Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2019 | Mar. 22, 2019 | Jul. 31, 2018 | |
Document Information [Abstract] | |||
Document Type | 10-K | ||
Document Fiscal Year Focus | 2019 | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 31, 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | SMARTSHEET INC | ||
Entity Central Index Key | 0001366561 | ||
Current Fiscal Year End Date | --01-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 652.2 | ||
Entity Common Stock, Shares Outstanding | 105,543,350 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Revenue | |||
Revenues | $ 177,722,000 | $ 111,253,000 | $ 66,964,000 |
Cost of revenue | |||
Total cost of revenue | 33,849,000 | 21,682,000 | 14,133,000 |
Gross profit | 143,873,000 | 89,571,000 | 52,831,000 |
Operating expenses | |||
Research and development | 58,841,000 | 37,590,000 | 19,640,000 |
Sales and marketing | 106,067,000 | 72,925,000 | 40,071,000 |
General and administrative | 34,049,000 | 28,034,000 | 8,275,000 |
Total operating expenses | 198,957,000 | 138,549,000 | 67,986,000 |
Loss from operations | (55,084,000) | (48,978,000) | (15,155,000) |
Interest income (expense) and other, net | 1,492,000 | (435,000) | (29,000) |
Net loss before income tax provision (benefit) | (53,592,000) | (49,413,000) | (15,184,000) |
Income tax provision (benefit) | 293,000 | (307,000) | 0 |
Net loss | (53,885,000) | (49,106,000) | (15,184,000) |
Deemed dividend | 0 | (4,558,000) | 0 |
Net loss attributable to common shareholders | $ (53,885,000) | $ (53,664,000) | $ (15,184,000) |
Net loss per share attributable to common shareholders, basic and diluted (in usd per share) | $ (0.65) | $ (2.94) | $ (1) |
Weighted-average shares outstanding used to compute net loss per share attributable to common shareholders, basic and diluted (in shares) | 83,141 | 18,273 | 15,241 |
Subscription | |||
Revenue | |||
Revenues | $ 157,529,000 | $ 100,368,000 | $ 62,416,000 |
Cost of revenue | |||
Total cost of revenue | 19,297,000 | 13,008,000 | 10,117,000 |
Professional services | |||
Revenue | |||
Revenues | 20,193,000 | 10,885,000 | 4,548,000 |
Cost of revenue | |||
Total cost of revenue | $ 14,552,000 | $ 8,674,000 | $ 4,016,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (53,885) | $ (49,106) | $ (15,184) |
Other comprehensive loss: | |||
Net unrealized loss on available-for-sale securities | 0 | (1) | (18) |
Comprehensive loss | $ (53,885) | $ (49,107) | $ (15,202) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2019 | Jan. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 213,085 | $ 58,158 |
Accounts receivable, net of allowances of $1,234 and $457, respectively | 30,173 | 14,870 |
Prepaid expenses and other current assets | 3,922 | 4,628 |
Total current assets | 247,180 | 77,656 |
Long-term assets | ||
Restricted cash | 2,620 | 2,901 |
Deferred commissions | 29,014 | 15,291 |
Property and equipment, net | 22,540 | 17,237 |
Intangible assets, net | 1,827 | 1,547 |
Goodwill | 5,496 | 445 |
Other long-term assets | 67 | 1,527 |
Total assets | 308,744 | 116,604 |
Current liabilities | ||
Accounts payable | 4,658 | 2,641 |
Accrued compensation and related benefits | 25,557 | 13,253 |
Other accrued liabilities | 6,544 | 3,061 |
Capital leases payable | 3,768 | 2,833 |
Deferred revenue | 95,766 | 57,102 |
Total current liabilities | 136,293 | 78,890 |
Capital leases payable, non-current | 2,164 | 3,713 |
Deferred revenue, non-current | 367 | 179 |
Convertible preferred stock warrant liability | 0 | 1,272 |
Other long-term liabilities | 2,928 | 604 |
Total liabilities | 141,752 | 84,658 |
Commitments and contingencies (Note 14) | ||
Convertible preferred stock | 0 | 112,687 |
Shareholders’ equity (deficit): | ||
Preferred stock | 0 | 0 |
Common stock | 0 | 0 |
Additional paid-in capital | 327,510 | 25,892 |
Accumulated deficit | (160,518) | (106,633) |
Total shareholders’ equity (deficit) | 166,992 | (80,741) |
Total liabilities, convertible preferred stock, and shareholders’ equity (deficit) | 308,744 | 116,604 |
Common Class A | ||
Shareholders’ equity (deficit): | ||
Common stock | 0 | 0 |
Common Class B | ||
Shareholders’ equity (deficit): | ||
Common stock | $ 0 | $ 0 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2019 | Jan. 31, 2018 |
Accounts receivable, allowances | $ 1,234 | $ 457 |
Convertible preferred stock authorized (in shares) | 0 | 67,756,647 |
Convertible preferred stock issued (in shares) | 0 | 67,619,377 |
Convertible preferred stock outstanding (in shares) | 0 | 67,619,377 |
Convertible preferred stock liquidation preference (in shares) | $ 113,217 | |
Preferred stock authorized (in shares) | 10,000,000 | 0 |
Preferred stock issued (in shares) | 0 | 0 |
Preferred stock outstanding (in shares) | 0 | 0 |
Common stock authorized (in shares) | 0 | 107,679,381 |
Common stock issued (in shares) | 0 | 20,280,741 |
Common stock outstanding (in shares) | 0 | 20,280,741 |
Common Class A | ||
Common stock authorized (in shares) | 500,000,000 | 0 |
Common stock issued (in shares) | 48,003,701 | 0 |
Common stock outstanding (in shares) | 48,003,701 | 0 |
Common Class B | ||
Common stock authorized (in shares) | 500,000,000 | 0 |
Common stock issued (in shares) | 56,967,742 | 0 |
Common stock outstanding (in shares) | 56,967,742 | 0 |
Consolidated Statements of Chan
Consolidated Statements of Change in Convertible Preferred Stock and Shareholders' Equity (Deficit) Statement - USD ($) $ in Thousands | Total | Common Stock (Class A and B) | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) |
Beginning balance, convertible preferred stock (in shares) at Jan. 31, 2016 | 61,284,703 | ||||
Beginning balance, convertible preferred stock at Jan. 31, 2016 | $ 60,260 | ||||
Ending balance, convertible preferred stock (in shares) at Jan. 31, 2017 | 61,284,703 | ||||
Ending balance, convertible preferred stock at Jan. 31, 2017 | $ 60,260 | ||||
Beginning balance, common stock (in shares) at Jan. 31, 2016 | 14,764,102 | ||||
Beginning balance at Jan. 31, 2016 | (39,605) | $ 0 | $ 2,719 | $ (42,343) | $ 19 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock option exercises (in shares) | 1,514,793 | ||||
Stock option exercises | 930 | 930 | |||
Share-based compensation expense | 1,134 | 1,134 | |||
Comprehensive loss | (15,202) | (15,184) | (18) | ||
Ending balance, common stock (in shares) at Jan. 31, 2017 | 16,278,895 | ||||
Ending balance at Jan. 31, 2017 | $ (52,743) | $ 0 | 4,783 | (57,527) | 1 |
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Issuance of convertible preferred stock (in shares) | 6,334,674 | ||||
Issuance of convertible preferred stock | $ 52,427 | ||||
Ending balance, convertible preferred stock (in shares) at Jan. 31, 2018 | 67,619,377 | ||||
Ending balance, convertible preferred stock at Jan. 31, 2018 | $ 112,687 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock option exercises (in shares) | 4,001,846 | ||||
Stock option exercises | 2,645 | 2,645 | |||
Share-based compensation expense | 18,464 | 18,464 | |||
Comprehensive loss | $ (49,107) | (49,106) | (1) | ||
Ending balance, common stock (in shares) at Jan. 31, 2018 | 20,280,741 | 20,280,741 | |||
Ending balance at Jan. 31, 2018 | $ (80,741) | $ 0 | 25,892 | (106,633) | 0 |
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Conversion of convertible preferred stock to common stock in connection with initial public offering (in shares) | (67,619,377) | ||||
Conversion of convertible preferred stock to common stock in connection with initial public offering | $ (112,687) | ||||
Ending balance, convertible preferred stock (in shares) at Jan. 31, 2019 | 0 | ||||
Ending balance, convertible preferred stock at Jan. 31, 2019 | $ 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based compensation expense | 16,091 | 16,091 | |||
Comprehensive loss | (53,885) | (53,885) | 0 | ||
Issuance of common stock under employee stock plans (in shares) | 4,331,279 | ||||
Issuance of common stock under employee stock plans | 10,221 | 10,221 | |||
Taxes paid related to net share settlement of equity awards | (380) | (380) | |||
Issuance of common stock upon net exercise of warrant (in shares) | 134,603 | ||||
Issuance of common stock upon net exercise of warrant | 2,598 | 2,598 | |||
Issuance of convertible preferred stock and common stock in connection with initial public offering, net of underwriting discounts and issuance costs (in shares) | 11,745,088 | ||||
Issuance of convertible preferred stock and common stock in connection with initial public offering, net of underwriting discounts and issuance costs | 160,401 | 160,401 | |||
Conversion of convertible preferred stock to common stock in connection with initial public offering (in shares) | 68,479,732 | ||||
Conversion of convertible preferred stock to common stock in connection with initial public offering | $ 112,687 | 112,687 | |||
Ending balance, common stock (in shares) at Jan. 31, 2019 | 0 | 104,971,443 | |||
Ending balance at Jan. 31, 2019 | $ 166,992 | $ 0 | $ 327,510 | $ (160,518) | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Cash flows from operating activities | |||
Net loss | $ (53,885) | $ (49,106) | $ (15,184) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Share-based compensation expense | 15,903 | 18,464 | 1,134 |
Remeasurement of convertible preferred stock warrant liability | 1,326 | 795 | 194 |
Depreciation of property and equipment | 7,194 | 4,019 | 978 |
Amortization of deferred commissions | 10,770 | 4,989 | 2,076 |
Unrealized foreign currency loss | 37 | 0 | 0 |
Gain on disposal of assets | 0 | 2 | 3 |
Amortization of intangible assets | 510 | 57 | 11 |
Amortization of premiums, accretion of discounts and gain on investments | 0 | 26 | 137 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (15,265) | (9,455) | (2,829) |
Prepaid expenses and other current assets | 481 | (1,856) | (828) |
Other long-term assets | 207 | (1,022) | 9 |
Accounts payable | 2,031 | 704 | 578 |
Other accrued liabilities | 3,424 | 2,014 | 469 |
Accrued compensation and related benefits | 8,732 | 6,466 | 5,052 |
Deferred commissions | (24,493) | (14,704) | (4,908) |
Other long-term liabilities | 1,322 | 457 | 26 |
Deferred revenue | 38,851 | 24,569 | 13,140 |
Net cash provided by (used in) operating activities | (2,855) | (13,581) | 58 |
Cash flows from investing activities | |||
Purchases of property and equipment | (5,767) | (6,006) | (1,820) |
Capitalized internal-use software development costs | (3,017) | (3,350) | 0 |
Purchases of investments | 0 | 0 | (5,094) |
Payments for business acquisition, net of cash acquired | (5,000) | (1,464) | 0 |
Proceeds from sales of investments | 0 | 900 | 3,655 |
Proceeds from maturity of investments | 0 | 9,235 | 12,900 |
Proceeds from sale of computer equipment | 0 | 1 | 0 |
Purchases of intangible assets | 0 | (125) | 0 |
Net cash provided by (used in) investing activities | (13,784) | (809) | 9,641 |
Cash flows from financing activities | |||
Proceeds from initial public offering, net of underwriters' discounts and commissions | 163,844 | 0 | 0 |
Payments on principal of capital leases | (3,253) | (2,326) | (303) |
Payments of deferred offering costs | (2,603) | (829) | 0 |
Proceeds from issuance of convertible preferred stock | 0 | 52,427 | 0 |
Proceeds from exercise of stock options | 6,649 | 2,164 | 930 |
Taxes paid related to net share settlement of restricted stock units | (380) | 0 | 0 |
Proceeds from Employee Stock Purchase Plan | 7,064 | 0 | 0 |
Net cash provided by financing activities | 171,321 | 51,436 | 627 |
Effect of foreign exchange on cash, cash equivalents, and restricted cash | (36) | 0 | 0 |
Net increase in cash, cash equivalents, and restricted cash | 154,646 | 37,046 | 10,326 |
Cash, cash equivalents, and restricted cash | |||
Beginning of period | 61,059 | 24,013 | 13,687 |
End of period | 215,705 | 61,059 | 24,013 |
Supplemental disclosures | |||
Cash paid for interest | 324 | 312 | 187 |
Cash paid for income taxes | 8 | 0 | 0 |
Purchases of fixed assets under capital leases | 2,639 | 3,130 | 6,045 |
Accrued purchases of property and equipment, including internal-use software | 992 | 181 | 227 |
Deemed dividends on convertible preferred stock | 0 | (4,558) | 0 |
Deferred offering costs, accrued but not yet paid | 12 | 648 | 0 |
Share-based compensation capitalized in internal-use software development costs | $ 189 | $ 0 | $ 0 |
Overview and Basis of Presentat
Overview and Basis of Presentation | 12 Months Ended |
Jan. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Overview and Basis of Presentation | Overview and Basis of Presentation Description of business Smartsheet Inc. (the “Company,” “we,” “our”) was incorporated in the State of Washington in 2005, and is headquartered in Bellevue, Washington. The Company is a leading cloud-based platform for work execution, enabling teams and organizations to plan, capture, manage, automate, and report on work at scale. Customers access their accounts online via a web-based interface or a mobile application. Some customers also purchase the Company ’ s professional services, which primarily consist of consulting and training services. Initial public offering On May 1, 2018, we completed our initial public offering (“IPO”) in which we issued and sold 11,745,088 shares of Class A common stock, inclusive of the over-allotment, at a public offering price of $15.00 per share. We received net proceeds of $160.4 million after deducting underwriting discounts and commissions of $12.3 million and other issuance costs of $3.4 million . Immediately prior to the closing of our IPO, all shares of our convertible preferred stock automatically converted into an aggregate of 68.5 million shares of Class B common stock. In addition, we authorized for future issuance a total of 500 million shares of each Class A and Class B common stock, and 10 million shares of preferred stock. Basis of presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in th e United States of America (“GAAP”) . The Company’s fiscal year ends on January 31. The consolidated financial statements include the results of Smartsheet Inc. and its wholly owned subsidiaries, which are located in the United States and the United Kingdom. All intercompany balances and transactions have been eliminated upon consolidation. Use of estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. The Company bases its estimates on historical experience and on other assumptions that its management believes are reasonable under the circumstances. Actual results could differ from those estimates. The Company’s most significant estimates and judgments involve revenue recognition with respect to the allocation of transaction consideration for the Company’s offerings; determination of the amortization period for capitalized sales commission costs; valuation of the Company’s share-ba sed compensation, including the underlying deemed fair value of common stock (prior to the closing of the IPO); u seful lives of property and equipme nt, including useful lives of internal-use software development costs; capitalization of internal-use software development costs; self-insurance costs incurred; calculation of allowance for doubtful accounts; inputs in revaluation of convertible preferred stock warrant (prior to the closing of the IPO); valuation of assets and liabilities acquired as part of business combinations; and valuation of deferred income tax assets and uncertain tax positions, among others. Dual class common stock structure In April 2018, we implemented a dual class common stock structure, authorizing for issuance 112,979,381 shares of each Class A and Class B common stock. Upon establishment of the dual class common stock structure, (1) each then existing share of common stock converted into a share of Class B common stock, (2) a warrant to purchase shares of preferred stock convertible into common stock became a warrant to purchase shares of preferred stock convertible into shares of Class B common stock, (3) all shares of convertible preferred stock then outstanding became convertible into Class B common stock subject to the same rules and conditions as the previously existing convertible preferred stock, (4) all outstanding options to purchase common stock became options to purchase an equivalent number of shares of Class B common stock, and (5) all restricted stock units (“RSUs”) became RSUs for an equivalent number of shares of Class B common stock. The Class A common stock is entitled to one vote per share and the Class B common stock is entitled to ten votes per share. The Class A common stock and Class B common stock have the same dividend and liquidation rights. The Class B common stock converts to Class A common stock at any time at the option of the holder, or automatically upon the date that is the earliest of (i) the date which is seven years from the effective date of the IPO (April 26, 2025), (ii) the date on which the outstanding shares of Class B common stock represent less than 15% of the aggregate number of shares of common stock then outstanding, (iii) the date specified by a vote of the holders of not less than a majority of the outstanding shares of Class B common stock, voting separately as a single class. In addition, each share of Class B common stock will convert automatically into one share of Class A common stock upon any transfer, except for certain permitted transfers described in our restated certificate of incorporation filed with the state of Washington on April 9, 2018. Liquidity The Company continues to be subject to the risks and challenges associated with companies at a similar stage of development, including the ability to raise additional capital to support future growth. Since inception through January 31, 2019 , the Company has incurred losses from operations and accumulated a deficit of $160.5 million . Historically, the Company has financed its operations primarily through the sale of equity securities and customer payments. The Company believes its existing cash will be sufficient to meet its working capital and capital expenditure needs for at least the next 12 months. