing is performed. If the carrying value of the net assets assigned exceeds the fair value of the assets, then we must perform the second step of the impairment test in order to determine the implied fair value. During fiscal 2014, we recognized a $2.1 million impairment charge of a long-lived asset for previously capitalized Storm software development costs as a result of our decision to make Splunk Storm available to customers at no cost.

Property and Equipment

Property and equipment are stated at cost net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets ranging from generally three to five years. Leasehold improvements are amortized over the shorter of the estimated useful life or the remaining lease term. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in the consolidated statements of operations. Maintenance and repairs that do not improve or extend the lives of the respective assets are charged to expense in the period incurred.

The following table presents the estimated useful lives of our property and equipment:



	Useful Life
Computer equipment and software	3 years
Furniture and fixtures	5 years
Leasehold improvements	Shorter of the useful life of the asset or the lease term

Capitalized Software Development Costs

Capitalization of software development costs for software to be sold, leased, or otherwise marketed begins upon the establishment of technological feasibility, which is generally the completion of a working prototype that has been certified as having no critical bugs and is a release candidate. Amortization begins once the software is ready for its intended use, generally based on the pattern in which the economic benefits will be consumed. We did not capitalize any internal software development costs for fiscal 2015 and 2014 because the cost incurred and the time between technological feasibility and product release was insignificant. For fiscal 2015, 2014 and 2013, total amortization expense was $0, $0 and $0.1 million respectively, from capitalized purchased technology of $0.5 million in December 2010.

Costs related to software acquired, developed or modified solely to meet our internal requirements, with no substantive plans to market such software at the time of development, are capitalized. Costs incurred during the preliminary planning and evaluation stage of the project and during post implementation operational stage are expensed as incurred. Costs incurred during the application development stage of the project are capitalized. We define the design, configuration, and coding process as the application development stage. We did not capitalize any costs related to computer software developed for internal use in fiscal 2015 or 2014. During the third quarter of fiscal 2014, we recognized a $2.1 million impairment charge for the remaining balance of the previously capitalized Storm software development costs as a result of our decision to make Splunk Storm available to customers at no cost.

Commissions

Commissions are recorded as a component of sales and marketing expenses and consist of the variable compensation paid to our sales force. Sales commissions are earned and recorded at the time that a customer has entered into a binding purchase agreement. Commissions paid to sales personnel are recoverable only in the case that we cannot collect the invoiced amounts associated with a sales order. Commission expense was $61.0 million, $54.0 million and $26.9 million for fiscal 2015, 2014 and 2013 respectively.

Leases

We primarily lease our facilities under operating leases. For leases that contain rent escalation or rent concession provisions, we record the total rent expense during the lease term on a straight-line basis over the term of the lease. We record the difference between the rent paid and the straight-line rent expense as a current and non-current deferred rent liability in Accrued expenses and other liabilities and Other liabilities, non-current, respectively, on the consolidated balance sheets. Rent expense was $10.5 million, $6.4 million and $3.9 million during fiscal 2015, 2014 and 2013, respectively.

Advertising Expense

We expense advertising costs as incurred. We incurred $8.4 million, $6.3 million and $6.0 million in advertising expenses for fiscal 2015, 2014 and 2013, respectively. Advertising costs are recorded in Sales and marketing expenses in the consolidated statements of operations.

Stock-Based Compensation

We recognize compensation expense for all share-based payment awards, including stock options and restricted stock, based on the estimated fair value of the award on the grant date in the consolidated statements of operations over the related vesting periods. The expense recorded is based on awards ultimately expected to vest and therefore is reduced by estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. We calculate the fair value of options using the Black-Scholes method and expense using the straight-line attribution approach.

We account for equity awards issued to non-employees, such as consultants, in accordance with the guidance relating to equity instruments that are issued to other than employees for acquiring, or in conjunction with selling, goods or services, using the Black-Scholes method to determine the fair value of such instruments. Awards granted to non-employees are remeasured over the vesting period, and the resulting value is recorded as an expense over the period the services are received.

The fair value of each option grant and stock purchase right granted under the Employee Stock Purchase Plan (“ESPP”) was estimated on the date of grant using the Black-Scholes option pricing model. We recognize stock-based compensation expense related to our ESPP on a straight-line basis over the offering period, which is twelve months. Stock-based compensation expense is recognized net of estimated forfeiture activity.

