SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

The following sets forth selected unaudited quarterly consolidated statements of operations data for each of the eight quarters in the period ended July 31, 2018. The information for each of these quarters has been prepared on a basis consistent with our audited annual consolidated financial statements included elsewhere in this report and, in the opinion of management, includes all adjustments of a normal, recurring nature that are necessary for the fair presentation of the results of operations for these periods in accordance with U.S. GAAP. This data should be read in conjunction with our audited consolidated financial statements and related notes included elsewhere in this report. These historical quarterly operating results are not necessarily indicative of the results that may be expected for a full fiscal year or any future period.



	Three Months Ended
	October 31, 2016 ⁽¹⁾			January 31, 2017 ⁽¹⁾			April 30, 2017 ⁽¹⁾			July 31, 2017 ⁽¹⁾			October 31, 2017			January 31, 2018			April 30, 2018			July 31, 2018
	(unaudited, in thousands, except per share amounts)
Revenue:
Product	$	153,536		$	158,213		$	160,076		$	201,472		$	219,052		$	223,170		$	221,117		$	224,650
Support, entitlements and other services	35,025			41,001			45,594			50,986			56,500			63,574			68,296			79,098
Total revenue	188,561			199,214			205,670			252,458			275,552			286,744			289,413			303,748
Cost of revenue:
Product ⁽³⁾⁽⁴⁾	52,210			58,403			62,593			76,187			85,162			83,217			66,680			41,068
Support, entitlements and other services⁽³⁾	17,552			18,443			20,613			21,330			23,460			25,311			28,935			32,197
Total cost of revenue	69,762			76,846			83,206			97,517			108,622			108,528			95,615			73,265
Gross profit	118,799			122,368			122,464			154,941			166,930			178,216			193,798			230,483
Operating expenses:
Sales and marketing ⁽³⁾⁽⁴⁾	128,625			111,374			126,746			134,276			145,405			151,201			169,860			183,191
Research and development ⁽³⁾	75,281			70,914			74,607			67,817			64,512			70,924			81,291			97,050
General and administrative ⁽³⁾	29,372			15,481			15,610			16,878			16,052			15,948			24,929			29,472
Total operating expenses	233,278			197,769			216,963			218,971			225,969			238,073			276,080			309,713
Loss from operations	(114,479		)	(75,401		)	(94,499		)	(64,030		)	(59,039		)	(59,857		)	(82,282		)	(79,230		)
Other income (expense), net	(25,712		)	(421		)	303			(547		)	(189		)	(861		)	(4,235		)	(4,021		)
Loss before provision for income taxes	(140,191		)	(75,822		)	(94,196		)	(64,577		)	(59,228		)	(60,718		)	(86,517		)	(83,251		)
Provision for income taxes	111			547			2,639			1,555			2,259			1,913			(843		)	4,118
Net loss	$	(140,302	)	$	(76,369	)	$	(96,835	)	$	(66,132	)	$	(61,487	)	$	(62,631	)	$	(85,674	)	$	(87,369	)
Net loss per share attributable to Class A and Class B common stockholders—basic and diluted ⁽²⁾	$	(1.89	)	$	(0.54	)	$	(0.67	)	$	(0.43	)	$	(0.39	)	$	(0.39	)	$	(0.51	)	$	(0.51	)


(1)	Adjusted to include the impact of ASC 606. Refer to Note 3 for more details on the impact of the adoption of this standard.


(2)	Basic and diluted earnings per share are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted per share amounts may not equal annual basic and diluted per share amounts.


(3)	Includes stock-based compensation as follows:



	Three Months Ended
	October 31, 2016		January 31, 2017		April 30, 2017		July 31, 2017		October 31, 2017		January 31, 2018		April 30, 2018		July 31, 2018
	(unaudited, in thousands)
Product cost of sales	$	966	$	848	$	610	$	642	$	570	$	684	$	634	$	692
Support, entitlements and other services cost of sales	3,350		2,389		2,471		2,201		2,072		2,133		1,951		2,789
Sales and marketing	33,891		15,528		15,726		12,972		13,766		15,942		18,051		17,301
Research and development	34,026		28,759		27,041		19,218		15,542		17,023		16,474		25,350
General and administrative	18,495		5,083		4,503		2,772		3,565		6,229		7,836		9,264
Total	$	90,728	$	52,607	$	50,351	$	37,805	$	35,515	$	42,011	$	44,946	$	55,396


(4)	Includes amortization of intangible assets as follows:



	Three Months Ended
	October 31, 2016		January 31, 2017		April 30, 2017		July 31, 2017		October 31, 2017		January 31, 2018		April 30, 2018		July 31, 2018
	(unaudited, in thousands)
Product cost of sales	$	238	$	360	$	358	$	358	$	895	$	1,164	$	1,447	$	2,135
Sales and marketing	167		248		250		250		211		192		222		289
Total	$	405	$	608	$	608	$	608	$	1,106	$	1,356	$	1,669	$	2,424