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Segment information The Company operates as one operating segment. The Company’s chief operating decision maker is its Chief Executive Officer, who reviews consolidated financial information for purposes of making operating decisions, assessing financial performance, and allocating resources. Revenue recognition The Company derives its revenue primarily from subscription services and professional services. Revenue is recognized when control of these services is transferred to the Company ’ s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services, net of any sales taxes. The Company determines revenue recognition through the following steps: • identification of the contract, or contracts, with a customer; • identification of the performance obligations in the contract; • determination of the transaction price; • allocation of the transaction price to the performance obligations in the contract; and • recognition of revenue when, or as, the Company satisfies a performance obligation. Subscription revenue Subscription revenue primarily consists of fees from customers for access to the Company’s cloud-based platform . S ubscription revenue is recognized on a ratable basis over the subscription contract term, beginning on the date the access to the Company ’ s platform is provided, as no implementation work is required, if consideration the Company is entitled to receive is probable of collection. S ubscription contracts generally have terms of one year or one month, are billed in advance, and are non-cancelable. The subscription arrangements do not allow the customer the contractual right to take possession of the platform; as such, the arrangements are considered to be service contracts. Certain of the Company ’ s subscription contracts contain performance guarantees related to service continuity. To date, refunds related to such guarantees have been immaterial in all periods presented. Professional services revenue Professional services revenue primarily includes revenue recognized from fees for consulting and training services. The Company’s consulting services consist of platform configuration and use case optimization, and are primarily invoiced on a time and materials basis, monthly in arrears. Services revenue is recognized over time, as service hours are delivered. Smaller consulting engagements are, on occasion, provided for a fixed fee. These smaller consulting arrangements are typically of short duration (less than three months). In these cases, revenue is recognized over time, based on the proportion of hours of work performed, compared to the total hours expected to complete the engagement. Configuration and use case optimization services do not result in significant customization or modification of the software platform or user interface. Training services are billed in advance, on a fixed-fee basis, and revenue is recognized after the training program is delivered, or after customer’s right to receive training services expires. Associated out-of-pocket travel expenses related to the delivery of professional services are typically reimbursed by the customer. Out-of-pocket expense reimbursements are recognized as revenue at the point in time, or as the distinct performance obligation to which they relate is delivered. Out-of-pocket expenses are recognized as cost of professional services as incurred. On occasion, the Company sells its subscriptions to third-party resellers. The price at which the Company sells to the reseller is typically discounted, as compared to the price at which the Company would sell to an end customer, in order to enable the reseller to realize a margin on the eventual sale to the end customer. As the Company retains a fixed amount of the contract from the reseller, and does not have visibility into the pricing provided by the reseller to the end customer, the revenue is recorded net of any reseller margin. Contracts with multiple performance obligations Some of the Company’s contracts with customers contain multiple performance obligations. The Company accounts for individual performance obligations separately, as they have been determined to be distinct, i.e., the services are separately identifiable from other items in the arrangement and the customer can benefit from them on its own or with other resources that are readily available to the customer. The transaction price is allocated to the distinct performance obligations on a relative stand-alone selling price basis. Stand-alone selling prices are determined based on the prices at which the Company separately sells subscription, consulting, and training services, and based on t he Company’s overall pricing objectives, taking into consideration market conditions, value of t he Company’s contracts, the types of offerings sold, customer demographics, and other factors. Accounts receivable Accounts receivable are primarily comprised of trade receivables that are recorded at the invoice amount, net of an allowance for doubtful accounts. Subscription fees billed in advance of the related subscription term represent contract liabilities and are presented as accounts receivable and deferred revenues upon establishment of the unconditional right to invoice, typically upon signing of the non-cancelable service agreement. Our typical payment terms provide for customer payment within 30 days of the date of the contract. The allowance for doubtful accounts is based on the Company’s assessment of the collectability of accounts by considering the composition of the accounts receivable aging and historical trends on collectability. Amounts deemed uncollectible are recorded to the allowance for doubtful accounts in the consolidated balance sheets with an offsetting decrease in related deferred revenue and a charge to general and administrative expense in the statements of operations . During the year ended January 31, 2019, activity related to the Company’s provision for doubtful accounts was as follows (in thousands): Balance at January 31, 2018 $ 457 Additions 1,626 Write-offs (849 ) Balance at January 31, 2019 $ 1,234 Activity related to the Company’s provision for doubtful accounts during the years ended January 31, 2018 and 2017 was as follows (in thousands): Balance at January 31, 2016 $ 24 Additions, net of write-offs 80 Balance at January 31, 2017 104 Additions, net of write-offs 353 Balance at January 31, 2018 $ 457 Deferred revenue Deferred revenue is recorded for subscription services contracts upon establishment of unconditional right to payment under a non-cancelable contract before transferring the related services to the customer. Deferred revenue for such services is amortized into revenue over time, as those subscription services are delivered. Similarly, the Company records deferred revenue for fixed-fee professional services upon establishment of an unconditional right to payment under a non-cancelable contract. Deferred revenue for training services is recognized as revenue upon delivery of training services or upon expiration of customer’s right to receive such services. Deferred revenue for consulting services is recognized as hours of service are delivered to the customer. Deferred commissions The majority of sales commissions earned by the Company ’s sales force are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions are paid on initial contracts and on any upsell contracts with a customer. No sales commissions are paid on customer renewals. Sales commissions are deferred and then amortized on a straight-line basis over a period of benefit that the Company has determined to be three years. The Company determined the period of benefit by taking into consideration its customer contracts, expected customer life, the expected life of its technology, and other factors. Amortization expense is included in sales and marketing expenses in the accompanying statements of operations. Overhead allocations The Company allocates shared costs, such as facilities (including rent, utilities, and depreciation on equipment shared by all departments), and information technology costs to all departments based on headcount. As such, allocated shared costs are reflected in each cost of revenue and operating expense category. Cash and cash equivalents The Company considers all highly liquid investments with an original maturity of three months or less from date of purchase to be cash equivalents. C ash and cash equivalents are recorded at cost, which approximates fair value. Interest income earned on cash and cash equivalents is recorded in interest income (expense) and other, net in the accompanying statements of operations. Interest income was $3.3 million , $0.5 million , and $0.4 million for the years ended January 31, 2019, 2018, and 2017, respec tively. Restricted cash Restricted cash as of January 31, 2019 consisted of $1.8 million related to collateral for an irrevocable letter of credit (entered into during the year ended January 31, 2019 ) for additional office space in Bellevue, and $0.8 million primarily related to security deposits for the Company’s Bellevue, Boston, London, and Edinburgh leases. Restricted cash as of January 31, 2018 consisted of $2.4 million related to collateral for irrevocable letters of credit and $0.5 million related to security deposits. The letters of credit that were outstanding as of January 31, 2018 were still in effect as of January 31, 2019 ; however, the requirement to maintain $2.4 million in cash collateral for those letters of credit was removed during the year ended January 31, 2019 , and the restricted cash balance was reduced by this amount. Restricted cash as of January 31, 2017 consisted of $1.6 million related to letters of credit for the Company’s Bellevue and Boston leases and $0.3 million related to a security deposit for the Company’s Boston lease. Cash as reported on the consolidated statements of cash flows includes the aggregate amounts of cash and cash equivalents and restricted cash as shown on the consolidated balance sheets. Cash as reported on the consolidated statements of cash flows consists of the following (in thousands): January 31, 2019 2018 2017 Cash and cash equivalents $ 213,085 $ 58,158 $ 22,086 Restricted cash 2,620 2,901 1,927 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 215,705 $ 61,059 $ 24,013 Property and equipment Property and equipment are recorded at cost, net of accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the following estimated useful lives: Computer equipment 3 years Computer software 3 years Furniture and fixtures 5-7 years Leasehold improvements are amortized over the shorter of the expected useful lives of the assets or the related lease term. Maintenance and repairs that do not improve or extend the lives of the respective assets are expensed as incurred. Internal-use software development costs The Company capitalizes certain qualifying costs incurred during the application development stage in connection with the development of internal-use software. Costs related to preliminary project activities and post-implementation activities are expensed in research and development (“R&D”) as incurred. R&D expenses consist primarily of employee-related costs, hardware- and software-related costs, costs of outside services used to supplement our internal staff, and overhead allocations. Internal-use software costs of $3.5 million were capitalized in the year ended January 31, 2019 , of which $1.5 million related to costs incurred during the application development stage of software development for the Company’s platform to which subscriptions are sold. Internal-use software costs of $3.4 million were capitalized in the year ended January 31, 2018 , none of which related to costs incurred during the application development stage of software development for the Company’s platform to which subscriptions are sold. Capitalized software development costs are included within property and equipment, net on the balance sheets, and are amortized over the estimated useful life of the software, which is typically three years . The related amortization expense is recognized in the consolidated statements of comprehensive loss within the function that receives the benefit of the developed software. Amortization expense of capitalized internal-use software costs totaled $1.0 million and $0.2 million for the years ended January 31, 2019 and 2018. There was no amortization expense of capitalized internal-use software costs for the year ended January 31, 2017. The Company evaluates the useful lives of these assets and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Impairment of long-lived assets Long-lived assets, such as property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Recoverability of an asset group is measured by comparing the carrying amount to the estimated undiscounted future cash flows expected to be generated. If the carrying amount exceeds the undiscounted cash flows, the assets are determined to be impaired and an impairment charge is recognized as the amount by which the carrying amount exceeds its fair value. No impairments of long-lived assets were recorded during any of the periods presented. Business combinations When we acquire a business, the purchase price is allocated to the net tangible and identifiable intangible assets acquired based on their estimated fair values. Any residual purchase price is recorded as goodwill. The allocation of the purchase price requires management to make significant estimates in determining the fair values of assets acquired and liabilities assumed, especially with respect to intangible assets. These estimates can include, but are not limited to, the cash flows that an asset is expected to generate in the future, the appropriate weighted-average cost of capital, and the cost savings expected to be derived from acquiring an asset. These estimates are inherently uncertain and unpredictable. During the measurement period, which may be up to one year from the acquisition date, adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed may be recorded, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our consolidated statements of operations. Goodwill The Company evaluates goodwill for impairment at the reporting unit level on an annual basis (September 1), or whenever events or changes in circumstances indicate that impairment may exist. When evaluating goodwill for impairment, the Company may first perform a qualitative assessment to determine whether it is more likely than not that a reporting unit is impaired. If the Company does not perform a qualitative assessment, or if the Company determines that it is not more likely than not that the fair value of the reporting unit exceeds its carrying amount, the Company calculates the estimated fair value of the reporting unit. Fair value is the price a willing buyer would pay for the reporting unit and is typically calculated using a discounted cash flow model. If the carrying amount of the reporting unit exceeds the estimated fair value, an impairment charge is recorded to reduce the carrying value to the estimated fair value. Leases and deferred rent Leases are categorized at their inception as either operating or capital leases. Some lease agreements include incentives. Rent expense on t he Company’s operating leases for office space is recognized using the straight-line method, over the term of the agreement generally beginning once control of the space is achieved, without regard to payment terms that defer the commencement date of required rent payments. Additionally, incentives received are treated as a reduction of expense over the term of the agreement. The difference between the rent payments and the calculated rent expense using the straight-line methodology is recorded as a deferred rent liability within the other accrued liabilities and other long-term liabilities captions in the accompanying consolidated balance sheets, based on the terms of the lease. Deferred rent as of January 31, 2019 and 2018 was $2.0 million and $0.6 million , respectively. The Company begins to depreciate its capital lease assets, which mainly relate to leased data center equipment, once such equipment is received and ready for its intended use. Self-funded health insurance In December 2017, the Company elected to partially self-fund its health insurance plan. To reduce its risk related to high-dollar claims, the Company maintains individual and aggregate stop-loss insurance. The Company estimates its exposure for claims incurred but not paid at the end of each reporting period and uses historical claims data to estimate its self-insurance liability. As of January 31, 2019 and 2018, the Company’s net self-insurance reserve estimate was $0.8 million and $0.6 million , respectively, included in other accrued liabilities in the accompanying consolidated balance sheets. Advertising expenses Advertising and marketing costs are expensed as incurred, and are included in sales and marketing expense in the statements of operations. Advertising and marketing expenses we re $20.6 million , $14.8 million , and $10.5 million for the years ended January 31, 2019, 2018, and 2017, respec tively. Deferred offering costs Deferred offering costs of $3.4 million , primarily consisting of legal, accounting, and other fees related to the IPO, were offset against proceeds upon the closing of the IPO on May 1, 2018. Convertible preferred stock warrant liability The Company classified its warrant to purchase convertible preferred stock as a liability. The Company adjusted the carrying valu e of the warrant liability to fair value at the end of each reporting period utilizing the Black-Scholes option pricing model . The convertible preferred stock warrant liability was included on the Compan y’s consolidated balance sheets and its revaluation was recorded as an expense in interest income (expe nse) and other, net. Upon the closing of the IPO on May 1, 2018, the related warrant liability was reclassified to additional paid-in capital. Share-based compensation The Company measures and recognizes compensation expense for all share-based awards granted to employees and directors, based on the estimated fair value of the award on the date of grant. Expense is recognized on a straight-line basis over the vesting period of the award based on the estimated portion of the award that is expected to vest. The Company uses the Black-Scholes option pricing model to measure the fair value of stock option awards when they are granted. The Company makes several estimates in determining share-based compensation and these estimates generally require significant analysis and judgment to develop. Income taxes Income taxes are accounted for using the asset and liability method. Under this method, the Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled. The Company records a valuation allowance to reduce deferred tax assets to an amount for which realization is more likely than not. The Company evaluates and accounts for uncertain tax positions using a two-step approach. The first step is to evaluate if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained in an audit. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Company reflects interest and penalties related to income tax liabilities as a component of income tax expense. Concentrations of risk and significant customers Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash, cash equivalents, and accounts receivable. The Company maintains its cash accounts with financial institutions where deposits, at times, exceed the Federal Deposit Insurance Corporation (“FDIC”) limits. No individual customers represented more than 10% of accounts receivable as of the years ended January 31, 2019 or 2018 . No individual customers represented more than 10% of revenue for the years ended January 31, 2019 , 2018 , or 2017. Net loss per share Holders of t he Company’s convertible preferred stock participated in dividends with holders of t he Company’s common stock, but they were not contractually required to share in net losses. Accordingly, during periods of income, the Company was required to use the two-class method of calculating earnings per share. The two-class method requires that earnings per share be calculated separately for each class of security. As t he Company incurred losses during the periods presented, t he Company used the methods described below to calculate net loss per share. The Company calculates basic net loss per share by dividing net loss attributable to common shareholders by the weighted-average number of the Company’s common stock shares outstanding during the respective period. Net loss attributable to common shareholders is net loss minus convertible preferred stock dividends declared, of which there were none during the periods presented. The Company calculates diluted net loss per share using the treasury stock and if-converted methods, which consider the potential impacts of outstanding stock options, restricted stock units (“RSUs”), shares issuable pursuant to our Employee Stock Purchase Plan (“ESPP”), warrants, and convertible preferred stock. Under these methods, the numerator and denominator of the net loss per share calculation are adjusted for these securities if the impact of doing so increases net loss per share. During the periods presented, the impact is to decrease net loss per share and therefore the Company is precluded from adjusting its calculation for these securities. As a result, diluted net loss per share is calculated using the same formula as basic net loss per share. Recently adopted accounting pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016‑09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, (“ASU 2016‑09”) , which simplifies the accounting and reporting of share-based payment transactions, including adjustments to how excess tax benefits and payments for tax withholdings should be classified, and provides the election to eliminate the estimate for forfeitures. The Company adopted this ASU effective February 1, 2018. The adoption resulted in the recognition of a U.S. deferred tax asset, which was fully offset by a corresponding increase to the valuation allowance on our U.S. federal and state deferred income tax assets, and therefore did not have a material impact on our consolidated financial statements. The Company did not elect to eliminate the estimate for forfeitures. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which aims to reduce the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 requires adoption on a retrospective basis unless it is impracticable to apply, in which case the Company would be required to apply the amendments prospectively as of the earliest date practicable. The Company adopted this ASU effective February 1, 2018. The adoption of this ASU did not have a material effect on the Company’s consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”). This guidance is intended to clarify how entities present restricted cash in the statement of cash flows. The guidance requires entities to show the changes in the total of cash, cash equivalents, and restricted cash in the statement of cash flows. When cash, cash equivalents, and restricted cash are presented in more than one line item on the balance sheet, the new guidance requires a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet. The reconciliation can be presented either on the face of the statement of cash flows or in the notes to the consolidated financial statements. ASU 2016-18 is effective for fiscal years beginning after December 15, 2018, but early adoption is permitted. The Company early adopted this ASU effective February 1, 2018, retrospectively applying the new guidance to the comparative period presented in our consolidated statements of cash flows. As a result of the adoption of this ASU, because movements to and from cash and restricted cash are no longer shown separately on the consolidated statements of cash flows, the Company’s cash used in investing activities decreased by $1.0 million for the year ended January 31, 2018 and the cash provided by investing activities increased by $0.6 million for the year ended January 31, 2017 . In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”) , which simplifies the measurement of goodwill impairment. Under this new guidance, an impairment charge, if triggered, is calculated as the difference between a reporting unit’s carrying value and fair value, but it is limited to the carrying value of goodwill. The guidance is effective prospectively for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019 and early adoption is permitted. The Company early adopted this guidance effective February 1, 2018 and applied the new guidance when evaluating goodwill for impairment during the year ended January 31, 2019. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting (“ASU 2017-09”) , which clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. The guidance is effective prospectively for interim and annual periods beginning after December 15, 2017 and early adoption is permitted. The Company adopted this guidance effective February 1, 2018. The adoption of this ASU did not have a material effect on the Company’s consolidated financial statements. Recent accounting pronouncements not yet adopted In February 2016, the FASB issued ASU 2016-02, Leases: Topic (842) (“ASU 2016-02”) and has modified the standard thereafter. This standard requires the recognition of a right-of-use asset and lease liability on the balance sheet for all leases with terms longer than 12 months. This standard also requires more detailed disclosures to enable users of financial statements to understand the amount, timing, and uncertainty of cash flows arising from leases. We will adopt the new lease accounting standard on February 1, 2019, using the modified retrospective transition method and recording a cumulative-effect balance sheet adjustment. The adoption of the new lease accounting standard will have a material impact on our balance sheet on the date of adoption, primarily due to our office space operating leases discussed in Note 14. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other-Internal-Use Software (“ASU 2018-15”) , which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This guidance is effective for interim and annual reporting periods beginning after December 15, 2019, and early adoption is permitted. The Company does not expect adoption of this ASU to have a material effect on the Company’s consolidated financial statements. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Jan. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers During the years ended January 31, 2019 , 2018 , and 2017 the Company recognized $55.3 million , $32.0 million , and $19.2 million of subscription revenue, respectively, and $1.5 million , $0.6 million , and $0.3 million of professional services revenue, respectively, which were included in the deferred revenue balance as of January 31, 2018 , 2017 , and 2016 , respectively. As of January 31, 2019 , including amounts already invoiced and amounts contracted but not yet invoiced, approximately $101.3 million of revenue was expected to be recognized from remaining performance obligations, of which $99.0 million related to subscription services and $2.3 million related to professional services. Approximately 97% of revenue related to remaining performance obligations is expected to be recognized in the next 12 months. Deferred Commissions Deferred commissions were $29.0 million as of January 31, 2019 and $15.3 million as of January 31, 2018 . Amortization expense for deferred commissions was $10.8 million, $5.0 million , and $ 2.1 million for the years ended January 31, 2019 , 2018 , and 2017 , respectively. Deferred commissions are amortized over a period of three years and the amortization expense is recorded in sales and marketing on the Company’s consolidated statements of operations. |
Deferred Commissions
Deferred Commissions | 12 Months Ended |
Jan. 31, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Deferred Commissions | Revenue from Contracts with Customers During the years ended January 31, 2019 , 2018 , and 2017 the Company recognized $55.3 million , $32.0 million , and $19.2 million of subscription revenue, respectively, and $1.5 million , $0.6 million , and $0.3 million of professional services revenue, respectively, which were included in the deferred revenue balance as of January 31, 2018 , 2017 , and 2016 , respectively. As of January 31, 2019 , including amounts already invoiced and amounts contracted but not yet invoiced, approximately $101.3 million of revenue was expected to be recognized from remaining performance obligations, of which $99.0 million related to subscription services and $2.3 million related to professional services. Approximately 97% of revenue related to remaining performance obligations is expected to be recognized in the next 12 months. Deferred Commissions Deferred commissions were $29.0 million as of January 31, 2019 and $15.3 million as of January 31, 2018 . Amortization expense for deferred commissions was $10.8 million, $5.0 million , and $ 2.1 million for the years ended January 31, 2019 , 2018 , and 2017 , respectively. Deferred commissions are amortized over a period of three years and the amortization expense is recorded in sales and marketing on the Company’s consolidated statements of operations. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Jan. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share The following tables present calculations for basic and diluted net loss per share (in thousands, except per share data): Year Ended January 31, 2019 2018 2017 Numerator: Net loss attributable to common shareholders $ (53,885 ) $ (53,664 ) $ (15,184 ) Denominator: Weighted-average common shares outstanding 83,141 18,273 15,241 Net loss per share, basic and diluted $ (0.65 ) $ (2.94 ) $ (1.00 ) The following outstanding shares of common stock equivalents (in thousands) as of the periods presented were excluded from the computation of diluted net loss per share attributable to common shareholders for the periods presented because the impact of including them would have been anti-dilutive: January 31, 2019 2018 2017 Convertible preferred shares (as converted) — 68,480 62,145 Convertible preferred stock warrant — 137 137 Shares subject to outstanding common stock awards 13,297 13,355 13,052 Shares issuable pursuant to the Employee Stock Purchase Plan 134 — — Total potentially dilutive shares 13,431 81,972 75,334 |
Investments
Investments | 12 Months Ended |
Jan. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments As of January 31, 2019 and January 31, 2018 , the Company did no t hold any available-for-sale investments. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and liabilities recorded at fair value in the consolidated financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The lowest level of significant input determines the placement of the fair value measurement within the following hierarchical levels: • Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. • 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. The following tables present information about the Company’s financial assets and liabilities that are measured at fair value and indicates the fair value hierarchy of the valuation inputs used (in thousands) as of: January 31, 2019 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 203,746 $ 203,746 Restricted cash: Certificates of deposit 1,775 1,775 Total assets $ 203,746 $ 1,775 $ — $ 205,521 January 31, 2018 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 55,702 $ — $ — $ 55,702 Liabilities: Convertible preferred stock warrant liability $ — $ — $ 1,272 $ 1,272 The carrying amounts of certain financial instruments, including cash held in banks, accounts receivable, and accounts payable, approximate fair value due to their short-term maturities and are excluded from the fair value tables above. It is the Company’s policy to recognize transfers of assets and liabilities between levels of the fair value hierarchy at the end of a reporting period. The Company does not transfer out of Level 3 and into Level 2 until observable inputs become available and reliable. At April 30, 2018, we transferred $2.6 million related to the Company’s Series C convertible preferred stock warrant out of our Level 3 liabilities and into our Level 2 liabilities. The Series C convertible preferred stock warrant liability was estimated using assumptions related to the remaining contractual term of the warrant, the risk-free interest rate, the volatility of comparable public companies over the remaining term, and the fair value of underlying shares. The significant unobservable input used in the fair value measurement of the Series C convertible preferred stock warrant liability as of January 31, 2018 was the fair value of the underlying stock at the valuation date. On April 27, 2018, the right to convert the preferred stock warrant was contingently exercised by the holder and settlement occurred with the closing of the IPO on May 1, 2018. As of April 30, 2018, the underlying stock price and term were observable and the instrument was therefore transferred to a Level 2 classification category prior to being extinguished on May 1, 2018. There were no other transfers in or out of our Level 1, 2, or 3 assets or liabilities during the years ended January 31, 2019 and 2018. Changes in fair value of our level 3 financial liabilities were as follows (in thousands): Balance as of January 31, 2017 $ 477 Increase in fair value of convertible preferred stock warrant liability 795 Balance as of January 31, 2018 1,272 Increase in fair value of convertible preferred stock warrant liability 1,326 Transfer out of Level 3 (2,598 ) Balance as of January 31, 2019 $ — |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Jan. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net As of the dates specified below, property and equipment (in thousands) consisted of the following: January 31, 2019 2018 Computer equipment $ 17,536 $ 12,539 Computer software, purchased and developed 6,958 3,415 Furniture and fixtures 5,410 3,797 Leasehold improvements 4,158 2,659 Total property and equipment 34,062 22,410 Less: accumulated depreciation (11,522 ) (5,173 ) Total property and equipment, net $ 22,540 $ 17,237 Depreciation expense was $7.2 million , $4.0 million , and $1.0 million for the years ended January 31, 2019 , 2018 , and 2017 , respectively. Property and equipment includes $11.8 million and $9.2 million of data center equipment purchased under capital leases at January 31, 2019 and 2018 , respectively. Accumulated depreciation related to these leased assets was $6.1 million and $2.4 million at January 31, 2019 and 2018 , respectively. Depreciation expense on capital leases, which is included in total depreciation expense described immediately above, was $3.6 million , $2.2 million , and $0.2 million for the years ended January 31, 2019 , 2018 , and 2017 , respectively. These leased assets are included in the computer equipment category in the table above. |
Goodwill and Net Intangible Ass
Goodwill and Net Intangible Assets | 12 Months Ended |
Jan. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Net Intangible Assets | Goodwill and Net Intangible Assets On January 11, 2019, Smartsheet Inc. purchased 100% of the issued and outstanding capital stock of TernPro, Inc. (“TernPro”) in an all-cash transaction for a total purchase price of $6.0 million . As a result of this acquisition, the Company recorded goodwill of $5.2 million ; identifiable intangible assets of $0.8 million , of which $0.5 million was related to acquired software technology, and $0.3 million was related to customer relationships; and other net assets of less than $0.1 million . In addition, the Company recorded a long-term liability of $1.0 million related to a holdback payable on the 18-month anniversary of the closing date. The goodwill recognized in connection with the acquisition is primarily attributable to anticipated benefits from a future solution incorporating the acquired technology, and is not expected to be deductible for tax purposes. The intangible assets are finite-lived and will be amortized on a straight-line basis over their estimated useful lives, which were determined to be three years . TernPro has been included in the Company’s consolidated results of operations since the acquisition date. TernPro’s results were immaterial to the Company’s consolidated results for the year ended January 31, 2019. On December 28, 2017, Smartsheet Inc. purchased 100% of the issued and outstanding capital stock of Converse.AI, Inc. in an all-cash transaction. As a result of this acquisition, the Company recorded goodwill of $0.3 million (inclusive of net measurement period adjustments of $0.1 million ) and identifiable intangible assets of $1.4 million. The following table presents changes in the carrying amount of goodwill (in thousands): Goodwill balance as of January 31, 2017 $ — Addition - acquisition of Converse.AI 445 Goodwill balance as of January 31, 2018 445 Measurement period adjustments related to Converse.AI acquisition (116 ) Addition - acquisition of TernPro 5,167 Goodwill balance as of January 31, 2019 $ 5,496 No goodwill impairments were recorded during the years ended January 31, 2019, 2018, or 2017. The following table presents the components of net intangible assets (in thousands) as of: January 31, 2019 2018 Acquired software technology $ 1,866 $ 1,366 Acquired customer relationships 360 70 Patents 170 170 Domain name 13 13 Total intangible assets 2,409 1,619 Less: accumulated amortization (582 ) (72 ) Total intangible assets, net $ 1,827 $ 1,547 Amortization expense was $510 thousand , $57 thousand , and $11 thousand for the years ended January 31, 2019 , 2018 , and 2017 , respectively. As of January 31, 2019, estimated remaining amortization expense for the finite-lived intangible assets by fiscal year is as follows (in thousands): 2020 $ 770 2021 722 2022 279 2023 9 2024 8 Thereafter 26 Total $ 1,814 |
Convertible Preferred Stock
Convertible Preferred Stock | 12 Months Ended |
Jan. 31, 2019 | |
Equity [Abstract] | |
Convertible Preferred Stock | Convertible Preferred Stock As of January 31, 2018 , convertible preferred stock was as follows: Series Shares Authorized Shares Issued and Outstanding Aggregate Liquidation Preference (in thousands) Carrying Value (in thousands) Liquidation Preference Prices per Share Conversion Price per Share Annual Dividend per Share (if declared) Liquidation Participation Cap per Share A 6,075,000 6,075,000 $ 486 $ 480 $ 0.08 $ 0.08 $ 0.0064 $ 0.16 A-1 500,000 500,000 80 80 0.16 0.16 0.0128 0.32 A-2 2,750,000 2,750,000 550 550 0.20 0.195434 0.016 0.40 A-3 2,000,000 2,000,000 500 500 0.25 0.23685 0.02 0.50 A-4 9,859,270 9,859,270 2,751 2,751 0.279 0.260872 0.0224 0.558 Total Series A 21,184,270 21,184,270 $ 4,367 $ 4,361 B 7,208,430 7,208,430 $ 1,250 $ 1,218 0.173408 0.173408 0.0138 0.346816 C 5,284,990 5,147,720 $ 1,500 $ 1,476 0.29139 0.29139 0.0234 0.58278 C-1 1,531,580 1,531,580 1,000 977 0.65292 0.65292 0.0522 1.30584 Total Series C 6,816,570 6,679,300 $ 2,500 $ 2,453 D 14,780,400 14,780,400 $ 17,500 $ 17,342 1.184 1.184 0.0948 N/A E 11,432,303 11,432,303 $ 35,000 $ 34,886 3.0615 3.0615 0.2449 N/A F 6,334,674 6,334,674 $ 52,600 $ 52,427 $ 8.3035 $ 8.3035 $ 0.66428 N/A Total all series 67,756,647 67,619,377 $ 113,217 $ 112,687 Immediately prior to the closing of the IPO on May 1, 2018, all shares of our outstanding convertible preferred stock automatically converted into an aggregate of 68.5 million shares of Class B common stock. There was no convertible preferred stock outstanding at January 31, 2019 . |
Convertible Preferred Stock War
Convertible Preferred Stock Warrant | 12 Months Ended |
Jan. 31, 2019 | |
Equity [Abstract] | |