The determination of the grant date fair value of options using an option-pricing model is affected by assumptions regarding a number of other complex and subjective variables, which include our expected stock price volatility over the expected term of the options, stock option exercise and cancellation behaviors, risk-free interest rates and expected dividends.

Income Taxes

Income taxes are accounted for under the asset and liability method in accordance with authoritative guidance for income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

The adoption of the guidance on accounting for uncertainty in income taxes as set forth under ASC 740 Income Taxes requires us to identify, evaluate and measure all uncertain tax positions taken or to be taken on tax returns and to record liabilities for the amount of these positions that may not be sustained, or may only partially be sustained, upon examination by the relevant taxing authorities. Although we believe that our estimates and judgments were reasonable, actual results may differ from these estimates. Some or all of these judgments are subject to review by the taxing authorities.

Recently Issued Accounting Pronouncements

In May 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in Accounting Standards Codification 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The effective date will be the first quarter of fiscal year 2018 using one of two retrospective application methods. We have not yet selected a transition method and we are currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures.

Fair Value Measurements

12 Months Ended

Jan. 31, 2015

Fair Value Disclosures [Abstract]

Investments and Fair Value Measurements

The carrying amounts of certain of our financial instruments including cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate fair value due to their short-term maturities.

Assets and liabilities recorded at fair value in the financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels that are directly related to the amount of subjectivity associated with the inputs to the valuation of these assets or liabilities are as follows:

Level 1—Observable inputs, such as quoted prices in active markets for identical assets or liabilities.

Level 2—Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices 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 assets or liabilities.

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.

Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments and consider factors specific to the asset or liability.

The following table sets forth the fair value of our financial assets and liabilities that were measured on a recurring basis as of January 31, 2015 and 2014 (in thousands):



	January 31, 2015								January 31, 2014
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	374,682	$	—	$	—	$	374,682	$	864,012	$	—	$	—	$	864,012
U.S. treasury securities	—		627,931		—		627,931		—		—		—		—
Reported as:
Assets:
Cash and cash equivalents							$	374,682							$	864,012
Investments, current portion							462,849								—
Investments, non-current							165,082								—
Total							$	1,002,613							$	864,012

Our investments in money market funds are measured at fair value on a recurring basis. Our money market funds are targeted to be priced and have a net asset value of $1 per share. These money market funds are actively traded and reported daily through a variety of sources. The fair value of the money market fund investments are classified as Level 1.

We invested in U.S. treasury securities during the fiscal year ended January 31, 2015, which we have classified as available-for-sale securities. The following table presents our available-for-sale investments as of January 31, 2015 (in thousands):



	January 31, 2015
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Investments, current portion:
U.S. treasury securities	$	462,831	$	52	$	(34	)	$	462,849
Investments, non-current:
U.S. treasury securities	165,098		45		(61		)	165,082
Total available-for-sale investments	$	627,929	$	97	$	(95	)	$	627,931

As of January 31, 2015, the following marketable securities were in an unrealized loss position (in thousands):



	Less than 12 Months					12 Months or Greater				Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. treasury securities	$	354,592	$	(95	)	$	—	$	—	$	354,592	$	(95	)

As of January 31, 2015, we did not consider any of our investments to be other-than-temporarily impaired.

The contractual maturities of our investments are as follows (in thousands):



	January 31, 2015
Due within one year	$	462,849
Due within one to two years	165,082
Total	$	627,931

Investments with maturities of less than 12 months from the balance sheet date are classified as current assets, which are available for use to fund current operations. Investments with maturities greater than 12 months from the balance sheet date are classified as long-term assets.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Commitments and Contingencies

12 Months Ended

Jan. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Office Lease Commitments

We lease our office spaces under non-cancelable leases with rent expense recognized on a straight-line basis over the lease term. Rent expense was $10.5 million, $6.4 million and $3.9 million for the fiscal years ended January 31, 2015 and 2014 and 2013, respectively.

On April 29, 2014, we entered into an office lease (the "Lease") for approximately 182,000 square feet located at 270 Brannan Street, San Francisco, California (the "Premises"). The Premises will be allocated to approximately 95,000 square feet of rentable space (the "Initial Premises") which we expect to occupy in January 2016 and approximately 87,000 square feet of rentable space (the "Must-Take Premises"), which we expect to occupy one year thereafter. The Initial Premises and the Must-Take Premises each have a term of 84 months, subject to the completion of certain pre-occupancy improvements by our landlord. Our total obligation for the base rent is approximately $92.0 million. On May 13, 2014, we entered into an irrevocable, standby letter of credit with Silicon Valley Bank for $6.0 million to serve as a security deposit for the Lease.

As a result of our involvement during the construction period, whereby we have certain indemnification obligations related to the construction, we are considered for accounting purposes only, the owner of the construction project under build-to-suit lease accounting. We have recorded estimated project construction costs incurred by the landlord as an asset and a corresponding long term liability in “Property and equipment, net” and “Other liabilities, non-current” respectively, on our consolidated balance sheets. We will increase the asset and corresponding long term liability as additional building costs are incurred by the landlord during the construction period. Once the landlord completes the construction of the Initial Premises, which is estimated to be in January 2016, we will evaluate the Lease in order to determine whether or not the Lease meets the criteria for “sale-leaseback” treatment.

Future minimum rental payments required under our office lease agreements as of January 31, 2015 are as follows:



	Payments Due by Period*
	Total		Less Than 1 year		1-3 years		3-5 years		More Than 5 years
	(in thousands)
Office lease obligations	$	146,444	$	10,594	$	40,010	$	39,961	$	55,879

_________________________

*We entered into a sublease agreement on November 16, 2012 for a portion of our office space in the United Kingdom, and the future sublease rental income of $0.8 million has been included as an offset to our future minimum rental payments.

Legal Proceedings

We are subject to certain routine legal and regulatory proceedings, as well as demands and claims that arise in the normal course of our business. We make a provision for a liability relating to legal matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impact of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. In our opinion, resolution of any pending claims (either individually or in the aggregate) is not expected to have a material adverse impact on our consolidated results of operations, cash flows or financial position, nor is it possible to provide an estimated amount of any such loss. However, depending on the nature and timing of any such dispute, an unfavorable resolution of a matter could materially affect our future results of operations or cash flows, or both, in a particular quarter.

Indemnification Arrangements

During the ordinary course of business, we may indemnify, hold harmless and agree to reimburse for losses suffered or incurred, our customers, vendors, and each of their affiliates for certain intellectual property infringement and other claims by third parties with respect to our products and services, in connection with our commercial license arrangements or related to general business dealings with those parties.

As permitted under Delaware law, we have entered into indemnification agreements with our officers, directors and certain employees, indemnifying them for certain events or occurrences while they serve as our officers or directors or those of our direct and indirect subsidiaries.

To date, there have not been any costs incurred in connection with such indemnification obligations; therefore, there is no accrual of such amounts at January 31, 2015. We are unable to estimate the maximum potential impact of these indemnifications on our future results of operations.

Property and Equipment

12 Months Ended

Jan. 31, 2015

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and equipment are stated at cost, net of accumulated depreciation and amortization. These assets are depreciated and amortized using the straight-line method over their estimated useful lives. Property and equipment consisted of the following (in thousands):



	As of January 31,
	2015			2014
Computer equipment and software	$	28,342		$	20,451
Furniture and fixtures	7,707			5,364
Leasehold improvements	10,146			7,128
Construction in progress (1)	29,360			—
	75,555			32,943
Less: accumulated depreciation and amortization	(25,181		)	(17,438		)
Property and equipment, net	$	50,374		$	15,505

(1) This relates to the capitalization of construction costs in connection with our build-to-suit lease obligation, where we are considered the owner of the asset, for accounting purposes only, during the construction period. There is a corresponding long-term liability for this obligation on our consolidated balance sheets under “Other liabilities, non-current.” Refer to Note 3 “Commitments and Contingencies” for details.

Depreciation and amortization expense on Property and Equipment, net was $8.0 million, $7.7 million and $4.7 million for the fiscal years ended January 31, 2015, 2014 and 2013 respectively. Included in depreciation and amortization expense during the fiscal year ended January 31, 2014 was a $2.1 million impairment charge of a long-lived asset for previously capitalized Storm software development costs as a result of our decision to make Storm available to customers at no cost.