Convertible Preferred Stock Warrant | Convertible Preferred Stock Warrant In 2011, the Company issued a warrant to purchase 137,270 shares of Series C convertible preferred stock in c onnection with a loan and security agreeme nt with Silicon Valley Bank (“SVB”). The warrant had a 10 -year term and an exercise price of $0.29139 per share. The fair value was determined using the Black-Scholes model and was $1.3 million as of January 31, 2018 . This warrant was subject to remeasurement at each reporting period resulting in fair value of $2.6 million as of April 30, 2018 and the corresponding charge to interest income (expense) and other, net of $1.3 million for the three months ended April 30, 2018 . On April 27, 2018, SVB contingently exercised its right to convert the preferred stock warrant in a “net exercise,” under which the number of issuable shares was reduced by the number of shares with an aggregate fair market value equal to the exercise price of the warrant, resulting in 2,667 shares surrendered and 134,603 shares offered in the IPO. The exercise and settlement of the underlying shares were conditional and were not executed until the closing of the IPO on May 1, 2018. There were no convertible preferred stock warrants outstanding at January 31, 2019 . |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Jan. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation The Company has issued incentive and non-qualifying stock options to employees and non-employee directors under the 2005 Stock Option/Restricted Stock Plan (“2005 Plan”), the 2015 Equity Incentive Plan (“2015 Plan”), and the 2018 Equity Incentive Plan (“2018 Plan”). The Company has also issued RSUs to employees pursuant to the 2015 Plan and the 2018 Plan. As of January 31, 2019 and 2018 , an aggregate of 0 and 296,178 , respectively, shares of common stock were available for issuance under the 2015 Plan. As of January 31, 2019 and 2018 , an aggregate of 8,458,343 and 0 , respectively, shares of common stock were available for issuance under the 2018 Plan. Stock options are granted with exercise prices at the fair value of the underlying common stock on the grant date, in general vest based on continuous employment over four years, and expire 10 years from the date of grant. RSUs are measured based on the grant date fair value of the awards, in general vest based on continuous employment over four years, and expire 10 years from the date of grant. Stock options The following table includes a summary of the option activity during the year ended January 31, 2019 : Options Outstanding Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding at January 31, 2018 13,355,439 $ 2.91 7.90 88,468 Granted 4,216,470 10.72 Exercised (3,993,836 ) 1.54 Forfeited or canceled (1,126,334 ) 5.90 Outstanding at January 31, 2019 12,451,739 5.72 8.04 319,519 Exercisable at January 31, 2019 4,826,895 3.02 7.12 136,883 Vested and expected to vest at January 31, 2019 11,424,048 5.52 7.98 295,432 The weighted-average grant date fair value per share of stock options granted during the years ended January 31, 2019, 2018, and 2017 was $4.66 , $2.36 , and $1.28 , respectively. The intrinsic value of options exercised was $66.7 million , $17.8 million , and $3.1 million during the years ended January 31, 2019, 2018, and 2017, respectively. Restricted stock units The following table includes a summary of the RSU activity during the year ended January 31, 2019 : Number of Shares Underlying Outstanding RSUs Weighted-Average Grant-Date Fair Value per RSU Outstanding at January 31, 2018 130,000 $ 9.45 Granted 774,191 26.12 Vested (32,500 ) 9.45 Forfeited or canceled (26,492 ) 26.94 Outstanding at January 31, 2019 845,199 24.17 An RSU award entitles the holder to receive shares of the Company’s common stock as the award vests, which is based on continued service. Non-vested RSUs do not have non-forfeitable rights to dividends or dividend equivalents. The weighted-average grant date fair value of RSUs granted during the years ended January 31, 2019 and 2018 was $26.12 and $9.45 , respectively. 2018 Employee Stock Purchase Plan In April 2018, we adopted our 2018 ESPP. The ESPP became effective on April 26, 2018, with the effective date of our IPO. Under our ESPP, eligible employees are able to acquire shares of our common stock by accumulating funds through payroll deductions of up to 15% of their compensation, subject to plan limitations. Purchases are accomplished through participation in discrete offering periods. Each offering period is six months (commencing each March 25 and September 25) and consists of one six -month purchase period, unless otherwise determined by our board of directors or our compensation committee. The purchase price for shares of our common stock purchased under our ESPP is 85% of the lesser of the fair market value of our common stock on (i) the first trading day of the applicable offering period or (ii) the last trading day of the purchase period in the applicable offering period. The following table includes a summary of shares available for issuance under our 2018 ESPP during the year ended January 31, 2019: Shares Available for Issuance 2018 ESPP Balance at January 31, 2018 — Authorized 2,040,000 Granted (320,218 ) Forfeited — Balance at January 31, 2019 1,719,782 The aggregate number of shares reserved for issuance under our ESPP will increase automatically on February 1 of each of the first 10 calendar years after the first offering date under the ESPP by the number of shares equal to 1% of the total outstanding shares of our Class A common stock and Class B common stock as of the immediately preceding January 31 (rounded to the nearest whole share) or such lesser number of shares as may be determined by our board of directors in any particular year. The aggregate number of shares issued over the term of our ESPP, subject to stock-splits, recapitalizations or similar events, may not exceed 20,400,000 shares of our Class A common stock. As of January 31, 2019, $3.4 million has been withheld on behalf of employees for a future purchase under the ESPP and is recorded in accrued compensation and related benefits. Valuation assumptions The fair value of employee stock options and ESPP purchase rights was estimated using a Black-Scholes option pricing model with the following assumptions: Year Ended January 31, 2019 2018 2017 Employee Stock Options Risk-free interest rate 2.7%-2.9% 1.8%-2.6% 1.4%-2.3% Expected volatility 40.2%-40.8% 41.7%-46.0% 49.0 % Expected term (in years) 6.25 6.25 6.25 Expected dividend yield — % — % — % Employee Stock Purchase Plan Risk-free interest rate 2.0%-2.4% N/A N/A Expected volatility 38.3%-42.2% N/A N/A Expected term (in years) 0.33-0.49 N/A N/A Expected dividend yield — % N/A N/A The risk-free interest rate used in the Black-Scholes option pricing model is based on the U.S. Treasury yield that corresponds with the expected term at the time of grant. The expected term of an option is determined using the simplified method, which is calculated as the average of the contractual life and the vesting period. The expected term for the ESPP purchase rights is estimated using the offering period, which is typically six months . We estimate volatility for options and ESPP purchase rights using volatilities of a group of public companies in a similar industry, stage of life cycle, and size. The Company does not currently issue dividends and does not expect to for the foreseeable future. Given the absence of an active market for the Company’s common stock prior to the IPO, the board of directors was required to estimate the fair value of the Company’s common stock at the time of each option grant based on several factors, including consideration of input from management and contemporaneous third-party valuations. These valuations included consideration of enterprise value and assessment of other common stock and convertible preferred stock transactions occurring during the period. Share-based compensation expense Share-based compensation expense included in the consolidated statements of operations was as follows (in thousands): Year Ended January 31, 2019 2018 2017 Cost of subscription revenue $ 346 $ 96 $ 35 Cost of professional services revenue 466 67 26 Research and development 5,873 6,029 452 Sales and marketing 5,163 1,707 428 General and administrative 4,055 10,565 193 Total share-based compensation $ 15,903 $ 18,464 $ 1,134 In the year ended January 31, 2018 , subsequent to the sale of the Company’s Series F convertible preferred stock, the Company facilitated a tender offer (the “2017 Tender Offer”) in which certain of the Company’s current and former employees and directors sold shares of common and convertible preferred stock to other existing shareholders. The sale of shares by the employees, directors, and other shareholders was facilitated by the Company. A total of 6,477,843 shares of common and convertible preferred stock were tendered for a total purchase price of $55.0 million . Our quarterly trends in total operating expenses, operating loss, and net loss, were significantly impacted by this transaction, which took place and was completed during the three months ended July 31, 2017. The premium over the fair value of the shares of common and convertible preferred stock that was paid by existing investors to current employees and directors, totaling $15.5 million , was recorded as share-based compensation expense for the year ended January 31, 2018 . The excess over the fair value of the sale price of the shares of common and convertible preferred stock sold by non-employees, totaling $4.6 million , was recorded as a deemed dividend within additional paid-in capital in the year ended January 31, 2018 . Share-based compensation expense related to the 2017 Tender Offer, which is included in the table above, was as follows (in thousands): Year Ended January 31, 2019 2018 2017 Cost of subscription revenue $ — $ 53 $ — Cost of professional services revenue — 9 — Research and development — 5,124 — Sales and marketing — 583 — General and administrative — 9,701 — Total share-based compensation expense $ — $ 15,470 $ — As of January 31, 2019 , there was a total of $39.6 million of unrecognized share-based compensation expense, which is expected to be recognized over a weighted-average period of 3.1 years . |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company is liable for income taxes in the United States and the United Kingdom. U.S. and international components of loss before provision for income taxes were as follows (in thousands): Year Ended January 31, 2019 2018 2017 United States $ (53,939 ) $ (49,303 ) $ (15,184 ) Foreign 347 (110 ) — Loss before income taxes $ (53,592 ) $ (49,413 ) $ (15,184 ) The expense (benefit) for income taxes consisted of (in thousands): Year Ended January 31, 2019 2018 2017 Current: Federal $ — $ — $ — State 34 40 — Foreign 69 — — $ 103 $ 40 $ — Deferred and other: Federal $ 203 $ (302 ) $ — State — (45 ) — Foreign (13 ) — — $ 190 $ (347 ) $ — Total tax expense (benefit) $ 293 $ (307 ) $ — Income tax expense for the year ended January 31, 2019 was recognized primarily due to changes in purchase accounting related to the acquisition of Converse.AI that reduced the overall acquired deferred tax liability. As a result, the increase in the valuation allowance was recognized in income tax expense. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the “Tax Cuts and Jobs Act” (“TCJA”). The TCJA made broad and complex changes to the Internal Revenue Code, including but not limited to, a reduction in the U.S. corporate income tax rate to 21%, requiring a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries, a general elimination of U.S. federal income taxes on dividends from foreign subsidiaries, and a new provision designed to tax global intangible low-taxed income (“GILTI”). The reduction in the corporate tax rate reduced the Company’s effective tax rate in future periods. Since the Company has a January 31 fiscal year end, the U.S. entity had a blended tax rate of 32.9% for the fiscal year ended January 31, 2018. As of January 31, 2018, the Company also remeasured its U.S. deferred tax assets and liabilities based upon the rates at which they were expected to reverse in the future. The result of the remeasurement was an $11.1 million reduction to the Company’s U.S. federal net deferred tax assets. A corresponding change was recorded to the valuation allowance. The TCJA subjects a U.S. shareholder to tax on GILTI earned by certain foreign subsidiaries. An entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as a GILTI in future years or to provide for the tax expense related to GILTI in the year the tax is incurred as period expense. The Company has elected to account for GILTI in the year the tax is incurred as a period cost. The reconciliation of federal statutory income tax to the Company’s provision for income taxes is as follows (in thousands): Year Ended January 31, 2019 2018 2017 Expected provision at statutory federal rate $ (11,254 ) $ (16,267 ) $ (5,163 ) Tax credits (2,408 ) (1,327 ) (896 ) Change in valuation allowance 17,487 1,528 5,694 Share-based compensation (4,631 ) 4,430 273 Impact of tax reform — 11,125 — Other 1,099 204 92 Total income tax provision (benefit) $ 293 $ (307 ) $ — U.S. federal tax net operating loss carryforwards were approximately $82.3 million and $43.3 million at January 31, 2019 and 2018, respectively, which will expire on various dates, starting in 2025. As of January 31, 2019 and 2018, the Company’s tax credit carryforwards for income tax purposes were approximately $6.3 and $3.9 million , respectively, net of uncertain tax positions for research and development credits. If not used, a portion of the tax credit carryforwards will begin to expire in 2031. Deferred income taxes reflect the net tax effects of loss and credit carryforwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effects of temporary differences and related deferred tax assets and liabilities as of January 31, 2019 and 2018 were as follows (in thousands): January 31, 2019 2018 Deferred tax assets: Deferred revenue $ 23,146 $ 13,848 Net operating loss carryforwards 18,972 9,994 Tax credits 6,340 3,873 Accrued compensation 1,963 39 Other 2,725 825 Total deferred tax assets 53,146 28,579 Valuation allowance (45,761 ) (24,406 ) Total deferred tax assets, net 7,385 4,173 Deferred tax liabilities: Capitalized commissions (6,955 ) (3,697 ) Fixed assets — (149 ) Intangibles (398 ) (327 ) Total deferred tax liabilities (7,353 ) (4,173 ) Net deferred tax assets $ 32 $ — Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three-year period ended January 31, 2019. Such objective evidence limits the ability to consider other subjective evidence, such as the Company’s projections for future growth. On the basis of this evaluation, the Company has established a full valuation allowance equal to its U.S. net deferred tax assets due to the uncertainty of future realization of the net deferred tax assets. The valuation allowance increased by $21.4 million during the period ended January 31, 2019. The increase in the valuation allowance each period was primarily related to U.S. federal and state losses incurred during the period. The calculation of the Company’s tax obligations involves dealing with uncertainties in the application of complex tax laws and regulations. ASC 740, Income Taxes , provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, on the basis of the technical merits. The Company has assessed its income tax positions and recorded tax benefits for all years subject to examination, based upon its evaluation of the facts, circumstances, and information available at each period end. For those tax positions where the Company has determined there is a greater than 50% likelihood that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is determined there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit has been recognized. The following is a tabular reconciliation of the total amounts of unrecognized tax benefits: Year Ended January 31, 2019 2018 2017 Balance, beginning of the year $ 683 $ — $ — Increases to tax positions taken during the current year 808 360 — Increases to tax positions taken in prior years — 323 — Decreases to tax positions taken in prior years (75 ) — — Balance, end of year $ 1,416 $ 683 $ — Although the Company believes that it has adequately reserved for its uncertain tax positions, it can provide no assurance that the final tax outcome of these matters will not be materially different. The Company makes adjustments to its reserves when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made. No liability was recorded for uncertain tax positions, or related interest or penalties, as of January 31, 2019 and 2018. As of January 31, 2019 and 2018, the Company had $1.4 million and $0.7 million of unrecognized tax benefits, respectively, of which the total amount that would impact the effective tax rate, if recognized, is $1.4 million and $0.7 million , respectively. Any impact on the effective tax rate for unrecognized tax benefits would be offset by the impact of the Company's full valuation allowance on its U.S. federal and state deferred tax assets. In the U.S., the Company’s tax years from 2005 to present remain effectively open to examination by the Internal Revenue Service, as well as various state and foreign jurisdictions. Interest or penalties, if incurred, are recognized as a component of income tax expense. Penalties and interest recognized were not material for the years ended January 31, 2019, 2018, and 2017. As a result of certain realization requirements of ASC 718, Compensation - Stock Compensation , the table of deferred tax assets and liabilities does not include certain deferred tax assets as of January 31, 2018 that arose directly from (or the use of which was postponed by) tax deductions related to equity compensation that are greater than the compensation recognized for financial reporting. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases The Company has operating lease agreements for office spaces on a long-term basis in Bellevue, Washington, Boston, Massachusetts, and Edinburgh, Scotland, and in several other locations on a short-term basis. The non-cancelable periods of our lease agreements expire at various times from 2019 through 2026. Rent expense and related operating expenses for leased areas totaled $8.9 million , $5.0 million , and $2.5 million for the years ended January 31, 2019 , 2018 , and 2017 , respectively. The Company has capital lease agreements for data center equipment, with terms ranging from 36 months to 42 months and effective interest rates between 4.8% and 5.5% . Interest expense is recorded in interest income (expense) and other, net in the accompanying statements of operations. Interest expense totaled $0.4 million , $0.3 million , and $0.2 million for the years ended January 31, 2019, 2018, and 2017, respectively. During the year ended January 31, 2018 , the Company entered into two capital lease agreements for data center equipment, which totaled $3.1 million, including taxes. The effective interest rates on the leases range from 5.0% to 5.1% , each paid over 36 months. During the year ended January 31, 2019 , the Company entered into four capital lease agreements for data center equipment, which totaled $2.6 million , including taxes. The effective interest rates on the leases range from 4.8% to 5.5% , each paid over 36 months . As of January 31, 2019 , future minimum annual lease payments (in thousands) related to the lease agreements mentioned above were as follows: Operating Leases Capital Leases Total Fiscal 2020 10,255 3,970 14,225 Fiscal 2021 11,121 1,776 12,897 Fiscal 2022 11,293 463 11,756 Fiscal 2023 11,536 11,536 Fiscal 2024 11,812 11,812 Thereafter 23,064 23,064 Total minimum lease payments $ 79,081 $ 6,209 $ 85,290 Less: amount representing interest 277 Present value of capital lease obligations $ 5,932 The Company entered into a three-year commitment with a cloud-based hosting service provider for $15.0 million in the period ended January 31, 2019, of which $4.0 million is to be paid in fiscal 2020, $5.0 million is to be paid in fiscal 2021, and an amount equal to the total commitment less the upfront payments and monthly charges incurred through fiscal 2021 is to be paid in fiscal 2022. As of January 31, 2019, the total commitment amount remained unpaid. Legal matters From time to time in the normal course of business, the Company may be subject to various legal matters such as threatened or pending claims or proceedings. We are not currently a party to any material legal proceedings or claims, nor are we aware of any pending or threatened litigation or claims that could have a material adverse effect on our business, operating results, cash flows, or financial condition should such litigation or claim be resolved unfavorably. |