Acquisitions, Goodwill and Other Intangible Assets

12 Months Ended

Jan. 31, 2015

Business Combinations [Abstract]

Acquisitions, Goodwill and Intangible Assets

BugSense

On September 25, 2013, we acquired BugSense, a privately-held Delaware corporation, which developed and offered as a service an analytics solution for machine data generated by mobile devices. This acquisition has been accounted for as a business combination. The purchase price of $9.0 million paid in cash was allocated as follows: $4.7 million to identifiable intangible assets, $0.7 million to net deferred tax liability recorded and $0.7 million to net liabilities assumed, and the excess $5.7 million of the purchase price over the fair value of net assets acquired was recorded as goodwill allocated to our one operating segment. Goodwill is primarily attributable to our ability to further improve the overall performance of our mobile data gathering capabilities, expand our visibility into machine data generated by mobile devices and the value of acquired personnel. This goodwill is not deductible for U.S. income tax purposes. Pro forma results of operations of the acquired business have not been presented, as we do not consider the results to have a material effect on any of the periods presented in our consolidated statements of operations.

The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands, except Useful Life):



	Fair value		Useful Life (months)
Developed technology	$	2,940	36
Customer relationships	1,460		36
Other acquired intangible assets	330		24
Total intangible assets subject to amortization	$	4,730

Cloudmeter

On December 6, 2013, we acquired Cloudmeter, a privately-held Delaware corporation, which developed technology that enables users to capture machine data directly from network traffic. This acquisition has been accounted for as a business combination. The purchase price of $21.0 million paid in cash was allocated as follows: $8.5 million to identifiable intangible assets, $0.6 million to net deferred tax liability recorded and $0.2 million to net liabilities assumed, and the excess $13.3 million of the purchase price over the fair value of net assets acquired was recorded as goodwill allocated to our one operating segment. Goodwill is primarily attributable to enhancing the ability of our customers to analyze machine data directly from their networks and correlate it with other machine-generated data to gain insights across our core use cases in application and infrastructure management, IT operations, security and business analytics. This goodwill is not deductible for U.S. income tax purposes. Pro forma results of operations of the acquired business have not been presented as we do not consider the results to have a material effect on any of the periods presented in our consolidated statements of operations.

The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands, except Useful Life):



	Fair value		Useful Life (months)
Developed technology	$	7,330	48
In-process research and development	500		Indefinite
Customer relationships	160		36
Other acquired intangible assets	480		24-36
Total intangible assets subject to amortization	$	8,470

Intangible Assets

Intangible assets subject to amortization realized from acquisitions as of January 31, 2015 are as follows (in thousands, except Useful Life):



	Gross Fair Value		Accumulated Amortization			Net Book Value		Weighted Average Remaining Useful Life (months)
Developed technology	$	12,770	$	(3,653	)	$	9,117	31
Customer relationships	1,620		(711		)	909		20
Other acquired intangible assets	810		(420		)	390		17
Total intangible assets subject to amortization	$	15,200	$	(4,784	)	$	10,416

Additionally, we recognized $0.5 million in expense related to the change in net realizable value of in-process research and development obtained upon the acquisition of Cloudmeter during the fiscal year ended January 31, 2015.

The expected future amortization expense for acquired intangible assets as of January 31, 2015 is as follows (in thousands):



Fiscal Period:
Fiscal 2016	$	4,462
Fiscal 2017	3,802
Fiscal 2018	2,152
Total amortization expense	$	10,416

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

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+ Details

Debt Financing Facilities	12 Months Ended
Debt Financing Facilities	Jan. 31, 2015
Debt Disclosure [Abstract]
Debt Financing Facilities	Debt Financing Facilities On May 9, 2013 we entered into a Loan Agreement with Silicon Valley Bank. The agreement provides for a revolving line of credit facility, which expires May 9, 2015. Under the agreement, we are able to borrow up to $25 million. Interest on any drawdown under the revolving line of credit accrues either at the prime rate (3.25% in January 2015) or the LIBOR rate plus 2.75%. As of January 31, 2015, we had no balance outstanding under this agreement. The agreement includes restrictive covenants, in each case subject to certain exceptions, that limit our ability to: sell or otherwise dispose of our business or property; change our business, liquidate or dissolve or undergo a change in control; enter into mergers, consolidations and acquisitions; incur indebtedness; create liens; pay dividends or make distributions; make investments; enter into material transactions with affiliates; pay any subordinated debt or amend certain terms thereof; or become an investment company. We were in compliance with all covenants as of January 31, 2015.