401(k) and Pension Plans
401(k) and Pension Plans | 12 Months Ended |
Jan. 31, 2019 | |
Retirement Benefits [Abstract] | |
401(k) and Pension Plans | 401(k) and Pension Plans In March 2008, the Company initiated a 401(k) plan for the benefit of its employees. No employer contributions were made to the 401(k) plan by the Company during the fiscal years ended January 31, 2019, 2018, or 2017 . In January 2018, the Company began contributing to a pension plan for the benefit of its employees based in the United Kingdom. Contributions to the plan by the Company were insignificant during the years ended January 31, 2019 and 2018. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jan. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Certain members of the board of directors serve as directors of, or are executive officers of, and in some cases are investors in, companies that are customers or vendors of the Company. Certain of the Company’s executive officers also serve as directors of, or serve in an advisory capacity to, companies that are customers or vendors of the Company. Related-party transactions were not material as of and for the years ended January 31, 2019 , 2018 , and 2017 . |
Geographic Information
Geographic Information | 12 Months Ended |
Jan. 31, 2019 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information Revenue by geographic location is determined by the location of the Company’s customers. The following table sets forth revenue (in thousands) by geographic area: Year Ended January 31, 2019 2018 2017 United States $ 135,761 $ 81,480 $ 47,110 EMEA 21,087 14,654 9,874 Asia Pacific 11,863 9,181 5,940 Americas other than the United States 9,011 5,938 4,040 Total $ 177,722 $ 111,253 $ 66,964 No individual country other than the United States contributed more than 10% of total revenue during any of the periods presented. Property and equipment by geographic location is based on the location of the legal entity that owns the asset. As of January 31, 2019 and January 31, 2018 , there was no significant property and equipment owned by the Company outside of the United States. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2019 | |
Accounting Policies [Abstract] | |
Segment information | Segment information The Company operates as one operating segment. The Company’s chief operating decision maker is its Chief Executive Officer, who reviews consolidated financial information for purposes of making operating decisions, assessing financial performance, and allocating resources. |
Revenue recognition | Revenue recognition The Company derives its revenue primarily from subscription services and professional services. Revenue is recognized when control of these services is transferred to the Company ’ s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services, net of any sales taxes. The Company determines revenue recognition through the following steps: • identification of the contract, or contracts, with a customer; • identification of the performance obligations in the contract; • determination of the transaction price; • allocation of the transaction price to the performance obligations in the contract; and • recognition of revenue when, or as, the Company satisfies a performance obligation. Subscription revenue Subscription revenue primarily consists of fees from customers for access to the Company’s cloud-based platform . S ubscription revenue is recognized on a ratable basis over the subscription contract term, beginning on the date the access to the Company ’ s platform is provided, as no implementation work is required, if consideration the Company is entitled to receive is probable of collection. S ubscription contracts generally have terms of one year or one month, are billed in advance, and are non-cancelable. The subscription arrangements do not allow the customer the contractual right to take possession of the platform; as such, the arrangements are considered to be service contracts. Certain of the Company ’ s subscription contracts contain performance guarantees related to service continuity. To date, refunds related to such guarantees have been immaterial in all periods presented. Professional services revenue Professional services revenue primarily includes revenue recognized from fees for consulting and training services. The Company’s consulting services consist of platform configuration and use case optimization, and are primarily invoiced on a time and materials basis, monthly in arrears. Services revenue is recognized over time, as service hours are delivered. Smaller consulting engagements are, on occasion, provided for a fixed fee. These smaller consulting arrangements are typically of short duration (less than three months). In these cases, revenue is recognized over time, based on the proportion of hours of work performed, compared to the total hours expected to complete the engagement. Configuration and use case optimization services do not result in significant customization or modification of the software platform or user interface. Training services are billed in advance, on a fixed-fee basis, and revenue is recognized after the training program is delivered, or after customer’s right to receive training services expires. Associated out-of-pocket travel expenses related to the delivery of professional services are typically reimbursed by the customer. Out-of-pocket expense reimbursements are recognized as revenue at the point in time, or as the distinct performance obligation to which they relate is delivered. Out-of-pocket expenses are recognized as cost of professional services as incurred. On occasion, the Company sells its subscriptions to third-party resellers. The price at which the Company sells to the reseller is typically discounted, as compared to the price at which the Company would sell to an end customer, in order to enable the reseller to realize a margin on the eventual sale to the end customer. As the Company retains a fixed amount of the contract from the reseller, and does not have visibility into the pricing provided by the reseller to the end customer, the revenue is recorded net of any reseller margin. Contracts with multiple performance obligations Some of the Company’s contracts with customers contain multiple performance obligations. The Company accounts for individual performance obligations separately, as they have been determined to be distinct, i.e., the services are separately identifiable from other items in the arrangement and the customer can benefit from them on its own or with other resources that are readily available to the customer. The transaction price is allocated to the distinct performance obligations on a relative stand-alone selling price basis. Stand-alone selling prices are determined based on the prices at which the Company separately sells subscription, consulting, and training services, and based on t he Company’s overall pricing objectives, taking into consideration market conditions, value of t he Company’s contracts, the types of offerings sold, customer demographics, and other factors. Accounts receivable Accounts receivable are primarily comprised of trade receivables that are recorded at the invoice amount, net of an allowance for doubtful accounts. Subscription fees billed in advance of the related subscription term represent contract liabilities and are presented as accounts receivable and deferred revenues upon establishment of the unconditional right to invoice, typically upon signing of the non-cancelable service agreement. Our typical payment terms provide for customer payment within 30 days of the date of the contract. The allowance for doubtful accounts is based on the Company’s assessment of the collectability of accounts by considering the composition of the accounts receivable aging and historical trends on collectability. Amounts deemed uncollectible are recorded to the allowance for doubtful accounts in the consolidated balance sheets with an offsetting decrease in related deferred revenue and a charge to general and administrative expense in the statements of operations . During the year ended January 31, 2019, activity related to the Company’s provision for doubtful accounts was as follows (in thousands): Balance at January 31, 2018 $ 457 Additions 1,626 Write-offs (849 ) Balance at January 31, 2019 $ 1,234 Activity related to the Company’s provision for doubtful accounts during the years ended January 31, 2018 and 2017 was as follows (in thousands): Balance at January 31, 2016 $ 24 Additions, net of write-offs 80 Balance at January 31, 2017 104 Additions, net of write-offs 353 Balance at January 31, 2018 $ 457 Deferred revenue Deferred revenue is recorded for subscription services contracts upon establishment of unconditional right to payment under a non-cancelable contract before transferring the related services to the customer. Deferred revenue for such services is amortized into revenue over time, as those subscription services are delivered. Similarly, the Company records deferred revenue for fixed-fee professional services upon establishment of an unconditional right to payment under a non-cancelable contract. Deferred revenue for training services is recognized as revenue upon delivery of training services or upon expiration of customer’s right to receive such services. Deferred revenue for consulting services is recognized as hours of service are delivered to the customer. Deferred commissions The majority of sales commissions earned by the Company ’s sales force are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions are paid on initial contracts and on any upsell contracts with a customer. No sales commissions are paid on customer renewals. Sales commissions are deferred and then amortized on a straight-line basis over a period of benefit that the Company has determined to be three years. The Company determined the period of benefit by taking into consideration its customer contracts, expected customer life, the expected life of its technology, and other factors. Amortization expense is included in sales and marketing expenses in the accompanying statements of operations. Overhead allocations The Company allocates shared costs, such as facilities (including rent, utilities, and depreciation on equipment shared by all departments), and information technology costs to all departments based on headcount. As such, allocated shared costs are reflected in each cost of revenue and operating expense category. |
Cash and cash equivalents | Cash and cash equivalents The Company considers all highly liquid investments with an original maturity of three months or less from date of purchase to be cash equivalents. C ash and cash equivalents are recorded at cost, which approximates fair value. Interest income earned on cash and cash equivalents is recorded in interest income (expense) and other, net in the accompanying statements of operations. |
Restricted cash | Restricted cash Restricted cash as of January 31, 2019 consisted of $1.8 million related to collateral for an irrevocable letter of credit (entered into during the year ended January 31, 2019 ) for additional office space in Bellevue, and $0.8 million primarily related to security deposits for the Company’s Bellevue, Boston, London, and Edinburgh leases. Restricted cash as of January 31, 2018 consisted of $2.4 million related to collateral for irrevocable letters of credit and $0.5 million related to security deposits. The letters of credit that were outstanding as of January 31, 2018 were still in effect as of January 31, 2019 ; however, the requirement to maintain $2.4 million in cash collateral for those letters of credit was removed during the year ended January 31, 2019 , and the restricted cash balance was reduced by this amount. Restricted cash as of January 31, 2017 consisted of $1.6 million related to letters of credit for the Company’s Bellevue and Boston leases and $0.3 million related to a security deposit for the Company’s Boston lease. Cash as reported on the consolidated statements of cash flows includes the aggregate amounts of cash and cash equivalents and restricted cash as shown on the consolidated balance sheets. |
Internal-use software development costs | Internal-use software development costs The Company capitalizes certain qualifying costs incurred during the application development stage in connection with the development of internal-use software. Costs related to preliminary project activities and post-implementation activities are expensed in research and development (“R&D”) as incurred. R&D expenses consist primarily of employee-related costs, hardware- and software-related costs, costs of outside services used to supplement our internal staff, and overhead allocations. Internal-use software costs of $3.5 million were capitalized in the year ended January 31, 2019 , of which $1.5 million related to costs incurred during the application development stage of software development for the Company’s platform to which subscriptions are sold. Internal-use software costs of $3.4 million were capitalized in the year ended January 31, 2018 , none of which related to costs incurred during the application development stage of software development for the Company’s platform to which subscriptions are sold. Capitalized software development costs are included within property and equipment, net on the balance sheets, and are amortized over the estimated useful life of the software, which is typically three years . The related amortization expense is recognized in the consolidated statements of comprehensive loss within the function that receives the benefit of the developed software. Amortization expense of capitalized internal-use software costs totaled $1.0 million and $0.2 million for the years ended January 31, 2019 and 2018. There was no amortization expense of capitalized internal-use software costs for the year ended January 31, 2017. The Company evaluates the useful lives of these assets and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. |
Impairment of long-lived assets | Impairment of long-lived assets Long-lived assets, such as property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Recoverability of an asset group is measured by comparing the carrying amount to the estimated undiscounted future cash flows expected to be generated. If the carrying amount exceeds the undiscounted cash flows, the assets are determined to be impaired and an impairment charge is recognized as the amount by which the carrying amount exceeds its fair value. No impairments of long-lived assets were recorded during any of the periods presented. |
Business combinations | Business combinations When we acquire a business, the purchase price is allocated to the net tangible and identifiable intangible assets acquired based on their estimated fair values. Any residual purchase price is recorded as goodwill. The allocation of the purchase price requires management to make significant estimates in determining the fair values of assets acquired and liabilities assumed, especially with respect to intangible assets. These estimates can include, but are not limited to, the cash flows that an asset is expected to generate in the future, the appropriate weighted-average cost of capital, and the cost savings expected to be derived from acquiring an asset. These estimates are inherently uncertain and unpredictable. During the measurement period, which may be up to one year from the acquisition date, adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed may be recorded, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our consolidated statements of operations. |
Goodwill | Goodwill The Company evaluates goodwill for impairment at the reporting unit level on an annual basis (September 1), or whenever events or changes in circumstances indicate that impairment may exist. When evaluating goodwill for impairment, the Company may first perform a qualitative assessment to determine whether it is more likely than not that a reporting unit is impaired. If the Company does not perform a qualitative assessment, or if the Company determines that it is not more likely than not that the fair value of the reporting unit exceeds its carrying amount, the Company calculates the estimated fair value of the reporting unit. Fair value is the price a willing buyer would pay for the reporting unit and is typically calculated using a discounted cash flow model. If the carrying amount of the reporting unit exceeds the estimated fair value, an impairment charge is recorded to reduce the carrying value to the estimated fair value. |
Leases and deferred rent | Leases and deferred rent Leases are categorized at their inception as either operating or capital leases. Some lease agreements include incentives. Rent expense on t he Company’s operating leases for office space is recognized using the straight-line method, over the term of the agreement generally beginning once control of the space is achieved, without regard to payment terms that defer the commencement date of required rent payments. Additionally, incentives received are treated as a reduction of expense over the term of the agreement. The difference between the rent payments and the calculated rent expense using the straight-line methodology is recorded as a deferred rent liability within the other accrued liabilities and other long-term liabilities captions in the accompanying consolidated balance sheets, based on the terms of the lease. Deferred rent as of January 31, 2019 and 2018 was $2.0 million and $0.6 million , respectively. The Company begins to depreciate its capital lease assets, which mainly relate to leased data center equipment, once such equipment is received and ready for its intended use. |
Self-Funded Health Insurance | Self-funded health insurance In December 2017, the Company elected to partially self-fund its health insurance plan. To reduce its risk related to high-dollar claims, the Company maintains individual and aggregate stop-loss insurance. The Company estimates its exposure for claims incurred but not paid at the end of each reporting period and uses historical claims data to estimate its self-insurance liability. |
Advertising expenses | Advertising expenses Advertising and marketing costs are expensed as incurred, and are included in sales and marketing expense in the statements of operations. |
Convertible preferred stock warrant liability | Convertible preferred stock warrant liability The Company classified its warrant to purchase convertible preferred stock as a liability. The Company adjusted the carrying valu e of the warrant liability to fair value at the end of each reporting period utilizing the Black-Scholes option pricing model . The convertible preferred stock warrant liability was included on the Compan y’s consolidated balance sheets and its revaluation was recorded as an expense in interest income (expe nse) and other, net. Upon the closing of the IPO on May 1, 2018, the related warrant liability was reclassified to additional paid-in capital. |
Share-based compensation | Share-based compensation The Company measures and recognizes compensation expense for all share-based awards granted to employees and directors, based on the estimated fair value of the award on the date of grant. Expense is recognized on a straight-line basis over the vesting period of the award based on the estimated portion of the award that is expected to vest. The Company uses the Black-Scholes option pricing model to measure the fair value of stock option awards when they are granted. The Company makes several estimates in determining share-based compensation and these estimates generally require significant analysis and judgment to develop. |
Income taxes | Income taxes Income taxes are accounted for using the asset and liability method. Under this method, the Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled. The Company records a valuation allowance to reduce deferred tax assets to an amount for which realization is more likely than not. The Company evaluates and accounts for uncertain tax positions using a two-step approach. The first step is to evaluate if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained in an audit. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Company reflects interest and penalties related to income tax liabilities as a component of income tax expense. |
Concentrations of risk and significant customers | Concentrations of risk and significant customers Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash, cash equivalents, and accounts receivable. The Company maintains its cash accounts with financial institutions where deposits, at times, exceed the Federal Deposit Insurance Corporation (“FDIC”) limits. |
Net loss per share | Net loss per share Holders of t he Company’s convertible preferred stock participated in dividends with holders of t he Company’s common stock, but they were not contractually required to share in net losses. Accordingly, during periods of income, the Company was required to use the two-class method of calculating earnings per share. The two-class method requires that earnings per share be calculated separately for each class of security. As t he Company incurred losses during the periods presented, t he Company used the methods described below to calculate net loss per share. The Company calculates basic net loss per share by dividing net loss attributable to common shareholders by the weighted-average number of the Company’s common stock shares outstanding during the respective period. Net loss attributable to common shareholders is net loss minus convertible preferred stock dividends declared, of which there were none during the periods presented. The Company calculates diluted net loss per share using the treasury stock and if-converted methods, which consider the potential impacts of outstanding stock options, restricted stock units (“RSUs”), shares issuable pursuant to our Employee Stock Purchase Plan (“ESPP”), warrants, and convertible preferred stock. Under these methods, the numerator and denominator of the net loss per share calculation are adjusted for these securities if the impact of doing so increases net loss per share. During the periods presented, the impact is to decrease net loss per share and therefore the Company is precluded from adjusting its calculation for these securities. As a result, diluted net loss per share is calculated using the same formula as basic net loss per share. |
Recently adopted accounting pronouncements | Recently adopted accounting pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016‑09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, (“ASU 2016‑09”) , which simplifies the accounting and reporting of share-based payment transactions, including adjustments to how excess tax benefits and payments for tax withholdings should be classified, and provides the election to eliminate the estimate for forfeitures. The Company adopted this ASU effective February 1, 2018. The adoption resulted in the recognition of a U.S. deferred tax asset, which was fully offset by a corresponding increase to the valuation allowance on our U.S. federal and state deferred income tax assets, and therefore did not have a material impact on our consolidated financial statements. The Company did not elect to eliminate the estimate for forfeitures. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which aims to reduce the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 requires adoption on a retrospective basis unless it is impracticable to apply, in which case the Company would be required to apply the amendments prospectively as of the earliest date practicable. The Company adopted this ASU effective February 1, 2018. The adoption of this ASU did not have a material effect on the Company’s consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”). This guidance is intended to clarify how entities present restricted cash in the statement of cash flows. The guidance requires entities to show the changes in the total of cash, cash equivalents, and restricted cash in the statement of cash flows. When cash, cash equivalents, and restricted cash are presented in more than one line item on the balance sheet, the new guidance requires a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet. The reconciliation can be presented either on the face of the statement of cash flows or in the notes to the consolidated financial statements. ASU 2016-18 is effective for fiscal years beginning after December 15, 2018, but early adoption is permitted. The Company early adopted this ASU effective February 1, 2018, retrospectively applying the new guidance to the comparative period presented in our consolidated statements of cash flows. As a result of the adoption of this ASU, because movements to and from cash and restricted cash are no longer shown separately on the consolidated statements of cash flows, the Company’s cash used in investing activities decreased by $1.0 million for the year ended January 31, 2018 and the cash provided by investing activities increased by $0.6 million for the year ended January 31, 2017 . In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”) , which simplifies the measurement of goodwill impairment. Under this new guidance, an impairment charge, if triggered, is calculated as the difference between a reporting unit’s carrying value and fair value, but it is limited to the carrying value of goodwill. The guidance is effective prospectively for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019 and early adoption is permitted. The Company early adopted this guidance effective February 1, 2018 and applied the new guidance when evaluating goodwill for impairment during the year ended January 31, 2019. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting (“ASU 2017-09”) , which clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. The guidance is effective prospectively for interim and annual periods beginning after December 15, 2017 and early adoption is permitted. The Company adopted this guidance effective February 1, 2018. The adoption of this ASU did not have a material effect on the Company’s consolidated financial statements. Recent accounting pronouncements not yet adopted In February 2016, the FASB issued ASU 2016-02, Leases: Topic (842) (“ASU 2016-02”) and has modified the standard thereafter. This standard requires the recognition of a right-of-use asset and lease liability on the balance sheet for all leases with terms longer than 12 months. This standard also requires more detailed disclosures to enable users of financial statements to understand the amount, timing, and uncertainty of cash flows arising from leases. We will adopt the new lease accounting standard on February 1, 2019, using the modified retrospective transition method and recording a cumulative-effect balance sheet adjustment. The adoption of the new lease accounting standard will have a material impact on our balance sheet on the date of adoption, primarily due to our office space operating leases discussed in Note 14. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other-Internal-Use Software (“ASU 2018-15”) , which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This guidance is effective for interim and annual reporting periods beginning after December 15, 2019, and early adoption is permitted. The Company does not expect adoption of this ASU to have a material effect on the Company’s consolidated financial statements. |
Basis of presentation | Basis of presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in th e United States of America (“GAAP”) . The Company’s fiscal year ends on January 31. The consolidated financial statements include the results of Smartsheet Inc. and its wholly owned subsidiaries, which are located in the United States and the United Kingdom. All intercompany balances and transactions have been eliminated upon consolidation. |
Use of estimates | Use of estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. The Company bases its estimates on historical experience and on other assumptions that its management believes are reasonable under the circumstances. Actual results could differ from those estimates. The Company’s most significant estimates and judgments involve revenue recognition with respect to the allocation of transaction consideration for the Company’s offerings; determination of the amortization period for capitalized sales commission costs; valuation of the Company’s share-ba sed compensation, including the underlying deemed fair value of common stock (prior to the closing of the IPO); u seful lives of property and equipme nt, including useful lives of internal-use software development costs; capitalization of internal-use software development costs; self-insurance costs incurred; calculation of allowance for doubtful accounts; inputs in revaluation of convertible preferred stock warrant (prior to the closing of the IPO); valuation of assets and liabilities acquired as part of business combinations; and valuation of deferred income tax assets and uncertain tax positions, among others. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Allowance for Doubtful Accounts | During the year ended January 31, 2019, activity related to the Company’s provision for doubtful accounts was as follows (in thousands): Balance at January 31, 2018 $ 457 Additions 1,626 Write-offs (849 ) Balance at January 31, 2019 $ 1,234 Activity related to the Company’s provision for doubtful accounts during the years ended January 31, 2018 and 2017 was as follows (in thousands): Balance at January 31, 2016 $ 24 Additions, net of write-offs 80 Balance at January 31, 2017 104 Additions, net of write-offs 353 Balance at January 31, 2018 $ 457 |
Schedule of Cash and Cash Equivalents | Cash as reported on the consolidated statements of cash flows consists of the following (in thousands): January 31, 2019 2018 2017 Cash and cash equivalents $ 213,085 $ 58,158 $ 22,086 Restricted cash 2,620 2,901 1,927 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 215,705 $ 61,059 $ 24,013 |
Schedule of Property and Equipment, Useful Lives | Depreciation is computed using the straight-line method over the following estimated useful lives: Computer equipment 3 years Computer software 3 years Furniture and fixtures 5-7 years As of the dates specified below, property and equipment (in thousands) consisted of the following: January 31, 2019 2018 Computer equipment $ 17,536 $ 12,539 Computer software, purchased and developed 6,958 3,415 Furniture and fixtures 5,410 3,797 Leasehold improvements 4,158 2,659 Total property and equipment 34,062 22,410 Less: accumulated depreciation (11,522 ) (5,173 ) Total property and equipment, net $ 22,540 $ 17,237 |
Schedule of Restricted Cash and Cash Equivalents | Cash as reported on the consolidated statements of cash flows consists of the following (in thousands): January 31, 2019 2018 2017 Cash and cash equivalents $ 213,085 $ 58,158 $ 22,086 Restricted cash 2,620 2,901 1,927 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 215,705 $ 61,059 $ 24,013 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following tables present calculations for basic and diluted net loss per share (in thousands, except per share data): Year Ended January 31, 2019 2018 2017 Numerator: Net loss attributable to common shareholders $ (53,885 ) $ (53,664 ) $ (15,184 ) Denominator: Weighted-average common shares outstanding 83,141 18,273 15,241 Net loss per share, basic and diluted $ (0.65 ) $ (2.94 ) $ (1.00 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following outstanding shares of common stock equivalents (in thousands) as of the periods presented were excluded from the computation of diluted net loss per share attributable to common shareholders for the periods presented because the impact of including them would have been anti-dilutive: January 31, 2019 2018 2017 Convertible preferred shares (as converted) — 68,480 62,145 Convertible preferred stock warrant — 137 137 Shares subject to outstanding common stock awards 13,297 13,355 13,052 Shares issuable pursuant to the Employee Stock Purchase Plan 134 — — Total potentially dilutive shares 13,431 81,972 75,334 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present information about the Company’s financial assets and liabilities that are measured at fair value and indicates the fair value hierarchy of the valuation inputs used (in thousands) as of: January 31, 2019 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 203,746 $ 203,746 Restricted cash: Certificates of deposit 1,775 1,775 Total assets $ 203,746 $ 1,775 $ — $ 205,521 January 31, 2018 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 55,702 $ — $ — $ 55,702 Liabilities: Convertible preferred stock warrant liability $ — $ — $ 1,272 $ 1,272 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | Changes in fair value of our level 3 financial liabilities were as follows (in thousands): Balance as of January 31, 2017 $ 477 Increase in fair value of convertible preferred stock warrant liability 795 Balance as of January 31, 2018 1,272 Increase in fair value of convertible preferred stock warrant liability 1,326 Transfer out of Level 3 (2,598 ) Balance as of January 31, 2019 $ — |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Depreciation is computed using the straight-line method over the following estimated useful lives: Computer equipment 3 years Computer software 3 years Furniture and fixtures 5-7 years As of the dates specified below, property and equipment (in thousands) consisted of the following: January 31, 2019 2018 Computer equipment $ 17,536 $ 12,539 Computer software, purchased and developed 6,958 3,415 Furniture and fixtures 5,410 3,797 Leasehold improvements 4,158 2,659 Total property and equipment 34,062 22,410 Less: accumulated depreciation (11,522 ) (5,173 ) Total property and equipment, net $ 22,540 $ 17,237 |
Goodwill and Net Intangible A_2
Goodwill and Net Intangible Assets (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table presents changes in the carrying amount of goodwill (in thousands): Goodwill balance as of January 31, 2017 $ — Addition - acquisition of Converse.AI 445 Goodwill balance as of January 31, 2018 445 Measurement period adjustments related to Converse.AI acquisition (116 ) Addition - acquisition of TernPro 5,167 Goodwill balance as of January 31, 2019 $ 5,496 |
Schedule of Finite-Lived Intangible Assets | The following table presents the components of net intangible assets (in thousands) as of: January 31, 2019 2018 Acquired software technology $ 1,866 $ 1,366 Acquired customer relationships 360 70 Patents 170 170 Domain name 13 13 Total intangible assets 2,409 1,619 Less: accumulated amortization (582 ) (72 ) Total intangible assets, net $ 1,827 $ 1,547 |
Schedule of Estimated Remaining Amortization Expense for Intangible Assets | As of January 31, 2019, estimated remaining amortization expense for the finite-lived intangible assets by fiscal year is as follows (in thousands): 2020 $ 770 2021 722 2022 279 2023 9 2024 8 Thereafter 26 Total $ 1,814 |
Convertible Preferred Stock (Ta
Convertible Preferred Stock (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Equity [Abstract] | |
Schedule of Convertible Preferred Stock | As of January 31, 2018 , convertible preferred stock was as follows: Series Shares Authorized Shares Issued and Outstanding Aggregate Liquidation Preference (in thousands) Carrying Value (in thousands) Liquidation Preference Prices per Share Conversion Price per Share Annual Dividend per Share (if declared) Liquidation Participation Cap per Share A 6,075,000 6,075,000 $ 486 $ 480 $ 0.08 $ 0.08 $ 0.0064 $ 0.16 A-1 500,000 500,000 80 80 0.16 0.16 0.0128 0.32 A-2 2,750,000 2,750,000 550 550 0.20 0.195434 0.016 0.40 A-3 2,000,000 2,000,000 500 500 0.25 0.23685 0.02 0.50 A-4 9,859,270 9,859,270 2,751 2,751 0.279 0.260872 0.0224 0.558 Total Series A 21,184,270 21,184,270 $ 4,367 $ 4,361 B 7,208,430 7,208,430 $ 1,250 $ 1,218 0.173408 0.173408 0.0138 0.346816 C 5,284,990 5,147,720 $ 1,500 $ 1,476 0.29139 0.29139 0.0234 0.58278 C-1 1,531,580 1,531,580 1,000 977 0.65292 0.65292 0.0522 1.30584 Total Series C 6,816,570 6,679,300 $ 2,500 $ 2,453 D 14,780,400 14,780,400 $ 17,500 $ 17,342 1.184 1.184 0.0948 N/A E 11,432,303 11,432,303 $ 35,000 $ 34,886 3.0615 3.0615 0.2449 N/A F 6,334,674 6,334,674 $ 52,600 $ 52,427 $ 8.3035 $ 8.3035 $ 0.66428 N/A Total all series 67,756,647 67,619,377 $ 113,217 $ 112,687 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock Option Activity | The following table includes a summary of the option activity during the year ended January 31, 2019 : Options Outstanding Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding at January 31, 2018 13,355,439 $ 2.91 7.90 88,468 Granted 4,216,470 10.72 Exercised (3,993,836 ) 1.54 Forfeited or canceled (1,126,334 ) 5.90 Outstanding at January 31, 2019 12,451,739 5.72 8.04 319,519 Exercisable at January 31, 2019 4,826,895 3.02 7.12 136,883 Vested and expected to vest at January 31, 2019 11,424,048 5.52 7.98 295,432 |
Schedule of Restricted Stock Units Award Activity | The following table includes a summary of the RSU activity during the year ended January 31, 2019 : Number of Shares Underlying Outstanding RSUs Weighted-Average Grant-Date Fair Value per RSU Outstanding at January 31, 2018 130,000 $ 9.45 Granted 774,191 26.12 Vested (32,500 ) 9.45 Forfeited or canceled (26,492 ) 26.94 Outstanding at January 31, 2019 845,199 24.17 |
Schedule of Shares Available for Issuance Under ESPP | The following table includes a summary of shares available for issuance under our 2018 ESPP during the year ended January 31, 2019: Shares Available for Issuance 2018 ESPP Balance at January 31, 2018 — Authorized 2,040,000 Granted (320,218 ) Forfeited — Balance at January 31, 2019 1,719,782 |
Schedule of Fair Value Assumptions, Stock Options | The fair value of employee stock options and ESPP purchase rights was estimated using a Black-Scholes option pricing model with the following assumptions: Year Ended January 31, 2019 2018 2017 Employee Stock Options Risk-free interest rate 2.7%-2.9% 1.8%-2.6% 1.4%-2.3% Expected volatility 40.2%-40.8% 41.7%-46.0% 49.0 % Expected term (in years) 6.25 6.25 6.25 Expected dividend yield — % — % — % Employee Stock Purchase Plan Risk-free interest rate 2.0%-2.4% N/A N/A Expected volatility 38.3%-42.2% N/A N/A Expected term (in years) 0.33-0.49 N/A N/A Expected dividend yield — % N/A N/A |