Stockholder's Equity	12 Months Ended
Stockholder's Equity	Jan. 31, 2015
Equity [Abstract]
Stockholders Equity	Stockholder's Equity Common Stock Our certificate of incorporation, as amended and restated, authorizes us to issue 1,000,000,000 shares of common stock, $0.001 par value per share. At January 31, 2015 and January 31, 2014, 123,538,492 shares and 116,099,516 shares of common stock were issued and outstanding, respectively. Early Exercise of Employee Options Stock options granted under our stock option plan provide certain employee option holders the right to exercise unvested options for shares of restricted common stock. Shares of restricted common stock, in the amounts of 18,750 and 56,250 at January 31, 2015 and January 31, 2014, respectively, were subject to a repurchase right held by us at the original issuance price in the event the optionees’ employment is terminated either voluntarily or involuntarily. For early exercises of employee options, this repurchase right generally lapses as to 1/4th of the shares subject to the option on the first anniversary of the vesting start date and as to 1/48th of the shares monthly thereafter. These repurchase terms are considered to be a forfeiture provision and do not result in variable accounting. The restricted shares issued upon early exercise of stock options are legally issued and outstanding. However, these restricted shares are only deemed outstanding for basic earnings per share computation purposes upon the respective repurchase rights lapsing. We treat cash received from employees for the exercise of unvested options as a refundable deposit shown as a liability on our consolidated balance sheets. Convertible Preferred Stock Upon the closing of our IPO, all outstanding shares of convertible preferred stock were converted into shares of common stock. Warrants to purchase convertible preferred stock were converted into warrants to purchase common stock. Warrants to Purchase Convertible Preferred Stock Prior to the closing of our IPO, we remeasured the fair value of the preferred stock warrants at each balance sheet date. The fair value of the outstanding warrants was classified within non-current liabilities on the consolidated balance sheets, and any changes in fair value were recognized as a component of Other income (expense), net in our consolidated statements of operations. We performed the final remeasurement of the warrants at the closing date of our IPO and recorded an expense of $14.1 million arising from the revaluation during the three months ended April 30, 2012.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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Reference 19: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Stock Compensation Plans

12 Months Ended

Jan. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Compensation Plans

Equity Incentive Plans

In November 2003, our board adopted the 2003 Equity Incentive Plan (the “2003 Plan”). The 2003 Plan authorizes the granting of common stock options and restricted stock awards to employees, directors and consultants.

In January 2012, our board approved the 2012 Equity Incentive Plan (the “2012 Plan”), which became effective upon the effectiveness of our IPO registration statement on Form S-1, on April 18, 2012. The 2012 Plan provides for the grant of incentive stock options, within the meaning of Section 422 of the Internal Revenue Code, to our employees and any parent and subsidiary corporations’ employees, and for the grant of nonstatutory stock options, restricted stock, restricted stock units (“RSUs”), stock appreciation rights, performance units and performance shares to our employees, directors and consultants and any parent or subsidiary corporations’ employees and consultants. Upon the effectiveness of our IPO registration statement on Form S-1, all shares that were reserved but not issued under the 2003 Plan became available for issuance under the 2012 Plan and no further shares will be granted pursuant to the 2003 Plan. Canceled or forfeited equity awards under the 2003 Plan will also become available for issuance under the 2012 Plan. The term of an incentive stock option may not exceed 10 years, except that with respect to any participant who owns more than 10% of the voting power of all classes or our outstanding stock, the term must not exceed 5 years. Options and RSUs generally vest over 4 years.

The 2012 plan provides for annual automatic increases on February 1 to the shares reserved for issuance. The automatic increase of the number of shares available for issuance under the 2012 Plan is equal to the least of 10 million shares, 5% of the outstanding shares of common stock as of the last day of our immediately preceding fiscal year or such other amount as our board may determine.