Schedule of Fair Value Assumptions, ESPP | The fair value of employee stock options and ESPP purchase rights was estimated using a Black-Scholes option pricing model with the following assumptions: Year Ended January 31, 2019 2018 2017 Employee Stock Options Risk-free interest rate 2.7%-2.9% 1.8%-2.6% 1.4%-2.3% Expected volatility 40.2%-40.8% 41.7%-46.0% 49.0 % Expected term (in years) 6.25 6.25 6.25 Expected dividend yield — % — % — % Employee Stock Purchase Plan Risk-free interest rate 2.0%-2.4% N/A N/A Expected volatility 38.3%-42.2% N/A N/A Expected term (in years) 0.33-0.49 N/A N/A Expected dividend yield — % N/A N/A |
Schedule of Share-based Compensation Expense | Share-based compensation expense included in the consolidated statements of operations was as follows (in thousands): Year Ended January 31, 2019 2018 2017 Cost of subscription revenue $ 346 $ 96 $ 35 Cost of professional services revenue 466 67 26 Research and development 5,873 6,029 452 Sales and marketing 5,163 1,707 428 General and administrative 4,055 10,565 193 Total share-based compensation $ 15,903 $ 18,464 $ 1,134 Share-based compensation expense related to the 2017 Tender Offer, which is included in the table above, was as follows (in thousands): Year Ended January 31, 2019 2018 2017 Cost of subscription revenue $ — $ 53 $ — Cost of professional services revenue — 9 — Research and development — 5,124 — Sales and marketing — 583 — General and administrative — 9,701 — Total share-based compensation expense $ — $ 15,470 $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | U.S. and international components of loss before provision for income taxes were as follows (in thousands): Year Ended January 31, 2019 2018 2017 United States $ (53,939 ) $ (49,303 ) $ (15,184 ) Foreign 347 (110 ) — Loss before income taxes $ (53,592 ) $ (49,413 ) $ (15,184 ) The expense (benefit) for income taxes consisted of (in thousands): Year Ended January 31, 2019 2018 2017 Current: Federal $ — $ — $ — State 34 40 — Foreign 69 — — $ 103 $ 40 $ — Deferred and other: Federal $ 203 $ (302 ) $ — State — (45 ) — Foreign (13 ) — — $ 190 $ (347 ) $ — Total tax expense (benefit) $ 293 $ (307 ) $ — |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation of federal statutory income tax to the Company’s provision for income taxes is as follows (in thousands): Year Ended January 31, 2019 2018 2017 Expected provision at statutory federal rate $ (11,254 ) $ (16,267 ) $ (5,163 ) Tax credits (2,408 ) (1,327 ) (896 ) Change in valuation allowance 17,487 1,528 5,694 Share-based compensation (4,631 ) 4,430 273 Impact of tax reform — 11,125 — Other 1,099 204 92 Total income tax provision (benefit) $ 293 $ (307 ) $ — |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The tax effects of temporary differences and related deferred tax assets and liabilities as of January 31, 2019 and 2018 were as follows (in thousands): January 31, 2019 2018 Deferred tax assets: Deferred revenue $ 23,146 $ 13,848 Net operating loss carryforwards 18,972 9,994 Tax credits 6,340 3,873 Accrued compensation 1,963 39 Other 2,725 825 Total deferred tax assets 53,146 28,579 Valuation allowance (45,761 ) (24,406 ) Total deferred tax assets, net 7,385 4,173 Deferred tax liabilities: Capitalized commissions (6,955 ) (3,697 ) Fixed assets — (149 ) Intangibles (398 ) (327 ) Total deferred tax liabilities (7,353 ) (4,173 ) Net deferred tax assets $ 32 $ — |
Reconciliation of Amounts of Unrecognized Tax Benefits | The following is a tabular reconciliation of the total amounts of unrecognized tax benefits: Year Ended January 31, 2019 2018 2017 Balance, beginning of the year $ 683 $ — $ — Increases to tax positions taken during the current year 808 360 — Increases to tax positions taken in prior years — 323 — Decreases to tax positions taken in prior years (75 ) — — Balance, end of year $ 1,416 $ 683 $ — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | As of January 31, 2019 , future minimum annual lease payments (in thousands) related to the lease agreements mentioned above were as follows: Operating Leases Capital Leases Total Fiscal 2020 10,255 3,970 14,225 Fiscal 2021 11,121 1,776 12,897 Fiscal 2022 11,293 463 11,756 Fiscal 2023 11,536 11,536 Fiscal 2024 11,812 11,812 Thereafter 23,064 23,064 Total minimum lease payments $ 79,081 $ 6,209 $ 85,290 Less: amount representing interest 277 Present value of capital lease obligations $ 5,932 |
Schedule of Future Minimum Lease Payments for Capital Leases | As of January 31, 2019 , future minimum annual lease payments (in thousands) related to the lease agreements mentioned above were as follows: Operating Leases Capital Leases Total Fiscal 2020 10,255 3,970 14,225 Fiscal 2021 11,121 1,776 12,897 Fiscal 2022 11,293 463 11,756 Fiscal 2023 11,536 11,536 Fiscal 2024 11,812 11,812 Thereafter 23,064 23,064 Total minimum lease payments $ 79,081 $ 6,209 $ 85,290 Less: amount representing interest 277 Present value of capital lease obligations $ 5,932 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Geographical Area | Revenue by geographic location is determined by the location of the Company’s customers. The following table sets forth revenue (in thousands) by geographic area: Year Ended January 31, 2019 2018 2017 United States $ 135,761 $ 81,480 $ 47,110 EMEA 21,087 14,654 9,874 Asia Pacific 11,863 9,181 5,940 Americas other than the United States 9,011 5,938 4,040 Total $ 177,722 $ 111,253 $ 66,964 |
Overview and Basis of Present_2
Overview and Basis of Presentation (Details) $ / shares in Units, $ in Thousands | May 01, 2018USD ($)$ / sharesshares | Jan. 31, 2019USD ($)shares | Jan. 31, 2018USD ($)shares | Jan. 31, 2017USD ($) | Apr. 30, 2018shares |
Class of Stock [Line Items] | |||||
Proceeds from initial public offering, net of underwriters' discounts and commissions | $ | $ 163,844 | $ 0 | $ 0 | ||
Common stock authorized (in shares) | 0 | 107,679,381 | |||
Preferred stock authorized (in shares) | 10,000,000 | 10,000,000 | 0 | ||
Duration from date of IPO | 7 years | ||||
Percent of stock outstanding (less than) | 15.00% | ||||
Accumulated deficit | $ | $ 160,518 | $ 106,633 | |||
Common Class A | |||||
Class of Stock [Line Items] | |||||
Common stock authorized (in shares) | 500,000,000 | 500,000,000 | 0 | 112,979,381 | |
Votes per share (in votes) | 1 | ||||
Number of shares from automatic conversion (in shares) | 1 | ||||
Common Class B | |||||
Class of Stock [Line Items] | |||||
Number of shares issued in conversion (in shares) | 68,500,000 | ||||
Common stock authorized (in shares) | 500,000,000 | 0 | 112,979,381,000 | ||
Votes per share (in votes) | 10 | ||||
IPO | Common Class A | |||||
Class of Stock [Line Items] | |||||
Shares issued and sold (in shares) | 11,745,088 | ||||
Offering price (in dollars per share) | $ / shares | $ 15 | ||||
Proceeds from initial public offering, net of underwriters' discounts and commissions | $ | $ 160,400 | ||||
Underwriting discounts and commissions | $ | 12,300 | ||||
Other issuance costs | $ | $ 3,400 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedule of Provision for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance at January 31, 2016 | $ 457 | $ 104 | $ 24 |
Additions | 1,626 | 353 | 80 |
Write-offs | (849) | ||
Balance at January 31, 2017 | $ 1,234 | $ 457 | $ 104 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Narrative (Details) | 12 Months Ended | |||
Jan. 31, 2019USD ($)segment | Jan. 31, 2018USD ($) | Jan. 31, 2017USD ($) | May 01, 2018USD ($) | |
Lessee, Lease, Description [Line Items] | ||||
Number of operating segments | segment | 1 | |||
Interest income | $ 3,300,000 | $ 500,000 | $ 400,000 | |
Internal use software costs capitalized | 3,500,000 | 3,400,000 | ||
Costs incurred during development for platform to sell subscriptions | 1,500,000 | 0 | ||
Amortization expense of capitalized internal-use software costs | 1,000,000 | 200,000 | 0 | |
Deferred rent | 2,000,000 | 600,000 | ||
Net self insurance reserve estimate | 800,000 | 600,000 | ||
Advertising and marketing expenses | 20,600,000 | 14,800,000 | 10,500,000 | |
Deferred offering costs capitalized | $ 3,400,000 | |||
Investing activity increase | (13,784,000) | (809,000) | 9,641,000 | |
Bellevue, Boston, London and Edinburgh Leases | ||||
Lessee, Lease, Description [Line Items] | ||||
Security deposits | 800,000 | |||
Bellevue and Boston Leases | ||||
Lessee, Lease, Description [Line Items] | ||||
Security deposits | 500,000 | |||
Boston Lease | ||||
Lessee, Lease, Description [Line Items] | ||||
Security deposits | 300,000 | |||
Financial Standby Letter of Credit | Bellevue Lease | ||||
Lessee, Lease, Description [Line Items] | ||||
Irrevocable letters of credit | $ 1,800,000 | |||
Financial Standby Letter of Credit | Bellevue and Boston Leases | ||||
Lessee, Lease, Description [Line Items] | ||||
Irrevocable letters of credit | 2,400,000 | 1,600,000 | ||
Accounting Standards Update 2016-18 | ||||
Lessee, Lease, Description [Line Items] | ||||
Investing activity increase | $ 1,000,000 | $ 600,000 | ||
Software | ||||
Lessee, Lease, Description [Line Items] | ||||
Software useful life | 3 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 213,085 | $ 58,158 | $ 22,086 | |
Restricted cash | 2,620 | 2,901 | 1,927 | |
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows | $ 215,705 | $ 61,059 | $ 24,013 | $ 13,687 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Useful Lives (Details) | 12 Months Ended |
Jan. 31, 2019 | |
Computer equipment | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 3 years |
Computer software | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 3 years |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 5 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 7 years |
Revenue from Contracts with C_2
Revenue from Contracts with Customers - Deferred Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Revenue from External Customer [Line Items] | |||
Deferred revenue | $ 101.3 | ||
Subscription | |||
Revenue from External Customer [Line Items] | |||
Revenue recognized included in deferred revenue | 55.3 | $ 32 | $ 19.2 |
Deferred revenue | 99 | ||
Professional services | |||
Revenue from External Customer [Line Items] | |||
Revenue recognized included in deferred revenue | 1.5 | $ 0.6 | $ 0.3 |
Deferred revenue | $ 2.3 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Revenue Recognition (Details) $ in Millions | Jan. 31, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue future recognition | $ 101.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-02-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percentage of revenue related to remaining performance obligations | 97.00% |
Deferred Commissions (Details)
Deferred Commissions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Revenue Recognition and Deferred Revenue [Abstract] | |||
Deferred commissions | $ 29,014 | $ 15,291 | |
Amortization of deferred commissions | $ 10,770 | $ 4,989 | $ 2,076 |
Deferred commissions amortized period | 3 years |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Numerator: | |||
Net loss attributable to common shareholders | $ (53,885) | $ (53,664) | $ (15,184) |
Denominator: | |||
Weighted-average common shares outstanding (in shares) | 83,141 | 18,273 | 15,241 |
Net loss per share, basic and diluted (in dollars per share) | $ (0.65) | $ (2.94) | $ (1) |
Net Loss Per Share - Schedule_2
Net Loss Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total potentially dilutive shares | 13,431 | 81,972 | 75,334 |
Total all series | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total potentially dilutive shares | 0 | 68,480 | 62,145 |
Shares subject to outstanding common stock awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total potentially dilutive shares | 13,297 | 13,355 | 13,052 |
Shares issuable pursuant to the Employee Stock Purchase Plan | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total potentially dilutive shares | 134 | 0 | 0 |
Total all series | Convertible preferred stock warrant | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total potentially dilutive shares | 0 | 137 | 137 |
Investments (Details)
Investments (Details) - USD ($) | Jan. 31, 2019 | Jan. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | $ 0 | $ 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Jan. 31, 2019 | Jan. 31, 2018 |
Liabilities: | ||
Convertible preferred stock warrant liability | $ 1,300 | |
Fair Value, Measurements, Recurring | ||
Cash equivalents: | ||
Total assets | $ 205,521 | |
Liabilities: | ||
Convertible preferred stock warrant liability | 1,272 | |
Fair Value, Measurements, Recurring | Level 1 | ||
Cash equivalents: | ||
Total assets | 203,746 | |
Fair Value, Measurements, Recurring | Level 2 | ||
Cash equivalents: | ||
Total assets | 1,775 | |
Fair Value, Measurements, Recurring | Level 3 | ||
Cash equivalents: | ||
Total assets | 0 | |
Money market funds | Fair Value, Measurements, Recurring | ||
Cash equivalents: | ||
Cash equivalents and restricted cash | 203,746 | 55,702 |
Money market funds | Fair Value, Measurements, Recurring | Level 1 | ||
Cash equivalents: | ||
Cash equivalents and restricted cash | 203,746 | 55,702 |
Money market funds | Fair Value, Measurements, Recurring | Level 2 | ||
Cash equivalents: | ||
Cash equivalents and restricted cash | 0 | |
Money market funds | Fair Value, Measurements, Recurring | Level 3 | ||
Cash equivalents: | ||
Cash equivalents and restricted cash | 0 | |
Certificates of deposit | Fair Value, Measurements, Recurring | ||
Cash equivalents: | ||
Cash equivalents and restricted cash | 1,775 | |
Certificates of deposit | Fair Value, Measurements, Recurring | Level 1 | ||
Cash equivalents: | ||
Cash equivalents and restricted cash | ||
Certificates of deposit | Fair Value, Measurements, Recurring | Level 2 | ||
Cash equivalents: | ||
Cash equivalents and restricted cash | 1,775 | |
Certificates of deposit | Fair Value, Measurements, Recurring | Level 3 | ||
Cash equivalents: | ||
Cash equivalents and restricted cash | ||
Warrants Not Settleable in Cash | Fair Value, Measurements, Recurring | Level 1 | ||
Liabilities: | ||
Convertible preferred stock warrant liability | 0 | |
Warrants Not Settleable in Cash | Fair Value, Measurements, Recurring | Level 2 | ||
Liabilities: | ||
Convertible preferred stock warrant liability | 0 | |
Warrants Not Settleable in Cash | Fair Value, Measurements, Recurring | Level 3 | ||
Liabilities: | ||
Convertible preferred stock warrant liability | $ 1,272 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) $ in Millions | Apr. 30, 2018USD ($) |
Fair Value Disclosures [Abstract] | |
Transfer out of level 3 to level 2 liabilities | $ 2.6 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands | Apr. 30, 2018 | Jan. 31, 2019 | Jan. 31, 2018 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Transfer out of Level 3 | $ (2,600) | ||
Level 3 | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value beginning balance | $ 1,272 | $ 477 | |
Increase in fair value of convertible preferred stock warrant liability | 1,326 | 795 | |
Transfer out of Level 3 | (2,598) | ||
Fair value ending balance | $ 0 | $ 1,272 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | $ 34,062 | $ 22,410 | |
Less: accumulated depreciation | (11,522) | (5,173) | |
Total property and equipment, net | 22,540 | 17,237 | |
Depreciation expense | 7,194 | 4,019 | $ 978 |
Capital leases | 11,800 | 9,200 | |
Accumulated depreciation on capital leases | 6,100 | 2,400 | |
Depreciation expense on capital leases | 3,600 | 2,200 | $ 200 |
Computer equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 17,536 | 12,539 | |
Computer software, purchased and developed | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 6,958 | 3,415 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 5,410 | 3,797 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | $ 4,158 | $ 2,659 |
Goodwill and Net Intangible A_3
Goodwill and Net Intangible Assets - Narrative (Details) - USD ($) | Jan. 11, 2019 | Dec. 28, 2017 | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 5,496,000 | $ 445,000 | $ 0 | ||
Amortization expense | 510,000 | 57,000 | 11,000 | ||
Goodwill, measurement period adjustment | 116,000 | ||||
Goodwill impairments | $ 0 | $ 0 | $ 0 | ||
TernPro, Inc. | |||||
Business Acquisition [Line Items] | |||||
Percent of stock acquired | 100.00% | ||||
Total purchase price | $ 6,000,000 | ||||
Goodwill | 5,200,000 | ||||
Identifiable intangible assets | 800,000 | ||||
Other net assets | 100,000 | ||||
Long-term liability, related to holdback | $ 1,000,000 | ||||
Finite-lived intangible assets, useful life | 3 years | ||||
Converse.AI, Inc. | |||||
Business Acquisition [Line Items] | |||||
Percent of stock acquired | 100.00% | ||||
Goodwill | $ 300,000 | ||||
Identifiable intangible assets | 1,400,000 | ||||
Goodwill, measurement period adjustment | $ 100,000 | ||||
Acquired software technology | TernPro, Inc. | |||||
Business Acquisition [Line Items] | |||||
Identifiable intangible assets | $ 500,000 | ||||
Acquired customer relationships | TernPro, Inc. | |||||
Business Acquisition [Line Items] | |||||
Identifiable intangible assets | $ 300,000 |
Goodwill and Net Intangible A_4
Goodwill and Net Intangible Assets - Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Goodwill [Roll Forward] | ||
Goodwill beginning balance | $ 445 | $ 0 |
Additions | 5,167 | 445 |
Measurement period adjustments related to Converse.AI acquisition | (116) | |
Goodwill ending balance | $ 5,496 | $ 445 |
Goodwill and Net Intangible A_5
Goodwill and Net Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Jan. 31, 2019 | Jan. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 2,409 | $ 1,619 |
Less: accumulated amortization | (582) | (72) |
Total intangible assets, net | 1,827 | 1,547 |
Acquired software technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 1,866 | 1,366 |
Acquired customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 360 | 70 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 170 | 170 |
Domain name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 13 | $ 13 |
Goodwill and Net Intangible A_6
Goodwill and Net Intangible Assets - Estimated Remaining Amortization Expense (Details) $ in Thousands | Jan. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 770 |
2021 | 722 |
2022 | 279 |
2023 | 9 |
2024 | 8 |
Thereafter | 26 |
Total intangible assets, net | $ 1,814 |
Convertible Preferred Stock (De
Convertible Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Apr. 30, 2018 | Jan. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2017 | Jan. 31, 2016 | |
Class of Stock [Line Items] | |||||
Shares Authorized (in shares) | 67,756,647 | 0 | |||
Shares Issued (in shares) | 67,619,377 | 0 | |||
Aggregate Liquidation Preference | $ 113,217 | ||||
Carrying Value | $ 112,687 | $ 0 | |||
Convertible preferred stock outstanding (in shares) | 67,619,377 | 0 | 61,284,703 | 61,284,703 | |
Total all series | |||||
Class of Stock [Line Items] | |||||
Shares Authorized (in shares) | 67,756,647 | ||||
Shares Issued (in shares) | 67,619,377 | ||||
Aggregate Liquidation Preference | $ 113,217 | ||||
Carrying Value | $ 112,687 | ||||
Convertible preferred stock outstanding (in shares) | 67,619,377 | 0 | |||
Total Series A | |||||
Class of Stock [Line Items] | |||||
Shares Authorized (in shares) | 21,184,270 | ||||
Shares Issued (in shares) | 21,184,270 | ||||
Aggregate Liquidation Preference | $ 4,367 | ||||
Carrying Value | $ 4,361 | ||||
Convertible preferred stock outstanding (in shares) | 21,184,270 | ||||
A | |||||
Class of Stock [Line Items] | |||||
Shares Authorized (in shares) | 6,075,000 | ||||
Shares Issued (in shares) | 6,075,000 | ||||
Aggregate Liquidation Preference | $ 486 | ||||
Carrying Value | $ 480 | ||||