The following table summarizes the stock option and RSU award activity during the fiscal years ended January 31, 2014 and 2015:



			Options Outstanding							RSUs Outstanding
	Available for Grant		Shares		Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value (1)		Shares
								(in thousands)
Balances as of January 31, 2013	7,867,788		18,917,547		$	4.26
Additional shares authorized	5,046,017
Options granted	(5,000	)	5,000		70.48
Options exercised	—		(7,254,049	)	3.27
Options forfeited and expired	574,060		(574,060	)	6.08
RSUs granted	(8,090,820	)								8,090,820
RSUs vested	—									(748,880	)
RSUs forfeited	252,959									(252,959	)
Shares withheld related to net share settlement of RSUs	273,769
Balances as of January 31, 2014	5,918,773		11,094,438		$	4.84	6.42	$	800,933	9,993,688
Additional shares authorized	5,804,975
Options granted	(40,000	)	40,000		88.64
Options exercised	—		(4,213,746	)	3.99
Options forfeited and expired	383,837		(383,837	)	7.17
RSUs granted	(6,470,969	)								6,470,969
RSUs vested	—									(2,862,027	)
RSUs forfeited and canceled	1,122,262									(1,122,262	)
Balances as of January 31, 2015	6,718,878		6,536,855		$	5.76	5.59	$	301,532	12,480,368
Vested and expected to vest			6,530,710		$	5.74	5.59	$	301,350	12,147,406
Exercisable as of January 31, 2015			4,611,570		$	3.60	5.00	$	221,639

(1) The intrinsic value is calculated as the difference between the exercise price of the underlying stock option award and the closing market price of our common stock as of January 31, 2015.

During fiscal 2014, upon each settlement date of our outstanding RSUs to current employees, RSUs were withheld to cover the required withholding tax, which was based on the value of the RSU on the settlement date as determined by the closing price of our common stock on the trading day of the applicable settlement date. The remaining shares were delivered to the recipient as shares of our common stock. The amount remitted to the tax authorities for the employees' tax obligation was reflected as a financing activity within our consolidated statements of cash flows. These shares withheld by us as a result of the net settlement of RSUs were not considered issued and outstanding, thereby reducing our shares outstanding used to calculate earnings per share. These shares were returned to the reserves and were available for future issuance under our 2012 Equity Incentive Plan.

During fiscal 2015, we began requiring that employees sell a portion of the shares that they receive upon the vesting of RSUs in order to cover any required withholding taxes, rather than our previous approach of net share settlement.

During fiscal 2015, $0.8 million in tax benefits have been realized from exercised stock options. At January 31, 2015, there was a total unrecognized compensation cost of $9.0 million related to these stock options, adjusted for estimated forfeitures, which is expected to be recognized over a weighted-average period of 0.9 years. At January 31, 2015, there was a total unrecognized compensation cost of $620.3 million related to RSUs, adjusted for estimated forfeitures, which is expected to be recognized over the next 3.1 years.

The aggregate intrinsic value of options exercised during the fiscal year ended January 31, 2015 was $270.1 million. The weighted-average grant date fair value of options granted was $43.31 per share for the fiscal year ended January 31, 2015. The weighted-average grant date fair value of RSUs granted was $61.38 per share for the fiscal year ended January 31, 2015. The aggregate intrinsic value of RSUs vested during the fiscal year ended January 31, 2015 was $172.6 million.

At January 31, 2014, there was a total unrecognized compensation cost of $19.0 million related to these stock options, adjusted for estimated forfeitures, which was expected to be recognized over the next 1.7 years. The total intrinsic value of options exercised during fiscal 2014 and fiscal 2013 was $359.3 million and $134.7 million, respectively. The weighted-average grant date fair value of options granted was $35.86 per share and $7.65 per share for fiscal 2014 and fiscal 2013, respectively.

Employee Stock Purchase Plan

Our 2012 Employee Stock Purchase Plan (the “ESPP”) allows eligible employees to purchase shares of our common stock at a discount through payroll deductions of up to 15% of their eligible compensation, at not less than 85% of the fair market value, as defined in the ESPP, subject to any plan limitations. The ESPP provides for consecutive 12-month offering periods, starting on the first trading day on or after June 15 and December 15 of each year. The ESPP provides for an automatic increase of the number of shares available for issuance under the ESPP equal to the least of 4 million shares, 2% of the outstanding shares of our common stock on the last day of the immediately preceding fiscal year, or such other amount as may be determined by our board of directors.

Stock-Based Compensation Expense

Stock-based compensation expense related to our stock-based awards, employee stock purchases and restricted stock units was allocated as follows:



	Fiscal Year Ended January 31,
(in thousands)	2015		2014		2013
Cost of revenues	$	17,189	$	5,283	$	1,217
Research and development	60,777		20,829		6,170
Sales and marketing	90,064		30,012		8,093
General and administrative	46,149		13,244		4,000
Total stock-based compensation expense	$	214,179	$	69,368	$	19,480

Valuation Assumptions

We estimated the fair values of each option awarded on the date of grant using the Black-Scholes option pricing model utilizing the assumptions noted below. The expected term of the options is based on the average period the stock options are expected to remain outstanding calculated as the midpoint of the options’ vesting terms and contractual expiration periods, as we do not have sufficient historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior. The expected stock price volatility for our stock was determined by examining the historical volatilities of a group of our industry peers as we do not have sufficient trading history of our common stock. The risk-free interest rate was calculated using the average of the published interest rates United States Treasury zero-coupon issues with maturities that approximate the expected term. The dividend yield assumption is zero as we do not have any history of, nor plans to make, dividend payments.

The following assumptions were used to estimate the fair value of options granted to employees:



	Fiscal Year Ended January 31,
	2015		2014		2013
Expected volatility	49.4	%	53.3	%	50.0 - 53.2%
Risk-free rate	1.96	%	1.75	%	0.82 - 1.14%
Dividend yield	—		—		—
Expected term (in years)	6.04		5.97		5.90 - 6.13

Forfeitures were estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differed from those estimates. Forfeitures were estimated based on historical experience.

The following assumptions were used to estimate the fair value of nonemployee options:



	Fiscal Year Ended January 31,
	2015	2014	2013
Expected volatility	50.5 - 51.4%	49.8 - 58.0%	49.7 - 51.7%
Risk-free rate	1.85 - 2.43%	1.37 - 2.52%	1.38 - 1.87%
Dividend yield	—	—	—
Expected term (in years)	6.70 - 7.96	7.45 - 9.12	8.05 - 9.35

The following assumptions were used to estimate the fair value of the ESPP:



	Fiscal Year Ended January 31,
	2015	2014	2013
Expected volatility	38.4 - 59.0%	33.9 - 44.4%	42.0 - 49.1%
Risk-free rate	0.07 - 0.22%	0.08 - 0.13%	0.10- 0.19%
Dividend yield	—	—	—
Expected term (in years)	0.50 - 1.00	0.50 - 1.00	0.50 - 1.16

Geographic Information

12 Months Ended

Jan. 31, 2015

Segment Reporting [Abstract]

Geographic Information

Revenue

Revenues by geography are based on the shipping address of the customer. The following tables present our revenues by geographic region for the periods presented (in thousands):



	Fiscal Year Ended January 31,
	2015		2014		2013
United States	$	342,728	$	234,458	$	155,926
International	108,147		68,165		43,018
Total revenues	$	450,875	$	302,623	$	198,944

Other than the United States, no other individual country exceeded 10% of total revenues during any of the periods presented. One channel partner represented 12% of total revenues during fiscal 2015. The revenues from this channel partner is comprised of a number of customer transactions, none of which were individually greater than 10% of total revenues during fiscal 2015. No individual customers represented greater than 10% of total revenues during fiscal 2014 or 2013. At January 31, 2015 and 2014, no customer exceeded 10% of total accounts receivable.