Liquidation Preference Prices per Share (in dollars per share) | $ 0.0800 | ||||
Conversion Price per Share (in dollars per share) | 0.0800 | ||||
Annual Dividend per Share (if declared) (in dollars per share) | 0.0064 | ||||
Liquidation Participation Cap per Share (in dollars per share) | $ 0.16 | ||||
Convertible preferred stock outstanding (in shares) | 6,075,000 | ||||
A-1 | |||||
Class of Stock [Line Items] | |||||
Shares Authorized (in shares) | 500,000 | ||||
Shares Issued (in shares) | 500,000 | ||||
Aggregate Liquidation Preference | $ 80 | ||||
Carrying Value | $ 80 | ||||
Liquidation Preference Prices per Share (in dollars per share) | $ 0.1600 | ||||
Conversion Price per Share (in dollars per share) | 0.1600 | ||||
Annual Dividend per Share (if declared) (in dollars per share) | 0.0128 | ||||
Liquidation Participation Cap per Share (in dollars per share) | $ 0.32 | ||||
Convertible preferred stock outstanding (in shares) | 500,000 | ||||
A-2 | |||||
Class of Stock [Line Items] | |||||
Shares Authorized (in shares) | 2,750,000 | ||||
Shares Issued (in shares) | 2,750,000 | ||||
Aggregate Liquidation Preference | $ 550 | ||||
Carrying Value | $ 550 | ||||
Liquidation Preference Prices per Share (in dollars per share) | $ 0.2000 | ||||
Conversion Price per Share (in dollars per share) | 0.195434 | ||||
Annual Dividend per Share (if declared) (in dollars per share) | 0.0160 | ||||
Liquidation Participation Cap per Share (in dollars per share) | $ 0.40 | ||||
Convertible preferred stock outstanding (in shares) | 2,750,000 | ||||
A-3 | |||||
Class of Stock [Line Items] | |||||
Shares Authorized (in shares) | 2,000,000 | ||||
Shares Issued (in shares) | 2,000,000 | ||||
Aggregate Liquidation Preference | $ 500 | ||||
Carrying Value | $ 500 | ||||
Liquidation Preference Prices per Share (in dollars per share) | $ 0.2500 | ||||
Conversion Price per Share (in dollars per share) | 0.23685 | ||||
Annual Dividend per Share (if declared) (in dollars per share) | 0.0200 | ||||
Liquidation Participation Cap per Share (in dollars per share) | $ 0.50 | ||||
Convertible preferred stock outstanding (in shares) | 2,000,000 | ||||
A-4 | |||||
Class of Stock [Line Items] | |||||
Shares Authorized (in shares) | 9,859,270 | ||||
Shares Issued (in shares) | 9,859,270 | ||||
Aggregate Liquidation Preference | $ 2,751 | ||||
Carrying Value | $ 2,751 | ||||
Liquidation Preference Prices per Share (in dollars per share) | $ 0.2790 | ||||
Conversion Price per Share (in dollars per share) | 0.260872 | ||||
Annual Dividend per Share (if declared) (in dollars per share) | 0.0224 | ||||
Liquidation Participation Cap per Share (in dollars per share) | $ 0.558 | ||||
Convertible preferred stock outstanding (in shares) | 9,859,270 | ||||
B | |||||
Class of Stock [Line Items] | |||||
Shares Authorized (in shares) | 7,208,430 | ||||
Shares Issued (in shares) | 7,208,430 | ||||
Aggregate Liquidation Preference | $ 1,250 | ||||
Carrying Value | $ 1,218 | ||||
Liquidation Preference Prices per Share (in dollars per share) | $ 0.173408 | ||||
Conversion Price per Share (in dollars per share) | 0.173408 | ||||
Annual Dividend per Share (if declared) (in dollars per share) | 0.0138 | ||||
Liquidation Participation Cap per Share (in dollars per share) | $ 0.346816 | ||||
Convertible preferred stock outstanding (in shares) | 7,208,430 | ||||
Total Series C | |||||
Class of Stock [Line Items] | |||||
Shares Authorized (in shares) | 6,816,570 | ||||
Shares Issued (in shares) | 6,679,300 | ||||
Aggregate Liquidation Preference | $ 2,500 | ||||
Carrying Value | $ 2,453 | ||||
Convertible preferred stock outstanding (in shares) | 6,679,300 | ||||
C | |||||
Class of Stock [Line Items] | |||||
Shares Authorized (in shares) | 5,284,990 | ||||
Shares Issued (in shares) | 5,147,720 | ||||
Aggregate Liquidation Preference | $ 1,500 | ||||
Carrying Value | $ 1,476 | ||||
Liquidation Preference Prices per Share (in dollars per share) | $ 0.29139 | ||||
Conversion Price per Share (in dollars per share) | 0.29139 | ||||
Annual Dividend per Share (if declared) (in dollars per share) | 0.0234 | ||||
Liquidation Participation Cap per Share (in dollars per share) | $ 0.58278 | ||||
Convertible preferred stock outstanding (in shares) | 5,147,720 | ||||
C-1 | |||||
Class of Stock [Line Items] | |||||
Shares Authorized (in shares) | 1,531,580 | ||||
Shares Issued (in shares) | 1,531,580 | ||||
Aggregate Liquidation Preference | $ 1,000 | ||||
Carrying Value | $ 977 | ||||
Liquidation Preference Prices per Share (in dollars per share) | $ 0.65292 | ||||
Conversion Price per Share (in dollars per share) | 0.65292 | ||||
Annual Dividend per Share (if declared) (in dollars per share) | 0.0522 | ||||
Liquidation Participation Cap per Share (in dollars per share) | $ 1.30584 | ||||
Convertible preferred stock outstanding (in shares) | 1,531,580 | ||||
D | |||||
Class of Stock [Line Items] | |||||
Shares Authorized (in shares) | 14,780,400 | ||||
Shares Issued (in shares) | 14,780,400 | ||||
Aggregate Liquidation Preference | $ 17,500 | ||||
Carrying Value | $ 17,342 | ||||
Liquidation Preference Prices per Share (in dollars per share) | $ 1.1840 | ||||
Conversion Price per Share (in dollars per share) | 1.184 | ||||
Annual Dividend per Share (if declared) (in dollars per share) | $ 0.0948 | ||||
Convertible preferred stock outstanding (in shares) | 14,780,400 | ||||
E | |||||
Class of Stock [Line Items] | |||||
Shares Authorized (in shares) | 11,432,303 | ||||
Shares Issued (in shares) | 11,432,303 | ||||
Aggregate Liquidation Preference | $ 35,000 | ||||
Carrying Value | $ 34,886 | ||||
Liquidation Preference Prices per Share (in dollars per share) | $ 3.0615 | ||||
Conversion Price per Share (in dollars per share) | 3.0615 | ||||
Annual Dividend per Share (if declared) (in dollars per share) | $ 0.2449 | ||||
Convertible preferred stock outstanding (in shares) | 11,432,303 | ||||
F | |||||
Class of Stock [Line Items] | |||||
Shares Authorized (in shares) | 6,334,674 | ||||
Shares Issued (in shares) | 6,334,674 | ||||
Aggregate Liquidation Preference | $ 52,600 | ||||
Carrying Value | $ 52,427 | ||||
Liquidation Preference Prices per Share (in dollars per share) | $ 8.3035 | ||||
Conversion Price per Share (in dollars per share) | 8.3035 | ||||
Annual Dividend per Share (if declared) (in dollars per share) | $ 0.66428 | ||||
Convertible preferred stock outstanding (in shares) | 6,334,674 | ||||
Common Class B | |||||
Class of Stock [Line Items] | |||||
Shares converted (in shares) | 68,500,000 |
Convertible Preferred Stock W_2
Convertible Preferred Stock Warrant (Details) - USD ($) $ / shares in Units, $ in Millions | May 01, 2018 | Apr. 30, 2018 | Dec. 31, 2011 | Jan. 31, 2019 | Jan. 31, 2018 |
Class of Stock [Line Items] | |||||
Shares purchased with warrant (in shares) | 137,270 | ||||
Warrant term | 10 years | ||||
Exercise price (in dollars per share) | $ 0.29139 | ||||
Warrant fair value | $ 1.3 | ||||
Warrant fair value after remeasurement | $ 2.6 | ||||
Interest income from charge on warrant remeasurement | $ 1.3 | ||||
Shares surrendered (in shares) | 2,667 | ||||
Convertible preferred stock warrants outstanding (in shares) | 0 | ||||
Series C | |||||
Class of Stock [Line Items] | |||||
Shares offered (in shares) | 134,603 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2019USD ($)purchase_period$ / sharesshares | Jan. 31, 2018USD ($)$ / sharesshares | Jan. 31, 2017USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation | $ 15,903 | $ 18,464 | $ 1,134 |
Deemed dividend | 0 | $ (4,558) | $ 0 |
Unrecognized share based compensation expense | $ 39,600 | ||
Unrecognized share based compensation expense, period for recognition | 3 years 1 month 6 days | ||
2015 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for issuance (in shares) | shares | 0 | 296,178 | |
2018 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for issuance (in shares) | shares | 8,458,343 | 0 | |
2018 Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Offering period | 6 months | ||
Number of purchase periods | purchase_period | 1 | ||
Purchase period | 6 months | ||
Purchase price percent | 85.00% | ||
Share-based compensation | $ 3,400 | ||
2018 Employee Stock Purchase Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payroll deduction percent of base cash compensation | 15.00% | ||
Common Class A | 2018 Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period in which shares authorized increase | 10 years | ||
Common Class A | 2018 Employee Stock Purchase Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of shares authorized (in shares) | shares | 20,400,000 | ||
Common Class A and B | 2018 Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percent of shares outstanding | 1.00% | ||
Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Expiration period | 10 years | ||
Weighted average grant date fair value, stock options (in dollars per share) | $ / shares | $ 4.66 | $ 2.36 | $ 1.28 |
Intrinsic value of options exercised | $ 66,700 | $ 17,800 | $ 3,100 |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Expiration period | 10 years | ||
Weighted-average grant date fair value, RSU (in dollars per share) | $ / shares | $ 26.12 | $ 9.45 | |
2017 Tender Offer | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued and sold (in shares) | shares | 6,477,843 | ||
Total purchase price | $ 55,000 | ||
Share-based compensation | $ 0 | 15,470 | $ 0 |
Deemed dividend | $ 4,600 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Options (Details) - Stock Option - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Options Outstanding | ||
Outstanding beginning balance (in shares) | 13,355,439 | |
Granted (in shares) | 4,216,470 | |
Exercised (in shares) | (3,993,836) | |
Forfeited or canceled (in shares) | (1,126,334) | |
Outstanding ending balance (in shares) | 12,451,739 | 13,355,439 |
Exercisable (in shares) | 4,826,895 | |
Vested and expected to vest (in shares) | 11,424,048 | |
Weighted-Average Exercise Price | ||
Outstanding beginning balance (in dollars per share) | $ 2.91 | |
Granted (in dollars per share) | 10.72 | |
Exercised (in dollars per share) | 1.54 | |
Forfeited or canceled (in dollars per share) | 5.90 | |
Outstanding ending balance (in dollars per share) | 5.72 | $ 2.91 |
Exercisable (in dollars per share) | 3.02 | |
Vested and expected to vest (in dollars per share) | $ 5.52 | |
Weighted average remaining contractual term, outstanding (in years) | 8 years 15 days | 7 years 10 months 24 days |
Weighted average remaining contractual term, exercisable (in years) | 7 years 1 month 13 days | |
Weighted average remaining contractual term, vested and expected to vest (in years) | 7 years 11 months 23 days | |
Aggregate intrinsic value, outstanding | $ 319,519 | $ 88,468 |
Aggregate intrinsic value, exercisable | 136,883 | |
Aggregate intrinsic value, vested and expected to vest | $ 295,432 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Units (Details) - RSUs - $ / shares | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Number of Shares Underlying Outstanding RSUs | ||
Outstanding beginning balance (in shares) | 130,000 | |
Granted (in shares) | 774,191 | |
Vested (in shares) | (32,500) | |
Forfeited or canceled (in shares) | (26,492) | |
Outstanding ending balance (in shares) | 845,199 | 130,000 |
Weighted-Average Grant-Date Fair Value per RSU | ||
Outstanding beginning balance (in dollars per share) | $ 9.45 | |
Granted (in dollars per share) | 26.12 | $ 9.45 |
Vested (in dollars per share) | 9.45 | |
Forfeited or canceled (in dollars per share) | 26.94 | |
Outstanding ending balance (in dollars per share) | $ 24.17 | $ 9.45 |
Share-Based Compensation - Empl
Share-Based Compensation - Employee Stock Purchase Plan (Details) - Shares issuable pursuant to the Employee Stock Purchase Plan shares in Thousands | 12 Months Ended |
Jan. 31, 2019shares | |
Shares Available for Issuance Under ESPP | |
Balance at January 31, 2018 | 0 |
Authorized (in shares) | 2,040,000 |
Granted (in shares) | (320,218) |
Forfeited (in shares) | 0 |
Balance at January 31, 2019 | 1,719,782 |
Share-Based Compensation - Valu
Share-Based Compensation - Valuation Assumptions (Details) | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 49.00% | ||
Expected term (in years) | 6 years 3 months | 6 years 3 months | 6 years 3 months |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Stock Option | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.70% | 1.80% | 1.40% |
Expected volatility | 40.20% | 41.70% | |
Stock Option | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.90% | 2.60% | 2.30% |
Expected volatility | 40.80% | 46.00% | |
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | ||
Employee Stock Purchase Plan | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.00% | ||
Expected volatility | 38.30% | ||
Expected term (in years) | 3 months 29 days | ||
Employee Stock Purchase Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.40% | ||
Expected volatility | 42.20% | ||
Expected term (in years) | 5 months 27 days |
Share-Based Compensation - Shar
Share-Based Compensation - Share-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation | $ 15,903 | $ 18,464 | $ 1,134 |
Cost of subscription revenue | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation | 346 | 96 | 35 |
Cost of professional services revenue | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation | 466 | 67 | 26 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation | 5,873 | 6,029 | 452 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation | 5,163 | 1,707 | 428 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation | 4,055 | 10,565 | 193 |
2017 Tender Offer | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation | 0 | 15,470 | 0 |
2017 Tender Offer | Cost of subscription revenue | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation | 0 | 53 | 0 |
2017 Tender Offer | Cost of professional services revenue | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation | 0 | 9 | 0 |
2017 Tender Offer | Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation | 0 | 5,124 | 0 |
2017 Tender Offer | Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation | 0 | 583 | 0 |
2017 Tender Offer | General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation | $ 0 | $ 9,701 | $ 0 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Blended tax rate | 32.90% | |||
Tax Cuts and Jobs Act, reduction to deferred tax assets | $ 11,100 | |||
Federal tax net operating loss carryforward | $ 82,300 | 43,300 | ||
Tax credit carryforward for income tax purposes | 6,300 | 3,900 | ||
Increase in valuation allowance | 21,400 | |||
Unrecognized tax benefits | 1,416 | 683 | $ 0 | $ 0 |
Unrecognized tax benefits that would impact effective tax rate | $ 1,400 | $ 700 |
Income Taxes - Loss Before Prov
Income Taxes - Loss Before Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (53,939) | $ (49,303) | $ (15,184) |
Foreign | 347 | (110) | 0 |
Loss before income taxes | $ (53,592) | $ (49,413) | $ (15,184) |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense (Benefit) (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Current: | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 34,000 | 40,000 | 0 |
Foreign | 69,000 | 0 | 0 |
Current income tax expense (benefit) | 103,000 | 40,000 | 0 |
Deferred and other: | |||
Federal | 203,000 | (302,000) | 0 |
State | 0 | (45,000) | 0 |
Foreign | (13,000) | 0 | 0 |
Deferred income tax expense (benefit) | 190,000 | (347,000) | 0 |
Total income tax provision (benefit) | $ 293,000 | $ (307,000) | $ 0 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Reconciliation (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Expected provision at statutory federal rate | $ (11,254,000) | $ (16,267,000) | $ (5,163,000) |
Tax credits | (2,408,000) | (1,327,000) | (896,000) |
Change in valuation allowance | 17,487,000 | 1,528,000 | 5,694,000 |
Share-based compensation | (4,631,000) | 4,430,000 | 273,000 |
Impact of tax reform | 0 | 11,125,000 | 0 |
Other | 1,099,000 | 204,000 | 92,000 |
Total income tax provision (benefit) | $ 293,000 | $ (307,000) | $ 0 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2019 | Jan. 31, 2018 |
Deferred tax assets: | ||
Deferred revenue | $ 23,146 | $ 13,848 |
Net operating loss carryforwards | 18,972 | 9,994 |
Tax credits | 6,340 | 3,873 |
Accrued compensation | 1,963 | 39 |
Other | 2,725 | 825 |
Total deferred tax assets | 53,146 | 28,579 |
Valuation allowance | (45,761) | (24,406) |
Total deferred tax assets, net | 7,385 | 4,173 |
Deferred tax liabilities: | ||
Capitalized commissions | (6,955) | (3,697) |
Fixed assets | (149) | |
Intangibles | (398) | (327) |
Total deferred tax liabilities | (7,353) | (4,173) |
Net deferred tax assets | $ 32 | $ 0 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, beginning of the year | $ 683 | $ 0 | $ 0 |
Increases to tax positions taken during the current year | 808 | 360 | 0 |
Increases to tax positions taken in prior years | 0 | 323 | 0 |
Decreases to tax positions taken in prior years | (75) | 0 | 0 |
Balance, end of year | $ 1,416 | $ 683 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2019USD ($)capital_lease | Jan. 31, 2018USD ($)capital_lease | Jan. 31, 2017USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Rent expense and related expenses | $ 8,900 | $ 5,000 | $ 2,500 |
Interest expense | 400 | $ 300 | $ 200 |
Lease amount | 6,209 | ||
Commitment with cloud-based hosting service provider | 15,000 | ||
Commitment with cloud-based hosting service provider, due in 2020 | 4,000 | ||
Commitment with cloud-based hosting service provider due in 2021 | $ 5,000 | ||
Data Center Equipment | |||
Lessee, Lease, Description [Line Items] | |||
Lease term | 36 months | 36 months | |
Number of additional leases | capital_lease | 4 | 2 | |
Lease amount | $ 2,600 | $ 3,100 | |
Minimum | Data Center Equipment | |||
Lessee, Lease, Description [Line Items] | |||
Lease term | 36 months | ||
Interest rate | 4.80% | 5.00% | |
Maximum | Data Center Equipment | |||
Lessee, Lease, Description [Line Items] | |||
Lease term | 42 months | ||
Interest rate | 5.50% | 5.10% |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Payments for Operating and Capital Leases (Details) $ in Thousands | Jan. 31, 2019USD ($) |
Operating Leases | |
Fiscal 2020 | $ 10,255 |
Fiscal 2021 | 11,121 |
Fiscal 2022 | 11,293 |
Fiscal 2023 | 11,536 |
Fiscal 2024 | 11,812 |
Thereafter | 23,064 |
Total minimum lease payments | 79,081 |
Capital Leases | |
Fiscal 2020 | 3,970 |
Fiscal 2021 | 1,776 |
Fiscal 2022 | 463 |
Fiscal 2023 | |
Fiscal 2024 | |
Thereafter | |
Total minimum lease payments | 6,209 |
Less: amount representing interest | 277 |
Present value of capital lease obligations | 5,932 |
Total | |
Fiscal 2020 | 14,225 |
Fiscal 2021 | 12,897 |
Fiscal 2022 | 11,756 |
Fiscal 2023 | 11,536 |
Fiscal 2024 | 11,812 |
Thereafter | 23,064 |
Total minimum lease payments | $ 85,290 |
401(k) and Pension Plans (Detai
401(k) and Pension Plans (Details) - USD ($) | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2017 | |
Retirement Benefits [Abstract] | ||
Employer contributions to 401(k) plan | $ 0 | $ 0 |
Geographic Information (Details
Geographic Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 177,722 | $ 111,253 | $ 66,964 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 135,761 | 81,480 | 47,110 |
EMEA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 21,087 | 14,654 | 9,874 |
Asia Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 11,863 | 9,181 | 5,940 |
Americas other than the United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 9,011 | $ 5,938 | $ 4,040 |