Property and Equipment

The following tables present our property and equipment by geographic region for the periods presented (in thousands):



	As of January 31,
	2015		2014
United States	$	47,236	$	14,005
International	3,138		1,500
Total property and equipment, net	$	50,374	$	15,505

Other than the United States, no other individual country exceeded 10% of total property and equipment as of January 31, 2015 or 2014.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Income Taxes

12 Months Ended

Jan. 31, 2015

Income Tax Disclosure [Abstract]

Income Taxes

Loss before income tax expense consists of the following for the periods shown below (in thousands):



	Fiscal Year Ended January 31,
	2015			2014			2013
United States	$	(221,041	)	$	(80,900	)	$	(37,613	)
International	6,201			1,898			1,645
Total	$	(214,840	)	$	(79,002	)	$	(35,968	)

Income tax expense consists of the following for the periods shown below (in thousands):



	Fiscal Year Ended January 31,
	2015			2014			2013
Current tax provision:
Federal	$	—		$	—		$	—
State	138			178			50
Foreign	2,465			1,202			944
Total current tax provision	2,603			1,380			994
Deferred tax provision:
Federal	(170		)	(1,043		)	—
State	(14		)	(131		)	—
Foreign	(143		)	(200		)	(281		)
Total deferred tax provision	(327		)	(1,374		)	(281		)
Total tax provision	$	2,276		$	6		$	713

For the fiscal year ended January 31, 2015, our tax provision consisted principally of state taxes in the United States and foreign taxes from legal entities established in foreign jurisdictions and withholding taxes paid. For the fiscal year ended January 31, 2014, our tax provision consisted principally of state and foreign income tax expense, offset by a partial release of valuation allowance on our United States deferred tax asset, as a result of the acquisitions made during the 2014 fiscal year. For the fiscal year ended January 31, 2013, our tax provision consisted principally of state and foreign income tax expense.

The reconciliation of federal statutory income tax rate to our effective income tax rate is as follows (in thousands):



	Fiscal Year Ended January 31,
	2015			2014			2013
Expected provision at United States federal statutory rate	$	(73,635	)	$	(26,861	)	$	(12,229	)
State income taxes - net of federal benefit	(3,914		)	(2,124		)	(375		)
Stock options	9,570			3,300			4,452
Research and development tax credits	(6,647		)	(6,309		)	(2,725		)
Tax reserve for uncertain tax positions	(10		)	8			25
Change in valuation allowance	75,910			32,069			11,205
Non-deductible expenses	1,006			866			333
Release of valuation allowance due to acquisitions	—			(1,173		)	—
Other	(4		)	230			27
Total tax provision	$	2,276		$	6		$	713

Deferred tax assets and liabilities consist of the following (in thousands):



	Fiscal Year Ended January 31,
	2015			2014
Deferred tax assets:
Net operating loss carryforwards	$	68,527		$	18,979
Accrued liabilities	7,362			4,326
Tax credit carryforwards	22,396			13,314
Stock-based compensation	24,772			12,667
Deferred revenue	14,996			13,003
Valuation allowance	(135,655		)	(57,464		)
Total deferred tax assets	2,398			4,825
Deferred tax liabilities:
Depreciation and amortization	(1,776		)	(4,529		)
Total deferred tax liabilities	(1,776		)	(4,529		)
Net deferred taxes	622			296
Recorded as:
Current deferred tax assets	15,017			8,614
Current valuation allowance	(14,682		)	(7,920		)
Non-current deferred tax assets	121,260			49,147
Non-current valuation allowance	(120,973		)	(49,545		)
Net deferred tax assets	$	622		$	296

On the consolidated balance sheets, these deferred tax assets are included in Prepaid expenses and other current assets and other assets.

Net operating loss and tax credit carry forwards as of January 31, 2015 are as follows (in thousands):



	Amount		Expiration years
Net operating loss, federal	$	821,859	2025-2035
Net operating loss, state	277,082		2016-2035
Tax credit, federal	18,829		2026-2035
Tax credit, state	17,900		N/A

ASC Topic 740, Income Taxes, requires that the tax benefit of net operating losses, temporary differences and credit carryforwards be recorded as an asset to the extent that we assess that realization is more likely than not. Realization of the future tax benefits is dependent on our ability to generate sufficient taxable income within the carryforward period. Due to our history of U.S. operating losses, we believe the recognition of the deferred tax assets arising from the above mentioned future tax benefits is currently not more likely than not to be realized and, accordingly, have provided a full valuation allowance against net U.S. deferred tax assets. The valuation allowance totaled $135.7 million, $57.5 million and $24.5 million for fiscal 2015, 2014, and 2013, respectively.

The gross increase in the valuation allowance was $78.2 million between fiscal 2015 and 2014. At January 31, 2015, we had federal and state net operating loss carryforwards of $821.9 million and